Document:

EX-10.5

 Exhibit 10.5 
  

					
	On Holding AG – LTIP 2018	 	Amendment 2019	  	

  
  

 
 Amendment 2019 to the LTIP 2018 

In consideration of the current Company valuation of CHF 1,850 million and the envisaged capital round 2019 in which the share capital of the Company
would be increased by up to 14,071 registered shares with a par value of CHF 10 each at an issuance price of CHF 8,884 (“Primary Transaction”), the Compensation Committee states that: 

 

	 	•	 	 the original IRR targets of the LTIP 2018 as set forth in Annex 1 of the Plan would already be prematurely
achieved, and 

  

	 	•	 	 the level of IRR achievement would correspond to a vesting scale of 100%. 

In appreciation of this extraordinary achievement, the Compensation Committee proposes and the Board of Directors of the Company approves the following
amendments to the LTIP 2018: 
  

	1.	 Accelerated Vesting 

In case of a successful closing of the Primary Transaction (Vollzug der Kapitalerhöhung von 14’071 Namenaktien zum Ausgabepreis
von je CHF 8’884, total CHF 125’006’764), the following Options shall benefit of an accelerated vesting with effect as of the completion of the Primary Transaction (“Accelerated Vesting Date”): 

 

					
	 Category
	  	 	  	 Accelerated Vesting

			
	Group 1 Options	  		  	66 2/3% = 7,943 Options
			
	Group 2 Options	  	Tranche a)	  	100% = 1,813 Options
			
		  	Tranche b)	  	100% = 1,680 plus up to 200 Options for strike price equalization in the US
			
		  	Tranche c)	  	n/a

 For the purposes of the LTIP 2018, where applicable, accelerated vested Options (“Accelerated Vested
Options”) shall be included in the definition “Vested Options” of the LTIP 2018. 
 The remaining 1/3 of the Group
1 Options as well as the Group 2 Options Tranche c) will remain subject to the regular vesting terms of section 5.3 of the LTIP 2018. 

  
 1 

					
	On Holding AG – LTIP 2018	 	Amendment 2019	  	

  
  

 

	2.	 Exercise 

Accelerated Vested Options may be fully or partially exercised in accordance with section 6 of the LTIP 2018. 

 

	3.	 Lock-up Period 

Accelerated Vested Options shall be subject to the Lock-up Period of section 6.3 of the LTIP 2018;
whereby the definition “Vesting Date” shall mean the Accelerated Vesting Date. 
 Any other rules of the LTIP 2018 remain unchanged
and shall continue to apply. 
 * * * 
 New
York, 1 November 2019 
  

					
	 /s/ Caspar Coppetti
	 		 	 /s/ David Allemann

	Caspar Coppetti	 		 	David Allemann
	Chairman of the Board of Directors	 		 	Member of the Board of Directors

  
 2EX-10.6

 Exhibit 10.6 
  

					
	On Holding AG – LTIP 2018	 	Amendment 2021	  	

  
  

 
 Amendment 2021 to the LTIP 2018 

The Compensation Committee proposes and the Board of Directors of the Company approves the following amendments to the LTIP 2018: 

 

	1.	 Accelerated Vesting 

Section 5.3 of the LTIP 2018 shall be amended and the Vesting Date of the remaining 1/3 Group 1 Options (i.e. 3,972 options) and
the Group 2 Options - Tranche c) (i.e. 1,838 options) shall be accelerate due to Business Continuation from April 1, 2021 to February 13, 2021 (in order to take place at the first anniversary of the closing of
the Primary Transaction described in the amendment 2019 to the LTIP 2018) (the “Accelerated Vesting Date”). 
 For the
purposes of the LTIP 2018, where applicable, such accelerated vested Options (the “Accelerated Vested Options”) shall be included in the definition “Vested Options” of the LTIP 2018. 

 

	2.	 Exercise 

Accelerated Vested Options may be exercised immediately as of the Accelerated Vesting Date in accordance with section 6 of the LTIP 2018. 

 

	3.	 Lock-up Period 

Accelerated Vested Options shall be subject to the Lock-up Period of section 6.3 of the LTIP 2018. 

Any other rules of the LTIP 2018 remain unchanged and shall continue to apply. 

