Document:

exhibit10_1.htm

 

 

Exhibit 10.1

 

 

SCHIFF NUTRITION INTERNATIONAL, INC.
2004 INCENTIVE AWARD PLAN

 

PERFORMANCE AWARD GRANT NOTICE

 

	
Section 1:
	
  Notice of Grant

 

Schiff Nutrition International, Inc. (the “Company”), pursuant to our 2004 Incentive Award Plan, as amended (the “Plan”), hereby
grants this performance award (the “Performance Award”) to the holder listed below (“Holder”) pursuant to the Plan.  The Performance Award shall be subject to all of the terms and conditions as set forth herein and in the Award Agreement attached hereto as Exhibit A (the “Award
Agreement”) and the Plan, each of which are incorporated herein by reference.  Unless otherwise defined in this Performance Award Grant Notice (the “Grant Notice”) or the attachments hereto, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the attachments hereto.

 

	
Holder:
	
__________________________________________

	
Grant Date:
	
December 12, 2008

	
Performance Period:
	
October 1, 2008 through May 31, 2011

	
Target Award Value:
	
$_____________.  This is the dollar denomination of the award granted.  The actual value of the award payable, if any, will be based on the Earned Value (as discussed below and in the Award Agreement) of the award and the extent to which the award vests.

The Earned Value of the award is based on how well the Company performs against targeted goals for three financial performance measures (as discussed below).  Earned Value may be as small as $0 and as large as 150% of the Target Award Value.  Earned Value will equal Target Award Value when the Company performs at target performance
for each of the three financial performance goals, as set forth on Exhibit B.

Full vesting is based on Holder’s continued service with the Company throughout the Performance Period, and may be less than 100% in certain events discussed below.

	
Earned Value:
	
The “Earned Value” (as defined in the Award Agreement) will be based on the Company’s actual performance over the Performance Period against the specified performance goals for Cumulative Performance Period Operating Income, Cumulative Performance Period Net Sales and Cumulative Performance Period Net Cash Flow, as set forth
on Exhibit B and discussed further in the Award Agreement. If the threshold level of Cumulative Performance Period Operating Income over the Performance Period is not met, then regardless of how the Company performs against the Cumulative Performance Period Net Sales goal and the Cumulative Performance Period Net Cash Flow goal, the Earned Value will be $0 and no amounts will be payable.

 

 

  

  

  

 

 

	
Vesting:
	
If the Holder remains continuously in service throughout the Performance Period and does not experience a “Separation from Service” (as defined in the Award Agreement) prior to May 31, 2011, then one hundred percent (100%) of the Earned Value shall vest and become nonforfeitable on May 31, 2011.  Vesting of the Earned Value
shall be accelerated in whole or in part upon the happening of certain qualifying terminations of employment and change in control events, as specified in Section 2.2 of the Award Agreement.  If Holder has a Separation from Service prior to May 31, 2011 that does not qualify for accelerated vesting, then Holder will forfeit the entire Performance Award.

	
Form of Payment:
	
The vested portion of the Earned Value shall be paid in a combination of cash and shares of Class A common stock of the Company (“Common Stock”), as determined in accordance with the Award Agreement.

	
Time of Payment:
	
Subject to the terms and conditions of the Plan, the cash and shares of Common Stock payable in settlement of the vested portion of the Earned Value will be distributed during the thirty (30) day period following the earlier of (i) the date following the end of the Performance Period on which the Compensation Committee certifies the level of achievement
of the performance goals set forth on Exhibit B and determines the Earned Value, and (ii) a “Change in Control” (as defined in the Award Agreement); provided, however, that Holder may elect to defer the distribution of some or all of the cash and shares of Common Stock otherwise distributable by completing the Deferral Election attached as Exhibit
C to this Grant Notice (the “Deferral Election”) within the timeframe set forth in Exhibit C.

 

	
Section 2:
	
  Miscellaneous

 

By my signature below, I hereby agree to be bound by the terms and conditions of the Plan, the Award Agreement and this Grant Notice.  I have reviewed the Award Agreement, the Plan and this Grant Notice in their entirety, have had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understand all
provisions of this Grant Notice, the Award Agreement and the Plan.  I hereby agree to accept as final, binding, and conclusive all decisions or interpretations of the Administrator of the Plan upon any questions arising under the Plan, this Grant Notice or the Award Agreement.

 

	
SCHIFF NUTRITION INTERNATIONAL, INC.
	
HOLDER:

	  	  
	
By:                                                                
	
By:                                                                

	
Print Name:                                                                
	
Print Name:                                                                

	
Title:                                                                
	
Address:                                                                

	
Address: 2002 South 5070 West
	
                                                                                                                                       

	
 Salt Lake City, UT 84104
	                                                                                

 

You must return this Performance Award Grant Notice to the Office of the General Counsel of

Schiff Nutrition International, Inc. on or before December 31, 2008

 

 

  

2

  

 

EXHIBIT A TO PERFORMANCE AWARD GRANT NOTICE

 

AWARD AGREEMENT

 

Pursuant to the Performance Award Grant Notice (“Grant Notice”) to which this Award Agreement (this “Agreement”) is attached, Schiff Nutrition International, Inc. (the “Company”)
has granted to Holder this award (the “Performance Award”) under its 2004 Incentive Award Plan, as amended (the “Plan”).

 

ARTICLE I

 

GENERAL

 

1.1 Defined Terms.  Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context clearly indicates
otherwise.  Capitalized terms not specifically defined herein shall have the meanings specified in the Grant Notice or, if not defined in the Grant Notice, the Plan.

 

“Agreement” shall have the meaning assigned to such term in the preamble.

 

“Board” shall mean the Board of Directors of the Company.

 

“Cause” shall mean Holder’s:

 

(a) gross or willful misconduct of Holder at any time during Holder’s employment by the Company, or any such misconduct during any prior period of employment in an executive capacity with any person or entity if not disclosed to
the Company in writing prior to the execution hereof;

 

(b) substantial failure to perform specific and lawful directives of the Board or a superior employee of the Company; 

 

(c) knowing violation of any rules or regulations of any governmental or regulatory body, which is materially injurious to the financial condition of the Company;

 

(d) conviction of or plea of guilty or nolo contendere to a felony or fraud during Holder’s employment with the Company; 

 

(e) drug, alcohol or substance abuse (to the extent not inconsistent with the Americans with Disability Act or similar state law); or

 

(f) material breach of the terms of any of Holder’s employment-related or non-disclosure agreement(s) with the Company which is not corrected after written notice and a reasonable cure period not to exceed 15 days.

 

“Certification Date” shall have the meaning assigned to such term in Section 2.3(a).

 

  

A-1

  

 

“Change in Control” shall mean each occurrence of any of the following:

 

(a) A transaction or series of transactions (other than an offering of common Stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group”
of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company
possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or, excluding any transaction involving a distribution of Stock held by Weider Health and Fitness (“WHF”) to individual stockholders of WHF or their family trusts;

 

(b) During any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new director(s) (other than a director designated by a person who shall have entered into an agreement
with the Company to effect a transaction described in subsection (a) above or subsection (c) below) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof;

 

(c) The consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination pursuant
to which shares of Common Stock are sold at a price greater than $5.00 per outstanding share, as adjusted from time to time consistent with any adjustment under Section 11.1 of the Plan, or (y) a sale or other disposition of all or substantially all of the Company’s assets pursuant to which the consideration received by the Company or its stockholders is in excess of $5.00 per outstanding share, as adjusted from time to time consistent with any adjustment under Section 11.1 of the Plan, or (z) the
acquisition of assets or stock of another entity, in each case other than a transaction:

 

(i) Which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person
that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction,
or

 

(ii) After which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for
purposes of this subsection (c)(ii) as beneficially owning 50% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or

  

A-2

  

 

(d) The Company’s stockholders approve a liquidation or dissolution of the Company.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

“Common Stock” shall mean the Class A common stock, par value $.01 per share, of the Company.

 

“Company” shall have the meaning assigned to such term in the preamble.

