Document:

Exhibit 10.63

EXHIBIT 10.63

FORM OF HILL-ROM HOLDINGS, INC.

STOCK AWARD (4 YR)

(EFFECTIVE <date>)

1. Purpose. The purpose of the Hill-Rom Holdings, Inc. Stock Award (hereinafter
called the “Award”), which is granted under the Hill-Rom Holdings, Inc. Stock Incentive Plan (the
“Plan”), is to promote profitability and growth of Hill-Rom Holdings, Inc. (the “Company”) by
offering an incentive payable in Company common stock to <Name> (“Employee”) who contributes
to such profitability and growth.

2. Amount of Award. The Company shall cause an account to be established in the name
of the Employee (“Deferred Stock Account”), which shall be assumed to be invested in <Units>
shares (“Initial Deferred Stock Award”) of common stock, no par value of the Company (“Common
Stock”). No actual shares of Common Stock shall be held in the Deferred Stock Account, and the
number of shares of Common Stock maintained in the Deferred Stock Account (“Deferred Stock”) shall
be a book entry which states the number of shares of Common Stock the Employee would have a right
to receive in accordance with the terms of this Award. Any cash dividend paid on Common Stock by
the Company while the Deferred Stock Account exists will be assumed to be paid on the Deferred
Stock in the Deferred Stock Account and shall be assumed to be reinvested in Common Stock on the
date of such dividend payment, thereby increasing the number of shares of Deferred Stock maintained
in the Deferred Stock Account. Any stock dividends, stock splits and other similar rights inuring
to Common Stock shall also be assumed to inure to the Deferred Stock, which may increase or
decrease the number of shares of Deferred Stock in the Deferred Stock Account. The Initial
Deferred Stock Award plus any increases or less any decreases due to cash dividends, stock
dividends, stock splits and any other similar rights inuring to Common Stock as set forth in the
two immediately preceding sentences shall herein after be referred to as the “Deferred Stock
Award.”

If Employee’s employment with the Company or any of its Subsidiaries (as defined in the Plan)
continues uninterrupted from the effective date of this Award through the day after the first,
second, third and fourth anniversaries of such effective date, respectively, an amount of Deferred
Stock which equals a percentage as set forth below of the Deferred Stock Award, shall be
non-forfeitable (“Vested Deferred Stock”), and the Company shall, subject to his election to defer
receipt, deliver to him shares of Common Stock equal in number to the number of shares of Deferred
Stock which became Vested Deferred Stock on the day after such second, third, and fourth
anniversary dates as follows:

	 	 	 
	The day after the first anniversary date of the effective date of this Award

	 	25% of the Deferred Stock Award
	The day after the second anniversary date of the effective date of this Award

	 	25% of the Deferred Stock Award
	The day after the third anniversary date of the effective date of this Award

	 	25% of the Deferred Stock Award
	The day after the fourth anniversary date of the effective date of this Award

	 	25% of the Deferred Stock Award

 

 

 

Any Deferred Stock maintained in the Deferred Stock Account which is not Vested Deferred Stock
shall, upon the Employee’s termination of employment, be forfeited by Employee without the payment
of any consideration or further consideration by the Company, and neither Employee nor any
successors, heirs, assigns, or legal representatives of Employee shall thereafter have any further
rights or interest in such forfeited Deferred Stock. Any fractional shares of Vested Deferred
Stock shall be rounded up to the next whole share of Vested Deferred Stock.

