Document:

EX-10.4

 Exhibit 10.4 

WALGREENS BOOTS ALLIANCE, INC. 

EXECUTIVE SEVERANCE AND CHANGE IN CONTROL
PLAN 
 AS AMENDED AND RESTATED EFFECTIVE
DECEMBER 31, 2014 

 TABLE OF CONTENTS 

 

					
	 	 	 	  	 Page

		
	 ARTICLE I Statement of Purpose and Effective Date
	  	1
			
	 1.01
	 	 Purpose
	  	1
	 1.02
	 	 Effective Date
	  	1
		
	 ARTICLE II Definitions
	  	1
			
	 2.01
	 	 “Accrued Annual Incentive”
	  	1
	 2.02
	 	 “Accrued Base Salary”
	  	1
	 2.03
	 	 “Accrued Obligations”
	  	1
	 2.04
	 	 “Affiliate”
	  	1
	 2.05
	 	 “Base Salary”
	  	2
	 2.06
	 	 “Board”
	  	2
	 2.07
	 	 “Cause”
	  	2
	 2.08
	 	 “CEO”
	  	2
	 2.09
	 	 “Change Date”
	  	2
	 2.10
	 	 “Change in Control”
	  	2
	 2.11
	 	 “Code”
	  	3
	 2.12
	 	 “Committee”
	  	4
	 2.13
	 	 “Company”
	  	4
	 2.14
	 	 “Disability”
	  	4
	 2.15
	 	 “Effective Date”
	  	4
	 2.16
	 	 “Employee”
	  	4
	 2.17
	 	 “Employer”
	  	4
	 2.18
	 	 “ERISA”
	  	4
	 2.19
	 	 “Exchange Act”
	  	4
	 2.20
	 	 “Good Reason”
	  	4
	 2.21
	 	 “Including”
	  	5
	 2.22
	 	 “Involuntary Termination”
	  	5
	 2.23
	 	 “Notice of Termination”
	  	5
	 2.24
	 	 “Participant”
	  	5
	 2.25
	 	 “Plan”
	  	5
	 2.26
	 	 “Plans”
	  	5
	 2.27
	 	 “Policies”
	  	5
	 2.28
	 	 “Post-Change Period”
	  	5
	 2.29
	 	 “Pro-rata Annual Incentive”
	  	5
	 2.30
	 	 “Retire” or “Retirement”
	  	6
	 2.31
	 	 “Section 409A Deferred Compensation”
	  	6
	 2.32
	 	 “Severance Multiple” and “Severance Period”
	  	6
	 2.33
	 	 “Target Annual Incentive”
	  	6
	 2.34
	 	 “Termination Date”
	  	7
	 2.35
	 	 “Termination of Employment”
	  	7
	 2.36
	 	 “Tier I Participant”
	  	7
	 2.37
	 	 “Tier II Participant”
	  	7
		
	 ARTICLE III Participation and Eligibility for Benefits
	  	7
			
	 3.01
	 	 Eligibility
	  	7
	 3.02
	 	 Participation
	  	8

  
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	 3.03
	 	 Eligibility for Benefits
	  	8
	 3.04
	 	 Termination of Participation
	  	8
		
	 ARTICLE IV General Obligations of the Employer Upon Involuntary Termination
	  	8
			
	 4.01
	 	 Involuntary Termination
	  	8
	 4.02
	 	 Termination for Any Other Reason
	  	9
		
	 ARTICLE V Obligations of the Employer on Involuntary Termination of Certain Participants in the Post-Change
Period
	  	10
			
	 5.01
	 	 Application
	  	10
	 5.02
	 	 Involuntary Termination in the Post-Change Period
	  	10
	 5.03
	 	 Termination on or After the Change Date for Any Other Reason
	  	10
	 5.04
	 	 Limitation on Benefits
	  	11
		
	 ARTICLE VI Administration
	  	12
			
	 6.01
	 	 The Company and Committee
	  	12
	 6.02
	 	 Delegation of Committee Authority
	  	13
	 6.03
	 	 Advisors and Agents of the Committee
	  	13
	 6.04
	 	 Records and Reports of the Committee
	  	13
	 6.05
	 	 Limitation of Liability; Indemnification
	  	13
	 6.06
	 	 Plan Expenses
	  	13
	 6.07
	 	 Service in More than One Capacity
	  	13
		
	 ARTICLE VII Amendments; Termination
	  	14
			
	 7.01
	 	 Amendment or Termination of the Plan
	  	14
		
	 ARTICLE VIII Claims Procedure
	  	14
			
	 8.01
	 	 Filing a Claim
	  	14
	 8.02
	 	 Review of Claim Denial
	  	14
		
	 ARTICLE IX Release; No Mitigation; No Duplication of Benefits
	  	15
			
	 9.01
	 	 Release Required
	  	15
	 9.02
	 	 No Mitigation
	  	15
	 9.03
	 	 No Duplication of Benefits
	  	15
		
	 ARTICLE X Miscellaneous
	  	15
			
	 10.01
	 	 Participant Information
	  	15
	 10.02
	 	 Electronic Media
	  	15
	 10.03
	 	 Notices
	  	16
	 10.04
	 	 No Employment Contract
	  	16
	 10.05
	 	 Headings
	  	16
	 10.06
	 	 Construction
	  	16
	 10.07
	 	 Joint and Several Liability
	  	16
	 10.08
	 	 Successors
	  	16
	 10.09
	 	 Payments to Beneficiary
	  	16
	 10.10
	 	 Non-Alienation of Benefits
	  	17

  
 - ii - 

					
	 10.11
	 	 Tax Matters
	  	17
	 10.12
	 	 Governing Law
	  	18
	 10.13
	 	 Severability
	  	18

  
 - iii - 

 ARTICLE I 

Statement of Purpose and Effective Date 

1.01 Background. Walgreen Co. (“Walgreens”), an Illinois corporation, previously established the Walgreen Co. Executive
Severance and Change in Control Plan (the “Plan”). On December 31, 2014, a reorganization of Walgreens into a holding company structure (the “Reorganization”) was completed. Pursuant to the Reorganization, Walgreens became a
wholly owned subsidiary of a new Delaware corporation named Walgreens Boots Alliance, Inc. (the “Company”). In connection with the Reorganization, the Plan was assumed by the Company and the Plan is hereby amended and restated as set forth
herein, effective as of December 31, 2014, in order to reflect such assumption. 
 1.02 Purpose. The Plan is intended to
encourage and motivate key employees to devote their full attention to the performance of their assigned duties without the distraction or concerns regarding their involuntary termination of employment. The Company believes that it is in the best
interests of its key employees and the shareholders of the Company to provide financial assistance through severance payments and other benefits to eligible key employees who are involuntarily terminated. Walgreens formerly entered into individual
employment contracts with certain employees providing for change of control and severance benefits for the above purposes. This Plan is intended to consolidate and replace (with the consent of the respective Participants where required) such
individual employment contracts in order to provide uniform administration of change of control and severance benefits. With respect to each Participant, the Plan supersedes all plans, agreements, or other arrangements for severance benefits or for
enhanced severance payments whether or not before, on or after a change in control. To the extent the Plan provides deferred compensation it is an unfunded plan primarily for the purposes of providing deferred compensation for a select group of
management or highly compensated employees. 
 1.03 Effective Date. This Plan became effective as of January 1, 2013 (the
“Effective Date”). 
 ARTICLE II 

Definitions 
 When used in
this Plan, the terms specified below have the following meanings: 
 2.01 “Accrued Annual Incentive” means the amount of
any annual incentive earned in a year ended before the Termination Date, but not yet paid to a Participant as of the Termination Date, other than amounts that he or she has elected to defer or that have been automatically deferred. 

2.02 “Accrued Base Salary” means the amount of a Participant’s Base Salary that is accrued but unpaid as of the
Termination Date, other than amounts that he or she has elected to defer. 
 2.03 “Accrued Obligations” means, as of any
date, the sum of a Participant’s Accrued Base Salary, Accrued Annual Incentive, any accrued but unpaid vacation pay, unreimbursed expenses for which proper documentation is provided, and any other vested amounts and benefits that are to be paid
or provided to the Participant by the Company under the Company’s plans (other than this Plan and other than any Section 409A Deferred Compensation), but which have not yet been paid or provided (as applicable). 

2.04 “Affiliate” means any person with whom the Company would be considered a single employer under Sections 414(b) and
414(c) of the Code and Treas. Reg. §1.409A-3(i)(5)(ii), except that in applying Sections 1563(a)(1), (2), and (3) of the Code for purposes of determining a 

  
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controlled group of corporations under Section 414(b) of the Code; the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it
appears in Sections 1563(a)(1), (2), and (3) of the Code, and in applying Treas. Reg. § 1.414(c)-(2) for purposes of determining a controlled group of trades or businesses under Section 414(c) of the Code, the language “at
least 50 percent” shall be used instead of “at least 80 percent” in each place it appears in Treas. Reg. § 1.414(c)-(2). Notwithstanding the foregoing, where justified by legitimate business criteria as determined by the
Committee in its sole discretion, “at least 20 percent” shall be substituted for “at least 50 percent” in the preceding sentence in determining whether a Participant has a Termination of Employment. 

2.05 “Base Salary” means an Employee’s annual rate of salary as of any date. 

