Document:

EX-10.3

 Exhibit 10.3 

Performance Share Unit Award Agreement 

2014 
 AN AWARD (“AWARD”) FOR
PERFORMANCE SHARE UNITS (“UNITS”), representing a number of shares of Nordstrom Common Stock (“Common Stock”) as noted in the 2014 Notice of Award of Performance Share Units (the “Notice”), of Nordstrom, Inc., a
Washington Corporation (the “Company”), is hereby granted to the Recipient (“Unit holder”) on the date set forth in the Notice, subject to the terms and conditions of this Agreement. The Units are also subject to the terms,
definitions and provisions of the Nordstrom, Inc. 2010 Equity Incentive Plan (the “Plan”), adopted by the Board of Directors of the Company (the “Board”) and approved by the Company’s shareholders, which is incorporated in
this Agreement. To the extent inconsistent with this Agreement, the terms of the Plan shall govern. Terms not defined herein shall have the meanings as set forth in the Plan. The Compensation Committee of the Board (the “Compensation
Committee”) has the discretionary authority to construe and interpret the Plan and this Agreement. All decisions of the Compensation Committee upon any question arising under the Plan or under this Agreement shall be final and binding on all
parties. The Award and the Units issued thereunder are subject to the following terms and conditions: 

 

	1.	VESTING AND SETTLEMENT OF UNITS 

 Units shall vest and be settled in accordance with
the provisions of the Plan as follows: 
  

	 	(a)	Vesting 

 Each vested Unit is equal in value to one share of Common Stock. Except as
set forth in Section 4, Units shall vest at the applicable percentage when the Compensation Committee certifies that the Company’s Total Shareholder Return (TSR) relative to the TSR of companies in the Standard & Poor’s 500
(the “Peer Group”) exceeds the percentile rankings set forth below. For purposes of determining the Company’s TSR relative to the TSR of other companies in the Peer Group, the share price of Common Stock, and the share prices of the
companies in the Peer Group, are based on the thirty trading day closing price average immediately prior to the start of the three fiscal-year period from 2/2/2014 to 1/28/2017 (“the Performance Cycle”), and the thirty trading day closing
price average immediately prior to the end of the Performance Cycle. The companies in the Peer Group shall be determined on the first day of the Performance Cycle and remain fixed for the duration of the Performance Cycle, even if the companies in
the Standard & Poor’s 500 change. In the event of a change in control of a company included within the Peer Group during the Performance Cycle where shareholders of that company receive cash, securities or other assets in exchange for
their shares, the TSR for such company for the Performance Cycle shall be fixed as of the date of the change of control and calculated including the amount received by the company’s shareholders in that transaction.

			
	 Percentile Rank

Among Peers
	  	 PSUs Earned

as % of Grant

	> 90%	  	175%
	> 80%	  	150%
	> 75%	  	125%
	> 65%	  	100%
	> 50%	  	75%
	£ 50%	  	0%

 While the relative percentile rankings may change during the Performance Cycle based upon mergers,
acquisitions, dissolutions and other industry consolidation involving the companies in the Peer Group, the application of the percentile earned is applied consistently. Generally, Units will be earned if the Nordstrom TSR for the Performance Cycle
is in the top half of performers relative to the other companies in the Peer Group. Units vest following Compensation Committee certification of the percentage earned. 
  

	 	(b)	Settlement 

 Earned Units shall be settled upon vesting, unless the Unit holder has
elected to defer the Units into the Executive Deferred Compensation Plan (EDCP) in accordance with its rules. Upon deferral, the vested Units (and their subsequent settlement and payment) shall be governed by the terms and conditions of the EDCP, as
that Plan may be amended from time to time by the Company. 
 Unless earlier deferred into the EDCP, the Unit holder shall elect (during a
period prior to settlement as prescribed by and in accordance with procedures established by the Company) to settle the Units upon vesting in either one share of Common Stock for each

 

  

					
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 vested Unit or receive an equivalent amount of cash for each vested Unit. The Unit holder may
also elect to receive a combination of cash and stock. In the event the Unit holder does not or is unable to make such a settlement election, the Units shall be settled in stock. In the event the Units are settled in cash, the amount of cash will be
determined on the basis of the closing price of Common Stock on the New York Stock Exchange on the last day of the Performance Cycle. 
  

	 	(c)	Withholding Taxes 

 No stock certificates or cash will be distributed to the Unit
holder, or amounts deferred into the EDCP, unless the Unit holder has made acceptable arrangements to pay any withholding taxes that may be due as a result of the settlement of this Award. These arrangements may include withholding shares of Common
Stock that otherwise would be distributed when the Units are settled. The fair market value of the shares required to cover withholding will be applied to the withholding of taxes prior to the Unit holder receiving the remaining shares or the cash
value of those shares. 
  

	 	(d)	Restrictions on Resale 

 The Unit holder agrees not to sell any shares of Common Stock
at a time when applicable laws or Company policies prohibit a sale. This restriction will apply as long as the Unit holder is an employee, consultant or director of the Company or a subsidiary or affiliate of the Company. 

 

	2.	ACCEPTANCE OF UNITS 

 Although the Company may or may not require the Unit
holder’s signature upon accepting the Award, the Unit holder remains subject to the terms and conditions of this Agreement. 
  

	3.	NONTRANSFERABILITY OF UNITS 

 The Units may not be sold, pledged, assigned or
transferred in any manner except in the event of the Unit holder’s death. In the event of the Unit holder’s death, the Units may be transferred to the person indicated on a valid Nordstrom Beneficiary Designation form, or if no Beneficiary
Designation form is on file with the Company, then to the person to whom the Unit holder’s rights have passed by will or the laws of descent and distribution. Except as set forth in Section 4 below, the Units may be settled during the
lifetime of the Unit holder only by the Unit holder or by the guardian or legal representative of the Unit holder. The terms of the Award shall be binding upon the executors, administrators, heirs and successors of the Unit holder. 

 

	4.	SEPARATION OF EMPLOYMENT 

 Except as set forth below, Units vest and may only be
settled while the Unit holder is an employee of the Company. If the Unit holder’s employment is terminated, the Units shall continue to vest pursuant to the schedule set forth in

 
subparagraph 1(a) above, and the Unit holder or his or her legal representative shall have the right to settlement of the Units after such termination only as follows: 

 

	 	(a)	If the Unit holder dies while employed by the Company, the person named on the Unit holder’s Beneficiary Designation form shall be entitled to settlement of the Units, to the same extent to which the Unit holder
would have been entitled prior to death. If the Units were granted at least six months prior to the death of the Unit holder while employed by the Company, the Unit holder’s beneficiary shall be entitled to a prorated distribution with respect
to vested Units based on the period of service by the Unit holder during the term of this Agreement. If no valid Beneficiary Designation form is on file with the Company, then the person to whom the Unit holder’s rights have passed by will or
the laws of descent and distribution shall be entitled to settlement of the Units. If the Units were granted less than six months prior to death, the Units shall be forfeited as of the date of death with no rights to a prorated distribution at
settlement. 

