Document:

EX-10.11

 Exhibit 10.11 

PETCO Animal Supplies, Inc. 
 Deferred Compensation Plan
II 
 Master Plan Document 
 EFFECTIVE
JANUARY 1, 2005 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	 Purpose
	  	 	5	  
		
	 ARTICLE 1 Definitions
	  	 	5	  
		
	 ARTICLE 2 Selection, Enrollment Eligibility
	  	 	13	  
			
	 2.1
	 	 Selection by Committee.
	  	 	13	  
			
	 2.2
	 	 Enrollment and Eligibility Requirements; Commencement of Participation.
	  	 	13	  
		
	 ARTICLE 3 Deferral Commitments/Company Contribution Amounts/Company Restoration Matching Amounts/
Vesting/Crediting/Taxes
	  	 	14	  
			
	 3.1
	 	 Maximum Deferral.
	  	 	14	  
			
	 3.2
	 	 Timing of Deferral Elections: Effect of Election Form.
	  	 	15	  
			
	 3.3
	 	 Withholding and Crediting of Annual Deferral Amounts.
	  	 	17	  
			
	 3.4
	 	 CEO Discretionary Award Amount.
	  	 	18	  
			
	 3.5
	 	 Annual Company Matching Amount.
	  	 	18	  
			
	 3.6
	 	 Vesting.
	  	 	19	  
			
	 3.7
	 	 Crediting/Debiting of Account Balances.
	  	 	20	  
			
	 3.8
	 	 FICA and Other Taxes.
	  	 	22	  
		
	 ARTICLE 4 Scheduled Distribution; Unforeseeable Emergencies
	  	 	22	  
			
	 4.1
	 	 Scheduled Distributions.
	  	 	22	  
			
	 4.2
	 	 Postponing Scheduled Distributions.
	  	 	23	  
			
	 4.3
	 	 Other Benefits Take Precedence Over Scheduled Distributions.
	  	 	23	  
			
	 4.4
	 	 Unforeseeable Emergencies.
	  	 	23	  
		
	 ARTICLE 5 Retirement Benefit
	  	 	24	  
			
	 5.1
	 	 Retirement Benefit.
	  	 	24	  
			
	 5.2
	 	 Payment of Retirement Benefit.
	  	 	24	  
		
	 ARTICLE 6 Termination Benefit
	  	 	25	  
			
	 6.1
	 	 Termination Benefit.
	  	 	25	  
			
	 6.2
	 	 Payment of Termination Benefit.
	  	 	26	  
		
	 ARTICLE 7 Disability Benefit
	  	 	26	  
			
	 7.1
	 	 Disability Benefit.
	  	 	26	  

  
 -ii- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

							
			
	 7.2
	 	 Payment of Disability Benefit.
	  	 	26	  
		
	 ARTICLE 8 Death Benefit
	  	 	26	  
			
	 8.1
	 	 Death Benefit.
	  	 	26	  
			
	 8.2
	 	 Payment of Death Benefit.
	  	 	26	  
		
	 ARTICLE 9 Beneficiary Designation
	  	 	26	  
			
	 9.1
	 	 Beneficiary.
	  	 	26	  
			
	 9.2
	 	 Beneficiary Designation; Change; Spousal Consent.
	  	 	26	  
			
	 9.3
	 	 Acknowledgment.
	  	 	27	  
			
	 9.4
	 	 No Beneficiary Designation.
	  	 	27	  
			
	 9.5
	 	 Doubt as to Beneficiary.
	  	 	27	  
			
	 9.6
	 	 Discharge of Obligations.
	  	 	27	  
		
	 ARTICLE 10 Leave of Absence
	  	 	27	  
			
	 10.1
	 	 Paid Leave of Absence.
	  	 	27	  
			
	 10.2
	 	 Unpaid Leave of Absence.
	  	 	27	  
		
	 ARTICLE 11 Termination of Plan, Amendment or Modification
	  	 	28	  
			
	 11.1
	 	 Termination of Plan.
	  	 	28	  
			
	 11.2
	 	 Amendment.
	  	 	28	  
			
	 11.3
	 	 Plan Agreement.
	  	 	29	  
			
	 11.4
	 	 Effect of Payment.
	  	 	29	  
		
	 ARTICLE 12 Administration
	  	 	29	  
			
	 12.1
	 	 Committee Duties.
	  	 	29	  
			
	 12.2
	 	 Administration Upon Change In Control.
	  	 	29	  
			
	 12.3
	 	 Agents.
	  	 	29	  
			
	 12.4
	 	 Binding Effect of Decisions.
	  	 	29	  
			
	 12.5
	 	 Indemnity of Committee.
	  	 	30	  
			
	 12.6
	 	 Employer Information.
	  	 	30	  
		
	 ARTICLE 13 Other Benefits and Agreements
	  	 	30	  
			
	 13.1
	 	 Coordination with Other Benefits.
	  	 	30	  
		
	 ARTICLE 14 Claims Procedures
	  	 	30	  
			
	 14.1
	 	 Presentation of Claim.
	  	 	30	  
			
	 14.2
	 	 Notification of Decision.
	  	 	30	  
			
	 14.3
	 	 Review of a Denied Claim.
	  	 	31	  

  
 -iii- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

							
			
	 14.4
	 	 Decision on Review.
	  	 	31	  
			
	 14.5
	 	 Legal Action.
	  	 	32	  
		
	 ARTICLE 15 Trust
	  	 	32	  
			
	 15.1
	 	 Establishment of the Trust.
	  	 	32	  
			
	 15.2
	 	 Interrelationship of the Plan and the Trust.
	  	 	32	  
			
	 15.3
	 	 Distributions From the Trust.
	  	 	32	  
		
	 ARTICLE 16 Miscellaneous
	  	 	33	  
			
	 16.1
	 	 Status of Plan.
	  	 	33	  
			
	 16.2
	 	 Unsecured General Creditor.
	  	 	33	  
			
	 16.3
	 	 Employer’s Liability.
	  	 	33	  
			
	 16.4
	 	 Nonassignability.
	  	 	33	  
			
	 16.5
	 	 Not a Contract of Employment.
	  	 	33	  
			
	 16.6
	 	 Furnishing Information.
	  	 	34	  
			
	 16.7
	 	 Terms.
	  	 	34	  
			
	 16.8
	 	 Captions.
	  	 	34	  
			
	 16.9
	 	 Governing Law.
	  	 	34	  
			
	 16.10
	 	 Notice.
	  	 	34	  
			
	 16.11
	 	 Successors.
	  	 	34	  
			
	 16.12
	 	 Spouse’s Interest.
	  	 	34	  
			
	 16.13
	 	 Validity.
	  	 	35	  
			
	 16.14
	 	 Incompetent.
	  	 	35	  
			
	 16.15
	 	 Domestic Relations Orders.
	  	 	35	  
			
	 16.16
	 	 Distribution in the Event of Income Inclusion Under Code Section 409A.
	  	 	35	  
			
	 16.17
	 	 Deduction Limitation on Benefit Payments.
	  	 	35	  

  
 -iv- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 Purpose 

The purpose of this Plan is to provide specified benefits to Directors and a select group of management or highly compensated Employees who
contribute materially to the continued growth, development and future business success of PETCO Animal Supplies, Inc., a Delaware corporation, and its subsidiaries, if any, that sponsor this Plan. This Plan shall be unfunded for tax purposes and for
purposes of Title I of ERISA. 
 This Plan replaces the PETCO Animal Supplies, Inc. Deferred Compensation Plan (the “Prior
Plan”) with respect to all amounts previously deferred under the Prior Plan to which a Participant did not have an earned and vested right as of December 31, 2004 and related earnings, gains and losses on those amounts. The Prior Plan
governs all other amounts deferred under the Prior Plan. 
 The Plan is intended to comply with all applicable law, including Code
Section 409A and related Treasury guidance and Regulations, and shall be operated and interpreted in accordance with this intention. In order to transition to the requirements of Code Section 409A and related Treasury Regulations, the
Committee may make available to Participants certain transition relief provided under Treasury guidance, including without limitation Notice 2006-79, as described more fully in Appendix A of this Plan. 

ARTICLE 1 

Definitions 
 For
the purpose of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings: 
  

	1.1	“Account Balance” shall mean, with respect to a Participant, an entry on the records of the Employer equal to the sum of the Participant’s Annual Accounts. The Account Balance shall be a bookkeeping entry
only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan. 

If a Participant is both an Employee and a Director and participates in the Plan in each capacity, then separate Account Balances (and separate
Annual Accounts, if applicable) shall be established for such Participant as a device for the measurement and determination of the (a) amounts deferred under the Plan that are attributable to the Participant’s status as an Employee, and
(b) amounts deferred under the Plan that are attributable to the Participant’s status as a Director. 
  

	1.2	 “Annual Account” shall mean, with respect to a Participant, an entry on the records of the Employer equal to (a) the sum of the
Participant’s Annual Deferral Amount, Annual Company Matching Amount and CEO Discretionary Award Amount for any one Plan Year, plus (b) amounts credited or debited to such amounts pursuant to this Plan, less
(c)

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 all distributions made to the Participant or his or her Beneficiary pursuant to this Plan
that relate to the Annual Account for such Plan Year. The Annual Account shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or his or her
designated Beneficiary, pursuant to this Plan. 
  

	1.3	“Annual Base Salary” shall mean the annual cash compensation relating to services performed during any calendar year, excluding distributions from nonqualified deferred compensation plans, bonuses,
commissions, overtime, fringe benefits, stock options, relocation expenses, incentive payments, non-monetary awards, director fees and other fees, and automobile and other allowances paid to a Participant for employment services rendered (whether or
not such allowances are included in the Employee’s gross income). Annual Base Salary shall be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to all qualified or nonqualified plans of
any Employer and shall be calculated to include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any Employer; provided, however, that
all such amounts will be included in compensation only to the extent that had there been no such plan, the amount would have been payable in cash to the Employee. 

 

	1.4	“Annual Deferral Amount” shall mean that portion of a Participant’s Annual Base Salary, Bonus, Director Fees, LTIP Amounts and Annual 401(k) Refund Offset Amount that a Participant defers in accordance
with Article 3 for any one Plan Year, without regard to whether such amounts are withheld and credited during such Plan Year. 

  

	1.5	“Annual 401(k) Refund Offset Amount” shall mean an amount equal to any forced reduction in a Participant’s 401(k) deferrals for such Plan Year (i) that are refunded to such Participant as a result of
nondiscrimination testing, and (ii) that a Participant has affirmatively elected under this Plan to defer from Annual Base Salary; provided however, if the amount of any forced reduction in a Participant’s 401(k) deferrals for any Plan
Year is not equal to a whole percentage of Annual Base Salary or whole dollar amount, then the amount deferred from Annual Base Salary shall be rounded up or down, using normal rounding convention, to the nearest whole percentage of Annual Base
Salary for such Plan Year or the nearest whole dollar amount, as applicable. Notwithstanding anything to the contrary in this Section 1.5, if the actual amount of the forced reduction in a Participant’s 401(k) deferrals for such Plan Year,
after any rounding required by this Section 1.5, is less than one percent (1%) of Annual Base Salary, the amount deferred shall be zero. 

  

	1.6	 “Annual Installment Method” shall mean the method used to determine the amount of each payment due to a Participant who has elected to
receive a benefit over a period of years in accordance with the applicable provisions of the Plan. The amount of each annual payment due to the Participant shall be calculated by multiplying the balance of the Participant’s benefit by a
fraction, the numerator of which is one and the denominator 

  
 -6- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
of which is the remaining number of annual payments due to the Participant. By way of example, if the Participant elects a 10 year Annual Installment Method, the first payment shall be 1/10
of the Account Balance, calculated as described in this definition. The following year, the payment shall be 1/9 of the Account Balance, calculated as described in this definition. The amount of the first annual payment shall be calculated as of the
close of business on or around the Participant’s Benefit Distribution Date, and the amount of each subsequent annual payment shall be calculated on or around each anniversary of such Benefit Distribution Date. For purposes of this Plan, the
right to receive a benefit payment in annual installments shall be treated as the entitlement to a single payment. 

  

	1.7	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 9, that are entitled to receive benefits under this Plan upon the death of a Participant.

  

	1.8	“Beneficiary Designation Form” shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to designate one or more Beneficiaries.

  

	1.9	“Benefit Distribution Date” shall mean the date upon which all or an objectively determinable portion of a Participant’s vested benefits will become eligible for distribution. 

 

	1.10	“Board” shall mean the board of directors of the Company. 

  

	1.11	“Bonus” shall mean any cash compensation, in addition to Annual Base Salary and LTIP Amounts, earned by a Participant under any Employer’s annual bonus and cash incentive plans, and excluding cash payable
in settlement of equity compensation awards. 

  

	1.12	“CEO Discretionary Award Account” shall mean (i) the sum of the Participant’s CEO Discretionary Award Amounts, plus (ii) amounts credited or debited in accordance with all the applicable
crediting provisions of this Plan that relate to the Participant’s CEO Discretionary Award Account, less (iii) all distributions made to the Participant, or his or her Beneficiary, pursuant to this Plan that relate to the
Participant’s CEO Discretionary Award Account. 

  

	1.13	“CEO Discretionary Award Amount” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.4. 

 

	1.14	“Change in Control” shall be deemed to occur: 

  

	 	(a)	if any person or entity (other than, individually or collectively, TPG Partners IV, L.P., TPG Partners V, L.P., Green Equity Investors IV, L.P. and/or their respective affiliates) is or becomes the “beneficial
owner” (within the meaning of Rule 13d 3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding securities; 

  
 -7- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(b)	upon the consummation of any of the following (each a ‘Transaction”): (i) a merger, consolidation or reorganization of the Company; (ii) a sale or other disposition of all or substantially all of the
Company’s assets (including, without limitation, by distribution to the stockholders of the Company by spin-off, split-up or otherwise); or (iii) a liquidation or dissolution of the Company; provided, however, that a Change in Control
pursuant to clause (i) of this subparagraph (b) shall be deemed not to have occurred if, immediately following the consummation of any Transaction at issue, holders of the Company’s voting securities immediately prior to such
Transaction either (x) continue to own at least fifty percent (50%) of the combined voting power of the Company’s then outstanding voting securities (if the Company survives the Transaction) or (y) then own voting securities
representing at least fifty percent (50%) of the combined voting power of the surviving or acquiring entity (or its parent entity) after such Transaction; or 

 

	 	(c)	upon the first day on which a majority of the members of the Company’s Board of Directors are not “Continuing Directors,” which shall mean, as of any date of determination, any member of the Board who:
(i) was a member of the Board on October 26, 2006; or (ii) was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were members of the Board at the time of such nomination or
election. 

  

	1.15	“Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time. 

  

	1.16	“Committee” shall mean the committee described in Article 12. 