 

“Deferral Election Effective Date” shall mean the earliest of (a) November 30, 2010, (b) the date of Holder’s Separation from Service or (c) the date that the Settlement Amount has become “readily ascertainable” within the meaning of Treasury Regulation
Section 1.409A-2(a)(8).

 

“Deferred Amount” shall have the meaning assigned to such term in Section 2.5(a).

 

“Disabled” shall have the meaning assigned to such term in Code Section 409A(2)(C) and the Treasury Regulations thereunder.

 

“Distribution Event” shall have the meaning assigned to such term in Section 2.5(b).

 

“Dividend Equivalents” shall have the meaning assigned to such term in Section 2.5(e).

 

“Earned Value” shall have the meaning assigned to such term in Section 2.3(a).

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Good Reason” shall mean any one of the following conduct or events which occurs without Holder’s consent, and is not cured by the Company within 30 days after Holder’s notice in writing to the Company within 90 days of the first happening of the conduct or
event (and Holder thereafter terminates employment with the Company no later than 180 days after the first happening of such conduct or event specified in the notice):

 

(a) the Company’s material diminution of Holder’s authority, responsibilities, duties, or compensation; or

 

(b) any involuntary relocation of Holder’s principal place of business to a location that represents a material change in geographic location (including, without limitation, any involuntary relocation that is more than 75 miles
from Holder’s current principal place of business with the Company).

 

  

A-3

  

 

“Grant Date” shall mean the grant date set forth in the Grant Notice.

 

“Grant Notice” shall have the meaning assigned to such term in the preamble.

 

“Normal Retirement Eligibility Date”1 shall mean the later of:

 

(a) the date on which Holder attains the age of 62, and

 

(b) the date Holder completes 6 years of continuous employment with the Company or any Subsidiary.

 

“Performance Award” shall have the meaning assigned to such term in the preamble.

 

“Performance Period” shall mean the performance period indicated in the Grant Notice.

 

“Plan” shall have the meaning assigned to such term in the preamble.

 

“Pro Rata Vesting Event” shall have the meaning assigned to such term in Section 2.2(b).

 

“Section 409A Change in Control” shall mean a Change in Control that qualifies as a “change in the ownership or effective control,” or a “change in the ownership of a substantial portion of assets,” of the Company (or the corporate successor thereto),
within the meaning of Code Section 409A(a)(2)(A)(v) and the Treasury Regulations thereunder

 

“Separation from Service” shall mean Holder’s “separation from service” (within the meaning of Code Section 409A(a)(2)(A)(i) and the Treasury Regulations and other guidance issued thereunder) with the Company or Subsidiary employing Holder, as determined
by the Administrator.

 

“Settlement Amount” shall have the meaning assigned to such term in Section 2.3(c).

 

“Target Award Value” shall mean the target award value set forth in the Grant Notice.

 

“Unforeseeable Emergency” shall have the meaning assigned to such term in Section 2.6(b).

 

1.2 Incorporation of Terms of Plan.  The Performance Award and the cash and shares of Common Stock to be paid or issued with respect thereto, are subject to the terms and conditions of the Plan, which are incorporated herein by reference.  In
the event of any conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall control.

 
1 For T. Elitharp, “Normal Retirement Eligibility Date” shall mean May 31, 2010.

 

  

A-4

  

 

 

ARTICLE II

 

GRANT, VALUE, VESTING AND DISTRIBUTION

 

2.1 Grant of Performance Award.  In consideration of Holder’s past and/or continued employment with or service to the Company or its Subsidiaries and for
other good and valuable consideration, effective as of the Grant Date, the Company irrevocably grants to Holder this award, consisting of a Performance Bonus Award granted pursuant to Section 8.8 of the Plan and a Stock Payment award granted pursuant to Section 8.4 of the Plan.

 

2.2 Vesting of Performance Award; Accelerated Vesting Events.

 

(a) Subject to Section 2.2(b) and (c), Holder shall vest in full in the Earned Value on May 31, 2011; provided,
that Holder does not experience a Separation from Service prior to such date.  Notwithstanding the vesting of the Earned Value in accordance with Section 2.2(a) or 2.2(b), no amount shall become payable pursuant to the Performance Award until there is a certification by the Compensation Committee of the Earned Value and the resulting amount payable to the Holder, in accordance with Section 2.4.

 

(b) Notwithstanding anything to the contrary in the first sentence of Section 2.2(a), Holder shall vest in only a portion of the Earned Value upon the earliest to occur of the events listed below (each, a “Pro
Rata Vesting Event”):

 

(i) Holder’s employment with the Company or any Subsidiary is terminated by the Company or Subsidiary without Cause;

 

(ii) Holder’s employment with the Company or any Subsidiary is terminated by Holder for Good Reason;

 

(iii) Holder voluntarily resigns from employment following the Normal Retirement Eligibility Date;

 

(iv) Holder becomes Disabled; or

 

(v) Holder’s death.

 

The percentage of the Earned Value that shall vest upon the occurrence of a Pro Rata Vesting Event shall be determined by a fraction, the numerator of which is the number of full calendar months from the first day of the Performance Period through the date of such termination of employment, becoming Disabled, or death, and the denominator of
which is 32.  The portion of the Earned Value that is not vested as of the date of the Pro Rata Vesting Event shall not become vested and the portion of the Performance Award relating thereto shall terminate automatically and be forfeited immediately following such Pro Rata Vesting Event without further notice or consideration to Holder.  In addition, in the event that prior to May 31, 2011, Holder has a Separation from Service that does not qualify as a Pro Rata Vesting Event, then the full
Performance Award shall terminate automatically and be forfeited immediately upon such Separation from Service without further notice or consideration to Holder. 

  

A-5

  

 

(c) Notwithstanding anything to the contrary in the first sentence of Section 2.2(a), or any provision in any employment-related agreement between Holder and the Company or any of its Subsidiaries, if any, in the event of a Change
in Control prior to Holder’s Separation from Service, then, immediately prior to such Change in Control, Holder shall vest in the Earned Value (as determined in accordance with Section 2.3(b)) only to the extent determined as follows: (i) if the Change in Control occurs on or before May 31, 2009, thirty-three and one-third percent (33 1/3%) of the Earned Value shall vest; (ii) if the Change in Control occurs after May 31,
2009 and on or before May 31, 2010, sixty-six and two-thirds percent (66 2/3%) of the Earned Value shall vest; and (iii) if the Change in Control occurs after May 31, 2010 and on or before May 31, 2011, one hundred percent (100%) of the Earned Value shall vest.  Except as otherwise provided in this Section 2.2(c), the portion of the Earned Value that is not vested at the time of the Change in Control shall not become vested and the portion of the Performance Award relating thereto shall terminate automatically
and be forfeited at the time of the Change in Control without further notice or consideration to Holder.

 

(d) Holder shall have no right to any distribution of cash or shares of Common Stock with respect to all or any portion of the Earned Value that does not vest.

 

2.3 Earned Value and Settlement Amount.

 

(a) In the event a Change in Control does not occur prior to the expiration of the Performance Period, on a date that is no later than 90 days following the end of the Performance Period (the “Certification
Date”), the Administrator shall certify (i) the Company’s actual performance against target performance under the performance goals listed on, and in accordance with, Exhibit B to the Grant Notice, and (ii) the percent of Target Award Value resulting from the Company’s actual performance against such target performance, determined in accordance with Exhibit B (the “Earned
Value”).

 

(b) In the event a Change in Control occurs prior to the expiration of the Performance Period, then the Earned Value shall equal the Target Award Value as set forth on the Grant Notice.

 

(c) The aggregate amount payable to the Holder pursuant to the Performance Award (the “Settlement Amount”) shall equal the product of (i) the percentage of the
Earned Value that vests in accordance with Section 2.2 and (ii) the Earned Value certified by the Administrator pursuant to Section 2.3(a) or determined in accordance with Section 2.3(b), as applicable.