  

	 	(b)	If the Unit holder is separated due to his or her disability, as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), the Units were granted at least six months prior
to such separation, and the Unit holder provides Nordstrom Leadership Benefits with reasonable documentation of his or her disability, the Unit holder (or his or her beneficiary) shall be entitled to a prorated distribution with respect to vested
Units based on the period of service during the term of this Agreement. If the Units were granted less than six months prior to separation due to the Unit holder’s disability, the Units shall be forfeited as of the date of separation with no
rights to a prorated distribution at settlement. 

  

	 	(c)	If the Unit holder terminates employment after having met any of the requirements set forth below, and the Units were granted at least six months prior to the termination date, the Unit holder (or his or her
beneficiary) shall be entitled to a prorated distribution with respect to vested Units based on the period of service during the term of this Agreement: 

  

	 	(i)	the Unit holder was born on or before March 3, 1956; 

  

	 	(ii)	the Unit holder was born on or before March 3, 1961, but after March 3, 1956, and as of March 3, 2014 had 10 continuous years of service to the Company from the most recent hire date with the Company or a
Company subsidiary; or 

  

	 	(iii)	the Unit holder has attained age 55 with 10 continuous years of service to the Company from the most recent hire date with the Company or a Company subsidiary.

 

  

					
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 If the Units were granted less than six months prior to termination, such Units shall be
forfeited as of the date of termination with no rights to a prorated distribution at settlement. 
  

	 	(d)	If the Unit holder’s employment is terminated due to his or her embezzlement or theft of Company funds, defraudation of the Company, violation of Company rules, regulations or policies, or any intentional act that
harms the Company, such Units, to the extent not vested and settled as of the date of termination, shall be forfeited as of that date. 

  

	 	(e)	If the Unit holder is separated for any reason other than those set forth in subparagraphs (a), (b), (c) and (d) above, Units, to the extent not vested and settled as of the date of his or her separation,
shall be forfeited as of that date. 

 Notwithstanding anything above to the contrary, if at any time during the term of this
Award, the Unit holder directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director or in any other capacity, engages or assists any third party in engaging in any business
competitive with the Company; divulges any confidential or proprietary information of the Company to a third party who is not authorized by the Company to receive the confidential or proprietary information; or improperly uses any confidential or
proprietary information of the Company, then the post-separation proration of Units and settlement rights set forth above shall cease immediately, and all outstanding vested but not settled and unvested portions of the Award shall be forfeited. 

 

	5.	TERM OF UNITS 

 Units not certified by the Compensation Committee as having vested as
of the end of the Performance Cycle for which the Units were awarded shall be forfeited. 
  

	6.	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION 

 The number and kind of shares of Common
Stock subject to this Award shall be appropriately adjusted pursuant to the Plan to reflect any stock dividend, stock split, split-up, extraordinary dividend distribution, or any combination or exchange of shares, however accomplished. 

 

	7.	ADDITIONAL UNITS 

 The Compensation Committee may or may not grant the Unit holder
additional Units in the future. Nothing in this Award or any future Award should be construed as suggesting that additional Unit awards to the Unit holder will be forthcoming. 

 

	8.	LEAVES OF ABSENCE 

 For purposes of this Award, the Unit holder’s service does not
terminate due to a military leave, a medical leave or another bona fide leave of absence if the leave was approved by the

 
Company in writing and if continued crediting of service is required by the terms of the leave or by applicable law. But, service terminates when the approved leave ends unless the Unit holder
immediately returns to active work. 
  

	9.	RIGHTS AS A SHAREHOLDER 

 Neither the Unit holder nor the Unit holder’s
beneficiary or representative shall have any rights as a shareholder with respect to any Common Stock subject to these Units, unless and until the Units vest and are settled in shares of Common Stock of the Company. 

 

	10.	NO RETENTION RIGHTS 

 Nothing in this Agreement or in the Plan shall give the Unit
holder the right to be retained by the Company (or a subsidiary of the Company) as an employee or in any capacity. The Company and its subsidiaries reserve the right to terminate the Unit holder’s service at any time, with or without cause.

  

	11.	CLAWBACK POLICY 

 The Units, and any proceeds (Common Stock or cash) received in
connection with the settlement of the Units or subsequent sale of such issued Common Stock, shall be subject to the Clawback Policy adopted by the Company’s Board, as amended from time to time. 

In the event the clawback policy is deemed unenforceable with respect to the Units, or with respect to the proceeds received in connection
with the settlement of the Units or subsequent sale of such issued Common Stock, then the award of Units subject to this agreement shall be deemed unenforceable due to lack of adequate consideration. 

 

	12.	ENTIRE AGREEMENT 

 The Notice, this Agreement and the Plan constitute the entire
contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the subject matter hereof.

 This Agreement may not be modified or amended, except for a unilateral amendment by the Company that does not materially adversely
affect the rights of the Unit holder under this Agreement. No party to this Agreement may unilaterally waive any provision hereof, except in writing. Any such modification, amendment or waiver signed by, or binding upon, the Unit holder, shall be
valid and binding upon any and all persons or entities who may, at any time, have or claim any rights under or pursuant to this Agreement. 
  

	13.	CHOICE OF LAW 

 This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Washington, without regard to principles of conflicts of laws, as such laws are applied to contracts entered into and performed in such State.

 

  

					
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	14.	SEVERABILITY 

 If any provision of this Agreement shall be invalid or unenforceable,
such invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement, and this Agreement shall be carried out as if such invalid
or unenforceable provision were not contained herein. 

	15.	CODE SECTION 409A 

 The Company reserves the right, to the extent the Company deems
reasonable or necessary in its sole discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that all vesting or delivery of compensation provided under this Agreement is made in a manner that complies with
Section 409A of the Code, together with regulatory guidance issued thereunder. 

 

  
 

 

  

					
		  	4 of 4EX-10.4

 Exhibit 10.4 

NORDSTROM, INC. 
 2010
EQUITY INCENTIVE PLAN 
 (AS AMENDED AND RESTATED FEBRUARY 26, 2014) 

ARTICLE 1. INTRODUCTION 
 The purpose of
the Plan is to promote the long-term success of the Company and its Subsidiaries. Specific objectives are intended to encourage the attraction and retention of Employees and Nonemployee Directors, focus such individuals’ results on the
Company’s critical, long-range goals and align such individuals’ interests with those of the Company’s shareholders. 
 The
Plan seeks to achieve this purpose by providing for Awards in the form of Options (which may constitute incentive stock options (ISOs) or nonqualified stock options (NSOs)), stock appreciation rights (SARs), Unrestricted Shares, Restricted Shares,
Restricted Stock Units and Performance Share Units. 
 The Plan shall be governed by, and construed in accordance with, the laws of the
State of Washington (except their choice of law provisions). 
 ARTICLE 2. ADMINISTRATION 

2.1 Committee Composition. The Committee shall administer the Plan. The Committee shall consist exclusively of two (2) or more
Directors of the Company, who shall be appointed by the Board. 
 2.2 Committee Responsibilities. The Committee, in its absolute and
sole discretion, shall (a) select the Employees and Nonemployee Directors who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards, (c) interpret
the Plan and (d) make all other decisions relating to the operation of the Plan. The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan. The Committee may delegate its authority hereunder to one or more
Subcommittees, to the extent permitted under Code section 162(m), the Treasury Regulations thereunder and any applicable exchange rules; actions taken by any Subcommittee shall be subject to review by the full Committee. The Committee’s
determinations under the Plan shall be final and binding on all persons. 
 2.3 Committee for Non-Officer/Non-Director Awards. The
Board may also appoint a secondary committee of the Board or a senior executive officer to administer the Plan with respect to Employees who are not considered officers or Directors of the Company under Section 16 of the Exchange Act. That
committee or senior executive officer may grant Awards under the Plan to such Employees and may determine all features and conditions of such Awards. Within the limitations of this Section 2.3, any reference in the Plan to the Committee shall
include such secondary committee or senior executive officer, as the case may be. 

