Document:

a2017long-termincentivep

  1  LIFEVANTAGE CORPORATION  2017 LONG-TERM INCENTIVE PLAN  (Adopted on December 6, 2016,  Effective on February 16, 2017 and  Amended on November 16, 2017, January 19, 2018,   September 20, 2018, and August 27, 2020)    SECTION 1.  INTRODUCTION  The Board adopted the LifeVantage Corporation 2017 Long-Term Incentive Plan on the Adoption Date conditioned  upon and subject to obtaining Company stockholder approval.  Stockholder approval for the Plan was obtained on February 16,  2017.  The Board amended the Plan on November 16, 2017 and January 19, 2018, pursuant to which 425,000 Shares in the  aggregate were added to the reserve under the Plan, such that the maximum aggregate number of Shares that may be issued under  the Plan (and pursuant to the exercise of Incentive Stock Options) shall be 1,550,000 Shares (the “2017/2018 Amendment”).  The  2017/2018 Amendment was approved by the Company’s stockholders on February 2, 2018.  On September 20, 2018, the Board  further amended the Plan to add 715,000 Shares to the reserve under the Plan and increase the maximum aggregate number of  Shares that may be issued under the Plan (and pursuant to the exercise of Incentive Stock Options) from 1,550,000 Shares to  2,265,000 (the “September 2018 Amendment”).  The September 2018 Amendment was approved by the Company’s stockholders  on November 15, 2018. On August 27, 2020, the Board further amended the Plan to add 650,000 Shares to the reserve under the  Plan to increase the maximum aggregate number of Shares that may be issued under the Plan (and pursuant to the exercise of  Incentive Stock Options) from 2,265,000 to 2,915,000 (the "August 2020 Amendment"). The August 2020 Amendment is  conditioned upon and subject to obtaining Company stockholder approval in accordance with Section 15(a).  The purposes of the Plan are to (i) attract and retain the services of persons eligible to participate in the Plan; (ii)  motivate Selected Employees, by means of appropriate equity and performance based incentives, to achieve long-term  performance goals; (iii) provide equity and performance based incentive compensation opportunities that are competitive with  those of other similar companies; and (iv) further align Participants' interests with those of the Company's other stockholders and  thereby promote the financial interests of the Company and its affiliates and enhancement of stockholder return.  The Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may constitute Incentive  Stock Options or Nonstatutory Stock Options), Stock Appreciation Rights, Restricted Stock Grants, Stock Units and/or Cash  Awards, as well as any other form of equity award consistent with the terms of the Plan.  Capitalized terms shall have the meaning provided in Section 2 unless otherwise provided in this Plan or any related  Award Agreement.  SECTION 2.  DEFINITIONS  (a)           “Adoption Date” means December 6, 2016.  (b)           “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not  less than 50% of such entity. For purposes of determining an individual’s “Service,” this definition shall include any entity other  than a Subsidiary, if the Company, a Parent and/or one or more Subsidiaries own not less than 50% of such entity.  (c)           “Award” means any award, under this Plan, to a Selected Employee of an Option, SAR, Restricted Stock Grant,  Stock Unit or to a Covered Employee of any Cash Award.  (d)           “Award Agreement” means a Stock Option Agreement, a SAR Agreement, a Restricted Stock Grant Agreement,  a Stock Unit Agreement or such other agreement evidencing an Award granted under the Plan.  (e)           “Board” means the Board of Directors of the Company, as constituted from time to time.  

 

  2  (f)            “Cash Award” means an award of a bonus opportunity, under this Plan, to a Covered Employee that (i) is  payable in cash, (ii) is not an Option, SAR, Restricted Stock Grant or Stock Unit, (iii) is paid based on achievement of Performance  Goal(s) and (iv) may be intended to qualify as performance-based compensation under Code Section 162(m).  (g)           “Cashless Exercise” means, to the extent that a Stock Option Agreement so provides and as permitted by  applicable law and in accordance with any procedures established by the Committee, an arrangement whereby payment of some  or all of the aggregate Exercise Price may be made all or in part by delivery of an irrevocable direction to a securities broker to  sell Shares and to deliver all or part of the sale proceeds to the Company. Cashless Exercise may also be utilized to satisfy an  Option's tax withholding obligations as provided in Section 14(b).  (h)           “Cause” means, except as may otherwise be provided in a Participant’s employment agreement or applicable  Award Agreement (and in such case the employment agreement or Award Agreement shall govern as to the definition of Cause),  (i) dishonesty or fraud, (ii) serious willful misconduct, (iii) unauthorized use or disclosure of confidential information or trade  secrets, (iv) conviction or confession of a felony, or (v) any other act or omission by a Participant that, in the opinion of the  Company, could reasonably be expected to adversely affect the Company’s or a Subsidiary’s or an Affiliate’s business, financial  condition, prospects and/or reputation. In each of the foregoing subclauses (i) through (v), whether or not a “Cause” event has  occurred will be determined by the Company’s chief human resources officer or other person performing that function or, in the  case of Participants who are Directors or Officers or Section 16 Persons, the Board, each of whose determination shall be final,  conclusive and binding. A Participant’s Service shall be deemed to have terminated for Cause if, after the Participant’s Service  has terminated, facts and circumstances are discovered that would have justified a termination for Cause, including, without  limitation, violation of material Company policies or breach of confidentiality or other restrictive covenants that may apply to the  Participant.  (i)            “Change in Control” means, except as may otherwise be provided in a Participant’s employment agreement or  applicable Award Agreement (and in such case the employment agreement or Award Agreement shall govern as to the definition  of Change in Control), the occurrence of any one or more of the following: (i) any merger, consolidation or business combination  in which the stockholders of the Company immediately prior to the merger, consolidation or business combination do not own at  least a majority of the outstanding equity interests of the surviving parent entity, (ii) the sale of all or substantially all of the  Company's assets, (iii) the acquisition of beneficial ownership or control of (including, without limitation, power to vote) a  majority of the outstanding Shares by any person or entity (including a “group” as defined by or under Section 13(d)(3) of the  Exchange Act), (iv) the dissolution or liquidation of the Company, or (v) a contested election of directors, as a result of which or  in connection with which the persons who were directors of the Company before such election or their nominees cease to  constitute a majority of the Board.  A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company's  incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held  the Company's securities immediately before such transactions. In addition, if a Change in Control constitutes a payment event  with respect to any Award which provides for a deferral of compensation and is subject to Code Section 409A, then  notwithstanding anything to the contrary in the Plan or applicable Award Agreement the transaction with respect to such Award  must also constitute a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5) to the extent required  by Code Section 409A.  (j)            “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations  promulgated thereunder.  (k)           “Committee” means a committee described in Section 3.  (l)            “Common Stock” means the Company’s common stock, $0.001 par value per Share, and any other securities  into which such shares are changed, for which such shares are exchanged or which may be issued in respect thereof.  (m)          “Company” means LifeVantage Corporation, a Colorado corporation.  (n)           “Consultant” means a consultant or adviser who provides bona fide services to the Company, a Parent, a  Subsidiary or an Affiliate, other than as an Employee, Director or Non-Employee Director and who qualifies as a consultant or  adviser under Instruction A.1.(a)(1) of Form S-8 under the Securities Act.  

 

  3  (o)           “Covered Employees” means those individuals whose compensation is subject to the deduction limitations of  Code Section 162(m).  (p)           “Director” means a member of the Board who is also an Employee.  (q)           “Disability” means, except as may otherwise be provided in a Participant’s employment agreement or applicable  Award Agreement (and in such case the employment agreement or Award Agreement shall govern as to the definition of  Disability), that the Participant is classified as disabled under a long-term disability policy of the Company or, if no such policy  applies, the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical  or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous  period of not less than 12 months.  (r)            “Employee” means any individual who is a common-law employee of the Company, or of a Parent, or of a  Subsidiary or of an Affiliate.  (s)            “Equity Award” means any Award other than a Cash Award.  (t)            “Exchange Act” means the Securities Exchange Act of 1934, as amended.  (u)           “Exercise Price” means, in the case of an Option, the amount for which a Share may be purchased upon  exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, means  an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value in determining the  amount payable to a Participant upon exercise of such SAR.  (v)           “Fair Market Value” means the market price of a Share, determined by the Committee as follows:  (i)            If the Shares are traded on a stock exchange (such as the New York Stock Exchange, NYSE MKT,  the NASDAQ Global Market or NASDAQ Capital Market) at the time of determination, then the Fair Market Value shall be  equal to the regular session closing price for such stock as reported by such exchange (or the exchange or market with the greatest  volume of trading in the Shares) on the date of determination, or if there are no sales on such date, on the last date preceding such  date on which a closing price was reported;  (ii)           If the Shares are traded on the OTC Bulletin Board at the time of determination, then the Fair Market  Value shall be equal to the last-sale price reported by the OTC Bulletin Board for such date, or if there are no sales on such date,  on the last date preceding such date on which a sale was reported; and  (iii)         If neither of the foregoing provisions is applicable, then the Fair Market Value shall be determined by  the Committee in good faith using a reasonable application of a reasonable valuation method as the Committee deems appropriate.  Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices reported by  the applicable exchange or the OTC Bulletin Board, as applicable, or a nationally recognized publisher of stock prices or  quotations (including an electronic on-line publication). Such determination shall be conclusive and binding on all persons.  (w)          “Fiscal Year” means the Company’s fiscal year.  (x)           “Incentive Stock Option” or “ISO” means an incentive stock option described in Code Section 422.  (y)           “Net Exercise” means, to the extent that a Stock Option Agreement so provides and as permitted by applicable  law, an arrangement pursuant to which the number of Shares issued to the Optionee in connection with the Optionee’s exercise  of the Option will be reduced by the Company’s retention of a portion of such Shares. Upon such a net exercise of an Option, the  Optionee will receive a net number of Shares that is equal to (i) the number of Shares as to which the Option is being exercised  minus (ii) the quotient (rounded down to the nearest whole number) of the aggregate Exercise Price of the Shares being exercised  divided by the Fair Market Value of a Share on the Option exercise date. The number of Shares covered by clause (ii) will be  retained by the Company and not delivered to the Optionee. No fractional Shares will be created as a result of a Net Exercise and  the Optionee must contemporaneously pay for any portion of the aggregate Exercise Price that is not covered by the Shares  retained by the Company under clause (ii). The number of Shares delivered to the Optionee may be further reduced if Net Exercise  is utilized under Section 14(b) to satisfy applicable tax withholding obligations.  (z)           “Non-Employee Director” means a member of the Board who is not an Employee.  