 

2.4 Form of Payment; Distribution.

 

(a) The Settlement Amount shall be paid to Holder in a combination of cash and shares of Common Stock, determined as follows:

 

(i) sixty-six and two-thirds percent (66 2/3%) of the Settlement Amount shall be paid to Holder in cash; provided, however, that in no event shall the cash

 

  

A-6

  

 

 

amount payable to Holder exceed $1,000,000, less the maximum amount of Holder’s annual performance bonus for the Company’s fiscal year ending May 31, 2011 (or, if the Company’s stockholders approve an amendment to Section 8.8 of the Plan on or before the Deferral Election Effective Date, such greater amount as may be permitted under
the Plan, less the maximum amount of Holder’s annual performance bonus for the Company’s fiscal year ending May 31, 2011); and

 

(ii) thirty-three and one-third percent (33 1/3%) of the Settlement Amount (plus any portion of the Settlement Amount that would otherwise be payable in cash, but that may not be paid in cash as a result of the limitation set forth
in Section 8.8 of the Plan) shall be paid to Holder in whole shares of Common Stock, based on the Fair Market Value of a share of Common Stock as of the Certification Date; provided, however, that in no event shall the number of shares of Common Stock to be issued or transferred to Holder exceed 500,000 shares (or, if the Company’s stockholders approve an amendment to Section 3.3 of the Plan on or before the Deferral Election Effective Date, such greater
amount as may be permitted under the Plan), as adjusted from time to time consistent with any adjustment under Section 11.1 of the Plan.

 

(b) Subject to the terms and conditions of the Plan and Section 2.5, the cash and shares of Common Stock payable upon settlement of the Performance Award shall be distributed during the 30-day period following the earlier of (i) the
Certification Date and (ii) a Change in Control.  Notwithstanding any provision to the contrary, the distribution of the Settlement Amount (other than the “Deferred Amount” (as defined below)) shall in all events be made on or before the later of (i) the fifteenth day of the third month following Holder’s first taxable year in which such amount is no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth day of the third month following the first taxable year of the
Company in which such amount is no longer subject to a substantial risk of forfeiture, as determined in accordance with Code Section 409A and any Treasury Regulations and other guidance issued thereunder.

 

(c) Any portion of the Settlement Amount payable in shares of Common Stock shall be made by the Company in the form of whole shares.  Any fractional share of Common Stock otherwise distributable pursuant to this Agreement shall
be rounded up to the next whole share.

 

2.5 Deferrals.

 

(a) Holder may elect to defer the receipt of some or all of the Settlement Amount otherwise payable pursuant to Section 2.4 by timely completing the Deferral Election attached as Exhibit
C to the Grant Notice.  Any such portion of the Settlement Amount, the deferral of which has been requested by the Holder pursuant to a timely Deferral Election that becomes effective and irrevocable, shall be referred to herein as the “Deferred Amount.”  The Deferred Amount shall be distributed to Holder in equal annual or semi-annual installments or in a lump sum, as elected by Holder in the Deferral Election.

 

(b) Subject to Section 2.5(c) and (d), the distribution of the Deferred Amount shall be made or, if the Deferred Amount is distributable in installments, shall commence during the
30-day period following the earliest to occur of the events listed below (each, a “Distribution Event”):

 

  

A-7

  

 

(i) the Distribution Commencement Date (if any) set forth in Holder’s Deferral Election;

 

(ii) Holder’s Separation from Service;

 

(iii) the day immediately preceding a Section 409A Change in Control;

 

(iv) Holder becomes Disabled; or

 

(v) Holder’s death.

 

Notwithstanding any provision to the contrary in this Section 2.5(b), if Holder is deemed to be a “specified employee” (within the meaning of Code Section 409A(a)(2)(B)(i) and the Treasury Regulations thereunder) at the time of Holder’s Separation from Service, then with regard to the distribution of any portion of the Deferred Amount
required to be delayed in compliance with Code Section 409A(a)(2)(B), such portion of the Deferred Amount shall be distributed to Holder during the 30-day period commencing with the earliest to occur of (i) the expiration of the six (6)-month period measured from the date of Holder’s Separation from Service or (ii) the date of Holder’s death.

 

(c) Except as otherwise provided in Section 2.6, the time for the distribution of the Deferred Amount may not be changed for any reason following the commencement of the distribution of the Deferred Amount; provided, however,
that in the event of a Section 409A Change in Control prior to the distribution of all of the Deferred Amount, the remaining portion of the Deferred Amount shall be distributed to Holder in a lump sum on the day immediately preceding such Section 409A Change in Control.

 

(d) Notwithstanding the foregoing, the Deferred Amount shall be payable at such times and upon such events as are specified in this Agreement only to the extent issuance under such terms will not cause the Performance Award or the amounts
payable pursuant to the Performance Award to be includible in the gross income of Holder under Code Section 409A prior to such times or the occurrence of such events, as permitted by the Code and the regulations and other guidance thereunder.

 

(e) In the event that Holder elects to defer all or a portion of the Settlement Amount, the Company hereby grants to Holder dividend equivalents with respect to each share of Common Stock so deferred, in an amount equal to the aggregate
amount of all normal and special cash dividends, if any, paid to the Company’s stockholders on one share of Common Stock where the record dates for such dividends paid occurred during the period from May 31, 2011 (or, with respect to any special dividends, the Certification Date) through and including the day immediately preceding the date on which the share of Common Stock deferred is distributed to Holder (or his or her estate) pursuant to this Section 2.5 (“Dividend
Equivalents”).  The Dividend Equivalents shall be paid to Holder in the same form as the original dividend at the time the deferred share of Common Stock to which such Dividend Equivalent relates is distributed pursuant to this Section 2.5.  Each Dividend Equivalent shall terminate as of the date the deferred share of Common Stock to which such Dividend Equivalent relates is distributed.

 

  

A-8

  

 

2.6 Unforeseeable Emergency.

 

(a) If Holder experiences an Unforeseeable Emergency (as defined below), Holder may petition the Administrator for the right to receive a partial or full distribution of the Deferred Amount.  If, in the sole discretion of the Administrator, Holder’s
petition is approved, the Unforeseeable Emergency shall be deemed a “Distribution Event” with respect to the portion of the Deferred Amount approved for distribution by the Administrator.  Holder shall then be entitled to receive such cash and shares of Common Stock pursuant to Section 2.5(b).

 

(b) For purposes of this Section 2.6, an “Unforeseeable Emergency” shall mean a severe financial hardship to Holder resulting from an illness or accident of Holder,
Holder’s spouse, Holder’s beneficiary or a dependent (as defined in Code Section 152, without regard to Code Section 152(b)(1), (b)(2) and (d)(1)(B)) of Holder, loss of Holder’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of Holder, as determined by the Administrator in accordance with Code Section 409A(a)(2)(B)(ii)(I) and the Treasury Regulations thereunder.  The aggregate amount of cash and
the Fair Market Value of the shares of Common Stock distributed to Holder with respect to the Unforeseeable Emergency shall not exceed the amounts necessary to satisfy such Unforeseeable Emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of Holder’s assets (to the extent liquidation
of such assets would not itself cause severe financial hardship), as determined by the Administrator in accordance with Code Section 409A(a)(2)(B)(ii) and the Treasury Regulations thereunder.

 

2.7 Changes to Form or Time of Distribution.  Except as otherwise provided herein, the time and form of distribution of the Settlement Amount shall be as set
forth in the Grant Notice and Deferral Election and may only be changed in compliance with the requirements of Code Section 409A(a)(4)(C) and the Treasury Regulations thereunder, and only with the prior written consent of the Company’s General Counsel.

 

2.8 Restrictions on Transfer.  Unless otherwise permitted by the Administrator in accordance with the terms of the Plan, no portion of the Performance Award or
the cash or shares of Common Stock payable with respect thereto or any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Holder or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including
bankruptcy), and any attempted disposition thereof shall be null and void and of no effect.