 2.4 Leadership Benefits Powers and Duties. Until such time as the Committee shall modify,
revoke or rescind such authority, the Company’s Leadership Benefits department, or such other Company department as the Committee shall designate, has the powers and duties set forth below. Determinations made by the Leadership Benefits
department (or other department) under this Section 2.4 shall be final and binding on all persons, but may, in the Committee’s absolute and sole discretion, be reviewed by the Committee. The powers and duties delegated by the Committee
hereunder are to: 
 (a) work with Plan service providers to ensure the effective administration of the Plan; 

(b) determine whether a Participant’s disability, as defined by a qualified medical professional acceptable to the Company’s
Leadership Benefits department (or other department), qualifies as Disability as defined under the Plan; and 
 (c) perform any and all
tasks, duties, and responsibilities delegated by the Company or the Committee. 
 The Company’s Leadership Benefits department (or other department)
has authority to interpret the terms of the Plan and any Award in carrying out the powers and duties as set forth above. 
 ARTICLE 3. SHARES AVAILABLE
FOR AWARDS 
 3.1 Basic Limitation. Shares issued pursuant to the Plan shall be authorized but unissued shares. The aggregate
number of Shares available for Awards of Options, SARs, Unrestricted Shares, Restricted Shares, Restricted Stock Units or Performance Share Units granted under the Plan shall not exceed (a) 27,600,000 Shares plus (b) the additional shares
of Common Stock described in Section 3.3. The limitations of this Section 3.1 and Sections 3.2 and 3.3 shall be subject to adjustment pursuant to Article 12. The aggregate number of Shares available for issuance as Plan Awards shall
be reduced by 1.6 (one point six) Shares for each Share delivered in settlement of any Award of Unrestricted Shares, Restricted Shares, Restricted Stock Units or Performance Share Units, and by 1 (one) Share for each Share delivered in settlement of
any Option Award or SAR. Awards that are required to be settled in cash will not reduce the number of Shares available for delivery under the Plan. 

3.2 Additional Shares. If any Shares covered by an Award of Options, SARs, Restricted Shares, Restricted Stock Units or Performance
Share Units terminate, lapse or are forfeited or cancelled, or such Award is otherwise settled without the delivery of the full number of Shares underlying the Award, then the Shares covered by such Award, or to which such Award relates, to the
extent of any such forfeiture, termination, lapse, cancellation, etc., shall again be, or shall become, available for issuance under the Plan; provided, however, that Shares (a) delivered in payment of the exercise price of an Award,
(b) not issued upon the net settlement or net exercise of SARs, or (c) delivered to or withheld by the Company to pay withholding taxes related to an Award, shall not become available again for issuance under this Plan. Shares that again
become available for issuance under the Plan pursuant to this Section 3.2 shall be added to the number of Shares available under Section 3.1 in the same ratios as applied to them at the time

  
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they were originally granted (e.g., 1.6 (one point six) Shares for each Share attributable to previously granted Awards of Restricted Shares, Restricted Stock Units or Performance Share Units and
1 (one) Share for each Share attributable to previously granted Option Awards or SARs). 
 3.3 Additional Shares from Prior Plan.
Shares available for issuance under the Plan shall be increased by any shares of Common Stock subject to outstanding awards under the Prior Plan on the effective date of the Plan, May 18, 2010, that later cease to be subject to such awards for
any reason other than the exercise or vesting of such awards (as the case may be), including any amounts withheld from such awards by the Company for taxes on the awards, which Shares shall, as of the date such Shares cease to be subject to such
awards, cease to be available for grant and issuance under the Prior Plan, but shall be available for issuance under the Plan under Section 3.1. However, this Section 3.3 specifically excludes Common Stock subject to outstanding awards
granted as Incentive Stock Options under the Prior Plan; no shares of Common Stock subject to such Prior Plan Incentive Stock Option awards shall again become available for issuance under the Plan. 

ARTICLE 4. ELIGIBILITY 
 4.1
Awards. Employees and Nonemployee Directors shall be eligible for the grant of Awards of NSOs, SARs, Unrestricted Shares, Restricted Shares, Restricted Stock Units or Performance Share Units. 

4.2 Incentive Stock Options. Only Employees who are common-law employees of the Company or a Subsidiary shall be eligible for the grant
of ISOs. In addition, an Employee who owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company or any of its Subsidiaries shall not be eligible for the grant of an ISO unless the
requirements set forth in section 422(c)(6) of the Code are satisfied. 
 ARTICLE 5. OPTIONS 

Options granted under the Plan are subject to the following terms and conditions: 

5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee
and the Company. Such Option shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Stock Option Agreement shall specify whether the Option is an NSO or an ISO. The
provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
 5.2 Number of Shares. Each
Stock Option Agreement shall specify the number of shares of Common Stock subject to the Option, which shall be subject to adjustment in accordance with Article 12. Options granted to any Employee in a single fiscal year of the Company shall
not cover more than 500,000 shares of Common Stock. Prior to exercise, holders of Options shall have no right to dividend equivalents. The limitation set forth in the preceding sentence shall be subject to adjustment in accordance with
Article 12. 

  
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 5.3 Exercise Price. Each Stock Option Agreement shall specify the Exercise Price; provided
that the Exercise Price under an Option shall in no event be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the date of grant. 

5.4 Exercisability and Term. Each Stock Option Agreement shall specify the date or event when all or any installment of the Option is
to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term shall in no event exceed ten (10) years from the date of grant. A Stock Option Agreement may provide for accelerated
exercisability in the event of the Optionee’s Disability, death or Retirement and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be granted in combination with
SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. 
 5.5 Effect of
Change in Control. In the event that the Optionee experiences a Qualifying Termination within twelve (12) months following a Change in Control then, unless (i) the Committee shall have previously made provision for a cash payment in
settlement of, or for the assumption, substitution or exchange of any or all of such Option for the cash, securities or property deliverable to the holder of any or all outstanding share-based awards, based upon, to the extent relevant under the
circumstances, the distribution or consideration payable to holders of the Company’s Common Stock in connection with the Change in Control, or (ii) the Option would otherwise continue in accordance with its terms notwithstanding the
occurrence of the Change in Control, such Option shall automatically become fully vested and exercisable. However, in the case of an ISO, the acceleration of exercisability shall not occur without the Optionee’s written consent. In addition,
acceleration of exercisability may be required pursuant to Article 12. 
 ARTICLE 6. PAYMENT FOR OPTION SHARES 

6.1 General Rule. The entire Exercise Price of shares of Common Stock issued upon exercise of Options shall be payable in cash or cash
equivalents at the time when such shares of Common Stock are purchased, except as follows: 
 (a) In the case of an ISO granted under the
Plan, payment shall be made only pursuant to the express provisions of the applicable Stock Option Agreement. The Stock Option Agreement may specify that payment may be made in any form(s) described in this Article 6. 

