Document:

1990 Stock Incentive Plan

 Exhibit 10.3 
  
 NIKE, Inc. 1990 Stock Incentive Plan 
  
 1. Purpose. The purpose of this Stock Incentive Plan (the “Plan”) is to enable NIKE, Inc. (the
“Company”) to attract and retain as directors, officers, employees, consultants, advisors and independent contractors people of initiative and ability and to provide additional incentives to such persons. 
  
 2. Shares Subject to the Plan. Subject to adjustment as provided below
and in paragraph 10, the shares to be offered under the Plan shall consist of Class B Common Stock of the Company (“Shares”), and the total number of Shares that may be issued under the Plan shall not exceed fifty million (50,000,000)
Shares. If an option or stock appreciation right granted under the Plan expires, terminates or is canceled, the unissued Shares subject to such option or stock appreciation right shall again be available under the Plan. If Shares sold or awarded as
a bonus under the Plan are forfeited to the Company or repurchased by the Company, the number of Shares forfeited or repurchased shall again be available under the Plan. 
  
 3. Effective Date and Duration of Plan. 
  
 (a) Effective Date. The Plan shall become effective when adopted by the Board of Directors of the Company. However,
no option or stock appreciation right granted under the Plan shall become exercisable until the Plan is approved by the affirmative vote of the holders of a majority of the Common Stock of the Company represented at a shareholders meeting at which a
quorum is present and any awards under the Plan prior to such approval shall be conditioned on and subject to such approval. Subject to this limitation, options and stock appreciation rights may be granted and Shares may be awarded as bonuses or
sold under the Plan at any time after the effective date and before termination of the Plan. 
  
 (b) Duration. The Plan shall continue in effect until all Shares available for issuance under the Plan have been issued and all restrictions on such Shares have lapsed. The Board of Directors may suspend or
terminate the Plan at any time except with respect to options and Shares subject to restrictions then outstanding under the Plan. Termination shall not affect any outstanding options, any right of the Company to repurchase Shares or the
forfeitability of Shares issued under the Plan. 
  
 4.
Administration. 
  
 The Plan shall be administered by a
committee appointed by the Board of Directors of the Company consisting of not less than two directors (the “Committee”), which shall determine and designate from time to time the individuals to whom awards shall be made, the amount of the
awards and the other terms and conditions of the awards, except that only the Board of Directors may amend or terminate the Plan as provided in paragraphs 3 and 13. Subject to the provisions of the Plan, the Committee may from time to time adopt and
amend rules and regulations relating to administration of the Plan, advance the lapse of any waiting period, accelerate any exercise date, waive or modify any restriction applicable to Shares (except those restrictions imposed by law) and make all
other determinations in the judgment of the Committee necessary or desirable for the administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Committee shall be final and conclusive.
The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect, and it shall be the sole and
final judge of such expediency. Notwithstanding anything to the contrary contained in this Paragraph 4, the Committee may delegate to the Chief Executive Officer of the Company the authority to grant awards with respect to a maximum of 50,000 Shares
to any eligible employee who is not, at the time of such grant, subject to the reporting requirements and liability provisions contained in Section 16 of the Securities Exchange Act of 1934 (the “Exchange Act”) and the regulations
thereunder. 
  
 5. Types of Awards; Eligibility. The
Committee may, from time to time, take the following action, separately or in combination, under the Plan: (i) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), as
provided in paragraph 6(b); (ii) 

 grant options other than Incentive Stock Options (“Non-Statutory Stock Options”) as provided in paragraph 6(c);
(iii) award stock bonuses as provided in paragraph 7; (iv) sell shares subject to restrictions as provided in paragraph 8; and (v) grant stock appreciation rights as provided in paragraph 9. Any such awards may be made to employees, including
employees who are officers or directors, of the Company or any parent or subsidiary corporation of the Company and to other individuals described in paragraph 1 who the Committee believes have made or will make an important contribution to the
Company or its subsidiaries; provided, however, that only employees of the Company shall be eligible to receive Incentive Stock Options under the Plan. The Committee shall select the individuals to whom awards shall be made. The Committee shall
specify the action taken with respect to each individual to whom an award is made under the Plan. No employee may be granted options or stock appreciation rights under the Plan for more than 200,000 Shares in any calendar year. 
  