 

2.9 Conditions to Issuance of Stock Certificates.  The shares of Common Stock deliverable in payment of the Settlement Amount in accordance with Section 2.4 may
be either previously authorized but unissued shares or issued shares which have then been reacquired by the Company.  Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or deliver any such shares of Common Stock prior to fulfillment of all of the following conditions:

 

  

A-9

  

 

(a) The admission of such shares to listing on all stock exchanges on which such Common Stock is then listed;

 

(b) The completion and maintenance of any registration or other qualification of such shares under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory
body, which the Administrator shall, in its absolute discretion, deem necessary or advisable;

 

(c) The obtaining and maintenance of any approval or other clearance from any state or federal governmental agency which the Administrator shall, in its absolute discretion, determine to be necessary or advisable;

 

(d) The lapse of such reasonable period of time following the specified date for distribution as the Administrator may from time to time establish in good faith for reasons of administrative convenience; and

 

(e) The receipt by the Company of full payment of all amounts required to be withheld under federal, state, local and foreign tax laws, with respect to the issuance of such shares or any other taxable event arising out of or relating
to this Agreement and the Grant Notice in accordance with Section 15.3 of the Plan.

 

2.10 Rights as Stockholder.  Holder shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares of Common
Stock issuable pursuant to the Performance Award unless and until such shares of Common Stock shall have been issued by the Company to Holder.

 

  

A-10

  

 

ARTICLE III

 

OTHER PROVISIONS

 

3.1 Adjustment for Stock Split, Other Events.  In the event of any stock dividend, stock split, reverse stock split, distribution of Company assets to stockholders
(other than normal or special cash dividends), recapitalization, combination, reclassification, or similar change in the capital structure of the Company, in each case, occurring on or after the Certification Date, appropriate adjustments shall be made in the Dividend Equivalents and/or the shares of Common Stock issuable with respect the Deferred Amount, consistent with any adjustment under Section 11.1 of the Plan.  The provisions of this Agreement shall apply, to the full extent set forth herein
with respect to the Dividend Equivalents and the shares of Common Stock issuable with respect to any Deferred Amount, to any and all shares of capital stock or other securities which may be issued in respect of, or in exchange for, in substitution of the Dividend Equivalents and the shares of Common Stock issuable with respect to the Deferred Amount, and shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof.

 

3.2 Taxes.

 

(a) Notwithstanding anything to the contrary in this Agreement, the Company shall be entitled to require payment to the Company or any of its Subsidiaries of any sums required by federal, state or local tax law to be withheld with respect
to the payment of cash or the distribution of shares of Common Stock in connection with the Performance Award, or any other taxable event related to the Performance Award.  The Company may permit Holder to make such payment in one or more of the forms specified below:

 

(i) by cash or check made payable to the Company;

 

(ii) by the deduction of such amount from any compensation otherwise payable to Holder, including any amounts payable as part of the Settlement Amount;

 

(iii) with the consent of the Administrator, by requesting that the Company withhold shares of Common Stock payable as part of the Settlement Amount, or by tendering vested shares of Common Stock, in each case,  having a
then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company and its Subsidiaries based on the minimum applicable statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes; or

 

(iv) in any combination of the foregoing.

 

(b) In the event Holder fails to provide timely payment of all sums required by the Company pursuant to Section 3.2(a), the Company shall have the right and option, but not obligation, to treat such failure as an election by Holder to
satisfy all or any portion of his or her required payment obligation pursuant to Section 3.2(a)(ii) or 3.2(a)(iii) above, or any combination of the foregoing as the Company may determine to be appropriate.  The Company shall not be obligated to deliver any new certificate representing shares of Common Stock issuable with respect to the Performance Award to 

 

  

A-11

  

 

 

Holder or his legal representative unless and until Holder or his legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local and foreign taxes applicable to the taxable income of Holder resulting from the grant of the Performance Award, the payment of cash or the distribution of the shares of
Common Stock issuable with respect thereto, or any other taxable event related to the Performance Award.

 

3.3 Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if Holder is subject to Section 16 of the
Exchange Act, the Plan, the Performance Award and the shares of Common Stock issuable with respect thereto and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such
applicable exemptive rule.

 

3.4 Administration.  The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation
and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final, binding, and conclusive upon Holder, the Company and all other interested persons.  No member of the Administrator shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the Performance Award.

 

3.5 Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company,
and any notice to be given to Holder shall be addressed to Holder at the address given beneath Holder’s signature on the Grant Notice.  By a notice given pursuant to this Section 3.5, either party may hereafter designate a different address for notices to be given to that party.  Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained
by the United States Postal Service.

 

3.6 Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

3.7 Governing Law; Severability.  This Agreement and all disputes arising out of or relating to it shall be administered, interpreted and enforced in accordance
with the laws of the State of Delaware, without regard to the law that might be applied under principles of conflicts of laws.  Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

 

3.8 Conformity to Securities Laws.  Holder acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act
and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Performance Award is granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement
shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

  

A-12

  

 

3.9 Amendments.  This Agreement may be wholly or partially amended at any time or from time to time by the Administrator; provided,
that no amendment of this Agreement shall, without the written consent of Holder, impair any rights of Holder under this Agreement.

 

3.10 Not a Contract of Employment.  As partial consideration for the grant of the Performance Award by the Company, the Holder agrees to remain in the employ
of the Company or any Subsidiary (whichever is applicable) with such duties and responsibilities as the Company or any Subsidiary (as applicable) shall from time to time prescribe, for a period of at least one year after the Grant Date.  Nothing in this Agreement shall confer upon the Holder any right to continue in the employ of the Company or any Subsidiary, or shall interfere with or restrict in any way any otherwise existing rights of the Company and any Subsidiary, which are hereby expressly reserved,
to discharge the Holder at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company and Holder.

 

3.11 Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to
the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Holder and his or her heirs, executors, administrators, successors and assigns.

 

3.12 Unfunded, Unsecured Obligations.  The obligations of the Company under the Plan and this Agreement shall be unfunded and unsecured, and nothing contained
herein shall be construed as providing for assets to be held in trust or escrow or any other form of segregation of the assets of the Company for the benefit of Holder or any other person.  Holder shall have only the rights of a general, unsecured creditor of the Company with respect to the Performance Award, unless and until cash shall be paid or shares of Common Stock shall be distributed to Holder under the terms and conditions of this Agreement.

 

3.13 Compliance in Form and Operation.  This Agreement and the Performance Award are intended to comply with Code Section 409A and the Treasury Regulations thereunder
and shall be interpreted in a manner consistent with that intention.

 

  

A-13

  

 

 

EXHIBIT C TO PERFORMANCE AWARD GRANT NOTICE

 

DEFERRAL ELECTION

 

	
Name of Participant:
	
Social Security No.:

	
Address:
	
Grant Date:  December 12, 2008

 

Unless otherwise defined herein or in the Performance Award Grant Notice evidencing the Performance Award granted to you on the date set forth above (the “Grant Notice”) or the Award Agreement attached to the Grant Notice (the “Award
Agreement”), the terms defined in our 2004 Incentive Award Plan, as amended (the “Plan”) shall have the same defined meanings in this Deferral Election.  Please complete Section 1, 2, and 3 and sign where indicated in Section 4.

 

	
Section 1:
	
  Deferral Election

 

Please select whether you would like to defer receipt of all or a portion of the Settlement Amount beyond the date determined in accordance with Section 2.4 of the Award Agreement.

 

	 	
o
	
I elect to defer receipt of the following portion of the Settlement Amount that may become payable to me:

 

Specify Deferral Percentage:

 

  _____% of the cash portion of the Settlement Amount (the “Cash Deferral”)

 

  _____% of the shares of Class A common stock, par value $.01 per share, of the Company (“Common Stock”) issuable as the share portion of the Settlement Amount (the “Share Deferral”)

 

(Each specified percentage must be a whole percentage from 0%, for no deferral, to 100% for full deferral, of that portion of the Settlement Amount.)

 

I understand that unless I elect to defer the payment of 100% of the cash portion of the Settlement Amount and 100% of the shares of Common Stock issuable as the share portion of the Settlement Amount, any portion of the Settlement Amount that is not deferred will be paid to me in accordance with Section 2.4 of the Award Agreement.  I
further understand that the deferral percentages specified will be applied separately to the portion of the Performance Award payable in cash and the portion of the Performance Award payable in shares of Common Stock.

 

For purposes of this Deferral Election, the Grant Notice and the Award Agreement, the Cash Deferral and the Share Deferral shall be collectively referred to as the “Deferred Amount”.

