Document:

EX-10.7. (xi)

 Exhibit 10.7(xi) 
  

TERMS AND CONDITIONS 

EXECUTIVE STOCK OPTION 

UNDER THE 
 NORTHERN TRUST
CORPORATION 2012 STOCK PLAN 
  

	1.	Governing Documents. Your stock option grant is subject to the provisions of the Northern Trust Corporation 2012 Stock Plan (the “Plan”), the stock option notice (the “Option Notice”)
and this Terms and Conditions document (“Terms and Conditions”). The Option Notice and these Terms and Conditions constitute the “Stock Option Agreement” as defined in the Plan. If there is any conflict between the information in
the Stock Option Agreement and the Plan, the Plan will govern. These Terms and Conditions apply to non-qualified stock options and incentive stock options issued under the Plan. Capitalized terms not defined in Stock Option Agreement shall have the
meanings assigned to them in the Plan. 

  

	2.	Amendments. The Committee may amend the terms of the Stock Option Agreement at any time, except that any amendment that adversely affects your rights in any material way requires your written consent.
Notwithstanding anything in the Stock Option Agreement to the contrary, including without limitation the preceding sentence, in the event that the Committee determines that your stock option grant, or the performance by the Corporation of any of its
obligations under the Stock Option Agreement, would violate any applicable law, your stock options shall be forfeited to the Corporation and cancelled, and the Corporation shall have no obligation to honor the exercise of your stock options by you
or your Beneficiary.  

  

	3.	Exercise Limitations. Your stock option is exercisable from and after the vesting date(s) set forth on the Option Notice until the ten (10)-year anniversary of the date the option was granted (the
“Expiration Date”), except as provided below: 

  

	 	a)	Change in Control. 

  

	 	(i)	In the event of a Change in Control, your then outstanding stock options (i.e., those that have not previously expired) shall be converted into options to purchase shares of the acquirer (“Acquirer options”),
and, on the date of the Change in Control, (A) shall equal (B), where 

 (A) equals the excess of the aggregate fair
market value of the shares subject to the Acquirer option over the aggregate exercise price of the Acquirer option, and 
 (B) equals the
excess of the aggregate fair market value of the shares of Common Stock subject to your then outstanding stock option granted over the aggregate exercise price of such stock option. 

 
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In addition, the conversion shall meet all of the requirements of Treasury Regulation Section 1.409A-1(b)(5)(v)(D), and, if the stock
option is an incentive stock option, shall meet all of the requirements of Treasury Regulation Section 1.424-1(a)(5). The Acquirer options shall continue to vest and be exercisable, or shall expire and be forfeited, in accordance with the
provisions of these Terms and Conditions that would apply to your stock options in the absence of a Change in Control, provided, however, that if you incur a Qualifying Termination, your Acquirer options (whether vested or unvested) shall become
vested and exercisable upon the date of such Qualifying Termination and may be exercised at any time until the Expiration Date. 
  

	 	(ii)	Notwithstanding the foregoing, if for any reason the acquirer does not agree to the provisions of Paragraph 3(a)(i), all of your then outstanding stock options shall be vested, and upon the date of the Change in Control
you shall be entitled to receive in cash a payment equal to the difference between (A) and (B), where: 

 (A) equals the
amount paid per share of Common Stock upon the date of the Change in Control multiplied by the number of shares of Common Stock subject to your then outstanding stock option; and 

(B) equals the aggregate exercise price of the shares of Common Stock subject to your then outstanding Stock Option. 

If, pursuant to the terms of the documents governing the Change in Control, subsequent to the date of the Change in Control additional
consideration is payable to the shareholders of the Corporation, you shall be entitled to such additional consideration on the same terms and conditions as the other shareholders, based on the number of shares of Common Stock subject to your then
outstanding stock option on the date of the Change in Control. 
  

	 	b)	Death. If you die while employed, your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your death and may be exercised by your beneficiary at any time until the
earlier of (i) five (5) years following your death and (ii) the Expiration Date. If you do not name a beneficiary (or your beneficiary dies before you), your stock option will pass to the following persons in the order indicated:

 – Your spouse; if none, then, 

– Your children (in equal amounts); if none, then, 

– Your parents (in equal amounts); if none, then, 
  

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– Your brothers and sisters (in equal amounts); if none, then, 

– Your estate. 
  

	 	c)	Retirement. If you retire, your stock option continues to vest in accordance with its terms, and, once vested, it may be exercised at any time until the earlier of (i) five (5) years following
the effective date of your retirement and (ii) the Expiration Date. The terms “retire” and “retirement” mean retirement occurring by reason of your having qualified for a Normal, Early, or Postponed Retirement Pension under
The Northern Trust Company Pension Plan. 

  

	 	d)	Special Circumstances. If (i) on the date of grant, you are a Management Group member, and (ii) on the date of your termination of employment, you are age 55 or older and have a minimum of 10
years of employment with the Corporation and its Subsidiaries, then your stock option continues to vest in accordance with its terms, and, once vested, it may be exercised at any time until the earlier of (A) five (5) years following the
date of your termination of employment and (B) the Expiration Date. 

  

	 	e)	Disability. If, while employed, you incur a “disability” that continues for a period of 12 months in accordance with The Northern Trust Company’s Managed Disability Program you are deemed
“Disabled” on the last day of such 12-month period, at which date you are terminated from the Plan. Your stock option (whether vested or unvested) becomes vested and exercisable upon the date you are deemed Disabled and may be exercised at
any time until the earlier of (i) five (5) years following the date you are deemed Disabled and (ii) the Expiration Date. 

  

	 	f)	Severance. If your employment is terminated under circumstances that entitle you to severance benefits under the Northern Trust Corporation Severance Plan (the “Severance Plan”), and you have
timely executed and not revoked a settlement agreement, waiver and release under the Severance Plan (a “Release”), your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your termination of
employment and may be exercised at any time until the earlier of (i) one-hundred and eighty (180) days following your termination of employment under the Severance Plan and (ii) the Expiration Date. If you are eligible for a Normal,
Early, or Postponed Retirement Pension upon termination of employment under the Severance Plan, your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your termination of employment and may be exercised at
any time until the earlier of (A) five (5) years following the effective date of your retirement and (B) the Expiration Date. 

  

	 	g)	Government Employment. If (i) your employment with the Corporation and its Subsidiaries terminates prior to a vesting date, and (A) you are eligible to “retire,” as defined above, at
the time of your termination of employment, or (B) you are a Management Group member on the date of the grant of the stock options and on 

  

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your date of termination of employment you are 55 years or older with a minimum of 10 years of employment with the Corporation and its Subsidiaries; and (ii) if (A) such termination of
employment constitutes a Government Service Termination, or (B) after your termination of employment and prior to a vesting date, you accept Government Employment; then (iii) on your Government Service Termination date or the date of
commencement of your Government Employment, as applicable, you will be 100% vested in your then outstanding stock options, provided that you meet the following conditions: (A) you provide the Committee with satisfactory evidence that, as a
result of your Government Employment, the divestiture of any continued equity interest in the Corporation is reasonably necessary (I) for you as a Federal officer or employee in the executive branch to comply with an ethics agreement with the
Federal government, or (II) for you to avoid the violation of U.S. federal, state or local or non-U.S. ethics law or conflicts of interest law applicable to you in your Government Employment, and (B) you execute and return no later than your
Government Service Termination date or the date of commencement of your Government Employment, as applicable, an agreement satisfactory to the Committee acknowledging the Corporation’s right to recover (and your obligation to repay) under
Paragraph 8 of the Terms and Conditions, any gain realized in connection with the stock options in the event that you are determined to have engaged in conduct or activity described in Paragraph 8. If you become vested in your stock options under
this paragraph, all of your outstanding stock options will be exercisable for (x) the 90 day period after the earlier of your Government Service Termination or the commencement of your Government Employment, as applicable, or (y) the
Expiration Date, if earlier. Thereafter, your unexercised stock options, if any, shall be forfeited. 

 For purposes of these
Terms and Conditions, “Government Service Termination” means your termination of employment with the Corporation and its Subsidiaries due to or in connection with your immediate commencement of Government Employment. 