 6. Option Grants. 
  
 (a) Grant. The Committee may grant options under the Plan. With
respect to each option grant, the Committee shall determine the number of Shares subject to the option, the option price, the period of the option, the time or times at which the option may be exercised and whether the option is an Incentive Stock
Option or a Non-Statutory Stock Option. 
  
 (b) Incentive Stock
Options. Incentive Stock Options shall be subject to the following terms and conditions: 
  
 (i) An Incentive Stock Option may be granted under the Plan to an employee possessing more than 10 percent of the total combined voting
power of all classes of stock of the Company or of any parent or subsidiary of the Company only if the option price is at least 110 percent of the fair market value of the Shares subject to the option on the date it is granted, as described in
paragraph 6(b)(iii), and the option by its terms is not exercisable after the expiration of five years from the date it is granted. 
  
 (ii) Subject to paragraphs 6(b)(i) and 6(d), Incentive Stock Options granted under the Plan shall continue in effect for the period fixed
by the Committee, except that no Incentive Stock Option shall be exercisable after the expiration of 10 years from the date it is granted. 
  
 (iii) The option price per share shall be determined by the Committee at the time of grant. Subject to paragraph 6(b)(i), the option price
shall not be less than 100 percent of the fair market value of the Shares covered by the Incentive Stock Option at the date the option is granted. The fair market value shall be deemed to be the closing price of the Class B Common Stock of the
Company as reported in the New York Stock Exchange Composite Transactions in the Wall Street Journal on the day preceding the date the option is granted, or if there has been no sale on that date, on the last preceding date on which a sale occurred,
or such other reported value of the Class B Common Stock of the Company as shall be specified by the Committee. 
  
 (iv) No Incentive Stock Option shall be granted on or after the tenth anniversary of the last action by the Board of Directors approving
an increase in the number of shares available for issuance under the Plan, which action was subsequently approved within 12 months by the shareholders. 
  
 (c) Non-Statutory Stock Options. The option price for Non-Statutory Stock Options shall be determined by the Committee at the time of grant. The
option price may not be less than 75 percent of the fair market value of the Shares covered by the Non-Statutory Stock Option on the date the option is granted. The fair market value of Shares covered by a Non-Statutory Stock Option shall be
determined pursuant to paragraph 6(b)(iii). 
  
 (d) Exercise of
Options. Except as provided in paragraph 6(f), no option granted under the Plan may be exercised unless at the time of such exercise the optionee is employed by the Company or any parent or subsidiary corporation of the Company and shall have
been so employed continuously since the date such option was granted. Absence on leave or on account of illness or disability under rules 
  

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 established by the Committee shall not, however, be deemed an interruption of employment for this purpose. Except as
provided in paragraphs 6(f), 10 and 11, options granted under the Plan may be exercised from time to time over the period stated in each option in such amounts and at such times as shall be prescribed by the Committee, provided that options shall
not be exercised for fractional shares. Unless otherwise determined by the Committee, if the optionee does not exercise an option in any one year with respect to the full number of Shares to which the optionee is entitled in that year, the
optionee’s rights shall be cumulative and the optionee may purchase those Shares in any subsequent year during the term of the option. 
  
 (e) Nontransferability. Except as provided below, each stock option granted under the Plan by its terms shall be nonassignable and nontransferable
by the optionee, either voluntarily or by operation of law, and each option by its terms shall be exercisable during the optionee’s lifetime only by the optionee. A stock option may be transferred by will or by the laws of descent and
distribution of the state or country of the optionee’s domicile at the time of death. A Non-Statutory Stock Option shall also be transferable pursuant to a qualified domestic relations order as defined under the Code or Title I of the Employee
Retirement Income Security Act. The Committee may, in its discretion, authorize all or a portion of a Non-Statutory Stock Option granted to an optionee to be on terms which permit transfer by the optionee to (i) the spouse, children or grandchildren
of the optionee (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of Immediate Family Members, or (iii) a partnership in which Immediate Family Members are the only partners, provided that (x) there may be no
consideration for any transfer, (y) the stock option agreement pursuant to which the options are granted must expressly provide for transferability in a manner consistent with this paragraph, and (z) subsequent transfers of transferred options shall
be prohibited except by will or by the laws of descent and distribution. Following any transfer, options shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that for purposes of
paragraphs 6(d), 6(g), 10 and 11 the term “optionee” shall be deemed to refer to the transferee. The events of termination of employment of paragraph 6(f), shall continue to be applied with respect to the original optionee, following which
the options shall be exercisable by the transferee only to the extent, and for the periods specified, and all other references to employment, termination of employment, life or death of the optionee, shall continue to be applied with respect to the
original optionee. 
  
