Document:

Exhibit 10.1

 

GLOBAL
DIGITAL SOLUTIONS, INC.

 

RESTRICTED
STOCK UNIT AGREEMENT

 

EMPLOYEE
NAME: STEPHEN L. NORRIS

 

NOTICE
OF GRANT

 

Global
Digital Solutions, Inc., (the “Company”) hereby grants you, STEPHEN L. NORRIS (the “Employee”),
an award of Restricted Stock Units under the Company’s 2014 Equity Incentive Plan (the “Plan”). The date of
this Restricted Stock Unit Agreement (the “Agreement”) is July 1, 2014 (the “Grant Date”).
Subject to the provisions of Appendix A (attached) and of the Plan, the principal features of this award are as follows:

  

	Number
    of Restricted Stock Units:	 	12,000,000
	 	 
	Vesting
    Schedule:	 	The
Restricted Stock Units will vest in accordance with the following schedule (*):

                                                                                                                  

        4,000,000
        Units will vest in respect of each fiscal year (commencing July 1 and ending June 30) of GDSI International from 2015
        through 2017 if GDSI International has achieved at least 90% of the total revenue targets shown on Schedule 1 hereto. 
        If less than 90% of the target is achieved in respect of any such fiscal year, then the number of Units vesting for that
        fiscal year shall be 4,000,000 times the applicable percentage shown on such Schedule; provided that, if the company
        shall exceed 100% of the revenue target for the 2016 or 2017 fiscal year, and shall have failed to reach 90% of the target
        for a prior fiscal year, the excess over 100% shall be applied to reduce the deficiency in the prior year(s), and an additional
        number of Units shall vest to reflect the increased revenue for such prior fiscal year.  Any such excess shall be
        applied first to reduce any deficiency for the 2015 fiscal year and then for the 2016 fiscal year.  The vesting of
        the Units shall be effective upon the issuance of the audited financial statements of the Company for the applicable fiscal
        year, and shall be based upon the total revenue of GDSI International as reflected in such financial statements.

 

IMPORTANT: 

 

	*	Except
    as otherwise provided in Appendix A, Employee will not vest in the Restricted Stock Units unless he or she is employed by
    the Company or one of its Subsidiaries through the applicable vesting date.

 

Your
signature below indicates your agreement and understanding that this award is subject to all of the terms and conditions contained
in Appendix A and the Plan. For example, important additional information on vesting and forfeiture of the Restricted Stock
Units is contained in paragraphs 3 through 5 and paragraph 7 of Appendix A.

 

PLEASE
BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS AGREEMENT.

  

	GLOBAL DIGITAL SOLUTIONS, INC.	 	EMPLOYEE
	 	 	 	 
	By:	/s/
    Richard J. Sullivan	 	 /s/
    Stephen L. Norris
	 	Richard
    J. Sullivan	 	STEPHEN
    L. NORRIS
	 	Chief
    Executive Officer	 	 
	 	Date: 8/25/14	 	Date: 8/25/14

  

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APPENDIX
A

 

TERMS
AND CONDITIONS OF RESTRICTED STOCK UNITS

 

1. Grant.
The Company hereby grants to the Employee under the Plan an award of the Number of Restricted Stock Units set forth on the Notice
of Grant, subject to all of the terms and conditions in this Agreement and the Plan. As of the date of grant, the Employee is
an executive officer of the Company who may become subject to Section 16 of the 1934 Act when the Company files a Form 8-A. When
Shares are paid to the Employee in payment for the Restricted Stock Units, par value will be deemed paid by the Employee for each
Restricted Stock Unit by past services rendered by the Employee, and will be subject to the appropriate tax withholdings. Unless
otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Plan.

 

2. Company’s
Obligation to Pay. Each Restricted Stock Unit has a value equal to the Fair Market Value of a Share on the date that the Restricted
Stock Unit is granted. Unless and until the Restricted Stock Units have vested in the manner set forth in paragraphs 3 through
5, the Employee will have no right to payment of such Restricted Stock Units. Prior to actual payment of any vested Restricted
Stock Units, such Restricted Stock Units will represent an unsecured obligation. Payment of any vested Restricted Stock Units
will be made in whole Shares only.

 

3. Vesting
Schedule/Period of Restriction. Except as provided in paragraphs 4 and 5, and subject to paragraph 7, the Restricted
Stock Units awarded by this Agreement shall vest in accordance with the vesting provisions set forth on the first page of this
Agreement. Restricted Stock Units shall not vest in the Employee in accordance with any of the provisions of this Agreement unless
the Employee shall have been continuously employed by the Company or by one of its Subsidiaries from the Grant Date until the
date the Restricted Stock Units are otherwise scheduled to vest.