2.06 “Board” means the Board of Directors of the Company or, from and after the of a Change in Control that gives rise to a
surviving corporation to the Company, the Board of Directors of such surviving corporation. 
 2.07 “Cause” means any one
or more of the following, as determined by the Committee or its delegate in its sole discretion: 
 (a) a Participant’s
commission of a felony or any crime of moral turpitude; 
 (b) a Participant’s dishonesty or material violation of
standards of integrity in the course of fulfilling his or her employment duties to the Company or any Affiliate; 
 (c) a
material violation of a material written policy of the Company or any Affiliate, violation of which would be grounds for immediate dismissal under applicable Company policy; 

(d) willful and deliberate failure on the part of the Participant to perform his or her employment duties to the Company or any
Affiliate in any material respect, after reasonable notice of such failure and an opportunity to correct it; or 
 (e)
failure to comply in any material respect with the Foreign Corrupt Practices Act, the securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010,
or the Truth in Negotiations Act, or any rules or regulations thereunder. 
 2.08 “CEO” means the Chief Executive Officer
of the Company. 
 2.09 “Change Date” means the first date on which a Change in Control occurs before the termination of
the Plan. 
 2.10 “Change in Control” means an event an event that meets the conditions for a “change in the ownership
of a corporation” (within the meaning of Section 409A of the Code and Treas. Reg. §1.409A-3(i)(5)(v)), a “change in the effective control of a corporation” (within the meaning of Section 409A of the Code and Treas. Reg.
§1.409A-3(i)(5)(vi)(A)) or a “change in the ownership of a substantial portion of a corporation’s assets” (within the meaning of Section 409A and Treas. Reg. §1.409A-3(i)(5)(vii)) through being one or more of the
following: 
 (a) any one person, or more than one person acting as a group other than an employee benefit plan (or related
trust) of the Company or the Company or a subsidiary (collectively “Excluded Persons”), acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of
the total fair market value or total voting power of the stock of the Company; 

  
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 (b) any one person, or more than one person acting as a group (other than any
Excluded Person), acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company that, constitutes thirty percent (30%) or more of the
total fair market value or total voting power of the stock of the Company; or 
 (c) any one person, or more than one person
acting as a group, (other than any Excluded Person) acquires (or has acquired during the twelve (12)-month period ending on date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market
value equal to or more than forty percent (40%) of the total gross fair market value of all the assets of the Company immediately before such acquisition or acquisitions; or 

(d) a majority of members of the Company’s Board is replaced during any twelve (12)-month period by Directors whose
appointment or election is not endorsed by a majority of the members of the Company’s Board before the date of the appointment or election. 

Notwithstanding subsections (a) through (d), there shall not be a Change in Control if any of the foregoing events occurs, and
immediately following such event: (1) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the outstanding common stock $0.01 par value of the Company and any other equity securities of the
Company that may be substituted or resubstituted for such stock (“Common Stock”) and outstanding Company voting securities immediately prior to such corporate transaction will beneficially own, directly or indirectly, more than fifty
percent (50%) of, respectively, the outstanding shares of Common Stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such event (including, without limitation, a corporation which as a result of such event owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such event, of the outstanding Company Common Stock and outstanding Company voting securities, as the case may be; (2) no person (other than an Excluded Person or such corporation
resulting from such event) will beneficially own, directly or indirectly, thirty percent (30%) or more of, respectively, the outstanding shares of common stock of the corporation resulting from such event or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in the election of directors, except to the extent that such ownership existed prior to the event; and (3) individuals who were members of the incumbent Board at the
time of the Board’s approval of the execution of the initial agreement providing for such corporate transaction will constitute at least a majority of the members of the board of directors of the corporation resulting from such corporate
transaction. 
 Notwithstanding the foregoing provisions of this Section 2.10, with respect to the payment of any deferred compensation that is subject
to Section 409A of the Code with respect to any individual who was a Participant prior to January 8, 2014, no amendment to the definition of Change of Control shall have effect to the extent it would cause such Participant to become
subject to taxes or penalties under Section 409A of the Code. 
 2.11 “Code” means the Internal Revenue Code of 1986,
as amended. Reference to any provision of the Code or regulation thereunder, shall include any successor provision and any regulations and other applicable guidance or pronouncement of the Internal Revenue Service or the Department of the Treasury,
and applicable case law relating to such Section of the Code. 

  
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 2.12 “Committee” means the Compensation Committee of the Board. To the extent
the Committee has delegated authority to another person or persons the term “Committee” shall refer to such other person or persons. 

2.13 “Company” means Walgreens Boots Alliance, Inc. and any successor thereto. 

2.14 “Disability” means any medically determinable physical or mental impairment of a Participant that: 

(i) has lasted for a continuous period of not less than (x) six months or (y) such longer period, if any, that is
available to a Participant under his Employer’s Policies relating to the continuation of employee status after the onset of disability, 

(ii) can be expected to be permanent or of indefinite duration, and 

(iii) renders the Participant unable to perform his duties with or without accommodation. 

2.15 “Effective Date” is defined in Section 1.02. 

2.16 “Employee” means an individual who is designated as an employee of an Employer on the records of such Employer. 

2.17 “Employer” means the Company and an Affiliate any of whose Employees are Participants in the Plan. The term
“Employer” includes any successor to the Company or an Employer. 
 2.18 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. Reference to any provision of ERISA shall also include any successor provision and regulations and others applicable guidance or pronouncement of a federal regulatory agency and applicable case law relating
to such Section of ERISA. 
 2.19 “Exchange Act” means the Securities Exchange Act of 1934. 

2.20 “Good Reason” means any one or more of the following actions or omissions occurring during the Post-Change Period and
for which Notice of Termination is given during the Post-Change Period: 
 (i) a material reduction in the Participant’s
base compensation; 
 (ii) requiring the Participant to be based at any office or location more than 50 miles from the
pre-Change Date location and also farther from the Participant’s residence than the pre-Change Date location; 
 (iii)
any material diminution in the Participant’s authority, duties or responsibilities; 
 (iv) any material breach of this
Plan by any Employer or the Committee; 
 provided that, in order for there to be a Termination of Employment by a Participant for Good Reason, the
Participant must notify the Participant’s Employer of the event constituting such Good Reason within 90 days of the occurrence of such event, by a Notice of Termination. The Employer must have failed to cure the event constituting Good Reason
within 30 days following receipt of the 

  
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Notice of Termination and the Participant must terminate employment within five days after the lapse of the cure period if no cure is effected. A delay in the delivery of such Notice of
Termination or in the Termination of Employment after the lapse of the cure period shall waive the right of the Participant under this Plan to terminate employment for Good Reason. 

2.21 “Including” means including without limitation. 

2.22 “Involuntary Termination” means the Termination of Employment of a Participant (a) initiated by the Employer other
than for Cause or Disability, and (b) for a reason other than death. During the Post-Change Period, a Termination of Employment initiated by the Participant for Good Reason shall also be an Involuntary Termination. For avoidance of doubt, a
Participant shall not have an Involuntary Termination of Employment if he or she (i) voluntarily resigns; (ii) voluntarily Retires; (iii) has a Termination of Employment because of death or Disability; or (iv) on or before the
Termination of Employment (other than a Termination of Employment during the Post-Change Period), is offered employment or re-employment with the Company or an Affiliate or any successor to all or a portion of the business of the Company or
Affiliate on terms and conditions substantially similar to the terms and conditions of his or her employment before his or her Termination of Employment. 

2.23 “Notice of Termination” means a written notice given in accordance with Section 10.03 that sets forth (i) the
specific termination provision in this Plan relied on by the party giving such notice, (ii) in reasonable detail the specific facts and circumstances claimed to provide a basis for such Termination of Employment, and (iii) if the
Termination Date is other than the date of receipt of such Notice of Termination (and is not determined under Section 2.33(a), (b), or (c)), the Termination Date. 

2.24 “Participant” means an Employee who is selected to participate in the Plan and whose participation has not been
terminated pursuant to Section 3.04. 
 2.25 “Plan” means this Walgreens Boots Alliance, Inc. Executive Severance and
Change in Control Plan (formerly the Walgreen Co. Executive Severance and Change in Control Plan) as set forth herein and as from time to time amended. 

2.26 “Plans” means plans, programs, or Policies of the Company or the Employer that employs a Participant. 

2.27 “Policies” means policies, practices or procedures of the Company or the Employer that employs a Participant. 

2.28 “Post-Change Period” means the period beginning on the Change Date and ending on the first anniversary of the Change
Date. 
 2.29 “Pro-rata Annual Incentive” means, in respect of an Employer’s fiscal year during which the Termination
Date occurs, an amount equal to the product of (a) (i) in the case of a Termination Date before the Change Date, the actual annual incentive the Participant would have been paid if he or she remained employed on the payment date applicable
to then-current employees, and (ii) in the case of a Termination Date on or after the Change Date or in situations where calculation of the Participant’s actual annual incentive is impracticable, the Participant’s Target Annual
Incentive (determined as of the Termination Date) multiplied by (b) a fraction, the numerator of which equals the number of days from and including the first day of such fiscal year through and including the Termination Date, and the
denominator of which equals 365. 

  
 A-5 

 2.30 “Retire” or “Retirement” means a voluntary Termination of
Employment after attaining age 55 and having at least 10 years of service with the Company or any Employer. 
 2.31 “Section
409A Deferred Compensation” means a deferral of compensation that is subject to (and not otherwise exempt from) the requirements of Section 409A of the Code. 

2.32 “Severance Multiple” and “Severance Period” mean: 

(a) for a Tier I Participant, for a Termination Date occurring before the Change Date or after the Post-Change Period, and for
a Tier II Participant, for a Termination Date occurring before, on or after the Change Date: 
  

					
	 Title/Benefit Indicator
	  	 Severance Multiple
	  	 Severance Period

	CEO	  	2.0x	  	24 months
	COO, EVP	  	2.0x	  	24 months
	SVP	  	1.0x	  	12 months
	Corporate VP	  	1.0x	  	12 months
	Group VP, “grandfathered” MVP	  	0.5x	  	6 months
	Divisional VPs (DVPs)	  	0.5x	  	6 months
	Non-DVP directors in Benefit Indicator 516	  	0.5x	  	6 months

 (b) for a Tier I Participant, for a Termination Date occurring during the Post-Change Period:

  

					
	 Title/Benefit Indicator
	  	 Severance Multiple
	  	 Severance Period

	CEO	  	2.5x	  	30 months
	COO, EVP,	  	2.5x	  	30 months
	SVP	  	2.5x	  	30 months
	Corporate VP	  	2.0x	  	24 months
	Group VP, “grandfathered” MVP	  	2.0x	  	24 months
	Divisional VPs (DVPs)	  	2.0x	  	24 months
	Non-DVP directors in Benefit Indicator 516	  	1.0x	  	12 months

 (c) Notwithstanding the foregoing, if on the Termination Date the Company maintains generally
applicable severance arrangements for a broad-based group of employees below benefit indicator level 516 with a formula that would provide severance benefits to an Participant in a greater amount than results from the application of the Severance
Multiple shown above, the Severance Multiple (and Severance Period) shall be adjusted upward as necessary so that the amount paid to such Participant is not less than the amount that would be paid under such generally applicable severance
arrangement. Such adjusted amount shall be paid at the time and in the form of payment in Section 4.01(a)(iii). 
 2.33 “Target
Annual Incentive”, as of any date, means the amount equal to the product of a Participant’s Base Salary multiplied by the percentage of such Base Salary to which such Participant would be entitled as an annual incentive, based on the
terms in effect on such date under any annual incentive plans for the performance period for which the annual incentive is awarded if the performance goals established pursuant to such bonus plan were achieved at the 100% (target) level as of the
end of the performance period, but disregarding any reduction in Target Annual Incentive that would constitute Good Reason. 