Notwithstanding the schedule set forth above, Deferred Stock maintained in the Deferred Stock
Account shall become Vested Deferred Stock upon (A) the occurrence of any one of the following
events: (i) termination of Employee’s employment with the Company, one of its Subsidiaries (as
defined in the Plan) or one of their respective divisions by reason of retirement after (a) the day
after the first anniversary date of the effective date of this Award, and (b) attaining age
fifty-five (55) and completion of five (5) years of employment, or (ii) termination of Employee’s
employment with the Company, one of its Subsidiaries or one of their respective divisions by reason
of disability, as determined by the Compensation and Management Development Committee of the
Company’s Board of Directors (the “Committee”), or death, or (B) the termination of Employee’s
employment by the Company for any reason other than on account of his death, disability, retirement
or for Cause (as defined in Employee’s employment agreement) or by Employee for Good Reason (as
defined in Employee’s employment agreement) (i)after the day after the first anniversary date of
the effective date of this Award and (ii) after the occurrence, but before the third anniversary,
of (a)a Change in Control (as defined in Section 14.2 of the Plan), or (b) a sale, transfer or
disposition of substantially all of the assets or capital stock of a Subsidiary (as defined in the
Plan) or division of the Company or one of its Subsidiaries for whom the Employee is employed at
the time of such Change in Control, sale, transfer or disposition. Notwithstanding anything herein
to the contrary, the distribution by the Company to Company shareholders of any or all of the
shares of common stock of any of its Subsidiaries (“Distribution”) shall not constitute an event
causing Deferred Stock to become Vested Deferred Stock as described in the preceding sentence.
Temporary absences from employment because of illness, vacation or leave of absence and transfers
among the Company and/or any of its Subsidiaries shall not be considered terminations of
employment. For purposes of this Agreement and the Plan, the Committee shall have absolute
discretion to determine the date and circumstances of termination of Employee’s employment, and its
determination shall be final, conclusive and binding upon Employee. Except as provided in this
paragraph, upon termination of employment with the Company, one of its Subsidiaries (as defined in
the Plan) or one of their respective divisions, the Employee shall be entitled to receive only the
number of shares of Vested Deferred Stock as set forth in the vesting schedule set forth in the
second paragraph of this Section 2. Notwithstanding anything herein to the contrary, the transfer
of Employee’s employment from the Company to any of its Subsidiaries or from one of the Company’s
Subsidiaries to the Company or another of the Company’s Subsidiaries in connection with a
Distribution shall not constitute a termination of employment for purposes of this Agreement, and
Employee’s employment will be deemed to continue for purposes of this Agreement until otherwise
terminated as provided herein. In particular, if Employee transfers employment from the Company to
any of its Subsidiaries or from one of the Company’s Subsidiaries to the Company or another of the
Company’s Subsidiaries in connection with or in anticipation of the Distribution, such transfer
shall not constitute a termination of employment for purposes of this Agreement, and Employee’s
employment will be deemed to continue for purposes of this Agreement until otherwise terminated as
provided herein.

 

 

 

The shares of Common Stock delivered to the Employee shall be from shares held by the Company as
treasury stock or from shares of Common Stock acquired by the Company in the open market. Subject
to the Employee’s election to defer, all shares of Common Stock to be delivered to the Employee
shall be delivered as soon as administratively possible after the day after the corresponding
anniversary date or the Employee’s termination of employment under clause (A)(ii) in the immediate
foregoing paragraph, provided that the shares of Common Stock to be delivered as set forth herein
(not deferred shares) shall be delivered no later than the 15th day of the third month
following the end of the Company’s first taxable year in which such shares become Vested Deferred
Stock. However, all shares of Common Stock shall be delivered as soon as administratively
possible after the occurrence of the events described in clauses B(i) and B(ii) in the immediate
foregoing paragraph, but no later than ninety (90) days following the occurrence of such event
(subject to the last sentence of this paragraph), provided that the Employee shall have no right to
designate the calendar year in which the shares will be delivered. To the extent shares of Common
Stock have not been delivered hereunder prior to the date the Employee has attained age fifty-five
(55) and completed five (5) years of employment, then thereafter any shares to be delivered
hereunder shall be delivered upon the earlier to occur of: (i) the corresponding anniversary date
set forth in the second paragraph of this Section 2, provided such Common Stock shall be delivered
no later than the 15th day of the third month following the end of the Company’s first taxable year
in which such anniversary date occurs, or (ii) the date of the Employee’s termination of
employment, provided such Common Stock shall be delivered no later than ninety (90) days following
the Employee’s termination of employment and further provided that the Employee shall have no right
to designate the calendar year in which the shares will be delivered. Notwithstanding the
foregoing, if shares become deliverable by reason of the Employee’s termination of employment
following retirement or a Change in Control and at the time of the Employee’s termination of
employment the Employee is a “specified employee” as defined in Section 409A of the Code (as
defined below), then the shares of Common Stock to be delivered shall be delivered on the date
which is six months after the date of the Employee’s termination of employment.