* * * * * 

  
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	On Holding AG – LTIP 2018	 	Amendment 2021	  	

  
  

 
 February 13, 2021 

 

					
	 /s/ Caspar Coppetti
	 		 	 /s/ David Allemann

	Caspar Coppetti	 		 	David Allemann
	Chairman of the Board of Directors	 		 	Member of the Board of Directors

  
 2EX-10.7

 Exhibit 10.7 

Amendment 2021 to the LTIP 2018 
 Due to
the changes in the capital structure of the Company1, the Compensation Committee proposes and the Board of Directors of the Company approves the following amendments to the LTIP 2018 and the
following adjustments to the terms of the Options Grants made under the LTIP 2018: 
  

	1.	 Amendment to LTIP 2018 

 

	1.1.	 Section 1: Definitions 

 

			
	Share	  	shall mean a registered common share of the Company with a nominal value of CHF 0.10 (class A share).

  

	1.2.	 Section 5.1: Option Terms 

The Exercise Price of Group 1 and Group 2 Options shall be set at USD 0.11. For US Participants, the Exercise Price
shall be set at the Valuation Price applicable at the Granting Date. 
 Any other rules of the LTIP 2018 remain unchanged and shall continue to apply.

  

	2.	 Adjustment of Option Grants made under the LTIP 2018 

The share capital increase by an increase of the nominal value of the Class A Shares of the Company from CHF 10.00 to CHF 125.00 per
share, and the subsequent share split whereby one registered share is split into 1,250 registered shares, i.e. one Class A Share with a nominal value of from CHF 125.00 is split into 1,250 Class A Shares with a nominal value of
CHF 0.10 each, requires an adjustment of the number of Options by the factor 1,250 as well as an adjustment of the exercise price by the divisor 1,250. Therefore, number of Options granted but not yet exercised under the LTIP 2018 shall
be amended as follows: 
  

	
	  

1 option (granted) = 1,250 options (adjusted)

 Furthermore, the Exercise Price of the granted Option shall be amended as follows: 

 

	
	  

Exercise Price CHF 10 = Exercise Price USD 0.11 (adjusted)

Exercise Price CHF 4,557 = Exercise Price USD 3.96 (adjusted)

Exercise Price CHF 9,125 = Exercise Price USD 7.93 (adjusted)

  

	1 	 Capitalized terms used in this amendment but not defined herein shall have the respective meaning assigned to
such terms in the LTIP 2018. 

 Zurich, August 22, 2021 
  

					
	 /s/ David Allemann
	 	                        	  	 /s/ Caspar Coppetti

	David Allemann	 		  	Caspar Coppetti
	Co-Chairman of the Board of Directors	 		  	Co-Chairman of the Board of Directors

  
 2EX-10.8

 Exhibit 10.8 
  

 
 ON HOLDING AG 

LEVEL TWO PARTICIPATION PROGRAM 
  

 
 Approved by the Board of Directors
on 
 23. July 2018 
 Zurich, 23. July 2018 

 

					
	 /s/ Caspar Coppetti
	 		 	 /s/ David Allemann

	Caspar Coppetti	 		 	David Allemann
	Chairman of the Board of Directors	 		 	Member of the Board of Directors

 List of Annexes: 
  

			
	Annex 1:	  	Notice of exercise
	Annex 2:	  	Settlement request

 On Holding AG – LTPP 
  

 
  

	1.	 Definitions 

Any capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in this section. 

 

	 Annual Compensation  
	shall mean the sum of the Participant’s annual base salary and the variable salary (cash bonus) received for the relevant calendar year. 

  

	 Award  
	shall mean an Option or a Phantom Share granted under this Plan. 

  

	 Award Agreement  
	shall mean a written agreement to be concluded between the Company and the Participant wherein the individual grant of an Award is specified. 

  

	 Award Calculation Amount 
	shall mean the amount to be considered in order to determine the number of Options or Phantom Shares to be granted to a Participant. 

  

	 Bad Leaver  
	shall mean a Participant (i) whose employment with a Subsidiary is terminated for Cause or (ii) whose employment with a Subsidiary is terminated and who is not qualifying as a Good or Medium Leaver. 

 

	 Board of Directors 
	shall mean the board of directors of the Company. 

  

	 Cause  
	shall mean (i) any material violation of law, (ii) grave misconduct or egregious acts (such as wilful disregard for company policy, falsifying records, stealing, violence, and similar acts or behaviour) which have occurred again after
formal written notice to the respective Participant, or (iii) a termination for cause according to art. 337 of the Swiss Codes of Obligations. 

  

	 Company  
	shall mean On Holding AG with registered seat in Zurich, Switzerland. 