  

	1.17	“Company” shall mean PETCO Animal Supplies, Inc., a Delaware corporation, and any successor to all or substantially all of the Company’s assets or business. 

 

	1.18	“Company Matching Account” shall mean, for any one Plan Year, the amount determined in accordance with Section 3.4. 

  

	1.19	“Director” shall mean any member of the board of directors of any Employer. 

  

	1.20	“Director Fees” shall mean the annual fees earned by a Director from any Employer, including retainer fees, meetings fees and committee chair fees, as compensation for serving on the board of directors,

  

	1.21	 “Disability” or “Disabled” shall mean that a Participant is either (a) unable to engage in any substantial gainful activity
by reason of 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 12 months, or (b) by reason of any medically

  
 -8- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
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 12 months, receiving income replacement
benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participant’s Employer. For purposes of this Plan, a Participant shall be deemed Disabled if determined to be totally disabled by
the Social Security Administration. A Participant shall also be deemed Disabled if determined to be disabled in accordance with the applicable disability insurance program of such Participant’s Employer, provided that the definition of
“disability” applied under such disability insurance program complies with the requirements of this Section. 

  

	1.22	“Election Form” shall mean the form, which may be in electronic format, established from time to time by the Committee that a Participant completes, signs and returns to the Committee to make an election under
the Plan. 

  

	1.23	“Employee” shall mean a person who is an employee of an Employer. 

  

	1.24	“Employer(s)” shall be defined as follows: 

  

	 	(a)	Except as otherwise provided in part (b) of this Section, the term “Employer” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have been
selected by the Board to participate in the Plan and have adopted the Plan as a sponsor. 

  

	 	(b)	For the purpose of determining whether a Participant has experienced a Separation from Service, the term “Employer” shall mean: 

 

	 	(i)	The entity for which the Participant performs services and with respect to which the legally binding right to compensation deferred or contributed under this Plan arises; and 

 

	 	(ii)	All other entities with which the entity described above would be aggregated and treated as a single employer under Code Section 414(b) (controlled group of corporations) and Code Section 414(c) (a group of
trades or businesses, whether or not incorporated, under common control), as applicable. In order to identify the group of entities described in the preceding sentence, the Committee shall use an ownership threshold of at least 50% as a substitute
for the 80% minimum ownership threshold that appears in, and otherwise must be used when applying, the applicable provisions of (A) Code Section 1563 for determining a controlled group of corporations under Code Section 414(b), and
(B) Treas. Reg. §1.414(c)-2 for determining the trades or businesses that are under common control under Code Section 414(c). 

  

	1.25	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time. 

  
 -9- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	1.26	“40l(k) Plan” shall mean the PETCO Animal Supplies 401(k) Plan adopted by the Company, as it may be amended from time to time. 

 

	1.27	“LTIP Amounts” shall mean any portion of the compensation attributable to a Plan Year that is earned by a Participant under any Employer’s long-term incentive plan or any other long-term incentive
arrangement designated by the Committee. 

  

	1.28	“Participant” shall mean any Employee or Director (a) who is selected to participate in the Plan, (b) whose executed Plan Agreement is accepted by the Committee, and (c) whose Plan Agreement has
not terminated. A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan, or have an account balance under the Plan, even if he or she has an interest in the Participant’s benefits under the Plan as a result
of applicable law or property settlements resulting from legal separation or divorce. 

  

	1.29	“Performance-Based Compensation” shall mean compensation the entitlement to or amount of which is contingent on the satisfaction of organizational or individual performance criteria pre-established within the
first 90 days of the performance period and relating to a performance period of at least 12 consecutive months, as determined by the Committee in accordance with Treas. Reg. §1.409A-1(e).

  

	1.30	“Plan” shall mean the PETCO Animal Supplies, Inc. Deferred Compensation Plan II, which shall be evidenced by this instrument, as it may be amended from time to time, and by any other documents that together
with this instrument define a Participant’s rights to amounts credited to his or her Account Balance. 

  

	1.31	“Plan Agreement” shall mean a written agreement in the form prescribed by or acceptable to the Committee that evidences a Participant’s agreement to the terms of the Plan and which may establish
additional terms or conditions of Plan participation for a Participant. Unless otherwise determined by the Committee, the most recent Plan Agreement accepted with respect to a Participant shall supersede any prior Plan Agreements for such
Participant. Plan Agreements may vary among Participants and may provide additional benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan. 

 

	1.32	“Plan Year” shall mean a period beginning on January 1 of each calendar year and ^ continuing through December 31 of such calendar year. 

 

	1.33	 “Retirement,” “Retire(s)” or “Retired” shall mean with respect to a Participant who is an Employee, a Separation from
Service on or after the attainment of age fifty-five (55) with six (6) Years of Service (or, for a Separation from Service before January 1, 2008, on or after the earlier of (i) the attainment of age sixty-five (65), or
(ii) the date that the Participant has at least six (6) Years of Service and the sum of the Participant’s age and Years of Service equals fifty-five (55) or more); and shall mean with respect to a Participant who is a Director, a
Separation from Service. If a Participant is both an Employee and a Director and participates in the Plan in each capacity, (a) the 

  
 -10- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
determination of whether the Participant qualifies for Retirement as an Employee shall be made when the Participant experiences a Separation from Service as an Employee and such determination
shall only apply to the applicable Account Balance established in accordance with Section 1.1 for amounts deferred under the Plan as an Employee, and (b) the determination of whether the Participant qualifies for Retirement as a Director
shall be made at the time the Participant experiences a Separation from Service as a Director and such determination shall only apply to the applicable Account Balance established in accordance with Section 1.1 for amounts deferred under the
Plan as a Director. 

  

	1.34	“Separation from Service” shall mean a termination of services provided by a Participant to his or her Employer, whether voluntarily or involuntarily, other than by reason of death or Disability, as determined
by the Committee in accordance with Treas. Reg. §1.409A-1(h). In determining whether a Participant has experienced a Separation from Service, the following provisions shall apply: 

 

	 	(a)	For a Participant who provides services to an Employer as an Employee, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur when such Participant has experienced a
termination of employment with such Employer. A Participant shall be considered to have experienced a termination of employment when the facts and circumstances indicate that the Participant and his or her Employer reasonably anticipate that either
(i) no further services will be performed for the Employer after a certain date, or (ii) that the level of bona fide services the Participant will perform for the Employer after such date (whether as an Employee or as an independent
contractor) will permanently decrease to no more than 20% of the average level of bona fide services performed by such Participant (whether as an Employee or an independent contractor) over the immediately preceding 36-month period (or the full
period of services to the Employer if the Participant has been providing services to the Employer less than 36 months). 

 If a
Participant is on military leave, sick leave, or other bona fide leave of absence, the employment relationship between the Participant and the Employer shall be treated as continuing intact, provided that the period of such leave does not exceed
6 months, or if longer, so long as the Participant retains a right to reemployment with the Employer under an applicable statute or by contract. If the period of a military leave, sick leave, or other bona fide leave of absence exceeds 6 months
and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship shall be considered to be terminated for purposes of this Plan as of the first day immediately following the end of
such 6-month period. In applying the provisions of this paragraph, a leave of absence shall be considered a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Employer,

  
 -11- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(b)	For a Participant who provides services to an Employer as an independent contractor, except as otherwise provided in part (c) of this Section, a Separation from Service shall occur upon the expiration of the
contract (or in the case of more than one contract, all contracts) under which services are performed for such Employer, provided that the expiration of such contract(s) is determined by the Committee to constitute a good-faith and complete
termination of the contractual relationship between the Participant and such Employer. 

  

	 	(c)	For a Participant who provides services to an Employer as both an Employee and an independent contractor, a Separation from Service generally shall not occur until the Participant has ceased providing services for such
Employer as both as an Employee and as an independent contractor, as determined in accordance with the provisions set forth in parts (a) and (b) of this Section, respectively. Similarly, if a Participant either (i) ceases providing
services for an Employer as an independent contractor and begins providing services for such Employer as an Employee, or (ii) ceases providing services for an Employer as an Employee and begins providing services for such Employer as an
independent contractor, the Participant will not be considered to have experienced a Separation from Service until the Participant has ceased providing services for such Employer in both capacities, as determined in accordance with the applicable
provisions set forth in parts (a) and (b) of this Section. 

 Notwithstanding the foregoing provisions in this part
(c), if a Participant provides services for an Employer as both an Employee and as a Director, to the extent permitted by Treas. Reg. §1.409A-1(h)(5) the services provided by such Participant as a Director shall not be taken into account in
determining whether the Participant has experienced a Separation from Service as an Employee, and the services provided by such Participant as an Employee shall not be taken into account in determining whether the Participant has experienced a
Separation from Service as a Director. 
  

	1.35	“Specified Employee” shall mean any Participant who is determined to be a “key employee” (as defined under Code Section 416(i) without regard to paragraph (5) thereof) of a corporation
whose stock is publicly traded or an affiliate thereof for the applicable period, as determined annually by the Committee in accordance with Treas. Reg. § 1.409A-1 (i). In determining whether a Participant is a Specified Employee, the following
provisions shall apply: 

  

	 	(a)	The Committee’s identification of the individuals who fall within the definition of “key employee” under Code Section 416(i) (without regard to paragraph (5) thereof) shall be based upon the
12-month period ending on each December 31st (referred to below as the “identification date”). In applying the applicable provisions of Code Section 416(i) to identify such individuals, “compensation” shall be
determined in accordance with Treas. Reg. §1.415(c)-2(a) without regard to (i) any safe harbor provided in Treas. Reg. §1.415(c)-2(d), (ii) any of the special timing rules provided in Treas. Reg. §1.415(c)-2(e), and
(iii) any of the special rules provided in Treas. Reg. §1.415(c)-2(g); and 

  
 -12- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(b)	Each Participant who is among the individuals identified as a “key employee” in accordance with part (a) of this Section shall be treated as a Specified Employee for purposes of this Plan if such
Participant experiences a Separation from Service during the 12-month period that begins on the April 1st following the applicable identification date. 

  

	1.36	“Trust” shall mean one or more trusts established by the Company in accordance with Article 15. 

  

	1.37	“Unforeseeable Emergency” shall mean a severe financial hardship of the Participant resulting from (a) an illness or accident of the Participant, the Participant’s spouse, the Participant’s
Beneficiary or the Participant’s dependent (as defined in Code Section 152 without regard to paragraphs (b)(1), (b)(2) and (d)(1)(b) thereof), (b) a loss of the Participant’s property due to casualty, or (c) such other
similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined by the Committee based on the relevant facts and circumstances. 

 

	1.38	“Years of Service” shall mean the total number of full years in which a Participant has been employed by one or more Employers. For purposes of this definition, a year of employment shall be a 365 day period
(or 366 day period in the case of a leap year) that, for the first year of employment, commences on the Employee’s date of hiring and that, for any subsequent year, commences on an anniversary of that hiring date. A partial year of employment
shall not be treated as a Year of Service. 

 ARTICLE 2  

Selection, Enrollment Eligibility 
  

	2.1	Selection by Committee. Participation in the Plan shall be limited to Directors and, as determined by the Committee in its sole discretion, a select group of management or highly compensated Employees.
From that group, the Committee shall select, in its sole discretion, those individuals who may actually participate in this Plan. For purposes of the Plan, the phrase “select group of management or highly compensated employees” shall
include, but not be limited to, those individuals employed as an officer or director of the Employer, all as determined by the Committee. 

  

	2.2	Enrollment and Eligibility Requirements; Commencement of Participation. 

  

	 	(a)	As a condition to participation, each Director or selected Employee shall complete, execute and return to the Committee a Plan Agreement by the deadline(s) established by the Committee in accordance with the applicable
provisions of this Plan. In addition, the Committee shall establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary. 

  
 -13- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(b)	Each Director or selected Employee who is eligible to participate in the Plan shall commence participation in the Plan on the date that the Committee determines that the Director or Employee has met all enrollment
requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee within the specified time period. 

  

	 	(c)	If a Director or an Employee fails to meet all requirements established by the Committee within the period required, that Director or Employee shall not be eligible to participate in the Plan during such Plan Year.

 ARTICLE 3 

Deferral Commitments/Company Contribution Amounts/Company 

Restoration Matching Amounts/ Vesting/Crediting/Taxes 
  

	3.1	Maximum Deferral. 

  

	 	(a)	Annual Deferral Amount. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, Annual Base Salary, Bonus, LTIP Amounts (if permitted by the Committee) and/or Director
Fees (if permitted by the Committee) up to the following maximum percentages for each deferral elected: 

  

									
	 Deferral
	  	Minimum
Amount	 	  	Maximum
Percentage	 
	 Annual Base Salary
	  	 	N/A	  	  	 	75	% 
	 Bonus
	  	 	N/A	  	  	 	100	% 
	 LTIP Amounts
	  	 	N/A	  	  	 	100	% 
	 Combined Annual Base Salary and Bonus
	  	$	1,500	  	  	 	N/A	  
	 Director Fees
	  	$	1,500	  	  	 	100	% 

 If an election is made for less than stated minimum amounts, or if no election, is made, the amount deferred
shall be zero. 
  

	 	(b)	Annual 401 (k) Refund Offset Amount. For each Plan Year, a Participant may elect to defer his or her Annual 401(k) Refund Offset Amount. If a Participant elects to defer his or her Annual 401(k)
Offset Refund Amount, the minimum deferral amount shall be 100%. If no election is made or if the actual amount of the forced reduction in a Participant’s 401 (k) deferrals for such Plan Year, after any rounding required by
Section 1.5 is less than one percent (1%) of Annual Base Salary, the amount deferred shall be zero, 

  
 -14- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(c)	Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, then subject to Section 3.2 and Code Section 409A and related
Treasury Regulations, the maximum amount of the Participant’s Annual Base Salary, Bonus, LTIP Amounts or Director Fees that may be deferred by the Participant for the Plan Year shall be determined by applying the percentages set forth in
Section 3.1(a) to the portion of such compensation attributable to services performed after the date that the Participant’s deferral election is made. For example, if a Participant is first eligible to become a Participant on July 1,
and makes an election to defer Annual Base Salary on July 15, then the maximum amount of Annual Base Salary that the Participant may defer for that Plan Year is 75% of Annual Base Salary for services performed after the election is made. The
minimum deferral amount ($1,500) will be divided by the number of required payroll periods from the date the Participant is first eligible to become a Participant through the end of the year to determine the minimum deferral amount for each payroll
period. 

  

	3.2	Timing of Deferral Elections: Effect of Election Form. 

  

	 	(a)	General Timing Rule for Deferral Elections. Except as otherwise provided in this Section 3.2, in order for a Participant to make a valid election to defer Annual Base Salary, Bonus, Annual
401(k) Refund Offset Amount, Director Fees and/or LTIP Amounts, the Participant must submit an Election Form on or before the deadline established by the Committee, which in no event shall be later than the December 31st preceding the Plan Year
in which the services with respect to which such compensation is attributable will be performed. 