 

 

  

C-1

  

 

	
Section 2:
	
  Distribution Event Election – Deferred Amount

 

You may elect either to have payment of the Deferred Amount commence upon the earlier of (1) a specified date not earlier than August 30, 2011 or (2) the 30th day following your Separation from
Service (within the meaning of Code Section 409A(a)(2)(A)(i), as determined by the Secretary of the Treasury) with the Company or Subsidiary employing you.  Dates and methods of issuance may not be accelerated or changed.

 

	
  
	
o
	
Distribution Commencement Date Election:

 

I hereby irrevocably elect the following Distribution Commencement Dates for the commencement of the payment of the Cash Deferral and the Share Deferral, as applicable:

 

Distribution Commencement Date for the Cash Deferral:  ______________, 20____

 

Distribution Commencement Date for the Share Deferral: ______________, 20____

 

(The specified dates must be no earlier than August 30, 2011.)

 

I understand that if I do not make a Distribution Commencement Date Election above (or, if my Separation from Service occurs prior to the specified date), the Cash Deferral and the Share Deferral, as applicable, will be paid to me shortly following my Separation from Service (or, in the event I am a “specified employee” within the meaning
of Code Section 409A(a)(2)(B)(i), the date which is six months following my Separation from Service).

 

I understand that in the event of my death, or I become Disabled (as defined in the Award Agreement), prior to the Distribution Commencement Date(s) specified above, or if there is a 409A Change in Control (as defined in the Award Agreement) before or after the Distribution Commencement Date(s) specified above, the Cash Deferral and the Share Deferral,
as applicable, will be distributed to me, my beneficiary, or my estate, as the case may be, on an accelerated basis in a single lump sum in accordance with Section 2.5(b) of the Award Agreement.

 

I understand that the payment of the Deferred Amount will result in a tax liability and I have considered this and the Company’s policies regarding trading during blackout periods in electing my Distribution Commencement Date.

 

 

Remainder of page intentionally left blank.

  

C-2

  

 

	
Section 3:
	
  Lump Sum Payment or Installments – Deferred Amount

 

You may elect either to have the Deferred Amount paid to you in a single lump sum or in equal installments.  In the event that you do not elect a distribution form in accordance with this Section 3, the Deferred Amount will be issued to you in a single lump sum.  PLEASE
SELECT FOR EACH CASH DEFERRAL AND SHARE DEFERRAL ONE ELECTION (LUMP SUM OR INSTALLMENTS):

 

	
  
	
Lump Sum on the Distribution Commencement Date (specified above):

 

	
  
	
o
	
I hereby irrevocably elect to have the Cash Deferral paid to me in a single lump sum on the Distribution Commencement Date (specified above).

 

	     	
o
	
I hereby irrevocably elect to have the Share Deferral paid to me in a single lump sum on the Distribution Commencement Date (specified above).

 

	
  
	
Equal Annual or Semi-Annual Installments:

 

	
  
	
o
	
I hereby irrevocably elect to have the Cash Deferral paid to me in (check one):

 

	
  
	
o
	
equal annual installments, or

 

	
  
	
o
	
equal semi-annual installments over the following number of years:_____,

 

with the first installment occurring shortly following my Distribution Commencement Date (specified above) and applicable installments thereafter occurring on the last business day of each additional 12-month or 6-month period after such date.

 

	
  
	
o
	
I hereby irrevocably elect to have the Share Deferral paid to me in (check one):

 

	
  
	
o
	
equal annual installments, or

 

	
  
	
o
	
equal semi-annual installments over the following number of years:_____,

 

with the first installment occurring shortly following my Distribution Commencement Date (specified above) and applicable installments thereafter occurring on the last business day of each additional 12-month or 6-month period after such date.  Only whole shares of Common Stock will be issued on each distribution date.

 

The specified number of years for these elections must be a whole number of years equal or greater than 2.)

 

I understand that if I do not elect a distribution in installments, the Cash Deferral or the Share Deferral, as applicable, will be distributed to me in a lump sum.

 

I understand that in the event of my death, or I become Disabled (as defined in the Award Agreement), prior to the Distribution Commencement Date(s) specified above, or if there is a 409A Change in Control (as defined in the Award Agreement) before or after the Distribution Commencement Date(s) specified above, the Cash Deferral and the Share Deferral,
as applicable, will be distributed to me, my beneficiary, or my estate, as the case may be, on an accelerated basis in a single lump sum in accordance with Section 2.5(b) of the Award Agreement.

 

  

C-3

  

 

I understand that my elections set forth in this Deferral Election apply only with respect to the Deferred Amount payable under the Award Agreement, if any, and that such elections will not effect the payment of any other deferred amounts pursuant to any other award I may have received in the past or may receive in the future.

 

	
Section 4: 
	
 Authorization

 

I acknowledge that I have reviewed the Plan, the Grant Notice, the Award Agreement, and this Deferral Election in their entirety, have had an opportunity to obtain the advice of counsel prior to executing this Deferral Election, and fully understand all provisions of the Plan, the Grant Notice, the Award Agreement and this Deferral Election.  On
behalf of myself, my successors in interest and my assigns and all persons claiming under me, I agree to be bound by the statements contained herein and by the provisions of the Plan and this Deferral Election as they now exist and as they may be amended from time to time.  I hereby agree to accept as final, binding, and conclusive all decisions or interpretations of the Administrator of the Plan upon any questions arising under the Plan, the Grant Notice, the Award Agreement or this Deferral Election.

 

I acknowledge and agree that this Deferral Election shall not become effective and irrevocable until the earliest of (a) November 30, 2010, (b) the date of my Separation from Service or (c) the date that the Settlement Amount has become “readily ascertainable” within the meaning of
Treasury Regulation Section 1.409A-2(a)(8), regardless of the date I file this Deferral Election with the Company (the “Deferral Election Effective Date”).  I further understand that I will not be able to make any change to my Deferral Election after it becomes effective and irrevocable.

 

 

	
HOLDER:

 

	
By:                                                                

	
Print Name:                                                                

	
Address:                                                                

	                                                                                
	
Date:                                                                

 

You must return this Deferral Election to the General Counsel

of Schiff Nutrition International, Inc. on or before the Deferral Election Effective Date.

 

  

C-4Exhibit 10(b)  

 As amended and restated effective September 17, 2008

As amended and restated March 15, 2007 effective May 1, 2007

As amended and restated effective November 21, 2002

As amended and restated effective September 12, 2002

As amended and restated effective October 27, 2000  

 HEWLETT-PACKARD COMPANY 2000 STOCK PLAN  

1.     PURPOSES OF THE PLAN.  

        The purpose of this Plan is to encourage ownership in the Company by key personnel whose long-term employment is considered essential to the Company's
continued progress and, thereby, encourage recipients to act in the shareowner's interest and share in the Company's success. 

2.     DEFINITIONS.  

        As used herein, the following definitions shall apply: 

	(a)
	"Administrator" means the Board or any of its Committees as shall be administering the Plan, in accordance
with Section 4 of the Plan.

	(b)
	"Affiliate" means any entity that is directly or indirectly controlled by the Company or any entity in which
the Company has a significant ownership interest as determined by the Administrator.

	(c)
	"Applicable Laws" means the requirements relating to the administration of stock option plans under U.S.
federal and state laws, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign jurisdiction where Awards are, or will be, granted
under the Plan.

	(d)
	"Award" means a Cash Award, Stock Award, or Option granted in accordance with the terms of the Plan.

	(e)
	"Awardee" means the holder of an outstanding Award.

	(f)
	"Award Agreement" means a written or electronic agreement between the Company and an Awardee evidencing the
terms and conditions of an individual Award. The Award Agreement is subject to the terms and conditions of the Plan.

	(g)
	"Board" means the Board of Directors of the Company.

	(h)
	"Cash Awards" means cash awards granted pursuant to Section 12 of the Plan.

	(i)
	"Code" means the United States Internal Revenue Code of 1986, as amended.

	(j)
	"Committee" means a committee of Directors appointed by the Board in accordance with Section 4 of the
Plan.

	(k)
	"Common Stock" means the common stock of the Company.

	(l)
	"Company" means Hewlett-Packard Company, a Delaware corporation.