For purposes of these Terms and Conditions, “Government Employment” refers to employment at any U.S. Federal, state or local
government, any non-U.S. government, any supranational or international organization, any self-regulatory organization, or any agency or instrumentality of any such government or organization, or any other employer determined to be a Government
Employer by the Committee. 
  

	 	h)	Other Termination of Employment. Except as set forth below, if (i) your employment by the Corporation and its Subsidiaries terminates for any reason other than death, retirement or a severance under
the Severance Plan for which you have executed and not revoked a Release, (ii) you are not terminated from the Plan due to disability pursuant to the “Disability” provisions described above, (iii) you were not both a Management
Group member on the date of grant and age 55 with 10 years of employment with the Corporation and its Subsidiaries on your 

  

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date of termination, and (iv) you are not terminated in a Qualifying Termination, then your stock option, if and to the extent vested as of the date of your termination of employment, may be
exercised at any time until the earlier of (A) three (3) months following the date of your termination of employment and (B) the Expiration Date. Your stock option, if and to the extent unvested as of the date of your termination of
employment, expires as of the date of your termination of employment. A termination of employment shall not be deemed to occur by reason of your transfer between the Corporation and a Subsidiary of the Corporation or between two Subsidiaries of the
Corporation. If you meet the criteria of each of clauses (i), (ii), (iii) and (iv), above, the post-termination exercise provision of this sub-paragraph shall apply to you if you become a consultant to the Corporation or a Subsidiary of the
Corporation upon termination of your employment from the Corporation or a Subsidiary of the Corporation. 

  

	4.	Re-Employment. If, after your termination of employment, you are re-employed by the Corporation or one of its Subsidiaries, upon your return you will be considered a new hire for purposes of the Plan.
Options that previously expired upon your termination of employment remain expired and are not reinstated. 

  

	5.	Exercise of Options.  

  

	 	a)	How to Exercise. You may exercise your stock option, in any manner described in Section 6(e) of the Plan, through the H.R. Service Center at +1 (312) 557-7593 or toll free within the U.S. at
(800) 807-0302, or online through My Place. Inquiry and modeling capabilities are also available online. 

  

	 	b)	Black-out Period. Due to federal securities law concerns, the Corporation has a “black-out” policy which restricts any exercise of your stock option around quarterly corporate earnings
announcements. Please refer to the “Statement of Confidential Information and Securities Trading” for further information about the Corporation’s black-out policy. You may access this document online through My Passport. From the
homepage click on Corporate-wide Services, and then Corporate Policies. 

  

	6.	Nontransferability. Your stock option is not transferable other than as provided in these Terms and Conditions. Your stock option (whether a non-qualified stock option or an incentive stock option) is
exercisable, during your lifetime, only by you or your personal representative. 

  

	7.	Withholding/Delivery of Shares. Delivery of shares of Common Stock upon exercise of your stock option is subject to the withholding of all applicable federal, state, and local taxes. At your election,
subject to such rules and limitations as may be established by the Committee, such withholding obligations shall be satisfied: (i) by cash payment by you; (ii) through the surrender of shares of Common Stock which you already own that are
acceptable to the Committee; or (iii) through surrender of shares of Common Stock to which you are otherwise entitled under the Plan, provided, however, that such shares  

 
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under this clause (iii) may be used to satisfy not more than the Corporation’s minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal and
state tax purposes, including payroll taxes, that are applicable to such taxable income). Payment of federal income taxes may be accomplished through a combination of withholding of shares and delivery of previously acquired shares. The Corporation
may delay the issuance or delivery of shares of Common Stock if the Corporation reasonably anticipates that such issuance or delivery will violate federal securities laws or other applicable law, provided that the issuance or delivery is made at the
earliest date at which the Corporation reasonably anticipates that such issuance or delivery will not cause such violation. As an option holder, you have no interest in the shares covered by the option until the shares are actually issued.

  

	8.	Forfeitures and Recoupments. 

  

	 	(a)	Engaging in Restricted Activity Without Written Consent of the Corporation. Notwithstanding anything to the contrary in these Terms and Conditions, if you, without the written consent of the
Corporation: 

  

	 	(i)	at any time after the date of these Terms and Conditions, have divulged, directly or indirectly, or used, for your own or another’s benefit, any Confidential Information; 

 

	 	(ii)	at any time after the date of these Terms and Conditions and through a period of twelve (12) months after you cease to be employed by the Corporation and its Subsidiaries for any reason, have Solicited, or assisted
in the Solicitation of, any Client or Prospective Client (provided, however, that this clause (ii) shall not apply to your Solicitation of any Client or Prospective Client with whom you had a business relationship prior to the start of your
employment with the Corporation and its Subsidiaries, provided no Confidential Information, directly or indirectly, is used in such Solicitation); or 

  

	 	(iii)	at any time after the date of these Terms and Conditions and through a period of twelve (12) months after you cease to be employed by the Corporation and its Subsidiaries for any reason, have solicited, encouraged,
advised, induced or caused any employee of the Corporation or any of its Subsidiaries to terminate his or her employment with the Corporation or any of its Subsidiaries, or provided any assistance, encouragement, information, or suggestion to any
person or entity regarding the solicitation or hiring of any employee of the Corporation or any of its Subsidiaries; 

 your
then outstanding stock options (whether vested or unvested) shall be forfeited to the Corporation by notice from the Committee in writing to you within a reasonable period of time after the Committee acquires knowledge of your violation of this
Paragraph 8(a). In the event that your stock options are 
  
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forfeited pursuant to the preceding sentence or the provisions of Paragraph 8(b), below, the Corporation shall have no obligation to honor the exercise of such stock options by you or your
beneficiary. 
 In addition, in the event of any action by you to which clauses (i), (ii) or (iii), above, apply, the Corporation shall,
to the extent the Committee determines it practicable and in the best interests of the Corporation, and as permitted by applicable law, rescind any exercise by you or payment or delivery to you with respect to any stock options occurring within
twelve (12) months prior to, or at any time following, the date of your termination of employment for any reason (including but not limited to termination of employment due to Retirement or Disability), and recoup any “gain realized”
in connection with such stock options as described in Paragraph 8(c) below. 
  

	 	(b)	Misconduct and Restatement of Financials. Consistent with the Corporation’s risk-mitigation strategies for its compensation programs, and notwithstanding any other provision in these Terms and
Conditions, in the event that: 

  

	 	(i)	the Corporation is required to restate its financial statements filed with the U.S. Securities and Exchange Commission on Form 10-Q or Form 10-K or re-file quarterly financial data with the U.S. Federal Reserve due to
any reason other than changes in accounting policy or applicable law (a “Restatement”), and the Committee determines that such Restatement resulted, in whole or in material part, from your (A) intentionally engaging in conduct that
resulted in a material weakness in internal control over financial reporting and was inconsistent with the standards of conduct of the business judgment rule, as defined below, or (B) personally and knowingly engaging in practices that
materially contributed to circumstances that resulted in a material weakness in internal control over financial reporting and that were inconsistent with the standards of conduct of the business judgment rule; or 

 

	 	(ii)	the Committee determines that you have engaged in conduct that is grounds for termination for Cause and is inconsistent with the standards of conduct of the business judgment rule (“Misconduct”);

 then the Committee shall review all of your then outstanding stock options (whether vested or unvested), and all stock
options with respect to which there has been an exercise by you or payment or delivery to you within the 36-month period immediately preceding the date of the Restatement, or during the period after the date of the Misconduct, as applicable. 

In the event of a Restatement described in clause (i), the Committee shall declare your then outstanding, vested stock options that would not
have become vested based on accurate financial data or restated results to be forfeited to the Corporation by notice in writing to you within a reasonable period of time after 

 
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the date of the Restatement, and the Corporation shall, to the extent the Committee determines it practicable and in the best interests of the Corporation, and as permitted by applicable law,
rescind any exercise by you or payment or delivery to you with respect to any stock options occurring within 36 months prior to the date of the Restatement that would not have become vested or been paid based on accurate financial data or restated
results, and recoup any gain realized in connection with such stock options as described in Paragraph 8(c), below. In the event of Misconduct described in clause (ii) (other than any actions included in Paragraph 8(a) or clause (i) of this
Paragraph 8(b)), the Committee shall declare your then outstanding stock options (whether vested or unvested) to be forfeited to the Corporation by notice in writing to you within a reasonable period of time after the date of the discovery of the
Misconduct, and the Corporation shall, to the extent the Committee determines it practicable and in the best interests of the Corporation and as permitted by applicable law, rescind any exercise by you or payment or delivery to you with respect to
any stock options occurring after the date such Misconduct occurred and recoup any gain realized in connection with such stock options as described in Paragraph 8(c), below. 

Your actions satisfy the “business judgment rule” if such actions were taken in good faith, in a manner that an ordinarily prudent
person would act under similar circumstances, and in the interests of the Corporation. In interpreting and applying the preceding sentence, the Committee shall use as a guide the principles of the business judgment rule as construed by the Delaware
courts in applying the Delaware Corporation Act. 
  