  

	 Compensation Committee 
	shall mean the compensation committee of the Company as appointed by the Board of Directors, which administrates the LTPP pursuant to section 14 of the Plan. 

 

	 Exercise Price  
	shall mean the exercise price per Share for each Option granted under the LTPP, as specified in section 5.1 of the Plan and by the Award Agreement. 

  

	 Exit  
	shall mean the occurrence an Exit Event. 

  

	 Exit Event 
	 shall mean the completion of any one of the following events: (i) a Listing, (ii) a private sale of at least 40% of the Shares held by the

  
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	 	current non-executive shareholders or (iii) one current shareholder gains, whether directly or indirectly, ownership of more than 50% of the Company, (iv) a private sale
of all or substantially all of the Company’s assets relevant for its business to a buyer, (v) a merger, consolidation or demerger, or (vi) another reorganization with a similar result as (ii), (iii) or (iv). 

 

	 Fair Market Value  
	shall mean, with respect to one Share, the consideration paid per Share or allocated per Share in the Exit Event. 

  

	 Formula Value  
	shall mean, with respect to a Share for any purpose on a particular date, the value determined by the Compensation Committee in good faith by using the following valuation formula: [(2x capitalized earnings value) + net asset value] / 3
(at least, however, net asset value), whereby the capitalized earnings value shall be determined based on the audited financial accounts of the years (n) and (n-1), (n) weighting 2/3 and (n-1) weighting 1/3, capitalization factor 10%, divided by the total number of issued and outstanding Shares on a fully diluted basis. Valuations must be made based on the latest audited consolidated financial
statements of the On Group and shall be valid for six months following the year-end closing. 

  

	 Good Leaver  
	shall mean a Participant whose employment with a Subsidiary is (i) terminated by the Subsidiary without Cause, (ii) due to death, (iii) Permanent Disability, or (iv) retirement at legal age. 

 

	 Granting Date  
	shall mean the date on which Awards have been granted to a Participant pursuant to section 3 of the Plan. 

  

	 Issue Price Capital Round  
	shall mean the price paid per Share at the last capital round of the Company. 

  

	 Listing  
	shall mean a listing of the Shares for trading on a recognized stock exchange (e.g., in connection with an initial public offering). 

  

	 LTPP  
	shall mean this Level Two Participation Program. 

  

	 Medium Leaver  
	shall mean a Participant whose employment with a Subsidiary is terminated by the Participant. 

  

	 Notification Date 
	shall mean the date when notice of termination of employment of a Participant is given by the Participant or the Subsidiary. 

  

	 On Group  
	shall mean On Holding AG and all its Subsidiaries. 

  
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	 Option  
	shall mean a call option giving the right to the Participant to acquire one Share against payment of the Exercise Price. 

  

	 Participants  
	shall mean Level 2 and Level 2 CM employees that are participating in the LTPP (each a “Participant”). 

  

	 Permanent Disability 
	shall mean the incapacity to perform a majority of work-related duties during at least six consecutive months and no reasonable expectation to returning to work, as a result of disability and as attested by qualified physician entrusted by the
Compensation Committee. 

  

	 Phantom Share  
	shall mean an expectancy to receive one Share in kind or the Fair Market Value of one Share in cash. 

  

	 Plan 
	shall mean the LTPP. 

  

	 Relevant Price  
	shall mean the Issue Price Capital Round; if the last capital round took place 12 or more months before of the relevant Valuation Date, an increase of 10% p.a. will be applied. 

 

	 Share 
	shall mean a registered share of the Company with a nominal value of CHF 10.00. 

  

	 Shareholders Agreement  
	shall mean the shareholders’ agreement to be entered into by and between the shareholders of the Company, as amended from time to time. 

  

	 Subsidiary  
	shall mean any corporation in which the Company directly or indirectly owns stock representing 50% or more of the total combined voting power of all classes of stock (together “Subsidiaries”). 

 

	 Tax Withholding  
	shall mean any income taxes and/or social security contributions of the Participant, which are due upon settlement of a Phantom Share, exercise of an Option and/or upon subsequent sale of a Share, if any, for which the Company or a Subsidiary
has a withholding and payment obligation by applicable Swiss or foreign law. 

  

	 Termination Date 
	shall mean the effective date of termination of employment of a Participant. 

  

	 US Participants 
	shall mean the Participants (i) who are or have been employed by or seconded to ON Inc. and/or (ii) who are subject to US income taxes due to their US citizenship. 