	(m)
	"Consultant" means any person, including an advisor, engaged by the Company or a Subsidiary to render
services to such entity or any person who is an advisor, director or consultant of an Affiliate.

	(n)
	"Director" means a member of the Board. 

1

 

	(o)
	"Employee" means a regular employee of the Company, any Subsidiary or any Affiliate, including Officers and
Directors, who is treated as an employee in the personnel records of the Company or its Subsidiary for the relevant period, but shall exclude individuals who are classified by the Company or its
Subsidiary as (A) leased from or otherwise employed by a third party; (B) independent contractors; or (C) intermittent or temporary, even if any such classification is changed
retroactively as a result of an audit, litigation or otherwise. An Awardee shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or its Subsidiary or
(ii) transfers between locations of the Company or between the Company, any Subsidiary, or any successor. Should an Awardee transfer from the Company to Agilent Technologies, Inc. prior
to the Distribution Date (as defined in Section 1.20 of the Employees Matter Agreement between Agilent Technologies, Inc. and the Company), the Awardee will cease to be an Employee at
the time of such transfer. Neither service as a Director nor payment of a director's fee by the Company shall be sufficient to constitute "employment" by the Company.

	(p)
	"Exchange Act" means the Securities Exchange Act of 1934, as amended.

	(q)
	"Fair Market Value" means, unless the Administrator deems otherwise, as of any date, the closing sales price
for such Common Stock as of such date (or if no sales were reported on such date, the closing sales price on the last preceding day on which a sale was made) as reported in such source as the
Administrator deems reliable.

	(r)
	"Grant Date" means the date selected by the Administrator, from time to time, upon which Awards are granted
to Participants pursuant to this Plan.

	(s)
	"Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder.

	(t)
	"Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option.

	(u)
	"Officer" means a person who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

	(v)
	"Option" means a stock option granted pursuant to the Plan. Options granted under the Plan may be Incentive
Stock Options or Nonstatutory Stock Options.

	(w)
	"Participant" means an Employee, Director or Consultant.

	(x)
	"Plan" means this 2000 Stock Plan.

	(y)
	"Restricted Stock" means shares of Common Stock acquired pursuant to a grant of a Stock Award under
Section 11 of the Plan.

	(z)
	"Share" means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan.

	(aa)
	"Stock Awards" means an award of a right to purchase or receive Common Stock or Stock Units pursuant to
Section 11 of the Plan.

	(bb)
	"Stock Unit" means a bookkeeping entry representing an amount equivalent to the fair market value of one
Share, payable in cash, property or Shares. Stock Units represent an unfunded and unsecured obligation of the Company, except as otherwise provided for by the Administrator.

	(cc)
	"Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in
Section 424(f) of the Code. 

2

 

3.     STOCK SUBJECT TO THE PLAN.  

        Subject to the provisions of Section 14 and Section 6(d) of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is
250,000,000 Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. Preferred stock may be issued in lieu of Common Stock for Awards. 

        If
an Award expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto, if any, shall become available for future grant or
sale under the Plan (unless the Plan has terminated). Shares of Restricted Stock that are either forfeited or repurchased by the Company at their original purchase price shall become available for
future grant or sale under the Plan. Shares underlying a forfeited Stock Unit Award shall become available for future grant or sale under the Plan. Shares that are tendered, whether by physical
delivery or by attestation, to the Company by the Awardee as full or partial payment of the exercise price of any Award or in payment of any applicable withholding for federal, state, city, local or
foreign taxes incurred in connection with any Award shall become available for future grant or sale under the Plan; provided, however, that the total number of Shares so tendered from which Incentive
Stock Options may be granted shall not exceed 250,000,000. 

4.     ADMINISTRATION OF THE PLAN.  

	(a)
	Procedure.

 
	(i)
	 Multiple Administrative Bodies.    The Plan may be administered by different Committees with respect to different groups
of Participants.

	(ii)
	Section 162.    To the extent that the Administrator determines it to be desirable to
qualify Awards granted hereunder as "performance-based compensation" within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

	(iii)
	Rule 16-3.    To the extent desirable to qualify transactions hereunder as
exempt under Rule 16b-3 promulgated under the Exchange Act ("Rule 16b-3"), the transactions contemplated hereunder shall be structured to satisfy the requirements
for exemption under Rule 16b-3.

	(iv)
	Other Administration.    The Board may delegate to the Executive Committee of the Board (the
"Executive Committee") the power to approve Awards to Participants who are not (A) subject to Section 16 of the Exchange Act or (B) at the time of such approval, "covered
employees" under Section 162(m) of the Code.

	(v)
	Delegation of Authority for the Day-to-Day Administration of the
Plan.    Except to the extent prohibited by applicable law or applicable rules of a stock exchange, the Board or any of its committees as shall be administering the
Plan may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. The delegation may be revoked at
any time.

	(b)
	Powers of the Administrator.    Subject to the provisions of the Plan, and in the case of a
Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

	(i)
	to
select the Participants to whom Awards may be granted hereunder;

	(ii)
	to
determine the number of shares of Common Stock to be covered by each Award granted hereunder;

	(iii)
	to
approve forms of agreement for use under the Plan; 

3

 

	(iv)
	to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but
are not limited to, the exercise price, the time or times when an Award may be exercised (which may or may not be based on performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

	(v)
	to
suspend the right to exercise Awards during any blackout period that is necessary or desirable to comply with the requirements of Applicable Laws and to
extend the Award exercise period for an equal period of time;

	(vi)
	to
construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;

	(vii)
	to
adopt rules and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and
procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A) to adopt the rules and procedures regarding the conversion of local currency,
withholding procedures and handling of stock certificates which vary with local requirements, (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to
accommodate foreign tax laws, regulations and practice;

	(viii)
	to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans and Plan
addenda;

	(ix)
	to
modify or amend each Award, including the discretionary authority to extend the post-termination exercisability period of Options longer
than is otherwise provided for in the Plan, provided, however, that any such amendment is subject to Section 15(c) of the Plan and may not impair any outstanding Award unless agreed to in
writing by the Awardee;

	(x)
	to
allow Awardees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued pursuant to an Award that
number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be
withheld is to be determined. All elections by an Awardee to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or
advisable;

	(xi)
	to
authorize conversion or substitution under the Plan of any or all outstanding stock options or outstanding stock appreciation rights held by service
providers of an entity acquired by the Company (the "Conversion Options"). Any conversion or substitution shall be effective as of the close of the merger or acquisition. The Conversion Options may be
Nonstatutory Stock Options or Incentive Stock Options, as determined by the Administrator; provided, however, that with respect to the conversion of stock appreciation rights in the acquired entity,
the Conversion Options shall be Nonstatutory Stock Options. Unless otherwise determined by the Administrator at the time of conversion or substitution, all Conversion Options shall have the same terms
and conditions as Options generally granted by the Company under the Plan;

	(xii)
	to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the
Administrator;

	(xiii)
	to
make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder. 

4

 

	(c)
	Effect of Administrator's Decision.    The Administrator's decisions, determinations and
interpretations shall be final and binding on all Awardees. 

5.     ELIGIBILITY.  

        Awards may be granted to Participants, provided, however, that Incentive Stock Options may be granted only to Employees of the Company or any Subsidiary. 

6.     LIMITATIONS.  

	(a)
	Each
Option shall be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such
designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during any calendar year
(under all plans of the Company and any Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options
shall be taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted.

	(b)
	For
purposes of Incentive Stock Options, no leave of absence may exceed ninety (90) days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave an Awardee's employment with
the Company shall be deemed terminated for Incentive Stock Option purposes and any Incentive Stock Option held by the Awardee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option three (3) months thereafter.

	(c)
	No
Participant shall have any claim or right to be granted an Award and the grant of any Award shall not be construed as giving a Participant the right to
continue in the employ of the Company, its Subsidiaries or Affiliates. Further, the Company, its Subsidiaries and Affiliates expressly reserve the right, at any time, to dismiss a Participant at any
time without liability or any claim under the Plan, except as provided herein or in any Award Agreement entered into hereunder.

