Document:

EX-10.1

Exhibit 10.1 

WAL-MART STORES, INC.
STOCK
INCENTIVE PLAN OF 2005

As amended
January 1, 2005

         1.1
Purpose. Wal-Mart Stores, Inc. (“Wal-Mart”) believes it is important to
provide incentives to Wal-Mart’s Associates through participation in the ownership of
Wal-Mart and otherwise. This Wal-Mart Stores, Inc. Stock Incentive Plan of 2005 was
established under the name Wal-Mart Stores, Inc. Stock Incentive Plan of 1998 (“1998
Plan”). The 1998 Plan has been amended from time to time and hereby is amended,
restated, and renamed as set forth herein, effective January 1, 2005, subject to the
approval of Wal-Mart stockholders. The purpose of the Plan is to provide incentives to
certain Associates to enhance their job performance, to motivate them to remain or become
associated with Wal-Mart and its Affiliates, and to increase the success of Wal-Mart. The
Plan is not limited to executive officers of Wal-Mart but will be available to provide
incentives to any Associate that the Committee believes has made or may make a significant
contribution to Wal-Mart or an Affiliate of Wal-Mart. 

DEFINITIONS

         2.1
“Affiliate” means any corporation, partnership, limited liability company,
business trust, other entity or other business association that is now or hereafter
controlled by Wal-Mart. 

         2.2
“Associate” means any person employed by Wal-Mart or any Affiliate.  

         2.3
“Board” means the Board of Directors of Wal-Mart.  

         2.4
“Cause” means the Associate’s commission of any act deemed detrimental
to the best interest of Wal-Mart or any Affiliate or failure to perform satisfactorily his
or her assigned duties, each as determined in the sole discretion of the Committee. 

         2.5
“Code” means the Internal Revenue Code of 1986, as amended.  

         2.6
“Committee” means (a) as to Associates who are Section 16 Persons and as to
Covered Employees whose awards are intended to be Qualified Performance Based Awards, the
Compensation, Nominating and Governance Committee of the Board, and (b) as to all other
Associates, the Stock Option Committee of the Board, unless the Board delegates such
administration of the Plan or a particular feature of the Plan to another Committee of the
Board. 

         2.7
“Continuous Status as an Associate” means the absence of any interruption or
termination of the employment relationship between an Associate and Wal-Mart or an
Affiliate. Continuous Status as an Associate shall not be considered interrupted in the
case of (a) sick leave, (b) military leave, or (c) any other leave of absence approved by
Wal-Mart or an Affiliate; provided that leave does not exceed one year, unless
re-employment upon the expiration of that leave is guaranteed by contract or law or unless
provided otherwise by a policy of Wal-Mart or an Affiliate. 

         2.8
“Covered Employee” has the meaning set forth in Code Section 162(m)(3).  

         2.9
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations adopted thereunder. 

 

 

Exhibit 10.1 

         2.10
“Fair Market Value” means, as of any date, the composite closing sales price
for a Share (a) on the New York Stock Exchange (or if no trading in Shares occurred on
that date, on the last day on which Shares were traded) or (b) if the Shares are not
listed for trading on the New York Stock Exchange, the value of a Share as determined in
good faith by Committee. 

         2.11
“Fiscal Year” means the 12-month period beginning on each February 1 and
ending on the following January 31. 

         2.12
“Incentive Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Code Section 422. 

         2.13
“Nonqualified Option” means an Option not intended to be treated as an
Incentive Stock Option. 

         2.14
“Notice of Plan Award”  means the agreement or other document evidencing and
governing any Plan Award. 

         2.15
“NYSE”  means the New York Stock Exchange or any successor organization
thereto. 

         2.16
“Option” means a stock option to acquire a certain number of the Subject
Shares granted pursuant to the Plan. 

         2.17
“Parent/Subsidiary Corporation”  means a “parent corporation”
(within the meaning of Code Section 424(e)) or a “subsidiary corporation”
(within the meaning of Code Section 424(f)) of Wal-Mart, in each case determined as of the
date of grant. 

         2.18
“Performance Goals” means the pre-established objective performance goals
established by the Committee for each Performance Period. The Performance Goals may be
based upon the performance of Wal-Mart, of any Affiliate, or a division thereof, or of an
individual Recipient, using one or more of the Performance Measures selected by the
Committee. Separate Performance Goals may be established by the Committee for Wal-Mart or
an Affiliate, or division thereof, or an individual. The Performance Goals shall include
one or more threshold Performance Goals under which no portion of the Plan Award shall
become vested, be transferred, retained, or the value of which is to be paid as provided
by the Plan and Notice of Plan Award, if the threshold goals or goals are not achieved.
With respect to Recipients who are not Covered Employees, the Committee may establish
other subjective or objective goals, including individual Performance Goals, which it
deems appropriate. The preceding sentence shall also apply to Covered Employees with
respect to any Plan Awards not intended at the time of grant to be Qualified Performance
Based Awards. 

         Performance
Goals may be set at a specific level, or may be expressed as a relative percentage to the
comparable measure at comparison companies or a defined index. Performance Goals shall,
to the extent applicable, be based upon generally accepted accounting principles, but
shall be adjusted by the Committee to take into account the effect of the following:
changes in accounting standards that may be required by the Financial Accounting
Standards Board after the Performance Goal is established; realized investment gains and
losses; extraordinary, unusual, non-recurring, or infrequent items; currency
fluctuations; acquisitions; divestitures; litigation losses; financing activities;
expenses for restructuring or productivity initiatives; other non-operating items; new
laws, cases or regulatory developments that result in unanticipated items of  

 

 

Exhibit 10.1 

gain, loss, income, or expense;
executive severance arrangements; investment returns relating to investment vehicles
which are unaffiliated with Wal-Mart, an Affiliate, or divisional operating strategy; and
other items as the Committee determines to be required so that the operating results of
Wal-Mart, a division, or an Affiliate shall be computed on a comparative basis from
Performance Period to Performance Period. Determination by the Committee or its delegate
shall be final and conclusive on all parties, but shall be based on relevant objective
information or financial data.  