 

	 Valuation Date  
	shall mean December 31 of the year for which the Participant has been nominated to be granted Awards under the LTPP. 

  
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 On Holding AG – LTPP 
  

 
  

	 Vesting Date 
	shall mean the date on which Awards vest in accordance with section 5.1 and 6.1 of the Plan and as specified the individual agreement. 

  

	 Vested Options 
	shall mean the Options, which vested in accordance with the rules of the Plan, and the terms specified in the individual agreement. 

  

	 Vested Phantom Shares  
	shall mean the Phantom Shares, which vested in accordance with the rules of the Plan, and the terms specified in the individual agreement. 

  

	2.	 Purpose 

The purpose of the LTPP is to reward long and valued employees for their individual performance by giving them the opportunity to benefit from the evolvement
of the Company by receiving a bonus in form of Awards. 
  

	3.	 Granting of Awards 

Awards may be granted to the Participants in accordance with the terms of the LTPP. Each grant of an Award shall be valid only if evidenced in an Award
Agreement. Awards may be granted as follows: 
  

							
	 Participants
	  	 Category
	  	 Award Calculation Amount
	  	 Grant
schedule

				
	Non US Participants	  	Options	  	0 – 30% of Annual Compensation	  	Annually
				
	US Participants	  	Phantom Shares	  	0 – 30% of Annual Compensation	  	Annually

  

	4.	 Eligibility 

Level 2 and Level 2 CM employees of the On Group may be nominated by the Board of Directors for Awards under the LTPP on an annual basis. The Board
of Directors shall determine, for each Participant, his/her specific Award Calculation Amount within the range as set out in section 3, based on the Participant’s individual performance achieved in a specific calendar year. Non US Participants
shall be granted Options; US Participants shall be granted solely Phantom Shares. 
 Award grants will be communicated to Participants until
February 28 of the following year. 

  
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 On Holding AG – LTPP 
  

 
  

	5.	 Options 

  

	5.1.	 Option Terms 

 

			
	Granting Date	  	March 31
		
	Issuance Price	  	Options shall be granted free of charge
		
	Exercise Price	  	The Exercise Price shall be set at CHF 10.00
		
	Quantity	  	The quantity of Options to be granted will be determined based on the following calculation formula: 
[Award Calculation Amount / (the Relevant Price – Exercise Price)]
		
	Vesting Date	  	Options shall vest on the third anniversary of the Granting Date
		
	Exercise Period	  	Vested Options (unless forfeited in accordance with sections 9.1.1, 9.2.1 or 9.3.1 of the Plan), may be exercised until the tenth anniversary of the Granting Date.

  

	5.2.	 Exercise of Options 

 

	5.2.1.	 In General 

Vested Options may be exercised fully or partially by the relevant Participant by filing a written notice of exercise (see Annex 1) to the Company. 

In order to be valid, the completed notice of exercise must be received by the Company on or prior to the following dates: 

 

	(i)	 In any event: before the lapse of the Exercise Period; and 

 

	(ii)	 For Good and Medium Leavers: within 14 days after the Termination Date; or 

 

	(iii)	 For heirs: within 180 days since the Participant’s death. 

Options may be exercised in cash, as set out hereinafter. 
  

	5.2.2.	 Cash Exercise 

Options exercised in cash shall be settled by way of issuance and transfer of Shares (subject to the rules and requirements of sections 5.2.3, -, and 8 of this
Plan) against full payment of (i) the Exercise Price and (ii) if requested by the Company, the applicable Tax Withholding. These payments shall be made in cash by the Participant not later than 30 days since the filing of the written
notice of exercise. 
  

	5.2.3.	 Lock-up Period 

Shares acquired upon exercise of Vested Options shall be subject to the following lock-up periods: 

 

	 	•	 	 1/3 of the Shares shall not be subject to any lock-up period;

  
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	 	•	 	 1/3 of the Shares shall be subject to a lock-up period until the first
anniversary of the Vesting Date; 

  

	 	•	 	 1/3 of the Shares shall be subject to a lock-up period until the second
anniversary of the Vesting Date. 