 

4. Modifications
to Vesting Schedule.

 

(a) Vesting
upon Leave of Absence. In the event that the Employee takes an authorized leave of absence (“LOA”), the Restricted
Stock Units awarded by this Agreement that are scheduled to vest shall be modified as follows:

 

(i)
if the duration of the Employee’s LOA is sixty (60) days or less, the vesting schedule set forth on the first page
of this Agreement shall not be affected by the Employee’s LOA.

 

(ii)
if the duration of the Employee’s LOA is greater than sixty (60) days, the scheduled vesting of any Restricted Stock
Units awarded by this Agreement that are not then vested shall be deferred for a period of time equal to the duration of the Employee’s
LOA.

 

(b) Death
or Disability of Employee. In the event that the Employee incurs a Termination of Service due to his or her death or Disability,
the Employee shall immediately vest as to the number of Restricted Stock Units that would have vested had the Employee remained
an employee of the Company or one of its Subsidiaries through the end of the fiscal year in which his or her death or Disability
occurred.

 

For
purposes of this Agreement,  “Termination of Service” means (a) in
the case of an Employee, a cessation of the employee-employer relationship between the Employee and the Company or a Subsidiary
for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement,
or the disaffiliation of a Subsidiary, but excluding any such termination where there is a simultaneous reemployment by the Company
or a Subsidiary; (b) in the case of a Consultant, a cessation of the service relationship between the Consultant and the
Company or a Subsidiary for any reason, including, but not by way of limitation, a termination by resignation, discharge, death,
Disability, or the disaffiliation of a Subsidiary, but excluding any such termination where there is a simultaneous re-engagement
of the consultant by the Company or a Subsidiary; and (c) in the case of a Nonemployee Director, a cessation of the Director’s
service on the Board for any reason, including, but not by way of limitation, a termination by resignation, death, Disability,
Retirement or non-reelection to the Board.

 

In
the event that any applicable law limits the Company’s ability to accelerate the vesting of this award of Restricted Stock
Units, this paragraph 4(b) shall be limited to the extent required to comply with applicable law.

 

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(c) Change
in Control.

 

(i)
In the event of a Change in Control, this award shall be subject to the definitive agreement governing such Change in Control.
Such agreement, without the Employee’s consent and notwithstanding any provision to the contrary in this Agreement or the
Plan, must provide for one of the following: (a) the assumption of this award by the surviving corporation or its parent;
(b) the substitution by the surviving corporation or its parent of an award with substantially the same terms as this award;
or (c) the cancellation of this award after full vesting and payment to the Employee of the Shares then subject to the award;
provided, however, that such Shares shall be considered delivered effective as of immediately prior to the Change in Control so
as to enable the Employee to participate in the Change in Control transaction. In the event the definitive agreement does not
provide for one of the foregoing alternatives with respect to the treatment of this award, this award shall have the treatment
specified in clause (c) of the preceding sentence. The Committee may, in its sole discretion, accelerate the vesting of this
award in connection with any of the foregoing alternatives. For purposes of this Agreement, “Change in Control” means
the occurrence of any of the following events: (a) any “person” (as such term is used in Sections 13(d) and 14(d)
of the 1934 Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the 1934 Act), directly or indirectly,
of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s
then outstanding voting securities; (b) the consummation of the sale or disposition by the Company of all or substantially
all of the Company’s assets; (c) a change in the composition of the Board occurring within a one-year period, as a
result of which fewer than a majority of the directors are Incumbent Directors; or (d) the consummation of a merger or consolidation
of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented
by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.
“Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Directors at the time
of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual
or threatened proxy contest relating to the election of directors to the Company). Notwithstanding the foregoing, if the Employee
is a party to a change of control agreement with the Company, the definition of “change of control” as defined in
the change of control agreement will supersede the above definition.

 

(ii)
Notwithstanding anything herein to the contrary, in the event the Employee incurs a Termination of Service within twelve (12) months
following a Change in Control on account of a termination by the Company (or any Subsidiary) for any reason other than Cause or
on account of a termination by the Employee for Good Reason, then this award immediately will vest in one hundred percent (100%) of
the Restricted Stock Units subject to this Restricted Stock Unit award.

 

For
purposes of this Agreement, “Good Reason” means without the Employee’s written consent (a) a material reduction
in the Employee’s authority, duties or responsibilities compared to the Employee’s authority, duties and responsibilities
immediately prior to the Change of Control that are substantially inconsistent with the Employee being a senior executive of the
Company (or a Subsidiary), (b) the Employee’s principal work location being moved more than 35 miles, from the location
immediately prior to the Change in Control or (c) the Company (or a Subsidiary) materially reducing the Employee’s
base salary (unless the base salaries of substantially all other senior executives of the Company are similarly reduced). Employee
will not resign for Good Reason without first providing the Company with written notice of the acts or omissions constituting
the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good
Reason” and the Company must have an opportunity within thirty (30) days following delivery of such notice to cure
the Good Reason condition. Notwithstanding the foregoing, if the Employee is a party to a change of control agreement with the
Company, the definition of “good reason” as defined in the change of control agreement will supersede the above definition.