(b) In the case of an NSO, the Committee may at any time accept payment in any form(s) described in this Article 6. 

6.2 Stock Swap. To the extent specifically provided in an Option Agreement, all or any part of the Exercise Price may be paid by
surrendering, or attesting to the ownership of, shares of Common Stock that are already owned by the Optionee. Such shares of Common Stock shall be valued at their Fair Market Value on the date when the new shares of Common Stock are purchased under
the Plan. 

  
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 6.3 Exercise/Sale. To the extent that this Section 6.3 is applicable, all or any part
of the Exercise Price and any withholding taxes may be paid by delivering (in a form prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the shares of Common Stock being purchased
under the Plan and to deliver all or part of the sales proceeds to the Company. 
 6.4 Exercise/Pledge. To the extent that this
Section 6.4 is applicable, all or any part of the Exercise Price and any withholding taxes may be paid by delivering (in a form prescribed by the Company) an irrevocable direction to pledge all or part of the shares of Common Stock being
purchased under the Plan to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company. 

ARTICLE 7. STOCK APPRECIATION RIGHTS 
 SARs granted under
the Plan are subject to the following terms and conditions: 
 7.1 SAR Agreement. Each SAR granted under the Plan shall be evidenced
by an SAR Agreement between the Participant and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements
entered into under the Plan need not be identical. 
 7.2 Number of Shares. Each SAR Agreement shall specify the number of shares of
Common Stock to which the SAR pertains and shall provide for the adjustment of such number in accordance with Article 12. SARs granted to any Participant in a single calendar year shall in no event pertain to more than 500,000 shares of Common
Stock. The limitation set forth in the preceding sentence shall be subject to adjustment in accordance with Article 12. 
 7.3
Exercise Price. Each SAR Agreement shall specify the Exercise Price; provided that the Exercise Price under an SAR shall in no event be less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock on the date of
grant. 
 7.4 Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become
exercisable. The SAR Agreement shall also specify the term of the SAR; provided, however, that the term shall in no event exceed ten (10) years from the date of grant. An SAR Agreement may provide for accelerated exercisability in the event of
the Optionee’s Disability, death or Retirement and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. SARs may be granted in combination with Options, and such an SAR
Agreement may provide that the SARs will not be exercisable unless the related Options are forfeited. 
 7.5 Effect of Change in
Control. In the event that the Participant experiences a Qualifying Termination within twelve (12) months following a Change in Control then, unless (i) the Committee shall have previously made provision for a cash payment in
settlement of, or for the assumption, substitution or exchange of any or all of such SAR for the cash, securities or property deliverable to the holder of any or all outstanding share-based awards, based upon, to

  
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the extent relevant under the circumstances, the distribution or consideration payable to holders of the Company’s Common Stock in connection with the Change in Control, or (ii) the SAR
would otherwise continue in accordance with its terms notwithstanding the occurrence of the Change in Control, such SAR shall automatically become fully vested and exercisable. In addition, acceleration of exercisability may be required pursuant to
Article 12. 
 7.6 Exercise of SARs. Upon exercise of an SAR, the Participant (or any person having the right to exercise the SAR
after his or her death) shall receive from the Company (a) shares of Common Stock, (b) cash or (c) a combination of shares of Common Stock and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of
shares of Common Stock received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the shares of Common Stock subject to the SARs exceeds the Exercise Price. 

ARTICLE 8. UNRESTRICTED SHARES 
 Unrestricted Shares
granted under the Plan are subject to the following terms and conditions: 
 8.1 Unrestricted Shares. The Committee may grant up to 5%
of the total shares approved for issuance under the Plan), as shares of Common Stock that have no restrictions. Such Unrestricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not
inconsistent with the Plan. In no event shall the number of Unrestricted Shares that are granted to any Participant in a single fiscal year exceed 100,000 Shares, subject to adjustment in accordance with Article 12. For purposes of this
Section 8.1, each Unrestricted Share granted under Section 3.1 shall reduce the foregoing limit by one (1) Share. 
 8.2
Payment for Awards. Unrestricted Shares may be granted under the Plan for such consideration consisting of any tangible or intangible property or benefit to the Company as the Committee may determine, including cash, promissory notes, services
performed and contracts for services to be performed. 
 ARTICLE 9. RESTRICTED SHARES 

Restricted Shares granted under the Plan are subject to the following terms and conditions: 

9.1 Restricted Share Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Share Agreement
between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Share
Agreements entered into under the Plan need not be identical. 
 9.2 Payment for Awards. Restricted Shares may be granted under the
Plan for such consideration consisting of any tangible or intangible property or benefit to the Company as the Committee may determine, including cash, promissory notes, services performed and contracts for services to be performed. 

  
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 9.3 Vesting Conditions. Each Award of Restricted Shares shall be subject to vesting.
Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Share Agreement. If the only restriction on an Award of Restricted Shares is vesting based on the lapse of time, the minimum period for
full vesting shall be three (3) years. The Committee may include among such conditions the requirement that the performance of the Company or a business unit of the Company for a Performance Cycle equal or exceed a target determined in advance
by the Committee. Such target shall be based on any one or combination of the Performance Criteria. 
 With respect to Restricted Shares
that are subject to performance-based vesting conditions and are intended to meet the qualified performance-based compensation requirements of Code Section 162(m): 

(a) The Committee shall identify such conditions not later than the ninetieth (90th) day following the commencement of the applicable
Performance Cycle and before twenty-five percent (25%) of such Performance Cycle has elapsed; and 
 (b) The Committee shall certify in
writing prior to payout that such conditions and any other material terms were in fact satisfied. Approved minutes of a meeting of the Committee may be treated as such written certification. In no event shall the number of Restricted Shares which
are subject to performance-based vesting conditions and which are granted to any Participant in a single fiscal year exceed 500,000 Shares, subject to adjustment in accordance with Article 12. 