  

	6.	 Phantom Share 

 

	6.1.	 Phantom Share Terms 

 

			
	Granting Date	  	March 31
		
	Issuance Price	  	Phantom Shares shall be granted free of charge
		
	Quantity	  	The quantity of Phantom Shares to be granted will be determined based on the following calculation formula: 
[Award Calculation Amount / the Relevant Price]
		
	Vesting Date	  	Phantom Shares shall vest on the third anniversary of the Granting Date
		
	Settlement Period	  	Vested Phantom Shares (unless forfeited in accordance with sections 9.1.2, 9.2.29.1.1 or 9.3.2 of the Plan), may be settled upon request of the Participant until the tenth anniversary of the Granting Date.

  

	6.2.	 Dividend Equivalent 

Each Phantom Share contains the right to receive a dividend equivalent, which shall be a payment in cash corresponding to the (gross) dividend paid per Share.
Payment of the dividend equivalent is due on the due date of the dividend of the Share. No dividend equivalent will be paid in case the shareholders of the Company have declared no dividend. 

 

	6.3.	 Settlement 

  

	6.3.1.	 In General 

Vested Phantom Shares may be settled fully or partially upon request by the relevant Participant by filing a written settlement request (see Annex 2) to
the Company. 
 In order to be valid, the completed settlement request must be received by the Company on or prior to the following dates: 

 

	(i)	 In any event: before the lapse of the Settlement Period; and 

 

	(ii)	 For Good and Medium Leavers: within 14 days after the Termination Date; or 

 

	(iii)	 For heirs: within 180 days since the Participant’s death. 

Phantom Shares may be settled in Shares, as set out hereinafter. 

  
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 On Holding AG – LTPP 
  

 
  

	6.3.2.	 In Shares 

Vested Phantom Shares shall be settled by way of issuance and transfer of Shares (subject to the rules and requirements of sections 6.4, 7 and 8 of this Plan)
against full payment of (i) the nominal value of one Share and (ii) if requested by the Company, the applicable Tax Withholding. These payments shall be made in cash by the Participant not later than 30 days since the filing of the written
settlement request. 
  

	6.4.	 Lock-up Period 

Shares acquired upon settlement of Phantom Shares shall be subject to the following lock-up periods, if any: 

 

	 	•	 	 1/3 of the Shares shall not be subject to any lock-up period;

  

	 	•	 	 1/3 of the Shares shall be subject to a lock-up period until the first
anniversary of the Vesting Date; 

  

	 	•	 	 1/3 of the Shares shall be subject to a lock-up period until the second
anniversary of the Vesting Date. 

  

	7.	 Restrictions as to transferability of Awards and Shares 

No Awards granted under the LTPP shall be sold, pledged, assigned, encumbered, transferred, or disposed of in any manner other than by will or inheritance
laws. 
 Upon exercise or settlement of an Award in Shares, each Participant (or his/her heirs) will be required to become a party to the Shareholders
Agreement and shall, among other provisions, be bound to all restrictions as to the transferability of the Shares as stated therein. As a condition precedent for the transfer of Shares, the Participant (or his/her heirs) will be requested to execute
a formal deed of adherence in which he/she will declare adherence to the Shareholders Agreement and all terms thereof. 
 The Company in its sole discretion
may decide to list the Shares on any recognized stock exchange. In that event, all Shares issued to Participants (or their heirs) under the LTPP may be subject to customary limitations in terms of transferability of Shares (lock-up/market stand-off) - in addition to the lock-up period of section 5.2.3 and 6.4 of the Plan - for a period following an initial
public offering of Shares as required by the underwriter(s)/joint global coordinator(s) or pursuant to applicable listing requirements or deemed appropriate by the Company and agreed with the underwriter(s)/joint global coordinator(s) in case of an
initial (or subsequent) public offering of Shares. 

  
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	8.	 Deposit of Shares 

Shares acquired by the Participant (or his/her heirs) upon exercise of Options and/or settlement of Phantom Shares granted under the LTPP shall – if
certificates are at all issued, which shall be at the option of the Company – be duly endorsed in blank by the relevant Participant (or his/her heirs) and then be and remain deposited in the name and for the account of the Participant (or
his/her heirs) either with the Company or at the election of the Company with a third party chosen by the Company. The Company will bear the costs of such safekeeping. Upon occurrence of a Listing and upon lapse of the
lock-up, if any, such Shares may be released and transferred to the Participant’s personal deposit account upon request. 
  