	(d)
	The
following limitations shall apply to grants of Awards:

	(i)
	No
Participant shall be granted, in any fiscal year of the Company, Options to purchase more than 10,000,000 Shares.

	(ii)
	In
connection with his or her initial service, a Participant may be granted Options to purchase up to an additional 10,000,000 Shares which shall not count
against the limit set forth in subsection (i) above.

	(iii)
	If
an Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in
Section 14), the cancelled Option will be counted against the limits set forth in subsections (i) and (ii) above.

	(iv)
	The
maximum aggregate number of Shares underlying Stock Awards that may be granted under this Plan is twenty million (20,000,000) Shares.

	(v)
	The
maximum aggregate number of Shares underlying Non-Statutory Stock Options with an exercise price of less than Fair Market Value on the Grant
Date that may be granted under Section 9(a)(ii) of this Plan is thirty million (30,000,000) Shares.

	(vi)
	The
foregoing limitations shall be adjusted proportionately in connection with any change in the Company's capitalization as described in
Section 14. 

5

 

7.     TERM OF PLAN.  

        Subject to Section 20 of the Plan, the Plan shall become effective upon its adoption by the Board. It shall continue in effect for a term of ten
(10) years from the later of the date the Plan or any amendment to add shares to the Plan is adopted by the Board unless terminated earlier under Section 15 of the Plan. 

8.     TERM OF AWARD.  

        The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In the case of an Option, the term shall be ten
(10) years from the Grant Date or such shorter term as may be provided in the Award Agreement; provided that the term may be 101/2 years in certain jurisdictions outside the
United States as determined by the Administrator. 

9.     OPTION EXERCISE PRICE AND CONSIDERATION.  

	(a)
	Exercise Price.    The per share exercise price for the Shares to be issued pursuant to exercise
of an Option shall be determined by the Administrator, subject to the following:

	(i)
	In
the case of an Incentive Stock Option the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant Date.

	(ii)
	In
the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than seventy-five percent (75%) of the Fair Market
Value per Share on the Grant Date. In the case of a Nonstatutory Stock Option intended to qualify as "performance-based compensation" within the meaning of Section 162(m) of the Code, the per
Share exercise price shall be no less than 100% of the Fair Market Value per Share on the Grant Date.

	(iii)
	Notwithstanding
the foregoing, at the Administrator's discretion, Conversion Options (as defined in Section 4(b)(x)) may be granted with a per
Share exercise price of less than 100% of the Fair Market Value per Share on the Grant Date and shall not be subject to the provisions of Section 6(d)(v) above.

	(iv)
	Other
than in connection with a change in the Company's capitalization (as described in Section 14(a)), Options may not be repriced, replaced,
regranted through cancellation or modified without shareowner approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price of such Incentive
Stock Options or Nonstatutory Stock Options.

	(b)
	Vesting Period and Exercise Dates.    At the time an Option is granted, the Administrator shall
fix the period within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised.

	(c)
	Form of Consideration.    The Administrator shall determine the acceptable form of consideration
for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the Grant Date.
Acceptable forms of consideration may include:

	(i)
	cash;

	(ii)
	check
or wire transfer (denominated in U.S. Dollars);

	(iii)
	other
Shares which (A) in the case of Shares acquired upon exercise of an Option, have been owned by the Awardee for more than six months on the
date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 

6

 

	(iv)
	consideration
received by the Company under a cashless exercise program implemented by the Company in connection with the Plan;

	(v)
	any
combination of the foregoing methods of payment; or

	(vi)
	such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

7

 

 10.   EXERCISE OF OPTION.  

	(a)
	Procedure for Exercise; Rights as a Shareowner.    Any Option granted hereunder shall be
exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the respective Award Agreement. No Option may be
exercised during any leave of absence other than an approved personal or medical leave with an employment guarantee upon return. An Option shall continue to vest during any authorized leave of absence
and such Option may be exercised to the extent vested upon the Awardee's return to active employment status. An Option may not be exercised for a fraction of a Share. 

An
Option shall be deemed exercised when the Company receives (i) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the
Option; (ii) full payment for the Shares with respect to which the related Option is exercised; and (iii) with respect to Nonstatutory Stock Options, payment of all applicable
withholding taxes due upon such exercise. 

Shares
issued upon exercise of an Option shall be issued in the name of the Awardee or, if requested by the Awardee, in the name of the Awardee and his or her spouse. Until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareowner shall
exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised.
No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 14 of the Plan. 

Exercising
an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option
is exercised.  

	(b)
	Termination of Employment.    Unless otherwise provided for by the Administrator in the Award
Agreement, if an Awardee ceases to be an Employee, other than as a result of circumstances described in Sections 10(c), (d), (e) and (f) below, the Awardee's Option, whether
vested or unvested, shall terminate immediately upon the Awardee's termination. On the date of the Awardee's termination of employment, the Shares covered by the unvested portion of his or her Option
shall revert to the Plan. If, prior to termination of employment, the Awardee does not exercise his or her vested Option, the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

	(c)
	Disability or Retirement of Awardee.    Unless otherwise provided for by the Administrator in the
Award Agreement, if an Awardee ceases to be an Employee as a result of the Awardee's total and permanent disability or retirement due to age, in accordance with the Company's or its Subsidiaries'
retirement policy, all unvested Options shall immediately vest and the Awardee may exercise his or her Option within three (3) years of the date of such disability or retirement for a
Nonstatutory Stock Option; within three (3) months of the date of such disability or retirement for an Incentive Stock Option; or if earlier, the expiration of the term of such Option. If the
Awardee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

	(d)
	Death of Awardee.    Unless otherwise provided for by the Administrator in the Award Agreement, if
an Awardee dies while an Employee, all unvested Options shall immediately vest and all Options may be exercised for one (1) year following the Awardee's death. The 

8

 

Option
may be exercised by the beneficiary designated by the Awardee (as provided in Section 16), the executor or administrator of the Awardee's estate or, if none, by the person(s) entitled to
exercise the Option under the Awardee's will or the laws of descent or distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.  

	(e)
	Voluntary Severance Incentive Program.    If an Awardee ceases to be an Employee as a result of
participation in the Company's or its Subsidiaries' voluntary severance incentive program approved by the Board or Executive Committee, all unvested Options shall immediately vest and all outstanding
Options shall be exercisable for three (3) months following the Awardee's termination (or such other period of time as provided for by the Administrator) or, if earlier, the expiration of the
term of such Option. If, after termination, of Awardee's employment the Awardee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered
by such Option shall revert to the Plan.

	(f)
	Divestiture.    If an Employee ceases to be a Participant because of a divestiture of the Company,
the Administrator may, in its sole discretion, make such Employee's outstanding Options fully vested and exercisable and provide that such Options remain exercisable for a period of time to be
determined by the Administrator. The determination of whether a divestiture will occur shall be made by the Administrator in its sole discretion. If, after the close of the divestiture, the Awardee
does not exercise his or her Option within the time specified therein, the Option shall terminate and the shares covered by such Option shall revert to the Plan.

	(g)
	Buyout Provisions.    At any time, the Administrator may, but shall not be required to, authorize
the Company to offer to buy out for a payment in cash or Shares an Award previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Awardee in
connection with such offer. 

11.   STOCK AWARDS.  

	(a)
	General.    Stock Awards may be issued either alone, in addition to, or in tandem with other
Awards granted under the Plan. After the Administrator determines that it will offer a Stock Award under the Plan, it shall advise the Awardee in writing or electronically, by means of an Award
Agreement, of the terms, conditions and restrictions related to the offer, including the number of Shares that the Awardee shall be entitled to receive or purchase, the price to be paid, if any, and,
if applicable, the time within which the Awardee must accept such offer. The offer shall be accepted by execution of an Award Agreement in the form determined by the Administrator. The Administrator
will require that all Shares subject to a right of repurchase or forfeiture be held in escrow until such repurchase right or risk of forfeiture lapses.

	(b)
	Forfeiture.    Unless the Administrator determines otherwise, the Award Agreement shall provide
for the forfeiture of the unvested Stock Award upon the Awardee ceasing to be an Employee except as provided below in Sections 11(c), (d) and (e). To the extent that the Awardee
purchased Common Stock pursuant to the Stock Award, the Company shall have a right to repurchase the unvested Common Stock at the original price paid by the Awardee upon Awardee ceasing to be a
Participant for any reason, except as provided below in Sections 11(c), (d) and (e).