 (f) Termination of Employment or
Death. 
  
 (i) Unless otherwise provided at
the time of grant, in the event the employment of the optionee by the Company or a parent or subsidiary corporation of the Company terminates for any reason other than because of retirement, physical disability or death, the option may be exercised
at any time prior to the expiration date of the option or the expiration of three months after the date of such termination of employment, whichever is the shorter period, but only if and to the extent the optionee was entitled to exercise the
option at the date of such termination. 
  
 (ii)
Unless otherwise provided at the time of grant, in the event the employment of the optionee by the Company or a parent or subsidiary corporation of the Company terminates as a result of the optionee’s retirement, the option may be exercised by
the optionee to the extent specified in this paragraph 6(f)(ii) at any time prior to the expiration date of the option or the expiration of three months after the date of such termination of employment, whichever is the shorter period. For purposes
of this paragraph 6(f), “retirement” means a termination of employment that occurs at a time when (A) the optionee’s retirement point total is at least 55, and (B) the optionee has at least five full years of service as an employee of
the Company or a parent or subsidiary corporation of the Company. For purposes of this paragraph 6(f), “retirement point total” means the sum of the optionee’s age in full years plus the optionee’s full years of service as an
employee of the Company or a parent or subsidiary corporation of the Company. Upon retirement, the optionee may exercise the portion of the option that the optionee was entitled to exercise immediately prior to retirement plus a percentage of the
remaining unvested portion of the option based on the optionee’s retirement point total at the time of retirement as set forth in the following table: 
  

			
	 Retirement Point Total

	  	 Percent of Unvested Option
 That Becomes Exercisable

	 55 or 56
	  	 20%

	      57
	  	40%
	      58
	  	60%
	      59
	  	80%
	      60
	  	100%

  

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 (iii) Unless otherwise provided at the time of grant, in the event the employment of the
optionee by the Company or a parent or subsidiary corporation of the Company terminates because the optionee becomes disabled (within the meaning of Section 22(e)(3) of the Code), the option may be exercised by the optionee free of the limitations
on the amount that may be purchased in any one year specified in the option agreement at any time prior to the expiration date of the option or the expiration of one year after the date of such termination, whichever is the shorter period.

  
 (iv) Unless otherwise provided at the time of
grant, in the event of the death of the optionee while in the employ of the Company or a parent or subsidiary corporation of the Company, the option may be exercised free of the limitations on the amount that may be purchased in any one year
specified in the option agreement at any time prior to the expiration date of the option or the expiration of one year after the date of such death, whichever is the shorter period, but only by the person or persons to whom such optionee’s
rights under the option shall pass by the optionee’s will or by the laws of descent and distribution of the state or country of domicile at the time of death. 
  
 (v) The Committee, at the time of grant or at any time thereafter, may extend the three-month and one-year
expiration periods any length of time not later than the original expiration date of the option, and may increase the portion of an option that is exercisable, subject to such terms and conditions as the Committee may determine. 
  
 (vi) To the extent that the option of any deceased optionee
or of any optionee whose employment terminates is not exercised within the applicable period, all further rights to purchase Shares pursuant to such option shall cease and terminate. 
  
 (g) Purchase of Shares. Unless the Committee determines otherwise, Shares may be acquired pursuant to an option
granted under the Plan only upon receipt by the Company of notice in writing from the optionee of the optionee’s intention to exercise, specifying the number of Shares as to which the optionee desires to exercise the option and the date on
which the optionee desires to complete the transaction, and if required in order to comply with the Securities Act of 1933, as amended, containing a representation that it is the optionee’s present intention to acquire the Shares for investment
and not with a view to distribution. Unless the Committee determines otherwise, on or before the date specified for completion of the purchase of Shares pursuant to an option, the optionee must have paid the Company the full purchase price of such
Shares in cash or with the consent of the Committee, in whole or in part, in Common Stock of the Company valued at fair market value. The fair market value of Common Stock of the Company provided in payment of the purchase price shall be the closing
price of the Common Stock of the Company as reported in the New York Stock Exchange Composite Transactions in the Wall Street Journal or such other reported value of the Common Stock of the Company as shall be specified by the Committee, on the date
the option is exercised, or if such date is not a trading day, then on the immediately preceding trading day. No Shares shall be issued until full payment therefor has been made. With the consent of the Committee, an optionee may request the Company
to apply automatically the Shares to be received upon the exercise of a portion of a stock option (even though stock certificates have not yet been issued) to satisfy the purchase price for additional portions of the option. Each optionee who has
exercised an option shall immediately upon notification of the amount due, if any, pay to the Company in cash amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If additional withholding is or becomes
required beyond any amount deposited before delivery of the certificates, the optionee shall pay such amount to the Company on demand. If the optionee fails to pay the amount demanded, the Company may withhold that amount from other amounts payable
by the Company to the 
  

