Document:

Exhibit

FIRST AMENDMENT TO
INTELLECTUAL PROPERTY LICENSE
This First Amendment to Intellectual Property License (the “Amendment”) is dated as of April 9, 2019 but shall be effective as of January 31, 2019 (the “Amendment Effective Date”) by and between, on the one hand, Hologic, Inc., a Delaware corporation (“Hologic”), and Gen-Probe Incorporated, a Delaware corporation (“Gen-Probe”, and together with Hologic, “Licensor”), and, on the other hand, Grifols Diagnostic Solutions Inc., a Delaware corporation (“Licensee”).  Licensor and Licensee are referred to herein individually as a “Party” and collectively as the “Parties”.
RECITALS
WHEREAS, Hologic, Gen-Probe and Licensee entered into that certain Intellectual Property License effective as of January 31, 2017 (the “Agreement”); and
WHEREAS, Licensor and Licensee wish to amend the Agreement to extend the term of the Trademark Term and provide for the payment of certain consideration by Licensee to Licensor for such extension of the Trademark Term.
NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
TERMS
		
	1.
	Definitions.  All capitalized terms used in this Amendment but not otherwise defined herein will have the respective meaning given to such terms in the Agreement.

		
	2.
	Amendment to Section 3.1.  Section 3.1 of the Agreement is hereby amended and restated to read in its entirety as follows:

“Section 3.1    License Grant.  Subject to the terms and conditions set forth in this Agreement, Licensor hereby grants, and shall cause its applicable Affiliates (including Gen‐Probe) to grant, to Licensee, and Licensee hereby accepts, a non-exclusive, worldwide, fully paid-up, royalty-free, non-sublicenseable (except as set forth in Section 2.1(c)), non-transferable (except as set forth in Section 10.12) license to use the Licensed Marks in connection with the Exploitation of Licensed Products in the Licensed Fields during the Trademark Term.
		
	(a)
	Starting with the third year of the Trademark Term (such third year commencing on February 1, 2019 and ending on January 31, 2020) and provided that the Licensed Marks remain in force, Licensee shall pay to Licensor an annual license fee of US$1,000,000 for each remaining year of the Trademark Term.  Such fee will accrue on January 1 of each year of the Trademark Term and shall be paid in 

equal quarterly installments (each, a “Trademark License Payment”) 60 days from the date Licensee receives Licensor’s invoice, provided that for the last month of the Trademark Term, the fee shall be reduced by 1/12th so that no fee applies to the last month of the Trademark Term.
		
	(b)
	For the avoidance of doubt, (x) Licensee shall not be entitled to a refund of any portion of any quarterly Trademark License Payment for a quarterly period that began prior to the effective time of any termination of the Trademark Term and (y) Licensee shall not be required to make any quarterly Trademark License Payments for any quarterly period that begins after the effective time of any such termination of the Trademark Term.”

		
	3.
	Amendment to Section 4.1.  Section 4.1 of the Agreement is hereby amended and restated to read in its entirety as follows:

“Section 4.1    Agreement Term.  This Agreement and the licenses granted herein shall be effective as of the Effective Date and shall remain in effect perpetually, other than (a) with respect to the Licensed Marks, subject to Section 3.3, the rights granted hereunder shall endure until the seventh anniversary of the Effective Date (the “Trademark Term”), provided that starting in the third year of the Trademark Term Licensee shall have the right to terminate the license with respect to the Licensed Marks for convenience by providing Licensor with at least twelve months prior written notice in accordance with the terms of Section 10.5 (Notices), (b) with respect to the Licensed Patents, the rights granted hereunder shall endure until the expiration of the last to expire claim in such Licensed Patents and, in the event there becomes a time when no issued Patents remain, such time when the last claim in an applied-for Patent has been pending for ten years (the “Patent Term”), (c) with respect to the Licensed Copyrights, the rights granted hereunder shall endure until the expiration of the last to expire of the Licensed Copyrights (the “Copyright Term”) and (d) with respect to the Licensed Know-How, Licensor Improvements and Licensee Improvements, the rights granted hereunder shall endure for so long as any rights in such Licensed Know-How, Licensor Improvements and Licensee Improvements remain in effect (the “Know-How Term”, and together with the Trademark Term, Patent Term and Copyright Term, the “Term”).”
		
	4.
	Amendment to Section 4.4.  Section 4.4 of the Agreement is hereby amended and restated to read in its entirety as follows:

“Section 4.4    Effect of Termination.  Upon the termination of this Agreement or the termination of a license granted hereunder, in each case pursuant to Section 4.1, Section 4.2 or Section 4.3, the applicable license granted in this Agreement shall terminate and Licensee shall have no further right to use 

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such Licensed Intellectual Property (other than Jointly Owned Intellectual Property) and shall cease using any inventions or refrain from making, using, selling, offering for sale and importing any product covered by such Licensed Intellectual Property (other than Jointly Owned Intellectual Property).”
		
	5.
	No Other Amendments.  Except as expressly provided in this Amendment, the Agreement is, and shall continue to be, in full force and effect in accordance with its terms, without further amendment thereto.

		
	6.
	Counterparts.  This Amendment may be executed in two or more counterparts, all of which shall be considered one and the same instrument and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties.

		
	7.
	Facsimile or .pdf Signature.  This Amendment may be executed by facsimile or .pdf signature and a facsimile or .pdf signature shall constitute an original for all purposes.

		
	8.
	Governing Law.  This Amendment and all disputes or controversies arising out of or relating to this Amendment or the transactions contemplated hereby shall be governed by, and construed in accordance with, the internal laws of the State of New York, without regard to the laws of any other jurisdiction that might be applied because of the conflicts of laws principles of the State of New York.

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed as of the Amendment Effective Date by their respective officers thereunto duly authorized.
HOLOGIC, INC.
		
	By:
	/s/ Thomas A. West     
Name:  Thomas A. West 
Title:    President, Diagnostic Solutions Division

GEN-PROBE INCORPORATED
		
	By:
	/s/ John M. Griffin     
Name:  John M. Griffin 
Title:    President

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GRIFOLS DIAGNOSTIC SOLUTIONS INC.
		
	By:
	/s/ Carsten Schroeder     
Name:  Carsten Schroeder 
Title:    President and CEO

4exhibit101mccocagreement

                                          EMPLOYMENT AGREEMENT       AGREEMENT  by  and  between  State  Street  Corporation,  a  Massachusetts  corporation (the “Company”), and                                            (the “Executive”), dated as  of the __ day of ________, 20__.       The Board of Directors of the Company (the “Board”) has determined that it is in  the best interests of the Company and its shareholders to assure that the Company will  have the continued dedication of the Executive, notwithstanding the possibility, threat or  occurrence  of  a  Change  of  Control  (as  defined  in  Section  2)  of  the  Company.   The  Board believes that it is imperative to diminish the inevitable distraction of the Executive  by  virtue  of  the  personal  uncertainties  and  risks  created  by  a  pending  or  threatened  Change of Control and to encourage the Executive’s full attention and dedication to the  Company Group (as defined in Section 1) currently and in the event of any threatened  or  pending  Change  of  Control, and  to  provide  the  Executive  with  compensation  and  benefits arrangements upon a Change of Control which ensure that the compensation  and benefits expectations of the Executive will be addressed appropriately.  Therefore,  in order to accomplish these objectives, the Board caused the Company to enter into  this Agreement.          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:           1. Certain  Definitions.   For  purposes  of  this  Agreement,  including,  without  limitation,  Sections  5 and  6,  the  terms  described  in  Sections  1(a),  1(b) and  1(c)  shall  have the meanings set forth therein:               (a)  The “Effective Date” shall mean the first date during the Change of  Control  Period  (as  defined  in  Section 1(b))  on  which  a  Change  of  Control  occurs.   Anything  in  this  Agreement  to  the  contrary notwithstanding,  if  a  Change  of  Control  occurs and if the Executive’s employment with the Company Group is terminated prior  to the date on which the Change of Control occurs, and if it is reasonably demonstrated  by the Executive that such termination of employment (i) was at the request of a third  party  who  has  taken  steps  reasonably  calculated  to  effect  a  Change  of  Control  or  (ii) otherwise arose in connection with or anticipation of a Change of Control, then for all  purposes of this Agreement the “Effective Date” shall mean the date immediately prior  to the date of such termination of employment.                (b)  The “Change of Control Period” shall mean the period commencing  on  the  date  hereof  and  ending  on  December 31,  2020; provided, however,  that  commencing  on  December 31,  2019,  and  on  each  annual  anniversary  of  such  date  (such date and each annual anniversary thereof shall be hereinafter referred to as the  “Renewal Date”), unless previously terminated, the Change of Control Period shall be  automatically extended so as to terminate two years from such Renewal Date, unless at  least 60 days prior to the Renewal Date the Company shall give notice to the Executive  that the Change of Control Period shall not be so extended.                (c)  The “Company Group” shall mean the Company and any company  controlled by, controlling or under common control with the Company.           2. Change  of  Control.   For  the  purpose  of  this  Agreement,  a  “Change  of  Control” shall mean:      