 

  4  (aa)         “Nonstatutory Stock Option” or “NSO” means a stock option that is not an ISO.  (bb)         “Officer” means an individual who is an officer of the Company within the meaning of Rule 16a-1(f) of the  Exchange Act.  (cc)         “Option” means an ISO or NSO granted under the Plan entitling the Optionee to purchase a specified number  of Shares, at such times and applying a specified Exercise Price, as provided in the applicable Stock Option Agreement.  (dd)         “Optionee” means an individual, estate or other entity that holds an Option.  (ee)         “Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with  the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined  voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent  on a date after the Adoption Date shall be considered a Parent commencing as of such date.  (ff)           “Participant” means an individual or estate or other entity that holds an Award.  (gg)         “Performance Goals” means one or more objective performance targets established for a Participant which  may be described in terms of Company-wide objectives and/or objectives that are related to the performance of the individual  Participant or a Parent, Subsidiary, Affiliate, division, department or function within the Company or entity in which the  Participant is employed, and such targets may be applied either individually, alternatively or in any combination, and measured  either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous  years’ results or to a designated comparison group, in each case as specified by the Committee. Any Performance Goals that are  included in an Award in order to make such Award qualify as performance-based compensation under Code Section 162(m) shall  be limited to one or more of the following target objectives: (i) operating income; (ii) earnings before interest, taxes, depreciation  and amortization, or EBITDA; (iii) earnings; (iv) cash flow; (v) market share; (vi) sales or revenue, including with respect to a  particular product, business line, geography or market; (vii) expenses; (viii) cost of goods sold; (ix) profit/loss or profit margin;  (x) working capital; (xi) return on equity or assets or investment; (xii) earnings per share; (xiii) economic value added, or EVA;  (xiv) stock price including without limitation total stockholder return; (xv) price/earnings ratio; (xvi) debt or debt-to-equity; (xvii)  accounts receivable; (xviii) writeoffs; (xix) cash; (xx) assets; (xxi) liquidity; (xxii) operations; (xxiii) research or related  milestones; (xxiv) business development; (xxv) intellectual property (e.g., patents); (xxvi) product development; (xxvii)  regulatory activity; (xxviii) information technology; (xxix) financings; (xxx) product quality control; (xxxi) management; (xxxii)  human resources; (xxxiii) corporate governance; (xxxiv) compliance program; (xxxv) legal matters; (xxxvi) internal controls;  (xxxvii) policies and procedures; (xxxviii) accounting and reporting; (xxxix) strategic alliances, licensing and partnering; (xl)  site, plant or building development; (xli) corporate transactions including without limitation mergers, acquisitions, divestitures  and/or joint ventures; (xlii) customer satisfaction; (xliii) capital expenditures and/or (xliv) Company advancement milestones.  Awards issued to individuals who are not Covered Employees (or which are not intended to qualify as performance-based  compensation under Code Section 162(m)) may take into account other (or no) factors.  (hh)         “Performance Period” means any period of time as determined by the Committee, in its sole discretion. The  Committee may establish different Performance Periods for different Participants, and the Committee may establish concurrent  or overlapping Performance Periods.  (ii)           “Plan” means this LifeVantage Corporation 2017 Long-Term Incentive Plan as it may be amended from time  to time.  (jj)           “Prior Equity Compensation Plans” means the Company’s 2010 Long-Term Incentive Plan (the “2010 Plan”),  2007 Long-Term Incentive Plan (as assumed from Lifeline Therapeutics, Inc., a Colorado corporation) and its predecessor plans  and any other Company equity compensation plans.  (kk)         “Re-Price” means that the Company has lowered or reduced the Exercise Price of outstanding Options and/or  outstanding SARs for any Participant(s) in a manner described by SEC Regulation S-K Item 402(d)(2)(viii) (or as described in  any successor provision(s) or definition(s)).  (ll)           “Restricted Stock Grant” means Shares awarded under the Plan as provided in Section 9.  (mm)       “Restricted Stock Grant Agreement” means the agreement described in Section 9 evidencing each Award of a  Restricted Stock Grant.  

 

  5  (nn)         “SAR Agreement” means the agreement described in Section 8 evidencing each Award of a Stock Appreciation  Right.  (oo)         “SEC” means the Securities and Exchange Commission.  (pp)         “Section 16 Persons” means those officers, directors or other persons who are subject to Section 16 of the  Exchange Act.  (qq)         “Securities Act” means the Securities Act of 1933, as amended.  (rr)           “Selected Employee” means an Employee, Consultant, Director, or Non-Employee Director who has been  selected by the Committee to receive an Award under the Plan.  (ss)          “Separation From Service” means a Participant’s separation from service with the Company within the meaning  provided to such term under Code Section 409A.  (tt)           “Service” means service as an Employee, Director, Non-Employee Director or Consultant. Service will be  deemed terminated as soon as the entity to which Service is being provided is no longer either (i) the Company, (ii) a Parent, (iii)  a Subsidiary or (iv) an Affiliate. A Participant’s Service does not terminate if he or she is a common-law employee with respect  to the Company, a Parent, a Subsidiary or an Affiliate and goes on a bona fide leave of absence that was approved by the Company  in writing and the terms of the leave provide for continued service crediting, or when continued service crediting is required by  applicable law. However, for purposes of determining whether an Option is entitled to continuing ISO status, a common-law  employee’s Service will be treated as terminating ninety (90) days after such Employee went on leave, unless such Employee’s  right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave  ends, unless such Employee immediately returns to active work. The Committee determines which leaves count toward Service,  and when Service commences and terminates for all purposes under the Plan. For avoidance of doubt, a Participant’s Service  shall not be deemed terminated if the Committee determines that (i) a transition of employment to service with a partnership,  joint venture or corporation not meeting the requirements of a Subsidiary in which the Company or a Subsidiary is a party is not  considered a termination of Service, (ii) the Participant transfers between service as an Employee and service as a Consultant or  other personal service provider (or vice versa), or (iii) the Participant transfers between service as an Employee and that of a Non- Employee Director (or vice versa). The Committee may determine whether any company transaction, such as a sale or spin-off  of a division or subsidiary that employs a Participant, shall be deemed to result in termination of Service for purposes of any  affected Awards, and the Committee’s decision shall be final and binding.  (uu)         “Share” means one share of Common Stock.  (vv)         “Stockholder Approval Date” means the date that the Company’s stockholders approve this Plan provided that  such approval must occur on or before the first anniversary of the Adoption Date.  (ww)       “Specified Employee” means a Participant who is considered a “specified employee” within the meaning  provided to such term under Code Section 409A.  (xx)         “Stock Appreciation Right” or “SAR” means a stock appreciation right awarded under the Plan which provides  the holder with a right to potentially receive, in cash and/or Shares, value with respect to a specific number of Shares, as provided  in Section 8.  (yy)         “Stock Option Agreement” means the agreement described in Section 6 evidencing each Award of an Option.  (zz)         “Stock Unit” means a bookkeeping entry representing the equivalent of one Share, as awarded under the Plan  and as provided in Section 10.  (aaa)       “Stock Unit Agreement” means the agreement described in Section 10 evidencing each Award of Stock Units.  (bbb)      “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning  with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50%  or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation  that attains the status of a Subsidiary on a date after the Adoption Date shall be considered a Subsidiary commencing as of such  date.  

 

  6  (ccc)       “Termination Date” means the date on which a Participant’s Service terminates as determined by the Committee.  (ddd)      “10-Percent Stockholder” means an individual who owns more than 10% of the total combined voting power  of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries. In determining stock ownership, the  attribution rules of Section 424(d) of the Code shall be applied.  SECTION 3.  ADMINISTRATION  (a)           Committee Composition.  A Committee appointed by the Board shall administer the Plan. Unless the Board  provides otherwise, the Board’s Compensation Committee (or a comparable committee of the Board) shall be the Committee.  The Board may also at any time terminate the functions of the Committee and reassume all powers and authority previously  delegated to the Committee.  To the extent required, the Committee shall have membership composition which enables (i) Awards to Section 16  Persons to qualify as exempt from liability under Section 16(b) of the Exchange Act and (ii) Awards to Covered Employees to be  able to qualify as performance-based compensation as provided under Code Section 162(m) (to the extent such Awards are  intended to qualify as performance-based compensation).  The Board may also appoint one or more separate committees of the Board, each composed of directors of the Company  who need not qualify under Rule 16b-3 of the Exchange Act or Code Section 162(m), that may administer the Plan with respect  to Selected Employees who are not Section 16 Persons or Covered Employees, respectively, may grant Awards under the Plan to  such Selected Employees and may determine all terms of such Awards. To the extent permitted by applicable law, the Board may  also appoint a committee, composed of one or more Officers, that may authorize Awards to Employees (who are not Section 16  Persons or Covered Employees) within parameters specified by the Board and consistent with any limitations imposed by  applicable law.  The Committee shall comply with rules and regulations applicable to it, including under the rules of any exchange on  which the Shares are traded.  Notwithstanding the foregoing, the Board shall constitute the Committee and shall administer the Plan with respect to  all Awards granted to Non-Employee Directors.  (b)           Authority of the Committee.  Subject to the provisions of the Plan, the Committee shall have full authority and  discretion to take any actions it deems necessary or advisable for the administration of the Plan. Such actions shall include without  limitation:  (i)            determining Selected Employees who are to receive Awards under the Plan;  (ii)           determining the type, number, vesting requirements, Performance Goals (if any) and their degree of  satisfaction, and other features and conditions of such Awards and amending such Awards;  (iii)         correcting any defect, supplying any omission, or reconciling or clarifying any inconsistency in the  Plan or any Award Agreement;  (iv)          accelerating the vesting, or extending the post-termination exercise term, or waiving restrictions, of  Awards at any time and under such terms and conditions as it deems appropriate;  (v)           interpreting the Plan and any Award Agreements;  (vi)          making all other decisions relating to the operation of the Plan; and  (vii)        adopting such plans or subplans as may be deemed necessary or appropriate to provide for the  participation by non-U.S. employees of the Company and its Subsidiaries and Affiliates, which plans and/or subplans shall be  attached hereto as appendices.  The Committee may adopt such rules or guidelines, as it deems appropriate to implement the Plan. The Committee’s  determinations under the Plan shall be final, conclusive and binding on all persons. The Committee’s decisions and determinations  need not be uniform and may be made selectively among Participants in the Committee’s sole discretion. The Committee’s  decisions and determinations will be afforded the maximum deference provided by applicable law.  