If the Participant’s employment with the Company or Subsidiary is terminated before the end of a Performance Cycle for any reason other
than Disability, death or Retirement, the Participant shall forfeit all rights with respect to any Restricted Shares that were being earned during the Performance Cycle. The Committee, in its absolute and sole discretion, may establish guidelines
providing that if a Participant’s employment is terminated before the end of a “Performance Cycle” by reason of Disability, death or Retirement, the Participant shall be entitled to a prorated payment with respect to any Restricted
Shares that were being earned during the Performance Cycle, as determined at the end of such Performance Cycle. A Restricted Share Agreement may provide for accelerated service-based vesting in the event of the Participant’s Disability, death
or Retirement (provided that, with respect to accelerated vesting in the event of Retirement, such Restricted Share Agreement shall include specific provisions regarding any tax withholding requirements, as required). Notwithstanding the foregoing,
in the event that the Participant experiences a Qualifying Termination within twelve (12) months following a Change in Control, then unless (i) the Committee shall have previously made provision for a cash payment in settlement of, or for
the assumption, substitution or exchange of any or all of such Restricted Shares for the cash, securities, or property deliverable to the holder of any or all outstanding share-based awards, based upon, to the extent relevant under the
circumstances, the distribution or consideration payable to holders of the Company’s Common Stock in connection with the Change in Control; (ii) the Restricted Share Agreement would otherwise continue in accordance with its terms
notwithstanding the occurrence of the Change in Control; or (iii) the Restricted Shares are subject to performance-based vesting criteria and the 

  
 7 

 
acceleration of vesting of such Restricted Shares would be prohibited under the provisions of Code section 162(m) and the Treasury Regulations promulgated thereunder, such Restricted Shares shall
automatically vest and any restrictions thereon shall lapse at the time of such Change in Control. 
 9.4 Voting and Dividend Rights.
The holders of Restricted Shares granted under the Plan shall have the voting, dividend and other rights as set forth in their Restricted Share Agreement, and may have the same voting, dividend and other rights as the Company’s other
shareholders. Any dividends paid on Restricted Shares shall be paid at the dividend payment date, in cash or in shares of unrestricted Common Stock having a Fair Market Value equal to the amount of such dividends. Common Stock distributed in
connection with a stock split or stock dividend, and distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Shares with respect to which such Common Stock has been distributed. 

ARTICLE 10. RESTRICTED STOCK UNITS 
 Restricted Stock
Units granted under the Plan are subject to the following terms and conditions: 
 10.1 Restricted Stock Units. Restricted Stock Units
are designated in shares of Common Stock. 
 10.2 Restricted Stock Unit Agreement. Each grant of Restricted Stock Units under the
Plan shall be evidenced by a Restricted Stock Unit Agreement between the recipient and the Company. Such Restricted Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms of the applicable Restricted
Stock Unit Agreement that are not inconsistent with the Plan. The provisions of the various Restricted Stock Unit Agreements entered into under the Plan need not be identical. 

10.3 Payment for Awards. To the extent that an Award is granted in the form of Restricted Stock Units, no cash consideration shall be
required of the Award recipients. 
 10.4 Vesting Conditions. Each Award of Restricted Stock Units shall be subject to vesting.
Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Unit Agreement. If the only restriction on an Award of Restricted Stock Units is vesting based on the lapse of time, the minimum
period for full vesting shall be three (3) years. The Committee may include among such conditions the requirement that the performance of the Company or a business unit of the Company for a Performance Cycle equal or exceed a target determined
in advance by the Committee. Such target shall be based on any one or combination of the Performance Criteria. 
 With respect to Restricted
Stock Units that are subject to performance-based vesting conditions and are intended to meet the qualified performance-based compensation requirements of Code Section 162(m) and are granted to Participants who have Covered Employees under Code
Section 162(m): 

  
 8 

 (a) The Committee shall identify such conditions not later than the ninetieth (90th) day following the commencement of the applicable Performance Cycle, and before twenty-five percent (25%) of such Performance Cycle has elapsed; and 

(b) The Committee shall certify in writing prior to payout that such conditions and any other material terms were in fact satisfied. Approved
minutes of a meeting of the Committee may be treated as such written certification. 
 In no event shall the number of Restricted Stock
Units which are subject to performance-based vesting conditions and which are granted to any Participant in a single fiscal year exceed 500,000, subject to adjustment in accordance with Article 12. 

If the Participant’s employment with the Company or Subsidiary is terminated before the end of a Performance Cycle for any reason other
than Disability, death or Retirement, the Participant shall forfeit all rights with respect to any Restricted Stock Units that were being earned during that Performance Cycle. The Committee, in its absolute and sole discretion, may establish
guidelines providing that if a Participant’s employment is terminated before the end of a Performance Cycle by reason of Disability, death or Retirement, the Participant shall be entitled to a prorated payment with respect to any shares of
Restricted Stock Units that were being earned during the Performance Cycle, as determined at the end of such Performance Cycle. A Restricted Stock Unit Agreement may provide for accelerated service-based vesting in the event of the
Participant’s Disability, death or Retirement (provided that, with respect to accelerated vesting in the event of Retirement, such Restricted Stock Unit Agreement’s accelerated vesting provisions shall comply with the requirements of Code
Section 409A). Notwithstanding anything to the contrary contained in the foregoing, in the event that the Participant experiences a Qualifying Termination within twelve (12) months following a Change in Control then unless (i) the
Committee shall have previously made provision for a cash payment in settlement of, or for the assumption, substitution or exchange of any or all of such Restricted Stock Units for the cash, securities, or property deliverable to the holder of any
or all outstanding share-based awards, based upon, to the extent relevant under the circumstances, the distribution or consideration payable to holders of the Company’s Common Stock in connection with the Change in Control; (ii) the award
of Restricted Stock Units would otherwise continue in accordance with its terms notwithstanding the occurrence of the Change in Control; or (iii) the Restricted Stock Units are subject to performance-based vesting criteria and the acceleration
of vesting of such Restricted Stock Units would be prohibited under the provisions of Code section 162(m) and the Treasury Regulations promulgated thereunder, such Restricted Stock Units shall automatically vest and any restrictions thereon shall
lapse at the time of such Change in Control. 
 10.5 Dividend Rights. Shares underlying an Award of Restricted Stock Units shall not
be entitled to dividends or dividend equivalents with respect to such Restricted Stock Units except to the extent otherwise provided under a Restricted Stock Unit Agreement. If a Restricted Stock Unit Agreement includes rights to dividends or
dividend equivalents, an amount equal to the dividends that would have been paid if the Restricted Stock Units had been issued and outstanding Shares of Common Stock as of the record date for the dividends shall be paid to the holder of such
Restricted Stock Units in cash, subject to applicable withholding taxes unless otherwise determined by the Committee. Any dividend equivalents payable pursuant to this 

  
 9 

 
Section 10.5 shall be paid no later than March 1 of the calendar year after the calendar year in which the applicable dividend record date occurs, except as otherwise provided in the
applicable Restricted Stock Unit Agreement. 
 10.6 Form and Time of Settlement of Restricted Stock Unit Awards. Settlement of vested
Restricted Stock Units may be made in the form of (a) cash, (b) shares of Common Stock or (c) any combination of both, as determined by the Committee. For the avoidance of doubt, settlement of vested Restricted Stock Units in shares
of Common Stock shall not be considered an Award of Unrestricted Shares under Article 8. Methods of converting Restricted Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of shares of Common
Stock over a series of trading days. Vested Restricted Stock Units shall be settled in a lump sum before the later of (i) two and one half (21/2) months after the end of the
Company’s fiscal year during which all vesting conditions applicable to the Restricted Stock Units have been satisfied or have lapsed or (ii) March 15 following the calendar year in which all vesting conditions applicable to the
Restricted Stock Units have been satisfied or have lapsed. Until an Award of Restricted Stock Units is settled, the number of such Restricted Stock Units shall be subject to adjustment pursuant to Article 12. 

10.7 Creditors’ Rights. A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the
Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Restricted Stock Unit Agreement. 