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 optionee, including salary, subject to applicable law. With the consent of the Committee, an optionee may satisfy this
obligation, in whole or in part, by having the Company withhold from the Shares to be issued upon the exercise that number of Shares that would satisfy the withholding amount due or by delivering Common Stock of the Company to the Company to satisfy
the withholding amount. Upon the exercise of an option, the number of Shares reserved for issuance under the Plan shall be reduced by the number of Shares issued upon exercise of the option. 
  
 7. Stock Bonuses. The Committee may award Shares under the Plan as
stock bonuses. Shares awarded as a stock bonus shall be subject to the terms, conditions, and restrictions determined by the Committee. The restrictions may include restrictions concerning transferability and forfeiture of the Shares awarded,
together with such other restrictions as may be determined by the Committee. The Committee may require the recipient to sign an agreement as a condition of the award, but may not require the recipient to pay any monetary consideration other than
amounts necessary to satisfy tax withholding requirements. The agreement may contain any terms, conditions, restrictions, representations and warranties required by the Committee. The certificates representing the Shares awarded shall bear any
legends required by the Committee. The Company may require any recipient of a stock bonus to pay to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the recipient
fails to pay the amount demanded, the Company may withhold that amount from other amounts payable by the Company to the recipient, including salary, subject to applicable law. With the consent of the Committee, a recipient may deliver Common Stock
of the Company to the Company to satisfy this withholding obligation. Upon the issuance of a stock bonus, the number of Shares reserved for issuance under the Plan shall be reduced by the number of Shares issued. 
  
 8. Restricted Stock. The Committee may issue Shares under the Plan for
such consideration (including promissory notes and services) as determined by the Committee, provided that in no event shall the consideration be less than 75 percent of fair market value of the Shares at the time of issuance. Shares issued under
the Plan shall be subject to the terms, conditions and restrictions determined by the Committee. The restrictions may include restrictions concerning transferability, repurchase by the Company and forfeiture of the Shares issued, together with such
other restrictions as may be determined by the Committee. All Shares issued pursuant to this paragraph 8 shall be subject to a purchase agreement, which shall be executed by the Company and the prospective recipient of the Shares prior to the
delivery of certificates representing such Shares to the recipient. The purchase agreement may contain any terms, conditions, restrictions, representations and warranties required by the Committee. The certificates representing the Shares shall bear
any legends required by the Committee. The Company may require any purchaser of restricted stock to pay to the Company in cash upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the
purchaser fails to pay the amount demanded, the Company may withhold that amount from other amounts payable by the Company to the purchaser, including salary, subject to applicable law. With the consent of the Committee, a purchaser may deliver
Common Stock of the Company to the Company to satisfy this withholding obligation. Upon the issuance of restricted stock, the number of Shares reserved for issuance under the Plan shall be reduced by the number of Shares issued. 
  
 9. Stock Appreciation Rights. 
  
 (a) Grant. Stock appreciation rights may be granted under the Plan by
the Committee, subject to such rules, terms, and conditions as the Committee prescribes. 
  
 (b) Exercise. 
  
 (i) A stock appreciation right shall be exercisable only at the time or times established by the Committee. If a stock appreciation right is granted in connection with an option, the stock appreciation right shall be exercisable only to the
extent and on the same conditions that the related option could be exercised. Upon exercise of a stock appreciation right, any option or portion thereof to which the stock appreciation right relates terminates. If a stock appreciation right is
granted in connection with an option, upon exercise of the option, the stock appreciation right or portion thereof to which the option relates terminates. 
  

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 (ii) The Committee may withdraw any stock appreciation right granted under the Plan at
any time and may impose any conditions upon the exercise of a stock appreciation right or adopt rules and regulations from time to time affecting the rights of holders of stock appreciation rights. Such rules and regulations may govern the right to
exercise stock appreciation rights granted before adoption or amendment of such rules and regulations as well as stock appreciation rights granted thereafter. 
  