 

  7  (c)           Indemnification.  To the maximum extent permitted by applicable law, each member of the Committee, or of  the Board, or any persons (including without limitation Employees and Officers) who are delegated by the Board or Committee  to perform oversight or administrative functions in connection with the Plan, shall be indemnified and held harmless by the  Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her  in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or  she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement, and (ii) from any  and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of  any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an  opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her  own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such  persons may be entitled under the Company’s Articles of Incorporation or Bylaws, by contract, as a matter of law, or otherwise,  or under any power that the Company may have to indemnify them or hold them harmless.  SECTION 4.  GENERAL  (a)           General Eligibility.  Only Employees, Consultants, Directors and Non-Employee Directors shall be eligible for  designation as Selected Employees by the Committee.  (b)           Incentive Stock Options.  Only Selected Employees who are common-law employees of the Company, a Parent  or a Subsidiary shall be eligible for the grant of ISOs. In addition, a Selected Employee who is a 10-Percent Stockholder shall not  be eligible for the grant of an ISO unless the requirements set forth in Section 422(c)(5) of the Code are satisfied. If and to the  extent that any Shares are issued under a portion of any Option that exceeds the $100,000 limitation of Section 422 of the Code,  such Shares shall not be treated as issued under an ISO notwithstanding any designation otherwise. Certain decisions,  amendments, interpretations and actions by the Committee and certain actions by a Participant may cause an Option to cease to  qualify as an ISO pursuant to the Code and by accepting an Option the Participant agrees in advance to such disqualifying action.  (c)           Restrictions on Shares.  Any Shares issued pursuant to an Award shall be subject to such Company policies,  rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall  apply in addition to any restrictions that may apply to holders of Shares generally and shall also comply to the extent necessary  with applicable law. In no event shall the Company be required to issue fractional Shares under this Plan.  (d)           Beneficiaries.  A Participant may designate one or more beneficiaries with respect to an Award by timely filing  the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company  at any time before the Participant’s death. If no beneficiary was designated or if no designated beneficiary survives the Participant,  then after a Participant’s death any vested Award(s) shall be transferred or distributed to the Participant’s estate.  (e)           Performance Goals.  The Committee may, in its discretion, include Performance Goals or other performance  objectives in any Award. If Performance Goals are included in Awards to Covered Employees in order to enable such Awards to  qualify as performance-based compensation under Code Section 162(m), then such Awards will be subject to the achievement of  such Performance Goals that will be established and administered pursuant to the requirements of Code Section 162(m) and as  described in this Section 4(e). If an Award is intended to qualify as performance-based compensation under Code Section 162(m)  and to the extent required by Code Section 162(m), the Committee shall certify in writing the degree to which the Performance  Goals have been satisfied before any Shares underlying an Award or any Award payments are released to a Covered Employee  with respect to a Performance Period. Without limitation, the approved minutes of a Committee meeting shall constitute such  written certification. With respect to Awards that are intended to qualify as performance-based compensation under Code Section  162(m), the Committee may adjust the evaluation of performance under a Performance Goal (to the extent permitted by Code  Section 162(m)) to remove the effects of certain events including without limitation the following:  (i)            asset write-downs or discontinued operations,  (ii)           litigation or claim judgments or settlements,  (iii)         material changes in or provisions under tax law, accounting principles or other such laws or provisions  affecting reported results,  (iv)          reorganizations or restructuring programs or divestitures or acquisitions, and/or  

 

  8  (v)           extraordinary non-recurring items as described in applicable accounting principles and/or items of  gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence.  Notwithstanding satisfaction of any completion of any Performance Goal, to the extent specified at the time of grant of  an Award, the number of Shares, Options, SARs, Stock Units or other benefits granted, issued, retainable and/or vested under an  Award on account of satisfaction of such Performance Goals may be reduced by the Committee on the basis of such further  considerations as the Committee in its sole discretion shall determine. Awards with Performance Goals or performance objectives  (if any) that are granted to Selected Employees who are not Covered Employees or any Awards to Covered Employees which are  not intended to qualify as performance-based compensation under Code Section 162(m) need not comply with the requirements  of Code Section 162(m).  (f)            No Rights as a Stockholder.  A Participant, or a transferee of a Participant, shall have no rights as a stockholder  (including without limitation voting rights or dividend or distribution rights) with respect to any Common Stock covered by an  Award until such person becomes entitled to receive such Common Stock, has satisfied any applicable withholding or tax  obligations relating to the Award and the Common Stock has been issued to the Participant. No adjustment shall be made for cash  or stock dividends or other rights for which the record date is prior to the date when such Common Stock is issued, except as  expressly provided in Section 11. For the avoidance of doubt, no Award shall allow for the payment of dividends with respect to  any portion of the Award that does not vest or as to which applicable vesting or performance conditions are not satisfied.  (g)           Termination of Service.  Unless the applicable Award Agreement or employment agreement provides otherwise  (and in such case, the Award or employment agreement shall govern as to the consequences of a termination of Service for such  Awards), the following rules shall govern the vesting, exercisability and term of outstanding Awards held by a Participant in the  event of termination of such Participant’s Service (in all cases subject to the term of the Option or SAR as applicable):  (i)            if the Service of a Participant is terminated for Cause, then all of the Participant’s Options, SARs,  unvested portions of Stock Units and unvested portions of Restricted Stock Grants shall terminate and be forfeited immediately  without consideration as of the Termination Date (except for repayment of any amounts the Participant had previously paid to the  Company to acquire Shares underlying the forfeited Awards);  (ii)           if the Service of Participant is terminated for any reason other than for Cause and other due to the  Participant’s death or Disability, then the vested portion of the Participant’s then-outstanding Options/SARs may be exercised by  such Participant or his or her personal representative within three months after the Termination Date and all unvested portions of  the Participant’s outstanding Awards shall be forfeited without consideration as of the Termination Date (except for repayment of  any amounts the Participant had previously paid to the Company to acquire Shares underlying the forfeited Awards); or  (iii)         if the Service of a Participant is terminated due to the Participant’s death or Disability, the vested  portion of the Participant’s then outstanding Options/SARs may be exercised within twelve months after the Termination Date  and all unvested portions of any outstanding Awards shall be forfeited without consideration as of the Termination Date (except  for repayment of any amounts the Participant had previously paid to the Company to acquire Shares underlying the forfeited  Awards).  (h)           Code Section 409A.  Notwithstanding anything in the Plan to the contrary, the Plan and Awards granted  hereunder are intended to comply with the requirements of Code Section 409A and shall be interpreted in a manner consistent  with such intention. In the event that any provision of the Plan or an Award Agreement is determined by the Committee to not  comply with the applicable requirements of Code Section 409A and the Treasury Regulations and other guidance issued  thereunder, the Committee shall have the authority to take such actions and to make such changes to the Plan or an Award  Agreement as the Committee deems necessary to comply with such requirements, provided that no such action shall adversely  affect any outstanding Award without the consent of the affected Participant. Each payment to a Participant made pursuant to this  Plan shall be considered a separate payment and not one of a series of payments for purposes of Code Section 409A.  Notwithstanding the foregoing or anything elsewhere in the Plan or an Award Agreement to the contrary, if upon a Participant’s  Separation From Service he/she is then a Specified Employee, then solely to the extent necessary to comply with Code Section  409A and avoid the imposition of taxes under Code Section 409A, the Company shall defer payment of “nonqualified deferred  compensation” subject to Code Section 409A payable as a result of and within six (6) months following such Separation From  Service under this Plan until the earlier of (i) the first business day of the seventh month following the Participant’s Separation  From Service, or (ii) ten (10) days after the Company receives written confirmation of the Participant’s death. Any such delayed  

 

  9  payments shall be made without interest. In no event whatsoever shall the Company be liable for any additional tax, interest or  penalties that may be imposed on a Participant by Code Section 409A or for any damages for failing to comply with Code Section  409A.  (i)            Suspension or Termination of Awards.  If at any time (including after a notice of exercise has been delivered)  the Committee (or the Board), reasonably believes that a Participant has committed an act of Cause (which includes a failure to  act), the Committee (or Board) may suspend the Participant’s right to exercise any Option or SAR (or payment of a Cash Award  or vesting of Restricted Stock Grants or Stock Units) pending a determination of whether there was in fact an act of Cause. If the  Committee (or the Board) determines a Participant has committed an act of Cause, neither the Participant nor his or her estate  shall be entitled to exercise any outstanding Option or SAR whatsoever and all of Participant’s outstanding Awards shall then  terminate without consideration. Any determination by the Committee (or the Board) with respect to the foregoing shall be final,  conclusive and binding on all interested parties.  (j)            Electronic Communications.  Subject to compliance with applicable law and/or regulations, an Award  Agreement or other documentation or notices relating to the Plan and/or Awards may be communicated to Participants by  electronic media.  (k)           Unfunded Plan.  Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts  may be established with respect to Participants who are granted Awards under this Plan, any such accounts will be used merely  as a bookkeeping convenience. The Company shall not be required to segregate any assets which may at any time be represented  by Awards, nor shall this Plan be construed as providing for such segregation, nor shall the Company or the Committee be deemed  to be a trustee of stock or cash to be awarded under the Plan.  (l)            Liability of Company.  The Company (or members of the Board or Committee) shall not be liable to a  Participant or other persons as to: (a) the non-issuance or sale of Shares as to which the Company has been unable to obtain from  any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance  and sale of any Shares hereunder; and (b) any unexpected or adverse tax consequence or any tax consequence expected, but not  realized, by any Participant or other person due to the grant, receipt, exercise or settlement of any Award granted hereunder.  (m)          Reformation.  In the event any provision of this Plan shall be held illegal or invalid for any reason, such  provisions will be reformed by the Board if possible and to the extent needed in order to be held legal and valid. If it is not  possible to reform the illegal or invalid provisions then the illegality or invalidity shall not affect the remaining parts of this Plan,  and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.  (n)           Re-Pricing of Options or SARs.  Notwithstanding anything to the contrary, without the approval of Company  stockholders and except as provided in Section 11(a), outstanding Options or SARs may not be re-priced, replaced or regranted  (i) through cancellation, whether in exchange for cash or another type of Award, (ii) by lowering the Exercise Price of a previously  granted Option or SAR or (iii) by replacing a previously granted Option or SAR with a new Option or SAR with a lower Exercise  Price.  (o)           Successor Provision.  Any reference to a statute, rule or regulation, or to a section of a statute, rule or regulation,  is a reference to that statute, rule, regulation, or section as amended from time to time, both before and after the Adoption Date  and including any successor provisions.  (p)           Governing Law.  This Plan and all Awards shall be construed in accordance with and governed by the laws of  the State of Utah but without regard to its conflict of law provisions. The Committee may provide that any dispute as to any  Award shall be presented and determined in such forum as the Committee may specify, including through binding arbitration.  Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive  jurisdiction and venue of the federal or state courts of Utah to resolve any and all issues that may arise out of or relate to the Plan  or any related Award Agreement.  (q) Minimum Vesting Requirement. No Award granted on or after July 1, 2018 shall vest, become exercisable or  be settled on a date that is earlier than the first anniversary of the grant date of the Award; provided however that this minimum  vesting and exercisability requirement shall not apply (i) to up to 5% of the aggregate number of shares reserved for issuance  hereunder, (ii) if Section 12 applies, or (iii) with respect to an Award held by a Participant whose Service terminates as a result of  his or her death or disability.   