	 	(c)	Rescission and Recoupment. Upon the rescission, pursuant to the provisions of Paragraph 8(a) or 8(b), of any exercise by you or payment or delivery to you with respect to any stock options, the
Corporation shall be entitled to recoup any “gains realized” in connection with such stock options, in such manner and on such terms and conditions as the Committee shall require. “Gains realized” shall include (i) the
amount of any cash distributed to you with respect to, (ii) any cash or shares of the Corporation’s Common Stock (or proceeds attributable to the sale thereof ) paid or delivered in settlement of, and (iii) any other amounts
determined by the Committee to have been realized in connection with, such rescinded stock options. If you fail to repay any such amounts to the Corporation within 60 days after receipt of written demand, the Corporation shall be entitled, subject
to applicable law and the requirements of Internal Revenue Code Section 409A, to deduct from any amounts the Corporation owes you from time to time the amount of all gains realized, or to sue for repayment of such amounts, or to pursue both
remedies. 

  

	9.	No Contract of Employment. The option grant shall not be deemed to obligate the Corporation or any of its Subsidiaries to continue your employment for any particular period, nor
is employment guaranteed for the length of the vesting schedule set forth in the Option Notice. 

  

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	10.	Taxes. Please refer to the “Summary Description of the Northern Trust Corporation 2012 Stock Plan” for a description of the U.S. federal income tax consequences affecting non-qualified stock
options and incentive stock options. 

  

	11.	Interpretation and Applicable Law. Any interpretation by the Committee of the terms and conditions of the Plan, the Stock Option Agreement or any guidelines shall be final. All questions pertaining to the
validity, construction and administration of the Plan or the Stock Option Agreement, and all claims or causes of action arising under, relating to, or in connection with, the Plan or the Stock Option Agreement shall be determined in conformity with
the laws of the State of Delaware, without regard to the conflict of law provisions of any state. 

  

	12.	Definitions. As provided above, Capitalized terms not defined in the Stock Option Agreement shall have the meanings assigned to them in the Plan. For purposes of the Stock Option Agreement:

  

	 	(a)	“Cause” means (i) your conviction of or no contest plea with respect to bribery, extortion, embezzlement, fraud, grand larceny, or any felony involving abuse or misuse of your position to seek or obtain
an illegal or personal gain at the expense of the Corporation, or similar crime, or conspiracy to commit any such crimes or attempt to commit any such crimes; or (ii) your misconduct that causes material harm to the Corporation.

  

	 	(b)	“Client” means any person or entity with which the Corporation, or any of its Subsidiaries, did business and with which you had contact, or about which you had access to Confidential Information, during the
last twelve (12) months of your employment. 

  

	 	(c)	“Competitive Service or Product” means any service or product: (i) that is substantially similar to or competitive with any service or product that you created or provided, or of which you assisted in the
creation or provision, during your employment by the Corporation or any of its Subsidiaries; or (ii) about which you had access to Confidential Information during your employment by the Corporation or any of its Subsidiaries. 

 

	 	(d)	“Common Stock” means the common stock of the Corporation. 

  

	 	(e)	“Confidential Information” means any trade secrets or other significant proprietary information, including, but not limited to, any client information (for example, client lists, information about client
accounts, borrowings, and current or proposed transactions), any internal analysis of clients, marketing strategies, financial reports or projections, business or other plans, data, procedures, methods, computer data or system program or design,
devices, lists, tools, or compilation, which relate to the present or planned business of the Corporation or any of its Subsidiaries and which has not been made generally known to the public by authorized representatives of the Corporation.

  
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	 	(f)	“Good Cause” means (i) Participant’s conviction of any criminal violation involving dishonesty, fraud or breach of trust which involves the business of Northern Trust; (ii) Participant’s
willful engagement in any misconduct in the performance of Participant’s duty that materially injures the Corporation; (iii) Participant’s performance of any act which, if known to the customers, clients, stockholders or regulators of
Northern Trust, would materially and adversely impact the business of Northern Trust; (iv) any act or omission by Participant that causes a regulatory body with jurisdiction over Northern Trust, to demand, request, or recommend that Participant
be suspended or terminated from any position in which Participant serves with Northern Trust, or (v) Participant’s willful and substantial nonperformance of assigned duties, provided that such nonperformance has continued more than ten
days after Northern Trust has given written notice of such nonperformance and of its intention to terminate Participant’s employment because of such nonperformance. For purposes of clauses (ii) and (v) of this definition, no act, or
failure to act, on Participant’s part shall be deemed “willful” unless done, or omitted to be done, by Participant not in good faith and without reasonable belief that Participant’s act, or failure to act, was in the best
interest of the Corporation. In the event of a dispute concerning the application of this provision, no claim by the Corporation that Good Cause exists shall be given effect unless the Corporation establishes to the Board of Directors of the
Corporation by clear and convincing evidence that Good Cause exists. 

  

	 	(g)	“Good Reason” shall exist if, without Participant’s express written consent: (i) the Corporation (or an affiliate) shall materially diminish (A) the Participant’s authority, duties, or
responsibilities; (B) the authority, duties, or responsibilities of the position or entity to which Participant is required to report; or (C) the budget, if any, over which Participant has authority, in each case as compared to
Participant’s circumstances immediately prior to a Change in Control; (ii) the Corporation (or an affiliate) shall materially diminish Participant’s base compensation from that in effect as of the date of the grant hereunder of the
stock option (or as of a Change in Control, if greater), including a diminution of Participant’s salary or the material diminution in the aggregate value to Participant of participation in cash or stock-based incentive or bonus plans,
retirement plans, welfare benefit plans, or other benefit plans, programs or arrangements (as computed by an independent employee benefits consultant selected by the Corporation); (iii) the Corporation (or an affiliate) shall materially change
the geographic location at which Participant must perform services from that in effect prior to a Change in Control (including by assigning to Participant duties that would reasonably require such relation or which would require Participant to spend
more than fifty normal working days away from the location in effect prior to a Change in Control); or (iv) any other action or inaction by the Corporation (or an affiliate) that constitutes a material breach of the employment agreement, if
any, under which Participant provides services to the Corporation. 

  

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Participant’s continued employment shall not constitute consent to, or a waiver of, rights with respect to, any act or failure to act
constituting Good Reason hereunder, provided, however, that in order for Good Reason to exist hereunder, Participant must provide notice to the Corporation of the existence of the condition described in clauses (i) through (v) above within
90 days of the initial existence of the condition (or, if later, within 90 days of Participant’s becoming aware of such condition), and the Corporation must have failed to cure such condition within 30 days of the receipt of such notice. 

 

	 	(h)	“Northern Trust” means the Corporation and its Subsidiaries, collectively. 

  

	 	(i)	“Prospective Client” means any person or entity to which the Corporation, or any of its Subsidiaries, provided, or from which the Corporation, or any of its Subsidiaries received, a proposal, bid, or written
inquiry (general advertising or promotional materials and mass mailings excepted) and with which you had contact, or about which you had access to Confidential Information, during the last twelve (12) months of your employment.

  

	 	(j)	“Qualifying Termination” means a termination of employment with the Corporation and all of its Subsidiaries after the date of the Change in Control and, at any time before the second anniversary of such Change
in Control, that is either involuntary on the part of the Participant and does not result from his or her death or disability and is not for “Good Cause”, or is voluntary and for “Good Reason.” 

 

	 	(k)	“Solicit” and “Solicitation” (with respect to Clients or Prospective Clients) mean directly or indirectly, and without the Corporation’s written authorization, to invite, encourage, request, or
induce (or to assist another to invite, encourage, request or induce) any Client or Prospective Client of the Corporation, or any of its Subsidiaries, to: (i) surrender, redeem or terminate a product, service or relationship with the
Corporation, or any of its Subsidiaries; (ii) obtain any Competitive Service or Product from you or any third party; or (iii) transfer a product, service or relationship from the Corporation, or any of its Subsidiaries, to you or any third
party. 

  
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 11EX-10.7.(xii)

 Exhibit 10.7(xii) 

 
 TERMS AND CONDITIONS 

PERFORMANCE STOCK UNIT AWARD 

UNDER THE 
 NORTHERN TRUST
CORPORATION 2012 STOCK PLAN 
 Your performance stock unit Award (“Stock Unit Award”) is subject to the provisions of the Northern Trust
Corporation 2012 Stock Plan (the “Plan”), the Stock Unit Award notice (the “Award Notice”), and this Terms and Conditions document (“Terms and Conditions”). The Award Notice and these Terms and Condition constitute the
“Stock Unit Agreement” as defined in the Plan. If there is any conflict between the information in the Stock Unit Agreement and the Plan, the Plan will govern. Capitalized terms not defined in the Stock Unit Agreement shall have the
meanings assigned to them in the Plan. 
  