 

For
purposes of this Agreement, “Cause” means (a) the Employee’s failure to perform (other than due to Disability
or death) the duties of the Employee’s position (as they may exist from time to time) to the reasonable satisfaction of
the Company (or any Subsidiary) after receipt of a written warning and at least 15 days’ opportunity to for the Employee
to cure the failure, (b) any act of dishonesty taken by the Employee in connection with the Employee’s responsibilities
as an employee that is intended to result in the Employee’s substantial personal enrichment, (c) the Employee’s
conviction or plea of no contest to a crime that negatively reflects on the Employee’s fitness to perform the Employee’s
duties or harms the Company’s (or any Subsidiary’s) reputation or business, (d) the Employee’s willful
misconduct that is injurious to the Company (or any Subsidiary), or (e) the Employee’s willful violation of a material
Company (or Subsidiary) policy. The preceding definition shall not be deemed to be inclusive of all the acts or omissions that
the Company (or any Subsidiary) may consider as grounds for the dismissal or discharge of the Employee or any other individual
in the service of the Company (or any Subsidiary). Notwithstanding the foregoing, if the Employee is a party to a change of control
agreement with the Company, the definition of “cause” as defined in the change of control agreement will supersede
the above definition.

 

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5. Committee
Discretion. The Committee, in its discretion, may accelerate the vesting of the balance, or some lesser portion of the balance,
of the Restricted Stock Units at any time, subject to the terms of the Plan. If so accelerated, such Restricted Stock Units will
be considered as having vested as of the date specified by the Committee. If the Committee, in its discretion, accelerates the
vesting of the balance, or some lesser portion of the balance, of the Restricted Stock Units and the Restricted Stock Units are
“deferred compensation” within the meaning of Section 409A, the payment of such accelerated Restricted Stock
Units nevertheless shall be made at the same time or times as if such Restricted Stock Units had vested in accordance with the
vesting schedule set forth in the Notice of Grant (whether or not the Employee remains employed by the Company or by one of its
Subsidiaries as of such date(s)). Notwithstanding the foregoing, if such Restricted Stock Units are accelerated in connection
with the Employee’s Termination of Service (other than due to death), the Restricted Stock Units that vest on account of
the Employee’s Termination of Service will not be considered due or payable until the Employee has a “separation from
service” within the meaning of Section 409A. In addition, if the Employee is a “specified employee” within
the meaning of Section 409A at the time of the Employee’s separation from service, then any such accelerated Restricted
Stock Units otherwise payable within the six (6) month period following the Employee’s separation from service instead
will be paid on the date that is six (6) months and one (1) day following the date of the Employee’s separation
from service, unless the Employee dies following his or her separation from service, in which case, the accelerated Restricted
Stock Units will be paid to the Employee’s estate as soon as practicable following his or her death, subject to paragraph
9. Thereafter, such Restricted Stock Units shall continue to be paid in accordance with the vesting schedule set forth on the
first page of this Agreement. For purposes of this Agreement, “Section 409A” means Section 409A of the U.S. Internal
Revenue Code of 1986, as amended, and any final Treasury Regulations and other Internal Revenue Service guidance thereunder, as
each may be amended from time to time (“Section 409A”).

 