 Any deferral election made
in accordance with this Section 3.2(a) shall be irrevocable; provided, however, that if the Committee permits or requires Participants to make a deferral election by the deadline described above for an amount that qualifies as Performance-Based
Compensation, the Committee may permit a Participant to subsequently change his or her deferral election for such compensation by submitting a new Election Form in accordance with Section 3.2(d) below. 

 

	 	(b)	Timing of Deferral Elections for Newly Eligible Plan Participants. A Director or selected Employee who first becomes eligible to participate in the Plan on or after the beginning of a Plan Year, as
determined in accordance with Treas. Reg. § 1.409A-2(a)(7)(ii) and the “plan aggregation” rules provided in Treas. Reg. §1.409A-l(c)(2), may be permitted to make an election to
defer the portion of Annual Base Salary, Bonus, Director Fees and/or LTEP Amounts attributable to services to be performed after such election, provided that the Participant submits an Election Form on or before the deadline established by the
Committee, which in no event shall be later than 30 days after the Participant first becomes eligible to participate in the Plan. 

  
 -15- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 
If a deferral election made in accordance with this Section 3.2(b) relates to compensation earned based upon a specified performance period, the amount eligible for deferral shall be equal
to (i) the total amount of compensation for the performance period, multiplied by (ii) a fraction, the numerator of which is the number of days remaining in the service period after the Participant’s deferral election is made, and the
denominator of which is the total number of days in the performance period. 
 Any deferral election made in accordance with this
Section 3.2(b) shall become irrevocable no later than the 30th day after the date the Director or selected Employee becomes eligible to participate in the Plan. 
  

	 	(c)	Timing of Deferral Elections for Fiscal Year Compensation. In the event that the tax year of an Employer is different than the taxable year of a Participant, the Committee may determine that a
deferral election may be made for “fiscal year compensation” (as defined below), by submitting an Election Form on or before the deadline established by the Committee, which in no event shall be later than the last day of the
Employer’s tax year immediately preceding the tax year in which the services related to such compensation will begin to be performed. For purposes of this Section, the term “fiscal year compensation” shall only include Bonus and LTIP
Amounts relating to a service period coextensive with one or more consecutive tax years of the Employer, of which no amount is paid or payable during the Employer’s tax year(s) that constitute the service period. 

A deferral election made in accordance with this Section 3.2(c) shall be irrevocable; provided, however, that if the Committee permits or
requires Participants to make a deferral election by the deadline described in this Section 3.2(c) for an amount that qualifies as Performance-Based Compensation, the Committee may permit a Participant to subsequently change his or her deferral
election for such compensation by submitting a new Election Form in accordance with 3.2(d) below. 
  

	 	(d)	Timing of Deferral Elections for Performance-Based Compensation. Subject to the limitations described below, the Committee may determine that an irrevocable deferral election for an amount that qualifies
as Performance-Based Compensation may be made by submitting an Election Form on or before the deadline established by the Committee, which in no event shall be later than 6 months before the end of the performance period. 

In order for a Participant to be eligible to make a deferral election for Performance-Based Compensation in accordance with the deadline
established pursuant to this Section 3.2(d), the Participant must have performed services continuously from the later of (i) the beginning of the performance period for such compensation, or (ii) the date upon which the performance
criteria for such compensation are established, through the date upon which the Participant makes the deferral election for such compensation. In no event shall a deferral election submitted under this Section 3.2(d) be permitted to apply to
any amount of Performance-Based Compensation that has become readily ascertainable. 

  
 -16- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(e)	Timing Rule for Deferral of Compensation Subject to Risk of Forfeiture. With respect to compensation (i) to which a Participant has a legally binding right to payment in a subsequent year, and
(ii) that is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least 12 months from the date the Participant obtains the legally binding right, the Committee may determine that an
irrevocable deferral election for such compensation may be made by timely delivering an Election Form to the Committee in accordance with its rules and procedures, no later than the 30th day after the Participant obtains the legally binding right to
the compensation, provided that the election is made at least 12 months in advance of the earliest date at which the forfeiture condition could lapse, as determined in accordance with Treas.
Reg. § 1.409A-2(a)(5). 

 Any deferral election(s) made in accordance
with this Section 3.2(e) shall become irrevocable no later than the 30th day after the Participant obtains the legally binding right to the compensation subject to such deferral election(s). 

 

	 	(f)	Effect of Deferral Election. A Participant’s election to defer Annual Base Salary, Bonus, Annual 401 (k) Refund Offset Amount, Director Fees and/or LTIP Amounts shall not expire at the end of the
Plan Year to which the deferral election initially relates, but rather shall remain in effect for each subsequent Plan Year unless modified in accordance with this Section 3.2(f), provided that the Participant affirmatively confirms that such
deferral election shall remain in effect by delivering a form in accordance with the Committee’s rules and procedures on or before the deadline established by the Committee for new Election Forms in accordance with the applicable provisions of
this Section 3.2. In the absence of such confirmation, the election shall expire at the end of the Plan Year to which the deferral election relates. In order for a participant to make a valid modification to a deferral election, the Participant
must timely deliver a new Election Form to the Committee, in accordance with its rules and procedures, on or before the deadline established by the Committee in accordance with the applicable provisions of this Section 3.2. 

 

	3.3	Withholding and Crediting of Annual Deferral Amounts. For each Plan Year, the Annual Base Salary portion of the Annual Deferral Amount shall be withheld from each regularly scheduled Annual Base
Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Annual Base Salary. The Bonus, LTIP Amounts and/or Director Fees portion of the Annual Deferral Amount shall be withheld at the time the Bonus, LTIP
Amounts or Director Fees are or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. The Participant’s Annual 401(k) Refund Offset Amount, if any, shall be withheld on a prorated basis from

  
 -17- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 
each regularly scheduled Annual Base Salary payroll period remaining in the Plan Year, commencing with the first Annual Base Salary payroll period, or as soon as administratively practical,
following the Participant’s receipt of a forced refund of his or her prior year 401(k) deferrals. Annual Deferral Amounts shall be credited to the Participant’s Annual Account for such Plan Year at the time such amounts would otherwise
have been paid to the Participant, 
  

	3.4	CEO Discretionary Award Amount. For each Plan Year, and at any time during a Plan Year, an Employer, in its sole discretion may, but is not required to, credit any amount it desires, subject to approval by
the Company’s Board, to any Participant’s CEO Discretionary Award Account under this Plan, subject to compliance with Section 409A of the Code. The amount so credited to a Participant may be smaller or larger than the amount credited
to any other Participant, and the amount credited to any Participant for a Plan Year may be zero, even though one or more other Participants may receive a CEO Discretionary Award Amount for that Plan Year. The Discretionary Award Amount, if any,
shall be credited as of the date the Employer presents the Discretionary Award to the Participant. 

  

	3.5	Annual Company Matching Amount. 

  

	 	(a)	A Participant’s Annual Company Matching Amount for any Plan Year shall be equal to the sum of: 

  

	 	(i)	50% of the portion of the Participant’s Annual Deferral Amount that consists of Annual Base Salary for that Plan Year, but not in excess of 1.5% of the Participant’s Annual Base Salary for that Plan Year; plus

  

	 	(ii)	50% of the portion of the Participant’s Annual Deferral Amount that consists of the Bonus for that Plan Year, but not in excess of 3% of the Participant’s Bonus for that Plan Year. 

 

	 	(b)	If a Participant is not eligible to participate in the 401(k) Plan during all or a portion of a Plan Year, the portion of the Participant’s Annual Company Matching Amount determined under subparagraph (a)(i) above
for that Plan Year shall be equal to the sum of: 

  

	 	(i)	50% of the portion of the Participant’s Annual Deferral Amount that consists of Annual Base Salary for the portion of the Plan Year during which the Participant is not eligible to participate in the 401(k) Plan,
but not in excess of 3% of the Participant’s Annual Base Salary for such portion of the Plan Year; plus 

  

	 	(ii)	50% of the portion of the Participant’s Annual Deferral Amount that consists of Annual Base Salary for the portion of the Plan Year during which the Participant is eligible to participate in the 401(k) Plan, but
not in excess of 1.5% of the Participant’s Annual Base Salary for such portion of the Plan Year. 

  
 -18- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(c)	Notwithstanding the foregoing, if a Participant is not employed by the Employer, or is no longer providing services as a Director, as of the last day of a Plan Year other than by reason of his or her (a) retirement
on or after the earlier of (i) the attainment of age sixty-five (65), or (ii) the date that the Participant has at least six (6) Years of Service and the sum of the Participant’s age and Years of Service equals fifty-five
(55) or more, (b) Disability, (c) death or (d) Separation from Service in a Plan Year during which there is a Change in Control, the Annual Company Matching Amount for such plan shall be zero. The Participant’s Annual
Company Matching Amount shall be credited to his or her Company Matching Account as of the close of business on the first business day in February of the Plan Year following the Plan Year to which it relates. 

 

	3.6	Vesting. 

  

	 	(a)	A Participant shall at all times be 100% vested in the portion of his or her Account Balance attributable to Annual Deferral Amounts, plus amounts credited or debited on such amounts pursuant to Section 3.7.

  

	 	(b)	A Participant shall be vested in his or her CEO Discretionary Award Account as follows: (i) with respect to all benefits under this Plan other than the Termination Benefit, a Participant’s vested CEO
Discretionary Award Account shall equal 100% of such Participant’s CEO Discretionary Award Account; and (ii) with respect to the Termination Benefit, the Participant shall vest in each of his or her CEO Discretionary Award Amounts, and
earnings or losses credited or debited thereon, on the earliest of: (x) a date selected by the Chief Executive Officer of the Company; (y) the third (3rd) anniversary of the date such Discretionary Award Amount was first credited to
his or her Discretionary Award Account, or (z) the earlier of (1) the attainment of age sixty-five (65), or (2) the date that the Participant has at least six (6) Years of Service and the sum of the Participant’s age and
Years of Service equals fifty-five (55) or more. Notwithstanding anything to the contrary contained in this Section 3.6, in the event of a Change in Control, a Participant’s CEO Discretionary Award Account shall immediately become
100% vested (if it is not already vested in accordance with the above vesting schedules). 

  

	 	(c)	A Participant shall at all times be 100% vested in his or her Company Matching Account 

Notwithstanding Section 3.6 and subsections 3.7(d), the vesting schedule for a Participant’s CEO Discretionary Award Account shall
not be accelerated to the extent that the Committee determines that such acceleration would cause the deduction limitations of Section 280G of the Code to become effective. In the event that all of a Participant’s CEO Discretionary Award
Account is not vested 

  
 -19- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
pursuant to such a determination, the Participant may request independent verification of the Committee’s calculations with respect to the application of Section 280G. In such case, the
Committee must provide to the Participant within 15 business days of such a request an opinion from a nationally recognized accounting firm selected by the Company (the “Accounting Firm”). The opinion shall state the Accounting Firm’s
opinion that any limitation in the vested percentage hereunder is necessary to avoid the limits of Section 280G and contain supporting calculations. The cost of such opinion shall be paid for by the Company. 

Notwithstanding anything to the contrary contained in this Plan if a Participant admits to, is convicted of or pleads no contest to
embezzlement or theft of company assets or property such Participant shall forfeit all or a portion of his or her Account Balance as determined by the Company in its sole discretion. 

 

	 	(d)	In the event of such a determination, the Participant may request independent verification of the Committee’s calculations with respect to the application of Section 280G. In such case, the Committee must
provide to the Participant within 90 days of such a request an opinion from a nationally recognized accounting firm selected by the Participant (the “Accounting Firm”). The opinion shall state the Accounting Firm’s opinion that any
limitation in the vested percentage hereunder is necessary to avoid the limits of Section 280G and contain supporting calculations. The cost of such opinion shall be paid for by the Company. 

 

	3.7	Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, in its sole discretion, amounts shall be
credited or debited to a Participant’s Account Balance in accordance with the following rules: 

  

	 	(a)	Measurement Funds. The Participant may elect one or more of the measurement funds selected by the Committee, in its sole discretion, which are based on certain mutual funds (the “Measurement
Funds”), for the purpose of crediting or debiting additional amounts to his or her Account Balance. As necessary, the Committee may, in its sole discretion, discontinue, substitute or add a Measurement Fund. Each such action will take effect as
of the first day of the first calendar quarter that begins at least 30 days after the day on which the Committee gives Participants advance written notice of such change. 

 

	 	(b)	 Election of Measurement Funds. A Participant, in connection with his or her initial deferral election in accordance with
Section 3.2 above, shall elect, on the Election Form, one or more Measurement Fund(s) (as described in Section 3.7(a) above) to be used to determine the amounts to be credited or debited to his or her Account Balance. If a Participant does
not elect any of the Measurement Funds as described in the previous sentence, the Participant’s Account Balance shall automatically be allocated into the lowest-risk Measurement Fund, as determined

  
 -20- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
by the Committee, in its sole discretion. The Participant may (but is not required to) elect, by submitting an Election Form to the Committee that is accepted by the Committee, to add or delete
one or more Measurement Fund(s) to be used to determine the amounts to be credited or debited to his or her Account Balance, or to change the portion of his or her Account Balance allocated to each previously or newly elected Measurement Fund. If an
election is made in accordance with the previous sentence, it shall apply as of the first business day deemed reasonably practicable by the Committee, in its sole discretion, and shall continue thereafter for each subsequent day in which the
Participant participates in the Plan, unless changed in accordance with the previous sentence. Notwithstanding the foregoing, the Committee, in its sole discretion, may impose limitations on the frequency with which one or more of the Measurement
Funds elected in accordance with this Section 3.7(b) may be added or deleted by such Participant; furthermore, the Committee, in its sole discretion, may impose limitations on the frequency with which the Participant may change the portion of
his or her Account Balance allocated to each previously or newly elected Measurement Fund. 

  

	 	(c)	Proportionate Allocation. In making any election described in Section 3.7(b) above, the Participant shall specify on the Election Form, in increments of one percent (1%), the percentage of his or her
Account Balance or Measurement Fund, as applicable, to be allocated/reallocated. 

  

	 	(d)	Crediting or Debiting Method. The performance of each Measurement Fund (either positive or negative) will be determined on a daily basis based on the manner in which such Participant’s Account Balance
has been hypothetically allocated among the Measurement Funds by the Participant. 