ARTICLE 11. PERFORMANCE SHARE UNITS 
 Performance Share
Units granted under the Plan are subject to the following terms and conditions: 
 11.1 Performance Share Units. Performance Share
Units are designated in shares of Common Stock. 
 11.2 Agreement. Each grant of Performance Share Units under the Plan shall be
evidenced by an Agreement between the recipient and the Company, shall be subject to all applicable terms of the Plan, and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Performance Share
Unit Agreements entered into under the Plan need not be identical. Performance Share Units may be granted in consideration of a reduction in the recipient’s other compensation. 

11.3 Payment for Awards. To the extent that an Award is granted in the form of Performance Share Units, no cash consideration shall be
required of the Award recipients. 
 11.4 Vesting Conditions. Each Award of Performance Share Units shall be subject to vesting.
Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Performance Share Unit Agreement. The Committee may include among such conditions the requirement that the performance of the Company or a business
unit of the Company for a Performance Cycle equal or exceed a target determined in advance by the Committee. Such target shall be based on any one or combination of the Performance Criteria. 

  
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 With respect to Performance Share Units that are subject to performance-based vesting conditions
and are intended to meet the qualified performance-based compensation requirements of Code Section 162(m) and are granted to Participants who are Covered Employees under Code Section 162(m): 

(a) The Committee shall identify such conditions not later than the ninetieth (90th) day following the commencement of the Performance
Cycle, and before twenty-five percent (25%) of the Performance Cycle has elapsed; and 
 (b) The Committee shall certify in writing
prior to payout that such conditions and any other material terms were in fact satisfied. Approved minutes of a meeting of the Committee may be treated as such written certification. 

In no event shall the number of Performance Share Units which are subject to performance-based vesting conditions and which are granted to any
Participant in a single fiscal year exceed 500,000, subject to adjustment in accordance with Article 12. 
 If the Participant’s
employment with the Company or Subsidiary is terminated before the date that Performance Share Units vest, the participant shall forfeit all rights with respect to any unvested Performance Share Units. However, with respect to Performance Share
Units subject to performance-based vesting conditions, the Committee, in its absolute and sole discretion at the time an Award of Performance Share Units is made, may establish guidelines providing that if a Participant’s employment is
terminated before the end of a Performance Cycle by reason of Disability, death or Retirement, the Participant shall be entitled to a prorated payment with respect to any Performance Share Units that were being earned during the Performance Cycle,
as determined at the end of such Performance Cycle. A Performance Share Unit Agreement may provide for accelerated service-based vesting in the event of a Participant’s Disability, death or Retirement (provided, in the case of Retirement, that
such Performance Share Unit Agreement’s accelerated vesting provisions shall comply with the requirements of Code Section 409A). Notwithstanding anything to the contrary contained in the foregoing, in the event that the Participant
experiences a Qualifying Termination within twelve (12) months following a Change in Control then unless (i) the Committee shall have previously made provision for a cash payment in settlement of, or for the assumption, substitution or
exchange of any or all of such Performance Share Units for the cash, securities, or property deliverable to the holder of any or all outstanding share-based awards, based upon, to the extent relevant under the circumstances, the distribution or
consideration payable to holders of the Company’s Common Stock in connection with the Change in Control; (ii) the award of Performance Share Units would otherwise continue in accordance with its terms notwithstanding the occurrence of the
Change in Control; or (iii) the acceleration of vesting of such Performance Share Units would be prohibited under the provisions of Code section 162(m) and the Treasury Regulations promulgated thereunder, such Performance Share Units shall
automatically vest and any restrictions thereon shall lapse at the time of such Change in Control. In addition, acceleration of vesting may be required pursuant to Article 12.

  
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 11.5 Form and Time of Settlement of Units. Settlement of vested Performance Share Units
may be made in the form of (a) cash, (b) shares of Common Stock or (c) any combination of both, as determined by the Committee. For the avoidance of doubt, settlement of vested Performance Share Units in shares of Common Stock shall
not be considered an Award of Unrestricted Shares under Article 8. Methods of converting Performance Share Units into cash may include (without limitation) a method based on the average Fair Market Value of shares of Common Stock over a series of
trading days. Vested Performance Share Units shall be settled in a lump sum by the last day of the calendar year in which all vesting conditions applicable to the Performance Share Units have been satisfied or have lapsed. Until an Award of
Performance Share Units is settled, the number of such Share Units shall be subject to adjustment pursuant to Article 12. 
 11.6
Creditors’ Rights. A holder of Performance Share Units shall have no rights other than those of a general creditor of the Company. Performance Share Units represent an unfunded and unsecured obligation of the Company, subject to the terms
and conditions of the applicable Performance Share Unit Agreement. 
 ARTICLE 12. PROTECTION AGAINST DILUTION 

12.1 Modification or Assumption of Awards. Except in connection with a corporate transaction involving the Company (a “Strategic
Transaction” which shall include, without limitation any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares or the sale of all
or substantially all of the Company’s assets), the terms of outstanding Awards may not be amended to reduce any exercise price associated with such Awards or to cancel any outstanding Awards in exchange for cash, other Awards or other
securities with an exercise price that is less than the exercise price of the original Awards without shareholder approval. The foregoing and the provisions of this Article 12 notwithstanding, no modification of an Award shall, without the consent
of the Award recipient, alter or impair his or her rights or obligations under such Award. 
 12.2 Adjustments. Upon or in
contemplation of any Strategic Transaction, the Committee shall, in such manner, to such extent (if any) and at such time as it deems appropriate and equitable in the circumstances: 

(a) proportionately adjust any or all of (i) the number and type of shares of Common Stock (or other securities) that thereafter may be
made the subject of Awards (including the specific share limits, maximums and numbers of shares set forth elsewhere in this Plan), (ii) the number, amount and type of shares of Common Stock (or other securities or property) subject to any or
all outstanding Awards, (iii) the grant, purchase, or exercise price of any or all outstanding Awards, (iv) the securities, cash or other property deliverable upon exercise of any or all outstanding Awards, or (v) the performance
standards appropriate to any or all outstanding Awards, or 

  
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 (b) make provision for a cash payment or for the assumption, substitution or exchange of any or
all outstanding share-based Awards or the cash, securities or property deliverable to the holder of any or all outstanding share-based Awards, based upon the distribution or consideration payable to holders of the outstanding shares of Common Stock
upon or in respect of such event. 
 For the avoidance of doubt, this Article 12 does not apply to normal cash dividends with respect to Company Stock other
than extraordinary dividends or to stock issued in lieu of such dividends. The Committee may adopt such valuation methodologies for outstanding Awards as it deems reasonable in the event of a cash or property settlement and, in the case of Options,
SARs or similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess, if any, of the per share amount payable upon or in respect of such event over the grant price of the Award, unless otherwise
provided in, or by authorized amendment to, the Award or provided in another applicable agreement with the Participant. With respect to any ISO, in the absolute and sole discretion of the Committee, the adjustment may be made in a manner that would
cause the Option to cease to qualify as an ISO. 
 12.3 Dissolution or Liquidation. To the extent not previously exercised, settled
or assumed, Options, SARs, and Performance Share Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
 ARTICLE 13.
AWARDS UNDER OTHER PLANS 
 The Company may grant awards under other equity plans or programs. Such awards may be settled in the form of shares of Common
Stock issued under this Plan. 
 ARTICLE 14. LIMITATION ON RIGHTS 

14.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain an
Employee or Nonemployee Director. The Company and its Subsidiaries reserve the right to terminate the Service of any Employee or Nonemployee Director at any time, with or without cause, subject to applicable laws, the Company’s Restated
Articles of Incorporation and Bylaws and a written employment agreement (if any). 
 14.2 Shareholders’ Rights. Unless otherwise
provided in this Plan or in any Award, a Participant shall have no dividend rights, voting rights or other rights as a shareholder with respect to any shares of Common Stock covered by his or her Award prior to the time when a stock certificate for
such shares of Common Stock is issued or, if applicable, the time when he or she becomes entitled to receive such shares of Common Stock by filing any required notice of exercise and paying any required Exercise Price. No adjustment shall be made
for normal cash dividends or other rights for which the record date is prior to such time, except as expressly provided in the Plan. 