6. Payment
after Vesting. Any Restricted Stock Units that vest in accordance with paragraphs 3 through 4 will be paid to the Employee
(or in the event of the Employee’s death, to his or her estate) in Shares as soon as practicable following the date of vesting,
subject to paragraph 9, but in no event later than the applicable two and one-half (2 1/2) month
period of the “short-term deferral” rule set forth in the Section 1.409A-1(b)(4) of the Treasury Regulations
issued under Section 409A. Notwithstanding the foregoing, if the Restricted Stock Units are “deferred compensation”
within the meaning of Section 409A, the vested Restricted Stock Units will be released to the Employee (or in the event of
the Employee’s death, to his or her estate) in Shares as soon as practicable following the date of vesting, subject to paragraph
9, but in no event later than the end of the calendar year that includes the date of vesting or, if later, the fifteen (15th) day
of the third (3rd) calendar month following the date of vesting (provided that the Employee will not be permitted, directly
or indirectly, to designate the taxable year of the payment). Further, if some or all of the Restricted Stock Units that are “deferred
compensation” within the meaning of Section 409A vest on account of the Employee’s Termination of Service (other
than due to death) in accordance with paragraphs 3 through 4, the Restricted Stock Units that vest on account of the Employee’s
Termination of Service will not be considered due or payable until the Employee has a “separation from service” within
the meaning of Section 409A. In addition, if the Employee is a “specified employee” within the meaning of Section 409A
at the time of the Employee’s separation from service (other than due to death), then any accelerated Restricted Stock Units
will be paid to the Employee no earlier than six (6) months and one (1) day following the date of the Employee’s
separation from service unless the Employee dies following his or her separation from service, in which case, the Restricted Stock
Units will be paid to the Employee’s estate as soon as practicable following his or her death, subject to paragraph 9. Any
Restricted Stock Units that vest in accordance with paragraph 5 will be paid to the Employee (or in the event of the Employee’s
death, to his or her estate) in Shares in accordance with the provisions of such paragraph, subject to paragraph 9. For each
Restricted Stock Unit that vests, the Employee will receive one Share.

 

7. Forfeiture.
Notwithstanding any contrary provision of this Agreement, the balance of the Restricted Stock Units that have not vested pursuant
to paragraphs 3 through 5 at the time of the Employee’s Termination of Service for any or no reason will be forfeited
and automatically transferred to and reacquired by the Company at no cost to the Company.

 

8. Death
of Employee. Any distribution or delivery to be made to the Employee under this Agreement will, if the Employee is then deceased,
be made to the administrator or executor of the Employee’s estate. Any such administrator or executor must furnish the Company
with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Company to establish
the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

 

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9. Withholding
of Taxes. When Shares are issued as payment for vested Restricted Stock Units, the Company (or the employing Subsidiary) will
withhold a portion of the Shares that have an aggregate market value sufficient to pay federal, state, local and foreign income,
social insurance, employment and any other applicable taxes required to be withheld by the Company or the employing Subsidiary
with respect to the Shares, unless the Company, in its sole discretion, either requires or otherwise permits the Employee to make
alternate arrangements satisfactory to the Company for such withholdings in advance of the arising of any withholding obligations.
The number of Shares withheld pursuant to the prior sentence will be rounded up to the nearest whole Share, with no refund for
any value of the Shares withheld in excess of the tax obligation as a result of such rounding. Notwithstanding any contrary provision
of this Agreement, no Shares will be issued unless and until satisfactory arrangements (as determined by the Company) have been
made by the Employee with respect to the payment of any income and other taxes which the Company determines must be withheld or
collected with respect to such Shares. In addition and to the maximum extent permitted by law, the Company (or the employing Subsidiary)
has the right to retain without notice from salary or other amounts payable to the Employee, cash having a sufficient value to
satisfy any tax withholding obligations that the Company determines cannot be satisfied through the withholding of otherwise deliverable
Shares. All income and other taxes related to the Restricted Stock Units award and any Shares delivered in payment thereof are
the sole responsibility of the Employee. By accepting this award, the Employee expressly consents to the withholding of Shares
and to any additional cash withholding as provided for in this paragraph 9.

 

10. Rights
as Stockholder. Neither the Employee nor any person claiming under or through the Employee will have any of the rights or
privileges of a stockholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing
such Shares (which may be in book entry form) will have been issued, recorded on the records of the Company or its transfer agents
or registrars, and delivered to the Employee (including through electronic delivery to a brokerage account). After such issuance,
recordation and delivery, the Employee will have all the rights of a stockholder of the Company with respect to voting such Shares
and receipt of dividends and distributions on such Shares.

 

11. No
Effect on Employment. Subject to any employment contract with the Employee, the terms of such employment will be determined
from time to time by the Company, or the Subsidiary employing the Employee, as the case may be, and the Company, or the Subsidiary
employing the Employee, as the case may be, will have the right, which is hereby expressly reserved, to terminate or change the
terms of the employment of the Employee at any time for any reason whatsoever, with or without good cause. The transactions contemplated
hereunder and the vesting schedule set forth on the first page of this Agreement do not constitute an express or implied promise
of continued employment for any period of time. A leave of absence or an interruption in service (including an interruption during
military service) authorized or acknowledged by the Company or the Subsidiary employing the Employee, as the case may be, shall
not be deemed a Termination of Service for the purposes of this Agreement.

 

12. Address
for Notices. Any notice to be given to the Company under the terms of this Agreement will be addressed to the Company, in
care of its CFO, at 777 South Flagler Drive, Suite 800 West, West Palm Beach, FL 33401 or at such other address as the Company
may hereafter designate in writing.