  
 A-6 

 2.34 “Termination Date” means the date of the receipt of the Notice of
Termination by a Participant (if such Notice of Termination is given by the Company or the Participant’s Employer) or by the Participant’s Employer (if such Notice is given by the Participant), or any later date specified in the Notice of
Termination but not more than 35 days after the giving of such Notice if the Notice of Termination is given by the Participant for Good Reason and not more than 15 days after the giving of such Notice of Termination in all other cases, on which an
Employee has a Termination of Employment; provided, however, that: 
 (a) if the Participant’s employment is terminated
by reason of death, the Termination Date shall be the date of the Participant’s death; 
 (b) If the Participant’s
employment is terminated by reason of Disability, the Termination Date shall be the date of Disability terminations of employment regularly applied by the Company’s Human Resource function to terminations of employment for Disability; which as
of the Effective Date is one year after the onset of the condition causing the Disability; 
 (c) if no Notice of Termination
is given, the Termination Date shall be the last date on which the Participant is at work; and 
 (d) if the Notice of
Termination is for a Termination by the Participant for Good Reason, the Termination Date shall be the 35th day after the giving of the Notice of Termination if the Employer has not cured the
Good Reason. 
 2.35 “Termination of Employment” means in respect of a Participant, a termination of employment as
determined by the Committee; provided, however, that with respect to payment of any Section 409A Deferred Compensation, “Termination of Employment” shall mean “separation from service” within the meaning of Section 409A
of the Code. 
 2.36 “Tier I Participant” means, unless otherwise designated by the Committee before the Change Date, a
Participant who, on the Termination Date, is classified in a band more senior than the direction band under the employment level categories regularly applied by the Company’s Human Resource function (but disregarding any reduction to a lower
employment level category after the Change Date that would constitute Good Reason). 
 2.37 “Tier II Participant” means,
unless otherwise designated by the Committee, a Participant who, on the Termination Date, is classified in the direction band under the employment level categories regularly applied by the Company’s Human Resource function. 

ARTICLE III 

Participation and Eligibility for Benefits 

3.01 Eligibility. 

(a) An employee is eligible for participation in this Plan if the Employee is in benefit indicator level 516 or above (as
determined under the customary practices of the Company’s Human Resource function), provided that the Committee may determine in its discretion that an Employee at benefit indicator level 516 or above shall not be eligible to participate in
this Plan. The Committee in its discretion may designate selected Employees with a benefit indicator lower than 516 to be eligible to participate in this Plan by written notice to such Employee. 

  
 A-7 

 (b) Notwithstanding subsection (a), any individual who is (i) a party to an
agreement (“Change in Control Employment Agreement”) between the individual and an Employer that provides for payments upon Termination of Employment (either before or after a Change in Control) or (ii) entitled to Section 409A
Deferred Compensation paid in installments as severance after a Change in Control pursuant to a broad-based severance plan; shall not be eligible to become a Participant until the next January 1 after he or she ceases to be covered by such
Change in Control Employment Agreement or severance plan. Where Employee consent is required to terminate a Change in Control Employment Agreement, such consent shall be given (if at all) at such time and under such circumstances as the Committee
may require in its discretion. 
 (c) The Committee shall maintain a list of Participants, as in effect from time to time.

 (d) To become a Participant, an individual who has ever received a grant of restricted stock units or is otherwise
required to agree to be subject to restrictive covenants shall agree to restrictive covenants in such form as the Company may require, whether or not the individual becomes eligible for benefits under Article IV or Article V. 

3.02 Participation. Except as provided in Section 3.01(b), each eligible Employee shall become Participant in the Plan on the
first date (not earlier than the Effective Date) on which he or she is an eligible Employee described in Section 3.01 and has signed an acknowledgement of coverage under this Plan and, if applicable, any restrictive covenants. 

3.03 Eligibility for Benefits A Participant becomes eligible for benefits under the Plan if the Participant has an Involuntary
Termination. A Tier I Participant also becomes eligible for benefits under the Plan if the Participant has a Termination of Employment for Good Reason within one year after the Change Date. 

3.04 Termination of Participation. If before the Termination Date a Participant is demoted below the level of benefit
indicator 516 (disregarding in the case of a Tier I Participant any demotion after the Change Date that would constitute Good Reason), such Participant shall thereupon cease to be a Participant as of the date of demotion. If upon Termination of
Employment the Participant has not become eligible for a benefit under Article IV, his or her status as a Participant shall cease upon the Termination Date. Any determination as to a termination of Participation under this Section 3.04 shall be
made by the Committee (or by the independent members of the Board upon the recommendation of the Committee in the case of a determination regarding the CEO). 

ARTICLE IV 
 General
Obligations of the Employer Upon Involuntary Termination 
 4.01 Involuntary Termination. If a Participant has an Involuntary
Termination, then unless Article V applies, the Employer’s sole obligations to such Participant under the Plan shall be as follows: 

(a) The Employer shall pay the Participant the following: 

(i) all Accrued Obligations; 

(ii) subject to Section 9.01, the Participant’s Pro-rata Annual Incentive, reduced (but not below zero) by the amount
of any Annual Incentive paid to the Participant with respect to the Employer’s fiscal year during which the Termination Date occurs (for example, if the Annual Incentive is paid quarterly); the Pro-rata

  
 A-8 

 
Annual Incentive shall be paid at the same time and in the same form as the Annual Incentives for such fiscal year are paid to ongoing employees; but no later than two and one-half months after
the last day of the fiscal year following the fiscal year in which the Termination Date occurs; 
 (iii) subject to
Section 9.01, an amount equal to the sum of Base Salary and the Target Annual Incentive, each determined as of the Termination Date, multiplied by the applicable Severance Multiple (the “Severance Payment”). The Severance
Payment shall be paid in the form of salary continuation unless the Notice of Termination is given in the Post-Change Period, in which event the Severance Payment shall be paid in a single lump sum. The Severance Payment shall begin (or be made) no
more than sixty days after the Termination Date, provided the applicable revocation period for the release required by Section 9.01 has expired at that time, and subject to Section 10.11(c) and Section 10.11(e). Severance Payments in
the form of salary continuation payments shall be made in accordance with the Employer’s regular payroll schedule beginning with the first regularly scheduled payroll date after the Termination Date; provided, however, that any Severance
Payment or Payments (whether in the form of salary continuation or in a lump sum) that is or are delayed as required by Section 10.11(c) or Section 10.11(e) or to allow for the lapse of the applicable revocation period for the release
required by Section 9.01 shall be cumulated without interest and paid on the first date on which payment is permitted under by Section 10.11(c) or Section 10.11(e) or after lapse of the applicable revocation period required by
Section 9.01. The amount of each salary continuation payment shall be determined by dividing the Severance Payment by the number of regularly scheduled payroll periods in the Severance Period (determined without regard to any delays required by
Section 10.11(c) or Section 10.11(e) or the applicable revocation period under Section 9.01. 
 (b) The
Employer shall provide for Post-Termination of Employment nonqualified deferred compensation benefits, equity awards, and employee welfare benefits pursuant to the terms of the respective Plans and Policies under which such post-Termination of
Employment benefits, awards and welfare benefits, if any, are provided, except as provided in (c) below. 
 (c) Subject
to Section 9.01, if the Participant timely elects post-termination continuation coverage under Section 4980 of the Code (“COBRA”) with respect to medical, vision, prescription and/or dental coverage, then the Employer
shall reimburse the Participant (or pay the provider directly) for the premiums for such COBRA coverage for the Participant and his or her eligible dependents during the applicable Severance Period to the extent such premiums exceed the premiums
payable for similar employer-provided coverage by active employees. There shall be no reimbursement (or direct payment) of such premiums by the Employer for any COBRA coverage extending beyond the end of the Severance Period. Notwithstanding the
forgoing, such reimbursement (or direct payment) shall cease if the Participant becomes eligible for medical, vision, prescription or dental coverage, respectively, from a subsequent employer, or for Medicare. 

4.02 Termination for Any Other Reason. If a Participant has a Termination of Employment for any reason other than as described in
Section 4.01 (including termination by the Employer for Cause, termination by the Employee whether or not for Good Reason, termination by the Employer or the Employee for Disability, Retirement, or termination on account of death), then unless
Article V applies, the Employer’s sole obligations to such Participant under the Plan shall be to pay the Participant all Accrued Obligations determined as of the Termination Date. 

  
 A-9 

 ARTICLE V 

Obligations of the Employer on Involuntary Termination of 

Certain Participants in the Post-Change Period 

5.01 Application. During the Post-Change Period a Tier I Participant shall be entitled to benefits under this Article V in lieu of
benefits under Article IV. 
 5.02 Involuntary Termination in the Post-Change Period. If a Tier I Participant has an Involuntary
Termination (including a Termination of Employment for Good Reason) for which a Notice of Termination is given during the Post-Change Period, then the Employer’s sole obligations to such Participant under the Plan shall be as follows: 

(a) The Employer shall pay the Participant the following in a single lump sum: 

(i) all Accrued Obligations; 

(ii) subject to Section 9.01, the Participant’s Pro-rata Annual Incentive, reduced (but not below zero) by the amount
of any Annual Incentive paid to the Participant with respect to the Employer’s fiscal year during which the Termination Date occurs (for example, if the Annual Incentive is paid quarterly); 

(iii) subject to Section 9.01, an amount equal to the sum of Base Salary and the Target Annual Incentive, each determined
as of the Termination Date, multiplied by the applicable Severance Multiple (“Post-Change Severance Payment”); provided, however, that any reduction in the Participant’s Base Salary or Target annual incentive that would qualify
as Good Reason shall be disregarded for this purpose. 
 The amount described in Section 5.01(a)(ii) and the Post-Change Severance
Payment shall be paid no more than sixty days after the Termination Date, provided the applicable revocation period required for the release under Section 9.01 has expired at that time; and subject to Section 10.11(c) and
Section 10.11(e). 
 (b) Post-Termination of Employment non-qualified deferred compensation benefits, equity awards, and
employee welfare benefits shall be provided pursuant to the terms of the respective Plans and Policies under which such post-Termination of Employment benefits, awards and welfare benefits, if any, are provided, except as provided in (c) below.