  

	 	(e)	No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant’s
election of any such Measurement Fund, the allocation of his or her Account Balance thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant’s Account Balance shall not be considered or
construed in any manner as an actual investment of his or her Account Balance in any such Measurement Fund. In the event that the Company or the Trustee (as that term is defined in the Trust), in its own discretion, decides to invest funds in any or
all of the investments on which the Measurement Funds are based, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant’s Account Balance shall at all times be a bookkeeping
entry only and shall not represent any investment made on his or her behalf by the Company or the Trust; the Participant shall at all times remain an unsecured creditor of the Company. 

  
 -21- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	3.8	FICA and Other Taxes. 

  

	 	(a)	Annual Deferral Amounts. For each Plan Year in which an Annual Deferral Amount is being withheld from a Participant, the Participant’s Employer(s) shall withhold from that portion of the
Participant’s Annual Base Salary, Bonus and/or LTIP Amount that is not being deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other employment taxes on such Annual Deferral Amount. If necessary, the
Committee may reduce the Annual Deferral Amount in order to comply with this Section 3.8. 

  

	 	(b)	Company Matching Amounts and CEO Discretionary Award Amounts. When a Participant becomes vested in a portion of his or her Company Matching Account and/or CEO Discretionary Award Amount, the
Participant’s Employees) shall withhold from that portion of the Participant’s Annual Base Salary, Bonus, and/or LTIP Amounts that is not deferred, in a manner determined by the Employer(s), the Participant’s share of FICA and other
employment taxes on such amounts. If necessary, the Committee may reduce the vested portion of the Participant’s Company Matching Amount or CEO Discretionary Award Amount, as applicable, in order to comply with this Section 3.8.

  

	 	(c)	Distributions. The Participant’s Employer(s), or the trustee of the Trust, shall withhold from any payments made to a Participant under this Plan all federal, state and local income, employment and
other taxes required to be withheld by the Employer(s), or the trustee of the Trust, in connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Employer(s) and the trustee of the Trust.

 ARTICLE 4 

Scheduled Distribution; Unforeseeable Emergencies 
  

	4.1	Scheduled Distributions. In connection with each election to defer an Annual Deferral Amount, a Participant may elect to receive all or a portion of such Annual Deferral Amount, plus amounts credited or
debited on that amount pursuant to Section 3.7, in the form of a lump sum payment, calculated as of the close of business on or around the Benefit Distribution Date designated by the Participant in accordance with this Section (a
“Scheduled Distribution”). The Benefit Distribution Date for the amount subject to a Scheduled Distribution election shall be the first day of any Plan Year designated by the Participant, which may be no sooner than two (2) Plan Years
after the end of the Plan Year to which the Participant’s deferral election relates (which, in the case of a “fiscal year compensation” deferral election, shall for all Plan purposes be the Plan Year in which the Employer’s tax
year starts), unless otherwise provided on an Election Form approved by the Committee. 

 Subject to the other terms and
conditions of this Plan, each Scheduled Distribution elected shall be paid out during a sixty (60) day period commencing immediately after 

  
 -22- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 
the Benefit Distribution Date. By way of example, if a Scheduled Distribution is elected for Annual Deferral Amounts that are earned for services performed in the Plan Year commencing
January 1, 2008, the earliest Benefit Distribution Date that may be designated by a Participant would be January 1, 2011 and if that date were designated by the Participant, the Scheduled Distribution would be paid out during the 60 day
period commencing immediately after such Benefit Distribution Date. 
  

	4.2	Postponing Scheduled Distributions. A Participant may elect to postpone a Scheduled Distribution described in Section 4.1 above, and have such amount paid out during a 60 day period commencing
immediately after an allowable alternative Benefit Distribution Date designated in accordance with this Section 4.2. In order to make such an election, the Participant must submit an Election Form to the Committee in accordance with the
following criteria: 

  

	 	(a)	The election of the new Benefit Distribution Date shall have no effect until at least 12 months after the date on which the election is made; 

 

	 	(b)	The new Benefit Distribution Date selected by the Participant for such Scheduled Distribution must be the first day of a Plan Year that is no sooner than 5 years after the previously designated Benefit Distribution
Date; and 

  

	 	(c)	The election must be made at least 12 months prior to the Participant’s previously designated Benefit Distribution Date for such Scheduled Distribution. 

For purposes of applying the provisions of this Section 4.2, a Participant’s election to postpone a Scheduled Distribution shall not
be considered to be made until the date on which the election becomes irrevocable. Such an election shall become irrevocable no later than the date that is 12 months prior to the Participant’s previously designated Benefit Distribution Date for
such Scheduled Distribution. 
  

	4.3	Other Benefits Take Precedence Over Scheduled Distributions. Should an event occur prior to any Benefit Distribution Date designated for a Scheduled Distribution that would trigger a benefit under Articles
5 through 8, as applicable, all amounts subject to a Scheduled Distribution election shall be paid in accordance with the other applicable provisions of the Plan and not in accordance with this Article 4. 

 

	4.4	Unforeseeable Emergencies. 

  

	 	(a)	 If a Participant experiences an Unforeseeable Emergency prior to the occurrence of a distribution event described in Articles 5 through 8, as
applicable, the Participant may petition the Committee to receive a partial or full payout from the Plan. The payout, if any, from the Plan shall not exceed the lesser of (i) the Participant’s vested Account Balance, calculated as of the
close of business on or around the Benefit Distribution Date for such payout, as determined by the Committee in accordance with provisions set forth below, or (ii) the amount 

  
 -23- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
necessary to satisfy the Unforeseeable Emergency, plus amounts necessary to pay Federal, state, or local income taxes or penalties reasonably anticipated as a result of the distribution. A
Participant shall not be eligible to receive a payout from the Plan to the extent that the Unforeseeable Emergency is or may be relieved (A) through reimbursement or compensation by insurance or otherwise, (B) by liquidation of the
Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship or (C) by cessation of deferrals under this Plan. 

If the Committee, in its sole discretion, approves a Participant’s petition for payout from the Plan, the Participant’s Benefit
Distribution Date for such payout shall be the date on which such Committee approval occurs and such payout shall be distributed to the Participant in a lump sum no later than 60 days after such Benefit Distribution Date. In addition, in the event
of such approval the Participant’s outstanding deferral elections under the Plan shall be cancelled. 
  

	 	(b)	A Participant’s deferral elections under this Plan shall also be cancelled to the extent the Committee determines that such action is required for the Participant to obtain a hardship distribution from an
Employer’s 401(k) Plan pursuant to Treas. Reg. § 1.401 (k)-1 (d)(3). 

 ARTICLE 5 

Retirement Benefit 
  

	5.1	Retirement Benefit. If a Participant experiences a Separation from Service that qualifies as a Retirement, the Participant shall be eligible to receive his or her vested Account Balance in either a lump
sum or annual installment payments, as elected by the Participant in accordance with Section 5.2 (the “Retirement Benefit”). A Participant’s Retirement Benefit shall be calculated as of the close of business on or around the
applicable Benefit Distribution Date for such benefit, which shall be (i) the first day after the six-month anniversary of the date on which the Participant experiences such Separation from Service or, if earlier, the Participant’s death,
if the Participant is a Specified Employee and the Committee determines that such delay is required to avoid a violation of Section 409A, and (ii) for all other Participants, the date on which the Participant experiences a Separation from
Service; provided, however, if a Participant changes the form of distribution for the Retirement Benefit in accordance with Section 5.2(b), the Benefit Distribution Date for the Retirement Benefit shall be determined in accordance with Section
5.2(b). 

  

	5.2	Payment of Retirement Benefit. 

  

	 	(a)	A Participant, in connection with his or her commencement of participation in the Plan, shall elect on an Election Form to receive the Retirement Benefit in a lump sum or pursuant to an Annual Installment Method ranging
from 2 to 10 years. If a Participant does not make any election with respect to the payment of the Retirement Benefit, then such Participant shall be deemed to have elected to receive the Retirement Benefit as a lump sum. 

  
 -24- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	(b)	A Participant may change the form of payment for the Retirement Benefit by submitting an Election Form to the Committee in accordance with the following criteria: 

 

	 	(i)	The election shall not take effect until at least 12 months after the date on which the election is made; 

  

	 	(ii)	The new Benefit Distribution Date for the Participant’s Retirement Benefit shall be 5 years after the Benefit Distribution Date that would otherwise have been applicable to such benefit; and 

 

	 	(iii)	The election must be made at least 12 months prior to the Benefit Distribution Date that would otherwise have been applicable to the Participant’s Retirement Benefit. 

For purposes of applying the provisions of this Section 5.2(b), a Participant’s election to change the form of payment for the
Retirement Benefit shall not be considered to be made until the date on which the election becomes irrevocable. Such an election shall become irrevocable no later than the date that is 12 months prior to the Benefit Distribution Date that would
otherwise have been applicable to the Participant’s Retirement Benefit. Subject to the requirements of this Section 5.2(b), the Election Form most recently accepted by the Committee that has become effective shall govern the form of payout
of the Participant’s Retirement Benefit. 
  

	 	(c)	The lump sum payment shall be made, or installment payments shall commence, no later than 60 days after the Participant’s Benefit Distribution Date. Remaining installments, if any, shall be paid no later than 60
days after each anniversary of the Participant’s Benefit Distribution Date. 

 ARTICLE 6 

Termination Benefit 
  

	6.1	Termination Benefit. If a Participant experiences a Separation from Service that does not qualify as a Retirement, the Participant shall receive his or her vested Account Balance in the form of a
lump sum payment (the “Termination Benefit”). A Participant’s Termination Benefit shall be calculated as of the close of business on or around the Benefit Distribution Date for such benefit, which shall be (i) the date on which
the Participant experiences a Separation from Service, or (ii) if the Participant is a Specified Employee and the Committee determines that such delay is required to avoid a violation of Section 409A, the first day after the six-month
anniversary of the date on which the Participant experiences such Separation from Service or, if earlier, the Participant’s death. 

  
 -25- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	6.2	Payment of Termination Benefit. The Termination Benefit shall be paid to the Participant no later than 60 days after the Participant’s Benefit Distribution Date. 

ARTICLE 7 
 Disability
Benefit 
  

	7.1	Disability Benefit. If a Participant becomes Disabled prior to the occurrence of a distribution event described in Articles 5 through 6, as applicable, the Participant shall receive his or her vested
Account Balance in the form of a lump sum payment (the “Disability Benefit”). The Disability Benefit shall be calculated as of the close of business on or around the Participant’s Benefit Distribution Date for such benefit, which
shall be the date on which the Participant becomes Disabled. 

  

	7.2	Payment of Disability Benefit. The Disability Benefit shall be paid to the Participant no later than 60 days after the Participant’s Benefit Distribution Date. 

ARTICLE 8 
 Death
Benefit 
  

	8.1	Death Benefit. In the event of a Participant’s death prior to the complete distribution of his or her vested Account Balance, the Participant’s Beneficiary(ies) shall receive the
Participant’s unpaid vested Account Balance in a lump sum payment (the “Death Benefit”). The Death Benefit shall be calculated as of the close of business on or around the Benefit Distribution Date for such benefit, which shall be the
date of the Participant’s death. 

  

	8.2	Payment of Death Benefit. The Death Benefit shall be paid to the Participant’s Beneficiary(ies) no later than 60 days after the Participant’s Benefit Distribution Date. 

ARTICLE 9 

Beneficiary Designation 
  

	9.1	Beneficiary. Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan to a
beneficiary upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates. 

 

	9.2	 Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her Beneficiary by completing and signing the
Beneficiary Designation Form, and returning it to the Committee or its designated agent. A Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of

  
 -26- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 
the Beneficiary Designation Form and the Committee’s rules and procedures, as in effect from time to time. If the Participant names someone other than his or her spouse as a Beneficiary, the
Committee may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Committee, executed by such Participant’s spouse and returned to the Committee. Upon the acceptance by the Committee of
a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The Committee shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his
or her death. 
  

	9.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Committee or its designated agent. 

 

	9.4	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all designated Beneficiaries predecease the Participant or die prior to
complete distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits remaining under the Plan to be
paid to a Beneficiary shall be payable to the executor or personal representative of the Participant’s estate. 

  

	9.5	Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee shall have the right, exercisable in its discretion, to cause
the Participant’s Employer to withhold such payments until this matter is resolved to the Committee’s satisfaction. 

  

	9.6	Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Committee from all further obligations under this Plan with
respect to the Participant, and that Participant’s Plan Agreement shall terminate upon such full payment of benefits. 

ARTICLE 10 
 Leave of
Absence 
  

	10.1	Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take a paid leave of absence from the employment of the Employer, and such leave of absence does not constitute a
Separation from Service, (a) the Participant shall continue to be considered eligible for the benefits provided under the Plan, and (b) the Annual Deferral Amount shall continue to be withheld during such paid leave of absence in
accordance with Section 3.2. 

  

	10.2	 Unpaid Leave of Absence. If a Participant is authorized by the Participant’s Employer to take an unpaid leave of absence from the
employment of the Employer for any reason, and such leave of absence does not constitute a Separation from Service, such Participant 

  
 -27- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 
shall continue to be eligible for the benefits provided under the Plan. During the unpaid leave of absence, the Participant shall not be allowed to make any additional deferral elections.
However, if the Participant returns to employment, the Participant may elect to defer an Annual Deferral Amount for the Plan Year following his or her return to employment and for every Plan Year thereafter while a Participant in the Plan, provided
such deferral elections are otherwise allowed and an Election Form is delivered to and accepted by the Committee for each such election in accordance with Section 3.2 above. 

ARTICLE 11 

Termination of Plan, Amendment or Modification 
  

	11.1	Termination of Plan. Although each Employer anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that any Employer will continue the Plan or will not terminate
the Plan at any time in the future. Accordingly, each Employer reserves the right to terminate the Plan with respect to all of its Participants. In the event of a Plan termination no new deferral elections shall be permitted for the affected
Participants and such Participants shall no longer be eligible to receive new company contributions. However, after the Plan termination the Account Balances of such Participants shall continue to be credited with Annual Deferral Amounts
attributable to a deferral election that was in effect prior to the Plan termination to the extent deemed necessary to comply with Code Section 409A and related Treasury Regulations, and additional amounts shall continue to credited or debited
to such Participants’ Account Balances pursuant to Section 3.7. The Measurement Funds available to Participants following the termination of the Plan shall be comparable in number and type to those Measurement Funds available to
Participants in the Plan Year preceding the Plan Year in which the Plan termination is effective. In addition, following a Plan termination, Participant Account Balances shall remain in the Plan and shall not be distributed until such amounts become
eligible for distribution in accordance with the other applicable provisions of the Plan. Notwithstanding the preceding sentence, to the extent permitted by Section 409A, the Employer may provide that upon termination of the Plan, all Account
Balances of the Participants shall be distributed, subject to and in accordance with any rules established by such Employer deemed necessary to comply with the applicable requirements and limitations of Section 409A. 