	1.	Grant. The Corporation hereby grants to the Participant an Award of Stock Units, as set forth in the Award Notice, subject to the terms and conditions of the Plan and the Stock Unit Agreement, and subject
further to increase or decrease as set forth in the Award Notice. This award of Stock Units is intended to qualify as “performance based compensation” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as
amended (the “Code”). A Stock Unit is the right, subject to the terms and conditions of the Plan and the Stock Unit Agreement, to receive a distribution of a share of Common Stock pursuant to Paragraph 8 of these Terms and Conditions.

  

	2.	Stock Unit Account. The Corporation shall maintain an account (“Stock Unit Account”) on its books in the name of the Participant which shall reflect the number of Stock Units awarded to the
Participant that the Participant is eligible to receive in distribution pursuant to Paragraph 8 of these Terms and Conditions. 

  

	3.	Dividend Equivalents. Upon the payment of any dividend on Common Stock occurring during the period preceding the distribution of the Participant’s Stock Unit award pursuant to Paragraph 8 of these
Terms and Conditions, the Corporation shall promptly (and in any event no later than March 15 of the calendar year following the calendar year in which the dividend is declared) pay to the Participant an amount in cash equal in value to the
dividends that the Participant would have received had the Participant been the actual owner of the number of shares of Common Stock represented by the Stock Units in the Participant’s Stock Unit Account on that date (“Dividend
Equivalents”). 

  

	4.	Forfeiture. The Stock Units granted to the Participant pursuant to the Stock Unit Agreement shall be forfeited and revert to the Corporation (a) in accordance with Paragraph 9, if the Participant
engages in conduct or activity described in Paragraph 9 of these Terms and Conditions, or (b) in accordance with Paragraph 5 (subject to Paragraphs 6 and 7) of these Terms and Conditions, if the Participant’s employment with the
Corporation and all of its Subsidiaries terminates prior to the last day of the “Performance Period” as defined in Exhibit A hereto, and (c) in accordance with Paragraphs 6 and 7 under certain conditions described therein.

  
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	5.	Vesting. Subject to all of the provisions of the Stock Unit Agreement, including without limitation the provisions of Paragraphs 4, 6, 7 and 9 of these Terms and Conditions, upon the last day of the
Performance Period (as defined in Exhibit A), the Participant shall become vested in such number of Stock Units, if any, as determined under the Schedule in Exhibit A, based on the average annual rate of return on equity attained by the Corporation
(as determined by the Committee in its sole discretion) for the Performance Period, but only if the Participant remains continuously employed by the Corporation or one of its Subsidiaries through the last day of the Performance Period; any Stock
Units that do not become vested in accordance with Exhibit A shall be forfeited and revert to the Corporation. If the Participant’s employment with the Corporation and its Subsidiaries terminates for any reason prior to the end of the
Performance Period then, subject to Paragraphs 6 and 7, the Stock Units in the Participant’s Stock Unit Account that have not yet vested shall be forfeited and revert to the Corporation on such employment termination date. Upon the forfeiture
of Stock Units, the Corporation shall have no further obligation after such date to pay Dividend Equivalents pursuant to Paragraph 3 of these Terms and Conditions with respect to such forfeited Stock Units. The Corporation shall have no further
obligation to the Participant under these Terms and Conditions following the Participant’s forfeiture of Stock Units. 

  

	6.	Prorated Vesting. 

  

	 	(a)	The Participant shall cease to participate in the Plan under these Terms and Conditions as of the date of the Participant’s termination of employment with the Corporation and all of its Subsidiaries, subject to the
following: 

  

	 	(b)	If (i) the Participant’s termination of employment is on account of death or Disability and occurs prior to the end of the Performance Period, or if prior to the end of the Performance Period, the
Participant’s employment with the Corporation and its Subsidiaries is terminated under circumstances that entitle the Participant to severance benefits under the Northern Trust Corporation Severance Plan (the “Severance Plan”), and
the Participant has timely executed and not revoked a settlement agreement, waiver and release under the Severance Plan (a “Release”), and (ii) the Participant does not engage in conduct or activity described in Paragraph 9 of these
Terms and Conditions during the Performance Period; then, subject to clause (f) below, as of the date of the Participant’s termination of employment with the Corporation and all of its Subsidiaries, pursuant to this subparagraph 6(b), the
Participant shall retain a pro-rated number of unvested Stock Units (the “Pro Rated Stock Units”) equal to (A) the number of Stock Units, if any, that would have become vested in the absence of a termination of employment during the
Performance Period, assuming that the Corporation achieved the Target Performance Level, multiplied by (B) a fraction, the numerator of which is the number of full calendar months of the Participant’s actual participation in the Plan under
these Terms and Conditions during the Performance Period, and the denominator of which is the number of full calendar months in the Performance Period, in all cases as determined by the Committee or the Executive Vice President of Human Resources.
All unvested Stock Units of 

  
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the Participant that are not Pro Rated Stock Units as determined under this subparagraph 6(b) shall be immediately forfeited upon the Participant’s termination of employment and revert to
the Corporation, and the Corporation shall have no further obligations after such date to pay Dividend Equivalents pursuant to Paragraph 3 of these Terms and Conditions. On the last day of the Performance Period, the Participant shall become vested
in such number of Pro Rated Stock Units, if any, as determined in accordance with the Schedule in Exhibit A, and any such Pro Rated Stock Units that become vested shall be distributed in accordance with Paragraph 8(a). 

 

	 	(c)	If, prior to the end of the Performance Period, the Participant’s employment with the Corporation and its Subsidiaries terminates, and (i) the Participant is 55 years or older on the date of such termination
of employment; and (ii) the Participant does not engage in conduct or activity described in Paragraph 9 of these Terms and Conditions during the Performance Period, then, subject to clause (f) below, as of the date of the
Participant’s termination of employment with the Corporation and all of its Subsidiaries, pursuant to this subparagraph 6(c), the Participant shall retain a pro-rated number of unvested Stock Units (the “Pro Rated Stock Units”) equal
to (A) the number of Stock Units, if any, that would have become vested in the absence of a termination of employment during the Performance Period, assuming the Corporation achieved the Target Performance Level, multiplied by (B) a
fraction, the numerator of which is the number of full calendar months of the Participant’s actual participation in the Plan under these Terms and Conditions during the Performance Period, and the denominator of which is the number of full
calendar months in the Performance Period, in all cases as determined by the Committee or the Executive Vice President of Human Resources. All unvested Stock Units of the Participant that are not Pro Rated Stock Units, as determined under this
subparagraph 6(c), shall be immediately forfeited upon the Participant’s termination of employment and revert to the Corporation, and the Corporation shall have no further obligations after such date to pay Dividend Equivalents pursuant to
Paragraph 3 of these Terms and Conditions. On the last day of the Performance Period, the Participant shall become vested in such number of Pro Rated Stock Units, if any, as determined in accordance with the Schedule in Exhibit A, and any such Pro
Rated Stock Units that become vested shall be distributed in accordance with Paragraph 8(a). 

  

	 	(d)	If, (i) prior to the end of the Performance Period, the Participant incurs a Government Service Termination, and (A) the Participant is 55 years or older on the date of such termination of employment, or
(B) the Participant’s termination of employment occurs in circumstances described in Paragraph 6(b) that entitle the Participant to severance benefits and the Participant has satisfied all conditions for such benefits; (ii) the
Participant provides the Committee with satisfactory evidence that as a result of Participant’s Government Employment, the divestiture of the Participant’s continued interest in any Stock Units is (A) necessary for the Participant as
a Federal officer or employee in the executive 

  
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Group 

  
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branch to comply with an ethics agreement with the Federal government, or (B) reasonably necessary for the Participant to avoid the violation of U.S. federal, state or local or non-U.S.
ethics law or conflicts of interest law applicable to the Participant in the Participant’s Government Employment; and (iii) the Participant executes and returns, no later than the date of his or her Government Service Termination, an
agreement satisfactory to the Committee acknowledging the Corporation’s right to recover (and the Participant’s obligation to repay) under Paragraph 9 of the Terms and Conditions, any gain realized in connection with the Stock Units paid
to the Participant in the event that the Participant is determined to have engaged in conduct or activity described in Paragraph 9; then, subject to clause (f) below, upon the later of December 31, 2014, and the Participant’s
Government Service Termination date, the Participant shall have credited and become vested in a number of unvested Stock Units as determined by multiplying (A) the applicable percentage of Stock Units, if any, that would have otherwise been
vested (in accordance with the Schedule in Exhibit A) applied as if the Performance Period ended on the later of December 31, 2014, and the last day of the last calendar quarter ending prior to the Participant’s Government Service
Termination date (such period referred to as the “modified Performance Period described in Paragraph 6(d)”), based on the Actual Performance Level achieved during such modified Performance Period, by (B) the Participant’s Pro
Rated Stock Units as determined under Paragraph 6(b) or (c), as applicable. 