 

13. Grant
is Not Transferable. Except to the limited extent provided in this Agreement, this grant of Restricted Stock Units and the
rights and privileges conferred hereby will not be sold, pledged, assigned, hypothecated, transferred or disposed of any way (whether
by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process, until the Employee
has been issued Shares in payment of the Restricted Stock Units. Upon any attempt to sell, pledge, assign, hypothecate, transfer
or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution,
attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.

 

14. Restrictions
on Sale of Securities. The Shares issued as payment for vested Restricted Stock Units under this Agreement will be registered
under U.S. federal securities laws and will be freely tradable upon receipt. However, an Employee’s subsequent sale of the
Shares may be subject to any market blackout-period that may be imposed by the Company and must comply with the Company’s
insider trading policies, and any other applicable securities laws.

 

15. Binding
Agreement. Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding
upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

 

16. Additional
Conditions to Issuance of Certificates for Shares. The Company shall not be required to issue any certificate or certificates
for Shares hereunder prior to fulfillment of all the following conditions: (a) the admission of such Shares to listing on
all stock exchanges on which such class of stock is then listed; (b) the completion of any registration or other qualification
of such Shares under any U.S. state or federal law or under the rulings or regulations of the Securities and Exchange Commission
or any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable;
(c) the obtaining of any approval or other clearance from any U.S. state or federal governmental agency, which the Committee
shall, in its absolute discretion, determine to be necessary or advisable; and (d) the lapse of such reasonable period of
time following the date of vesting of the Restricted Stock Units as the Committee may establish from time to time for reasons
of administrative convenience.

 

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17. Plan
Governs. This Agreement is subject to all the terms and provisions of the Plan. In the event of a conflict between one or
more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will govern.

 

18. Committee
Authority. The Committee will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration,
interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but
not limited to, the determination of whether or not any Restricted Stock Units have vested). All actions taken and all interpretations
and determinations made by the Committee in good faith will be final and binding upon the Employee, the Company and all other
interested persons. No member of the Committee will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or this Agreement.

 

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

 

20. Agreement
Severable. In the event that any provision in this Agreement will be held invalid or unenforceable, such provision will be
severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions
of this Agreement.

 

21. Modifications
to the Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. The Employee
expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements
other than those contained herein. Modifications to this Agreement or the Plan can be made only in an express written contract
executed by a duly authorized officer of the Company. Notwithstanding anything to the contrary in the Plan or this Agreement,
the Company reserves the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without
the consent of the Employee, to comply with Section 409A or to otherwise avoid imposition of any additional tax or income
recognition under Section 409A prior to the actual payment of Shares pursuant to this award of Restricted Stock Units, provided
that any such revisions shall not materially reduce the benefits intended to be conferred by this Agreement. However, in no event
will the Company be obligated to make any such revision and in all events, the Employee will be solely responsible for any taxes
that may be owed under Section 409A on account of this award of Restricted Stock Units.

 

22. Amendment,
Suspension or Termination of the Plan. By accepting this Restricted Stock Units award, the Employee expressly warrants that
he or she has received a right to receive stock under the Plan, and has received, read and understood a description of the Plan.
The Employee understands that the Plan is discretionary in nature and may be amended, suspended or terminated by the Company at
any time.

 

23. Labor
Law. By accepting this Restricted Stock Units award, the Employee acknowledges that: (a) the grant of these Restricted
Stock Units is a one-time benefit which does not create any contractual or other right to receive future grants of Restricted
Stock Units, or benefits in lieu of Restricted Stock Units; (b) all determinations with respect to any future grants, including,
but not limited to, the times when the Restricted Stock Units shall be granted, the number of Restricted Stock Units subject to
each Restricted Stock Unit award and the time or times when the Restricted Stock Units shall vest, will be at the sole discretion
of the Company; (c) the Employee’s participation in the Plan is voluntary; (d) the value of these Restricted Stock
Units is an extraordinary item of compensation which is outside the scope of the Employee’s employment contract, if any;
(e) these Restricted Stock Units are not part of the Employee’s normal or expected compensation for purposes of calculating
any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits
or similar payments; (f) the vesting of these Restricted Stock Units will cease upon termination of employment for any reason
except as may otherwise be explicitly provided in the Plan or this Agreement; (g) the future value of the underlying Shares
is unknown and cannot be predicted with certainty; (h) these Restricted Stock Units have been granted to the Employee in
the Employee’s status as an employee of the Company or its Subsidiaries; (i) any claims resulting from these Restricted
Stock Units shall be enforceable, if at all, against the Company; and (j) there shall be no additional obligations for any
Subsidiary employing the Employee as a result of these Restricted Stock Units.