 

  10  SECTION 5.  SHARES SUBJECT TO PLAN AND SHARE LIMITS  (a)           Basic Limitations.  The Common Stock issuable under the Plan shall be authorized but unissued Shares or  treasury Shares.  Subject to adjustment as provided in Section 11, the maximum aggregate number of Shares that may be issued  under the Plan shall not exceed the sum of (i) 2,440,000 Shares, (ii) the number of Shares reserved under the 2010 Plan that are  not issued or subject to outstanding awards under the 2010 Plan on the Stockholder Approval Date, (iii) any Shares subject to  outstanding options or other awards under the 2010 Plan on the Stockholder Approval Date that subsequently expire or lapse  unexercised and Shares issued pursuant to awards granted under the 2010 Plan that are outstanding on the Stockholder Approval  Date and that are subsequently forfeited to or repurchased by the Company, and (iv) the additional Shares described in Section  5(b); provided, however, that no more than 475,000 Shares, in the aggregate, shall be added to the Plan pursuant to clauses (ii)  and (iii).  No more than 2,915,000 Shares plus the additional Shares described in Section 5(b) may be issued under the Plan upon  the exercise of ISOs.  (b)           Share Re-Use.  If Equity Awards are forfeited or are terminated for any reason other than being exercised, then  the Shares underlying such Equity Awards shall again become available for Equity Awards under the Plan. If SARs are exercised  or Stock Units are settled in Shares, then only the number of Shares (if any) actually issued in settlement of such SARs or Stock  Units shall reduce the number of Shares available under the Share limits stated in Section 5(a) and the balance shall again become  available for Equity Awards under the Plan. If a Participant pays the Exercise Price by Net Exercise or by surrendering previously  owned Shares (or by stock attestation) and/or, as permitted by the Committee, pays any withholding tax obligation with respect  to an Equity Award by electing to have Shares withheld or surrendering previously owned Shares (or by stock attestation), the  surrendered Shares and the Shares withheld to pay taxes shall be available for issuance under the Plan and shall not count toward  the Share limits set forth in Section 5(a). Any Shares that are delivered and any Equity Awards that are granted by, or become  obligations of, the Company, as a result of the assumption by the Company of, or in substitution for, outstanding awards previously  granted by another entity (as provided in Sections 6(e), 8(f), 9(e) or 10(e)) shall not be counted against the Share limits specified  in Sections 5(a) and 5(d).  (c)           Dividend Equivalents.  Any dividend equivalents distributed under the Plan shall not be applied against the  number of Shares available for Equity Awards.  (d)           Code Section 162(m) Limits.  For so long as: (x) the Company is a “publicly held corporation” within the  meaning of Code Section 162(m) and (y) the deduction limitations of Code Section 162(m) are applicable to Awards granted to  the Company’s Covered Employees under this Plan, then the limits specified below in this Section 5(d) shall be applicable to  Awards issued under the Plan.  (i)            Limits on Options.  No Selected Employee shall receive Options to purchase Shares during any Fiscal  Year that in the aggregate cover in excess of 300,000 Shares.  (ii)           Limits on SARs.  No Selected Employee shall receive Awards of SARs during any Fiscal Year that  in the aggregate cover in excess of 300,000 Shares.  (iii)         Limits on Restricted Stock Grants.  No Selected Employee shall receive Restricted Stock Grants  during any Fiscal Year that in the aggregate cover in excess of 300,000 Shares.  (iv)          Limits on Stock Units.  No Selected Employee shall receive Stock Units during any Fiscal Year that  in the aggregate cover in excess of 300,000 Shares.  (v)           Limit on Total Amount of All Equity Awards.  Notwithstanding anything to the contrary contained  herein, no Selected Employee shall receive Equity Awards during any Fiscal Year in excess of the aggregate amount of 600,000  Shares, whether such Equity Awards are in the form of Options, SARs, Restricted Stock Grants and/or Stock Units.  (vi)          Increased Limits for First Year of Employment.  The numerical limits expressed in the foregoing  subparts (i) through (iv) shall in each case be increased to 600,000 Shares with respect to Equity Awards granted to a Selected  Employee during the Fiscal Year of the Selected Employee’s commencement of employment with the Company or during the  first Fiscal Year that the Selected Employee becomes a Covered Employee.  (vii)        Dollar Limit for Cash Awards.  The maximum aggregate value of Cash Awards that may be received  by any one Selected Employee with respect to any individual Fiscal Year is $5,000,000.  

 

  11  SECTION 6.  TERMS AND CONDITIONS OF OPTIONS  (a)           Stock Option Agreement.  Each Award of an Option under the Plan shall be evidenced by a Stock Option  Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the  Plan and may be subject to any other terms and conditions that are not inconsistent with the Plan (including without limitation  any Performance Goals). The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.  The Stock Option Agreement shall also specify whether the Option is an ISO and if not specified then the Option shall be an  NSO.  (b)           Number of Shares.  Each Stock Option Agreement shall specify the number of Shares that are subject to the  Option and is subject to adjustment of such number in accordance with Section 11.  (c)           Exercise Price.  An Option’s Exercise Price shall be established by the Committee and set forth in a Stock  Option Agreement. Except with respect to outstanding stock options being assumed or Options being granted in exchange for  cancellation of outstanding options granted by another issuer as provided under Section 6(e), the Exercise Price of an Option  shall not be less than 100% of the Fair Market Value (110% for ISO Awards to 10-Percent Stockholders) on the date of Award.  (d)           Exercisability and Term.  Each Stock Option Agreement shall specify the date when all or any installment of  the Option is to become vested and/or exercisable. The Stock Option Agreement shall also specify the term of the Option; provided  that the term of an Option shall in no event exceed ten years from the date of Award (and may be for a shorter period of time than  ten years). No Option can be exercised after the expiration date specified in the applicable Stock Option Agreement. A Stock  Option Agreement may provide for accelerated vesting in the event of the Participant’s death, or Disability or other events.  Notwithstanding the previous sentence, an ISO that is granted to a 10-Percent Stockholder shall have a maximum term of five  years. Notwithstanding any other provision of the Plan, no Option can be exercised after the expiration date provided in the  applicable Stock Option Agreement. In no event shall the Company be required to issue fractional Shares upon the exercise of an  Option and the Committee may specify a minimum number of Shares that must be purchased in any one Option exercise.  (e)           Modifications or Assumption of Options.  Within the limitations of the Plan, the Committee may modify,  extend or assume outstanding Options or may accept the cancellation of outstanding stock options (whether granted by the  Company or by another issuer) in return for the grant of new Options for the same or a different number of Shares and at the same  or a different Exercise Price. For avoidance of doubt, in accordance with Section 4(n), the Committee may not Re-Price  outstanding Options without approval from the Company's stockholders, except as provided in Section 11(a). No modification of  an Option shall, without the consent of the Optionee, impair his or her rights or increase his or her obligations under such Option.  (f)            Assignment or Transfer of Options.  Except as otherwise provided in the applicable Stock Option Agreement  and then only to the extent permitted by applicable law, no Option shall be transferable by the Optionee other than by will or by  the laws of descent and distribution. Except as otherwise provided in the applicable Stock Option Agreement, an Option may be  exercised during the lifetime of the Optionee only by Optionee or by the guardian or legal representative of the Optionee. No  Option or interest therein may be assigned, pledged or hypothecated by the Optionee during his or her lifetime, whether by  operation of law or otherwise, or be made subject to execution, attachment or similar process.  SECTION 7.  PAYMENT FOR OPTION SHARES  (a)           General Rule.  The entire Exercise Price of Shares issued upon exercise of Options shall be payable in cash at  the time when such Shares are purchased by the Optionee, except as follows and if so provided for in an applicable Stock Option  Agreement:  (i)            In the case of an ISO granted under the Plan, payment shall be made only pursuant to the express  provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made in  any form(s) described in this Section 7.  (ii)           In the case of an NSO granted under the Plan, the Committee may, in its discretion at any time, accept  payment in any form(s) described in this Section 7.  (b)           Surrender of Stock.  To the extent that the Committee makes this Section 7(b) applicable to an Option in a  Stock Option Agreement, payment for all or a part of the Exercise Price may be made with Shares which have already been owned  

 