  

	 	(e)	In the case of a Participant whose employment with the Corporation and its Subsidiaries terminates prior to the end of the Performance Period in circumstances described in Paragraph 6(d)(i)(A) or (B), then, if
(i) the Participant prior to the expiration of the Performance Period, accepts Government Employment; (ii) the Participant provides the Committee with satisfactory evidence that as a result of Participant’s Government Employment, the
divestiture of the Participant’s continued interest in any Stock Units is (A) necessary for the Participant as a Federal officer or employee in the executive branch to comply with an ethics agreement with the Federal government, or
(B) reasonably necessary for the Participant to avoid the violation of U.S. federal, state or local or non-U.S. ethics law or conflicts of interest law applicable to the Participant in the Participant’s Government Employment; and
(iii) the Participant executes and returns no later than the date of commencement of his Government Employment, an agreement satisfactory to the Committee acknowledging the Corporation’s right to recover (and the Participant’s
obligation to repay) under Paragraph 9 of the Terms and Conditions, any gain realized in connection with the Stock Units paid to the Participant in the event that the Participant is determined to have engaged in conduct or activity described in
Paragraph 9; then, subject to clause (f) below, upon the later of December 31, 2014, and the date of commencement of the Participant’s Government Employment, the Participant shall have credited and become vested in a number of
unvested Stock Units as determined by multiplying (A) the applicable percentage of Stock Units, if any, that would have otherwise been vested (in accordance with the Schedule in Exhibit A) applied as if the 

 
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Performance Period ended on the later of December 31, 2014, and the last day of the last calendar quarter ending prior to the date that the Participant’s Government Employment commences
(such period referred to as the “modified Performance Period described in Paragraph 6(e)”), based on the Actual Performance Level achieved during such modified Performance Period, by (B) the Participant’s Pro Rated Stock Units as
determined under Paragraph 6(b) or 6(c), as applicable. 

  

	 	(f)	Notwithstanding any provision of these Terms and Conditions, except as provided in Paragraph 7, there shall be no vesting of any Stock Units prior to the expiration of the Performance Period, and vesting shall only
obtain to the extent it is determined by the Committee that the Corporation has satisfied the performance criteria for the Performance Period in accordance with the Schedule in Exhibit A, provided that for purposes of the preceding clause, in the
case of a Participant subject to clause (d) or (e) of this Paragraph 6, the Performance Period shall be treated as ending on the last day of the “modified Performance Period” described in Paragraph 6(d) or 6(e), as applicable. If
the Participant’s employment terminates for a reason described in clause (b), (c), (d), or (e) of this Paragraph 6, any Pro Rated Stock Units that do not become vested at the end of the Performance Period pursuant to Paragraph 6(b) or
6(c), (or at the end of the modified Performance Period specified in Paragraph 6(d) or 6(e) if applicable), shall be immediately forfeited and revert to the Corporation and the Corporation shall have no further obligations after such date to pay
Dividend Equivalents pursuant to Paragraph 3 of these Terms and Conditions. The Corporation shall have no further obligation to the Participant under these Terms and Conditions following the Participant’s forfeiture of Stock Units.

  

	 	(g)	For purposes of these Terms and Conditions, “Disability” means a disability that continues for a period of six (6) months in accordance with The Northern Trust Company’s Managed Disability Program.
For purposes of determining the date, if any, on which a Participant becomes vested under Paragraph 6(b) on account of Disability, the date of Disability and date of termination of employment shall be deemed to be the last day of the six-month
period described in the preceding sentence. 

 For purposes of these Terms and Conditions, “Government Service
Termination” means the Participant’s termination of employment with the Corporation and its Subsidiaries due to or in connection with the Participant’s immediate commencement of Government Employment. 

For purposes of these Terms and Conditions, “Government Employment” refers to employment at any U.S. Federal, state or local
government, any non-U.S. government, any supranational or international organization, any self-regulatory organization, or any agency or instrumentality of any such government or organization, or any other employer determined to be a Government
Employer by the Committee. 
  
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	 	(h)	The provisions of Paragraphs 6(d)(ii) and 6(e)(ii) shall be construed in accordance with Treasury Regulation Section 1.409A-3(j)(4)(iii). 

 

	7.	Vesting Upon a Change in Control.  

  

	 	(a)	In the event of a Change in Control, if the Participant has not incurred a termination of employment with the Corporation and all of its Subsidiaries on or prior to the date of such Change in Control, the following
provisions shall apply. 

 (i) The Participant shall be immediately vested in the number of the
Participant’s unvested Stock Units equal to (A) the applicable percentage of the Participant’s Stock Units that would have become vested in accordance with the schedule at Exhibit A, applied as if the Performance Period ended on the
last day of the month immediately preceding the Change in Control (such period referred to as the “modified Performance Period described in Paragraph 7(a)”), based on the Actual Performance Level achieved during such modified Performance
Period, multiplied by (B) the Participant’s Pro Rata Target Performance Level Stock Units. The Participant’s “Pro Rata Target Performance Level Stock Units” refers to the number of the Participant’s Stock Units equal to
(I) the number of Stock Units that would have become vested in the absence of a Change in Control, assuming the Corporation achieved the Target Performance Level, multiplied by (II) a fraction, the numerator of which is the number of days from
the first day of the Performance Period through the date of the Change in Control, and the denominator of which is the number of days in the Performance Period. The Stock Units, if any, that become vested under this Paragraph 7(a)(i) shall be
converted to units with respect to equity of the acquirer (“Acquirer Units”) with a fair market value equal to the fair market value of the Corporation’s common stock subject to such Stock Units on the date of the Change in Control,
and shall be distributed in accordance with Paragraph 8(d). Any such Pro Rata Target Performance Level Stock Units that do not become vested as of the date of the Change in Control pursuant to this subparagraph 7(a)(i) shall be immediately forfeited
and revert to the Corporation and the Corporation shall have no further obligations after such date to pay Dividend Equivalents pursuant to Paragraph 3 of these Terms and Conditions. 

(ii) A number of the Participant’s Stock Units equal to (A) the number of Stock Units that would have become vested
in the absence of a Change in Control, assuming the Corporation achieved the Target Performance Level, multiplied by (B) a fraction, the numerator of which is the number days from the date of the Change in Control through the last day of the
Performance Period, and the denominator of which is the number of days in the Performance Period (such product referred to as the “Pro Rata Post-Change in Control Stock Units”), shall be converted to Acquirer Units with a fair market value
equal to the fair market value of the Corporation’s common stock subject to such Pro Rata Post-Change in Control Stock Units on the date of the Change in Control. The Acquirer Units 

 
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 Management Group

  
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 Appendix A-F 
  

described in this Paragraph 7(a)(ii) shall not be subject to the performance vesting provisions of Exhibit A, and shall become vested if and only if the Participant remains continuously employed
through the end of the Performance Period, and the Participant shall forfeit such Acquirer Units upon any termination of employment with the Corporation, the acquirer and all of their Subsidiaries, subject to the following: 

(A) if the Participant’s termination is a Qualifying Termination, the Participant shall have credited, and become vested
in, 100 percent of such Acquirer Units upon the date of such Qualifying Termination, which shall be distributed in accordance with Paragraph 8(d); 

(B) if the Participant incurs a termination of employment with the Corporation, acquirer and all of their Subsidiaries in
circumstances described in Paragraph 6(b), (c), (d) or (e), on or after the Change in Control and prior to the end of the Performance Period, but that is not a Qualifying Termination, the Participant shall have credited, and become vested in,
on such date of termination, a pro-rated portion of such Acquirer Units, determined by multiplying (I) such Acquirer Units, by (II) a fraction, the numerator of which is the number of days between the date of the Change in Control and the date
of the Participant’s termination of employment, and the denominator of which is the number of days in the Performance Period after the date of the Change in Control, which shall be distributed in accordance with Paragraph 8(d), subject to
Paragraph 8(b). 
 Any such Acquirer Units that do not become vested as of the date of the Participant’s termination of employment
pursuant to Paragraphs 7(a)(ii)(A) or 7(a)(ii)(B), as applicable, shall be immediately forfeited and revert to the Corporation, or the acquirer as applicable, and the Corporation, and the acquirer as applicable, shall have no further obligations
with respect to such Acquirer Units. 
  