3. Administration of the Award. The Committee shall administer the Award. The
Committee shall have complete and full discretion in the administration and interpretation of the
terms of the Award.

4. Right to Defer Payment of Award.

(a) Election to Defer Award. The Employee may elect to defer payment of the Award otherwise
due on the anniversary date set forth in Section 2 by completing a written election and delivering
such election to the Company at least one year prior to the applicable anniversary date; provided
however, that the completion of such written election and the delivery of such election may be at
an earlier date as determined by the Committee or required by law to insure the validity of such
deferral. The deferral period elected cannot end prior to five (5) years after an Award is
otherwise due on an anniversary date set forth in Section 2. At the end of the deferral period
elected by the Employee (or within a certain period of time after the last day of the deferral
period as determined by the Committee or required by law to insure the validity of the deferral),
the Company, consistent with Section 2 and subject to Section 6, 7 and 8 shall deliver to the
Employee shares of Common Stock equal in number to the number of Vested Deferred Stock held in the
Employee’s Deferred Stock Account.

 

 

 

(b) Financial Hardship. A withdrawal from the Employee’s Deferred Stock Account of Vested
Deferred Stock shall be permitted prior to the termination of the deferral period in the event that
the Employee experiences an “unforeseeable emergency” as such term in defined Section
409A(a)(2)(B)(ii) of the Internal Revenue Code of 1986, as amended (“Code”) and the regulations
issued therewith. The Employee must apply to the Committee for an unforeseeable emergency
withdrawal and demonstrate that the circumstances being experienced were not under the Employee’s
control and constitute a real emergency, which is likely to cause a severe financial hardship. The
Committee shall have the authority to require such medical or other evidence as it may need to
determine the necessity for the Employee’s withdrawal request. If such application for withdrawal
is permitted, the amount of such withdrawal shall be limited to an amount reasonably necessary to
satisfy the emergency need, and the Committee must take into account any additional compensation
available. If the Employee makes a withdrawal, the amount of the Employee’s Deferred Stock Account
under this Award shall be proportionately reduced to reflect the withdrawal. Also, the withholding
requirements described in Section 7 shall also be effected before the withdrawal. Notwithstanding
anything in this Section 4(b) to the contrary, any withdrawal for any unforeseeable emergency must
comply with Section 409A(a)(2)(B) of the Code.

5. No Rights as Stockholder. Employee shall have no rights as a stockholder with
respect to any shares of Common Stock covered by this Award until shares of Common Stock are
delivered to the Employee pursuant to the last paragraph in Section 2 and Section 4. Until such
time, Employee shall not be entitled to dividends (except where the Employee’s Deferred Stock
Account is adjusted pursuant to the first paragraph of Section 2) or to vote at meetings of the
stockholders of the Company.

6. Compliance With Securities Laws. Prior to the receipt of any certificates for
shares of Common Stock pursuant to this Award, Employee (or Employee’s beneficiary or legal
representative upon Employee’s death or disability) shall enter into such additional written
representations, warranties and Awards as the Company may reasonably request in order to comply
with applicable securities laws or with this Award.

7. Stock Ownership Guidelines. Employee (or Employee’s beneficiary or legal
representative upon the Employee’s death or disability) shall be bound by the “Stock Ownership
Guidelines” of the Company as may be in effect from time to time.

8. Withholding. Any payment of Common Stock under this Award shall be subject to
applicable federal and state withholding requirements. Hence, unless the Employee delivers a check
to the Company equal to the required withholding, the number of shares distributed shall be reduced
to meet the Employee’s applicable withholding requirements.