 

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24. Disclosure
of Employee Information. By accepting this Restricted Stock Units award, the Employee consents to the collection, use and
transfer of personal data as described in this paragraph. The Employee understands that the Company and its Subsidiaries hold
certain personal information about him or her, including his or her name, home address and telephone number, date of birth, social
security or identity number, salary, nationality, job title, any shares of stock or directorships held in the Company, details
of all awards of Restricted Stock Units or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested
or outstanding in his or her favor, for the purpose of managing and administering the Plan (“Data”). The Employee
further understands that the Company and/or its Subsidiaries will transfer Data among themselves as necessary for the purpose
of implementation, administration and management of his or her participation in the Plan, and that the Company and/or any of its
Subsidiaries may each further transfer Data to any third parties assisting the Company in the implementation, administration and
management of the Plan. The Employee understands that these recipients may be located in the European Economic Area, or elsewhere,
such as in the U.S. The Employee authorizes the Company to receive, possess, use, retain and transfer the Data in electronic or
other form, for the purposes of implementing, administering and managing his or her participation in the Plan, including any requisite
transfer to a broker or other third party with whom he or she may elect to deposit any Shares of stock acquired from this award
of Restricted Stock Units of such Data as may be required for the administration of the Plan and/or the subsequent holding of
Shares of stock on his or her behalf. The Employee understands that he or she may, at any time, view the Data, require any necessary
amendments to the Data or withdraw the consent herein in writing by contacting the Equity Programs Department for the Company
and/or its applicable Subsidiaries.

 

25. Notice
of Governing Law. This award of Restricted Stock Units shall be governed by, and construed in accordance with, the laws of
the State of New York, without regard to principles of conflict of laws.

 

26. Non-Compete.
The Employee agrees that for the period commencing on the date the Employee executes this Agreement and ending on the date occurring
twelve (12) months after the Employee incurs a Termination of Service (the “Obligations Period”), the Employee,
directly or indirectly, whether as an employee, owner, sole proprietor, partner, director, member, consultant, agent, founder,
co-venturer or otherwise, will (a) not engage, participate or invest in any business activity anywhere in the world that
is directly competitive with the principal products or services of the Company and its subsidiaries (the “Businesses”)
(except that it will not be a violation of this paragraph 26 for the Employee to own as a passive investment not more than
one percent of any class of publicly traded securities of any entity); nor (b) solicit business from any of the Businesses’
customers and users on behalf of any business that directly competes with the Businesses. Notwithstanding any contrary provision
of this Agreement, the Committee, in its discretion, may choose to waive the requirements of this paragraph 26 (including, but
not limited to, upon the advice of legal counsel to the Company), and shall waive such requirements in circumstances where enforceability
of this paragraph 26 is precluded by applicable law.

 

27. Non-Solicit.
The Employee agrees that for the Obligations Period, the Employee will not either directly or indirectly solicit, induce, recruit,
or encourage any of the Company’s employees to leave their employment, or take away such employees, either for the benefit
of the Employee or on behalf of another entity; provided, however, this provision is not enforceable with respect to the Employee’s
administrative assistant.

   

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Schedule
1

 

	Revenue Targets
	July 1, 2014 - June 30, 2015	 	$	9,911,000	 
	July 1, 2015 - June 30, 2016	 	$	18,921,000	 
	July 1, 2016 - June 30, 20175	 	$	24,327,000	 

 

	Percentage vesting based on revenue targets:	 
	Revenue as a % of Target	 	 	% Vest	 
	 	90	%	 	 	-	 	 	 	100	%	 	 	100	%
	 	80	%	 	 	-	 	 	 	90	%	 	 	90	%
	 	70	%	 	 	-	 	 	 	80	%	 	 	80	%
	 	60	%	 	 	-	 	 	 	70	%	 	 	70	%
	 	50	%	 	 	-	 	 	 	60	%	 	 	60	%
	 	40	%	 	 	-	 	 	 	50	%	 	 	50	%
	 	30	%	 	 	-	 	 	 	40	%	 	 	40	%
	 	20	%	 	 	-	 	 	 	30	%	 	 	30	%
	 	10	%	 	 	-	 	 	 	20	%	 	 	20	%
	 	less than	 	 	 	10	%	 	 	0	%

 

 

Schedule 1Exhibit 10.8

THE CLOROX
COMPANY
ANNUAL INCENTIVE PLAN
As Amended and Restated Effective
as of September 17, 2013 

1.
Purpose. 

     The purpose of The Clorox Company Annual Incentive Plan (the "Plan") is
to attract and retain the best available personnel for positions of substantial
responsibility and to provide an incentive for employees of The Clorox Company,
a Delaware corporation (the "Company") and its subsidiaries to recognize and
reward those employees. The Company’s executives are eligible to earn short-term
incentive awards under this Plan and under the Company’s Executive Incentive
Compensation Plan. 