	9.	 Effect of Termination of Employment 

In case of termination of employment between a Participant and a Subsidiary, the following rules shall apply: 

 

	9.1.	 Good Leaver 

  

	9.1.1.	 Options 

A Participant who qualifies as a Good Leaver shall 
  

	(i)	 Keep all of his/her unvested Options until the first anniversary of the Termination Date. Thereafter, all
unvested Options shall be forfeited automatically, irrevocably and without indemnification to the Participant. Any Options, which vest within the 12-month period following the Termination Date, must be
exercised within 14 days as of the Vesting Date. Thereafter, all unexercised Vested Options shall be forfeited automatically, irrevocably and without indemnification to the Participant; and 

 

	(ii)	 Keep his/her Vested Options, which can be exercised within 14 days, following the Termination Date. In case of
death of the Participant, the heirs may exercise any Vested Options within 180 days from the Participant’s death. Thereafter, all unexercised Vested Options shall be forfeited automatically, irrevocably and without indemnification to the
Participant. 

  

	9.1.2.	 Phantom Shares 

A Participant who qualifies as a Good Leaver shall 
  

	(i)	 Keep all of his/her unvested Phantom Shares until the first anniversary of the Termination Date. Thereafter,
all unvested Phantom Shares shall be forfeited automatically, irrevocably and without indemnification to the Participant. For Phantom Shares vesting within the 12-month period following the Termination Date,
the settlement request must be filed within 14 days as of the Vesting Date. Thereafter, all unsettled Phantom Shares shall be forfeited automatically, irrevocably and without indemnification to the Participant; and 

  
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	(ii)	 Keep his/her Vested Phantom Shares, for which a settlement request must be filed within 14 days following the
Termination Date. In case of death of the Participant, the heirs may request settlement of any Vested Phantom Shares within 180 days from the Participant’s death. Thereafter, all unsettled Vested Phantom Shares shall be forfeited automatically,
irrevocably and without indemnification to the Participant. 

  

	9.1.3.	 Shares 

A Participant who qualifies as a Good Leaver shall keep all his/her unrestricted Shares acquired under the LTPP prior to the Termination Date. The Company (or
any person or legal entity nominated by the Company) shall, however, have the right, but not the obligation, to purchase any Shares acquired under the LTPP which are still subject to a lock-up in accordance
with section 5.2.3 or 6.4 as of the Termination Date at the lesser of the [Formula Value at the time of exercise of the Option or vesting of the Phantom Share and the Formula Value at the time of exercise of such purchase option] by the Company (or
any person or legal entity nominated by the Company). The term of such purchase option is limited to [one calendar year] as of the Participant’s Termination Date. 
  

	9.2.	 Medium Leaver 

 

	9.2.1.	 Options 

A Participant who qualifies as a Medium Leaver shall 
  

	(i)	 Automatically and immediately forfeit all his/her unvested Options, without any indemnification, as of the
Termination Date; 

  

	(ii)	 Keep his/her Vested Options, which can be exercised within 14 days, following the Termination Date. Thereafter,
all unexercised Vested Options shall be forfeited automatically, irrevocably and without indemnification to the Participant. 

  

	9.2.2.	 Phantom Shares 

A Participant who qualifies as a Medium Leaver shall 
  

	(i)	 Automatically and immediately forfeit all his/her unvested Phantom Shares, without any indemnification, as of
the Termination Date; 

  

	(ii)	 Keep his/her Vested Phantom Shares, for which a settlement request must be filed within 14 days following the
Termination Date. Thereafter, all unsettled Vested Phantom Shares shall be forfeited automatically, irrevocably and without indemnification to the Participant. 

 

	9.2.3.	 Shares 

A Participant who qualifies as a Medium Leaver shall keep all his/her unrestricted Shares acquired under the LTPP prior to the Termination Date. The Company
(or any person or legal entity nominated 

  
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by the Company) shall, however, have the right, but not the obligation, to purchase any Shares acquired under the LTPP which are still subject to a lock-up in accordance with section 5.2.3 or 6.4 as of the Termination Date at the lesser of the [Formula Value at the time of exercise of the Option or vesting of the Phantom Share and the Formula Value at the time
of exercise of such purchase option] by the Company (or any person or legal entity nominated by the Company). The term of such purchase option is limited to [one calendar year] as of the Participant’s Termination Date. 

 

	9.3.	 Bad Leaver 

  

	9.3.1.	 Options 

A Participant who qualifies as a Bad Leaver shall automatically and immediately forfeit all his/her Options, whether vested or not, without any
indemnification, as of the Notification Date. 
  