         2.19
“Performance Measures” means one or more of the following criteria, on which
Performance Goals may be based: (a)earnings (either in the aggregate or on a per-Share
basis, reflecting dilution of Shares as the Committee deems appropriate and, if the
Committee so determines, net of or including dividends) before or after interest and taxes
(“EBIT”) or before or after interest, taxes, depreciation, and amortization
(“EBITDA”); (b) gross or net revenue or changes in annual revenues; (c) cash
flow(s) (including either operating or net cash flows); (d) financial return ratios; (e)
total stockholder return, stockholder return based on growth measures or the attainment by
the Shares of a specified value for a specified period of time, Share price, or Share
price appreciation; (f) earnings growth or growth in earnings per Share; (g) return
measures, including return or net return on assets, net assets, equity, capital,
investment, or gross sales; (h) adjusted pre-tax margin; (i) pre-tax profits; (j)
operating margins; (k) operating profits; (l) operating expenses; (m) dividends; (n) net
income or net operating income; (o) growth in operating earnings or growth in earnings per
Share; (p) value of assets; (q) market share or market penetration with respect to
specific designated products or product groups and/or specific geographic areas; (r)
aggregate product price and other product measures; (s) expense or cost levels, in each
case, where applicable, determined either on a company-wide basis or in respect of any one
or more specified divisions; (t) reduction of losses, loss ratios or expense ratios; (u)
reduction in fixed costs; (v) operating cost management; (w) cost of capital; (x) debt
reduction; (y) productivity improvements; (z) average inventory turnover; (aa)
satisfaction of specified business expansion goals or goals relating to acquisitions or
divestitures; (bb) customer satisfaction based on specified objective goals or a
Wal-Mart-sponsored customer survey; (cc) Associate diversity goals; (dd) Associate
turnover; (ee) specified objective social goals; or (ff) safety record. 

         Performance
Measures may be applied on a pre-tax or post-tax basis, and based upon the performance of
Wal-Mart, of any Affiliate, of a division thereof, or other business unit, or of an
individual Recipient. The Committee may, at time of grant, in the case of a Plan Award
intended to be a Qualified Performance Based Award, and in the case of other grants, at
any time, provide that the Performance Goals for such Plan Award may include or exclude
items to measure specific objectives, such as losses from discontinued operations,
extraordinary gains or losses, the cumulative effect of accounting changes, acquisitions
or divestitures, foreign exchange impacts, and any unusual nonrecurring gain or loss. 

         2.20
“Performance Period” means that period established by the Committee during
which the attainment of Performance Goals specified by the Committee with respect to a
Plan Award are to be measured. A Performance Period may be a 12-month period or a longer
or shorter period. 

         2.21
“Performance Share” means the right to receive the value of a Share upon
attainment of specified Performance Goals. 

 

 

Exhibit 10.1 

         2.22
“Plan” means this Wal-Mart Stores, Inc. Stock Incentive Plan of 2005, as
amended from time to time. 

         2.23
“Plan Award” means an award or right granted under the plan consisting of an
Option, Restricted Stock, Restricted Stock Right, Stock Appreciation Right, or Performance
Share. The terms and conditions applicable to a Plan Award shall be set forth in the
applicable Notice of Plan Award. 

         2.24
“Qualified Performance Based Award” means a Plan Award to a Covered Employee
or to an Associate that the Committee determines may be a Covered Employee at the time the
Wal-Mart or an Affiliate would be entitled to a deduction for such Plan Award, which is
intended to provide “qualified performance-based compensation” within the
meaning of Code Section 162(m). For any Performance Period for which a Plan Award is
intended to be a Qualified Performance Based Award, Performance Goals shall be established
by the Committee no later than 90 days after the beginning of the Performance Period to
which the Performance Goals pertain and while the attainment of the Performance Goals is
substantially uncertain, and in any event no later than the date 25% of the Performance
Period has elapsed. 

         2.25
“Recipient” means an Associate who has received a Plan Award.  

         2.26
“Restricted Stock” means Shares awarded to a Recipient pursuant to a Plan
Award of Restricted Stock that are subject to a Restriction and all non-cash proceeds of
those Shares that are subject to a Restriction. 

         2.27
“Restricted Stock Right”  means a right awarded to an Associate that, subject
to Section 8.2, may result in Associate’s ownership of Shares upon, but not before,
the lapse of Restrictions related thereto. 

         2.28
“Restriction” means any restriction on a Recipient’s free enjoyment of
the Shares or other rights underlying a Plan Award. Restrictions may be based on the
passage of time or the satisfaction of performance criteria or the occurrence of one or
more events or conditions, and shall lapse separately or in combination upon such
conditions and at such time or times, in installments or otherwise, as the Committee shall
specify. Plan Awards subject to a Restriction shall be forfeited if the Restriction does
not lapse prior to such date or the occurrence of such event or the satisfaction of such
other criteria as the Committee shall determine. 

         2.29
“Section 16 Person” means any individual who is required to file reports
under Section 16 of the Exchange Act. 

         2.30
“Securities Act” means the Securities Act of 1933, as amended and the rules
and regulations adopted thereunder. 

         2.31
“Share” means a share of the common stock, $.10 par value per share, of
Wal-Mart. 

         2.32
“Stock Appreciation Right” means a right granted to a Recipient pursuant to
the Stock Appreciation Rights feature of the Plan. 

         2.33
“Subject Shares” means such term as defined in Section 3.1.  

 

 

Exhibit 10.1 

SHARES
SUBJECT TO THE PLAN

         3.1
Shares Subject to the Plan. Subject to Section 11.8, the sum of (a) 50,000,000 Shares
plus (b) the number of remaining Shares under the 1998 Plan (not subject to outstanding
Plan Awards and not delivered out of Shares reserved thereunder) as of the date of
stockholder approval of the Plan (collectively, the “Subject Shares”) are
reserved for delivery under the Plan. The Subject Shares may be authorized, but unissued
Shares, treasury Shares held by Wal-Mart or an Affiliate, or Shares acquired on the open
market, including Shares acquired on the open market by forwarding cash to an independent
broker who will purchase Shares on behalf, and in the name of the Recipient. Shares
reserved for delivery pursuant to a Plan Award or any rights thereto, whether under the
1998 Plan or the Plan, that expire, are forfeited or otherwise are no longer exercisable
or that are reacquired by Wal-Mart pursuant to the terms of the 1998 Plan, the Plan, or a
Plan Award, may be the subject of a new Plan Award. No fractional Shares may be delivered
under the Plan. 

         Notwithstanding
the foregoing, (a) Shares already owned by a Recipient and used to pay all or a portion of
the exercise price of Shares subject to an Option, and (b) any other Shares reacquired by
Wal-Mart after such Shares have been issued (or, in the case of Open Market Shares, have
been delivered), other than Restricted Stock that is forfeited or reacquired by Wal-Mart
without lapse of the Restrictions, shall not become Subject Shares to the extent such
Shares are withheld, tendered, or reacquired by Wal-Mart after June 3, 2015. 

ADMINISTRATION

         4.1
Administration. The Committee will administer the Plan and will grant all Plan Awards.
The Plan and Plan Awards to Section 16 Persons shall be administered by the Committee in
compliance with Rule 16b-3 adopted under the Exchange Act (“Rule 16b-3”). 