  12  by the Optionee for such duration as shall be specified by the Committee. Such Shares shall be valued at their Fair Market Value  on the date when the new Shares are purchased under the Plan.  (c)           Cashless Exercise.  To the extent that the Committee makes this Section 7(c) applicable to an Option in a Stock  Option Agreement, payment for all or a part of the Exercise Price may be made through Cashless Exercise.  (d)           Net Exercise.  To the extent that the Committee makes this Section 7(d) applicable to an Option in a Stock  Option Agreement, payment for all or a part of the Exercise Price may be made through Net Exercise.  (e)           Other Forms of Payment.  To the extent that the Committee makes this Section 7(e) applicable to an Option in  a Stock Option Agreement, payment may be made in any other form that is consistent with applicable laws, regulations and rules  and approved by the Committee.  SECTION 8.  TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS  (a)           SAR Agreement.  Each Award of a SAR under the Plan shall be evidenced by a SAR Agreement between the  Participant and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms  that are not inconsistent with the Plan (including without limitation any Performance Goals). A SAR Agreement may provide for  a maximum limit on the amount of any payout notwithstanding the Fair Market Value on the date of exercise of the SAR. The  provisions of the various SAR Agreements entered into under the Plan need not be identical.  (b)           Number of Shares.  Each SAR Agreement shall specify the number of Shares to which the SAR pertains and  is subject to adjustment of such number in accordance with Section 11.  (c)           Exercise Price.  Each SAR Agreement shall specify the Exercise Price. Except with respect to outstanding  stock appreciation rights being assumed or SARs being granted in exchange for cancellation of outstanding stock appreciation  rights granted by another issuer as provided under Section 8(f), the Exercise Price of a SAR shall not be less than 100% of the  Fair Market Value on the date of Award.  (d)           Exercisability and Term.  Each SAR Agreement shall specify the date when all or any installment of the SAR  is to become exercisable. The SAR Agreement shall also specify the term of the SAR which shall not exceed ten years from the  date of Award. No SAR can be exercised after the expiration date specified in the applicable SAR Agreement. A SAR Agreement  may provide for accelerated exercisability in the event of the Participant’s death, or Disability or other events and may provide  for expiration prior to the end of its term in the event of the termination of the Participant’s Service. A SAR may be included in  an ISO only at the time of Award but may be included in an NSO at the time of Award or at any subsequent time, but not later  than six months before the expiration of such NSO. A SAR granted under the Plan may provide that it will be exercisable only in  the event of a Change in Control.  (e)           Exercise of SARs.  If, on the date when a SAR expires, the Exercise Price under such SAR is less than the Fair  Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR may automatically  be deemed to be exercised as of such date with respect to such portion to the extent so provided in the applicable SAR agreement.  Upon exercise of a SAR, the Participant (or any person having the right to exercise the SAR after the Participant’s death) shall  receive from the Company (i) Shares, (ii) cash or (iii) any combination of Shares and cash, as the Committee shall determine.  The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to  the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise  Price of the Shares.  (f)            Modification or Assumption of SARs.  Within the limitations of the Plan, the Committee may modify, extend  or assume outstanding SARs or may accept the cancellation of outstanding SARs (including stock appreciation rights granted by  another issuer) in return for the grant of new SARs for the same or a different number of Shares and at the same or a different  Exercise Price.  For avoidance of doubt, in accordance with Section 4(n), the Committee may not Re-Price outstanding SARs  without approval from the Company's stockholders, except as provided in Section 11(a).  No modification of a SAR shall, without  the consent of the Participant, impair his or her rights or increase his or her obligations under such SAR.  (g)           Assignment or Transfer of SARs.  Except as otherwise provided in the applicable SAR Agreement and then  only to the extent permitted by applicable law, no SAR shall be transferable by the Participant other than by will or by the laws  of descent and distribution. Except as otherwise provided in the applicable SAR Agreement, a SAR may be exercised during the  

 

  13  lifetime of the Participant only by the Participant or by the guardian or legal representative of the Participant. No SAR or interest  therein may be assigned, pledged or hypothecated by the Participant during his or her lifetime, whether by operation of law or  otherwise, or be made subject to execution, attachment or similar process.  SECTION 9.  TERMS AND CONDITIONS FOR RESTRICTED STOCK GRANTS  (a)           Restricted Stock Grant Agreement.  Each Restricted Stock Grant awarded under the Plan shall be evidenced  by a Restricted Stock Grant Agreement between the Participant and the Company. Each Restricted Stock Grant shall be subject  to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions that are not inconsistent  with the Plan (including without limitation any Performance Goals). The provisions of the Restricted Stock Grant Agreements  entered into under the Plan need not be identical.  (b)           Number of Shares and Payment.  Each Restricted Stock Grant Agreement shall specify the number of Shares  to which the Restricted Stock Grant pertains and is subject to adjustment of such number in accordance with Section 11. Restricted  Stock Grants may be issued with or without cash consideration under the Plan.  (c)           Vesting Conditions.  Each Restricted Stock Grant may or may not be subject to vesting. Vesting shall occur, in  full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Grant Agreement. A Restricted Stock  Grant Agreement may provide for accelerated vesting in the event of the Participant’s death, or Disability or other events.  (d)           Voting and Dividend Rights.  The holder of a Restricted Stock Grant (irrespective of whether the Shares subject  to the Restricted Stock Grant are vested or unvested) awarded under the Plan shall have the same voting, dividend and other rights  as the Company's other stockholders; provided however that any dividends attributed to Shares that are unvested (whether such  dividends are in the form of cash or Shares) shall be subject to the same vesting conditions and restrictions as the Restricted Stock  Grant with respect to which the dividends relate; and provided further that this sentence is subject to the final sentence of Section  4(f). Such additional Shares issued as dividends that are subject to the Restricted Stock Grant shall not reduce the number of  Shares available for issuance under Section 5.  (e)           Modification or Assumption of Restricted Stock Grants.  Within the limitations of the Plan, the Committee  may modify or assume outstanding Restricted Stock Grants or may accept the cancellation of outstanding Restricted Stock Grants  (including stock granted by another issuer) in return for the grant of new Restricted Stock Grants for the same or a different  number of Shares. No modification of a Restricted Stock Grant shall, without the consent of the Participant, impair his or her  rights or increase his or her obligations under such Restricted Stock Grant.  (f)            Assignment or Transfer of Restricted Stock Grants.  Except as provided in Section 14, or in a Restricted Stock  Grant Agreement, or as required by applicable law, a Restricted Stock Grant awarded under the Plan shall not be anticipated,  assigned, attached, garnished, optioned, transferred or made subject to any creditor's process, whether voluntarily, involuntarily  or by operation of law. Any act in violation of this Section 9(f) shall be void. However, this Section 9(f) shall not preclude a  Participant from designating a beneficiary pursuant to Section 4(d) nor shall it preclude a transfer of Restricted Stock Grant  Awards by will or pursuant to Section 4(d).  SECTION 10.  TERMS AND CONDITIONS OF STOCK UNITS  (a)           Stock Unit Agreement.  Each Award of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement  between the Participant and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject  to any other terms that are not inconsistent with the Plan (including without limitation any Performance Goals). The provisions  of the various Stock Unit Agreements entered into under the Plan need not be identical.  (b)           Number of Shares and Payment.  Each Stock Unit Agreement shall specify the number of Shares to which the  Stock Unit Grant pertains and is subject to adjustment of such number in accordance with Section 11. To the extent that an Award  is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients.  (c)           Vesting Conditions.  Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in  full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may  provide for accelerated vesting in the event of the Participant’s death, or Disability or other events.  (d)           Voting and Dividend Rights.  The holders of Stock Units shall have no voting rights. Prior to settlement or  forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents.  

 

  14  Such right entitles the holder to be credited with an amount equal to all cash or Common Stock dividends paid on one Share while  the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend  equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to vesting of the Stock  Units, any dividend equivalents accrued on such unvested Stock Units shall be subject to the same vesting conditions and  restrictions as the Stock Units to which they attach, provided that this sentence is subject to the final sentence of Section 4(f).  (e)           Modification or Assumption of Stock Units.  Within the limitations of the Plan, the Committee may modify or  assume outstanding Stock Units or may accept the cancellation of outstanding Stock Units (including stock units granted by  another issuer) in return for the grant of new Stock Units for the same or a different number of Shares. No modification of a Stock  Unit shall, without the consent of the Participant, impair his or her rights or increase his or her obligations under such Stock Unit.  (f)            Assignment or Transfer of Stock Units.  Except as provided in Section 14, or in a Stock Unit Agreement, or as  required by applicable law, Stock Units shall not be anticipated, assigned, attached, garnished, optioned, transferred or made  subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law. Any act in violation of this Section  10(f) shall be void. However, this Section 10(f) shall not preclude a Participant from designating a beneficiary pursuant to Section  4(d) nor shall it preclude a transfer of Stock Units pursuant to Section 4(d).  (g)           Form and Time of Settlement of Stock Units.  Settlement of vested Stock Units may be made in the form of  (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible  for settlement may be larger or smaller than the number included in the original Award. Methods of converting Stock Units into  cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days.  Except as otherwise provided in a Stock Unit Agreement or a timely completed deferral election, vested Stock Units shall be  settled within thirty days after vesting. The distribution may occur or commence when all vesting conditions applicable to the  Stock Units have been satisfied or have lapsed, or it may be deferred, in accordance with applicable law, to a later specified date.  The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock  Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 11.  (h)           Creditors' Rights.  A holder of Stock Units shall have no rights other than those of a general creditor of the  Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of  the applicable Stock Unit Agreement.  SECTION 11.        ADJUSTMENTS  (a)           Adjustments.  In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in  Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of  Shares, a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares,  a stock split, a reverse stock split, a reclassification or other distribution of the Shares without the receipt of consideration by the  Company, of or on the Common Stock, a recapitalization, a combination, a spin-off or a similar occurrence, the Committee shall  make equitable and proportionate adjustments to:  (i)            the number and kind of securities available for Equity Awards (and which can be issued as ISOs)  under Section 5;  (ii)           the Share limits on Equity Awards issued under the Plan that are intended to qualify as performance- based compensation under Code Section 162(m) under Section 5(d);  (iii)         the number and kind of securities covered by each outstanding Equity Award;  (iv)          the Exercise Price under each outstanding SAR and Option, and the repurchase price, if any, applicable  to the unvested portion of Restricted Stock Grants; and  (v)           the number and kind of outstanding securities issued under the Plan.  (b)           Participant Rights.  Except as provided in this Section 11, a Participant shall have no rights by reason of any  issue by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of  shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock  of any class. If by reason of an adjustment pursuant to this Section 11, a Participant’s Equity Award covers additional or different  shares of stock or securities, then such additional or different shares and the Equity Award in respect thereof shall be subject to  