 

                (a)  The  acquisition  by  any  individual,  entity  or  group  (within  the  meaning of  Section 13(d)(3)  or  14(d)(2)  of  the  Securities  Exchange  Act  of  1934,  as  amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning  of  Rule 13d-3  promulgated  under  the  Exchange  Act)  of  25%  or  more  of  either  (i) the  then-outstanding shares of common stock of the Company (the “Outstanding Company  Common  Stock”)  or  (ii) the  combined  voting  power  of  the  then-outstanding  voting  securities  of  the  Company  entitled  to  vote  generally  in  the  election  of  directors  (the  “Outstanding Company Voting Securities”); provided, however, that for purposes of this  subsection (a),  the  following  acquisitions  shall  not  constitute  a  Change  of  Control:  (A) any  acquisition  directly  from  the  Company,  (B) any  acquisition  by  the  Company,  (C) any  acquisition  by  any  employee  benefit  plan  (or  related  trust)  sponsored  or  maintained by the Company or any corporation controlled by the Company or (D) any  acquisition by any corporation pursuant to a transaction which complies with clauses (i),  (ii) and (iii) of subsection (c) of this Section 2; or                (b)  Individuals  who,  as  of  the  date  hereof,  constitute  the  Board  (the  “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;  provided, however,  that  any  individual  becoming  a  director subsequent  to  the  date  hereof whose election, or nomination for election by the Company’s shareholders, was  approved by a vote of at least a majority of the directors then comprising the Incumbent  Board shall be considered as though such individual were a member of the Incumbent  Board, but excluding, for this purpose, any such individual whose initial assumption of  office occurs as a result of an actual or threatened election contest with respect to the  election or removal of  directors or other actual or threatened  solicitation of  proxies  or  consents by or on behalf of a Person other than the Board; or                (c)  Consummation of a reorganization, merger or consolidation or sale  or other disposition of all or substantially all of the assets of the Company (a “Business  Combination”),  in  each  case,  unless,  following  such  Business  Combination,  (i) all  or  substantially  all  of  the  individuals  and  entities  who  were  the  beneficial  owners,  respectively,  of  the  Outstanding  Company  Common  Stock and  Outstanding  Company  Voting Securities  immediately  prior  to  such  Business  Combination  beneficially  own,  directly  or  indirectly,  more  than  50%  of,  respectively,  the  then-outstanding  shares  of  common stock and the combined voting power of the then-outstanding voting securities  entitled to  vote  generally  in  the  election  of  directors,  as  the  case  may  be,  of  the  corporation  resulting  from  such  Business  Combination  (including,  without  limitation,  a  corporation  which  as  a  result  of  such  transaction  owns  the  Company  or  all  or  substantially  all  of  the  Company’s  assets  either  directly  or  through  one  or  more  subsidiaries) in substantially the same proportions as their ownership, immediately prior  to  such  Business  Combination  of  the  Outstanding  Company  Common  Stock  and  Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding  any corporation resulting from such Business Combination or any employee benefit plan  (or  related  trust)  of  the  Company  or  such  corporation  resulting  from  such  Business  Combination) beneficially owns, directly or indirectly, 25% or more of, respectively, the  then-outstanding  shares  of  common  stock  of  the  corporation  resulting  from  such  Business  Combination  or  the  combined  voting  power  of  the  then-outstanding  voting  securities of such corporation except to the extent that such ownership existed prior to  the  Business  Combination  and  (iii) at  least a majority  of  the members of the  board of                                          2  

 

   directors of the corporation resulting from such Business Combination were members of  the  Incumbent  Board  at  the  time of  the  execution  of  the  initial  agreement,  or  of  the  action of the Board, providing for such Business Combination; or                (d)  Approval  by  the  shareholders  of  the  Company  of  a  complete  liquidation or dissolution of the Company.           3. Employment  Period.   The  Company  hereby  agrees  to  continue  the  Executive  in  the  employ  of  the  Company  Group,  and  the  Executive  hereby  agrees  to  remain in the employ of the Company Group, subject to the terms and conditions of this  Agreement, for the period commencing on the Effective Date and ending on the second  anniversary of the Effective Date (the “Employment Period”).           4. Terms of Employment.  (a) Position and Duties. (i) During the Employment  Period,  (A) the  Executive’s  position  (including  status,  offices,  titles  and  reporting  requirements),  authority,  duties  and  responsibilities  shall  be  at  least  commensurate  in  all material respects with the most significant of those held, exercised and assigned at  any  time  during  the  120-day  period  immediately  preceding  the  Effective  Date  and  (B) the Executive’s services shall be performed at the location where the Executive was  employed immediately preceding the Effective Date or any office or location less than  35 miles from such location.                    (ii)   During the Employment Period, and excluding any periods of  vacation  and  sick  leave  to  which  the  Executive  is  entitled,  the  Executive  agrees  to  devote reasonable attention and time during normal business hours to the business and  affairs  of  the  Company  Group  and,  to  the  extent  necessary  to  discharge  the  responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable  best  efforts  to  perform  faithfully  and  efficiently  such  responsibilities.   During  the  Employment  Period,  it  shall  not  be a  violation  of  this  Agreement  for  the  Executive  to  (A) serve  on  corporate,  civic  or  charitable  boards  or  committees,  (B) deliver  lectures,  fulfill  speaking  engagements  or  teach  at  educational  institutions  and  (C) manage  personal  investments,  so  long  as  such  activities  do  not  significantly  interfere  with  the  performance of the Executive’s responsibilities as an employee of the Company Group  in accordance with this Agreement.  It is expressly understood and agreed that to the  extent  that  any  such  activities have  been  conducted  by  the  Executive  prior  to  the  Effective  Date,  the  continued  conduct  of  such  activities  (or  the  conduct  of  activities  similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter  be  deemed  to  interfere  with the  performance  of  the  Executive’s responsibilities  to  the  Company Group.               (b)   Compensation.  (i) Base Salary. During the Employment Period, the  Executive shall receive the Executive’s annual base salary plus the annualized value of  any  role  based  allowance  in  place  as  of  the  Effective  Date, (together  referred  to  as  “Annual Base Salary”), which shall be paid at a monthly rate.  The calculation of Annual  Base Salary shall be in an amount at least equal to 12 times the highest monthly base  salary (plus any applicable role based allowance) paid or payable, including any base  salary (plus any applicable role based allowance) which has been earned but deferred,  in  respect  of  the  12-month  period  immediately  preceding  the  month  in  which  the  Effective Date occurs.  Such Annual Base Salary shall be payable as earned in equal                                           3  

 

   installments,  no  less  frequently  than  monthly,  pursuant  to  the  Company  Group’s  customary payroll policies applicable to the Executive in force at the time of payment,  less any required or authorized payroll deductions, and unless the Executive shall elect  to  defer  the  receipt  of  a  portion  of  such  Annual  Base  Salary  in  accordance  with  the  requirements  of  Section 409A  of  the  Internal  Revenue  Code  of  1986  (the  “Code”).   During the Employment Period, the Annual Base Salary shall be reviewed no more than  12 months after the last salary increase awarded to the Executive prior to the Effective  Date  and  thereafter  at  least  annually.   Any  increase  in  Annual  Base  Salary  shall  not  serve  to  limit  or  reduce  any other  obligation  to  the  Executive  under  this  Agreement.   Annual Base Salary shall not be reduced after any such increase and the term “Annual  Base  Salary”  as  utilized  in  this  Agreement  shall  refer  to  Annual  Base  Salary  as  so  increased.                    (ii)   Annual  Bonus.  In  addition  to  Annual  Base  Salary,  the  Executive shall be awarded, for each fiscal year ending during the Employment Period,  an  annual  bonus  (the  “Annual  Bonus”)  in  cash  at  least  equal  to  the  product  of  the  Annual Base Salary and the ratio (expressed as a percentage) obtained by dividing (A)  the  cash  portion of the annual incentive  compensation award actually  awarded  to  the  Executive under the Company Group annual incentive plan applicable to the Executive,  or any successor plan in effect from time to time, for the last full fiscal year prior to the  Effective Date by (B) the Annual Base Salary (or, in the event that the Executive was  not employed by the Company during such fiscal year or was otherwise not a participant  in any such plan, 200%) (the “Recent Annual Bonus Percentage”).  For the purposes of  this section 4(b)(ii), the cash portion of the Executive’s annual incentive compensation  award will be deemed to include any award denominated in cash (as opposed to equity  interests), whether  payable  immediately  or  on  a  deferred  basis,  and,  if  deferred,  whether  notionally  invested  in Company stock  or  other  notional  investment  option  for  the deferral period.  Each such Annual Bonus shall be paid in a single lump sum in cash  no later than March 15th of the year succeeding the year for which the Annual Bonus is  earned,  unless  the  Executive  shall  elect  to  defer  receipt  of  such  Annual  Bonus  in  accordance with the requirements of Section 409A of the Code.                    (iii)  Incentive,  Savings  and  Retirement  Plans.   During  the  Employment  Period,  the  Executive  shall  be  entitled  to  participate  in  all  incentive,  savings and retirement plans, practices, policies and programs applicable generally to  other  peer  executives  of  the  Company  Group,  but  in  no  event  shall  such  plans,  practices,  policies  and  programs  provide  the  Executive  with  incentive  opportunities  (measured with respect to both regular and special incentive opportunities, to the extent,  if any, that such distinction is applicable), savings opportunities and retirement benefit  opportunities, in each case, less favorable, in the aggregate, than the most favorable of  those provided by the Company Group for the Executive under such plans, practices,  policies  and  programs  as  in effect  at any  time  during  the  120-day  period  immediately  preceding  the  Effective  Date  or,  if  more  favorable  to  the  Executive,  those  provided  generally at any time after the Effective Date to other peer executives of the Company  Group in the country in which the Executive is employed.  To the extent applicable, the  benefits provided to the Executive pursuant to this Section 4(b)(iii) shall be provided and  paid in compliance with the relevant requirements of Section 409A of the Code.                                             4  