         4.2
Duties and Powers. The Committee shall have these duties and powers as to the Plan: 

	 	       (a) 	to
establish rules, procedures, and forms governing the Plan;

	 	       (b) 	to
interpret and apply the provisions of the Plan and any Plan Award;

	 	       (c) 	to
recommend amendments of the Plan to the Board;

	 	       (d) 	to
determine those Associates who will be Recipients and what Plan Awards will be made to
them;

	 	       (e) 	to
set the terms and conditions of any Plan Award and to determine and certify whether, and
the extent to which, any               such terms and conditions have been satisfied;

	 	       (f) 	to
determine the Fair Market Value of the Shares;

	 	       (g) 	to
amend the terms of any Plan Award or to waive any conditions or obligations of a
Recipient under or with respect to               any Plan Award;

	 	       (h) 	to
make such adjustments or modifications to Plan Awards to Recipients who are working
outside the United States as               are advisable to fulfill the purposes of the
Plan or to comply with applicable local law and to establish sub-plans               for
Associates outside 

 

 

Exhibit 10.1 

	 	
the
United States with such provisions as are consistent with the Plan as may be suitable in
              other jurisdictions; 

	 	       (i) 	to
correct any defect or supply any omission; and

	 	       (j) 	take
any other action it deems necessary or advisable.

         4.3 Delegation. Except
for the administration of Qualified Performance Based Awards and matters under the Plan
affected by Section 16 of the Exchange Act and the rules adopted thereunder, the Committee
may delegate ministerial duties under the Plan to one or more administrators, who may be
Associates of Wal-Mart, and may delegate non-ministerial duties to an officer of Wal-Mart;
provided that the delegate of non-ministerial duties (a) shall not be authorized to make
Plan Awards to himself or herself, and (b) in any Fiscal Year shall not make Plan Awards
in excess of 100,000 Shares in the aggregate or 1,000 Shares to any one Recipient. 

         4.4
Determinations Binding. All actions taken or determinations made by the Committee, in
good faith, with respect to the Plan, a Plan Award or any Notice of Plan Award shall not
be subject to review by anyone, but shall be final, binding and conclusive upon all
persons interested in the Plan or any Plan Award. 

PARTICIPATION

         5.1
 All Associates whom the Committee determines have the potential to contribute
significantly to the success of Wal-Mart or an Affiliate, are eligible to participate in
the Plan as well as Non-Management Directors, except that Non-Management Directors may not
receive Incentive Stock Options. An Associate or non-management director may be granted
one or more Plan Awards, unless prohibited by applicable law and subject to the
limitations under Code Section 422 with respect to Incentive Stock Options. For any
Performance Period for which Plan Awards are intended to be Qualified Performance Based
Awards, the Committee shall designate the Associates eligible to be granted Plan Awards no
later than the 90th day of the Fiscal Year (or in the case of a Performance
Period other than a Fiscal year, after not later than the date 25% of the Performance
Period has elapsed). 

STOCK OPTIONS

         6.1
Term of Options. Wal-Mart may grant Options covering Subject Shares to Associates. The
term of each Option shall be the term stated in the Notice of Plan Award; provided,
however, that in the case of an Incentive Stock Option, the term shall be no more than 10
years from the date of grant unless the Incentive Stock Option is granted to a Recipient
who, at the time of the grant, owns stock representing more than 10% of the voting power
of all classes of stock of Wal-Mart or any Parent/Subsidiary Corporation, in which case
the term may not exceed 5 years from the date of grant. 

         Each
Option shall be a Nonqualified Option unless designated otherwise in the Notice of Plan
Award. Notwithstanding the designation of an Option, if the aggregate Fair Market Value of
Shares subject to Incentive Stock Options that are exercisable for the first time by a
Recipient during a calendar year exceeds $100,000 (whether due to the terms of the Plan
Award, acceleration of exercisability, miscalculation or error), the excess Options shall
be treated as Nonqualified Options. 

 

 

Exhibit 10.1 

         6.2
Option Exercise Price and Consideration. The per Share exercise price of an Option
shall be determined by the Committee in its discretion, except that the per Share exercise
price for an Incentive Stock Option shall be 100% of the Fair Market Value of a Share on
the date of grant except that, with respect to an Incentive Stock Option granted to an
Associate who owns stock representing more than 10% of the voting power of all classes of
stock of Wal-Mart or any Parent/Subsidiary Corporation at the time of the grant, the per
Share exercise price shall be no less than 110% of the Fair Market Value per Share on the
date of grant. The type of consideration in which the exercise price of an Option is to be
paid shall be determined by the Committee in its discretion, and, in the case of an
Incentive Stock Option, shall be determined at the time of grant. 

         6.3
Exercise of Options. An Option shall be deemed to be exercised when the person entitled
to exercise the Option gives notice of exercise to Wal-Mart in accordance with the
Option’s terms and Wal-Mart receives full payment for the Shares as to which the
Option is exercised or other provision for such payment is made in accordance with
procedures established by the Committee from time to time. 

         6.4
Termination of Employment. If a Recipient’s Continuous Status as an Associate is
terminated for any reason other than Cause, the Recipient may exercise Options that are
not subject to Restrictions as of the termination date to the extent set out in
Recipient’s Notice of Plan Award. Incentive Stock Options may be exercised only
within 60 days (or other period of time determined by the Committee at the time of grant
of the Option and not exceeding 3 months) after the date of the termination (but in no
event later than the expiration date of the term of that Option as set forth in the Notice
of Plan Award), and only to the extent that Recipient was entitled to exercise the
Incentive Stock Option at the date of that termination. To the extent the Recipient is not
entitled to or does not exercise an Option at the date of that termination or within the
time specified herein or in the Notice of Plan Award, the Option shall terminate. During a
period for which the Recipient is subject to administrative suspension from employment,
the Recipient’s right to exercise Options will be suspended. 

         6.5
Disability of Recipient. Notwithstanding the provisions of the immediately preceding
paragraph, in the case of a Recipient’s Incentive Stock Option, if the
Recipient’s Continuous Status as an Associate is terminated as a result of his or her
total and permanent disability (as defined in Code Section 22(e)(3)), the Recipient may,
but only within 12 months from the date of that termination (but in no event later than
the expiration date of the term of that Option as set forth in the Notice of Plan Award),
exercise an Incentive Stock Option to the extent otherwise entitled to exercise it at the
date of that termination. To the extent the Recipient is not entitled to exercise an
Incentive Stock Option at the date of termination, or if Recipient does not exercise that
Incentive Stock Option to the extent so entitled within the time specified herein, the
Incentive Stock Option shall terminate. 