	 	(b)	In the event of a Change in Control, if the Participant has incurred a termination of employment prior to such Change in Control in circumstances described in Paragraph 6(d) or 6(e), the occurrence of the Change in
Control shall not affect the operation of Paragraphs 6(d) or (e), as applicable, and Paragraph 8(b). If prior to a Change in Control, a Participant incurs a termination of employment with the Corporation and each of its Subsidiaries in circumstances
described in Paragraph 6(b) or (c), upon the date of the Change in Control, the Participant will immediately vest in the number of unvested Stock Units determined by multiplying (A) the Pro Rated Stock Units as determined under Paragraph 6(b)
or (c), as applicable (taking into account the full Performance Period for purposes of the proration fraction), by (B) the applicable percentage of the Participant’s Stock Units that would have become vested in accordance with the Schedule
in Exhibit A, applied as if the Performance Period ended on the last day of the month immediately preceding the Change in Control (such period referred to as the “modified Performance Period described in Paragraph 7(b)”), based on the

  
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Corporation’s Actual Performance Level during such modified Performance Period. The Stock Units, if any, that become vested under this Paragraph 7(b) shall be converted to Acquirer Units
with a fair market value equal to the fair market value of the Corporation’s common stock subject to such vested Stock Units on the date of the Change in Control, and shall be distributed in accordance with Paragraph 8(d). Any such Stock Units
that do not become vested as of the date of the Change in Control pursuant to this Paragraph 7(b) shall be immediately forfeited and revert to the Corporation and the Corporation shall have no further obligations after such date to pay Dividend
Equivalents pursuant to Paragraph 3 of these Terms and Conditions. 

  

	 	(c)	Notwithstanding the foregoing, if for any reason the acquirer does not agree to the provisions of Paragraphs 7(a) and 7(b), then (i) if the Participant is employed on the date of the Change in Control, the
Participant shall have credited and become vested upon the date of the Change in Control in the number of Stock Units in which the Participant would have become vested assuming that the Corporation achieved Target Performance Level for the
Performance Period, and (ii) if the Participant terminated employment with the Corporation and all of its Subsidiaries prior to the date of the Change in Control, under circumstances described in Paragraph 6(b) or (c), the Participant shall
become vested upon the date of the Change in Control in a number of Stock Units equal to the number of Stock Units in which the Participant would have become vested under Paragraph 6(b) or (c) assuming that the Corporation achieved Target
Performance Level for the Performance Period and such Participant’s remaining unvested Stock Units shall be forfeited. 

  

	8.	Distribution. 

  

	 	(a)	In the case of Stock Units that become vested pursuant to Paragraph 5 or Paragraph 6(b) or 6(c) on the last day of the Performance Period, such Stock Units shall be distributed on such vesting date, provided that such
Stock Units shall be treated as distributed on such vesting date if they are distributed no later than the 15th day of the third calendar month after the calendar year in which the Performance
Period ends. 

  

	 	(b)	In the case of Stock Units that become vested in circumstances described in Paragraph 6(d) or 6(e), distribution shall be made on the date such amounts become vested under Paragraph 6(d) or 6(e), as applicable, provided
that all of the requirements of Paragraph 6(d) and 6(e) are satisfied, including without limitation Paragraph 6(d)(ii) and 6(e)(ii). 

  

	 	(c)	In the event of the Participant’s death during the Performance Period or thereafter but prior to full distribution to the Participant pursuant to these Terms and Conditions, the Participant’s Stock Units, if
any, that become vested on the last day of the Performance Period pursuant to Paragraph 6(b) shall be distributed to the Participant’s beneficiary on such date in accordance with Paragraph 8(a), 

 
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above, and such distribution shall be made to such beneficiary and in such proportions as the Participant may designate in writing, and in the absence of a designation, to the following persons
in the order indicated below: 

 – The Participant’s spouse; if none, then, 

– The Participant’s children (in equal amounts); if none, then, 

– The Participant’s parents (in equal amounts); if none, then, 

– The Participant’s brothers and sisters (in equal amounts); if none, then, 

– The Participant’s estate. 
  

	 	(d)	In the case of Stock Units, if any, that become vested in accordance with Paragraph 7(a) or 7(b), the Participant shall be entitled to a distribution of such Stock Units upon the last day of the Performance Period,
provided that if the Participant becomes vested on account of a Qualifying Termination pursuant to Paragraph 7(a)(ii)(A) such Stock Units shall be distributed on such vesting date. 

 

	 	(e)	In the event of a Change in Control, if the acquirer does not agree to the provisions of Paragraph 7(a) or 7(b), this Stock Unit Award shall be terminated upon such Change in Control and the Participant shall be
entitled to a distribution of all Stock Units which become vested pursuant to Paragraph 7(c) and such distribution shall be made consistent with Treas. Reg. 1.409A-3(j)(4)(ix)(B), subject to satisfaction of the conditions thereof. 

 

	 	(f)	Stock Units shall be distributed only in shares of Common Stock so that, pursuant to Paragraph 1 of these Terms and Conditions and this Paragraph 8, a Participant shall be entitled to receive one share of Common Stock
for each Stock Unit in the Participant’s Stock Unit Account. Notwithstanding the foregoing, in the event of a Change in Control, Acquirer Units described in Paragraph 7(a) or 7(b) shall be settled in equity of the acquirer, and Stock Units that
become vested in accordance with Paragraph 7(c) may be settled in cash. 

  

	 	(g)	Notwithstanding anything herein to the contrary, the provisions of this Award Agreement, including without limitation this Paragraph 8, shall be subject to the provisions of the Plan, including without limitation
Section 14 of the Plan. 

  

	9.	Forfeitures and Recoupments. 

  

	 	(a)	Engaging in Restricted Activity Without Written Consent of the Corporation. Notwithstanding anything to the contrary in these Terms and Conditions, if the Participant, without the written consent of the
Corporation: 

  

	 	(i)	at any time after the date of these Terms and Conditions, has divulged, directly or indirectly, or used, for the Participant’s own or another’s benefit, any Confidential Information; 

 

	 	(ii)	at any time after the date of these Terms and Conditions and through a period of twelve (12) months after the Participant ceases to be employed 

 
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by the Corporation and its Subsidiaries for any reason, has Solicited, or assisted in the Solicitation of, any Client or Prospective Client (provided, however, that this clause (ii) shall
not apply to the Participant’s Solicitation of any Client or Prospective Client with whom he or she had a business relationship prior to the start of his or her employment with the Corporation and its Subsidiaries, provided no Confidential
Information, directly or indirectly, is used in such Solicitation); or 

  

	 	(iii)	at any time after the date of these Terms and Conditions and through a period of twelve (12) months after the Participant ceases to be employed by the Corporation and its Subsidiaries for any reason, has solicited,
encouraged, advised, induced or caused any employee of the Corporation or any of its Subsidiaries to terminate his or her employment with the Corporation or any of its Subsidiaries, or provided any assistance, encouragement, information, or
suggestion to any person or entity regarding the solicitation or hiring of any employee of the Corporation or any of its Subsidiaries; 

then the Participant’s then outstanding Stock Units (whether vested or unvested) shall be forfeited to the Corporation by notice from the
Committee in writing to the Participant within a reasonable period of time after the Committee acquires knowledge of the Participant’s violation of this Paragraph 9(a). In the event that a Participant’s Stock Units are forfeited pursuant
to the preceding sentence or the provisions of Paragraph 9(b), below, the Corporation shall not distribute the Stock Units to the Participant (or the Participant’s beneficiary) pursuant to Paragraph 8, or pay any Dividend Equivalents pursuant
to Paragraph 3 with respect to such Stock Units. 
 In addition, in the event of any action by the Participant to which clauses (i),
(ii) or (iii), above, apply, the Corporation shall, to the extent the Committee determines it practicable and in the best interests of the Corporation, and as permitted by applicable law, rescind any payment or delivery to the Participant with
respect to any Stock Units occurring within twelve (12) months prior to, or at any time following, the date of the Participant’s termination of employment for any reason (including but not limited to termination of employment due to
retirement or Disability), and recoup any “gain realized” in connection with such Stock Units as described in Paragraph 9(c) below. 
  