 

                    (iv)   Welfare Benefit Plans.  During the Employment Period, the  Executive  and/or  the  Executive’s  family,  as  the  case  may  be,  shall  be  eligible  for  participation  in  and  shall  receive  all  benefits  under  welfare  benefit  plans,  practices,  policies  and  programs  provided  by  the  Company  Group  (including,  without  limitation,  medical, prescription, dental, disability,  employee  life,  group  life,  accidental death and  travel  accident  insurance  plans  and  programs)  to  the  extent  applicable  generally  to  other  peer  executives  of  the  Company  Group,  but  in  no  event  shall  such  plans,  practices,  policies and  programs  provide  the  Executive  and/or  the  Executive’s  family  with benefits that are less favorable, in the aggregate, than the most favorable of such  plans, practices, policies and programs in effect for the Executive at any time during the  120-day  period  immediately  preceding  the  Effective  Date  or,  if  more  favorable  to  the  Executive,  those  provided  generally  at  any  time after the Effective  Date  to  other  peer  executives of the Company Group in the country in which the Executive is employed.   To the extent applicable, the benefits provided to the Executive and/or the Executive’s  family pursuant to this Section 4(b)(iv) shall be provided and paid in compliance with the  relevant requirements of Section 409A of the Code.                    (v)    Expenses.   During  the  Employment  Period,  the  Executive  shall be entitled to receive prompt reimbursement for all reasonable expenses incurred  by  the  Executive  in  accordance  with  the  most  favorable  policies,  practices  and  procedures  of  the  Company  Group  in  effect  for  the  Executive  at  any time  during  the  120-day  period  immediately  preceding  the  Effective  Date  or,  if  more  favorable  to  the  Executive,  as  in  effect  generally  at  any  time  thereafter  with  respect  to  other  peer  executives of the Company Group in the country in which the Executive is employed.   Reimbursement shall be made as soon as practicable after a request for reimbursement  is  received  by  the  Company  Group,  but  in  no  event  later  than  the  last  day  of  the  calendar year next following the calendar year in which such expense was incurred.                    (vi)   Fringe  Benefits.   During  the  Employment  Period,  the  Executive shall be entitled to fringe benefits, including, without limitation, if applicable,  use  of  an  automobile and payment  of  related  expenses,  in  accordance  with  the  most  favorable plans, practices, programs and policies of the Company Group in effect for the  Executive  at  any  time  during  the  120-day  period  immediately  preceding  the  Effective  Date or, if more favorable to the Executive, as in effect generally at any time thereafter  with respect to other peer executives of the Company Group in the country in which the  Executive  is  employed.   Reimbursements  or  payments  shall  be  made  as  soon  as  practicable after a request for reimbursement or payments is received by the Company  Group,  but  in  no  event  later than  the  last  day  of  the  calendar year next  following  the  calendar  year  in  which  such  expense  was  incurred; provided that  the  amount  of  any  fringe benefits to be reimbursed or paid by the Company Group in one year shall not  affect any fringe benefits to be reimbursed or paid by the Company Group in any other  calendar year.                    (vii)  Office  and  Support  Staff.   During  the  Employment  Period,  the Executive shall be entitled to an office or offices of a size and with furnishings and  other appointments, and to exclusive personal secretarial and other assistance, at least  equal to the most favorable of the foregoing provided to the Executive by the Company  Group at any time during the 120-day period immediately preceding the Effective Date                                           5  

 

   or, if more favorable to the Executive, as provided generally at any time thereafter with  respect  to  other  peer  executives  of  the  Company  Group in  the  country  in  which  the  Executive is employed.                    (viii) Vacation.   During  the  Employment  Period,  the  Executive  shall be entitled to paid vacation in accordance with the most favorable plans, policies,  programs and practices of the Company Group as in effect for the Executive at any time  during  the  120-day  period  immediately  preceding  the  Effective  Date  or,  if  more  favorable to the Executive, as in effect generally at any time thereafter with respect to  other peer executives of the Company Group in the country in which the Executive is  employed.            5.   Termination of Employment.  For purposes of this Agreement, the terms  “terminate,”  “terminated”  and  “termination”  mean  a  termination  of  the  Executive’s  employment  that  constitutes  a  “separation  from  service” within  the  meaning  of  the  default  rules  set  forth  in  Section 1.409A-1(h)  of  the  Treasury  Regulations; provided,  however, that for purposes of determining which entities are treated as a single “service  recipient” with the Company, the phrase “at least 80 percent” shall be retained in each  place it appears in Sections 1563(a)(1), (2) and (3) of the Code and Section 1.414(c)-2  of the Treasury Regulations, as permitted under Section 1.409A-1(h)(3) of the Treasury  Regulations;  and provided further that  in  the event  that  the  Executive  is  absent  from  work  due  to  any  medically  determinable  physical  or  mental  impairment  that  can  be  expected  to  result  in death or can  be expected to  last for [a  continuous  period of not  less  than  six  months]  [for  Hong  Kong  employees: the  foreseeable  future,  and  no  reasonable accommodation can be made to facilitate a return to work] (an “Impairment”),  where such Impairment causes the Executive to be unable to perform the duties of his  position or any substantially similar position of employment, the Executive shall incur a  separation  from  service  29 months  after  the  date  on  which  the  Executive  was  first  Impaired.                (a)  Death  or  Disability.   The  Executive’s  employment  shall  terminate  automatically  upon  the  Executive’s  death  during  the  Employment  Period.   If  the  Company  determines  in  good  faith  that  the  Disability  of  the  Executive  has  occurred  during the Employment Period (pursuant to the definition of Disability set forth below), it  may give to the Executive written notice in accordance with Section 14(b) of its intention  to terminate the Executive’s employment.  In such event, the Executive’s employment  with the Company Group shall terminate effective on the 30th day after receipt of such  notice by the Executive (the “Disability Effective Date”); provided that, within the 30 days  after such receipt, the Executive shall not have returned to full-time performance of the  Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the absence  of  the  Executive  from  the  Executive’s  duties  with  the  Company  Group  on  a  full-time  basis for 180 consecutive days as a result of incapacity due to mental or physical illness  which is determined to be total and permanent by a physician selected by the Company  or its insurers and acceptable to the Executive or the Executive’s legal representative.                (b)  Cause.  The Company may terminate the Executive’s employment  during  the  Employment  Period  for  Cause.   For  purposes  of  this  Agreement,  “Cause”  shall mean:                                             6  

 