  
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 14.3 Regulatory Requirements. Any other provision of the Plan notwithstanding, the
obligation of the Company to issue shares of Common Stock under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole
or in part, the delivery of shares of Common Stock pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such shares of Common Stock related to their registration, qualification or listing or to an
exemption from registration, qualification or listing. 
 14.4 Compliance with Code Section 409A. Awards under the Plan are
intended to comply with Code Section 409A and all Awards shall be interpreted in a manner that results in compliance with Section 409A, Department of Treasury regulations, and other interpretive guidance under Section 409A.
Notwithstanding any provision of the Plan or an Award to the contrary, if the Committee determines that any Award does not comply with Code Section 409A, the Company may adopt such amendments to the Plan and the affected Award (without consent
of the Participant) or adopt other policies or procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are necessary and appropriate to (a) exempt the Plan and
the Award from application of Code Section 409A and/or preserve the intended tax treatment of amounts payable with respect to the Award, or (b) comply with the requirements of Code Section 409A. 

ARTICLE 15. WITHHOLDING TAXES 
 15.1
General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in
connection with the Plan. The Company shall not be required to issue any shares of Common Stock or make any cash payment under the Plan until such obligations are satisfied. 

15.2 Share Withholding. To the extent that applicable law subjects a Participant to tax withholding obligations, the Committee may
permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any shares of Common Stock that otherwise would be issued to him or her or by surrendering all or a portion of any shares of Common
Stock that he or she previously acquired. Such shares of Common Stock shall be valued at their Fair Market Value on the date when they are withheld or surrendered, and shall be deemed to have been issued for purposes of identifying any shares which
may become available for grant pursuant to Section 3.3 above. 
 ARTICLE 16. FUTURE OF THE PLAN 

16.1 Term of the Plan. The Plan, as set forth herein, became effective on the date of shareholder approval, May 18, 2010, and shall
remain in effect for a period of ten (10) years unless earlier terminated under Section 16.2. 
 16.2 Amendment or
Termination. The Board may, at any time and for any reason, amend, alter or terminate the Plan. Notwithstanding the foregoing and except as provided in Section 14.4, no amendment, alteration or termination shall be made that would impair
the rights of a Participant under any Award theretofore granted without such Participant’s express written consent. An amendment of the Plan shall be subject to the approval of the Company’s

  
 14 

 
shareholders for any amendment that would (a) require shareholder approval in order to satisfy the applicable requirements of Code Section 162(m), Code section 422, or other applicable
laws, regulations or rules, including but not limited to any stock exchange rules; (b) increase amounts payable under the Plan to Participants (provided that shareholder approval shall not be required for increases that are not material and do
not require such approval under applicable law or stock exchange rules); (c) increase the number of shares of Common Stock authorized to be issued under the Plan; (d) permit the repurchase by the Company of any outstanding Awards with an
Exercise Price greater than the then-current Fair Market Value of Common Stock; or (e) modify the Plan’s eligibility provisions. No Awards shall be granted under the Plan after the termination thereof. 

ARTICLE 17. DEFINITIONS 
 17.1
“Award” means any grant of an Option, an SAR, an Unrestricted Share, a Restricted Share, a Restricted Stock Unit or a Performance Share Unit under the Plan. 

17.2 “Award Agreement” means the written agreement between the Company and the recipient that contains the terms, conditions
and restrictions pertaining to a particular Award. 
 17.3 “Board” means the Company’s Board of Directors, as
constituted from time to time. 
 17.4 “Cause” means (a) the unauthorized use or disclosure of the confidential
information or trade secrets of the Company, which use or disclosure causes material harm to the Company, (b) conviction of, or a plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State
thereof, (c) gross negligence, (d) willful misconduct or (e) a failure to perform assigned duties that continues after the Participant has received written notice of such failure. The foregoing, however, shall not be deemed an
exclusive list of all acts or omissions that the Company (or the Parent or Subsidiary employing the Participant) may consider as grounds for the discharge of the Participant without Cause. 

17.5 “Change in Control” means the happening of any of the following: 

(a) the consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if persons
who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization fifty percent (50%) or more of the voting power of the
outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such continuing or surviving entity; 

(b) the sale, transfer or other disposition of all or substantially all of the Company’s assets; 

(c) a change in the composition of the Board as a result of which fewer than fifty percent (50%) of the incumbent Directors are Directors
who either (i) had been Directors of the Company on the date twenty-four (24) months prior to the date of the event that may constitute a Change in Control (the “Original Directors”) or (ii) were elected, or nominated for

  
 15 

 
election, to the Board with the affirmative votes of at least a majority of the aggregate of the Original Directors who were still in office at the time of the election or nomination and the
Directors whose election or nomination was previously so approved, but excluding, for this purpose, any such Director whose initial assumption of office occurs as a result of either an actual or threatened election contest or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation; or 

(d) any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing at least thirty percent (30%) of the total voting power represented by the Company’s then outstanding voting securities. For purposes of this Paragraph (d), the term
“person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a
Subsidiary and (ii) a corporation owned directly or indirectly by the 
 shareholders of the Company in substantially the same proportions as their
ownership of the common stock of the Company. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the
Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 

17.6 “Code” means the Internal Revenue Code of 1986, as amended. 

17.7 “Committee” means the Compensation Committee of the Company’s Board. 

17.8 “Common Stock” means shares of the common stock of the Company. 

17.9 “Company” means Nordstrom, Inc., a Washington corporation. 

17.10 “Disability” means the inability to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months. 

17.11 “Employee” means a common-law employee of the Company, a Parent or a Subsidiary. 

17.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

17.13 “Exercise Price,” in the case of an Option, means the amount for which one share of Common Stock may be purchased upon
exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of an SAR, means an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one
share of Common Stock in determining the amount payable upon exercise of such SAR. 

  
 16 

 17.14 “Fair Market Value” means the market price of a share of Common Stock,
determined by the Committee in good faith on such basis as it deems appropriate. Whenever possible, the determination of Fair Market Value by the Committee shall be based on the closing price on the date of the Award as reported by the New York
Stock Exchange, or the primary exchange or quotation system on which the Common Stock is then trading. Such determination shall be conclusive and binding on all persons. 