9. Designation of Beneficiary. The Employee shall be permitted to provide to the
Committee a beneficiary designation for receipt of his or her Award after death. If the Employee
fails to designate a beneficiary, or if the designated beneficiary predeceases the Employee, the
Award shall be paid to the deceased Employee’s spouse, if living, or if such spouse is not living,
to the deceased Employee’s estate.

 

 

 

10. Adjustments. In the event of any merger, reorganization, consolidation, sale of
substantially all assets, recapitalization, stock dividend, stock split, spin-off, split-up,
split-off, distribution of assets or other change in corporate structure occurring after the
effective date of this Award affecting the Common Stock subject to this award, the Board shall
adjust the number and kind of shares of Common Stock subject to this Award so as to maintain the
proportionate number of shares subject to this award, and such adjustment shall be conclusive and
binding upon the Employee and the Company.

11. Non-Transferability.

(a) The Deferred Stock, the Deferred Stock Account and the Vested Deferred Stock may not be
sold, assigned, transferred, exchanged, pledged, hypothecated, or otherwise encumbered and no such
sale, assignment, transfer, exchange, pledge, hypothecation, or encumbrance, whether made or
created by a voluntary act of the Employee or any agent of the Employee or by operation of law,
shall be recognized by, or be binding upon, or shall in any manner affect the rights of, the
Company, its successors or any agent thereof.

(b) No amounts payable under the Award shall be transferable by the Employee other than by his
designation of a beneficiary pursuant to Section 9. The amounts payable under the Award shall be
exempt from the claims of creditors of the Employee and from all orders, decrees, levies and
executions and any other legal process to the fullest extent that may be permitted by law.

12. Amendments to Award. The Award may only be modified upon the mutual agreement of
the Company and the Employee.

13. Source of Benefit Payments. The payment of the Award to the Employee shall be
paid solely from the general assets of the Company. Until the actual delivery of the shares of
Common Stock, the Employee shall not have any interest in any specific assets of the Company,
including shares of Common Stock, under the terms of the Award. The Award shall not be considered
to create an escrow account, trust fund or other funding arrangement of any kind, or a fiduciary
relationship between the Employee and the Company. Until such time of payment, no shares of the
Common Stock shall be set aside by the Company for the Award.

14. Successors and Assigns.

(a) This Award is personal to the Employee and without the prior written consent of the
Company shall not be assignable by the Employee except by will or the laws of descent and
distribution. This Award shall inure to the benefit of and be enforceable by the Employee’s
guardian and legal representatives.

(b) This Award shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

 

 

 

(c) The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Award in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place.

15. Award Subject to Plan. This Award is subject to the terms of the Plan. The terms
and provisions of the Plan (including any subsequent amendments thereto) are hereby incorporated
herein by reference. In the event of a conflict between any terms and provisions contained herein
and the terms or provisions of the Plan, the applicable terms or provisions of the Plan will govern
and prevail.

16. Governing Law. This Award shall be governed by and construed in accordance with
the internal laws of the State of Indiana without reference to principles of conflict of laws. The
captions of this Award are not part of the provisions hereof and shall have no force or effect.
This Award may not be amended or modified except by a written Award executed by the parties hereto
or their respective successors and legal representatives.

17. Severability. The invalidity or unenforceability of any provision of this Award
shall not affect the validity or enforceability of any other provision of this Award.

18. No Waiver. The failure of the Employee or the Company to insist upon strict
compliance with any provision of this Award or the failure to assert any right the Employee or the
Company may have under this Award shall not be deemed to be a waiver of such provision or right or
any other provision or right of this Award.

19. Entire Award. The Employee and the Company acknowledge that this Award supersedes
any prior agreement between the parties with respect to the subject matter of this Award.