                    (i)    the  willful  and  continued  failure of  the  Executive  to  perform  substantially  the  Executive’s  duties  with  the  Company  Group  (other  than  any  such  failure  resulting  from  incapacity  due  to  physical  or  mental  illness),  after  a  written  demand for substantial performance is delivered to the Executive by the Board or the  Chief Executive Officer of the Company which specifically identifies the manner in which  the Board  or Chief Executive  Officer believes  that  the Executive  has  not  substantially  performed the Executive’s duties; or                    (ii)   the willful engaging by the Executive in illegal conduct or gross  misconduct that is materially and demonstrably injurious to the Company.       For purposes of this provision, no act or failure to act, on the part of the Executive,  shall be considered “willful” unless it is done, or omitted to be done, by the Executive in  bad faith or without reasonable belief that the Executive’s action or omission was in the  best interests of the Company.  Any act, or failure to act, based upon authority given  pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief  Executive Officer of the Company or a senior officer of the Company who is a member  of  the  Company’s  executive  management  committee  or  based  upon  the  advice  of  counsel for the Company shall be conclusively presumed to be done, or omitted to be  done,  by  the  Executive  in  good  faith  and  in  the  best  interests  of  the  Company.   The  cessation of employment of the Executive shall not be deemed to be for Cause unless  and until there shall have been delivered to the Executive a copy of a resolution duly  adopted by the affirmative vote of not less than three-quarters of the entire membership  of  the  Board  at  a  meeting  of  the  Board  called  and  held  for  such  purpose  (after  reasonable notice is provided to the Executive and the Executive is given an opportunity,  together  with  counsel,  to  be  heard  before  the  Board),  finding  that,  in  the  good  faith  opinion of the Board, the Executive is guilty of the conduct described in subparagraph (i)  or (ii) above, and specifying the particulars thereof in detail.                (c) Good Reason.  The Executive’s employment may be terminated by  the  Executive for Good  Reason  during  the Employment Period.  For  purposes  of  this  Agreement, “Good Reason” shall mean:                    (i)    the  assignment  to  the  Executive  of  any  duties  materially  inconsistent in any respect with the Executive’s position (including status, offices, titles  and  reporting  requirements),  authority,  duties  or  responsibilities  as  contemplated  by  Section 4(a),  or  any  other  action  by  the  Company  Group  which  results  in  a  material  diminution  in  such  position,  authority,  duties  or  responsibilities,  excluding  for  this  purpose  an  isolated,  insubstantial  and  inadvertent  action  not  taken  in  bad  faith  and  which is remedied by the Company Group promptly after receipt of notice thereof given  by the Executive; or                   (ii)    any  failure  by  the  Company  Group  to  comply  with  any  of  the  provisions of Section 4(b), other than an isolated, insubstantial and inadvertent failure  not occurring in bad faith and which is remedied by the Company promptly after receipt  of notice thereof given by the Executive; or                   (iii)    the  Company’s  requiring  the  Executive  to  be  based  at  any  office or location other than as provided in Section 4(a)(i)(B) or the Company’s requiring                                           7  

 

   the  Executive  to  travel  on  Company  business  to  a  substantially  greater  extent  than  required immediately prior to the Effective Date; or                   (iv)    any  purported  termination  by  the  Company  Group  of  the  Executive’s employment otherwise than as expressly permitted by this Agreement; or                    (v)    any  failure  by  the  Company  to  comply  with  and  satisfy  Section 13(c).       For purposes of this Section 5(c), any good faith determination of “Good Reason”  made by the Executive shall be conclusive.                (d)  Resignation  without  Good  Reason.  Notwithstanding  anything  in  this  Agreement  to  the  contrary,  following  the  Effective  Date,  the  Executive  may,  voluntarily,  terminate  his  employment  without  Good  Reason  during  the  Employment  Period.               (e)  Notice of Termination.  Any termination by the Company for Cause,  or by the Executive for Good Reason, shall be communicated by Notice of Termination  to the other party hereto given in accordance with Section 14(b).  For purposes of this  Agreement,  a  “Notice  of  Termination”  means  a  written  notice  which  (i) indicates  the  specific termination provision in this Agreement relied upon, (ii) to the extent applicable,  sets forth in reasonable detail the facts and circumstances claimed to provide a basis  for termination of the Executive’s employment under the provision so indicated and (iii) if  the Date of Termination (as defined in Section 5(f)) is other than the date of receipt of  such  notice,  specifies  the  termination  date  (which  date  shall  be  not [for  Hong  Kong  employees: less than 7 days and not] more than 30 days  after the giving of such notice  [for Hong Kong employees: in all cases other than termination for cause or the death of  the Executive]).  The failure by the Executive or the Company to set forth in the Notice  of Termination any fact or circumstance which contributes to a showing of Good Reason  or  Cause  shall  not  waive  any  right  of  the  Executive  or  the  Company,  respectively,  hereunder or preclude the Executive or the Company, respectively, from asserting such  fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.                (f)  Date  of  Termination.   “Date  of  Termination”  means  (i) if  the  Executive’s employment is terminated by the Company for Cause, [or by the Executive  for  Good  Reason,] the  date  of  receipt  of  the  Notice  of  Termination or  any  later  date  specified therein, as the case may be; (ii) if the Executive’s employment is terminated  by the Company other than for Cause or Disability, [for Hong Kong employees: or by the  Executive  for  Good  Reason,] the  Date  of  Termination  shall  be [for  Hong  Kong  employees: 7 days after] the date on which the Company notifies the Executive of such  termination [for Hong Kong employees: (unless payment in lieu of notice is made)]; and  (iii) if  the  Executive’s  employment  is  terminated  by  reason  of  death  or  Disability,  the  Date of Termination shall be the date of death of the Executive or the Disability Effective  Date, as the case may be.           6.  Obligations of the Company upon Termination.  (a) Good Reason; Other  Than for Cause, Death or Disability.  If, during the Employment Period, the Company  shall terminate the Executive’s employment other than for Cause, death or Disability or  the Executive shall terminate employment for Good Reason:                                            8  

 

                    (i)   the Company shall pay to the Executive in a lump sum in cash  within [30 days] [for Hong Kong employees: 7 days] after the Date of Termination the  aggregate of the following amounts:                    (A) the sum of (1) the Executive’s Annual Base Salary through the               Date  of  Termination  to  the  extent  not  theretofore  paid,  (2) any  earned               Annual Bonus in respect of the fiscal year ended immediately prior to the               Date of Termination to the extent not theretofore paid, (3) the product of               (x) the Recent Annual Bonus Percentage and (y) the Executive’s Annual               Base Salary and (z) a fraction, the numerator of which is the number of               days in the current fiscal year through the Date of Termination, and the               denominator  of  which  is  365  and  (4) any  accrued  vacation  pay,  to  the               extent  not  theretofore  paid  (the  sum  of  the  amounts  described  in               clauses (1),  (2),  (3) and  (4) shall  be  hereinafter  referred  to  as  the               “Accrued Obligations”); and                    (B)  the  amount  equal  to  the  product  of  (1) two  and  (2) the  sum  of               (x) the  Executive’s  Annual  Base Salary  and  (y)  the  product  of  (I)  the               Recent Annual Bonus Percentage and (II) the Executive’s Annual Base               Salary; provided that any amount payable to the Executive pursuant to               this clause (B) shall not exceed $10,000,000 (ten million dollars) (“Base               and  Bonus  Cap”)  and  all  rights  to  any  amount  payable  under  this               subparagraph  6(i)(B)  exceeding  the  Base  and  Bonus  Cap  shall  be               cancelled and the Executive shall have no further rights or entitlement to               the  amounts  payable  under  this  subparagraph  6(i)(B)  that  exceed  the               Base and Bonus Cap; and                   (C) [for Hong Kong employees: to the extent applicable,] the amount               equal to the product of (1) two and (2) an amount equal to the sum of               any Company  Group  contributions allocated  to  the  Executive  under               (x) the Company Group tax-favored defined contribution retirement plans               applicable  to  the  Executive  and  (y) the  State  Street  Corporation               Management  Supplemental  Savings  Plan  or  any  successor  plan  (the               “Supplemental Savings Plan”) for the most recent full fiscal year; and                   [(D) to  the  extent  applicable, an  amount  equal  to  the  excess  of               (a) the  actuarial  equivalent  of  the  benefit  under  the State  Street               Retirement Plan (the “Retirement Plan”) (utilizing actuarial assumptions               no  less  favorable  to  the  Executive  than  those  in  effect under  the               Retirement Plan immediately prior to the Effective Date), and any excess               or  supplemental  defined  benefit  pension under  the  State  Street               Corporation Management Supplemental Retirement Plan (the “MSRP”) ,               the  State  Street  Corporation  Executive Supplemental  Retirement  Plan               (the  “ESRP DB”)  and/or  the  Supplemental  Pension  Plan  of  Investors               Bank  &  Trust  Company,  or  any  successor  plan(s),  in  which  the               Executive participates immediately prior to the Effective Date (collectively,               the “SERP”) which the Executive would receive under the terms thereof               as  in  effect  immediately  prior  to  the  Effective  Date,  if  the  Executive’s               employment  continued  for  two  years  after  the  Date  of  Termination                                           9  