2.
Definitions. The following terms will have the following
meaning for purposes of the Plan:

	              	(a)	       	"Award" means a bonus paid in
  cash.
	       	
	       	(b)	       	"Board" means the Board of Directors of the
      Company.
	              	       
	       	(c)	       	"Chief Executive Officer" means the chief
      executive officer of the Company.
	              	       
	       	(d)	       	"Code" means the Internal Revenue Code of
      1986, as amended.
	              	       
	       	(e)	       	"Committee" means the Management Development
      and Compensation Committee of the Board, or such other Committee
      designated by the Board to administer the Plan.
	              	       
	       	(f)	       	"Employee" means any person employed by the
      Company or any Subsidiary.
	              	       
	       	(g)	       	"Executive Committee" means the executives
      who are members of the Company’s management executive
  committee.
	              	       
	       	(h)	       	"Vice President" means a regular salaried
      Employee scheduled to work more than 20 hours per week who is in salary
      grade 30 or above and who is not a member of the Executive Committee, but
      is a Vice President.
	              	       
	       	(i)	       	"Participant" means an Employee selected by
      the Committee to participate in the Plan.
	              	       
	       	(j)	       	
      "Retirement" means termination of
      employment with the Company, other than by reason of death or disability,
      (1) at age 65, (2) at least age 55 with at least ten years of vesting
      service, which solely for purposes of this Plan, shall
      be calculated under Article III of The Clorox Company 401(k) Plan (the
      “401(k) Plan”) entitled “Service” along with any other relevant provisions
      of the 401(k) Plan necessary or desirable to give full effect thereto, or
      any successor provisions, regardless of the status of the Participant with
      respect to the 401(k) Plan or (3) with at least 20 years of vesting
      service (as defined in clause (2)).

	              	(k)	       	"Subsidiary" means any corporation in which
      the Company, directly or indirectly, controls 50 percent or more of the
      total combined voting power of all classes of stock.
	              	       
	              	(l)	       	"Year" means a fiscal year of the
      Company.

3. Awards. 

	       	(a)	       	Within 90 days after the beginning of each
      Year, the Committee will select Participants for the Year and establish in
      writing the method by which the Awards will be calculated for that Year.
      The Committee may provide for payment of all or part of the Award in the
      case of retirement, death, disability or change of ownership of control of
      the Company or a Subsidiary during the Year in accordance with Section
      409A (as defined in Section 15 below).
		       
		(b)		For the Chief Executive Officer and the
      Executive Committee, the Committee shall determine and certify the amount
      of the Award, if any, to be made. The Committee may increase, decrease or
      eliminate, any Award calculated under the methodology established in
      accordance with paragraph (a) in order to reflect additional
      considerations relating to performance.
		       
		(c)		For Vice Presidents and all other
      participants, the Chief Executive Officer shall determine and certify the
      amount of the Award, if any, to be made. The Chief Executive Officer may
      increase, decrease or eliminate, any Award calculated under the
      methodology established in accordance with paragraph (a) in order to
      reflect additional considerations relating to performance.
	       	 	       	
		(d)		
      Awards will be paid to
      the Participants following certification and no later than ninety (90)
      days following the close of the Year with respect to which the Awards are
      made, unless all or a portion of a Participant's Award is deferred
      pursuant to the Participant's timely and validly made election made in
      accordance with such terms as the Company, the Board or a committee
      thereof may determine. A timely election is one that satisfies the
      requirements of Section 409A (as defined in Section 15 below) and
      typically for performance based compensation must be made at least six
      months before the end of the Performance Period, provided that the
      Participant performs services continuously from the later of the beginning
      of the Performance Period or the date the performance criteria are
      established through the date an election is made and provided further that
      in no event may a deferral be made after such compensation has become
      readily ascertainable as set forth in Section 409A (as defined in Section
      15 below). 

	  2

	       	(e)	       	
      The Company shall
      withhold from the payment of any Award hereunder any amount required to be
      withheld for taxes. 

	       	 	 	       
	       	(f)	       	
      In the event of a
      restatement of the Company's financial results to correct a material error
      resulting from fraud or intentional misconduct, as determined by the Board
      or the Committee, the Board, or the Committee, will review all
      compensation that was made pursuant to this Plan on the basis of having
      met or exceeded specific performance targets for performance periods
      beginning after June 30, 2008 which occur during the years for which
      financial statements are restated. If a lower payment of performance-based
      compensation would have been made to the Participants based upon the
      restated financial results, the Board or the Committee, as applicable,
      will, to the extent permitted by governing law and subject to the
      following sentence, seek to recoup for the benefit of the Company the
      amount by which the individual Participant's Award(s) for the restated
      years exceeded the lower payment that would have been made based on the
      restated financial results, plus a reasonable rate of interest; provided,
      however, that neither the Board nor the Committee will seek to recoup
      Awards paid more than three years prior to the date on which the Company
      announces the need for the applicable financial statements to be restated.
      The Board, or the Committee, will only seek to recoup Awards paid to
      Participants whose fraud or intentional misconduct was a significant
      contributing factor to the need for such restatement, as determined by the
      Board or the Committee, as applicable. 