 (c) Subject to Section 9.01, if the Participant timely elects post-termination continuation coverage under
Section 4980 of the Code (“COBRA”) with respect to medical, vision, prescription and/or dental coverage, then the Employer shall reimburse the Participant (or pay the provider directly) for the premiums for such COBRA coverage for the
Participant and his or her eligible dependents during the applicable Severance Period to the extent such premiums exceed the premiums payable for similar employer-provided coverage by active employees. There shall be no reimbursement (or direct
payment) of such premiums by the Employer for any COBRA coverage extending beyond the end of the Severance Period. Notwithstanding the forgoing, such reimbursement (or direct payment) shall cease if the Participant becomes eligible for medical,
vision, prescription or dental coverage, respectively, from a subsequent employer, or for Medicare. 
 5.03 Termination on or After the
Change Date for Any Other Reason. If a Participant has a Termination of Employment for which a Notice of Termination is given during the Post-Change 

  
 A-10 

 
Period, for any reason other than as described in Section 5.02 (including termination by the Employer for Cause, termination by the Employee other than for Good Reason, termination by the
Employer or the Employee for Disability, Retirement, or termination on account of death), then the Employer’s sole obligation to the Participant under this Plan shall be to pay the Participant all Accrued Obligations determined as of the
Termination Date. 
 5.04 Limitation on Benefits. 

(a) In the event it shall be determined that any payment or distribution by an Employer to or for the benefit of the
Participant (whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise) (a “Payment”) would be nondeductible by the Employer for Federal income tax purposes because of Section 280G of the
Code, then the aggregate present value of amounts payable or distributable to or for the benefit of the Participant pursuant to this Plan (“Plan Payments”) shall be reduced to the Reduced Amount. The “Reduced Amount” shall be an
amount expressed in present value which maximizes the aggregate present value of Plan Payments without causing any Payment to be nondeductible by the Employer because of Section 280G of the Code. Such reduction shall be applied before any
reduction of any other payments that are not Plan Payments unless the plan or agreement calling for such payments expressly provides to the contrary making specific reference to this Plan. Anything to the contrary notwithstanding, if the Reduced
Amount under the Plan is zero and it is determined further that any Payment that is not a Plan Payment would nevertheless be nondeductible by the Employer for Federal income tax purposes because of Section 280G of the Code, then the aggregate
present value of Payments which are not Plan Payments shall also be reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value of Payments without causing any Payment to be nondeductible by the
Employer because of Section 280G of the Code. For purposes of this Section, present value shall be determined in accordance with Section 280G(d)(4) of the Code. 

(b) The Committee shall select a firm of certified public accountants of national standing, (the “Accounting Firm”),
which may be the firm regularly auditing the financial statements of the Company or the Employer. The Accounting Firm shall make all determinations required to be made under this Section and shall provide detailed supporting calculations to the
Company, the Employer and the Employee within 30 days after the Termination Date or such earlier time as is requested by the Company, and provide an opinion to the Participant that he or she has substantial authority not to report any Excise Tax on
his or her Federal income tax return with respect to any Payments. Any such determination by the Accounting Firm shall be binding upon the Company, the Employer and the Participant. The Accounting Firm shall determine which and how much of the Plan
Payment or Payments, as the case may be, shall be eliminated or reduced consistent with the requirements of this Section, provided that, if the Accounting Firm does not make such determination within 30 days after the Termination Date the Company
shall elect which and how much of the Plan Payment or Payments, as the case may be, shall be eliminated or reduced consistent with the requirements of this Section and shall notify the Participant promptly of such election. Within five business days
thereafter, the Employer shall pay to or distribute to or for the benefit of the Participant such amounts as are then due to the Participant under this Plan. 

(c) As a result of the uncertainty in the application of Section 280G of the Code at the time of the initial determination
by the Accounting Firm or the Company hereunder, it is possible that Plan Payments or Payments, as the case may be, will have been made by the Employer which should not have been made (“Overpayment”) or that additional Plan Payments or
Payments, as the case may be, which will not have been made by the 

  
 A-11 

 
Employer could not have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. In the event that the Accounting Firm, based upon the
assertion of a deficiency by the Internal Revenue Service against the Employee which the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, promptly on notice and demand the Participant shall
repay to the Employer any such Overpayment paid or distributed by the Employer to or for the benefit of the Participant together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code; provided, however,
that no such amount shall be payable by the Participant to the Employer if and to the extent such payment would not either reduce the amount on which the Participant is subject to tax under Section 1 and Section 4999 of the Code or
generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Employer to or
for the benefit of the Participant together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. 

ARTICLE VI 

Administration 
 6.01
The Company and Committee. 
 (a) The Company shall have overall responsibility for the establishment, amendment and
termination of the Plan. In carrying out its responsibilities hereunder, the Company shall act through the Committee (except with respect to the CEO, with respect to whom the Company shall act through the independent members of the Board). The
Committee shall have, in its discretion, the responsibilities, duties, powers and authority, assigned to it in this Plan and any responsibilities, duties, powers and authority, under this Plan that are not specifically delegated to anyone else,
including the following: 
 (i) to determine which individuals shall be selected as Tier I Participants, and Tier II
Participants. 
 (ii) to decide on questions concerning the Plan and the eligibility of any Participant to participate in the
Plan, including whether the Participant should remain (or become) a Participant; 
 (iii) to determine the nature and timing
of any Termination of Employment or the existence of Good Reason; 
 (iv) subject to any limitations under the Plan or
applicable law, to make and enforce such rules and regulations and prescribe the use of such forms as it shall deem necessary for the efficient administration of the Plan; 

(v) to require any person to furnish such information as it may request as a condition to receiving any benefit under the Plan;

 (vi) to compute or have computed the amount of benefits that shall be payable to any person in accordance with the
provisions of the Plan; 
 (vii) to construe and interpret the Plan and correct defects, supply omissions and reconcile
inconsistencies in the Plan; 
 (viii) to make all other decisions and determinations (including factual determinations) as
the Committee may deem necessary or advisable in carrying out its duties and responsibilities or exercising its powers; 

  
 A-12 

 provided that if the CEO is a Participant, such duties, responsibilities and powers shall be
exercised with respect to him or her by the independent members of the Board. Decisions of the Committee (or the independent members of the Board with respect to the CEO) shall be final, conclusive and binding on all persons interested in the Plan,
including Participants, beneficiaries and other persons claiming rights from or through a Participant. 
 6.02 Delegation of
Committee Authority. The Committee may delegate to officers or employees of the Company, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such administrative functions and exercise such
administrative powers and authority, as the Committee in its discretion may determine. Such delegation may be revoked at any time. 

6.03 Advisors and Agents of the Committee. The Committee may (i) authorize one or more of its members or an agent to
execute or deliver any instrument, and make any payment on its behalf and (ii) utilize and cause the Company to pay for the services of associates and engage accountants, agents, clerks, legal counsel, record keepers and professional
consultants (any of whom may also be serving an Employer or another Affiliate of the Company) to assist in the administration of this Plan or to render advice with regard to any responsibility under this Plan. 

6.04 Records and Reports of the Committee. The Committee or its delegate shall maintain records and accounts relating to the
administration of the Plan. 
 6.05 Limitation of Liability; Indemnification. The members of the Board and the Committee shall
have no liability with respect to any action or omission made by them in good faith nor from any action made in reliance on (i) the advice or opinion of any accountant, legal counsel, medical adviser or other professional consultant or
(ii) any resolutions of the Board certified by the secretary or assistant secretary of the Company. Each member of the Board, the Committee, and each employee to whom are delegated duties, responsibilities and authority with respect to the Plan
shall be indemnified, defended, and held harmless by the Company and the Employers and their respective successors against all claims, liabilities, fines and penalties and all expenses (including but not limited to attorneys fees) reasonably
incurred by or imposed on such member or Participant that arise as a result of his actions or failure to act in connection with the operation and administration of the Plan, to the extent lawfully allowable and to the extent that such claim,
liability, fine, penalty or expense is not paid for by liability insurance purchased by or paid for by the Company or an Employer. Notwithstanding the foregoing, the Company or an Employer shall not indemnify any person for any such amount incurred
through any settlement or compromise of any action unless the Company or an Employer consent in writing to such settlement or compromise. 

6.06 Plan Expenses. Expenses relating to the Plan before its termination shall be paid from the general assets of the Company or
an Employer. Any individual who serves as a member of the Committee shall receive no additional compensation for such service. 

6.07 Service in More than One Capacity. Any person or group of persons may serve the Plan in more than one capacity. 

  
 A-13 

 ARTICLE VII 

Amendments; Termination 

7.01 Amendment or Termination of the Plan. The Company by duly adopted resolution of the Board shall have the sole right to
alter, amend or terminate this Plan in whole or in part at any time and to terminate the participation of any Employee; provided, however, that: 

(i) any such adverse amendment or termination shall be effective only as to those Participants, if any, who have consented to
such amendment or termination or who have received from the Company at least 12 months’ prior written notice (“Amendment Notice” or “Expiration Notice,” respectively) of such adverse amendment or termination
that sets forth the date of termination or amendment (“Amendment Date” or “Expiration Date”), and 

(ii) no such Amendment Notice or Expiration Notice shall be effective as to any Participant if a Change Date occurs before the
Amendment or Expiration Date specified in the Amendment Notice or Expiration Notice. 
 Any purported Plan termination or amendment in violation of this
Section 7.01 shall be void and of no effect. 
 ARTICLE VIII 

Claims Procedure 

8.01 Filing a Claim. 

(a) No claim shall be required for benefit due under the Plan. Any individual eligible for benefits under this Plan who
believes he or she is entitled to additional benefits or who desires to clarify his or her right to future benefits under the Plan (“Claimant”) may submit his application for benefits (“Claim”) to the Committee (or
to such other person or persons as may be designated by the Committee) in writing in such form as is provided or approved by the Committee. 

(b) When a Claim has been filed properly, it shall be evaluated and the Claimant shall be notified of the approval or the
denial of the Claim within 90 days after the receipt of such Claim. A Claimant shall be given a written notice in which the Claimant shall be advised as to whether the Claim is granted or denied, in whole or in part. If a Claim is denied, in whole
or in part, the notice shall contain (i) the specific reasons for the denial, (ii) references to pertinent provisions of this Plan on which the denial is based, (iii) a description of any additional material or information necessary
to perfect the Claim and an explanation of why such material or information is necessary, and (iv) the Claimant’s right to seek review of the denial. 