 

	11.2	Amendment. Any Employer may, at any time, amend or modify the Plan in whole or in part with respect to that Employer. Notwithstanding the foregoing, (i) no amendment or modification shall be effective
to decrease the amount of a Participant’s vested Account ‘Balance in existence at the time the amendment or modification is made, and (ii) no amendment or modification of this Section 11.2 or Section 12.2 of the Plan shall
be effective unless and until two-thirds (2/3) of Participants with an Account Balance in the Plan as of the date of such proposed amendment or modification provide prior written consent in a time and manner determined by the Committee.

  
 -28- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	11.3	Plan Agreement. Despite the provisions of Sections 11.1, if a Participant’s Plan Agreement contains benefits or limitations that are not in this Plan document, the Employer may only amend or terminate
such provisions with the written consent of the Participant. 

  

	11.4	Effect of Payment. The full payment of the Participant’s vested Account Balance in accordance with the applicable provisions of the Plan shall completely discharge all obligations to a Participant and
his or her designated Beneficiaries under this Plan, and the Participant’s Plan Agreement shall terminate. 

 ARTICLE
12 
 Administration 
  

	12.1	Committee Duties. Except as otherwise provided in this Article 12, this Plan shall be administered by a Committee, which shall consist of the Board, or such committee as the Board shall appoint. Members of
the Committee may be Participants under this Plan. The Committee shall also have the discretion and authority to (a) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan, and
(b) decide or resolve any and all questions, including benefit entitlement determinations and interpretations of this Plan, as may arise in connection with the Plan. Any individual serving on the Committee who is a Participant shall not vote or
act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a Participant or the Company. 

 

	12.2	Administration Upon Change In Control. Within 120 days following a Change in Control, the individuals who comprised the Committee immediately prior to the Change in Control (whether or not such individuals
are members of the Committee following the Change in Control) may, by written consent of the majority of such individuals, appoint an independent third party administrator (the “Administrator”) to perform any or all of the Committee’s
duties described in Section 12.1 above, including without limitation, the power to determine any questions arising in connection with the administration or interpretation of the Plan, and the power to make benefit entitlement determinations.
Upon and after the effective date of such appointment, (a) the Company must pay all reasonable administrative expenses and fees of the Administrator, and (b) the Administrator may only be terminated with the written consent of the majority
of Participants with an Account Balance in the Plan as of the date of such proposed termination. 

  

	12.3	Agents. In the administration of this Plan, the Committee or the Administrator, as applicable, may, from time to time, employ agents and delegate to them such administrative duties as it sees fit
(including acting through a duly appointed representative) and may from time to time consult with counsel. 

  

	12.4	 Binding Effect of Decisions. The decision or action of the Committee or Administrator, as applicable, with respect to any question
arising out of or in connection with the 

  
 -29- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in
the Plan. 

  

	12.5	Indemnity of Committee. All Employers shall indemnify and hold harmless the members of the Committee, any Employee to whom the duties of the Committee may be delegated, and the Administrator against any
and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members, any such Employee or the Administrator.

  

	12.6	Employer Information. To enable the Committee and/or Administrator to perform its functions, the Company and each Employer shall supply full and timely information to the Committee and/or Administrator, as
the case may be, on all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the Participants, the compensation of its Participants, the date and circumstances of the Separation from Service,
Disability or death .of its Participants, and such other pertinent information as the Committee or Administrator may reasonably require. 

ARTICLE 13 
 Other
Benefits and Agreements 
  

	13.1	Coordination with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits available to such Participant under any
other plan or program for employees of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided. 

ARTICLE 14 
 Claims
Procedures 
  

	14.1	Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written
claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 60 days after such notice was
received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

  

	14.2	 Notification of Decision. The Committee shall consider a Claimant’s claim within a reasonable time, but no later than 90 days
after receiving the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial
90 day period. In no event shall such extension exceed a period 

  
 -30- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
of 90 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee expects to
render the benefit determination. The Committee shall notify the Claimant in writing: 

  

	 	(a)	that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or 

  

	 	(b)	that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

  

	 	(i)	the specific reason(s) for the denial of the claim, or any part of it; 

  

	 	(ii)	specific reference(s) to pertinent provisions of the Plan upon which such denial was based; 

  

	 	(iii)	a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; 

 

	 	(iv)	an explanation of the claim review procedure set forth in Section 14.3 below; and 

  

	 	(v)	a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 

 

	14.3	Review of a Denied Claim. On or before 60 days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized
representative) may file with the Committee a written request for a review of the denial of the claim. The Claimant (or the Claimant’s duly authorized representative): 

 

	 	(a)	may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claim for benefits;

  

	 	(b)	may submit written comments or other documents; and/or 

  

	 	(c)	may request a hearing, which the Committee, in its sole discretion, may grant. 

  

	14.4	 Decision on Review. The Committee shall render its decision on review promptly, and no later than 60 days after the Committee
receives the Claimant’s written request for a review of the denial of the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to
the Claimant prior to the termination of the initial 60 day period. In no 

  
 -31- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
event shall such extension exceed a period of 60 days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the
date by which the Committee expects to render the benefit determination. In rendering its decision, the Committee shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain: 

 

	 	(a)	specific reasons for the decision; 

  

	 	(b)	specific reference(s) to the pertinent Plan provisions upon which the decision was based; 

  

	 	(c)	a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant (as defined in applicable ERISA
regulations) to the Claimant’s claim for benefits; and 

  

	 	(d)	a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a). 

  

	14.5	Legal Action. A Claimant’s compliance with the foregoing provisions of this Article 14 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any
claim for benefits under this Plan. 

 ARTICLE 15 

Trust 
  

	15.1	Establishment of the Trust. In order to provide assets from which to fulfill its obligations to the Participants and their Beneficiaries under the Plan, the Company may establish a trust by a trust
agreement with a third party, the trustee, to which each Employer may, in its discretion, contribute cash or other property, including securities issued by the Company, to provide for the benefit payments under the Plan (the “Trust”).

  

	15.2	Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan Agreement shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the
Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust. Each Employer shall at all times remain liable to carry out its obligations under the Plan. 

 

	15.3	Distributions From the Trust. Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the
Employer’s obligations under this Plan. 

  
 -32- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

 ARTICLE 16 

Miscellaneous 
  

	16.1	Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer primarily for the purpose
of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be administered and interpreted (a) to the
extent possible in a manner consistent with the intent described in the preceding sentence, and (b) in accordance with Code Section 409A and related Treasury guidance and Regulations. 

 

	16.2	Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer. For
purposes of the payment of benefits under this Plan, any and all of an Employer’s assets shall be, and remain, the general, unpledged unrestricted assets of the Employer. An Employer’s obligation under the Plan shall be merely that of an
unfunded and unsecured promise to pay money in the future. 

  

	16.3	Employer’s Liability. An Employer’s liability for the payment of benefits shall be defined only by the Plan and the Plan Agreement, as entered into between the Employer and a Participant. An
Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement. 

  

	16.4	Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or
convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to
actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a
Participant’s or any other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise. 

  

	16.5	Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between any Employer and the Participant. Such employment is hereby
acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement.
Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of any Employer, either as an Employee or a Director, or to interfere with the right of any Employer to discipline or discharge the Participant at any
time. 

  
 -33- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	16.6	Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be
requested in order to facilitate the administration of the Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Committee may deem necessary. 

 

	16.7	Terms. Whenever any words are used herein in the masculine, they shall be construed as though they were in the feminine in all cases where they would so apply; and whenever any words are used herein in the
singular or in the plural, they shall be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply, 

 

	16.8	Captions. The captions of the articles, sections and paragraphs of this Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

  

	16.9	Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according to the internal laws of the State of California without regard to its conflicts of laws principles.

  

	16.10	Notice. Any notice or filing required or permitted to be given to the Committee under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address
below: 

 Compensation Committee 

Attn: Compensation and Benefits Manager 

PETCO Animal Supplies, Inc. 
 9125
Rehco Road 
 San Diego, CA 92121 

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the
receipt for registration or certification. 
 Any notice or filing required or permitted to be given to a Participant under this Plan shall
be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant. 
  

	16.11	Successors. The provisions of this Plan shall bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and the Participant’s designated
Beneficiaries. 

  

	16.12	Spouse’s Interest. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the Participant shall automatically pass to the Participant and shall not be transferable by
such spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass under the laws of intestate succession. 

  
 -34- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	16.13	Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal or invalid provision had never been inserted herein. 

  

	16.14	Incompetent. If the Committee determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of
that person’s property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person. The Committee may require proof of minority,
incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be, and
shall be a complete discharge of any liability under the Plan for such payment amount. 

  

	16.15	Domestic Relations Orders. If necessary to comply with a domestic relations order, as defined in Code Section 414(p)(l)(B), pursuant to which a court has determined that a spouse or former spouse of a
Participant has an interest in the Participant’s benefits under the Plan, the Committee shall have the right to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to such
spouse or former spouse, subject to compliance with Section 409A. 

  

	16.16	Distribution in the Event of Income Inclusion Under Code Section 409A. If any portion of a Participant’s Account Balance under this Plan is required to be included in income by the Participant
prior to receipt due to a failure of this Plan to comply with the requirements of Code Section 409A and related Treasury Regulations, the Committee may determine that such Participant shall receive a distribution from the Plan in an amount
equal to the lesser of (i) the portion of his or her Account Balance required to be included in income as a result of the failure of the Plan to comply with the requirements of Code Section 409A and related Treasury Regulations, or
(ii) the unpaid vested Account Balance. 

  

	16.17	 Deduction Limitation on Benefit Payments. If an Employer reasonably anticipates in good faith that the Employer’s deduction with
respect to any distribution from this Plan would be limited or eliminated by application of Code Section 162(m), then to the extent permitted by Treas. Reg. §1.409A-2(b)(7)(i), payment shall be delayed as deemed necessary to ensure that
the entire amount of any distribution from this Plan is deductible. Any amounts for which distribution is delayed pursuant to this Section shall continue to be credited/debited with additional amounts in accordance with Section 3.7. The delayed
amounts (and any amounts credited thereon) shall be distributed to the Participant (or his or her Beneficiary in the event of the Participant’s death) at the earliest date the Employer reasonably anticipates in good faith that the deduction of
the payment of the amount will not be limited or eliminated by application of Code Section 162(m). In the event that such date is determined to be after a Participant’s Separation from Service and the Participant

  
 -35- 

 PETCO Animal Supplies, Inc. 

Deferred Compensation Plan II 
 Master Plan Document 

 

	 	
to whom the payment relates is determined to be a Specified Employee, then to the extent deemed necessary to comply with Treas. Reg. § 1.409A-3(i)(2), the delayed payment shall not made
before the end of the six-month period following such Participant’s Separation from Service. 

 IN WITNESS WHEREOF, the Company
has caused this Plan document to be signed by an authorized officer on December 31, 2007. 
  

			
	PETCO Animal Supplies, Inc.
		
	By:	 	/s/ -

 
			
		
	Title:	 	SVP, Chief People Officer

  
 -36- 

 APPENDIX A 

LIMITED TRANSITION RELIEF FOR DISTRIBUTION ELECTIONS MADE 

AVAILABLE IN ACCORDANCE WITH NOTICES 2006-79, 2007-86 AND 

SUBSEQUENT GUIDANCE 
 The capitalized terms
below shall have the same meaning as provided in Article 1 of the Plan. 
 Opportunity to Make New (or Revise Existing) Distribution
Elections. 
 Notwithstanding the required deadlines for the submission of distribution elections under the Plan, the Committee may, to the
extent permitted by Notice 2006-79, provide a limited period in which Participants may make new distribution elections, or revise existing distribution elections, with respect to amounts subject to the terms of the Plan, by submitting an Election
Form on or before the deadline established by the Committee, which for amounts that would otherwise be paid to the Participant in 2008 shall in no event be later than December 31,2007. If any distribution election submitted by a Participant in
accordance with this paragraph either (a) relates to an amount that would otherwise be paid to the Participant in 2007, or (b) would cause an amount to be paid to the Participant in 2007, such election shall not be effective. 

In addition, notwithstanding the required deadlines for the submission of distribution elections under the Plan, the Committee may, to the extent permitted by
Notice 2007-86, provide a limited period in which Participants may make new distribution elections, or revise existing distribution elections, with respect to amounts subject to the terms of the Plan, by submitting an Election Form on or before the
deadline established by the Committee, which for amounts that would otherwise be paid to the Participant after 2008 shall in no event be later than December 31, 2008. If any distribution election submitted by a Participant in accordance with
this paragraph either (a) relates to an amount that would otherwise be paid to the Participant in 2008, or (b) would cause an amount to be paid to the Participant in 2008, such election shall not be effective. 

Any distribution election(s) made by a Participant, and accepted by the Committee, in accordance with this Appendix A shall not be treated as a change in
either the form or timing of a Participant’s benefit payment for purposes of Code Section 409A or the Plan. 
 The Committee may provide further
transition relief for new distribution elections and changes in existing distribution elections with respect to amounts subject to the terms of the Plan to the extent permitted in future Treasury Department or Internal Revenue Service guidance.EX-10.12

 Exhibit 10.12 

THE 2006 KEY MANAGEMENT INCENTIVE AWARD PLAN 

OF 
 PETCO ANIMAL SUPPLIES, INC.

 PETCO Animal Supplies, Inc., a Delaware corporation (the “Company”), has adopted the 2006 Incentive Award Plan of PETCO Animal
Supplies, Inc. (the “Plan”), effective as of November 17, 2006, for the benefit of its eligible employees, consultants and directors. 

The purposes of the Plan are as follows: 

(1) To provide an additional incentive for Independent Directors, Employees and Consultants (as such terms are defined below) to further the
growth, development and financial success of the Company by personally benefiting through the ownership of Company stock and/or rights which recognize such growth, development and financial success. 

(2) To enable the Company to obtain and retain the services of Independent Directors, Employees and Consultants considered essential to the
long range success of the Company by offering them an opportunity to own stock in the Company and/or rights which will reflect the growth, development and financial success of the Company. 

ARTICLE I. 
 DEFINITIONS

 Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates
otherwise. The singular pronoun shall include the plural where the context so indicates. 
 1.1 “Administrator” shall mean
the entity that conducts the general administration of the Plan as provided herein. With reference to the administration of the Plan with respect to Options granted to Independent Directors, the term “Administrator” shall refer to the
Board. With reference to the administration of the Plan with respect to any other Award, the term “Administrator” shall refer to the Committee unless the Board has assumed the authority for administration of the Plan generally as provided
in Section 10.2. 
 1.2 “Award” shall mean an Option, a Restricted Stock award, a Non-Restricted Stock award, a
Performance Award, a Dividend Equivalents award, a Deferred Stock award or a Stock Appreciation Right which may be awarded or granted under the Plan (collectively, “Awards”). 