20. Counterparts. This Award may be executed in counterparts, which together shall
constitute one and the same original.

Effective Date: <date>

	 	 	 	 	 
	 	HILL-ROM HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Perry Stuckey 	 
	 	 	Senior Vice President, Chief Human Resources Officer 	 
	 
	Accepted: 	 	 	 
	 	<Name>Exhibit 10.64

EXHIBIT 10.64

FORM OF HILL-ROM HOLDINGS, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT (CEO Version)

	 	 	 
	Name of Grantee: <NAME>

	 	No. of Shares: <UNITS>
	 
	 	 
	Date of Grant: <GRANT DATE>

	 	Price per Share: <GRANT PRICE>

This Non-Qualified Stock Option Agreement (this “Agreement”) by and between HILL-ROM HOLDINGS,
INC. (the “Company”) and the Grantee named above (referred to below as “you”) evidences the grant
by the Company of a Non-Qualified Stock Option to you on the date stated above (the “Grant Date”)
and your acceptance of such Option in accordance with the provisions of the Hill-Rom Holdings, Inc.
Stock Incentive Plan (the “Plan”).

Your Option is subject to the terms and conditions set forth in the Plan (which is
incorporated herein by reference), any rules and regulations adopted by the Board of Directors of
the Company or the committee of the Board which administers the Plan (collectively, the
“Committee”), and this Agreement. In the event of any conflict between the provisions of the Plan
and the provisions of this Agreement, the terms, conditions and provisions of the Plan shall
control, and this Agreement shall be deemed to be modified accordingly. This grant becomes
effective only if you sign and return to the Company a copy of this Agreement evidencing your
understanding of the terms and conditions of your Option. Any terms used in this Agreement and not
defined have the meanings set forth in the Plan.

1. Option Grant

You have been granted an option (the “Option”) to purchase the number of shares of the
Company’s Common Stock, without par value (“Common Stock”), set forth above. The Option is a
“non-qualified stock option” and is not an incentive stock option within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

2. Option Price

The price at which you may purchase the shares of Common Stock covered by the Option is the
price per share set forth above.

3. Term of Option

Your Option expires in all events on the tenth anniversary of the Grant Date (“Expiration
Date”). Your Option, however, may terminate prior to the Expiration Date as provided in paragraphs
7 and 11 of this Agreement upon the occurrence of one of the events described in those paragraphs.
Regardless of the provisions of paragraphs 7 and 11 and notwithstanding anything else to the
contrary contained in this Agreement, in no event can your Option be exercised after the Expiration
Date.

 

 

 

4. Vesting of Option

(a) Unless it becomes exercisable on an earlier date as provided in paragraph 7 or 11 below
and subject to those paragraphs, your Option will become exercisable with respect to the first 25
percent of the shares of Common Stock covered by the Option on the first anniversary of the Grant
Date and your Option will become exercisable with respect to the second, third and fourth 25
percent of the shares covered by Option on the second, third and fourth anniversaries of the Grant
Date, respectively, provided that you are an employee of the Company or one of its Subsidiaries on
each such date.

(b) To the extent your Option has become exercisable, you may exercise the Option to purchase
all or any part of such shares at any time on or before the date the Option expires or terminates,
but in no case may fewer than 100 shares be purchased at any one time, except to purchase a residue
of fewer than 100 shares.

5. Manner of Exercise

You may exercise your Option by giving notice to the Company or its designated administrator
on a form acceptable to the Company (which may be written or electronic) specifying the number of
shares of Common Stock desired to be purchased. The notice must be accompanied by payment of the
aggregate option price for such shares, which payment may be made in the following ways: in cash;
by delivery of shares of Common Stock; by broker-assisted cashless exercise; or by a combination of
the above, in each case subject to the terms and conditions set forth in paragraphs 6(a), 6(b), and
6(c) below. Your Option will be deemed exercised on the date your notice of exercise (with
required accompaniments as described in paragraph 6) is received by the Company or its designated
administrator.

6. Satisfaction of Option Price

(a) Payment of Cash. Your Option may be exercised by payment of the option price in cash
(including cash equivalents, such as check, bank draft, money order, or wire transfer to the order
of the Company).