8.02 Review of Claim Denial. If a Claim is denied, in whole or in part, or if a Claim is neither approved nor denied within the
90-day period specified Section 8.01(b), the Claimant shall have the right, within 60 days after receipt of such denial (or after such claim to deemed denied), (i) request that the Committee (or such other person or persons as shall be
designated in writing by the Committee) review the denial or the failure to approve or deny the Claim, (ii) review pertinent documents, and (iii) submit issues and comments in writing. Within 60 days after a such request is received, the
Committee shall complete its review and give the Claimant written notice of its decision. The Committee shall include in its notice to Claimant the specific reasons for its decision and references to provisions of this Plan on which its decision is
based. A Claimant shall have no right to seek review of a denial or benefits, or to bring any action in any court to enforce a Claim, before to his filing a Claim and exhausting his rights to review under Sections 8.01 and 8.02. 

  
 A-14 

 ARTICLE IX Release; No Mitigation; No Duplication of Benefits 

9.01 Release Required. Any and all amounts payable and benefits or additional rights provided pursuant to this Plan other than
the Accrued Obligations and amounts provided under Section 4.01(b) shall only be payable if the Participant (or Participant’s beneficiary in the event of Participant’s death) timely delivers to the Employer and does not revoke a
general waiver and release of claims in favor of the Company and related parties (“Company Parties”) in such form and with such terms and conditions as are reasonably acceptable to the Company, and the revocation period related to such
general waiver and release has expired. Such general waiver and release shall be executed and delivered (and the revocation period related thereto, if any, shall have lapsed without revocation having been made) within sixty (60) days following
the Termination Date. 
 9.02 No Mitigation. No Participant shall have any duty to mitigate the amounts payable under
this Plan by seeking or accepting new employment or self-employment following termination. Except as specifically otherwise provided in this Plan, all amounts payable pursuant to this Plan shall be paid without reduction regardless of any amounts of
salary, compensation or other amounts that may be paid or payable to the Participant as the result of the Participant’s employment by another employer or self-employment. 

9.03 No Duplication of Benefits. Subject to Section 10.11(f), to the extent that a Participant shall have received
severance payments or other severance benefits under any other Plan or agreement of the Company before receiving severance payments or other severance benefits pursuant to Article IV or Article V, the severance payments or other severance benefits
under such other Plan or agreement shall reduce (but not below zero) the corresponding severance payments or other severance benefits to which such Participant shall be entitled under Article IV or Article V. To the extent that a Participant accepts
payments made pursuant to Article IV or Article V, he shall be deemed to have waived his right to receive a corresponding amount of future severance payments or other severance benefits under any other Plan or agreement of the Company. Payments and
benefits provided under the Plan shall be in lieu of any termination or severance payments or benefits for which the Participant may be eligible under any of the Plans or Policy of the Company or an Affiliate or under the Worker Adjustment
Retraining Notification Act of 1988 or any similar statute or regulation. 
 ARTICLE X 

Miscellaneous 

10.01 Participant Information. Each Participant shall notify the Committee of his home address and each change of home address.
Each Participant shall also furnish the Committee with any other information and data that the Committee considers necessary for the proper administration of the Plan. The information provided by the Participant under this Section shall be binding
on the Participant, his dependents and any beneficiary for all purposes of the Plan and the Committee shall be entitled to rely on any representations regarding personal facts made by a Participant, his dependents or beneficiary, unless such
representations are known to be false. 
 10.02 Electronic Media. Under procedures authorized or approved by the
Committee, any form for any notice, election, designation, or similar communication required or permitted to be given to or received from a Participant under this Plan may be communicated or made available to the Company or Participant in an
electronic medium (including computer network, e-mail or voice response system) and any such communication to or from a Participant or Beneficiary through such electronic media shall be fully effective under this Plan for such purposes as such
procedures shall prescribe. Any record of such communication retrieved from such electronic medium under its normal storage and retrieval parameters shall be effective as a fully authentic executed writing for all purposes of this Plan absent
manifest error in the storage or retrieval process. 

  
 A-15 

 10.03 Notices. All notices and other communications under this Plan shall be in
writing and delivered by hand, by nationally recognized delivery service that promises overnight delivery, or by first-class registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

If to Participant, at his most recent home address on 

file with the Company. 
 If to
the Company or any other Employer, 
 Walgreens Boots Alliance, Inc. 

108 Wilmot Road 
 Deerfield,
Illinois 60015 
 Attn.: General Counsel 
 or
to such other address as either party shall have furnished to the other in writing. Notice and communications shall be effective the day of receipt if delivered by hand or electronically, the second business day after deposit with an overnight
delivery service if so deposited, or the fifth business day after mailing in the case of first class registered or certified mail. 

10.04 No Employment Contract. The existence of this Plan shall not confer any legal or other rights upon any Participant to
employment or continuation of employment. Employees are employees at will. The Company and each Employer reserve the right to terminate any Participant with or without cause at any time, notwithstanding the provisions of this Plan. 

10.05 Headings. The headings in this Plan are for convenience of reference and shall not be given substantive effect.

 10.06 Construction. Any masculine pronoun shall also mean the corresponding female or neuter pronoun, as the context
requires. The singular and plural forms of any term used in this Plan shall be interchangeable, as the context requires. 

10.07 Joint and Several Liability. In the event that any Employer incurs any obligation to a Participant pursuant to this Plan,
such Employer, the Company and each Affiliate, if any, of which such Employer is a subsidiary shall be jointly and severally liable with such Employer for such obligation. 

10.08 Successors. This Plan shall inure to the benefit of and be binding upon the Company, each Employer and their respective
successors and assigns. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of any Employer to assume expressly and agree to
comply with this Plan in the same manner and to the same extent that the Employer would be required to comply with it if no such succession had taken place. Failure to require such assumption will be a material breach of this Plan. Any successor to
the business or assets of any Employer that assumes or agrees to perform this Plan by operation of law, contract, or otherwise shall be jointly and severally liable with the Employer under this Plan as if such successor were the Employer.

 10.09 Payments to Beneficiary. If a Participant dies after becoming entitled to payments under Section 4.01 or 5.02 but
before receiving all amounts to which he is entitled under this Plan, then, subject to Section 9.01, such remaining amounts shall be paid in a lump sum to one or more 

  
 A-16 

 
beneficiaries designated in writing by the Participant for the purposes of this Plan and received by the Committee before the Participant’s death, which the Participant may change from time
to time in the manner without the consent of any previously designated beneficiary, or if none is so designated, to the Participant’s estate. 

10.10 Non-Alienation of Benefits. Benefits payable under this Plan shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, before actually being received by the Participant, and any such attempt to dispose of any right to
benefits payable under this Plan shall be void.  
 10.11 Tax Matters.  

(a) An Employer may withhold from any amounts payable under this Plan or from any other amount due a Participant any federal,
state, local and other income, employment and other taxes that are required to be withheld pursuant to any applicable law or regulation. 

(b) The intent of the Employers is that payments and benefits under this Plan are exempt from or comply with Section 409A
of the Code and, accordingly, to the maximum extent permitted, this Plan shall be interpreted in accordance with that intent. To the extent that any provision hereof is modified in order to comply with Section 409A of the Code, such
modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Participant and the Employer of the applicable provision without violating the provisions of
Section 409A of the Code. In no event whatsoever shall the Company or any Employer be liable for any additional tax, interest or penalty that may be imposed on a Participant or Employee by Section 409A of the Code or damages for failing to
comply with Section 409A of the Code. 
 (c) If a Participant is deemed on the Termination Date to be a “specified
employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any benefit that is considered “nonqualified deferred compensation” under Section 409A of
the Code payable on account of a “separation from service,” then, to the extent required by Section 409A of the Code, such payment or benefit shall not be made or provided until the date which is the earlier of (i) the day after
the expiration of the six (6)-month period measured from the date of such “separation from service” of the Employee, and (ii) the date of the Employee’s death. Upon the expiration of the six-month delay period, all payments and
benefits delayed pursuant to this provision (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Employee in a lump sum without interest, and all
remaining payments and benefits due under this Plan shall be paid or provided in accordance with the normal payment dates specified for them herein. 

(d) To the extent that reimbursements or other in-kind benefits under this Plan constitute “nonqualified deferred
compensation” for purposes of Section 409A of the Code, (A) all expenses or other reimbursements hereunder shall be made on before to the last day of the taxable year following the taxable year in which such expenses were incurred by
the Participant, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in
any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. 

  
 A-17 

 (e) For purposes of Section 409A of the Code, the Participant’s right
to receive installment payments pursuant to this Plan shall be treated as a right to receive a series of separate and distinct payments. Whenever this Plan specifies a payment period with reference to a number of days, the actual date of payment
within the specified period shall be within the sole discretion of the Employer; provided that if the timing of the payment is contingent on the lapse or expiration of the revocation period for the release required under Section 9.01 and such
revocation period could, as of the Termination Date, lapse either in the same year as the Termination Date or in the following year, the actual date of payment within the specified period shall be in such following year. 

(f) Notwithstanding any other provision of this Plan to the contrary, in no event shall any payment or benefit under this Plan
that constitutes “nonqualified deferred compensation” for purposes of Section 409A of the Code be subject to offset by any other amount unless such offset would not trigger additional taxes and penalties under Section 409A of the
Code. 
 10.12 Governing Law. The provisions of this Plan shall be governed, construed and administered in accordance with the
laws of the State of Illinois, other than its laws respecting choice of law, except to the extent preempted by federal law. 

10.13 Severability. If any one or more Articles, Sections or other portions of this Plan are declared by any court or
governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve to invalidate any Article, Section or other portion not so declared to be unlawful or invalid; provided that if the release required under
Section 10,01 is declared to be unlawful or unenforceable, then no payments shall be made the payment of which is subject to such release, and the Participant shall forthwith restore to the Employer any payments previously made that were
subject to such release. Any Article, Section or other portion so declared to be unlawful or invalid shall be construed so as to effectuate the terms of such article, section or other portion to the fullest extent possible while remaining lawful and
valid. 

  
 A-18EX-10.5

 Exhibit 10.5 

Walgreens Boots Alliance, Inc. 