	 	(b)	Misconduct and Restatement of Financials. Consistent with the Corporation’s risk-mitigation strategies for its compensation programs, and notwithstanding any other provision in these Terms and Conditions, in
the event that: 

  

	 	(i)	the Corporation is required to restate its financial statements filed with the U.S. Securities and Exchange Commission on Form 10-Q or Form 10-K or re-file quarterly financial data with the U.S. Federal Reserve due to
any reason other than changes in accounting policy or applicable law (a 

  

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“Restatement”), and the Committee determines that such Restatement resulted, in whole or in material part, from the Participant (A) intentionally engaging in conduct that resulted
in a material weakness in internal control over financial reporting and was inconsistent with the standards of conduct of the business judgment rule, as defined below, or (B) personally and knowingly engaging in practices that materially
contributed to circumstances that resulted in a material weakness in internal control over financial reporting and that were inconsistent with the standards of conduct of the business judgment rule; or 

 

	 	(ii)	the Committee determines that the Participant has engaged in conduct that is grounds for termination for Cause and is inconsistent with the standards of conduct of the business judgment rule (“Misconduct”);

 then the Committee shall review all then outstanding Stock Units (whether vested or unvested) of the Participant, and all
Stock Units with respect to which there has been payment or delivery to the Participant within the 36-month period immediately preceding the date of the Restatement, or during the period after the date of the Misconduct, as applicable. 

In the event of a Restatement described in clause (i), the Committee shall declare the Participant’s then outstanding, vested Stock Units
that would not have become vested based on accurate financial data or restated results to be forfeited to the Corporation by notice in writing to the Participant within a reasonable period of time after the date of the Restatement, and the
Corporation shall, to the extent the Committee determines it practicable and in the best interests of the Corporation, and as permitted by applicable law, rescind any payment or delivery with respect to any Stock Units occurring within 36 months
prior to the date of the Restatement that would not have become vested or been paid based on accurate financial data or restated results, and recoup any gain realized in connection with such Stock Units as described in Paragraph 9(c), below. In the
event of Misconduct described in clause (ii) (other than any actions included in Paragraph 9(a) or clause (i) of this Paragraph 9(b)), the Committee shall declare the Participant’s then outstanding Stock Units (whether vested or
unvested) to be forfeited to the Corporation by notice in writing to the Participant within a reasonable period of time after the date of the discovery of the Misconduct, and the Corporation shall, to the extent the Committee determines it
practicable and in the best interests of the Corporation and as permitted by applicable law, rescind any payment or delivery with respect to any Stock Units occurring after the date such Misconduct occurred and recoup any gain realized in connection
with such Stock Units as described in Paragraph 9(c), below. 
 A Participant’s actions satisfy the “business judgment rule”
if such actions were taken in good faith, in a manner that an ordinarily prudent person would act under similar circumstances, and in the interests of the Corporation. In interpreting and applying the preceding sentence, the Committee shall use as a
guide the principles of the business judgment rule as construed by the Delaware courts in applying the Delaware Corporation Act. 
  

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	 	(c)	Rescission and Recoupment. Upon the rescission, pursuant to the provisions of Paragraph 9(a) or 9(b), of any payment or delivery with respect to any Stock Units, the Corporation shall be entitled to recoup any
“gains realized” in connection with such Stock Units, in such manner and on such terms and conditions as the Committee shall require. “Gains realized” shall include (i) the amount of any cash (including Dividend Equivalents)
distributed to the Participant with respect to, (ii) any cash or shares of the Corporation’s Common Stock (or proceeds attributable to the sale thereof ) paid or delivered in settlement of, and (iii) any other amounts determined by
the Committee to have been realized in connection with, such rescinded Stock Units. If the Participant fails to repay any such amounts to the Corporation within 60 days after receipt of written demand, the Corporation shall be entitled, subject to
applicable law and the requirements of Internal Revenue Code Section 409A, to deduct from any amounts the Corporation owes the Participant from time to time the amount of all gains realized, or to sue for repayment of such amounts, or to pursue
both remedies. 

  

	10.	Delivery of Shares. The Corporation may delay the issuance or delivery of shares of Common Stock if the Corporation reasonably anticipates that such issuance or delivery will violate federal securities
laws or other applicable law, provided that the issuance or delivery is made at the earliest date at which the Corporation reasonably anticipates that such issuance or delivery will not cause such violation. 

 

	11.	Adjustment. The Stock Units provided herein are subject to adjustment in accordance with the provisions of Section 11 of the Plan. 

 

	12.	No Right to Employment. Nothing in the Plan or the Stock Unit Agreement shall be construed as creating any right in the Participant to continued employment or as altering or amending the existing terms and
conditions of employment of the Participant except as otherwise specifically provided in the Stock Unit Agreement. 

  

	13.	Nontransferability. No interest hereunder of the Participant is transferable except as provided in the Stock Unit Agreement. 

 

	14.	Withholding/Delivery of Shares. All distributions hereunder are subject to withholding by the Corporation for all applicable federal, state or local taxes. With respect to distributions in shares of Common
Stock, subject to such rules and limitations as may be established by the Committee from time to time, such withholding obligations shall be satisfied through the withholding of shares of Common Stock to which the Participant is otherwise entitled
under the Stock Unit Award, provided, however, that such shares may be used to satisfy not more than the Corporation’s minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal and state tax purposes,
including payroll taxes, that are applicable to such taxable income). 

  

February 10, 2014 
 For Plan Year 2013 Performance

 Management Group 

  
 12 

 Appendix A-F 
  

 

	15.	Administration. The Plan is administered by the Committee. The rights of the Participant hereunder are expressly subject to the terms and conditions of the Plan (including continued shareholder approval of
the Plan), together with such guidelines as have been or may be adopted from time to time by the Committee. The Participant hereby acknowledges receipt of a copy of the Plan. 

 

	16.	No Rights as Shareholder. Except as provided herein, the Participant will have no rights as a shareholder with respect to the Stock Units. 

 

	17.	Interpretation and Applicable Law. Any interpretation by the Committee of the terms and conditions of the Plan, the Stock Unit Agreement or any guidelines shall be final. All questions pertaining to the
validity, construction and administration of the Plan or the Stock Unit Agreement, and all claims or causes of action arising under, relating to, or in connection with, the Plan or the Stock Unit Agreement shall be determined in conformity with the
laws of the State of Delaware, without regard to the conflict of law provisions of any state. 

  

	18.	Sole Agreement. The Stock Unit Agreement, together with the Plan, is the entire Agreement between the parties hereto, all prior oral and written representations being merged herein. No amendment or
modification of the terms of the Stock Unit Agreement shall be binding on either party unless reduced to writing and signed by the party to be bound. The Stock Unit Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the
parties hereto and their respective successors. Notwithstanding anything in the Stock Unit Agreement to the contrary, including without limitation the foregoing provisions of this Paragraph 18, in the event that the Committee determines that the
Stock Unit Award, or the performance by the Corporation of any of its obligations under the Stock Unit Agreement, would violate any applicable law, the Stock Units shall be forfeited to the Corporation and cancelled, and the Corporation shall have
no obligation to distribute the Stock Units to the Participant or the Participant’s Beneficiary or to pay any Dividend Equivalents. 

  

	19.	Definitions. As provided above, capitalized terms not defined in the Stock Unit Agreement shall have the meanings assigned to them in the Plan. For purposes of the Stock Unit Agreement: 

 

	 	(a)	“Actual Performance Level” and “Target Performance Level” each have the meaning assigned to them at Exhibit A. 

  

	 	(b)	“Cause” means (i) a Participant’s conviction of or no contest plea with respect to bribery, extortion, embezzlement, fraud, grand larceny, or any felony involving abuse or misuse of the
Participant’s position to seek or obtain an illegal or personal gain at the expense of the Corporation, or similar crime, or conspiracy to commit any such crimes or attempt to commit any such crimes; or (ii) misconduct that causes material
harm to the Corporation. 

  
 February 10, 2014 

For Plan Year 2013 Performance 
 Management Group

  
 13 

 Appendix A-F 
  

 

	 	(c)	“Client” means any person or entity with which the Corporation, or any of its Subsidiaries, did business and with which the Participant had contact, or about which the Participant had access to Confidential
Information, during the last twelve (12) months of his or her employment. 

  

	 	(d)	“Competitive Service or Product” means any service or product: (i) that is substantially similar to or competitive with any service or product that the Participant created or provided, or of which the
Participant assisted in the creation or provision, during his or her employment by the Corporation or any of its Subsidiaries; or (ii) about which the Participant had access to Confidential Information during his or her employment by the
Corporation or any of its Subsidiaries. 

  

	 	(e)	“Confidential Information” means any trade secrets or other significant proprietary information, including, but not limited to, any client information (for example, client lists, information about client
accounts, borrowings, and current or proposed transactions), any internal analysis of clients, marketing strategies, financial reports or projections, business or other plans, data, procedures, methods, computer data or system program or design,
devices, lists, tools, or compilation, which relate to the present or planned business of the Corporation or any of its Subsidiaries and which has not been made generally known to the public by authorized representatives of the Corporation.