(b) Payment in Common Stock. Your Option may be exercised by the delivery of unencumbered
shares of Common Stock already owned by you for at least six months (either by actual delivery of
the shares or by providing an affidavit affirming ownership of the shares in form and manner
approved by the Committee). The shares will be valued at their fair market value on the date of
exercise as provided in the Plan. The stock certificates for the shares you deliver in payment of
the exercise price must be duly endorsed or accompanied by appropriate stock powers. Only stock
certificates issued solely in your name or jointly in your and your spouse’s name may be delivered.
Only whole shares may be delivered. Any portion of the exercise price in excess of the fair
market value of a whole number of shares must be paid in cash. If a certificate delivered in
exercise of your Option evidences more shares than are needed to pay the exercise price, an
appropriate replacement certificate will be issued to you for the excess shares.

(c) Broker-Assisted Cashless Exercise. You may exercise your Option by executing and
delivering the documents necessary to irrevocably authorize a broker acceptable to the Company to
sell shares of Common Stock (or a sufficient portion of such shares) acquired
upon exercise of the Option and remit to the Company a sufficient portion of the sale proceeds to
pay the entire option price and any withholding tax obligation resulting from such exercise.

 

 

 

7. Termination of Employment

(a) General. The following rules apply to your Option in the event of your death, disability,
retirement, or other termination of your employment with the Company or one of its Subsidiaries.
Authorized leaves of absence from the Company or a Subsidiary shall not constitute a termination of
employment for purposes of this Agreement. Except as set forth in Paragraph 7(d), if you are
employed by a Subsidiary of the Company and the Company ceases to own, directly or indirectly, more
than 50% of the ownership interests of the Subsidiary, your employment shall be deemed terminated
for purposes of this Agreement at such time. Paragraph 11 provides special rules which apply after
a Change in Control (as defined in that paragraph).

(i) Termination of Employment. If your employment terminates because of your voluntary
resignation (other than Retirement as that term is used below), your Option will terminate
thirty (30) days after such termination of employment. Following the termination of your
employment, no additional portions of your Option will become exercisable, and your Option
will be exercisable during such thirty (30) day period only for the number of shares with
respect to which it is exercisable on the date of the termination of your employment. If
your employment is terminated involuntarily by the Company or a Subsidiary (as applicable,
the “Employer”) other than for “Cause” (as defined below), your Option will terminate ninety
(90) days after such termination of employment. Following the termination of your
employment, no additional portions of your Option will become exercisable, and your Option
will be exercisable during such ninety (90) day period only for the number of shares with
respect to which it is exercisable on the date of the termination of your employment.
Notwithstanding anything herein to the contrary, your Option may not be exercised after the
Expiration Date. If your employment is terminated involuntarily by the Employer for
“Cause,” your Option (including any portion that has previously become exercisable) will
immediately expire and may not be exercised.

For purposes of this Agreement, “Cause” shall mean the Employer’s good faith
determination that you have:

(A) acted with gross neglect or willful misconduct in the discharge of your
duties and responsibilities or refused to follow or comply with the lawful direction
of the Employer or the terms and conditions of any applicable employment agreement,
providing such refusal is not based primarily on your good faith compliance with
applicable legal or ethical standards;

(B) acquiesced or participated in any conduct that is dishonest, fraudulent,
illegal (at the felony level), unethical, involves moral turpitude or is otherwise
illegal and involves conduct that has the potential, in the Employer’s reasonable
opinion, to cause the Company, a Subsidiary, its officers or its directors
embarrassment or ridicule;

 

 

 

(C) violated a material requirement of any Company or Subsidiary policy or
procedure, specifically including a violation of the Company’s Code of Ethics or
Associate Policy Manual;

(D) disclosed without proper authorization any trade secrets or other
confidential information;

(E) engaged in any act that, in the reasonable opinion of the Employer, is
contrary to its best interests or would hold the Company, a Subsidiary, its officers
or directors up to probable civil or criminal liability, provided that, if you act
in good faith in compliance with applicable legal or ethical standards, such actions
shall not be grounds for termination for Cause; or

(F) engaged in such other conduct recognized at law as constituting Cause.

(ii) Retirement. If, on or after the first anniversary of the Grant Date, your
employment terminates by reason of retirement after attaining age fifty-five (55) and
completion of five (5) years of employment (“Retirement”), your Option will become fully
exercisable upon such retirement and may be exercised during the period commencing on the
date of your Retirement and ending on the earlier of (A) the third anniversary of the date
of your Retirement, or (B) the Expiration Date, and at the conclusion of such period, your
Option will terminate.