 

                assuming that the Executive’s compensation in each of the two years is               that required by Section 4(b)(i) and Section 4(b)(ii), over (b) the actuarial               equivalent  of  the  Executive’s  actual  benefit  (paid  or  payable),  if  any,               under the Retirement Plan and the SERP as of the Date of Termination;               provided that  for  purposes  of  calculating  the  payment  pursuant  to  this               subparagraph  6(a)(i)(D),  there  shall  be  no  additional  accruals  included               under  the  respective  Retirement  Plan  and  SERP  calculations  to  the               extent that said plans are frozen and do not provide for new accruals as               of the Effective Date; and]                     (ii)    for  two  years  after  the  Date  of  Termination,  or  such  longer  period as may be provided by the terms of the appropriate plan, program, practice or  policy,  the  Company  shall  continue  benefits  to  the  Executive  and/or  the  Executive’s  family at least equal to those which would have been provided to them in accordance  with  the  plans,  programs,  practices  and  policies  described  in  Section 4(b)(iv)  if  the  Executive’s employment had not been terminated or, if more favorable to the Executive,  as in effect generally at any time thereafter with respect to other peer executives of the  Company Group and their families in the country in which the Executive is employed on  the same basis as in effect prior to the Date of Termination; provided, however, that if  the  Executive  becomes  reemployed  with  another  employer  and  is  eligible  to  receive  medical  or  other  welfare  benefits  under  another  employer  provided  plan,  the  medical  and other welfare benefits described herein shall be secondary to those provided under  such other plan during such applicable period of eligibility; provided further that to the  extent  necessary  to  avoid  the  imposition  of  additional  taxes,  penalties  and  interest  under  Section 409A  of  the  Code,  any  reimbursements  of  expenses  pursuant  to  this  Section 6(a)(ii)  shall  be  made  on  or  before  the  last  day  of  the  calendar  year  next  following  the  calendar  year  in  which  such  expense  was  incurred.   For  purposes  of  determining eligibility (but not the time of commencement of benefits) of the Executive  for  retiree  benefits  pursuant  to  such  plans,  practices,  programs  and  policies,  the  Executive shall be considered to have remained employed until two years after the Date  of Termination and to have retired on the last day of such period; and                   (iii)   the Company shall, at its sole expense as incurred, provide the  Executive with reasonable outplacement services, the scope and provider of which shall  be  selected  by  the  Executive  in  his  sole  discretion; provided, however,  that  such  outplacement services shall not be provided to the Executive beyond the last day of the  second calendar year following the calendar year which contains the Executive’s Date  of Termination; and                   (iv)    to  the  extent  not  theretofore  paid  or  provided,  the  Company  shall timely pay or provide to the Executive any other amounts or benefits required to be  paid  or  provided  or  which  the  Executive  is  entitled  to  receive  as  of  the  Date  of  Termination under any plan, program, policy or practice or contract or agreement of the  Company  Group  (such  other amounts and benefits  shall  be  hereinafter referred  to  as  the “Other Benefits”); and                    (v)    to  the  extent  not  theretofore  vested,  the  Executive  shall  immediately  vest,  as  of  the  Date  of  Termination,  in  his  benefits  under  the [plans  comprising  the defined  contribution  component  of  the  State  Street  Corporation                                           10  

 

   Executive  Supplemental  Retirement  Plan,  or  successor  plan,  as  in  effect  immediately  prior  to  the  Effective  Date  (“ESRP  DC”),  Supplemental  Savings  Plan,  and/or any  applicable SERP  in  which  he participates  on  the  Date  of  Termination,  including,  notwithstanding  Section 3.6  (Forfeitures)  under  the  terms  of  the  State  Street  Corporation  Executive  Supplemental  Retirement  Plan]  [for  Hong  Kong  employees:  Supplemental Savings Plan and the State Street Corporation Executive Supplemental  Retirement Plan (“ESRP”)]                (b)  Death.   If,  during  the  Employment  Period,  the  Executive’s  employment  is  terminated  by  reason  of  the  Executive’s  death,  this  Agreement  shall  terminate without further obligations to the Executive’s legal representatives under this  Agreement,  other  than  for  payment  of  Accrued  Obligations,  the  timely  payment  or  provision of Other Benefits, and immediate vesting, as of the Date of Termination and to  the  extent  not  theretofore  vested,  of  the  Executive’s  benefits  under  the [plans  comprising the ESRP DC, Supplemental Savings Plan and/ or any applicable SERP  in  which  he  participates  on  the  Date  of  Termination] [for  Hong  Kong  employees:  Supplemental Savings Plan and the ESRP].  The Accrued Obligations shall be paid to  the  Executive’s estate  or beneficiary,  as  applicable,  in  a  lump  sum  in  cash  within [30  days] [for Hong Kong employees: 7 days] after the Date of Termination.  With respect to  the provision of Other Benefits, the term Other Benefits as utilized in this Section 6(b)  shall include, without limitation, and the Executive’s estate and/or beneficiaries shall be  entitled to receive, benefits at least equal to the most favorable benefits provided by the  Company  Group  to  the  estates  and  beneficiaries  of  peer  executives  of  the  Company  Group under such plans, programs, practices and policies relating to death benefits, if  any, as in effect with respect to other peer executives and their beneficiaries at any time  during  the  120-day  period  immediately  preceding  the  Effective  Date  or,  if  more  favorable to the Executive’s estate and/or the Executive’s beneficiaries, as in effect on  the date of the Executive’s death with respect to other peer executives of the Company  Group and their beneficiaries in the country in which the Executive is employed.                (c)  Disability.   If,  during  the  Employment  Period,  the  Executive’s  employment is terminated by reason of the Executive’s Disability, this Agreement shall  terminate without further obligations to the Executive under this Agreement, other than  for payment of Accrued Obligations, the timely payment or provision of Other Benefits,  and immediate vesting, as of the Date of Termination and to the extent not theretofore  vested,  of  the  Executive’s  benefits  under  the [plans comprising  the ESRP  DC,  Supplemental Savings Plan and/or any applicable SERP in which he participates on the  Date  of Termination] [for Hong  Kong  employees:  Supplemental Savings  Plan  and  the  ESRP].  The Accrued Obligations shall be paid to the Executive in a lump sum in cash  within [30 days] [for Hong Kong employees: 7 days] after the Date of Termination.  With  respect  to  the  provision  of  Other  Benefits,  the  term  Other  Benefits  as  utilized  in  this  Section 6(c)  shall  include,  and  the  Executive  shall  be  entitled  after  the  Disability  Effective  Date  to  receive,  disability  and  other  benefits  at  least  equal  to  the  most  favorable  of  those  generally  provided  by  the  Company  Group  to  disabled  executives  and/or  their  families  in  accordance  with  such  plans,  programs,  practices  and  policies  relating to disability, if any, as in effect generally with respect to other peer executives  and  their  families  at  any  time  during  the  120-day  period  immediately  preceding  the  Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in                                          11  

 

   effect  at  any  time  thereafter  generally  with  respect  to  other  peer  executives  of  the  Company Group and their families in the country in which the Executive is employed.                (d)  For  Cause;  Other  than  for  Good  Reason.   If,  during  the  Employment  Period,  the  Executive’s  employment  shall  be  terminated  for  Cause,  this  Agreement  shall  terminate  without  further  obligations  to  the  Executive  other  than  the  obligation to pay or to provide to the Executive (x) his Annual Base Salary through the  Date of Termination within [30 days] [for Hong Kong employees: 7 days] thereafter and  (y) Other Benefits, in each case to the extent theretofore unpaid.  Subject to Section 7, if,  during  the Employment  Period,  the  Executive  voluntarily  terminates  employment,  excluding a termination for Good Reason, this Agreement shall terminate without further  obligations to the Executive, other than for Accrued Obligations and the timely payment  or provision of Other Benefits.  In such case, all Accrued Obligations shall be paid to the  Executive in a lump sum in cash within [30 days] [for Hong Kong employees: 7 days]  after the Date of Termination.               7.   Non-exclusivity of Rights.  Nothing in this Agreement shall prevent  or limit the Executive’s continuing or future participation in any plan, program, policy or  practice provided by the Company Group and for which the Executive may qualify, nor,  subject to Section 14(g), shall anything herein limit or otherwise affect such rights as the  Executive  may  have  under  any  contract  or  agreement  with  the  Company  Group,  including,  without  limitation,  the  ESRP [DC,  Supplemental  Savings  Plan  and/or any  applicable SERP in  which the  Executive participates  on  the  Date  of  Termination];  provided, however,  that, following  the  Effective  Date,  the  severance  provisions  of  this  Agreement shall supersede any Company severance pay plan in which the Executive  may otherwise participate.  Amounts which are vested benefits or which the Executive is  otherwise  entitled  to  receive  under  any  plan,  policy,  practice  or  program  of  or  any  contract  or  agreement  with  the  Company  Group  at  or  subsequent  to  the  Date  of  Termination shall be payable in accordance with such plan, policy, practice or program  or contract or agreement except as explicitly modified by this Agreement; provided that,  for  the  avoidance  of  doubt,  any  such  modifications  made  by  this  Agreement  shall  comply  with,  and  shall  be  effected  and  implemented,  in  accordance  with  the  requirements of Section 409A of the Code.  [Anything in the State Street Corporation  Executive Supplemental Retirement Plan (the “ESRP”) to the contrary notwithstanding,  during  the  Employment  Period:  (I) Section 7.1  (Amendments)  thereof  shall  be  inapplicable  to  the  Executive  to  the  extent  such  amendment  reduces  the  accrued  benefit or contribution rate or otherwise adversely affects the right of the Executive to  accrue an ESRP benefit; and (II) Section 3.6 (Forfeitures) thereof shall be inapplicable  to  the  Executive  in  connection  with  any  termination  of  employment  (other  than  for  Cause  (as  defined  under  this  Agreement)).  Anything  in  the  MSRP to  the  contrary  notwithstanding,  the  first  sentence  of  Section 5  thereof  shall  be  inapplicable  to  the  Executive in connection with any termination of employment (other than for Cause (as  defined under this Agreement)).]          8.  Full  Settlement.   The  Company’s obligation  to  make  the  payments  provided for in this Agreement and otherwise to perform its obligations hereunder shall  not be affected by any set-off, counterclaim, recoupment, defense or other claim, right  or  action  which  the  Company  may  have  against  the  Executive  or  others,  except  as                                           12  