 

  15  all of the terms, conditions and restrictions which were applicable to the Equity Award and the Shares subject to the Equity Award  prior to such adjustment.  (c)           Fractional Shares.  Any adjustment of Shares pursuant to this Section 11 shall be rounded down to the nearest  whole number of Shares. Under no circumstances shall the Company be required to authorize or issue fractional shares. To the  extent permitted by applicable law, no consideration shall be provided as a result of any fractional shares not being issued or  authorized.  SECTION 12.  EFFECT OF A CHANGE IN CONTROL  (a)           Merger or Reorganization.  In the event that the Company is a party to a merger or other reorganization,  outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement may provide, without  limitation, that subject to the consummation of the merger or other reorganization, for the assumption (or substitution) of  outstanding Awards by the surviving corporation or its parent, for their continuation by the Company (if the Company is a  surviving corporation), for accelerated vesting and/or for their cancellation with or without consideration, in all cases without the  consent of the Participant.  (b)           Acceleration.  Except as otherwise provided in the applicable Award Agreement (and in such case the applicable  Award Agreement shall govern), in the event that a Change in Control occurs and there is no assumption, substitution or  continuation of Awards pursuant to Section 12(a), the Committee may in its discretion provide that all Awards shall vest and  become exercisable as of immediately before such Change in Control. For avoidance of doubt, “substitution” includes, without  limitation, an Award being replaced by a cash award that provides an equivalent intrinsic value (wherein for Equity Awards  intrinsic value equals the difference between the market value of a Share and any per Share exercise price).  SECTION 13.  LIMITATIONS ON RIGHTS  (a)           Retention Rights.  Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual  a right to remain in Service as an Employee, Consultant, Director or Non-Employee Director or to receive any other Awards under  the Plan. The Company and its Parents and Subsidiaries and Affiliates reserve the right to terminate the Service of any person at  any time, and for any reason, subject to applicable laws, the Company’s Articles of Incorporation and Bylaws and a written  employment agreement (if any).  (b)           Regulatory Requirements.  Any other provision of the Plan notwithstanding, the obligation of the Company to  issue Shares or other securities under the Plan shall be subject to all applicable laws, rules and regulations and such approval by  any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Shares or  other securities pursuant to any Equity Award prior to the satisfaction of all legal requirements relating to the issuance of such  Shares or other securities, to their registration, qualification or listing or to an exemption from registration, qualification or listing.  (c)           Dissolution.  To the extent not previously exercised or settled, Options, SARs, unvested Stock Units and  unvested Restricted Stock Grants shall terminate immediately prior to the dissolution or liquidation of the Company and shall be  forfeited to the Company.  (d)           Clawback Policy.  The Company may (i) cause the cancellation of any Award, (ii) require reimbursement of  any Award by a Participant and (iii) effect any other right of recoupment of equity or other compensation provided under this  Plan or otherwise in accordance with Company policies and/or applicable law (each, a “Clawback Policy”). In addition, a  Participant may be required to repay to the Company certain previously paid compensation, whether provided under this Plan or  an Award Agreement or otherwise, in accordance with the Clawback Policy.  SECTION 14.  TAXES.  (a)           General.  A Participant shall make arrangements satisfactory to the Company for the satisfaction of any  withholding tax obligations that arise in connection with his or her Award. The Company shall not be required to issue any Shares  or make any cash payment under the Plan until such obligations are satisfied.  (b)           Share Withholding.  The Committee in its discretion may permit or require a Participant to satisfy all or part  of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise  would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired (or by stock  

 

  16  attestation). Such Shares shall be valued based on the value of the actual trade or, if there is none, the Fair Market Value as of the  previous day.  Any payment of taxes by assigning Shares to the Company may be subject to restrictions, including, but not limited to,  any restrictions required by rules of the SEC. The Committee may also, in its discretion, permit or require a Participant to satisfy  withholding or income tax obligations (up to the maximum amount permitted by applicable law) related to an Equity Award  through a sale of Shares underlying the Equity Award or, in the case of Options, through Net Exercise or Cashless Exercise.  SECTION 15.  DURATION AND AMENDMENTS  (a)           Term of the Plan.  The Plan was originally effective on the Adoption Date and was amended on November 16,  2017, January 19, 2018, September 20, 2018 and August 27, 2020 (the “August 2020 Amendment”).  The August 2020  Amendment is conditioned upon and subject to the approval of the Company’s stockholders before August 27, 2021.  If the  Company’s stockholders do not approve the August 2020 Amendment before August 27, 2021, then the August 2020 Amendment  shall not be effective and the Plan as in effect before the August 2020 Amendment shall remain in effect and in such case no  Shares in excess of 2,265,000 may be issued under the Plan.  In any event, the Plan shall terminate no later than on the day before  the tenth anniversary of the Adoption Date.  The Plan may be terminated by the Board on any earlier date pursuant to Section  15(b).  This Plan will not in any way affect outstanding awards that were issued under the Prior Equity Compensation Plans or  other Company equity compensation plans.  (b)           Right to Amend or Terminate the Plan.  The Board may amend or terminate the Plan at any time and for any  reason. No Awards shall be granted under the Plan after the Plan’s termination. An amendment of the Plan shall be subject to the  approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. In addition, no such  amendment or termination shall be made which would impair the rights of any Participant, without such Participant’s written  consent, under any then-outstanding Award, provided that no such Participant consent shall be required with respect to any  amendment or alteration if the Committee determines in its sole discretion that such amendment or alteration either (i) is required  or advisable in order for the Company, the Plan or the Award to satisfy or conform to any law or regulation or to meet the  requirements of any accounting standard, or (ii) is not reasonably likely to significantly diminish the benefits provided under such  Award, or that any such diminishment has been adequately compensated. In the event of any conflict in terms between the Plan  and any Award Agreement, the terms of the Plan shall prevail and govern.  SECTION 16.  EXECUTION  To record the adoption of this Plan by the Board, the Company has caused its duly authorized Officer to execute this  Plan on behalf of the Company.    LIFEVANTAGE CORPORATION     /s/ Steven R. Fife    By: Steven R. Fife    Title: Interim President and CEO, CFODocument

EXHIBIT 10.33

January 28 2020
Liz Fraser Dear Liz,
It is with great pleasure that I confirm our offer to appoint you as Chief Executive Officer and Brand President, Kate Spade, of Tapestry, Inc. (“Tapestry” or the “Company”), reporting to the Chairman and Chief Executive Officer of Tapestry. Upon effectiveness of the appointment, you will be a member of Tapestry’s Executive Committee. You will be considered an “officer” under Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as an “Executive Officer” of Tapestry pursuant to Rule 3b-7 of the Exchange Act.
This letter details your base salary, bonus opportunity, annual equity opportunity, joining compensation and other benefits. It also lays out the conditions of your employment with Tapestry. If you accept our offer, you agree to start in your new role no later than March 1 2020. (the “Effective Date”).
1.Base Salary $800,000 per annum.
Your salary will be paid in accordance with the Company’s payroll practices, currently bi-weekly, which are subject to change from time-to-time at the discretion of the Company, and will be paid less withholding and deductions authorized under applicable law.
Performance reviews are typically conducted at the end of our fiscal year, which presently runs from approximately July 1 through June 30. Any merit increases for which you may be eligible would be determined at that time, and would take effect in September. You will first be eligible for a merit increase in September 2021.
2.Incentive Compensation
Beginning in Fiscal 2021, you will be eligible to participate in the Company’s Performance-Based Annual Incentive Plan ("AIP"), a cash incentive program under which your payout is based on Kate Spade’s and Tapestry’s financial performance, subject to its terms and conditions. Your target bonus will be 100% of your salary actually paid during the fiscal year. The actual bonus payout may range from 0% of target for performance below established thresholds to 200% of target for maximum performance, with performance components, measures and target values to be established by the Company’s Board of Directors or the Human Resources Committee of the Board of Directors (the “Committee”).
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Any AIP bonus is paid within three months of the end of the fiscal year and you must be an employee in good standing with the Company on the AIP bonus payment date in order to be
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eligible to receive any such AIP bonus payment. If you resign your employment or are terminated for "cause," you are not eligible for this bonus for the fiscal year in which you provide the required notice of your intent to resign your employment (or resign without notice) or your employment is terminated, as applicable. For the purposes of this letter, termination for “cause” is defined in the Addendum. Please refer to the My Pay section of Tapestry’s intranet, the Loop, for the governing terms and conditions of the AIP bonus plan. In addition, Tapestry’s Board of Directors has adopted an incentive repayment policy (attached) for members of the Executive Committee, which you must sign and return to me coincident with your acceptance of this offer.
3.Equity Compensation
Your compensation package includes a guideline annual equity grant value of $800,000, to be granted in a fixed proportion of different equity vehicles, which may include restricted stock units ("RSUs"), performance restricted stock units ("PRSUs"), and/or stock options, as determined annually by the Committee and normally granted in August. Subject to you starting employment with the Company by the Effective Date, your first annual grant will be made in August 2021. The current mix of equity vehicles for your role is 1/3 RSUs, 1/3 PRSUs and 1/3 stock options. Currently, PRSUs cliff vest on the third anniversary of the grant date and may vest between 0 to 200% of target shares depending on performance, RSUs vest and stock options are exercisable one fourth each year over four years beginning on the first anniversary of the grant date, in each case, subject to your continued employment or other service with the Company from the grant date to each applicable vesting date. The number of stock options you receive will be based on the grant price (closing price of Tapestry, Inc. stock on the grant date) and on an industry standard valuation model, Black-Scholes, which determines the value of a stock option. The number of RSUs you receive will be based on the grant price. The grant value and vehicle mix of any future equity grants will be determined based on your position, performance, time in job and other criteria Tapestry determines in its discretion, which are subject to change. All equity awards are subject to approval by the Committee.
4.Special New Hire Compensation
You will receive a gross sign-on cash bonus of $500,000, 50% of which will be payable within six (6) weeks of the Effective Date, and 50% on your 6 month anniversary, in each case subject to your continued employment from the Effective Date until payment date and subject to normal tax withholding. In accepting our offer, you agree that you will repay the full amount of your gross sign-on cash bonus if you provide notice of your intent to resign your employment without Good Reason (or resign without notice) at any time within 24 months of your Effective Date, or if your employment is terminated for “cause,” as defined in the Addendum. Full repayment of this gross sign-on bonus must occur within one (1) month of your termination date.
You will receive a joining equity grant in a mix of equity vehicles of 1/3 RSUs, 1/3 PRSUs and 1/3 stock options, in a total value at grant of $800,000, to be made, with respect to the RSUs and stock options, on the first business day of the calendar month coincident with or following your Effective Date, and to be made, with respect to the PRSUs, on the date in 2020 as determined annually by the Committee and normally granted in August, in each case subject to your continued employment from the Effective Date until the grant date. Your joining grant will vest as follows: RSUs and stock options will vest one fourth each year over four years beginning on the first anniversary of the grant date and PRSUs will cliff vest on the third anniversary of the grant date and may vest between 0 to 200% of target shares depending on performance, in each case subject to your continued employment or other service with the Company from the grant date to 
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each applicable vesting date.