1.3 “Award Agreement” shall mean a written agreement executed by an authorized officer of the Company and the Holder which
shall contain such terms and conditions with respect to an Award as the Administrator shall determine, consistent with the Plan. 
 1.4
“Board” shall mean the Board of Directors of the Company. 

 1.5 A “Change in Control” shall be deemed to occur: 

(a) if any person or entity (other than, individually or collectively, TPG Partners IV, L.P., TPG Partners V, L.P., Green
Equity Investors IV, L.P. and/or their respective affiliates) is or becomes the “beneficial owner” (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of
the combined voting power of the Company’s then outstanding securities; 
 (b) upon the consummation of a Transaction
which was previously approved by the Company’s stockholders; or 
 (c) during the term of the Plan, the first day on
which a majority of the members of the Board are not Continuing Directors. 
 Notwithstanding the foregoing, a Change in
Control pursuant to subparagraphs (b) and (c) above shall not be deemed to occur if immediately following the consummation of a Transaction or other event approved by the Board, holders of the Company’s voting securities immediately
prior to a Transaction either continue to own at least 50% of the combined voting power of the Company’s then outstanding voting securities if the Company survives the Transaction or then own voting securities representing at least 50% of the
combined voting power of each surviving entity after a Transaction. 
 1.6 “Code” shall mean the Internal Revenue Code of
1986, as amended. 
 1.7 “Committee” shall mean the Compensation Committee of the Board, or another committee or
subcommittee of the Board, appointed as provided in Section 10.1. 
 1.8 “Common Stock” shall mean the common stock of
the Company, par value $0.001 per share. 
 1.9 “Company” shall mean PETCO Animal Supplies, Inc., a Delaware corporation.

 1.10 “Consultant” shall mean any consultant or adviser if: 

(a) The consultant or adviser renders bona fide services to the Company; 

(b) The services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and 

(c) The consultant or adviser is a natural person who has contracted directly with the Company to render such services. 

  
 2 

 1.11 “Continuing Directors” shall mean, as of any date of determination, any
member of the Board who: 
 (a) was a member of the Board on the date hereof; or 

(b) was nominated for election or elected to the Board with the approval of a majority of the Continuing Directors who were
members of the Board at the time of such nomination or election. 
 1.12 “Deferred Stock” shall mean Common Stock awarded
under Article VIII of the Plan. 
 1.13 “Dividend Equivalent” shall mean a right to receive the equivalent value (in cash
or Common Stock) of dividends paid on Common Stock, awarded under Article VIII of the Plan. 
 1.14 “DRO” shall mean a
domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended, or the rules thereunder. 

1.15 “Employee” shall mean any officer or other employee (as defined in accordance with Section 3401(c) of the Code) of
the Company, or of any corporation which is a Subsidiary. 
 1.16 “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended. 
 1.17 “Fair Market Value” of a share of Common Stock as of a given date shall be (a) the closing
price of a share of Common Stock on the principal exchange on which shares of Common Stock are then trading, if any (or as reported on any composite index which includes such principal exchange), on the trading day previous to such date, or if
shares were not traded on the trading day previous to such date, then on the next preceding date on which a trade occurred, or (b) if Common Stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation system, the mean
between the closing representative bid and asked prices for the Common Stock on the trading day previous to such date as reported by NASDAQ or such successor quotation system, or (c) if Common Stock is not publicly traded on an exchange and not
quoted on NASDAQ or a successor quotation system, the fair market value of a share of Common Stock as established by the Administrator acting in good faith 

1.18 “Holder” shall mean a person who has been granted or awarded an Award. 

1.19 “Independent Director” shall mean a member of the Board who is not an Employee of the Company. 

1.20 “Incentive Stock Option” shall mean an option which conforms to the applicable provisions of Section 422 of the
Code and which is designated as an Incentive Stock Option by the Administrator. 

  
 3 

 1.21 “Non-Qualified Stock Option” shall mean an Option which is not designated
as an Incentive Stock Option by the Administrator. 
 1.22 “Non-Restricted Stock” shall mean Common Stock awarded under
Article VII of the Plan. 
 1.23 “Option” shall mean a stock option granted under Article IV of the Plan. An Option granted
under the Plan shall, as determined by the Administrator, be either a Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that Options granted to Consultants who are not Employees and Independent Directors shall
be Non-Qualified Stock Options. 
 1.24 “Performance Award” shall mean a cash bonus, stock bonus or other performance or
incentive award that is paid in cash, Common Stock or a combination of both, awarded under Article VIII of the Plan. 
 1.25
“Performance Criteria” shall mean the following business criteria with respect to the Company, any Subsidiary or any division or operating unit: (a) net income, (b) pre-tax income, (c) operating income, (d) cash
flow, (e) earnings per share, (f) return on equity, (g) return on invested capital or assets, (h) cost reductions or savings, (i) funds from operations, (j) appreciation in the fair market value of Common Stock, and
(k) earnings before any one or more of the following items: interest, taxes, depreciation or amortization. 
 1.26
“Plan” shall mean the 2006 Key Management Incentive Award Plan of PETCO Animal Supplies, Inc. 
 1.27 “Principal
Stockholder” shall mean TPG Partners IV, L.P., TPG Partners V, L.P. and Green Equity Investors IV, L.P., in the aggregate, and their respective affiliates. 

1.28 “Public Trading Date” shall mean the first date upon which Common Stock of the Company is listed (or approved for
listing) upon notice of issuance on any securities exchange or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system. 

1.29 “Restricted Stock” shall mean Common Stock awarded under Article VII of the Plan. 

1.30 “Stock Appreciation Right” shall mean a stock appreciation right granted under Article IX of the Plan. 

1.31 “Sponsor Price “ shall mean $1.00 per share of Common Stock. 

1.32 “Subsidiary” shall mean any corporation in an unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

  
 4 

 1.33 “Substitute Award” shall mean an Option granted under this Plan upon the
assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock; provided,
however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option. 

1.34 “Termination Of Consultancy” shall mean the time when the engagement of a Holder as a Consultant to the Company or a
Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge, death or retirement, but excluding terminations where there is a simultaneous commencement of employment with the
Company or any Subsidiary. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Consultancy, including, but not by way of limitation, the question of whether a Termination
of Consultancy resulted from a discharge for good cause, and all questions of whether a particular leave of absence constitutes a Termination of Consultancy. Notwithstanding any other provision of the Plan, the Company or any Subsidiary has an
absolute and unrestricted right to terminate a Consultant’s service at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 

1.35 “Termination Of Directorship” shall mean the time when a Holder who is an Independent Director ceases to be an
Independent Director for any reason, including, but not by way of limitation, a termination by resignation, failure to be elected, death or retirement. The Board, in its sole and absolute discretion, shall determine the effect of all matters and
questions relating to Termination of Directorship with respect to Independent Directors. 
 1.36 “Termination Of
Employment” shall mean the time when the employee-employer relationship between a Holder and the Company or any Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, a termination by
resignation, discharge, death, disability or retirement; but excluding (a) terminations where there is a simultaneous reemployment or continuing employment of a Holder by the Company or any Subsidiary, (b) at the discretion of the
Administrator, terminations which result in a temporary severance of the employee-employer relationship, and (c) at the discretion of the Administrator, terminations which are followed by the simultaneous establishment of a consulting
relationship by the Company or a Subsidiary with the former employee. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of
limitation, the question of whether a Termination of Employment resulted from a discharge for good cause, and all questions of whether a particular leave of absence constitutes a Termination of Employment. 

1.37 A “Transaction” means a merger, consolidation or reorganization, a distribution of the Company’s assets to the
stockholders of the Company by spin-off, split-up or otherwise, a sale or disposition of all or substantially all of the Company’s assets or a liquidation or dissolution of the Company. 

  
 5 

 ARTICLE II. 

SHARES SUBJECT TO PLAN 

2.1 Shares Subject to Plan. 

(a) The shares of stock subject to Awards shall be Common Stock. 

(b) Subject to adjustment as provided in Section 11.3, the aggregate number of shares of the Company’s Common Stock
which may be issued upon exercise of Options or rights or upon any such Award under the Plan, together with any number of shares of the Company’s Common Stock available for issuance under the PETCO Animal Supplies, Inc. 2006 Senior Executive
Incentive Award Plan, shall be eight million (8,000,000) (the “Aggregate Limit”); provided, however, that, with respect to Incentive Stock Options, in no event shall the aggregate number of shares of the Company’s
Common Stock which may be issued upon exercise of Incentive Stock Options exceed eight million (8,000,000). 
 2.2 Add-Back of Options
and Other Rights. If any Option, or other right to acquire shares of Common Stock under any other Award under the Plan, expires or is canceled without having been fully exercised, or is exercised in whole or in part for cash as permitted by the
Plan, the number of shares subject to such Option or other right but as to which such Option or other right was not exercised prior to its expiration, cancellation or exercise may again be optioned, granted or awarded hereunder, subject to the
limitations of Section 2.1. Furthermore, any shares subject to Awards which are adjusted pursuant to Section 11.3 and become exercisable with respect to shares of stock of another corporation shall be considered cancelled and may again be
optioned, granted or awarded hereunder, subject to the limitations of Section 2.1. Shares of Common Stock which are delivered by the Holder or withheld by the Company upon the exercise of any Award under the Plan, in payment of the exercise
price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitations of Section 2.1. If any shares of Restricted Stock are surrendered by the Holder or repurchased by the Company pursuant to
Section 7.4 or 7.5 hereof, such shares may again be optioned, granted or awarded hereunder, subject to the limitations of Section 2.1. Notwithstanding the provisions of this Section 2.2, no shares of Common Stock may again be
optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code. 

ARTICLE III. 
 GRANTING OF
AWARDS 
 3.1 Award Agreement. Each Award shall be evidenced by an Award Agreement. Award Agreements evidencing Incentive Stock
Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code. 

3.2 Consideration. In consideration of the granting of an Award under the Plan, in the sole and absolute discretion of the
Administrator, the Holder shall agree, in the Award Agreement, to remain in the employ of (or to consult for or to serve as an Independent 

  
 6 

 
Director of, as applicable) the Company or any Subsidiary for a period of at least one year (or such shorter period as may be fixed in the Award Agreement or by action of the Administrator
following grant of the Award) after the Award is granted (or, in the case of an Independent Director, until the next annual meeting of stockholders of the Company). 

3.3 At-Will Employment. Nothing in the Plan or in any Award Agreement hereunder shall confer upon any Holder any right to continue in
the employ of, or as a Consultant for, the Company or any Subsidiary, or as an Independent Director of the Company, or shall interfere with or restrict in any way the rights of the Company and any Subsidiary, which are hereby expressly reserved, to
discharge any Holder at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written employment agreement between the Holder and the Company or any Subsidiary. 

ARTICLE IV. 
 GRANTING OF
OPTIONS TO EMPLOYEES, CONSULTANTS 
 AND INDEPENDENT DIRECTORS 

4.1 Eligibility. Any Employee, Consultant or Independent Director selected by the Committee pursuant to Section 4.4(a)(i) shall be
eligible to be granted an Option. 
 4.2 Disqualification For Stock Ownership. No person may be granted an Incentive Stock Option
under the Plan if such person, at the time the Incentive Stock Option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any then existing Subsidiary or parent corporation
(within the meaning of Section 422 of the Code) unless such Incentive Stock Option conforms to the applicable provisions of Section 422 of the Code. 

4.3 Qualification of Incentive Stock Options. No Incentive Stock Option shall be granted to any person who is not an Employee. 

4.4 Granting of Options to Employees, Consultants and Independent Directors. 

(a) The Committee shall from time to time, in its absolute discretion, and subject to applicable limitations of the Plan: 

(i) Select from among the Employees, Independent Directors or Consultants (including Employees, Independent Directors or
Consultants who have previously received Awards under the Plan) such of them as in its opinion should be granted Options; 

(ii) Determine the number of shares to be subject to such Options granted to the selected Employees, Independent Directors or
Consultants; 
 (iii) Subject to Section 4.3, determine whether such Options are to be Incentive Stock Options or
Non-Qualified Stock Options; and 
 (iv) Determine the terms and conditions of such Options, consistent with the Plan. 

  
 7 

 (b) Upon the selection of an Employee, Independent Director or Consultant to be
granted an Option, the Committee shall instruct the Secretary of the Company to issue the Option and may impose such conditions on the grant of the Option as it deems appropriate. 

(c) Any Incentive Stock Option granted under the Plan may be modified by the Committee, with the consent of the Holder, to
disqualify such Option from treatment as an “incentive stock option” under Section 422 of the Code. 
 4.5 Options in Lieu
of Cash Compensation. Options may be granted under the Plan to Employees, Independent Directors and Consultants in lieu of cash bonuses which would otherwise be payable to such Employees, Independent Directors and Consultants, pursuant to such
policies which may be adopted by the Administrator from time to time. 
 ARTICLE V. 

TERMS OF OPTIONS 
 5.1
Option Price. The price per share of the shares subject to each Option granted to Employees, Independent Directors and Consultants shall be set by the Committee; provided, however, that such price shall be no less than 100% of the Fair
Market Value of a share of Common Stock on the date the Option is granted and: 
 (a) In the case of Incentive Stock Options
such price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code); 

(b) In the case of Options granted to an individual then owning (within the meaning of Section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary or parent corporation thereof (within the meaning of Section 422 of the Code), such price shall not be less than 110% of the Fair Market Value
of a share of Common Stock on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code). 

5.2 Option Term. The term of an Option shall not be more than 10 years from the date the Option is granted, or, in the case of
Incentive Stock Options, five years from the date the Incentive Stock Option is granted if the Incentive Stock Option is granted to an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined
voting power of all classes of stock of the Company or any Subsidiary or parent corporation thereof (within the meaning of Section 422 of the Code). Except as limited by requirements of Section 422 of the Code and regulations and rulings
thereunder applicable to 

  
 8 

 
Incentive Stock Options and Section 409A of the Code and regulations and rulings thereunder, the Committee may extend the term of any outstanding Option in connection with any Termination of
Employment or Termination of Consultancy of the Holder, or amend any other term or condition of such Option relating to such a termination. 

5.3 Option Vesting. 

(a) The period during which the right to exercise, in whole or in part, an Option granted to a Consultant, Independent Director
or Employee (who is an officer or manager) vests in the Holder shall be set by the Committee in its sole discretion; provided, however, that the period during which the right to exercise, in whole or in part, an Option granted to an
Employee (other than an officer or manager) vests in the Holder shall be at a rate of at least 20% per year over 5 years from the date the Option is granted. At any time after grant of an Option, the Committee may, in its sole and absolute
discretion and subject to whatever terms and conditions it selects, accelerate the period during which an Option granted to an Employee, Independent Director or Consultant vests. 