 

   required by applicable law or regulation.  In no event shall the Executive be obligated to  seek  other  employment  or  take  any  other  action  by  way  of  mitigation  of  the  amounts  payable  to  the  Executive  under  any  of  the  provisions  of  this  Agreement  and  such  amounts shall not be reduced whether or not the Executive obtains other employment.   Furthermore, the Executive shall be entitled to receive from the Company payment in  respect  of  all  direct  and  indirect  damages  as  a  result  of  any  material  breach  by  the  Company  of  this  Agreement.   From  the  date  hereof  until  the  20th  anniversary  of  the  later  of  (i) the  Date  of  Termination  and  (ii) the  date  of  the  Executive’s  death,  the  Company agrees to pay as incurred, to the full extent permitted by law, any legal fees  and/or expenses which the Executive may reasonably incur as a result of any contest  (regardless  of  the  outcome  thereof)  by  the  Company,  the  Executive  or  others  of  the  validity or enforceability of, or liability under, or breach by the Company of, any provision  of this Agreement or any guarantee of performance thereof (including as a result of any  contest by the Executive about the amount of any payment pursuant to this Agreement),  plus  in  each  case  interest  on  any  delayed  payment at  the  applicable  Federal  rate  provided for in  Section 7872(f)(2)(A) of the Code; provided, however,  that  payment  of  legal fees and/or expenses shall not be provided to the Executive later than the last day  of  the  second  calendar  year  in  which  the  relevant  fees  or  expenses  were  incurred;  provided, further,  that  the  amount  of  any  legal  fees  and/or  expenses  paid  by  the  Company on behalf of the Executive during a calendar year shall not affect any legal  fees  and/or  expenses  to  be  paid  by  the  Company  on  behalf of  the  Executive  in  any  other calendar year.           9.  Application of Section 4999 of the Code.  (a) This Section 9 shall apply, in  the event it shall be determined that any payment or distribution by the Company Group  to  or  for  the  benefit  of  the  Executive (whether  paid  or  payable  or  distributed  or  distributable  pursuant  to  the  terms  of  this  Agreement  or  otherwise)  (the  “Payments”)  could reasonably be expected to be subject to the excise tax imposed by Section 4999  of the Code or any interest or penalties are incurred by the Executive  with respect to  such  excise  tax  (such  excise  tax,  together  with  any  such  interest  and  penalties,  are  hereinafter collectively referred to as the “Excise Tax”).                (b)   If it shall be determined that the Parachute Value of the Payments  (as defined below) is equal to or less than 110% of the Safe Harbor Amount (as defined  below),  then  the  amount  of  the  Payments  otherwise  due  to,  or  for  the  benefit  of,  the  Executive  shall  be  reduced  to  the  extent  necessary,  and  in  a  manner  intended  to  comply  with  Section  409A  of  the  Code,  to  assure  that  the  Parachute  Value  of  the  Payments,  as  calculated  for  the  Payments  remaining  after  such  reduction,  does  not  exceed the Safe Harbor Amount (a “Cutback”).  To the extent any such reduction to the  Executive’s  Payments  becomes  necessary  by  reason  of  the  preceding  sentence;  the  reduction shall be applied by (x) reducing the cash payments and benefits due to the  Executive under this Agreement in the following order:  Section 6(i)(B), Section 6(i)(C)  and  then, if  applicable,  Section  6(i)(D),or  (y)  an  order  of  reduction  specified  by  the  Executive; provided, however, that the Executive’s right to specify the order of reduction  of  the  payments  or  benefits  shall  apply  only  to  the  extent  that  it  does  not  directly  or  indirectly  alter  the  time  or  method  of  payment  of  any  amount  that  is  deferred  compensation  subject  to  Section  409A.   For  the  purposes  of  this  Section 9,  (i) “Parachute Value of the Payments” shall mean the present value, as of the Effective                                          13  

 

   Date, for purposes of Section 280G of the Code of the portion of such Payments that  constitutes  a  “parachute  payment”  under  Section 280G(b)(2),  as  determined  by  the  Accounting Firm (as defined in Section 9(c)) for purposes of determining whether and to  what extent the Excise Tax will apply to such Payments, and (ii) “Safe Harbor Amount”  shall  mean  the  maximum  Parachute  Value  of  the  Payments  that  the  Executive  can  receive without any Payments being subject to the Excise Tax.              (c)   If it shall be determined that the Parachute Value of the Payments  is greater than 110% of the Safe Harbor Amount, then the value of the Payments to be  made  to  the  Executive  shall  be  either  (i)  subject  to  a  Cutback  or  (ii)  delivered  in  full,  whichever of the foregoing results in the receipt by the Executive of the greatest benefit  on an after-tax basis (taking into account the Executive’s actual marginal rate of federal,  state and local income taxation and the Excise Tax).              (d)   All  determinations  required  to  be  made  under  this  Section 9,  including whether and when a Cutback is required and the amount of such Cutback and  the assumptions to be utilized in arriving at such determination, shall be made by Ernst  & Young LLP or such other nationally recognized certified public accounting firm as may  be designated by the Executive (the “Accounting Firm”); provided that such Accounting  Firm  shall be  independent  of  the  Executive.   In  the  event  that the  Accounting  Firm  is  serving as accountant or auditor for the individual, entity or group effecting the Change  of  Control,  the  Executive  shall  appoint  another  independent  nationally  recognized  accounting firm to make the determinations required hereunder (which accounting firm  shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of  the Accounting Firm shall be borne solely by the Company.  Any determination by the  Accounting  Firm  shall  be  binding  upon  the  Company  and  the  Executive.  The  Accounting  Firm  shall  make  the  determinations  required  under  this  Section  9  on  a  preliminary  basis  and  provide  to  both  the  Company  and  the  Executive  the  detailed  supporting calculations on an initial basis, as soon as reasonably practicable prior to the  making of any Payment, but in no event later than 10 days prior to the Effective Date.   Thereafter, the Accounting Firm shall timely make any further determinations as may be  required  under  this  Section  9  and  provide  to  both  the  Company  and  the  Executive  additional detailed supporting calculations as necessary or appropriate to effectuate the  provisions  of  this  Section  9.  If,  as  a  result  of  the  uncertainty  in  the  application  of  Section 4999 of the Code at the time of the preliminary or a subsequent determination  by the Accounting Firm hereunder, amounts that should have been subject to a Cutback  were  instead  paid  or  provided  to  the  Executive  (“Overpayment”),  consistent  with  the  calculations  required  to  be  made  hereunder,  then,  in  the  event  that  the  Executive  is  required to make a payment of any Excise Tax solely as a result of an Overpayment,  the Accounting Firm shall determine the amount of the Overpayment that has occurred  and  the  Company  shall  indemnify  the  Executive  for  any  damages,  including,  without  limitation, the Excise Tax, and costs incurred by him resulting from any Overpayment.   Any amounts payable by the Company or any other member of the Company Group to  the Executive as a result of the Company’s indemnification obligations as provided for in  the  immediately  preceding  sentence shall  be  paid  no  later  than  the  last  day  of  the  calendar year  following  the  calendar  year  in  which  the  Executive  remits  the  related  taxes.                                            14  

 