         6.6
Non-transferability of Options. An Option may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner except by testamentary devise or
by the laws of descent or distribution or, in those circumstances expressly permitted by
the Committee, to a Permitted Transferree. For this purpose, a “Permitted Transferree” means
any member of the Immediate Family of the Recipient, any trust of which all of the
primary beneficiaries are the Recipient or members of his or her Immediate Family or any
partnership of which all of the  

 

 

Exhibit 10.1 

partners or members are the
Recipient or members of his or her Immediate Family. The “Immediate Family” of
a Recipient means the Recipient’s spouse, children, stepchildren, grandchildren,
parents, stepparents, siblings, grandparents, nieces and nephews, or the spouse of any of
the foregoing individuals.  

         6.7
Withholding. The Committee may withhold in accordance with Section 11.9 any amounts
necessary to collect any withholding taxes upon any taxable event relating to an Option. 

RESTRICTED
STOCK

         7.1
Grant of Restricted Stock. Wal-Mart may grant Restricted Stock to those Associates the
Committee may select in its sole discretion. Each Plan Award of Restricted Stock shall
have those terms and conditions that are expressly set forth in, or are required by, the
Plan and any other terms and conditions as the Committee may determine in its discretion. 

         7.2
Dividends; Voting. While any Restriction applies to any Recipient’s Restricted
Stock, (a) unless the Committee provides otherwise, the Recipient shall receive the
dividends paid on the Restricted Stock and shall not be required to return those dividends
to Wal-Mart in the event of the forfeiture of the Restricted Stock, (b) the Recipient
shall receive the proceeds of the Restricted Stock in any stock split, reverse stock
split, recapitalization, or other change in the capital structure of Wal-Mart, which
proceeds shall automatically and without need for any other action become Restricted Stock
and be subject to all Restrictions then existing as to the Recipient’s Restricted
Stock and (c) the Recipient shall be entitled to vote the Restricted Stock during the
Restriction period. 

         7.3
Delivery of Restricted Stock. The Restricted Stock will be delivered to the Recipient
subject to the understanding that while any Restriction applies to the Restricted Stock,
the Recipient shall not have the right to sell, transfer, assign, convey, pledge,
hypothecate, grant any security interest in or mortgage on, or otherwise dispose of or
encumber any shares of Restricted Stock or any interest therein. As a result of the
retention of rights in the Restricted Stock by Wal-Mart, except as required by any law,
neither any shares of the Restricted Stock nor any interest therein shall be subject in
any manner to any forced or involuntary sale, transfer, conveyance, pledge, hypothecation,
encumbrance, or other disposition or to any charge, liability, debt, or obligation of the
Recipient, whether as the direct or indirect result of any action of the Recipient or any
action taken in any proceeding, including any proceeding under any bankruptcy or other
creditors’ rights law. Any action attempting to effect any transaction of that type
shall be void. 

         7.4
Forfeiture. Unless expressly provided for in the Plan Award, any Restricted Stock held
by the Recipient at the time the Recipient ceases to be an Associate for any reason shall
be forfeited by the Recipient to Wal-Mart and automatically re-conveyed to Wal-Mart. 

         7.5
Withholding. The Committee may withhold in accordance with Section 11.9 any amounts
necessary to collect any withholding taxes upon any taxable event relating to Restricted
Stock. 

         7.6
Compliance with Law. The making of Plan Award of Restricted Stock and delivery of any
Restricted Stock is subject to compliance by Wal-Mart with all applicable laws. Wal-Mart
need not issue or transfer Restricted Stock pursuant to the Plan unless Wal-Mart’s
legal counsel has approved all legal matters in connection with the delivery of the
Restricted Stock. 

 

 

Exhibit 10.1 

         7.7
Evidence of Share Ownership. The Restricted Stock will be book-entry Shares only unless
the Committee decides to issue certificates to evidence shares of the Restricted Stock.
Any stock certificate(s) representing the Restricted Stock issued to a Recipient that is
so issued shall bear the following legend: 

	 	
THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO THE WAL-MART STORES,
INC. STOCK INCENTIVE PLAN OF 2005 (THE “PLAN”) AND ARE SUBJECT TO SUBSTANTIAL
RESTRICTIONS ON THEIR TRANSFER AND TO FORFEITURE TO WAL-MART STORES, INC. IF CERTAIN
CONDITIONS ARE NOT MET. THOSE RESTRICTIONS AND CONDITIONS ARE SET FORTH IN THE PLAN AND IN
THE PLAN AWARD OF RESTRICTED STOCK PURSUANT TO WHICH THOSE SHARES WERE ISSUED TO THE
REGISTERED HOLDER THEREOF. 

	 	
Wal-Mart
will place stop-transfer instructions with respect to all Restricted Stock on its stock
transfer records.  

         7.8
Deferral of Restricted Stock. At the time of grant of Restricted Stock (or at such
earlier or later time as the Committee determines to be appropriate in light of the
provisions of Code Section 409A), the Committee may permit a) Recipient of a Restricted
Stock Award to defer his or her Restricted Stock in accordance with rules and procedures
established by the Committee. Alternatively, the Committee may, in its discretion and at
the times provided above, permit an individual who would have been a Recipient of a Plan
Award of Restricted Stock, to elect instead to receive an equivalent Plan Award of
Restricted Stock Rights and may permit the Recipient to elect to defer receipt of Shares
under the Restricted Stock Rights in accordance with Section 8.8. 

RESTRICTED
STOCK RIGHTS

         8.1
Grant of Restricted Stock Rights. Wal-Mart may grant Restricted Stock Rights to those
Associates as the Committee may select in its sole discretion. Each Plan Award of
Restricted Stock Rights shall have those terms and conditions that are expressly set forth
in, or are required by, the Plan and the Notice of Plan Award, as the Committee may
determine in its discretion. The Restrictions imposed shall take into account potential
tax treatment under Code Section 409A. 

         8.2
Issuance of Restricted Stock Rights. Until the Restricted Stock Right is released from
Restrictions and any Shares subject to that right are delivered to the Associate, the
Associate shall not have any beneficial ownership in any Shares subject to the Restricted
Stock Right, nor shall the Associate have the right to sell, transfer, assign, convey,
pledge, hypothecate, grant any security interest in or mortgage on, or otherwise dispose
of or encumber any Restricted Stock Right or any interest therein. Except as required by
any law, no Restricted Stock Right nor any interest therein shall be subject in any manner
to any forced or involuntary sale, transfer, conveyance, pledge, hypothecation,
encumbrance, or other disposition or to any charge, liability, debt, or obligation of the
Associate, whether as the direct or indirect result of any action of the Associate or any
action taken in any proceeding, including any proceeding under any bankruptcy or other
creditors’ rights law. Any action attempting to effect any transaction of that type
shall be void. 