	(c)
	Disability or Retirement of Awardee.    Unless otherwise provided for by the Administrator in the
Award Agreement, if an Awardee ceases to be an Employee as a result of the Awardee's total and permanent disability or retirement due to age, in accordance with the Company's or 

9

 

its
Subsidiaries' retirement policy, the Award shall continue to vest, provided the following conditions are met: 

	(i)
	The
Awardee shall not render services for any organization or engage directly or indirectly in any business which, in the opinion of the Administrator,
competes with, or is in conflict with the interest of, the Company. The Awardee shall be free, however, to purchase as an investment or otherwise stock or other securities of such organizations as
long as they are listed upon a recognized securities exchange or traded over-the-counter, or as long as such investment does not represent a substantial investment to the
Awardee or a significant (greater than 10%) interest in the particular organization. For the purposes of this subsection, a company (other than a Subsidiary) which is engaged in the business of
producing, leasing or selling products or providing services of the type now or at any time hereafter made or provided by the Company shall be deemed to compete with the Company;

	(ii)
	The
Awardee shall not, without prior written authorization from the Company, use in other than the Company's business, any confidential information or
material relating to the business of the Company, either during or after employment with the Company;

	(iii)
	The
Awardee shall disclose promptly and assign to the Company all right, title and interest in any invention or idea, patentable or not, made or conceived
by the Awardee during employment by the Company, relating in any manner to the actual or anticipated business, research or development work of the Company and shall do anything reasonably necessary to
enable the Company to secure a patent where appropriate in the United States and in foreign countries; and

	(iv)
	An
Awardee retiring due to age shall render, as a Consultant and not as an Employee, such advisory or consultative services to the Company as shall be
reasonably requested by the Board or the Executive Committee in writing from time to time, consistent with the state of the retired Awardee's health and any employment or other activities in which
such Awardee may be engaged. For purposes of this Plan, the Awardee shall not be required to devote a major portion of time to such services and shall be entitled to reimbursement for any reasonable
out-of-pocket expenses incurred in connection with the performance of such services.

	(d)
	Death of Awardee.    Unless otherwise provided for by the Administrator in the Award Agreement, if
an Awardee dies while an Employee, the Stock Award shall immediately vest and all forfeiture provisions and repurchase rights shall lapse as to a prorated number of shares determined by dividing the
number of whole months since the Grant Date by the number of whole months between the Grant Date and the date that the Stock Award would have fully vested (as provided for in the Award Agreement). The
vested portion of the Stock Award shall be delivered to the beneficiary designated by the Awardee (as provided in Section 16), the executor or administrator of the Awardee's estate or, if none,
by the person(s) entitled to receive the vested Stock Award under the Awardee's will or the laws of descent or distribution.

	(e)
	Voluntary Severance Incentive Program.    If an Awardee ceases to be an Employee as a result of
participation in the Company's or its Subsidiaries' voluntary severance incentive program approved by the Board or Executive Committee, the Stock Award shall immediately vest and all forfeiture
provisions and repurchase rights shall lapse as to a prorated number of shares determined by dividing the number of whole years since the Grant Date by the number of whole years between the Grant Date
and the date that the Stock Award would have fully vested (as provided for in the Award Agreement). 

10

 

	(f)
	Rights as a Shareowner.    Unless otherwise provided for by the Administrator, the Awardee shall
have the rights equivalent to those of a shareowner and shall be a shareowner only after Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) to the Awardee. 

12.   CASH AWARDS.  

        Cash Awards may be granted either alone, in addition to, or in tandem with other Awards granted under the Plan. After the Administrator determines that it will
offer a Cash Award, it shall advise the Awardee in writing or electronically, by means of an Award Agreement, of the terms, conditions and restrictions related to the Cash Award. 

13.   NON-TRANSFERABILITY OF AWARDS.  

        Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than
by beneficiary designation, will or by the laws of descent or distribution and may be exercised, during the lifetime of the Awardee, only by the Awardee. If the Administrator makes an Award
transferable, such Award shall contain such additional terms and conditions as the Administrator deems appropriate.  

	14.
	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR ASSET SALE.

	(a)
	Changes in Capitalization.    Subject to any required action by the shareowners of the Company,
the number and kind of shares of Common Stock covered by each outstanding Award, and the number and kind of shares of Common Stock which have been authorized for issuance under the Plan but as to
which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award, as well as the price per share of Common Stock covered by each such
outstanding Award, shall be proportionately adjusted for any increase or decrease in the number or kind of issued shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by
the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company 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 of Common Stock subject to an Award.

	(b)
	Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the
Company, the Administrator shall notify each Awardee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Option to
be fully vested and exercisable until ten (10) days prior to such transaction. In addition, the Administrator may provide that any restrictions on any Award shall lapse prior to the
transaction, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Award will terminate
immediately prior to the consummation of such proposed transaction.

	(c)
	Merger or Asset Sale.    In the event there is a change of control of the Company, as determined
by the Board, the Board may, in its discretion, (A) provide for the assumption or substitution of, or adjustment to, each outstanding Award; (B) accelerate the vesting of 

11

 

Options
and terminate any restrictions on Cash Awards or Stock Awards; and (C) provide for the cancellation of Awards for a cash payment to the Awardee. 

15.   AMENDMENT AND TERMINATION OF THE PLAN.  

	(a)
	Amendment and Termination.    The Board may at any time amend, alter, suspend or terminate the
Plan.

	(b)
	Shareowner Approval.    The Company shall obtain shareowner approval of any Plan amendment to the
extent necessary and desirable to comply with Applicable Laws.

	(c)
	Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the
Plan shall impair the rights of any Award, unless mutually agreed otherwise between the Awardee and the Administrator, which agreement must be in writing and signed by the Awardee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 

16.   DESIGNATION OF BENEFICIARY.  

	(a)
	An
Awardee may file a written designation of a beneficiary who is to receive the Awardee's rights pursuant to Awardee's Award or the Awardee may
include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the extent that Awardee has completed a designation of beneficiary while employed with
Hewlett-Packard Company, such beneficiary designation shall remain in effect with respect to any Award hereunder until changed by the Awardee.

	(b)
	Such
designation of beneficiary may be changed by the Awardee at any time by written notice. In the event of the death of an Awardee and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such Awardee's death, the Company shall allow the executor or administrator of the estate of the Awardee to exercise the
Award, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the
Awardee to exercise the Award. 

17.   LEGAL COMPLIANCE.  

        Shares shall not be issued pursuant to the exercise of an Option or Stock Award unless the exercise of such Option or Stock Award and the issuance and delivery of
such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

18.   INABILITY TO OBTAIN AUTHORITY.  

        To the extent the Company is unable to or the Administrator deems it infeasible to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, the Company shall be relieved of
any liability with respect to the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

19.   RESERVATION OF SHARES.  

        The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements
of the Plan. 

12

 

20.   SHAREOWNER APPROVAL.  

        The Plan shall be subject to approval by the shareowners of the Company within twelve (12) months of the date the Plan is adopted. Such shareowner approval
shall be obtained in the manner and to the degree required under Applicable Laws. 

21.   NOTICE.  

        Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be effective when received. 

22.   GOVERNING LAW.  

        This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice of law rules, of the state
of Delaware. 

23.   UNFUNDED PLAN.  

        Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Participants who are granted
Awards of Shares under this Plan, any such accounts will be used merely as a bookkeeping convenience. Except for the holding of Restricted Stock in escrow pursuant to Section 11, the Company
shall not be required to segregate any assets which may at any time be represented by Awards, nor shall this Plan be construed as providing for such segregation, nor shall the Company nor the
Administrator be deemed to be a trustee of stock or cash to be awarded under the Plan. Any liability of the Company to any Awardee with respect to an Award shall be based solely upon any contractual
obligations which may be created by the Plan; no such obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor
the Administrator shall be required to give any security or bond for the performance of any obligation which may be created by this Plan. 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]