2011 Cash-Based Incentive Plan 

As amended and restated effective 

December 31, 2014 

 Contents 
  

 

					
	 Article 1. Establishment, Purpose, and Duration
	  	 	1	  
	 Article 2. Definitions
	  	 	1	  
	 Article 3. Administration
	  	 	6	  
	 Article 4. Eligibility and Participation
	  	 	7	  
	 Article 5. Awards
	  	 	7	  
	 Article 6. Awards Not Assignable or Transferable
	  	 	8	  
	 Article 7. Performance Measures
	  	 	9	  
	 Article 8. Beneficiary Designation
	  	 	10	  
	 Article 9. Rights of Participants
	  	 	10	  
	 Article 10. Change of Control
	  	 	11	  
	 Article 11. Amendment and Termination
	  	 	11	  
	 Article 12. Reporting and Withholding
	  	 	12	  
	 Article 13. Successors
	  	 	12	  
	 Article 14. General Provisions
	  	 	12	  

 Walgreens Boots Alliance, Inc. 

2011 Cash-Based Incentive Plan 
 Article
1. Establishment, Purpose, and Duration 
 1.1 Establishment. Walgreen Co., an Illinois corporation (hereinafter referred to as
the “Walgreens”), previously established an incentive compensation plan to be known as Walgreen Co. 2011 Cash-Based Incentive Plan (hereinafter referred to as the “Plan”). This Plan permits the grant of Cash-Based Awards. This
Plan became effective upon shareholder approval on January 11, 2012 (the “Effective Date”) and shall remain in effect as provided in Section 1.3 hereof. On December 31, 2014, a reorganization of Walgreens into a holding
company structure (hereinafter referred to as the “Reorganization”) was completed. Pursuant to the Reorganization, Walgreens became a wholly owned subsidiary of a new Delaware corporation named Walgreens Boots Alliance, Inc. (hereinafter
referred to as the “Company”). In connection with the Reorganization, the Plan was assumed by the Company and the Plan is hereby amended and restated as set forth herein, effective as of December 31, 2014, in order to reflect such
assumption. 
 1.2 Objectives of This Plan. The objectives of this Plan are to optimize the profitability and growth of the
Company through incentives consistent with the Company’s goals and that link and align the personal interests of Participants with an incentive for excellence in individual performance, and to promote teamwork. This Plan is further intended to
provide flexibility to the Company in its ability to motivate, attract, and retain the services of Participants who make significant contributions to the Company’s success and to allow Participants to share in the success of the Company.

 1.3 Duration of This Plan. This Plan shall commence on the Effective Date, as described in Section 1.1, and shall remain
in effect until terminated, modified, or amended in accordance with Section 11.1 of the Plan. 
 Article 2. Definitions 

Whenever used in this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter
of the word shall be capitalized. 
  

	 	2.1	“Affiliate” means any entity (a) which, directly or indirectly, is controlled by, controls, or is under common control with the Company, or (b) in which the Company has a significant entity
interest, in either case as determined by the Committee, and which is designated by the Committee as such for purposes of the Plan. 

  

	 	2.2	“Annual Award Limit” or “Annual Award Limits” have the meaning set forth in Section 5.3. 

  

	 	2.3	“Award” means, individually or collectively, a grant to a Participant under an Award Agreement of any Cash-Based Award, subject to the terms of this Plan. 

 

	 	2.4	“Award Agreement” means either: (a) a written or electronic agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this
Plan, including any amendment or modification thereof, or (b) a written or electronic statement issued by the Company to a Participant describing the terms and provisions of such Award, including any amendment or modification thereof. The
Committee may provide for the use of electronic, Internet, or other non-paper Award Agreements, and the use of electronic, Internet, or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 

  
 1 

	 	2.5	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such terms in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 

 

	 	2.6	“Board” or “Board of Directors” means the Board of Directors of the Company. 

  

	 	2.7	“Cash-Based Award” means a contractual right granted to an Employee under Article 5 entitling such Participant to receive a cash payment or payments, at such times, and subject to such conditions, as
are set forth in this Plan and the applicable Award Agreement. 

  

	 	2.8	“Cause” means, unless otherwise specified in an Award Agreement or in an applicable employment agreement between the Company and a Participant, with respect to any Participant any of the following:

  

	 	(a)	Any act that would constitute a material violation of the Company’s material written policies; 

  

	 	(b)	Willfully engaging in conduct materially and demonstrably injurious to the Company, provided, however, that no act or failure to act, on the Participant’s part, shall be considered “willful” unless done,
or omitted to be done, by the Participant not in good faith and without reasonable belief that such action or omission was in the best interest of the Company; 

  

	 	(c)	Being indicted for, or if charged with but not indicted for, being tried for (i) a crime of embezzlement or a crime involving moral turpitude, or (ii) a crime with respect to the Company involving a breach of
trust or dishonesty, or (iii) in either case, a plea of guilty or no contest to such a crime; 

  

	 	(d)	Abuse of alcohol in the workplace, use of any illegal drug in the workplace or a presence under the influence of alcohol or illegal drugs in the workplace; 

 

	 	(e)	Failure to comply in any material respect with the Foreign Corrupt Practices Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act of 2002, and the Truth in Negotiations Act, or
any rules and regulations issued thereunder; and 

  

	 	(f)	Failure to follow the lawful directives of the Company’s Chief Executive Officer, the President or the Board of Directors. 

  

	 	2.9	“Change of Control” means a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as described in Code
Section 409A, including: 

  

	 	(a)	 An acquisition after the date hereof by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
(a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 

  
 2 

	 	
twenty percent (20%) or more of either (a) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (b) the combined voting
power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following: (1) any acquisition directly from
the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company or approved by the Incumbent Board (as defined below), (2) any
acquisition by the Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, (4) any acquisition by an underwriter temporarily holding
Company securities pursuant to an offering of such securities, or (5) any acquisition pursuant to a transaction which complies with clauses (1), (2), and (3) of subsection (c) below; or 

 

	 	(b)	A change in the composition of the Board such that the individuals who, as of the Effective Date of the Plan, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section, that any individual who becomes a member of the Board subsequent to the effective date of the Plan, whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this
proviso), either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination shall be considered as though such individual were a
member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or 

 

	 	(c)	 Consummation of a reorganization, merger, or consolidation (or similar transaction), a sale or other disposition of all or substantially all of the
assets of the Company, or the acquisition of assets or stock of another entity (“Corporate Transaction”); in each case, unless immediately following such Corporate Transaction (i) all or substantially all of the individuals and
entities who are the Beneficial Owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than fifty
percent (50%) of, respectively, the outstanding shares of common stock, and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such Corporate Transaction (including, without limitation, a corporation which, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person
(other than the Company, any employee benefit plan (or related trust) of the Company or such 

  
 3 

	 	
corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, twenty percent (20%) or more of, respectively, the outstanding shares of common stock of
the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors, except to the extent that such ownership existed
prior to the Corporate Transaction, and (iii) individuals who were members of the Incumbent Board at the time of the Board’s approval of the execution of the initial agreement providing for such Corporate Transaction will constitute at
least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or 

  

	 	(d)	The approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 

  

	 	2.10	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable
regulations thereunder and any successor or similar provision. 

  

	 	2.11	“Committee” means the Compensation Committee of the Board or a subcommittee thereof, or any other committee designated by the Board to administer this Plan. The members of the Committee shall be
appointed from time to time by and shall serve at the discretion of the Board and shall be composed of not less than two Directors, each of whom is a nonemployee director (within the meaning of Rule 16b-3) and an outside director (within the meaning
of Code Section 162(m)) to the extent Rule 16b-3 and Section 162(m) of the Code, respectively, are applicable to the Company and the Plan. If the Committee does not exist or cannot function for any reason, the Board may take any action
under the Plan that would otherwise be the responsibility of the Committee. 

  

	 	2.12	“Company” means Walgreens Boots Alliance, Inc., a Delaware corporation, and any successor thereto as provided in Article 13 herein. 

 

	 	2.13	“Covered Employee” means any Employee who is or may become a “Covered Employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or class of
Employees, by the Committee within the shorter of: (a) ninety (90) days after the beginning of the Performance Period provided the outcome for the Performance Period is substantially uncertain, or (b) twenty-five percent (25%) of
the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance Period. 

  

	 	2.14	“Director” means any individual who is a member of the Board of Directors of the Company. 

  

	 	2.15	“Disability” shall mean disability as determined by the Committee in accordance with standards and procedures similar to those under the applicable Company long-term disability plan, if any. At any time
that the Company does not maintain an applicable long-term disability plan, “Disability” shall mean any physical or mental disability which is determined to be total and permanent by a physician selected or relied upon in good faith by the
Company. 

  

	 	2.16	“Effective Date” has the meaning set forth in Section 1.1. 

  
 4 

	 	2.17	“Employee” means any individual performing services for the Company, an Affiliate, or a Subsidiary, including but not limited to officers, and designated as an employee of the Company, an
Affiliate, or a Subsidiary on the payroll records thereof. An Employee shall not include any individual during any period he or she is classified or treated by the Company, Affiliate, or Subsidiary as an independent contractor, a consultant, or any
employee of an employment, consulting, or temporary agency or any other entity other than the Company, Affiliate, or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively
reclassified as a common-law employee of the Company, Affiliate, or Subsidiary during such period. An individual shall not cease to be an Employee in the case of: (a) any leave of absence approved by the Company, or (b) transfers between
locations of the Company or between the Company, any Affiliates, or any Subsidiaries. A leave of absence may continue so long as the Employee is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not
exceed six (6) months, or if longer, so long as the Participant retains a right to reemployment with the Company, a Subsidiary, or an Affiliate under an applicable statute or by contract. Neither service as a Director nor payment of a
Director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 

  

	 	2.18	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

 

	 	2.19	“Extraordinary Items” means (a) extraordinary, unusual, and/or nonrecurring items of gain or loss; (b) gains or losses on the disposition of a business; (c) changes in tax or
accounting regulations or laws; or (d) the effect of a merger or acquisition, all of which must be identified in the audited financial statements, including footnotes, or Management Discussion and Analysis section of the Company’s annual
report. 

  

	 	2.20	“Grant Date” means the date an Award is granted to a Participant pursuant to the Plan. 

  

	 	2.21	“Participant” means any eligible individual as set forth in Article 4 to whom an Award is granted. 

  

	 	2.22	“Performance-Based Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation paid to
Covered Employees. Notwithstanding the foregoing, nothing in this Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute
performance-based compensation for other purposes, including Code Section 409A. 

  

	 	2.23	“Performance Measures” mean measures as described in Article 7 on which the performance goals are based and which are approved by the Company’s shareholders pursuant to this Plan in order to
qualify Awards as Performance-Based Compensation. 