	9.3.2.	 Phantom Shares 

A Participant who qualifies as a Bad Leaver shall automatically and immediately forfeit all his/her Phantom Shares, whether vested or not, without any
indemnification, as of the Notification Date. 
  

	9.3.3.	 Shares 

A Participant who qualifies as a Bad Leaver shall keep all his/her unrestricted Shares acquired under the LTPP prior to the Notification Date. The Company (or
any person or legal entity nominated by the Company) shall have the right, but not the obligation, to purchase any Shares acquired under the LTPP which are still subject to a lock-up in accordance with section
5.2.3 or 6.4 as of the Notification Date at the lesser of the nominal Value of the Shares and their Formula Value at the time of exercise of such purchase option by the Company (or any person or legal entity nominated by the Company). The term of
such purchase option is limited to [one calendar year] as of the Participant’s Termination Date.  
  

	10.	 Exit 

  

	10.1.	 Effect of an Exit 

 

	10.1.1.	 In General 

Upon the occurrence of an Exit, subject to any consent required under the Shareholders Agreement, the Compensation Committee may prescribe and amend the terms
and conditions for the vesting, exercise and/or settlement of any Awards granted under the LTPP, provided that such amendments are not materially adverse to the Participants and do not compromise the interests of the Participants. Such power and
discretion shall include, but not be limited to, the power and authority to (i) reduce or abolish lock-up periods and to (ii) modify the requirements and modality for the settlement of any Awards
(including a cash settlement in case of a full Exit in an amount equal to the Fair Market Value minus the Exercise Price or nominal value of the Shares, if any, subject to any Tax Withholding). 

  
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	10.1.2.	 Participants and Good Leavers 

Upon the occurrence of an Exit Event, Participants and Good Leavers may sell or may be required to sell their Shares acquired under the LTPP in accordance
with the rules of the Shareholders’ Agreement at the Fair Market Value subject to any applicable Tax Withholding. 
  

	11.	 Changes in Capital Structure 

In the event of a change, other than a share capital increase, relating to the Shares through reclassification, recapitalization, subdivision, stock dividend,
stock split-up or otherwise in the Company’s corporate structure, the Compensation Committee shall, to the extent permissible by law, adjust the terms of the Awards then outstanding to ensure that the
Participants receive in respect of each Award, upon exercise or settlement, the same value in cash and/or type of stock that each Participant would have been entitled to receive without such change. 

 

	12.	 Taxation and Social Security 

Awards may be subject to income tax and/or social security. In Switzerland, Awards will be subject to Swiss income tax and Swiss social security contributions
upon exercise (in case of Options) or vesting (in case of Phantom Shares). A subsequent sale of the Shares acquired under the LTPP may, depending on the individual circumstances and the amount of the capital gain realized, trigger Swiss income tax
and Swiss social security contributions as well. Swiss social security contributions legally due will be borne by the Subsidiary and the relevant Participant in accordance with applicable law and regulations. 

Depending on the Participant’s residence, place of work or nationality, Awards may be subject to income tax and/or social security contributions in
jurisdictions other than Switzerland. Each Participant is responsible for a proper declaration and payment of his/her personal income taxes, including capital gains taxes, if any, that may arise from participation in the LTPP in each relevant
jurisdiction. 
  

	13.	 No Entitlements 

 

	13.1.	 No Shareholder Rights 

An Award does not include any shareholder rights (such as voting, dividend and information right). 

 

	13.2.	 No Right to Future Grants 

Besides stated in the individual employment agreement, a nomination under the LTPP for a specific year shall not confer any right or entitlement to be
nominated and granted any Awards in future years or to participate in any future employee participation plan. 

  
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 On Holding AG – LTPP 
  

 
  

	13.3.	 No Right to Continued Employment 

The LTPP does not constitute an employment agreement. Nothing contained herein shall modify the terms of the Participants’ respective employment or
restrict the Subsidiary’s right to terminate the employment of any Participant at any time, with or without Cause, or to adjust the compensation of any Participant. 
  

	14.	 Administration 

The LTPP shall be administrated by the Compensation Committee. 

The Compensation Committee is authorized and shall have full power and authority, subject to the provisions of the LTPP, to establish such rules and
regulations as it may deem appropriate for the proper administration and operation of the LTPP, and to make such determinations under, and such interpretations of, and to take such steps in connection with, the LTPP and the Awards granted thereunder
as it may deem necessary or advisable. 
 The Compensation Committee’s decisions, determinations and interpretations shall be final and binding on all
Participants and any other holders of Awards or Shares hereunder. 
  