(b) No portion of an Option granted to an Employee, Independent Director or Consultant that is unexercisable at Termination of
Employment, Termination of Directorship or Termination of Consultancy, as applicable, shall thereafter become exercisable, except as may be otherwise provided (i) by any written employment agreement or (ii) by the Committee either in the
Award Agreement or by action of the Committee following the grant of the Option. 
 (c) To the extent that the aggregate Fair
Market Value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by a Holder during any
calendar year (under the Plan and all other incentive stock option plans of the Company and any parent or subsidiary corporation, within the meaning of Section 422 of the Code) of the Company, exceeds $100,000, such Options shall be treated as
Non-Qualified Stock Options to the extent required by Section 422 of the Code. The rule set forth in the preceding sentence shall be applied by taking Options into account in the order in which they were granted. For purposes of this
Section 5.3(c), the Fair Market Value of stock shall be determined as of the time the Option with respect to such stock is granted. 

5.4 Substitute Awards. Notwithstanding the foregoing provisions of this Article V to the contrary, in the case of an Option that is a
Substitute Award, the price per share of the shares subject to such Option may be less than the Fair Market Value per share on the date of grant, provided, that the excess of: 

(a) The aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute
Award; over 

  
 9 

 (b) The aggregate exercise price thereof; does not exceed the excess of: 

(c) The aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award,
such fair market value to be determined by the Committee) of the shares of the predecessor entity that were subject to the grant assumed or substituted for by the Company; over 

(d) The aggregate exercise price of such shares. 

ARTICLE VI. 
 EXERCISE OF
OPTIONS 
 6.1 Partial Exercise. An exercisable Option may be exercised in whole or in part. However, an Option shall not be
exercisable with respect to fractional shares and the Administrator may require that, by the terms of the Option, a partial exercise be with respect to a minimum number of shares. 

6.2 Manner of Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to
the Secretary of the Company or his or her office: 
 (a) A written notice complying with the applicable rules established by
the Administrator stating that the Option, or a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Option or such portion of the Option; 

(b) Such representations and documents as the Administrator, in its absolute discretion, deems necessary or advisable to effect
compliance with all applicable provisions of any federal or state securities laws or regulations. The Administrator may, in its absolute discretion, also take whatever additional actions it deems appropriate to effect such compliance, including,
without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars; 
 (c)
In the event that the Option shall be exercised pursuant to Section 11.1 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option; and 

(d) Full cash payment to the Secretary of the Company for the shares with respect to which the Option, or portion thereof, is
exercised. However, the Administrator may, in its discretion, (i) allow a delay in payment of up to 30 days from the date the Option, or portion thereof, is exercised; (ii) allow payment, in whole or in part, through the delivery of shares
of Common Stock which have been owned by the Holder for at least six months, duly endorsed for transfer to the Company with a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof;
(iii) allow payment, in 

  
 10 

 
whole or in part, through the surrender of shares of Common Stock then issuable upon exercise of the Option having a Fair Market Value on the date of Option exercise equal to the aggregate
exercise price of the Option or exercised portion thereof; (iv) allow payment, in whole or in part, through the delivery of property of any kind which constitutes good and valuable consideration; (v) allow payment, in whole or in part,
through the delivery of a full recourse promissory note bearing interest (at no less than such rate as shall then preclude the imputation of interest under the Code) and payable upon such terms as may be prescribed by the Administrator;
(vi) allow payment, in whole or in part, through the delivery of a notice that the Holder has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has
been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price, provided that payment of such proceeds is then made to the Company upon settlement of such sale; or
(vii) allow payment through any combination of the consideration provided in the foregoing subparagraphs (ii), (iii), (iv), (v) and (vi). In the case of a promissory note, the Administrator may also prescribe the form of such note and the
security to be given for such note. The Option may not be exercised, however, by delivery of a promissory note or by a loan from the Company when or where such loan or other extension of credit is prohibited by law. 

6.3 Conditions to Issuance of Stock Certificates. The Company shall not be required to issue or deliver any certificate or certificates
for shares of stock purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 

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

(b) The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator
shall, in its absolute discretion, determine to be necessary or advisable; 
 (c) The lapse of such reasonable period of time
following the exercise of the Option as the Administrator may establish from time to time for reasons of administrative convenience; and 

(d) The receipt by the Company of full payment for such shares, including payment of any applicable withholding tax, which in
the discretion of the Administrator may be in the form of consideration used by the Holder to pay for such shares under Section 6.2(d). 

6.4 Rights as Stockholders. Holders shall not be, nor have any of the rights or privileges of, stockholders of the Company in respect
of any shares purchasable upon the exercise of any part of an Option unless and until certificates representing such shares have been issued by the Company to such Holders. 

  
 11 

 6.5 Ownership And Transfer Restrictions. The Administrator, in its absolute discretion,
may impose such restrictions on the ownership and transferability of the shares purchasable upon the exercise of an Option as it deems appropriate. Any such restriction shall be set forth in the respective Award Agreement and may be referred to on
the certificates evidencing such shares. The Holder shall give the Company prompt notice of any disposition of shares of Common Stock acquired by exercise of an Incentive Stock Option within (a) two years from the date of granting (including
the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code) such Option to such Holder, or (b) one year after the transfer of such shares to such Holder. 

6.6 Limitations On Exercise Of Options. No Option may be exercised to any extent by anyone after the first to occur of the following
events: 
 (a) The expiration of 12 months from the date of the Holder’s death; 

(b) The expiration of 12 months from the date of the Holder’s Termination of Directorship, Termination of Employment or
Termination of Consultancy by reason of his or her permanent and total disability (within the meaning of Section 22(e)(3) of the Code); 

(c) The expiration of three months from the date of the Holder’s Termination of Directorship, Termination of Employment or
Termination of Consultancy for any reason other than such Holder’s death or his or her permanent and total disability, unless the Holder dies within said three-month period; or 

(d) The expiration of 10 years from the date the Option was granted. 

6.7 Additional Limitations on Exercise of Options. Holders may be required to comply with any timing or other restrictions with respect
to the settlement or exercise of an Option as may be imposed in the discretion of the Administrator. 
 ARTICLE VII. 

AWARD OF RESTRICTED STOCK AND NON-RESTRICTED STOCK 

7.1 Eligibility. Restricted Stock and Non-Restricted Stock may be awarded to any Employee, Independent Director or Consultant who the
Committee determines should receive such an Award. 

  
 12 

 7.2 Award of Restricted Stock. 

(a) The Committee may from time to time, in its absolute discretion: 

(i) Select from among the Employees, Independent Directors or Consultants (including Employees, Independent Directors or
Consultants who have previously received other awards under the Plan) such of them as in its opinion should be awarded Restricted Stock; and 

(ii) Determine the purchase price and other terms and conditions applicable to such Restricted Stock, consistent with the Plan.

 (b) The Committee shall establish the purchase price and form of payment for Restricted Stock; provided, however,
that such purchase price shall be no less than 100% of the Fair Market Value of the Common Stock on the date of grant or at the time the purchase is consummated. 

(c) Upon the selection of an Employee, Independent Director or Consultant to be awarded Restricted Stock, the Committee shall
instruct the Secretary of the Company to issue such Restricted Stock and may impose such conditions on the issuance of such Restricted Stock as it deems appropriate. 

7.3 Rights as Stockholders. Subject to Section 7.4, upon delivery of the shares of Restricted Stock to the escrow holder pursuant
to Section 7.6, the Holder shall have, unless otherwise provided by the Committee, all the rights of a stockholder with respect to said shares, subject to the restrictions in his or her Award Agreement, including the right to receive all
dividends and other distributions paid or made with respect to the shares; provided, however, that in the discretion of the Committee, any extraordinary distributions with respect to the Common Stock shall be subject to the restrictions set
forth in Section 7.4. 
 7.4 Restriction. All shares of Restricted Stock issued under the Plan (including any shares received by
holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization) shall, in the terms of each individual Award Agreement, be subject to such restrictions as the Committee
shall provide, which restrictions may include, without limitation, restrictions concerning voting rights and transferability and restrictions based on duration of employment with the Company, Company performance and individual performance;
provided, however, that by action taken after the Restricted Stock is issued, the Committee may, on such terms and conditions as it may determine to be appropriate, remove any or all of the restrictions imposed by the terms of the
Award Agreement. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire. 
 7.5
Forfeiture/Repurchase of Restricted Stock. Unless otherwise provided in an Award Agreement or in a written employment agreement, all Restricted Stock subject to vesting restrictions on the date of Termination of Directorship, Termination of
Employment or Termination of Consultancy shall be forfeited on such date. The Committee shall provide in the terms of each individual Award Agreement that the Company shall have the right to repurchase from the Holder the Restricted Stock then
subject to restrictions under the Award Agreement immediately upon a Termination of Employment or, if applicable, upon a Termination of Consultancy or a Termination of Directorship between the Holder and the Company, in accordance with the terms of
Section 260.140.42(h) of the Title 10 of the California Code of 

  
 13 

 
Regulations; provided, however, that the Committee in its sole and absolute discretion may provide that no such right of repurchase shall exist in the event of a Termination of
Employment, Termination of Directorship or a Termination of Consultancy without cause or following a Change in Control of the Company or because of the Holder’s retirement, or otherwise; provided, further, that any such right of
repurchase shall lapse on the Public Trading Date. 
 7.6 Escrow. The Secretary of the Company or such other escrow holder as the
Committee may appoint shall retain physical custody of each certificate representing Restricted Stock until all of the restrictions imposed under the Award Agreement with respect to the shares evidenced by such certificate expire or shall have been
removed. 
 7.7 Legend. In order to enforce the restrictions imposed upon shares of Restricted Stock hereunder, the Committee shall
cause a legend or legends to be placed on certificates representing all shares of Restricted Stock that are still subject to restrictions under Award Agreements, which legend or legends shall make appropriate reference to the conditions imposed
thereby. 
 7.8 Section 83(b) Election. If a Holder makes an election under Section 83(b) of the Code, or any successor
section thereto, to be taxed with respect to the Restricted Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder would otherwise be taxable under Section 83(a) of the Code, the
Holder shall deliver a copy of such election to the Company immediately after filing such election with the Internal Revenue Service. 
 7.9
Award of Non-Restricted Common Stock. The Committee may from time to time, in its absolute discretion select from among the Employees, Independent Directors or Consultants (including Employees, Independent Directors or Consultants who have
previously received other awards under the Plan) such of them as in its opinion should be awarded Non-Restricted Stock; and determine the purchase price and other terms and conditions applicable to such Non-Restricted Stock, consistent with the
Plan; provided, however, that such purchase price shall be no less than 100% of the Fair Market Value of the Common Stock on the date of grant or at the time the purchase is consummated. 

ARTICLE VIII. 
 PERFORMANCE
AWARDS, DIVIDEND EQUIVALENTS AND DEFERRED STOCK 
 8.1 Eligibility. One or more Performance Awards, Dividend Equivalents and/or
awards of Deferred Stock may be granted to any Employee, Independent Director or Consultant whom the Committee determines should receive such an Award. 

8.2 Performance Awards. Any Employee, Independent Director or Consultant selected by the Committee may be granted one or more
Performance Awards. The value of such Performance Awards may be linked to any one or more of the Performance Criteria or other specific performance criteria determined appropriate by the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee. In making such determinations, the Committee shall consider (among such other factors as it deems relevant in light of the specific type of award) the contributions, responsibilities and other
compensation of the particular Employee, Independent Director or Consultant. 

  
 14 

 8.3 Dividend Equivalents. 

(a) Any Employee, Independent Director or Consultant selected by the Committee may be granted Dividend Equivalents based on the
dividends declared on Common Stock, to be credited as of dividend payment dates, during the period between the date a Stock Appreciation Right, Deferred Stock or Performance Award is granted, and the date such Stock Appreciation Right, Deferred
Stock or Performance Award is exercised, vests or expires, as determined by the Committee. Such Dividend Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as
may be determined by the Committee. 
 (b) Any Holder of an Option who is an Employee, Independent Director or Consultant
selected by the Committee may be granted Dividend Equivalents based on the dividends declared on Common Stock, to be credited as of dividend payment dates, during the period between the date an Option is granted, and the date such Option is
exercised, vests or expires, as determined by the Committee. Such Dividend Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the
Committee. 
 8.4 Deferred Stock. Any Employee, Independent Director or Consultant selected by the Committee may be granted an award
of Deferred Stock in the manner determined from time to time by the Committee. The number of shares of Deferred Stock shall be determined by the Committee and may be linked to one or more of the Performance Criteria or other specific performance
criteria determined to be appropriate by the Committee, in each case on a specified date or dates or over any period or periods determined by the Committee. Common Stock underlying a Deferred Stock award will not be issued until the Deferred Stock
award has vested, pursuant to a vesting schedule or performance criteria set by the Committee. Unless otherwise provided by the Committee, a Holder of Deferred Stock shall have no rights as a Company stockholder with respect to such Deferred Stock
until such time as the Award has vested and the Common Stock underlying the Award has been issued. 
 8.5 Term. The term of a
Performance Award, Dividend Equivalent and/or award of Deferred Stock shall be set by the Committee in its discretion. 
 8.6 Exercise or
Purchase Price. The Committee may establish the exercise or purchase price of a Performance Award or shares of Deferred Stock; provided, however, that such price shall be no less than 100% of the Fair Market Value of the Common
Stock on the date of grant or at the time the purchase is consummated. 
 8.7 Exercise Upon Termination of Employment, Termination of
Consultancy or Termination of Directorship. Subject to the terms of any written employment agreement, a Performance Award, Dividend Equivalent and/or award of Deferred Stock is exercisable or 

  
 15 

 
payable only while the Holder is an Employee, Independent Director or Consultant, as applicable; provided, however, that the Administrator in its sole and absolute discretion may
provide that Performance Awards may be exercised or paid following a Termination of Employment, Termination of Directorship or a Termination of Consultancy without cause, or following a Change in Control of the Company, or because of the
Holder’s retirement, death or disability, or otherwise. 
 8.8 Form of Payment. Payment of the amount determined under
Section 8.2 or 8.3 above shall be in cash, in Common Stock or a combination of both, as determined by the Committee. To the extent any payment under this Article VIII is effected in Common Stock, it shall be made subject to satisfaction of all
provisions of Section 6.3. 
 ARTICLE IX. 

STOCK APPRECIATION RIGHTS 

9.1 Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any Employee, Independent Director or Consultant
selected by the Committee. A Stock Appreciation Right may be granted (a) in connection and simultaneously with the grant of an Option, (b) with respect to a previously granted Option, or (c) independent of an Option. A Stock
Appreciation Right shall be subject to such terms and conditions not inconsistent with the Plan as the Committee shall impose and shall be evidenced by an Award Agreement. 