(iii) Each stock appreciation right shall entitle the holder, upon exercise, to receive from the Company in exchange therefor an amount
equal in value to the excess of the fair market value on the date of exercise of one share of Class B Common Stock of the Company over its fair market value on the date of grant (or, in the case of a stock appreciation right granted in connection
with an option, the option price per Share under the option to which the stock appreciation right relates), multiplied by the number of Shares covered by the stock appreciation right or the option, or portion thereof, that is surrendered. Payment by
the Company upon exercise of a stock appreciation right may be made in Shares valued at fair market value, in cash, or partly in Shares and partly in cash, all as determined by the Committee. 
  
 (iv) For purposes of this paragraph 9, the fair market value
of the Class B Common Stock of the Company on the date a stock appreciation right is exercised shall be the closing price of the Class B Common Stock of the Company as reported in the New York Stock Exchange Composite Transactions in the Wall Street
Journal, or such other reported value of the Class B Common Stock of the Company as shall be specified by the Committee, on the date the stock appreciation right is exercised, or if such date is not a trading day, then on the immediately preceding
trading day. 
  
 (v) No fractional shares shall
be issued upon exercise of a stock appreciation right. In lieu thereof, cash shall be paid in an amount equal to the value of the fractional share. 
  
 (vi) Each stock appreciation right granted under the Plan by its terms shall be nonassignable and nontransferable by the holder, either
voluntarily or by operation of law, except by will or by the laws of descent and distribution of the state or county of the holder’s domicile at the time of death, and each stock appreciation right by its terms shall be exercisable during the
holder’s lifetime only by the holder; provided, however, that a stock appreciation right not granted in connection with an Incentive Stock Option shall also be transferable pursuant to a qualified domestic relations order as defined under the
Code or Title I of the Employee Retirement Income Security Act. 
  
 (vii) Each participant who has exercised a stock appreciation right shall, upon notification of the amount due, pay to the Company in cash amounts necessary to satisfy any applicable federal, state or local tax
withholding requirements. If the participant fails to pay the amount demanded, the Company may withhold that amount from other amounts payable by the Company to the participant including salary, subject to applicable law. With the consent of the
Committee a participant may satisfy this obligation, in whole or in part, by having the Company withhold from any Shares to be issued upon the exercise that number of Shares that would satisfy the withholding amount due or by delivering Common Stock
of the Company to the Company to satisfy the withholding amount. 
  
 (viii) Upon the exercise of a stock appreciation right for Shares, the number of Shares reserved for issuance under the Plan shall be reduced by the number of Shares issued. Cash payments of stock appreciation rights
shall not reduce the number of Shares reserved for issuance under the Plan. 
  
 10. Changes in Capital Structure. If the outstanding shares of Common Stock of the Company are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other
securities of the Company or of another corporation by reason of any reorganization, merger, consolidation, plan of exchange, recapitalization, reclassification, stock split-up, combination of shares or dividend payable in shares, appropriate
adjustment shall be made by the Committee in the number and kind of shares available for awards under the Plan, provided that this paragraph 10 shall not apply with respect 
  

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 to transactions referred to in paragraph 11. In addition, the Committee shall make appropriate adjustment in the number
and kind of shares as to which outstanding options and stock appreciation rights, or portions thereof then unexercised, shall be exercisable, to the end that the optionee’s proportionate interest is maintained as before the occurrence of such
event. The Committee may also require that any securities issued in respect of or exchanged for Shares issued hereunder that are subject to restrictions be subject to similar restrictions. Notwithstanding the foregoing, the Committee shall have no
obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the Committee. Any such
adjustments made by the Committee shall be conclusive. In the event of a merger, consolidation or plan of exchange affecting the Company to which paragraph 11 does not apply, in lieu of providing for options and stock appreciation rights as provided
above in this paragraph 10, the Committee may, in its sole discretion, provide a 30-day period prior to such event during which optionees shall have the right to exercise options and stock appreciation rights in whole or in part without any
limitation on exercisability and upon the expiration of such 30-day period all unexercised options and stock appreciation rights shall immediately terminate. 
  