 

 

Exhibit 10.1 

         8.3
Payments to Recipients. Upon the lapse of the Restrictions, the Recipient of Restricted
Stock Rights shall, except as noted below, be entitled to receive, as soon as
administratively practical, (a) that number of Shares subject to the Plan Award that are
no longer subject to Restrictions, (b) in cash in an amount equal to the Fair Market Value
on the date the Plan Award is settled of the number of Shares subject to the Plan Award
that are no longer subject to Restrictions, or (c) any combination of cash and Shares, as
the Committee shall determine in its sole discretion and specify at the time the Plan
Award is granted. Where in the judgment of the Committee, it is in the interests of
Wal-Mart to do so, a grant of Restricted Stock Rights may provide that Wal-Mart purchase
Shares on the open market on behalf of an Associate in accordance with Section 11.1
(“Open Market Shares”). 

         8.4
Forfeiture. Restricted Stock Rights and the entitlement to Shares, cash, or any
combination thereunder will be forfeited and all rights of an Associate to such Restricted
Stock Rights and the Shares thereunder will terminate if the applicable Restrictions are
not satisfied. 

         8.5
Limitation of Rights. A Recipient of Restricted Stock Rights is not entitled to any
rights of a holder of the Shares (e.g., voting rights and dividend rights), prior to the
receipt of such Shares pursuant to the Plan. The Committee may, however, provide in the
Notice of Plan Award that the Recipient shall be entitled to receive dividend equivalent
payments on Restricted Stock Rights, on such terms and conditions as the Notice of Plan
Award shall specify. 

         8.6
Withholding. The Committee may withhold in accordance with Section 11.9 any amounts
necessary to collect any withholding taxes upon any taxable event relating to the
Restricted Stock Right. 

         8.7
Compliance with Law. The granting of Restricted Stock Rights and the delivery of any
Shares or the purchase of Open Market Shares subject thereto is subject to compliance by
Wal-Mart with all applicable laws. 

         8.8
Deferral of Restricted Stock Rights. At the time of grant of Restricted Stock Rights
(or at such earlier or later time as the Committee determines to be appropriate in light
of the provisions of Code Section 409A), the Committee may permit the Recipient to elect
to defer receipt of the Shares or cash to be delivered upon lapse of the Restrictions
applicable to the Restricted Stock Rights in accordance with rules and procedures
established by the Committee. Such rules and procedures shall take into account potential
tax treatment under Code Section 409A, and may provide for payment in Shares or cash. 

STOCK
APPRECIATION RIGHTS

         9.1
Grant. Wal-Mart may grant Stock Appreciation Rights to those Associates as the
Committee selects in its sole discretion, on any terms and conditions the Committee deems
desirable. A Recipient granted a Stock Appreciation Right will be entitled to receive
payment in an amount equal to (a) the excess of the Fair Market Value of a Share on the
date on which the Recipient properly exercises Stock Appreciation Rights that are no
longer subject to Restrictions over the Fair Market Value of a Share on the date of grant
of the Recipient’s Stock Appreciation Rights, (b) a predetermined amount that is
less than that excess, or (c) to the extent the Committee deems appropriate in light of
potential taxes under Code Section 409A, any other amount as may be set by the Committee,
multiplied by the number of Stock Appreciation Rights  

 

 

Exhibit 10.1 

as
to which the Recipient exercises the Stock Appreciation Right. The Committee may provide
that payment with respect to an exercised Stock Appreciation Right may occur on a date
which is different than the exercise date, and may provide for additional payment in
recognition of the time value of money and any delay between the exercise date and the
payment date.  

         9.2
Award Vesting and Forfeiture. The Committee shall establish the Restrictions, if any,
applicable to Stock Appreciation Rights. Stock Appreciation Rights and the entitlement to
Shares thereunder will be forfeited and all rights of an Associate to such Stock
Appreciation Rights and the Shares thereunder will terminate if any applicable
Restrictions in the Plan or Notice of Plan Award are not satisfied. 

         9.3
Beneficial Ownership. The Recipient of any Stock Appreciation Rights shall not have any
beneficial ownership in any Shares subject to such Plan Awards until Shares are delivered
in satisfaction of the Plan Award nor shall the Recipient have the right to sell,
transfer, assign, convey, pledge, hypothecate, grant any security interest in or mortgage
on, or otherwise dispose of or encumber any Stock Appreciation Rights or any interest
therein. Except as required by any law, neither the Stock Appreciation Rights nor any
interest therein shall be subject in any manner to any forced or involuntary sale,
transfer, conveyance, pledge, hypothecation, encumbrance, or other disposition or to any
charge, liability, debt, or obligation of the Recipient, whether as the direct or indirect
result of any action of the Recipient or any action taken in any proceeding, including any
proceeding under any bankruptcy or other creditors’ rights law. Any action attempting
to effect any transaction of that type shall be void. 

         9.4
Election to Receive Payments. A Recipient of a Stock Appreciation Right may elect to
receive a payment to which the Recipient is entitled under the Plan Award by giving notice
of such election to the Committee in accordance with the rules established by the
Committee. 

         9.5
Payments to Recipients. Subject to the terms and conditions of the Notice of Plan Award
granting the Stock Appreciation Rights, a payment to a Recipient with respect to Stock
Appreciation Rights may be made (a) in cash, (b) in Shares having an aggregate Fair Market
Value on the date on which the Stock Appreciation Rights are settled equal to the amount
of the payment to be made under the Plan Award, or (c) any combination of cash and Shares,
as the Committee shall determine in its sole discretion and specify at the time the Plan
Award is granted. The Committee shall not make any payment in Shares if such payment would
result in any adverse tax or other legal effect as to this Plan or Wal-Mart. 

         9.6
Limitation of Rights. A Recipient of Stock Appreciation Rights is not entitled to any
rights of a holder of the Shares (e.g. voting rights and dividend rights), prior to the
receipt of such Shares pursuant to the Plan. 

         9.7
Withholding. The Committee may withhold in accordance with Section 11.9 any amounts
necessary to collect any withholding taxes upon any taxable event relating to the Stock
Appreciation Rights. 

         9.8
Deferral of Stock Appreciation Rights. At the time of grant of a Plan Award of Stock
Appreciation Rights (or at such earlier or later time as would the Committee determines
to be appropriate in light of the provisions of Code Section 409A), the Committee may
permit a Recipient to elect to defer the Shares or cash to be delivered in settlement of
a Stock 

 

 

Exhibit 10.1 

Appreciation Right in accordance
with rules and procedures established by the Committee. Such rules and procedures shall
take into account potential tax treatment under Code Section 409A.  