9.2 Coupled Stock Appreciation Rights. 

(a) A Coupled Stock Appreciation Right (“CSAR”) shall be related to a particular Option and shall be exercisable only
when and to the extent the related Option is exercisable. 
 (b) A CSAR may be granted to the Holder for no more than the
number of shares subject to the simultaneously or previously granted Option to which it is coupled. 
 (c) A CSAR shall
entitle the Holder (or other person entitled to exercise the Option pursuant to the Plan) to surrender to the Company unexercised a portion of the Option to which the CSAR relates (to the extent then exercisable pursuant to its terms) and to receive
from the Company in exchange therefor an amount determined by multiplying the difference obtained by subtracting the Option exercise price from the Fair Market Value of a share of Common Stock on the date of exercise of the CSAR by the number of
shares of Common Stock with respect to which the CSAR shall have been exercised, subject to any limitations the Committee may impose. 
 9.3
Independent Stock Appreciation Rights. 
 (a) An Independent Stock Appreciation Right (“ISAR”) shall be
unrelated to any Option and shall have a term set by the Committee. An ISAR shall be exercisable in such installments as the Committee may determine. An 

  
 16 

 
ISAR shall cover such number of shares of Common Stock as the Committee may determine. The exercise price per share of Common Stock subject to each ISAR shall not be less than 100% of the Fair
Market Value of a share of Common Stock on the date the ISAR is granted. Subject to the terms of any written employment agreement, an ISAR is exercisable only while the Holder is an Employee, Independent Director or Consultant; provided, that
the Committee may determine that the ISAR may be exercised subsequent to Termination of Employment, Termination of Directorship or Termination of Consultancy without cause, or following a Change in Control of the Company, or because of the
Holder’s retirement, death or disability, or otherwise. 
 (b) An ISAR shall entitle the Holder (or other person
entitled to exercise the ISAR pursuant to the Plan) to exercise all or a specified portion of the ISAR (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference obtained
by subtracting the exercise price per share of the ISAR from the Fair Market Value of a share of Common Stock on the date of exercise of the ISAR by the number of shares of Common Stock with respect to which the ISAR shall have been exercised,
subject to any limitations the Committee may impose. 
 9.4 Payment and Limitations on Exercise. 

(a) Payment of the amounts determined under Section 9.2(c) and 9.3(b) above shall be in cash, in Common Stock (based on
its Fair Market Value as of the date the Stock Appreciation Right is exercised) or a combination of both, as determined by the Committee. To the extent such payment is effected in Common Stock it shall be made subject to satisfaction of all
provisions of Section 6.3 above pertaining to Options. 
 (b) Holders of Stock Appreciation Rights may be required to
comply with any timing or other restrictions with respect to the settlement or exercise of a Stock Appreciation Right, including a window-period limitation, as may be imposed in the discretion of the Committee. 

ARTICLE X. 
 ADMINISTRATION

 10.1 Compensation Committee. The Compensation Committee (or another committee or a subcommittee of the Board assuming the
functions of the Committee under the Plan). Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may be
filled by the Board. 
 10.2 Duties and Powers of Committee. It shall be the duty of the Committee to conduct the general
administration of the Plan in accordance with its provisions. The Committee shall have the power to interpret the Plan and the Award Agreements, and to adopt such rules for 

  
 17 

 
the administration, interpretation and application of the Plan as are consistent therewith, to interpret, amend or revoke any such rules and to amend the Plan and any Award Agreement,
provided that the rights or obligations of the Holder of the Award that is the subject of any such Award Agreement are not affected adversely. Any such grant or award under the Plan need not be the same with respect to each Holder. Any such
interpretations and rules with respect to Incentive Stock Options shall be consistent with the provisions of Section 422 of the Code. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and
duties of the Committee under the Plan (in which event any reference herein to the Committee with respect to such authority shall be deemed a reference to the Board). 

10.3 Section 409A of the Code. Notwithstanding Sections 10.2 and 11.2 of the Plan, the Committee hereby reserves the right to
amend the Plan and any Award Agreement without the consent of the Holder of the Award if the Administrator determines, in its sole and absolute discretion, that such amendment is necessary or appropriate in order to avoid the imposition of adverse
tax consequences under Section 409A of the Code on either the Holder of the Award or the Company, provided that any such amendment shall preserve the economic benefits of any such Award from the Holder’s point of view, provided further
that such amendment is not intended to provide Holder a gross-up payment for such taxes or interest. 
 10.4 Compensation; Professional
Assistance; Good Faith Actions. Members of the Committee shall receive such compensation, if any, for their services as members as may be determined by the Board. All expenses and liabilities which members of the Committee incur in connection
with the administration of the Plan shall be borne by the Company. The Committee may, with the approval of the Board, employ attorneys, consultants, accountants, appraisers, brokers or other persons. The Committee, the Company and the Company’s
officers and directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding
upon all Holders, the Company and all other interested persons. No members of the Committee or Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or Awards, and all members of
the Committee and the Board shall be fully protected by the Company in respect of any such action, determination or interpretation. 
 10.5
Delegation of Authority to Grant Awards. The Committee may, but need not, delegate from time to time some or all of its authority to grant Awards under the Plan to a committee consisting of one or more members of the Committee or of one or
more officers of the Company; provided, however, that the Committee may not delegate its authority to grant Awards to individuals who are officers of the Company who are delegated authority by the Committee hereunder. Any delegation
hereunder shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation of authority and may be rescinded at any time by the Committee. At all times, any committee appointed under this Section 10.6
shall serve in such capacity at the pleasure of the Committee. 

  
 18 

 ARTICLE XI. 

MISCELLANEOUS PROVISIONS 

11.1 Not Transferable. 

(a) No Award under the Plan may be sold, pledged, assigned or transferred in any manner other than by will or the laws of
descent and distribution or, subject to the consent of the Administrator and to the extent permitted by applicable law, pursuant to a DRO, unless and until such Award has been exercised, or the shares underlying such Award have been issued, and all
restrictions applicable to such shares have lapsed. No Award or interest or right therein shall be liable for the debts, contracts or engagements of the Holder or his or her successors in interest or shall be subject to disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. 

(b) During the lifetime of the Holder, only he or she may exercise an Option or other Award (or any portion thereof) granted to
him or her under the Plan, unless it has been disposed of with the consent of the Administrator pursuant to a DRO. After the death of the Holder, any exercisable portion of an Option or other Award may, prior to the time when such portion becomes
unexercisable under the Plan or the applicable Award Agreement, be exercised by his or her personal representative or by any person empowered to do so under the deceased Holder’s will or under the then applicable laws of descent and
distribution. 
 11.2 Amendment, Suspension or Termination of the Plan. Except as otherwise provided in this Section 11.2, the
Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator. However, without approval of the Company’s stockholders given within 12 months before or after the
action by the Administrator, no action of the Administrator may, except as provided in Section 11.3, increase the limits imposed in Section 2.1 on the maximum number of shares which may be issued under the Plan upon the exercise of any
Incentive Stock Option. No amendment, suspension or termination of the Plan shall, without the consent of the Holder, alter or impair any rights or obligations under any Award theretofore granted or awarded, unless the Award itself otherwise
expressly so provides. No Awards may be granted or awarded during any period of suspension or after termination of the Plan. The Plan shall terminate 10 years from the date the Plan is adopted by the Board or the date the Plan is approved by a
majority of the stockholders of the Company, whichever is earlier. 

  
 19 

 11.3 Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the
Company and Other Corporate Events. 
 (a) Subject to Section 11.3(e), in the event that any dividend or other
distribution (whether in the form of cash, Common Stock, other securities or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase,
liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase
Common Stock or other securities of the Company, or other similar corporate transaction or event, affects the Common Stock such that an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or with respect to an Award, then the Administrator shall, in such manner as it determines to be equitable (such determination to be final and binding on all persons), adjust any or all of: 

(i) The number and kind of shares of Common Stock (or other securities or property) with respect to which Awards may be granted
or awarded; 
 (ii) The number and kind of shares of Common Stock (or other securities or property) subject to outstanding
Awards; and 
 (iii) The grant or exercise price with respect to any Award. 

(b) In the event of a Change in Control of the Company or any unusual or nonrecurring transactions or events affecting the
Company, any affiliate of the Company, or the financial statements of the Company or any affiliate, or of changes in applicable laws, regulations or accounting principles, the Administrator, in its sole and absolute discretion, and on such terms and
conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event and either automatically or upon the Holder’s request, is hereby authorized to take any one or more of
the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any Award
under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles: 

(i) To provide for either the purchase of any such Award for an amount of cash equal to the amount that could have been
attained upon the exercise of such Award or realization of the Holder’s rights had such Award been currently exercisable or payable or fully vested or the replacement of such Award with other rights or property selected by the Administrator in
its sole discretion; 

  
 20 

 (ii) To provide that the Award cannot vest, be exercised or become payable after
such event; 
 (iii) To provide that such Award shall be exercisable as to all shares covered thereby, notwithstanding
anything to the contrary in Section 5.4 or the provisions of such Award; 
 (iv) To provide that such Award be assumed
by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices; 
 (v) To make adjustments in the number and type of
shares of Common Stock (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Restricted Stock or Deferred Stock and/or in the terms and conditions of (including the grant or exercise price), and
the criteria included in, outstanding Options, rights and Awards and Options, rights and Awards which may be granted in the future; 

(vi) To provide that, for a specified period of time prior to such event, the restrictions imposed under an Award Agreement
upon some or all shares of Restricted Stock or Deferred Stock may be terminated, and, in the case of Restricted Stock, some or all shares of such Restricted Stock may cease to be subject to repurchase under Section 7.5 or forfeiture under
Section 7.4 after such event; and 
 (vii) To provide that each outstanding Award shall, immediately prior to the
effective date of such event, automatically become fully exercisable for all of the shares of Common Stock at the time subject to such rights and may be exercised for any or all of those shares as fully-vested shares of Common Stock. 

(c) Subject to Section 11.3(d), the Administrator may, in its discretion, include such further provisions and limitations
in any Award, agreement or certificate, as it may deem equitable and in the best interests of the Company. 
 (d) No
adjustment or action described in this Section 11.3 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause the Plan to violate Section 422(b)(1) of the Code or Section 409A
of the Code. The number of shares of Common Stock subject to any Award shall always be rounded to the next whole number. 

(e) The existence of the Plan, the Award Agreement and the Awards granted hereunder shall not affect or restrict in any way the
right or power of the 

  
 21 

 
Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any
merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights
thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise. 
 11.4 Approval of Plan by Stockholders. The Plan will be submitted for the approval of the majority
of the Company’s stockholders within 12 months after the date of the Board’s initial adoption of the Plan. Awards may be granted or awarded prior to such stockholder approval, provided that such Awards shall not be exercisable nor
shall such Awards vest prior to the time when the Plan is approved by the stockholders, and provided further that if such approval has not been obtained at the end of said twelve-month period, all Awards previously granted or awarded under
the Plan shall thereupon be canceled and become null and void. 
 11.5 Tax Withholding. The Company shall be entitled to require
payment in cash or deduction from other compensation payable to each Holder of any sums required by federal, state or local tax law to be withheld with respect to the issuance, vesting, exercise or payment of any Award. The Administrator may in its
discretion and in satisfaction of the foregoing requirement allow such Holder to elect to have the Company withhold shares of Common Stock otherwise issuable under such Award (or allow the return of shares of Common Stock) having a Fair Market Value
equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of shares of Common Stock which may be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be
repurchased from the Holder of such Award within six months after such shares of Common Stock were acquired by the Holder from the Company) in order to satisfy the Holder’s federal and state income and payroll tax liabilities with respect to
the issuance, vesting, exercise or payment of the Award shall be limited to the number of shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory
withholding rates for federal and state income tax and payroll tax purposes that are applicable to such supplemental taxable income. 
 11.6
Loans. The Committee may, in its discretion, extend one or more loans to Employees in connection with the exercise or receipt of an Award granted or awarded under the Plan, or the issuance of Restricted Stock or Deferred Stock awarded under
the Plan. The terms and conditions of any such loan shall be set by the Committee. 
 11.7 Forfeiture Provisions. Pursuant to its
general authority to determine the terms and conditions applicable to Awards under the Plan, the Administrator shall have the right to provide, in the terms of Awards made under the Plan, or to require a Holder to agree by separate written
instrument, that (a)(i) any proceeds, gains or other economic benefit actually or constructively received by the Holder upon any receipt or exercise of the Award, or upon the receipt or resale of any Common Stock underlying the Award, must be paid
to the Company, and 

  
 22 

 
(ii) the Award shall terminate and any unexercised portion of the Award (whether or not vested) shall be forfeited, if (b)(i) a Termination of Employment, Termination of Consultancy or
Termination of Directorship occurs prior to a specified date, or within a specified time period following receipt or exercise of the Award, or (ii) the Holder at any time, or during a specified time period, engages in any activity in
competition with the Company, or which is inimical, contrary or harmful to the interests of the Company, as further defined by the Administrator or (iii) the Holder incurs a Termination of Employment, Termination of Consultancy or Termination
of Directorship for cause. 
 11.8 Effect of Plan Upon Options and Compensation Plans. The adoption of the Plan shall not affect any
written employment agreements or other compensation or incentive plans in effect for the Company or any Subsidiary. Nothing in the Plan shall be construed to limit the right of the Company (a) to establish any other forms of incentives or
compensation for Employees, Independent Directors or Consultants of the Company or any Subsidiary, or (b) to grant or assume options or other rights or awards otherwise than under the Plan in connection with any proper corporate purpose,
including but not by way of limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership, limited liability
company, firm or association. 
 11.9 Compliance With Laws. The Plan, the granting and vesting of Awards under the Plan and the
issuance and delivery of shares of Common Stock and the payment of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all applicable federal and state laws, rules and regulations (including but not
limited to state and federal securities law and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection
therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem
necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws,
rules and regulations. 
 11.10 Titles. Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of the Plan. 
 11.11 Governing Law. The Plan and any agreements hereunder shall be administered,
interpreted and enforced under the internal laws of the State of California without regard to conflicts of laws thereof. 
 11.12
Financial Statements. To the extent applicable, pursuant to the provisions of Section 260.140.46 of Title 10 of the California Code of Regulations, the Company shall provide to each Holder and to each individual who acquires Stock
pursuant to the Plan, not less frequently than annually during the period such Holder or purchaser has one or more Awards granted under the Plan outstanding, and, in the case of an individual who acquires Stock pursuant to the Plan, during the
period such individual owns such Stock, copies of the Company’s annual financial statements. The Company shall not be required to provide such statements to Employees of the Company whose duties in connection with the Company assure their
access to equivalent information. 

  
 23 

 11.13 California Code of Regulations. To the extent applicable, the provisions of Sections
260.140.41, 260.140.42 and 260.140.45 of Title 10 of the California Code of Regulations are incorporated herein by reference. 

  
 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]