  

	 	2.24	“Performance Period” means the period of time, as determined by the Committee, during which the performance goals must be met in order to determine the degree of payout with respect to an Award;
provided, however, that in no event shall such a period be less than twelve (12) consecutive months. 

  
 5 

	 	2.25	“Person” has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in
Section 13(d) thereof. 

  

	 	2.26	“Plan” means the Walgreens Boots Alliance, Inc. 2011 Cash-Based Incentive Plan (formerly the Walgreen Co. 2011 Cash-Based Incentive Plan). 

 

	 	2.27	“Plan Year” means the Company’s fiscal year which begins September 1 and ends August 31. 

  

	 	2.28	“Service” means a Participant’s employment relationship with the Company, an Affiliate, or a Subsidiary.  

 

	 	2.29	“Share” means a share of common stock of the Company, $0.01 par value per share.  

  

	 	2.30	“Specified Employee” means a “specified employee” within the meaning of Code Section 409A and any specified employee identification policy or procedure of the Company.

  

	 	2.31	“Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, an interest of more than fifty percent (50%) by
reason of stock ownership or otherwise.  

  

	 	2.32	“Termination of Employment” or “Terminates Employment” means a separation from Service of a Participant, within the meaning of Code Section 409A. 

Article 3. Administration 
 3.1
General. The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions of this Plan. The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom
may be an Employee, and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the advice, opinions, or valuations of any such individuals. All actions taken and all interpretations and determinations made by the
Committee shall be final and binding upon the Participants, the Company, and all other interested individuals.  
 3.2 Authority
of the Committee. Subject to any express limitations set forth in the Plan, the Committee shall have full and exclusive discretionary power and authority to take such actions as it deems necessary and advisable with respect to the administration
of the Plan including, but not limited to, the following: 
  

	 	(a)	To determine from time to time which of the persons eligible under the Plan shall be granted Awards, when and how each Award shall be granted, what type or combination of types of Awards shall be granted, the provisions
of each Award granted (which need not be identical); 

  

	 	(b)	To construe and interpret the Plan and Awards granted under it, and to establish, amend, and revoke rules and regulations for its administration. The Committee, in the exercise of this power, may correct any defect,
omission, or inconsistency in the Plan or in an Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective; 

  
 6 

	 	(c)	To approve forms of Award Agreements for use under the Plan; 

  

	 	(d)	To amend the Plan or any Award Agreement as provided in the Plan; 

  

	 	(e)	To adopt subplans and/or special provisions applicable to Awards regulated by the laws of a jurisdiction other than and outside of the United States. Such subplans and/or special provisions may take precedence over
other provisions of the Plan, but unless otherwise superseded by the terms of such subplans and/or special provisions, the provisions of the Plan shall govern; and 

 

	 	(f)	To authorize any person to execute on behalf of the Company any instrument required to effectuate any Award previously granted by the Committee. 

3.3 Delegation. The Committee may delegate to one or more of its members or to one or more officers of the Company or any Subsidiary or
Affiliate or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render
advice with respect to any responsibility the Committee or such individuals may have under this Plan. The Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the
Committee: (a) designate Employees to be recipients of Awards; (b) determine the size of any such Awards; provided, however, (i) the Committee shall not delegate such responsibilities to any such officer for Awards to be granted to
such officer; (ii) the resolution providing such authorization sets forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding the nature and scope of the
Awards granted pursuant to the authority delegated. 
 3.4 Decisions Binding. All determinations and decisions made by the
Committee pursuant to the provisions of this Plan and all related orders and resolutions of the Board shall be final, conclusive, and binding on all persons, including the Company, its stockholders, Employees, Participants, and their estates and
beneficiaries. 
 Article 4. Eligibility and Participation 

4.1 Eligibility. Persons eligible to participate in this Plan include all officers and key Employees of the Company, or those who will
become officers or key Employees, whose performance or contribution, as determined by the Committee, benefits or will benefit the Company. 

4.2 Actual Participation. Subject to the provisions of this Plan, the Committee may, from time to time, select from all eligible
individuals, those individuals to whom Awards shall be granted and shall determine, in its sole discretion, the nature of any and all terms permissible by law and the amount of each Award.  

Article 5. Awards 
 5.1 Grant of
Cash-Based Awards. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms as the Committee may determine. The Committee
may grant Cash-Based Awards that are payable based on the attainment of a specified performance goal (or goals), with or without additional Service requirements, as established by the Committee in its discretion. 

  
 7 

 5.2 Value of Cash-Based Awards. Each Cash-Based Award shall specify a payment amount or
payment range as determined by the Committee. The Committee may establish a performance goal or goals in its discretion. If the Committee exercises its discretion to establish performance goals, the number and/or value of such Cash-Based Award (the
“Performance-Based Compensation Award”) that will be paid out to the Participant will depend on the extent to which the performance goals are met and additional Service requirements, if any, are met. 

5.3 Maximum Cash-Based Awards. The maximum aggregate amount awarded or credited under this Plan with respect to Cash-Based Awards to
any one Participant in any one Plan Year may not exceed ten million dollars ($10,000,000), determined as of the date of payout.  

5.4 Payment of Cash-Based Awards. Payment, if any, with respect to a Cash-Based Award shall be made in cash, in accordance with the
terms of the applicable Award Agreement, and as the Committee determines in accordance with Code Section 409A, to the extent applicable. 

5.5 Termination of Employment. The Committee shall determine the extent to which the Participant shall have the right to receive
payment for Cash-Based Awards, if any, following termination of the Participant’s employment with or provision of services to the Company or any Affiliate or Subsidiary, as the case may be. Such provisions shall be determined in the sole
discretion of the Committee, such provisions may be included in an agreement entered into with each Participant, but need not be uniform among all Awards of Cash-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the
reasons for termination. 
 5.6 Compliance With Section 409A. To the extent applicable, it is intended that the Plan and
all Awards hereunder comply with the requirements of Section 409A of the Code, and the Plan and all Award Agreements shall be interpreted and applied by the Committee in a manner consistent with this intent in order to avoid the imposition of
any additional tax under Section 409A of the Code. 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 Section 409A of the Code, the Committee
shall have the authority, pursuant to Section 14.8, to take such actions and to make such interpretations or changes to the Plan or an Award Agreement as the Committee deems necessary to comply with such requirements, provided that the
Committee shall act in a manner that is intended to preserve the economic value of the Award to the Participant. In no event whatsoever shall the Company be liable for any additional tax, interest, or penalties that may be imposed on any Participant
by Section 409A of the Code or any damages for failing to comply with Section 409A of the Code. 
 5.7 Compliance With
Section 162(m). The Plan shall be interpreted and construed in accordance with Section 162(m) of the Code. A Participant shall be eligible to receive payment with respect to a Performance-Based Compensation Award only to the extent
that the performance goals for such Performance Period are achieved and the terms of the Award applied against such performance goals determines that all or a portion of such Participant’s Performance-Based Compensation Award has been earned
for the Performance Period. Following the completion of a Performance Period, the Committee shall review and certify in writing whether, and to what extent, the Performance-Based Compensation Award for the Performance Period was achieved and then
the amount thereof. 
 Article 6. Awards Not Assignable or Transferable 

Except as expressly authorized by the Committee, during a Participant’s lifetime, his Awards shall be payable only to the Participant.
Awards shall not be assignable or transferable other than by will or the 

  
 8 

 
laws of descent and distribution or, subject to the consent of the Committee, pursuant to a domestic relations order entered into by a court of competent jurisdiction; no Awards shall be subject,
in whole or in part, to attachment, execution, or levy of any kind; and any purported assignment or transfer in violation of this Article 6 shall be null and void. The Committee may establish such procedures as it deems appropriate for a Participant
to designate a beneficiary to whom any amounts payable in the event of, or following, the Participant’s death may be provided. 
 Article 7.
Performance Measures 
 7.1 Performance Measures. The performance goals upon which the payment of a Performance-Based Compensation
Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures: 
  

	 	(a)	Net earnings, net income, or consolidated net income (before or after taxes); 

  

	 	(b)	Earnings per Share; 

  

	 	(c)	Net sales or revenue growth; 

  

	 	(d)	Achievement of balance sheet or income statement objectives; 

  

	 	(e)	Gross, pre-tax, post-tax, or net operating profit; 

  

	 	(f)	Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue); 

  

	 	(g)	Cash flow (including, but not limited to, operating cash flow, discounted cash flow, cumulative cash flow, free cash flow, cash flow return on equity, and cash flow return on investment); 

 

	 	(h)	Earnings (based on either LIFO or FIFO accounting for inventories), before or after taxes, interest, depreciation, and/or amortization; 

 

	 	(i)	Gross, net or operating margins; 

  

	 	(j)	Productivity ratios; 

  

	 	(k)	Share price (including, but not limited to, growth measures and total shareholder return); 

  

	 	(l)	Expense targets; 

  

	 	(m)	Costs (including cost reduction or savings); 

  

	 	(n)	Performance against operating budget goals; 

  

	 	(o)	Operating profit or efficiency; 

  

	 	(p)	Unit sales volume; 

  

	 	(q)	Market or category share; 

  

	 	(r)	Customer satisfaction; 

  

	 	(s)	Working capital targets; 

  

	 	(t)	Improvements in financial ratings; 

  

	 	(u)	Regulatory compliance; 

  

	 	(v)	Extent to which strategic and/or business goals are met; 

  

	 	(w)	Total return to shareholders equity (including both the market value of the Company’s Shares and dividends thereon); and, 

  

	 	(x)	Economic value added or EVA (net operating profit after tax minus the sum of capital multiplied by the cost of capital). 

  
 9 

 Any Performance Measure(s) may be used to measure the performance of the Company, Subsidiary,
and/or Affiliate as a whole or any business unit of the Company, Subsidiary, and/or Affiliate, or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of
comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Company may select Performance Measure (k) above as compared to various stock market indices. The Committee also has the
authority to provide for accelerated payment of any Award based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 7; provided, however, that any restrictions on acceleration of payment under Code
Section 409A shall be observed. 
 7.2 Evaluation of Performance. The Committee may provide in any such Award that any
evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws,
accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) Extraordinary Items, (f) acquisitions or divestitures, and (g) foreign exchange gains and
losses. To the extent such inclusions or exclusions affect Performance-Based Compensation Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility. 