           10.  Confidential  Information;  Restriction  on  Solicitation  of  Employees  and  Clients.  By and in consideration of the compensation and benefits provided for by the  Company under this Agreement, including the severance arrangements set forth herein,  the Executive agrees that:              (a)   The Executive shall hold in a fiduciary capacity for the benefit of the  Company  all  secret  or  confidential  information,  knowledge  or  data  relating  to the  Company Group, and the respective businesses of the members of the Company Group  and their Clients (as defined below), which shall have been obtained by the Executive  during the Executive’s employment by the Company Group and which shall not be or  become public knowledge (other than by acts by the Executive or representatives of the  Executive  in  violation  of  this  Agreement).   After  termination  of  the  Executive’s  employment with the Company Group, the Executive shall not, without the prior written  consent  of  the  Company  or  as  may  otherwise  be  required  by  law  or  legal  process,  communicate or divulge any such information, knowledge or data to anyone other than  the Company and those designated by it.  For the purposes of this Section 10, the term  “Client” means any person or entity that is a customer or client of any member of the  Company Group.                (b)  During the term of employment of the Executive and following the  termination thereof, the Executive shall not make any false, disparaging, or derogatory  statements to any media outlet (including, but not limited to, Internet-based chat rooms,  message  boards,  any  and  all  social  media,  and/or  web  pages),  industry  group or  financial  institution,  or  to  any  current,  former  or  prospective  employee,  consultant or  Client of the Company or its subsidiaries regarding the Company, its subsidiaries or any  of  their  respective  directors,  officers,  employees,  agents,  or  representatives,  or  about  the business affairs and financial condition of the Company or its subsidiaries.               (c)  During the term of employment of the Executive and following the  termination thereof, the Executive shall cooperate with the Company with respect to any  matters  arising  during  or  related  to the Executive’s employment with  the  Company  Group,  including but  not  limited  to  any  litigation,  governmental  investigation,  or  regulatory  or  other  proceeding  which  may  have  arisen as  of or  which  may  arise  following the execution of this Agreement.  The Company shall reimburse the Executive  for  any  reasonable  out-of-pocket  and  properly  documented  expenses the Executive  incurs in connection with such cooperation.               (d)  During  the  term  of  employment  of  the  Executive  and  during  the  Nonsolicitation  Period  (as  defined  below),  the  Executive  shall  not,  without  the  prior  written  consent  of  the  Company,  solicit,  directly  or  indirectly  (other  than  through  a  general  solicitation  of  employment  not  specifically  directed  to  employees  of  the  Company  or  its  subsidiaries),  the  employment  of  any  person  who  within  the  previous  12 months was an officer of the Company or any of its subsidiaries.  For purposes of  this  Section 10,  the  term  “Nonsolicitation  Period”  means  the  period  beginning  on  the  date  of  termination  of  the  Executive’s  employment  with  the  Company  Group  (the  “Termination  Date”) and  ending  on  the  earlier  of  (i) [18  months  after  the  Termination  Date] [for Hong Kong employees: 6 months after the Termination Date and for a further  6 month period after that initial period] and (ii) [one year after the Effective Date (if any)]  [for Hong Kong employees: 6 months after the Effective Date (if any) and for a further 6                                           15  

 

   month period after that initial period].  If the Executive violates a restriction to which the  Nonsolicitation Period applies under this Section 10(d) or 10(e), then the Nonsolicitation  Period shall be extended, with respect only to the restriction violated by the Executive,  by  the  amount  of  time  for  which  the Executive was  out  of  compliance  with  such  restriction.                (e)  During  the  term  of  employment  of  the  Executive  and  during  the  Nonsolicitation  Period,  the  Executive  shall  not,  without  the  prior  consent  of  the  Company, [for Hong Kong employees: directly or indirectly,] engage in the Solicitation of  Business (as defined below) from any Client on behalf of any person or entity other than  the  Company  and  its  subsidiaries.   For  the  purposes  of  this  Section 10(c),  the  term  “Solicitation of Business” shall mean the attempt through direct personal contact on the  part of the Executive with a Client with whom the Executive has had significant personal  contact while serving in a Line-Function Capacity (as defined below) during his period of  employment to [for Hong Kong employees: solicit or] induce such Client to transfer its  business relationship [for Hong Kong employees: in whole or in part] from the Company  and  its  subsidiaries  to  any  other  person  or entity.   The  term  “Line-Function  Capacity”  means service to the Company and its subsidiaries in a primary capacity other than a  staff  function,  in  which  the  Executive  has  direct  and  regular  contact  with  Clients  and  responsibility  for  managing  the  business  relationship  of  the  Company  and  its  subsidiaries  with  such  Clients.   During  the  Nonsolicitation  Period,  the  Executive  may  accept employment with or enter into a business relationship with a person or entity that  has or seeks to establish business relationships with one or more Clients provided that  the  Executive  does  not  engage  in  the  Solicitation  of  Business  from  such  Clients  and  does  not  disclose  confidential  information  concerning  such  Client  and  its  relationship  with the Company and its subsidiaries to any such person or entity.                (f)  In  no  event  shall  an  asserted  violation  of  the  provisions  of  this  Section 10  constitute  a  basis  for  deferring  or  withholding  any  amounts  otherwise  payable to the Executive under this Agreement.                (g)  This  Section 10  shall  be  effective  from  and  after  the  date  of  this  Agreement notwithstanding that an Effective Date has not occurred, and the restrictions  and  covenants  set  forth  in  this  Section  10  shall  be  in  addition  to,  and  shall  not  supersede,  any  restrictions  or  covenants  to  which  the  Executive  may  be  subject  pursuant to other plans, programs or agreements with the Company, including, without  limitation, the nonsolicitation and noncompetition provisions contained in Section 3.6 of  the  ESRP  (except  to  the  extent  specifically  provided  otherwise  in  Section  7  of  this  Agreement).               (h)  The  provisions  contained  in  this Section  10 are  necessary  to  the  protection of the Company’s business and good will, and are material and integral to the  undertakings  of  the  Company  under  this Agreement.  The  Executive agrees that the  Company  and  its subsidiaries  will  be  irreparably  harmed  in  the  event  such  provisions  are not performed in accordance with their specific terms or are otherwise breached by  the  Executive.   Accordingly,  if the Executive fails to  comply  with  such  provisions, the  Company or any of its subsidiaries shall be entitled to injunctive or other equitable relief  or remedy in addition to, and not in lieu of, any other relief or remedy at law to which it  or  they  may  be  entitled  hereunder  in  order  to  protect  its  or  their  legitimate  business                                           16  

 

   interests. Therefore, the Executive agrees that the Company or any of its subsidiaries  shall, in the event of any breach or threatened breach by the Executive of the provisions  of this Section 10, in addition to such other remedies as may be available, be entitled to  specific performance and injunctive relief without posting a bond.  The Executive hereby  waives the adequacy of a remedy at law as a defense to such relief.               (i)  No delay or waiver by the Company in exercising any  right under  this Section 10 shall operate as a waiver of that right or of any other right. Any waiver or  consent as to any of the provisions herein provided by the Company must be in writing,  is effective only in that instance, and may not be construed as a broader waiver of rights  or as a bar to enforcement of the provision(s) at issue on any other occasion.               (j)  The restrictions and covenants set forth in this Section 10 shall be  construed and interpreted in any judicial or other adjudicatory proceeding to permit their  enforcement  to  the  maximum  extent  permitted  by  law,  and  each such provision  is  severable and independently enforceable without reference to the enforcement of any  other  provision.  If  any  restriction  set forth  in  this Section  10 is found  by  any  court of  competent jurisdiction to be unenforceable because it extends for too long a period of  time or over too great a range of activities or in too broad a geographic area, it shall be  interpreted  to  extend  only  over  the  maximum  period of  time,  range  of  activities  or  geographic area as to which it may be enforceable.                  (k)    Nothing  in  this  Agreement  prohibits  Executive  from  reporting  possible violations of federal law or regulation to any governmental agency or regulatory  authority  or from  making  other disclosures  that  are  protected  under the  whistleblower  provisions  of  Federal  law  or  regulation.  Moreover,  nothing  in  this Agreement  requires  Executive to notify the Company that Executive has made any such report or disclosure.   However, in  connection  with  any  such  activity,  Executive  must  take  reasonable  precautions  to  ensure  that  any  confidential  information  that  is  disclosed  to  such  authority  is  not  made  generally  available  to  the  public,  including  by  informing  such  authority of the confidentiality of the same.                  (l)    Executive shall  not  be  held  criminally  or  civilly  liable  under  any  Federal  or  state  trade  secret  law  if  Executive  discloses  a  Company  or  a  Company  affiliated  organization  trade  secret  (i)  in  confidence  to  a  Federal,  state,  or  local  government official, either directly or indirectly, or to an attorney, solely for the purposes  of reporting or investigating a suspected violation of law; or (ii) in a complaint or other  document filed in a lawsuit or other proceeding, if such filing is made under seal.                  (m)     Despite the foregoing, Executive is not permitted to disclose to  any  third-party,  including  any  governmental  or  regulatory  authority,  any  information  learned in the course of his or her employment that is protected from disclosure by any  applicable  privilege,  including  but  not  limited  to  the  attorney-client  privilege,  attorney  work  product  doctrine,  the  bank  examiner’s  privilege,  and/or  privileges  applicable  to  information  covered  by  the  Bank  Secrecy  Act  (31  U.S.C.  §§ 5311-5330),  including  information that would reveal the existence or contemplated filing of a suspicious activity  report.  The  Company  and  its  affiliated  organizations  do  not  waive  any  applicable  privileges  or  the  right  to  continue  to  protect  its  or  their privileged  attorney-client  information, attorney work product, and other privileged information.                                           17  