PERFORMANCE
SHARES

         10.1
Grant. Wal-Mart may grant Performance Shares to such Associates as it may select in its
sole discretion, on any terms and conditions the Committee deems desirable. Each Plan
Award of Performance Shares shall have those terms and conditions that are expressly set
forth in, or are required by, the Plan and Notice of Plan Award. 

         10.2
Performance Goals. The Committee shall set Performance Goals which, depending on the
extent to which they are met during a Performance Period, will determine the number of
Performance Shares that will be delivered to the Recipient at the end of the Performance
Period. The Performance Goals shall be set at threshold, target, and maximum performance
levels, with the number of Performance Shares to be delivered tied to the degree of
attainment of the various performance levels under the various Performance Goals during
the Performance Period. No payment shall be made with respect to a Performance Share if
the threshold performance level is not attained. 

         10.3
Beneficial Ownership. The Recipient of any Plan Award of Performance Shares shall
neither have any beneficial ownership in any Shares subject to such Plan Awards until
Shares are delivered in satisfaction of the Plan Award nor shall the Recipient have the
right to sell, transfer, assign, convey, pledge, hypothecate, grant any security interest
in or mortgage on, or otherwise dispose of or encumber any Plan Award of Performance
Shares or any interest therein. Except as required by any law, neither the Performance
Shares nor any interest therein shall be subject in any manner to any forced or
involuntary sale, transfer, conveyance, pledge, hypothecation, encumbrance, or other
disposition or to any charge, liability, debt, or obligation of the Recipient, whether as
the direct or indirect result of any action of the Recipient or any action taken in any
proceeding, including any proceeding under any bankruptcy or other creditors’ rights
law. Any action attempting to effect any transaction of that type shall be void. 

         10.4
Determination of Achievement of Performance Goals. The Committee shall, promptly after
the date on which the necessary financial, individual or other information for a
particular Performance Period becomes available, determine and certify the degree to which
each of the Performance Goals have been attained. 

         10.5
Payment of Performance Shares. After the applicable Performance Period has ended, the
Recipient of a Plan Award of Performance Shares shall be entitled to payment based on the
performance level attained with respect to the Performance Goals applicable to the Plan
Award of Performance Shares. The Committee may, in its sole discretion, reduce, eliminate,
or increase any amount or Shares under a Plan Award of Performance Shares for any
individual or group, except that such amount or Shares intended to be a Qualified
Performance Based Award may not be increased above the amount provided in the Notice of
Plan Award. Unless deferred in accordance with Section 10.9, Performance Shares shall be
settled as soon as practicable after the Committee determines and certifies the degree of
attainment of Performance Goals for the Performance Period. 

         The
Committee shall have the discretion and authority to make adjustments to any Plan Award
of Performance Shares in circumstances where, during the Performance Period: (a) a  

 

 

Exhibit 10.1 

Recipient leaves Wal-Mart or an
Affiliate and is subsequently rehired; (b) a Recipient transfers between eligible
positions with different Incentive Percentages or Performance Goals; (c) a Recipient
transfers to a position not eligible to participate in the Plan; (d) a Recipient becomes
eligible, or ceases to be eligible, for an incentive from another incentive plan
maintained by Wal-Mart or an Affiliate; (e) a Recipient is on a leave of absence; and (f)
similar circumstances deemed appropriate by the Committee, consistent with the purpose
and terms of the Plan; provided, however, that the Committee shall not be authorized to
increase the amount of the Plan Award of Performance Shares payable to a Covered Employee
that would otherwise be payable if the amount was intended to be Qualified Performance
Based Award.  

         10.6
Payments to Recipients. Subject to the terms and conditions of the Notice of Plan
Award, payment to a Recipient with respect to a Plan Award of Performance Shares may be
made (a) in Shares, (b) in cash or by check equal to the Shares’ Fair Market Value on
the date the Performance Shares are settled, or (c) any combination of cash and Shares, as
the Committee shall determine at any time in its sole discretion. 

         10.7
Limitation of Rights. A Recipient of a Plan Award of Performance Shares is not entitled
to any rights of a holder of the Shares (e.g. voting rights and dividend rights), prior to
the receipt of such Shares pursuant to the Plan. No dividend equivalents will be paid with
respect to Performance Shares. 

         10.8
Withholding. The Committee may withhold in accordance with Section 11.9 any amounts
necessary to collect any withholding taxes upon any taxable event relating to Performance
Shares. 

         10.9
Deferral of Shares or Payout. At the time of grant of Performance Shares (or at such
earlier or later time as the Committee determines to be appropriate in light of Code
Section 409A), the Committee may permit the Recipient to elect to defer delivery of Shares
(or payment of cash) with respect to the Plan Award in accordance with such rules and
procedures established by the Committee. Such rules and procedures shall take into account
potential tax treatment under Code Section 409A. 

MISCELLANEOUS

         11.1
Issuance of Stock Certificates; Book-Entry; or Purchase of Stock.  

	 	(a) 	If
a Recipient has the right to the delivery of any Shares pursuant to any Plan Award,
Wal-Mart shall issue or cause               to be issued a stock certificate or a
book-entry crediting Shares to the Recipient’s account promptly upon the
              exercise of the Plan Award or the right arising under the Plan Award. 

	 	(b) 	A
Recipient’s right to Open Market Shares pursuant to a Plan Award of Restricted Stock
Rights, shall not be satisfied               by Wal-Mart’s delivery of Shares but
rather Wal-Mart shall purchase the Shares on the open market on behalf of the
              Associate by forwarding cash to an independent broker who will in turn
purchase the Shares on the open market on               behalf, and in the name, of the
Associate. 

 

 

Exhibit 10.1 

         11.2
Compliance with Code Section 162(m).  

	 	       (a) 	To
the extent awards to Covered Employees are intended to be Qualified Performance Based
Awards, the material terms of               the Performance Goals under which awards are
paid (and any material changes in material terms) shall be disclosed to               and
approved by Wal-Mart’s stockholders in a separate vote. Material terms include the
eligible Associates specified               in Section 5.1, the Performance Measures
pursuant to which the Performance Goals are set, and the maximum amount of
              compensation that could be paid to any Covered Employee or the formula used
to calculate the amount of compensation to               be paid to the Covered Employee
if the Performance Goal is attained.