 11. Special Acceleration in Certain Events. 
  
 (a) Special Acceleration. Notwithstanding any other provisions of the Plan, a special acceleration (“Special Acceleration”) of options
and stock appreciation rights outstanding under the Plan shall occur with the effect set forth in paragraph 11(b) at any time when the shareholders of the Company approve one of the following (“Approved Transactions”): 
  
 (i) Any consolidation, merger, plan of exchange, or
transaction involving the Company (“Merger”) in which the Company is not the continuing or surviving corporation or pursuant to which the Common Stock of the Company would be converted into cash, securities or other property, other than a
Merger involving the Company in which the holders of the Common Stock of the Company immediately prior to the Merger have the same proportionate ownership of common stock of the surviving corporation after the Merger; or 
  
 (ii) Any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of all or substantially all of the assets of the Company or the adoption of any plan or proposal for the liquidation or dissolution of the Company. 
  
 (b) Effect on Outstanding Options and Stock Appreciation Rights.
Except as provided below in this paragraph 11(b), upon a Special Acceleration pursuant to paragraph 11(a), all options and stock appreciation rights then outstanding under the Plan shall immediately become exercisable in full during the remainder of
their terms; provided, the Committee may, in its sole discretion, provide a 30-day period prior to an Approved Transaction during which optionees shall have the right to exercise options and stock appreciation rights, in whole or in part, without
any limitation on exercisability, and upon the expiration of such 30-day period all unexercised options and stock appreciation rights shall immediately terminate. 
  
 12. Corporate Mergers, Acquisitions, etc. The Committee may also grant options, stock appreciation rights, and stock
bonuses and issue restricted stock under the Plan having terms, conditions and provisions that vary from those specified in this Plan, provided that any such awards are granted in substitution for, or in connection with the assumption of, existing
options, stock appreciation rights, stock bonuses, and restricted stock, awarded or issued by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a transaction involving a corporate
merger, consolidation, plan of exchange, acquisition of property or stock, separation, reorganization or liquidation to which the Company or a parent or subsidiary corporation of the Company is a party. 
  
 13. Amendment of Plan. The Board of Directors may at any time, and
from time to time, modify or amend the Plan in such respects as it shall deem advisable because of changes in the law while the Plan is in effect or for any other reason. Except as provided in paragraphs 6(f), 9, 10 and 11, however, no change in an
award already granted shall be made without the written consent of the holder of such award. 
  

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 14. Approvals. The obligations of the Company under the Plan are subject to the approval of state
and federal authorities or agencies with jurisdiction in the matter. The Company will use its best efforts to take steps required by state or federal law or applicable regulations, including rules and regulations of the Securities and Exchange
Commission and any stock exchange or trading system on which the Company’s shares may then be listed or admitted for trading, in connection with the grants under the Plan. The foregoing notwithstanding, the Company shall not be obligated to
issue or deliver Class B Common Stock under the Plan if such issuance or delivery would violate applicable state or federal securities laws. 
  
 15. Employment and Service Rights. Nothing in the Plan or any award pursuant to the Plan shall (i) confer upon any employee any right to be
continued in the employment of the Company or any parent or subsidiary corporation of the Company or shall interfere in any way with the right of the Company or any parent or subsidiary corporation of the Company by whom such employee is employed to
terminate such employee’s employment at any time, for any reason, with or without cause, or to increase or decrease such employee’s compensation or benefits, or (ii) confer upon any person engaged by the Company any right to be retained or
employed by the Company or to the continuation, extension, renewal, or modification of any compensation, contract, or arrangement with or by the Company. 
  
 16. Rights as a Shareholder. The recipient of any award under the Plan shall have no rights as a shareholder with respect to any Shares until the
date of issue to the recipient of a stock certificate for such Shares. Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date is prior to the date such stock
certificate is issued. 
  

 8Deferred Compensation Plan Amended and Restated

 Exhibit 10.6 
  
 NIKE, INC. 
  
 DEFERRED COMPENSATION PLAN 
  
 (Amended and Restated Effective June 1, 2004) 
  
 Prepared by: 
  
 Lane Powell Spears Lubersky 
 601 S.W. Second Avenue, Suite 2100

 Portland, Oregon 97204 
 (503) 778-2100 

 NIKE, INC. DEFERRED COMPENSATION PLAN 
 June 1, 2004 Restatement 
  
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I TITLE AND DEFINITIONS
	  	2
			