(iii) Disability. If your employment terminates by reason of disability (as determined
by the Committee), your Option will become fully exercisable upon such termination of
employment and may be exercised during the period commencing on the date of your termination
of employment and ending on the earlier of (A) the third anniversary of the date of your
termination of employment, or (B) the Expiration Date, and at the conclusion of such period,
your Option will terminate.

(iv) Death. If your employment terminates by reason of death, your Option will become
fully exercisable upon such termination of employment and may be exercised during the period
commencing on the date of your death and ending on the earlier of (A) the third anniversary
of the date of your death, or (B) the Expiration Date, and at the conclusion of such period,
your Option will terminate.

(b) Adjustments by the Committee. The Committee may, in its discretion, exercised before or
after your termination of employment, declare all or any portion of your Option immediately
exercisable and/or permit all or any part of your Option to remain exercisable for such period
designated by it after the time when the Option would have otherwise terminated as provided in the
applicable portion of paragraph 7(a), but not beyond the Expiration Date.

(c) Committee Determinations. For purposes of this Agreement and the Plan, the Committee
shall have absolute discretion to determine the date and circumstances of termination of your
employment, and its determination shall be final, conclusive and binding upon you.

 

 

 

(d) Distribution of Subsidiary. Notwithstanding anything herein to the contrary, the
distribution by the Company of any or all or a part of the shares of common stock of any of its
Subsidiaries to Company shareholders (“Distribution”) shall not constitute a termination of
employment for purposes of this Agreement, and if you are employed by a Subsidiary of the Company
whose shares of common stock are included in a Distribution, your employment will be deemed to
continue for purposes of this Agreement until otherwise terminated as provided herein. In
addition, if you transfer employment from the Company to one of its Subsidiaries or from one of the
Company’s Subsidiaries to the Company or another of the Company’s Subsidiaries in connection with
or in anticipation of the Distribution, such transfer shall not constitute a termination of
employment for purposes of this Agreement, and your employment will be deemed to continue for
purposes of this Agreement until otherwise terminated as provided herein.

8. Restrictions on Option Exercise

(a) Even though your Option is otherwise exercisable, your right to exercise the Option will
be suspended if the Committee determines that your exercise of the Option would violate applicable
laws or regulations. The suspension will last until the exercise would be lawful. Any such
suspension will not extend the term of your Option. The Company has no obligation to register the
Common Stock covered by your Option under federal or state securities laws or to compensate you for
any loss caused by the implementation of this paragraph 8.

(b) Even though your Option is otherwise exercisable, the Committee may refuse to permit such
exercise if it determines, in its discretion, that any of the following circumstances is present:

(i) the shares to be acquired upon such exercise are required to be registered or
qualified under any federal or state securities law, or to be listed on any securities
exchange or quotation system, and such registration, qualification, or listing has not
occurred;

(ii) the consent or approval of any government regulatory body is required or desirable
and has not been obtained;

(iii) an agreement by you with respect to the disposition of shares to be acquired upon
exercise of your Option is determined by the Committee to be necessary or desirable in order
to comply with any legal requirements and you have not executed such agreement; or

(iv) the issuance, sale or delivery of any shares of Common Stock is or may in the
circumstances be unlawful under the laws or regulations of any applicable jurisdiction.

 

 

 

9. Income Tax Withholding

In connection with the exercise of your Option, you will be required to pay, or make other
arrangements satisfactory to the Committee, to satisfy any applicable tax withholding liability.
You may elect to have the tax withholding obligation satisfied by having the Company retain shares
of Common Stock, otherwise deliverable to you upon exercise of your Option,
having a value equal to the amount of your withholding obligation. If you fail to satisfy
your tax withholding obligation in a time and manner satisfactory to the Committee, the Company
shall have the right to withhold the required amount from your salary or other amounts payable to
you.