	 	       (b) 	Performance
Measures must be disclosed to and reapproved by the stockholders no later than the first
stockholder               meeting that occurs in the fifth year following the year in
which stockholders previously approved the Performance               Measures. If
applicable laws change to permit Committee discretion to alter the governing Performance
Measures without               conditioning deductibility on obtaining stockholder
approval (or reapproval) of any changes, the Committee shall have               sole
discretion to make changes without obtaining stockholder approval or reapproval.

	 	       (c) 	Whenever
the Committee determines that it is advisable to grant or pay awards that do not qualify
as Qualified               Performance Based Awards, the Committee may make grants or
payments without satisfying the requirements of Code               Section 162(m).

	 	       (d) 	The
Committee may establish rules and procedures providing for the automatic deferral of
Shares or other Plan payouts               of Recipients who are Covered Employees as
necessary to avoid a loss of deduction under Code Section 162(m)(1).
              Settlement of Plan Awards after deferral shall be at a time consistent with
not triggering taxes under Section 409A of               the Internal Revenue Code.

	 	       (e) 	No
Recipient may be granted a Plan Award denominated in Shares with respect to a number of
Shares in any one Fiscal               Year which when added to the Shares subject to any
other Plan Award denominated in Shares granted to such Recipient in               the
same Fiscal Year would exceed 2,000,000 Shares; provided, however, that if the
Performance Period applicable to a               Plan Award exceeds twelve months, the
2,000,000 Share limit shall apply to each 12-month period in the Performance
              Period. If an Award denominated in Shares is cancelled, the cancelled Award
continues to count against the maximum               number of Shares for which an Award
denominated in Shares may be granted to a Recipient in any Fiscal Year. The Share
              limit shall be adjusted to the extent necessary to reflect adjustments to
Shares required by Section 11.8.

         11.3
Termination of Employment. Except as otherwise expressly set forth in the Plan, the
Committee shall determine the effect of the termination of a Recipient’s employment,
or a Recipient’s disability or death, on the lapse of any Restrictions contained in a
Plan Award made to the Recipient. During a period for which the Recipient is subject to
administrative suspension, a Recipient’s right to exercise or receive payment for any
rights under any Plan Award or the vesting of any rights under any Plan Award shall be
suspended. 

         11.4
Forfeiture for Cause. Notwithstanding anything to the contrary contained in the Plan,
any Recipient upon a finding of “Cause” by the Committee shall forfeit all Plan
Awards  

 

 

Exhibit 10.1 

(and rights thereunder) and
Restricted Stock granted under the Plan, whether or not vested or otherwise exercisable.  

         11.5
Death of Recipient. If a Recipient dies, the Recipient’s Plan Award may be
exercised, in accordance with its terms or as allowed by law, by the Recipient’s
estate or by a person who acquired the right to exercise the Plan Award by bequest or
inheritance, but only to the extent provided in the Notice of Plan Award, or as the
Committee may otherwise permit consistent with the terms of the Plan. Unless otherwise
provided in Notice of Plan Award, (a) Plan Awards may be exercised after death only to the
extent the Recipient was otherwise entitled to exercise the Plan Award at the date of the
Recipient’s death and only if exercised within 12 months after the Recipient’s
death, and (b) to the extent a Plan Award was unvested at the date of death, the Plan
Award shall terminate. 

         11.6
Limitations on Liability and Award Obligations. Receiving a Plan Award or being the
owner of any Plan Award of an Option, Restricted Stock, Restricted Stock Rights, Stock
Appreciation Right, or Performance Share shall not: 

	 	(a) 	give
a Recipient any rights except as expressly set forth in the Plan or in the Plan Award and
except as a stockholder               of Wal-Mart as set forth herein as to the
Restricted Stock only; 

	 	(b) 	as
to Shares deliverable on the exercise of an Option, Stock Appreciation Rights or
Performance Shares payable in               Shares, until the delivery (as evidenced by
the appropriate entry on the books of Wal-Mart of a duly authorized
              transfer agent of Wal-Mart) of the Shares issued upon settlement of an
Option, Stock Appreciation Right, or               Performance Share give the Recipient
the right to vote, or receive dividends on, the Shares to be delivered upon
              settlement or any other rights as a stockholder with respect to the Shares
underlying such Plan Awards,               notwithstanding the exercise of the Option,
Stock Appreciation Right, or Performance Share; 

	 	(c) 	be
considered a contract of employment or give the Recipient any right to continued
employment, or to hold any               position, with Wal-Mart or any Affiliate; 

	 	(d) 	create
any fiduciary or other obligation of Wal-Mart or any Affiliate to take any action or
provide to the Recipient               any assistance or dedicate or permit the use of
any assets of Wal-Mart or any Affiliate that would permit the               Recipient to
be able to attain any performance criteria stated in the Recipient’s Plan Award; 

	 	(e) 	create
any trust, fiduciary or other duty or obligation of Wal-Mart or any Affiliate to engage
in any particular               business, continue to engage in any particular business,
engage in any particular business practices or sell any               particular product
or products; or 

	 	(f) 	create
any obligation of Wal-Mart or any Affiliate that shall be greater than the obligations of
Wal-Mart or that               Affiliate to any general unsecured creditor of Wal-Mart or
the Affiliate. 

         If
Wal-Mart or an Affiliate terminates a Recipient’s employment with Wal-Mart or the
Affiliate, the potential value of any Plan Award that must be returned to Wal-Mart will
not be an  

 

 

Exhibit 10.1 

element of any damages that the
Recipient may have for any termination of employment or other relationship in violation
of any contractual or other rights the Recipient may have.  

         11.7
No Liability of Committee Members. Consistent with Article VI of Wal-Mart’s
Amended and Restated Bylaws, Wal-Mart shall indemnify and hold harmless each member of the
Committee and each other officer and director of Wal-Mart or any Affiliate that has any
duty or power relating to the administration of the Plan against any liability,
obligation, cost, or expense incurred by that person arising out of any act or omission to
act in connection with the Plan or any Plan Award if he or she acted in good faith and in
a manner reasonably believed to be in or not opposed to the best interest of Wal-Mart.
Indemnification of Associates and agents shall be determined pursuant to the requirements
Article VI of Wal-Mart’s Amended and Restated Bylaws. 