 

            11.      Section 409A  of  the  Code.   (a) This  Agreement  is  intended  to  satisfy the requirements of Section 409A of the Code with respect to amounts subject  thereto  and  shall  be  interpreted  and  construed  and  shall  be  performed  by  the  parties  consistent with such intent, and the Company shall not accelerate any payment or the  provision of any benefits under this Agreement or to make or provide any such payment  or benefits if such payment or provision of such benefits would, as a result, be subject to  tax under Section 409A of the Code.                (b)  Except as expressly provided otherwise herein, no reimbursement  payable to the Executive pursuant to any provisions of this Agreement or pursuant to  any plan or arrangement of the Company covered by this Agreement shall be paid later  than the last day of the calendar year following the calendar year in which the related  expense  was  incurred,  and  no  such  reimbursement  during  any  calendar  year  shall  affect  the  amounts  eligible  for  reimbursement  in  any  other  calendar  year,  except,  in  each case, to the extent that the right to reimbursement does not provide for a “deferral  of  compensation”  within  the  meaning  of  Section 409A  of  the  Code.   To  the  extent  providing for deferral of compensation within the meaning of Section 409A of the Code,  any  payments  or  benefits to  which  the  Executive  is  entitled  upon  a  termination  of  employment  shall  be  paid  no  earlier  than  the  date  on  which  the  Executive  incurs  a  “separation from service” as set forth in Section 5.               (c)  Notwithstanding anything herein to the contrary, if the Executive is  a “specified employee,” for purposes of Section 409A of the Code, as determined under  the  Company’s  established  methodology  for  determining  specified  employees,  on  the  date on which the Executive separates from service, any payment hereunder (including  any provision of continued benefits) that provides for the deferral of compensation within  the meaning of Section 409A of the Code (the “Delayed Payment Amounts”) shall not  be  paid or commence  to be paid on any  date  prior to  the first business  day  after the  date that is six months following the Executive’s Date of Termination; provided, however,  that payment of the Delayed Payment Amounts shall commence within 30 days of the  Executive’s death in the event of his death prior to the end of the six-month period.  The  Delayed Payment Amounts shall earn interest at the prime rate published in The Wall  Street Journal on the Date of Termination until the date that payment of such amounts  to the Executive or his legal representatives is completed pursuant to the terms of this  Agreement.           12.  Statement  of  Benefits.   Immediately  prior  to  the  Effective  Date,  the  Company shall provide in writing to the Executive a reasonable, good faith estimate of  the payments and benefits to which the Executive would be entitled in the event of a  termination  of  his  employment  pursuant  to  Section 6(a),  assuming  that  the  Effective  Date is the Date of Termination.           13.  Successors. (a) This Agreement is personal to the Executive and without  the  prior  written  consent  of  the  Company shall  not  be  assignable  by  the  Executive  otherwise  than  by  will  or  the  laws  of  descent  and  distribution.   This  Agreement  shall  inure to the benefit of and be enforceable by the Executive’s legal representatives.                (b)  This  Agreement  shall  inure  to  the  benefit  of  and  be  binding  upon  the Company and its successors and assigns.                                            18  

 

                (c)  This Agreement may not be assigned by the Company, other than  to a member of the Company Group, without the written consent of the Executive, and  the Company will require any successor (whether direct or indirect, by purchase, merger,  consolidation, or otherwise) to all or substantially all of the business and/or assets of the  Company,  to  assume  expressly  and  agree  to  perform  this  Agreement  in  the  same  manner and to the same extent that the Company would be required to perform it if no  such succession had taken place.  In the event that the Company obtains the express  assumption  and  agreement  to  perform  this  Agreement  as  contemplated  by  the  preceding  sentence,  the  Executive  agrees  that  his  execution  of  this  Agreement  shall  serve  as  his  written  consent  in  such  circumstance.   As  used  in  this  Agreement,  “Company” shall mean the Company as hereinbefore defined and any successor to its  business  and/or  assets  as  aforesaid  which  assumes  and agrees  to  perform  this  Agreement by operation of law, or otherwise.           14. Miscellaneous.  (a) This Agreement shall be governed by and construed in  accordance with the laws of the Commonwealth of Massachusetts, without reference to  principles  of  conflict  of laws.   This  Agreement  may  not  be  amended  or  modified  otherwise than by a written agreement executed by the parties hereto or their respective  successors and legal representatives.                (b)  All notices and other communications hereunder shall be in writing  and shall be given to the other party by hand delivery, by electronic email, or by private  overnight delivery, in each case with proof of receipt, addressed as follows:                        If to the Executive, at the most recent address in the records of                       the Company Group.                        If to the Company:                             State Street Corporation                             State Street Financial Center                             One Lincoln Street                             Boston, MA 02111-2900                             Attention: Chief Legal Officer   or to such other address as either party shall have furnished to the other in writing in  accordance  herewith.   For  purposes  of  this  Agreement,  notice  and  communications  shall be effective (i) on the date of delivery, with respect to hand delivery, or (ii) when  posted  with  respect  to  email  or  private  overnight  delivery,  except  with  respect  to  a  Notice of Termination, which shall be effective when actually received by the addressee,  with respect to any form of delivery.                (c)  The invalidity or unenforceability of any provision of this Agreement  shall not affect the validity or enforceability of any other provision of this Agreement.                (d)  The  headings  of  sections  herein  are  included  solely  for  convenience of reference and shall not control the meaning or interpretation of any of  the provisions of this Agreement, and section, paragraph and subparagraph references  in this Agreement, unless otherwise specified, refer to the applicable section, paragraph  or  subparagraph  of  this  Agreement.   In  addition,  for  the  purposes  of  this  Agreement,                                           19  

 

   references  to  statutes  and  regulations  shall  be  deemed  to  include  any  amended,  modified or successor statutes or regulations.               (e)  The Company may withhold from any amounts payable under this  Agreement such federal, state, local or foreign taxes as shall be required to be withheld  pursuant to any applicable law or regulation and all other authorized deductions.                (f)  The  Executive’s  or  the  Company’s  failure  to  insist  upon  strict  compliance  with  any  provision  of  this Agreement  or the failure  to  assert  any  right  the  Executive or the Company may have hereunder, including, without limitation, the right of  the Executive  to  terminate  employment for Good  Reason pursuant  to  Section 5(c)(i) -  (v), shall not be deemed to be a waiver of such provision or right or any other provision  or right of this Agreement.                (g)  The Executive and the Company acknowledge that, except as may  otherwise be provided under any other written agreement between the Executive and  any member of the Company Group, the employment of the Executive by the Company  Group is “at will” and, subject to Section 1(a), prior to the Effective Date, the Executive’s  employment  and/or  this  Agreement  may  be  terminated  by  either  the  Executive  or  the  Company at any time prior to the Effective Date, in which case the Executive shall have  no further rights under this Agreement.                  (h)  This  Agreement sets  forth  all  of  the  promises,  agreements,  conditions and understandings between the parties hereto respecting the subject matter  hereof  and   supersedes  all  prior  negotiations,  conversations,  discussions,  correspondence,  memoranda  and  agreements  between  the  parties  concerning  such  subject matter, including any outstanding change in control employment agreement in  effect  as  of  the  date  of  this  Agreement.   From  and  after  the  Effective  Date,  this  Agreement  shall  supersede  any  other  agreement  between  the parties  with  respect  to  the subject matter hereof. [For certain Hong Kong employees: Further, this Agreement  is to be read in conjunction with your individual contract of employment.  In the event  that there is any inconsistency between any of the terms of this Agreement and those  set  out  in  your  contract  of  employment,  the  terms  of  this  Agreement  which  are  inconsistent shall prevail.]                (i)  This  Agreement  may  be  executed  in  two  or  more  counterparts,  each of which shall be deemed to be an original but all of which together will constitute  one  and  the  same  instrument.   For  purposes  of  this  Agreement,  facsimile  signatures  shall  be  deemed  originals,  and  the  parties  agree  to  exchange  original  signatures  as  promptly as possible following execution of this Agreement.               The Executive acknowledges that he is entering into this Agreement of  his own free will and accord, and with no duress, that he has read this Agreement and  that he understands it and its legal consequences.                 IN  WITNESS  WHEREOF,  the  Executive  has  hereunto  set  the  Executive’s  hand  and,  pursuant  to  the  authorization  from  its  Board  of  Directors,  the  Company  has  caused  these presents to be executed in its name on its behalf, all as of the day and year first  above written.                                            20  

 

                                 [Executive]        _______________________________                STATE STREET CORPORATION                  By               Todd Gershkowitz           EVP,  Chief  Operating  Officer -           Global  Human  Resources  and           Corporate Citizenship                                  21

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