  

	 	(f)	“Good Cause” means (i) Participant’s conviction of any criminal violation involving dishonesty, fraud or breach of trust which involves the business of Northern Trust; (ii) Participant’s
willful engagement in any misconduct in the performance of Participant’s duty that materially injures the Corporation; (iii) Participant’s performance of any act which, if known to the customers, clients, stockholders or regulations
of Northern Trust, would materially and adversely impact the business of Northern Trust; (iv) any act or omission by Participant that causes a regulatory body with jurisdiction over Northern Trust, to demand, request, or recommend that
Participant be suspended or terminated from any position in which Participant serves with Northern Trust, or (v) Participant’s willful and substantial nonperformance of assigned duties, provided that such nonperformance has continued more
than ten days after Northern Trust has given written notice of such nonperformance and of its intention to terminate Participant’s employment because of such nonperformance. For purposes of clauses (ii) and (v) of this definition, no
act, or failure to act, on Participant’s part shall be deemed “willful” unless done, or omitted to be done, by Participant not in good faith and without reasonable belief that Participant’s act, or failure to act, was in the best
interest of the Corporation. In the event of a dispute concerning the application of this provision, no claim by the Corporation that Good Cause exists shall be given effect unless the Corporation establishes to the Board of Directors of the
Corporation by clear and convincing evidence that Good Cause exists. 

  

February 10, 2014 
 For Plan Year 2013 Performance

 Management Group 

  
 14 

 Appendix A-F 
  

 

	 	(g)	“Good Reason” shall exist if, without Participant’s express written consent: (i) the Corporation (or an affiliate) shall materially diminish (A) the Participant’s authority, duties, or
responsibilities; (B) the authority, duties, or responsibilities of the position or entity to which Participant is required to report; or (C) the budget, if any, over which Participant has authority, in each case as compared to
Participant’s circumstances immediately prior to a Change in Control; (ii) the Corporation (or an affiliate) shall materially diminish Participant’s base compensation from that in effect as of the date of grant hereunder of the Stock
Unit (or as of a Change in Control, if greater), including a diminution of Participant’s salary or the material diminution in the aggregate value to Participant of participation in cash or stock-based incentive or bonus plans, retirement plans,
welfare benefit plans, or other benefit plans, programs or arrangements (as computed by an independent employee benefits consultant selected by the Corporation); (iii) the Corporation (or an affiliate) shall materially change the geographic
location at which Participant must perform services from that in effect prior to a Change in Control (including by assigning to Participant duties that would reasonably require such relation or which would require Participant to spend more than
fifty normal working days away from the location in effect prior to a Change in Control); or (iv) any other action or inaction by the Corporation (or an affiliate) that constitutes a material breach of the employment agreement, if any, under
which Participant provides services to the Corporation. 

 Participant’s continued employment shall not constitute consent
to, or a waiver of, rights with respect to, any act or failure to act constituting Good Reason hereunder, provided, however, that in order for Good Reason to exist hereunder, Participant must provide notice to the Corporation of the existence of the
condition described in clauses (i) through (v) above within 90 days of the initial existence of the condition (or, if later, within 90 days of Participant’s becoming aware of such condition), and the Corporation must have failed to
cure such condition within 30 days of the receipt of such notice. 
  

	 	(h)	“Northern Trust” means the Corporation and its Subsidiaries, collectively. 

  

	 	(i)	“Performance Period” has the meaning assigned to it in Exhibit A. 

  

	 	(j)	“Prospective Client” means any person or entity to which the Corporation, or any of its Subsidiaries, provided, or from which the Corporation, or any of its Subsidiaries received, a proposal, bid, or written
inquiry (general advertising or promotional materials and mass mailings excepted) and with which the Participant had contact, or about which the Participant had access to Confidential Information, during the last twelve (12) months of his or
her employment. 

  

	 	(k)	“Qualifying Termination” means a termination of employment with the Corporation and all of its Subsidiaries after the date of the Change in Control and, at any time before the second anniversary of such Change
in Control, that is either involuntary on the part of the Participant and does not result from his or her death or disability and is not for “Good Cause”, or is voluntary and for “Good Reason.” 

 
 February 10, 2014 

For Plan Year 2013 Performance 
 Management Group

  
 15 

 Appendix A-F 
  

 

	 	(l)	“Solicit” and “Solicitation” (with respect to Clients or Prospective Clients) mean directly or indirectly, and without the Corporation’s written authorization, to invite, encourage, request, or
induce (or to assist another to invite, encourage, request or induce) any Client or Prospective Client of the Corporation, or any of its Subsidiaries, to: (i) surrender, redeem or terminate a product, service or relationship with the
Corporation, or any of its Subsidiaries; (ii) obtain any Competitive Service or Product from the Participant or any third party; or (iii) transfer a product, service or relationship from the Corporation, or any of its Subsidiaries, to the
Participant or any third party. 

  
 February 10, 2014 

For Plan Year 2013 Performance 
 Management Group

  
 16 

 Appendix A-F 
  

Exhibit A 
 Subject to all of the
provisions of these Terms and Conditions, including without limitation Paragraphs 4, 5, 6, 7 and 9, upon the last day of the three-year performance period beginning on January 1, 2014 and ending on December 31, 2016 (the “Performance
Period”) the Stock Units under your Stock Unit Agreement will vest in accordance with the following table based on the average annual rate of return on equity for the Performance Period attained by the Corporation: 

 

					
	 Average Annual Rate

of Return on Equity
	  	Percentage of
Stock Units Vested	 
	 Less than 7.0%
	  	 	0	% 
	 7.0%
	  	 	50	% 
	 10.0%
	  	 	100	% 
	 12.5%
	  	 	115	% 
	 >15.0%
	  	 	125	% 

 If the average annual rate of return on equity for the Performance Period is between 7.0% and 10.0%, 10.0% and 12.5%, or 12.5%
and 15.0%, the final percentage of Stock Units that become vested will be determined by straightline interpolation between the applicable percentage levels. The average annual rate of return on equity for the Performance Period attained by the
Corporation is the return on average common equity, is based on the Corporation’s net income, and shall be determined by the Committee in accordance with generally accepted accounting principles (subject to the adjustments set forth below).

 For purposes of this Exhibit A, the average annual rate of return on equity shall be calculated as the simple average annual rate of return on equity for
the three-year Performance Period referenced above, measured across the Corporation as a whole (or in the case of a Participant to which Paragraph 6(d), 6(e), 7(a) or 7(b) of the Stock Unit Agreement applies, for the modified Performance Period
described in Paragraph 6(d), 6(e), 7(a) or 7(b), as applicable, treating any fractional year as a full year). 
  

February 10, 2014 
 For Plan Year 2013 Performance

 Management Group 

  
 A 

 Appendix A-F 
  

Notwithstanding anything herein to the contrary, for purposes of determining the average annual rate of return on equity for the Performance Period, if any of
the following items, alone or in combination with any of the others, would produce a change to net income in excess of $100 million, net income will be determined by excluding such items: 

(i) the gains or losses resulting from, and the expenses incurred in connection with, the acquisition or disposition of a business, a merger,
or a similar transaction, and integration in connection therewith; 
 (ii) the impact of securities issuances in connection with events
described in item (i), above, and expenses incurred in connection therewith; 
 (iii) any gain, loss, income or expense resulting from
changes in accounting principles, tax laws, or other laws or provisions affecting reported results, that become effective during the Performance Period; 

(iv) any gain or loss resulting from, and expenses incurred in connection with, any litigation or regulatory investigations; 

(v) any charges and expenses incurred in connection with restructuring activity, including but not limited to, reductions in force; 

(vi) the impact of discontinued operations; 

(vii) asset write-downs; 

(viii) the impact or impairment of goodwill; or 

(ix) any other gain, loss, income or expense with respect to the Performance Period that is nonrecurring in nature. 

All amounts referenced in the foregoing list shall be determined in accordance with GAAP and shall be consistent with the Corporation’s financial
disclosures. 
 In all events, and notwithstanding anything to the contrary herein, the Committee has the discretion to decrease any award. 

“Actual Performance Level” shall refer to the average annual rate of return on equity (as described above) attained during the Performance Period
(or modified Performance Period, as applicable). “Target Performance Level” shall refer to the attainment of an average annual rate of return on equity within the range set opposite 100% of Stock Units vested in the chart above. 

The Committee’s determination of the average annual rate of return on equity for a Performance Period shall be final. 

 
 February 10, 2014 

For Plan Year 2013 Performance 
 Management Group

  
 B

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