7.3 Adjustment of Performance-Based Compensation. Awards that are intended to qualify as Performance-Based Compensation may not be
adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis or any combination, as the Committee determines. 

7.4 Committee Discretion. In the event that applicable tax, corporate, or securities laws change to permit the Committee discretion to
alter the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. In addition, in the event that the Committee
determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base payout on Performance Measures
other than those set forth in Section 7.1. 
 Article 8. Beneficiary Designation 

Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively)
to whom any benefit under this Plan is to be paid in case of his death before he receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant under this Plan, shall be in a form prescribed by
the Committee, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such beneficiary designation, benefits remaining unpaid or rights remaining unexercised
at the Participant’s death shall be paid to or exercised by the Participant’s executor, administrator, or legal representative. 
 Article 9.
Rights of Participants 
 9.1 Employment. Nothing in this Plan or an Award Agreement shall: (a) interfere with or limit in
any way the right of the Company, its Affiliates, and/or its Subsidiaries to terminate any Participant’s employment or Service at any time or for any reason not prohibited by law, or (b) confer upon any Participant any right to continue
his employment for any specified period of time. Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any 

  
 10 

 
Affiliate or Subsidiary and, accordingly, subject to Articles 3 and 11, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee
without giving rise to any liability on the part of the Company, its Affiliates, and/or its Subsidiaries. 
 9.2 Participation. No
individual shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 

Article 10. Change of Control 
 10.1
Change of Control of the Company. Notwithstanding any other provision of this Plan to the contrary, the provisions of this Article 10 shall apply in the event of a Change of Control, unless otherwise determined by the Committee in connection
with the grant of an Award as reflected in the applicable Award Agreement.  
  

	 	(a)	Performance Goals. Upon a Change of Control, all then-outstanding Awards with performance goals yet to be achieved shall be considered to be earned at target values, or at such value otherwise determined by the
terms and conditions set forth in the applicable Award Agreement, and payable at the time set forth in the applicable Award Agreement.  

  

	 	(b)	Awards With Service Requirements. Upon a Participant’s involuntary termination for a reason other than Cause during the two (2) year period following a Change of Control, any Service requirement
applicable to then-outstanding Awards shall be considered satisfied.  

 Article 11. Amendment and Termination 

11.1 Amendment and Termination of the Plan and Award Agreements.  

 

	 	(a)	Subject to subparagraph (b) of this Section 11.1 and Section 11.3 of the Plan, the Board may at any time terminate the Plan or an outstanding Award Agreement and the Committee may, at any time and from
time to time, amend the Plan or an outstanding Award Agreement. 

  

	 	(b)	Notwithstanding the foregoing, no amendment of this Plan shall be made without shareholder approval if shareholder approval is required pursuant to rules promulgated by any stock exchange or quotation system on which
Shares are listed or quoted or by applicable U.S. state corporate laws or regulations, applicable U.S. federal laws or regulations, and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 11.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. Subject to
Section 7.3, the Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 7.2
hereof) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended
diminution or enlargement of the benefits or potential benefits intended to be made available under this Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this
Plan. By accepting an Award under this Plan, a Participant agrees to any adjustment to the Award made pursuant to this Section 11.2 without further consideration or action. 

  
 11 

 11.3 Awards Previously Granted. Notwithstanding any other provision of this Plan to the
contrary, other than Sections 11.2, 11.4, or 14.14, no termination or amendment of this Plan or an Award Agreement shall adversely affect in any material way any Award previously granted under this Plan, without the written consent of the
Participant holding such Award. 
 11.4 Amendment to Conform to Law. Notwithstanding any other provision of this Plan to the
contrary, the Committee may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award Agreement to any present or future law relating to plans
of this or similar nature, and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 11.4 to any Award granted under the
Plan without further consideration or action. 
 Article 12. Reporting and Withholding 

The Company shall have the power and the right to report income and to deduct or withhold, or require a Participant to remit to the Company,
the minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. 

Article 13. Successors 
 All obligations
of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of
all or substantially all of the business and/or assets of the Company. 
 Article 14. General Provisions 

14.1 Forfeiture Events.  
  

	 	(a)	The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of employment for Cause, termination of the
Participant’s provision of services to the Company, Affiliate, or Subsidiary, violation of material Company, Affiliate, or Subsidiary policies, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the
Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company, any Affiliate, or Subsidiary. 

  

	 	(b)	 If any of the Company’s financial statements are required to be restated resulting from errors, omissions, or fraud, the Committee may (in its
sole discretion, but acting in good faith) direct that the Company recover all or a portion of any Award granted or paid to a Participant with respect to any fiscal year of the Company the financial results of which are negatively affected by such
restatement. The amount to be recovered from the Participant shall be the amount by which the Award exceeded the 

  
 12 

	 	
amount that would have been payable to the Participant had the financial statements been initially filed as restated, or any greater or lesser amount (including, but not limited to, the entire
Award) that the Committee shall determine. In no event shall the amount to be recovered by the Company be less than the amount required to be repaid or recovered as a matter of law (including but not limited to amounts that are required to be
recovered or forfeited under Section 304 of the Sarbanes-Oxley Act of 2002 or Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010). The Committee shall determine whether the Company shall effect any such
recovery: (i) by seeking repayment from the Participant, (ii) by reducing (subject to applicable law and the terms and conditions of the applicable plan, program or arrangement) the amount that would otherwise be payable to the Participant
under any compensatory plan, program, or arrangement maintained by the Company, an Affiliate, or any Subsidiary, (iii) by withholding payment of future increases in compensation (including the payment of any discretionary bonus amount) or
grants of compensatory awards that would otherwise have been made in accordance with the Company’s otherwise applicable compensation practices, or (iv) by any combination of the foregoing. 

14.2 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the
feminine, the plural shall include the singular, and the singular shall include the plural. 
 14.3 Severability. In the event
any provision of this Plan shall be held illegal or invalid for any reason, 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. 
 14.4 Requirements of Law. The granting of and settlement of Awards under this Plan shall be subject to all
applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.  

14.5 Employees Based Outside of the United States. Notwithstanding any provision of this Plan to the contrary, in order to comply with
the laws in other countries in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees and/or Directors, the Committee, in its sole discretion, shall have the power and authority to: 

 

	 	(a)	Determine which Affiliates and Subsidiaries shall be covered by this Plan; 

  

	 	(b)	Determine which Employees outside the United States are eligible to participate in this Plan; 

  

	 	(c)	Modify the terms and conditions of any Award granted to Employees outside the United States to comply with applicable foreign laws; 

  

	 	(d)	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan terms and procedures established under
this Section 14.5 by the Committee shall be attached to this Plan document as appendices; and 

  

	 	(e)	Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals. 

  
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 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall
be granted, that would violate applicable law. 
 14.6 Unfunded Plan. Participants shall have no right, title, or interest whatsoever
in or to any investments that the Company, its Subsidiaries, or its Affiliates may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual. To the extent that any individual acquires a right to receive payments from the
Company or any Affiliate or Subsidiary under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company or the Subsidiary or Affiliate, as the case may be. All payments to be made hereunder shall be paid
from the general funds of the Company, or the Subsidiary or Affiliate, as the case may be and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth
in this Plan. 
 14.7 Retirement and Welfare Plans. Neither Awards made under this Plan nor cash paid pursuant to such Awards
may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Subsidiary’s or Affiliate’s retirement plans (both qualified and nonqualified) or welfare benefit
plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit.  

14.8 Deferred Compensation. 
  

	 	(a)	The Committee may grant Awards under the Plan that provide for the deferral of compensation within the meaning of Code Section 409A. It is intended that such Awards comply with the requirements of Code
Section 409A so that amounts deferred thereunder are not includible in income before actual payment and are not subject to an additional tax of twenty percent (20%) at the time the deferred amounts are no longer subject to a substantial
risk of forfeiture. 

  

	 	(b)	Notwithstanding any provision of the Plan or Award Agreement to the contrary, if one or more of the payments or benefits to be received by a Participant pursuant to an Award would constitute deferred compensation
subject to Code Section 409A and would cause the Participant to incur any penalty tax or interest under Code Section 409A or any regulations or Treasury guidance promulgated thereunder, the Committee may reform the Plan and Award Agreement
to comply with the requirements of Code Section 409A and to the extent practicable maintain the original intent of the Plan and Award Agreement. By accepting an Award under this Plan, a Participant agrees to any amendments to the Award made
pursuant to this Section 14.8(b) without further consideration or action. 

 14.9 Nonexclusivity of this Plan. The
adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant. 

  
 14 

 14.10 No Constraint on Corporate Action. Nothing in this Plan shall be construed to:
(a) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or
consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems to be necessary or
appropriate. 
 14.11 Payments to a Trust. The Committee is authorized to cause to be established a trust agreement or several
trust agreements or similar arrangements from which the Committee may make payments of amounts due or to become due to any Participants under the Plan.  

14.12 Governing Law. The Plan and each Award Agreement shall be governed by the laws of the state of Illinois, excluding any conflicts
or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are
deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Illinois to resolve any and all issues that may arise out of or relate to this Plan or any related Award Agreement. 

14.13 Delivery and Execution of Electronic Documents. To the extent permitted by applicable law, the Company may: (a) deliver by
email or other electronic means (including posting on a Web site maintained by the Company or by a third party under contract with the Company) all documents relating to the Plan or any Award thereunder and all other documents that the Company is
required to deliver to its security holders (including without limitation, annual reports and proxy statements), and (b) permit Participants to electronically execute applicable Plan documents (including, but not limited to, Award Agreements)
in a manner prescribed to the Committee. 
 14.14 No Representations or Warranties Regarding Tax Effect. Notwithstanding any
provision of the Plan to the contrary, the Company, its Affiliates and Subsidiaries, the Board, and the Committee neither represent nor warrant the tax treatment under any federal, state, local, or foreign laws and regulations thereunder
(individually and collectively referred to as the “Tax Laws”) of any Award granted or any amounts paid to any Participant under the Plan including, but not limited to, when and to what extent such Awards or amounts may be subject to tax,
penalties, and interest under the Tax Laws. 
 14.15 Indemnification. Subject to applicable requirements of Illinois law and
the Delaware General Corporation Law, each individual who is or shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with Article 3, shall be
indemnified and held harmless by the Company against and from 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 this Plan and against and 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 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/her own behalf, unless such loss, cost, liability, or expense is a result of his/her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such individuals may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless. 

  
 15

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