4. Termination of Employment. 

     Except as may be specifically provided in an Award pursuant to Section
3(a), a Participant shall have no right to an Award under the Plan for any Year
in which the Participant is not actively employed by the Company or its
Subsidiaries on June 30 of such Year. When establishing Awards each Year, the
Committee may also provide that in the event a Participant is not employed by
the Company or its Subsidiaries on the date on which the Award is paid, the
Participant may forfeit his or her right to the Award paid under the Plan.

5. Administration. 

     The Plan will be administered by the
Committee. The Committee will have the authority to interpret the Plan, to
prescribe rules relating to the Plan and to make all determinations necessary or
advisable in administering the Plan. Decisions of the Committee with respect to
the Plan will be final and conclusive. 

6. Unfunded Plan. 

     Awards under the Plan will be paid
from the general assets of the Company, and the rights of Participants under the
Plan will be only those of general unsecured creditors of the Company.

7. Amendment or Termination of the Plan. The Committee may from time to time suspend,
revise, amend or terminate the Plan. 

3

8. Applicable Law. 

     To the extent not preempted by federal law, the Plan shall be construed
in accordance with and governed by the laws of the State of California,
excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Plan to the substantive law of
another jurisdiction. 

9. No Rights to Employment. 

     Nothing contained in the Plan shall
give any person the right to be retained in the employment of the Company or any
of its Subsidiaries. The Company reserves the right to terminate any Participant
at any time for any reason notwithstanding the existence of the Plan.

10. No Assignment. 

     Except as otherwise required by
applicable law, any interest, benefit, payment, claim or right of any
Participant under the Plan shall not be sold, transferred, assigned, pledged,
encumbered or hypothecated by any Participant and shall not be subject in any
manner to any claims of any creditor of any Participant or beneficiary, and any
attempt to take any such action shall be null and void. During the lifetime of
any Participant, payment of an Award shall only be made to such Participant.
Notwithstanding the foregoing, the Committee may establish such procedures as it
deems necessary for a Participant to designate a beneficiary to whom any amounts
would be payable in the event of any Participant's death. 

11. Gender, Number and References. 

     Except where otherwise indicated by
the context, any masculine term used herein also shall include the feminine, the
plural shall include the singular and the singular shall include the plural. Any
reference in the Plan to a Section of the Plan either in the Plan or to an act
or code or to any section thereof or rule or regulation thereunder shall be
deemed to refer to such Section of the Plan, act, code, section, rule or
regulation, as may be amended from time to time, or to any successor Section of
the Plan, act, code, section, rule or regulation. 

12. Severability. 

     If any one or more of the provisions
contained in this Plan, or any application thereof, shall be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and all other applications thereof shall
not in any way be affected or impaired thereby. This Plan shall be construed and
enforced as if such invalid, illegal or unenforceable provision has never
comprised a part hereof, and the remaining provisions hereof shall remain in
full force and effect and shall not be affected by the invalid, illegal or
unenforceable provision or by its severance herefrom. In lieu of such invalid,
illegal or unenforceable provisions there shall be added automatically as a part
hereof a provision as similar in terms and economic effect to such invalid,
illegal or unenforceable provision as may be possible and be valid, legal and
enforceable.

4

13. Requirements of Law. 

     The issuance of cash under the Plan shall be subject to all applicable
laws and to such approvals by any governmental agencies or national securities
exchanges as may be required. 

14. Non-Exclusive Plan. 

     The adoption of the Plan by the
Board shall not be construed as creating any limitations on the power of the
Board or a committee thereof to adopt such other incentive arrangements as it
may deem desirable. 

15. Section 409A Compliance. 

     To the extent applicable, it is
intended that this Plan and any Awards granted hereunder comply with the
requirements of Section 409A of the Code and any related regulations or other
guidance promulgated with respect to such Section by the U.S. Department of the
Treasury or the Internal Revenue Service ("Section 409A"). Any provision that
would cause the Plan or any Award granted hereunder to fail to satisfy Section
409A shall have no force or effect until amended to comply with Section 409A,
which amendment may be retroactive to the extent permitted by Section 409A.

5

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