	15.	 Amendment 

The Compensation Committee may make any amendments to the LTPP that may be necessary to comply with or conform to applicable laws. Furthermore, the
Compensation Committee shall have the power to modify the LTPP as necessary to conform to the Shareholders Agreement solely to the extent such modifications would not adversely affect a Participant. 

 

	16.	 Confidentiality 

The LTPP is confidential to the business. The terms and conditions of the LTPP and any individual Award grant shall therefore be kept strictly confidential
(and may be shared only with [the spouse and] the personal advisors of the Participant), unless disclosure is required by mandatory law. 
  

	17.	 Effective Date and Term 

The LTPP has been approved by the Board of Directors on [DATE]. The LTPP shall be effective as of [DATE] and shall be valid until the later of [DATE] or all
Awards granted under the LTPP have been settled, exercised, forfeited, or otherwise canceled or any lock-up of such Shares have been expired or any purchase options of the Company have been exercised or
lapsed. 

  
 13 

 On Holding AG – LTPP 
  

 
  

	18.	 Governing Law 

The LTPP shall be subject to and governed by substantive Swiss law. 

* * * 

  
 14 

 On Holding AG – LTPP 
  

 
  

EXERCISE NOTICE 
 LEVEL
TWO PARTICIPATION PROGRAM 
 ON HOLDING AG 
  

			
	To be sent to the attention of the CFO of ON Holding AG
		
	Name and address of Participant:	  	  

		
		  	  

 Options to be exercised (please indicate): 
  

							
	 [Option Category/
 Granting
Date]
	  	 Number of Options to
 be exercised
(a)
	  	 Exercise price per
 Share in CHF
(b)
	  	Total Exercise Price in CHF (c = a x b)
				
		  		  		  	

 Note: 
  

	i)	 The terms defined in the Level Two Participation Program of ON Holding AG have the same meaning when used
herein. 

  

	ii)	 Options exercised will be settled by way of issuance and transfer of Shares (subject to lock-up, if any, according to section 5.2.3 and deposit according to section 8 of the LTPP) against full payment of (i) the Exercise Price and (ii) if requested by the Company, the applicable Tax
Withholding. Upon receipt of this notice of exercise, the Company will inform the Participant about the applicable Tax Withholding and provide the Participant with the payment details. Payment of the Exercise Price and Tax Withholding is due in cash
and not later than 30 days since the filing of this notice of exercise. 

  

	iii)	 As a condition precedent for the validity of the exercise of the Options hereunder and the issuance and
transfer of Shares, the Participant will be requested to execute a formal deed of adherence in which he/she will declare adherence to the Shareholders Agreement and all terms thereof. 

 

			
	Place/Date:	 	  

		
	Signature of Participant:	 	  

  
 15 

 On Holding AG – LTPP 
  

 
  

SETTLEMENT REQUEST 
 LEVEL
TWO PARTICIPATION PROGRAM 
 ON HOLDING AG 
  

			
	To be sent to the attention of the CFO of ON Holding AG
		
	Name and address of Participant:	  	  

		
		  	  

 Phantom Shares to be settled (please indicate): 

 

							
	[Category of Phantom Shares/ Granting Date]	  	Number of Phantom Shares to be settled (a)	  	 Nominal value per
 Share in CHF
(b)
	  	Total nominal value in CHF (c = a x b)
				
		  		  		  	

 Note: 
  

	i)	 The terms defined in the Level Two Participation Program of ON Holding AG have the same meaning when used
herein. 

  

	ii)	 Phantom Shares will be settled by way of issuance and transfer of Shares (subject to lock-up, if any, according to section 6.4 and deposit according to section 8 of the LTPP) against full payment of (i) the nominal value and (ii) if requested by the Company, the applicable Tax Withholding.
Upon receipt of this settlement request, the Company will inform the Participant about the applicable Tax Withholding and provide the Participant with the payment details. Payment of the nominal value and Tax Withholding is due in cash and not later
than 30 days since the filing of this settlement request. 

  

	iii)	 As a condition precedent for the validity of the settlement of the Phantom Shares hereunder and the issuance
and transfer of Shares, the Participant will be requested to execute a formal deed of adherence in which he/she will declare adherence to the Shareholders Agreement and all terms thereof. 

 

			
	Place/Date:	 	  

		
	Signature of Participant:	 	  

  
 16

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