You are subject to the terms and conditions of the grant agreements, including, but not limited to, the provisions relating to claw back of equity gains in certain post-employment scenarios. Notwithstanding anything to the contrary in this letter, the terms of the Amended and Restated Tapestry, Inc. 2018 Stock Incentive Plan (as it may be amended from time to time, the "Stock Plan") and related grant agreements, as they may be changed from time to time, are controlling.
5.Severance
If your employment at the Company should cease involuntarily for any reason other than for "cause," (e.g., position elimination) or if you resign for "Good Reason", each as defined in the attached Addendum, and subject to compliance with the Restrictive Covenants set forth in Section 4 in the attached Addendum, you will be eligible to receive (i) twelve (12) months of base salary under the Company’s Severance Pay Plan for Vice Presidents and Above, subject to its terms and conditions (including with regard to the time and form of payment), and (ii) payment on the regular payout date of any AIP bonus which was earned and payable for the prior fiscal year (and is actually paid to Tapestry employees for such fiscal year) based on Tapestry’s financial performance, as established by the Company’s Board of Directors or the Committee, which has not been paid as of the date of termination, provided that your date of termination is after the end of the fiscal year during which such AIP bonus is earned. For more information, please view the severance plan document on the Loop or contact Human Resources. To receive separation pay, you will be required to sign a waiver and release agreement in the form provided by the Company. This agreement will include restrictions on your ability to compete with the Company and solicit Company employees, customers and vendors.
6.Section 409A of the Internal Revenue Code
It is expressly intended and contemplated that this letter comply with the provisions of Section 409A of the Code and the applicable guidance thereunder ("Section 409A") and that the payments hereunder will either be exempt from Section 409A or will comply with the provisions of Section 409A. This letter will be administered and interpreted in a manner consistent with this intent, and, notwithstanding any provision of this letter to the contrary, in the event that the Company determines that any amounts payable hereunder would be immediately taxable to you under Section 409A, the Company reserves the right (without any obligation to do so or to indemnify you for failure to do so) to amend this letter to satisfy Section 409A or be exempt therefrom (which amendment may be retroactive to the extent permitted by Section 409A).
Notwithstanding any other provision of this letter, if you are a "specified employee" within the meaning of Treas. Reg. §1.409A-1(i)(1), then the payment of any amount or the provision of any benefit under this letter which is considered deferred compensation subject to Section 409A shall be deferred for six (6) months after your "separation from service" or, if earlier, the date of your death to the extent required by Section 409A(a)(2)(B)(i) (the "409A Deferral Period"). In the event payments are otherwise due to be made in installments or periodically during the 409A Deferral Period, the payments which would otherwise have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum on the Company’s first standard payroll date that arises on or after the 409A Deferral Period ends, and the balance of the payments shall be made as otherwise scheduled. For purposes of any provision of this letter providing for reimbursements to you, such reimbursements shall be made no later than the end of the calendar year following the calendar year in which you incurred such expenses, and in no event 
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shall the unused reimbursement amount during one calendar year be carried over into a subsequent calendar year. For purposes of this letter, you shall not be deemed to have terminated employment unless you have a "separation from service" within the meaning of Treas. Reg. § 1.409A-1(h). All rights to payments and benefits under this letter shall be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Section 409A. In no event shall any liability for failure to comply with the requirements of Section 409A be transferred from you or any other individual to the Company or any of its affiliates, employees or agents.
7.Benefits
Your other major benefits will include medical, dental, vision, retirement savings, life insurance, short and long term disability, Employee Stock Purchase Plan, employee discount program and 25 business days of vacation per calendar year, as generally provided by the Company to employees at a comparable level in accordance with the plans, practices and programs of the Company, and subject to your satisfaction of applicable eligibility requirements. These benefits are subject to change from time-to-time in the discretion of the Company. We are enclosing a summary of benefits highlighting these programs in Your Tapestry Benefits Overview.
The Company agrees to pay or reimburse reasonable and documented legal fees incurred by you in connection with the review of this offer letter and related documents, up to a maximum of $15,000 (fifteen thousand dollars). Such benefit is taxable to you and will be included in your calendar year 2020 Tapestry income.
8.Confidentiality
The Company believes strongly in respecting the proprietary rights of third parties and expects each of its employees to honor their confidentiality obligations to former employers. Accordingly, we expect you to fully comply with any and all obligations you may have, including non-compete, non-solicitation and confidentiality obligations.
By accepting this offer, you are confirming your representation to the Company that you are not subject to any existing non-compete obligations with your current or former employer that would prevent you from commencing employment with the Company on the Effective Date without restriction or penalty. Further, you are confirming your representation that you are currently in compliance with any non-solicitation obligation(s) you have with respect to your current or former employer and that you have not had any discussions with anyone or referred any individuals to the Company in violation of those obligations. The Company does not want, and specifically instructs you not to violate any non-solicitation obligations you may have with respect to your current and former employers and to maintain in confidence, and not destroy, delete or alter, information that is confidential and/or proprietary to your current and former employers. As a reminder, we are offering you this position based upon your talent and the skills you have acquired throughout your career.
As an employee of the Company, and as a part of this offer, you will be subject to the various policies set forth in the attached Addendum, as well as those set forth in the Your Tapestry Benefits Overview that accompanies this offer. Such policies include, but are not limited to, the following:
•Incentive Repayment Policy;
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•Executive Stock Ownership Policy;
•Notice of Intent to Terminate Employment;
•Post-Employment Restrictions;
•Code of Conduct;
•Confidentiality, Information Security and Privacy Agreement; and
•Other Terms and Conditions of Employment.
By accepting this offer, you are also expressly accepting and agreeing to be bound by and adhere to the Company policies set forth in the attached Addendum and in the packet of materials that accompany this offer letter. This letter, along with the documents attached hereto or referred to herein, constitute the entire agreement and understanding between you and the Company with respect to your employment, and supersedes all prior discussions, promises, negotiations and agreements (whether written or oral) between you and the Company.
Liz, we are excited at the prospect of your joining us. This letter and the documents provided herewith constitute the Company’s entire offer. As you review this offer, please feel free to contact me with any questions. To accept the offer, and acknowledge you are not relying on any promise or representation that is not contained in this letter, please sign in the space below and return one of the attached copies to me no later than January 30, 2020.

Sincerely,

/s/ Sarah J. Dunn        
Sarah J. Dunn
Global Human Resources Officer
Tapestry, Inc.

Agreed and accepted by:

/s/ Liz Fraser                        1/29/20         
Liz Fraser                        Date
        
        
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ADDENDUM
COMPANY POLICIES & CONDITIONS OF EMPLOYMENT
As an employee of Tapestry, Inc. (the “Company”), you will be subject to the following policies. Please sign the acknowledgement at the end noting your understanding and agreement.
1.Incentive Repayment Policy
Tapestry’s Board of Directors has adopted an incentive repayment policy affecting all performance-based compensation that the Company pays to members of its Executive Committee. Information on this policy is attached. You agree that you remain subject to this repayment policy and that it may change from time-to-time as the Committee deems appropriate and/or as is required by law.
2.Executive Stock Ownership Policy
Tapestry’s Board of Directors has implemented a stock ownership policy for all “Key Executives” and Directors. Information on this policy and the required amounts of stock ownership for your position is attached. As a Key Executive you will be required to obtain pre-approval of all Tapestry stock transactions from the Tapestry Law Department and Tapestry’s CEO.
3.Notice of Intent to Terminate Employment
If at any time you elect to terminate your employment with the Company without Good Reason, including a valid retirement from the Company, you agree to provide six (6) months’ advance written notice of your intent to terminate your employment and such notice shall be provided via email to the Chief Executive Officer and Global Human Resources Officer of Tapestry. Such notice shall include, if applicable, the identity of the prospective employer or entity, your proposed title and duties with that business, person or enterprise, as well as the proposed starting date of that employment or consulting services. After you have provided your required notice, you will continue to be an employee of the Company. Your duties and other obligations as an employee of the Company will continue and you will be expected to cooperate in the transition of your responsibilities. The Company shall, however, have the right in its sole discretion to direct that you no longer come to work or to shorten the notice period. Nothing herein alters your status as an employee at-will. The Company reserves all legal and equitable rights to enforce the advance notice provisions of this paragraph. You acknowledge and agree that your failure to comply with the notice requirements set forth in this paragraph shall result in: (i) the Company being entitled to an immediate injunction, prohibiting you from commencing employment elsewhere for the length of the required notice, (ii) the Company being entitled to claw back any bonus paid to you within 180 days of your last day of employment with the Company, (iii) the forfeiture of any unpaid bonus as of your last day of employment with the Company, (iv) any unvested equity awards and any vested but unexercised stock option awards held by you shall be automatically forfeited on your last day of employment with the Company, and (v) the Company being entitled to claw back any Financial Gain (as defined below) you realize from the vesting of any Tapestry equity award within the twelve (12) month period immediately preceding your last day of employment with the Company. “Financial Gain” shall have the meaning set forth in the various equity award grant agreements that you receive during your employment with the Company.  