17.15 “Good Reason” means the occurrence of one or more of the following without the Participant’s express written
consent and within twelve (12) months following a Change in Control: 
 (a) a material diminution in the Participant’s base salary;

 (b) a material diminution in the Participant’s authority, duties, or responsibilities; 

(c) a material change in the geographic location at which the Participant must perform his or her services to a place that is more than fifty
(50) miles from where the Participant was based immediately prior to the Change in Control; and 
 (d) any other action or inaction that
constitutes a material breach by the Company of this Plan with respect to a Participant’s Award. 
 The event or events described above shall
constitute Good Reason only if the Company (or the Parent or Subsidiary employing the Participant) fails to cure such event or events within ninety (90) days after receipt from the Participant of written notice of the event or events which
constitutes Good Reason. Such notice must be provided to the Company (or the Parent or Subsidiary employing the Participant) and must provide a reasonably detailed description of the facts that the Participant believes constitute a Good Reason
event. Good Reason shall cease to exist for an event on the ninetieth (90th) day following the later of its occurrence or the Participant’s knowledge thereof, unless the Participant has
given written notice to the Company thereof prior to such date. 
 17.16 “ISO” means an incentive stock option described in
Section 422(b) of the Code. 
 17.17 “NSO” means a stock option not described in Sections 422 or 423 of the Code.

 17.18 “Nonemployee Director” means a member of the Company’s Board or the Board of Directors of a Subsidiary who is
not an Employee. Service as a Nonemployee Director shall be considered employment for all purposes of the Plan, except as provided in Section 4.2. 

17.19 “Option” means an NSO or an ISO granted under Article 5 of the Plan and entitling the holder to purchase shares of
Common Stock pursuant to an Award. 
 17.20 “Optionee” means an individual or estate who holds an Option. 

  
 17 

 17.21 “Participant” means an individual or estate who holds an Award. 

17.22 “Performance Criteria” shall mean a specified percentage or quantitative level in one or more of the following
performance measures: 
 (a) the Company’s shareholder return as compared to any designated industry or other comparator group; 

(b) the trading price of the Company’s common stock; 

(c) the results of operations, such as sales, earnings, net income (before or after taxes), cash flow, return on assets, same-store sales,
economic profit, or return on investment (including return on equity, return on capital employed, or return on assets); 
 (d) earnings
before or after taxes, interest, depreciation and/or amortization, and including /excluding capital gains and losses; 
 (e) other financial
results, such as profit margins, operational efficiency, expense reduction, or asset management goals; and 
 (f) the internal or external
market share of a product or line of products. 
 Each of the foregoing performance measures may be based on the performance of the Company
generally, in the absolute or in relation to its peers, or the performance of a particular Participant, department, business unit, subsidiary, or other segment to which a particular Participant is assigned. The Committee may establish different
performance measures and milestones for individual Participants or groups of Participants. For each Participant, each performance measure will be weighted to reflect its relative significance to the Company for the Performance Cycle. 

Except as otherwise specified in an individual Award, applicable performance measures shall be adjusted to exclude the following items that
occur during a given Performance Cycle: 
 (i) Extraordinary, unusual or non-recurring items of gain or loss; 

(ii) Gains or losses on the disposition of a business, a segment of a business, or significant assets outside the ordinary course of business;

 (iii) Changes in tax or accounting standards, principles, regulations or laws; 

(iv) The effect of a merger or acquisition, including all financial results derived therefrom during the period from the merger or acquisition
date through the end of the Performance Cycle in which the merger or acquisition occurred; 

  
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 (v) Gains or losses due to non-cash adjustments which relate to the valuation of long-term assets
rather than current-year performance (including but not necessarily limited to gain or loss recognized for store closures, lease terminations, pension adjustments and mark to market adjustments); and 

(vi) The impact of other similar occurrences outside of the Company’s core, on-going business activities (including but not necessarily
limited to litigation or tax reserves, financing activities, foreign exchange rate fluctuations and restructuring charges). 
 In all other
respects, performance measures comprising Performance Criteria for an Award shall be calculated in accordance with the Company’s financial statements, under generally accepted accounting principles (GAAP), or under a non-GAAP methodology
established by the Committee prior to the issuance of an Award. The method of calculating performance measurements shall be consistently applied and identified in the audited financial statements, including footnotes, or the Compensation Discussion
and Analysis section of the Company’s annual report. 
 17.23 “Performance Cycle” means a predetermined period of
time, not less than one year, over which Performance Criteria will be measured with respect to an Award. 
 17.24 “Performance
Share Unit” means a bookkeeping entry representing the equivalent of one (1) share of Common Stock, as granted under the Plan pursuant to an Award. 

17.25 “Performance Share Unit Agreement” means the written agreement between the Company and the recipient of a Performance
Share Unit that contains the terms, conditions and restrictions pertaining to such Performance Share Unit. 
 17.26 “Plan”
means this Nordstrom, Inc. 2010 Equity Incentive Plan, as amended from time to time. 
 17.27 “Prior Plan” means the
Nordstrom 2004 Equity Incentive Plan, as subsequently amended in 2007 and 2008. 
 17.28 “Qualifying Termination” means
(a) the Participant’s employment is involuntarily terminated by the Company (or the Parent or Subsidiary employing the Participant) without Cause, or (b) the Participant terminates employment from the Company (or the Parent or
Subsidiary employing the Participant) for Good Reason. The twelve-month period will be extended by one (1) additional month if the thirty-day cure period in Section 17.15 is triggered in the eleventh or twelfth month following a Change in
Control. It is intended that any Qualifying Termination shall be an “involuntary Separation from Service,” as that term is defined in Treasury Regulation Section 1.409A-1(n). 

17.29 “Restricted Share” means a share of Common Stock granted under Article 9 pursuant to an Award, with such restrictions
as set forth in the applicable Restricted Share Agreement. 

  
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 17.30 “Restricted Stock Unit” means a right granted under Article 10 to receive
Common Stock or cash at the end of a specified deferral period pursuant to an Award, which right may be conditioned on the satisfaction of certain requirements (including the satisfaction of certain performance goals). 

17.31 “Restricted Share Agreement” means the written agreement between the Company and the recipient of a Restricted Share
that contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 17.32 “Restricted Stock Unit
Agreement” means the written agreement between the Company and the recipient of a Restricted Stock Unit that contains the terms, conditions and restrictions pertaining to such Restricted Stock Unit. 

17.33 “Retirement” means Participant’s termination from Service on or after his or her Retirement Date. 

17.34 “Retirement Date” shall have the meaning as set forth in a particular Award Agreement. 

17.35 “SAR” means a stock appreciation right granted under Article 7 of the Plan pursuant to an Award. 

17.36 “SAR Agreement” means the written agreement between the Company and a Participant that contains the terms, conditions
and restrictions pertaining to his or her SAR. 
 17.37 “Service” means service as an Employee or Nonemployee Director.

 17.38 “Stock Option Agreement” means the written agreement between the Company and an Optionee that contains the terms,
conditions and restrictions pertaining to his or her Option. 
 17.39 “Subcommittee” means a separate committee established
by and consisting of members of the Committee. 
 17.40 “Subsidiary” means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain 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. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

17.41 “Unrestricted Share” means a share of Common Stock granted under Article 8 of the Plan pursuant to an Award. 

  
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