         11.8
Adjustments upon Changes in Capitalization or Merger. Subject to any required action by
the Wal-Mart stockholders, the number and type of Shares (or other securities or property)
covered by each Plan Award, and the number and type of Shares (or other securities or
property) which have been authorized for delivery under the Plan, but as to which no Plan
Awards have yet been granted or which have been returned to the Plan upon cancellation or
expiration of a Plan Award, the price per Share covered by any outstanding Plan Award that
includes in its terms a price per Share, and the number of Shares with respect to which
Plan Awards may be granted to an individual shall be proportionately adjusted to reflect
an extraordinary dividend or other distribution (whether in the form of cash, Shares, or
other securities or property), stock split, reverse stock split, merger, reorganization,
subdivision, consolidation or reduction of capital, recapitalization, consolidation,
split-up, spin-off, combination or reclassification of the Shares, or any other increase
or decrease in the number of outstanding Shares effected without receipt of consideration
by Wal-Mart, issuance or warrants or other rights to purchase Shares or other securities
of Wal-Mart or other similar corporate transaction or event that affects the Shares such
that an adjustment is determined by the Committee to be appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan. That adjustment shall be made by the Committee, whose
determination shall be final, binding and conclusive as to every person interested under
this plan. Except as expressly provided herein, no issuance by Wal-Mart of Shares of stock
of any class, or securities convertible into Shares of stock of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number or price of
Shares subject to a Plan Award. 

         11.9
Tax Withholding. Whenever taxes are to be withheld in connection with the exercise or
settlement of a Plan Award or for any other reason in connection with a Plan Award, the
Committee may permit the Recipient to elect to make payment for the withholding of
federal, state, and local taxes (including Social Security and Medicare (“FICA”)
taxes by one or a combination of the following methods: (a) payment in cash of the amount
to be withheld, (b) requesting Wal-Mart to withhold from Shares that would otherwise be
delivered in settlement of a Plan Award payable in Shares (or upon the lapse of
Restrictions on a Plan Award) a number of Shares having a Fair Market Value on the date
the withholding obligation arises no greater than the amount to be withheld, (c) transfer
of unencumbered Shares owned by the Recipient in circumstances permitted by the
Committee, or (d) withholding from any cash compensation otherwise due to the Recipient.
The Committee may set limits on the amount of withholding to be satisfied through
withholding of Shares, e.g., the Committee may require that only the  

 

 

Exhibit 10.1 

minimum withholding be satisfied in
Shares, and may prohibit withholding from Open Market Shares in Canada or other
countries. Any fractional Share amount must be paid in cash or withheld from compensation
otherwise due to the Recipient.  

         11.10
Amendment and Termination of the Plan. The Board may amend or terminate the Plan at any
time without the approval of the Recipients or any other person, except to the extent any
action of that type is required to be approved by the stockholders of Wal-Mart under
applicable law, listing standards, or in connection with any outstanding Qualified
Performance Based Awards. 

         11.11
Governing Law. The Plan shall be governed by and construed in accordance with the laws
of the State of Arkansas, except that any matters relating to the internal governance of
Wal-Mart shall be governed by the Delaware General Corporation Law, as amended. 

         11.12
Superseding Existing Plans. Effective Date and Transition. The Plan, as set forth
herein, was approved by the Board on March 3, 2005, to be effective January 1, 2005,
subject to the approval of a majority of the outstanding Shares at Wal-Mart’s 2005
Annual Shareholders’ Meeting. The 1998 Plan was initially approved by the Board on,
and was effective as of, March 5, 1998, and was subsequently approved by the holders of a
majority of the outstanding Shares at Wal-Mart’s 1998 Annual Shareholders’
Meeting, with 80,000,000 Shares made available for delivery in settlement of Plan Awards,
of which up to 16,000,000 Shares were made available for grant as Restricted Stock. 

         11.13
Funding. To the extent the Plan is subject to the Employee Retirement Income Security
Act of 1974 (“ERISA”), it is intended to be (and will be administered as) an
unfunded employee pension plan benefiting a select group of management or highly
compensated employees under the provisions of ERISA. It is intended that the Plan be
“unfunded” for federal tax purposes and for purposes of Title I of ERISA.EX-10.2

Exhibit 10.2 

WAL*MART STORES

Stock Incentive Plan

Notice of Non Qualified Stock Option
Grant

	
      

    
	
      Name

      

      «Name» 	Social
      Security Number

      

      «Social» 	
      Department

      

      «Department» 
	
      

    

	
      Grant Date 

      

      «GrantDate» 	
      Shares Granted

      

      «SharesGranted» 	
      Price per Share

      

      «PricePerShare» 	 Expiration
      Date

      

      «ExpirationDate» 
	
      

    

Grant of Option: You have been
granted an option to purchase up to the above-designated number of shares of Common Stock
of Wal-Mart Stores, Inc., (“Shares”) at the designated price per Share, on or
before the designated Expiration Date, subject to the terms of the Wal-Mart Stores, Inc.
Stock Incentive Plan of 2005, as amended from time to time. Capitalized terms used in the
notice have the same meanings as in the Plan. 

Vesting. This Option shall
cumulatively vest and become exercisable as follows, except that no Options shall vest
after you cease to be an associate of the company for any reason whatsoever other than on
account of death in which case all Options shall immediately vest. The unexercised portion
of each vested installment may be accumulated from year to year. 

	 	
      

    
	 	Shares
      Vesting	 	Date
	 	
      

    
	    	«Vest1»	                                	«Date1»
		«Vest2»	           	«Date2»
		«Vest3»	 	«Date3»
		«Vest4»	 	«Date4»
		«Vest5»	 	«Date5»
	    			
		«TotalShrGranted»	 	Total
		
      

    

Time to Exercise Vested
Options: You may exercise all or any portion of your vested Options only (i) while you
are employed by the Company, or (ii) within 3 months after termination of employment, or
(iii) within one year after death if you die before otherwise terminating employment or
within 3 months thereafter. However, in no event shall this Option be exercisable (a)
after the Expiration Date, (b) during any administrative suspension, or (c) if your
employment was terminated for cause. 

Payment of Exercise Price: You
must pay the Option price in full in any one or a combination of the following, subject to
the approval of the Committee: (i) through a broker-dealer selected by you to whom you
have submitted an irrevocable exercise notice including an irrevocable instruction to
deliver the Option price promptly to the Company by check or wire transfer; (ii) by cash,
check, or wire transfer; or (iii) in unencumbered Shares which you have held for at least
6 months. 

Tax Withholding: The
Company’s required federal, state and local tax withholding must be satisfied when
you exercise an Option by any one or a combination of the following means: (i) by cash,
check, or wire transfer; (ii) withholding of Shares otherwise deliverable to you as a
result of the exercise of an Option; or (iii) in unencumbered Shares, which have been held
for at least six months. All Shares shall be valued at their Fair Market Value as of the
date the withholding tax obligation arises. 

Successors Bound by this
Notice: This Notice and the terms of the Plan bind you and your heirs, personal
representatives, successors and assigns. 

Arkansas Law Governs this Notice:
This Notice shall be governed by and interpreted according to Arkansas law.

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