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4. Post-Employment Restrictions
(a)Non-Competition. You are prohibited from, directly or indirectly, counseling, advising, consulting for, becoming employed by or providing services in any capacity to a “competitor” (as defined below) of the Company or any of its operating divisions, brands, subsidiaries or affiliates (collectively, the “Tapestry Group”) during your employment and the twelve (12) month period beginning on your last day of employment with the Company (the “Restricted Period”).
“Competitor” includes: the companies, together with their respective subsidiaries, parent entities, and all other affiliates as set forth on Exhibit A, attached hereto (such companies subject to change from time-to-time as posted on Tapestry’s intranet, the Loop). In the event your employment is terminated for any reason (other than for “cause,” as defined below), and the Company, at its sole discretion, elects to enforce its right to enjoin you from joining a competitor at any time during the Restricted Period, including prohibiting you from engaging in any of the activities prohibited by this Section 4(a), the Company shall compensate you at your most recent base salary, subject to usual withholdings, to be paid on normal pay cycles, during the remainder of the Restricted Period. The foregoing payments will be made to you solely to the extent that severance or other termination payments are not paid to you during the remainder of the Restricted Period. Nothing herein shall impact or limit your right to receive any severance payments and benefits pursuant to the terms of your offer letter, except that it is expressly understood and agreed that (i) you will not be entitled to receive payments pursuant to this paragraph during any period you are receiving severance or other termination payments and (ii) your receipt of any severance or other termination payments shall not impact the Company’s right to enforce its rights under this Section 4(a) or otherwise.
You agree that if you are offered and desire to accept employment with, or provide consulting services to, another business, person or enterprise, including, but not limited to, a “competitor,” during the Restricted Period, you will promptly inform Tapestry’s Global Human Resources Officer, in writing, of the identity of the prospective employer or entity, your proposed title and duties with that business, person or enterprise, and the proposed starting date of that employment or consulting services. You also agree that you will inform that prospective employer or entity of the terms of these provisions. Failure to abide by the requirements of this Section 4(a) will also be deemed a failure to provide the required advance written notice set forth above under Notice of Intent to Terminate Employment.
(b)Non-Solicitation. You agree that during the Restricted Period, you will not, directly or indirectly, whether alone or in association with or for the benefit of others, without the prior written consent of the Company, hire or attempt to hire, employ or solicit for employment, consulting or other service, any officer, employee or agent of the Tapestry Group (each, a “Protected Person”), or encourage, persuade or induce any Protected Person to terminate, diminish or otherwise alter such Protected Person’s relationship with the Tapestry Group.
For purposes of this Section 4(b) and to avoid any ambiguity, you and the Company agree that it will be a rebuttable presumption that you solicited any Protected Person if such Protected Person commences employment or other service for or on behalf of you or any entity to which you provide services or terminates, diminishes or otherwise alters such Protected Person’s relationship with the Tapestry Group prior to the end of the Restricted Period.
(c)Non-Interference. During the Restricted Period, you will not, directly or indirectly, whether
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alone or in association with or for the benefit of others, whether as an employee, owner, stockholder, partner, director, officer, consultant, advisor or otherwise, assist, attempt to or encourage (i) any vendor, supplier, customer or client of, or any other person or entity in a business relationship with the Tapestry Group to terminate, reduce, limit or otherwise alter such relationship, whether contractual or otherwise, (ii) any prospective vendor, supplier, customer or client not to enter into a business or contractual relationship with the Tapestry Group or (iii) to impair or attempt to impair any relationship, contractual or otherwise, between the Tapestry Group and any vendor, supplier, customer or client or any other person or entity in a business relationship with the Tapestry Group.
(d)Remedies. You acknowledge that compliance with Section 4 is necessary to protect the business, good will and proprietary and confidential information of the Tapestry Group and that a breach or threatened breach of any provision in Section 4 will irreparably and continually damage the Tapestry Group, for which money damages may not be adequate. Accordingly, in the event that you breach any provision in Section 4, you will forfeit any remaining earned but unpaid bonus and the Company shall be entitled to claw back any bonus paid to you within 180 days of your last day of employment with the Company. In addition, the Company will be entitled to preliminarily or permanently enjoin you from violating Section 4 in order to prevent the continuation of such harm.
(e)Reasonableness of Restrictions. You acknowledge: (i) that the scope and duration of the restrictions on your activities under Section 4 are reasonable and necessary to protect the legitimate business interests, goodwill and confidential and proprietary information of the Tapestry Group; (ii) that the Tapestry Group does business worldwide and, therefore, you specifically agree that, in order to adequately protect the Tapestry Group, the scope of the restrictions in this provision is reasonable; and (iii) that you will be reasonably able to earn a living without violating the terms of these provisions.
(f)Judicial Modification. If any court of competent jurisdiction determines that any of the covenants in Section 4, or any part of them, is invalid or unenforceable, the remainder of such covenants and parts thereof shall not thereby be affected and shall be given full effect, without regard to the invalid portion. If any court of competent jurisdiction determines that any of the covenants in Section 4, or any part of them, is invalid or unenforceable because of the geographic or temporal scope of such provisions, such court shall reduce such scope to the minimum extent necessary to make such covenants valid and enforceable. You agree that in the event that any court of competent jurisdiction finally holds that any provision of Section 4 constitutes an unreasonable restriction against you, such provision shall not be rendered void but shall apply to such extent as such court may judicially determine constitutes a reasonable restriction under the circumstances.
5. Other Terms and Conditions of Employment
If you accept the Company’s offer, our relationship is "employment-at-will." That means you are free, at any time, for any reason, to end your employment with the Company and that the Company may do the same, subject to the advance notice requirements set forth above under Notice of Intent to Terminate Employment and subject to the Good Reason provision below. You hereby represent and warrant that you are not currently, and have never been, the subject of any allegation or complaint of harassment, discrimination, retaliation, or sexual or other misconduct in connection with prior employment or otherwise, and have not been a party to any 
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settlement agreement or nondisclosure agreement relating to such matters (the “Representations”).

For the purposes of this letter, termination for “cause” means a determination by the Company that your employment should be terminated for any of the following reasons: (i) your violation of the Company’s Code of Conduct, employee guides, or any other written policies or procedures of the Company, which is not remedied within 30 days of written notice to you, via email, (ii) your violation of any of the Company’s policies regarding sexual harassment and misconduct, (iii) your indictment, conviction of, or plea of guilty or nolo contendere to, a felony or a crime involving moral turpitude, (iv) your willful or grossly negligent breach of your duties, (v) any act of fraud, embezzlement or other similar dishonest conduct, (vi) any act or omission that the Company determines could have a material adverse effect on the Company, including without limitation, its reputation, business interests or financial condition, (vii) your failure to follow the lawful directives of your supervisor, (viii) your breach of this offer letter or any other written agreement between you and the Company or any of its affiliates, or (ix) your breach of the Representations set forth in this Section 5 above or the Restrictive Covenants set forth in Section 4 above.

You have “Good Reason” to resign your employment upon the occurrence of the following without your consent: (i) material diminution of position and title “Chief Executive Officer and Brand President, Kate Spade,” or comparable role; or (ii) relocation of the Company’s executive offices more than 50 miles outside of New York, New York; provided however, that notwithstanding the foregoing you may not resign your employment for Good Reason unless: (x) you provide the Company with at least 30 days prior written notice of your intent to resign for Good Reason (which notice is provided not later than the 60th day following the occurrence of the event constituting Good Reason) and (y) the Company does not remedy the alleged violation(s) within such 30-day period.
For any dispute arising between the parties regarding or relating to this letter and/or any aspect of your employment, the parties hereby consent to the exclusive jurisdiction in the state and Federal courts located in New York, New York. This Agreement will be construed and enforced in accordance with the laws of the state of New York, without regard to conflicts of laws principles.
Our agreement regarding employment-at-will may not be changed, except specifically in writing signed by both the Chief Executive Officer and you. However, the Company may in its discretion add to, discontinue, or change compensation, duties, reporting lines, Company committees, Section 16 and/or executive officer status, benefits and policies. Nothing in the preceding two sentences shall be construed as diminishing the financial obligations of either of the parties hereunder, including, without limitation, the Company’s obligations to pay salary, bonus, equity compensation, severance etc., pursuant to the pertinent provisions set forth above. All payments made hereunder are subject to the usual withholdings required by law.  In the event of a breach by you of any provision of this offer letter and/or any of the Company policies which are included herewith, you agree to reimburse the Company for any and all reasonable attorney’s fees and expenses related to the enforcement of this agreement, including, but not limited to, the clawback of gains specified hereunder.
Our offer of employment is contingent on the following:
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EXHIBIT 10.33

•Formal ratification of this agreement by the Human Resources Committee;
•Completion of satisfactory references;
•You passing a credit/background check and verification of your identity and authorization to be employed in the United States;

•Your returning a signed copy of this offer letter by January 30, 2020;
•Your agreement to be bound by, and adhere to, all of the Company’s policies in effect during your employment with the Company, including, but not limited to, the Executive Stock Ownership Policy, Incentive Repayment Policy, Code of Conduct, and our Confidentiality, Information Security and Privacy Agreement; and
•The terms and conditions of individual equity award agreements.

Agreed and accepted by:

/s/ Liz Fraser                1/29/20     
Liz Fraser                Date 
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EXHIBIT 10.33

EXHIBIT A
Competitor List
(as of January 2020)
Adidas AG
Burberry Group PLC
Capri Holdings Limited
Cole Haan LLC
Fast Retailing Co., Ltd.
Compagnie Financiere Richemont SA
Fung Group
G-III Apparel Group, Ltd.
The Gap, Inc.
Kering
L Brands, Inc.
LVMH Moet Hennessy Louis Vuitton SA
Nike, Inc.
Prada, S.p.A.
PVH Corp.
Ralph Lauren Corporation
Samsonite International S.A.
Tory Burch LLC
V.F. Corporation
Under Armour, Inc.
Page 12 of #NUM_PAGES#

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