Any election to have shares withheld must be made (in the manner acceptable to the Company) on
or before the date you exercise your Option.

The amount of withholding tax paid by you to the Company will be paid to the appropriate
federal, state and local tax authorities in satisfaction of the withholding obligations under the
tax laws. The total amount of income you recognize by reason of exercise of the Option will be
reported to the appropriate taxing authorities in the year in which you recognize income with
respect to the exercise. Whether you owe additional tax will depend on your overall taxable income
for the applicable year and the total tax remitted for that year through withholding or by
estimated payments.

10. Non-transferability of Option

The Option granted to you by this Agreement may be exercised only by you, and may not be
assigned, pledged, or otherwise transferred by you, with the exception that in the event of your
death the Option may be exercised (at any time prior to its expiration or termination as provided
in paragraphs 3 and 7) by the executor or administrator of your estate or by a person who acquired
the right to exercise your Option by bequest or inheritance or by the laws of descent and
distribution.

11. Change in Control

Notwithstanding the provisions of paragraph 7, in the event your employment is terminated at
any time after a Change in Control (as defined in the Plan) but prior to the third anniversary
thereof (a) by the Company for any reason other than on account of your death, disability,
retirement or for Cause (as defined above) or (b) by you for Good reason (as defined in your
employment agreement), your Option will become immediately exercisable in full and will remain
exercisable for a period of ninety (90) days after your termination of employment or such longer
period as may be specified in paragraph 7, but not beyond the Expiration Date.

12. Adjustment in Certain Events

In the event of any merger, reorganization, consolidation, sale of substantially all assets,
recapitalization, stock dividend, stock split, spin-off, split-up, split-off, distribution of
assets or other change in corporate structure occurring after the effective date of this award
affecting the Common Stock underlying your award, the Board shall adjust the number and kind of
shares of Common Stock covered by your Option and the exercise price so as to maintain without
change the aggregate exercise price and such adjustment shall be conclusive and binding upon you
and the Company.

 

 

 

13. Forfeiture

Your Option and any Common Stock acquired under the Plan and any gain from the sale of any
Common Stock acquired under the Plan are required to be forfeited by you, including after exercise
or vesting, if, during your employment or within one (1) year following your
termination of employment (or any longer period specified in any applicable employment or
severance agreement with the Company), you engage in Disqualifying Conduct, which shall mean: (i)
your performance of service (including service as an employee, director, or consultant) for a
competitor of the Company or its Subsidiaries or the establishing by you of a business which
competes with the Company or its Subsidiaries, (ii) your solicitation of employees or customers of
the Company or its Subsidiaries, (iii) your improper use or disclosure of confidential information
of the Company or its Subsidiaries, or (iv) your material misconduct in the performance of your
duties for the Company or its Subsidiaries, as determined by the Committee.

14. No Guarantee of Employment

The grant of this Option does not constitute an assurance of continued employment for any
period or in any way interfere with the Company’s right to terminate your employment or to change
the terms and conditions of your employment.

15. Other Plans

You acknowledge that any income derived from your Option (or the sale of Common Stock
underlying your Option) will not affect your participation in, or benefits under, any other benefit
plan maintained by the Company.

16. Administration

The Committee has the sole power to interpret the Plan and this Agreement and to act upon all
matters relating to Options granted under the Plan. Any decision, determination, interpretation,
or other action taken pursuant to the provisions of the Plan by the Committee shall be final,
binding, and conclusive.

17. Amendment

The Committee may from time to time amend the terms of this grant in accordance with the terms
of the Plan in effect at the time of such amendment, but no amendment which is unfavorable to you
can be made without your written consent.

 

 

 

This Agreement contains the formal terms and conditions of your award and accordingly should
be retained in your files for future reference. Please sign below to evidence your acceptance of
this Option on the terms and conditions set forth in this Agreement, and return a signed copy of
this Agreement in the enclosed, self-addressed envelope.

	 	 	 	 	 
	 	BY:  	
 	 
	 	 	Perry Stuckey Senior Vice President,  	 
	 	 	Chief Human Resources Officer 	 

ACCEPTED:

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