	             1.1
	  	Title	  	2
	             1.2
	  	Definitions	  	2
		
	 ARTICLE II PARTICIPATION
	  	7
			
	             2.1
	  	Participation	  	7
		
	 ARTICLE III DEFERRAL ELECTIONS
	  	7
			
	             3.1
	  	Elections to Defer Compensation	  	7
	             3.2
	  	Company or Participating Employer Contributions	  	9
	             3.3
	  	Investment Elections	  	10
	             3.4
	  	Deferral of Long Term Incentive Payments	  	10
		
	 ARTICLE IV ACCOUNTS
	  	11
			
	             4.1
	  	Participant Accounts	  	11
		
	 ARTICLE V VESTING
	  	13
			
	             5.1
	  	Account	  	13
		
	 ARTICLE VI GENERAL DUTIES
	  	13
			
	             6.1
	  	Trustee Duties	  	13
	             6.2
	  	Company Contributions	  	13
	             6.3
	  	Department of Labor Determination	  	14
		
	 ARTICLE VII DISTRIBUTIONS
	  	14
			
	             7.1
	  	Distribution of Deferred Compensation — Termination of Service	  	14
	             7.2
	  	Scheduled and Unscheduled Withdrawals	  	15
	             7.3
	  	Unforeseeable Emergency	  	17
	             7.4
	  	Change of Control	  	17
	             7.5
	  	Section 162(m) Limitation	  	17
	             7.6
	  	Inability To Locate Participant	  	18
		
	 ARTICLE VIII ADMINISTRATION
	  	18
			
	             8.1
	  	Retirement Committee	  	18

  

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	 	  	 	  	Page

			
	             8.2
	  	Retirement Committee Action	  	18
	             8.3
	  	Powers and Duties of the Retirement Committee	  	18
	             8.4
	  	Construction and Interpretation	  	19
	             8.5
	  	Information	  	19
	             8.6
	  	Compensation, Expenses and Indemnity	  	19
	             8.7
	  	Quarterly Statements	  	20
		
	 ARTICLE IX CLAIMS PROCEDURE
	  	20
			
	             9.1
	  	Submission of Claim	  	20
	             9.2
	  	Denial of Claim	  	20
	             9.3
	  	Review of Denied Claim	  	20
	             9.4
	  	Decision upon Review of Denied Claim	  	21
		
	 ARTICLE X MISCELLANEOUS
	  	21
			
	             10.1
	  	Unsecured General Creditor	  	21
	             10.2
	  	Restriction Against Assignment	  	21
	             10.3
	  	Withholding	  	21
	             10.4
	  	Amendment, Modification, Suspension or Termination	  	22
	             10.5
	  	Governing Law	  	22
	             10.6
	  	Receipt or Release	  	22
	             10.7
	  	Payments on Behalf of Persons Under Incapacity	  	22
	             10.8
	  	No Employment Rights	  	22
	             10.9
	  	Headings, etc. Not Part of Agreement.	  	22
	             10.10
	  	Tax Liabilities from Plan	  	23

  

 ii 

 RECITALS 
  

(a) NIKE, Inc. (the “Company”) adopted the Supplemental Executive Savings Plan effective February 1, 1994 (the “SESP”). The SESP
was adopted to provide an opportunity for eligible employees to set aside additional amounts for retirement on a tax deferred basis and to provide a limited make-up of profit sharing contributions lost as a result of the limit on compensation under
Section 401(a)(17) of the Internal Revenue Code of 1986 (the “Code”) under the Company’s 401(k) Savings and Profit Sharing Plan for employees of NIKE, Inc. (the “Profit Sharing Plan”). The SESP is a nonqualified deferred
compensation plan for the benefit of a select group of management or highly-compensated employees of the Company. 
  
 (b) The Company adopted the Supplemental Executive Profit Sharing Plan effective as of June 1, 1995 (the “SEPSP”) to expand the make-up of
profit sharing contributions lost under the Profit Sharing Plan and to separate the restoration provisions from the elective deferral provisions of the SESP. 
  
 (c) Effective as of January 1, 1998, the Company combined the SEPSP and the SESP and made certain other changes. The resulting plan was renamed the NIKE,
Inc. Deferred Compensation Plan (the “Plan”). The Company amended and restated the Plan, effective as of January 1, 2000. 
  
 (d) Effective January 1, 2003, the Company amended and restated the Plan to reflect a change in trustee, the addition of an opportunity for Participants
to defer payments under the Long Term Incentive Plan of NIKE, Inc., and other administrative changes in the Plan. 
  
 (e) Effective July 1, 2003, the Company amended and restated the Plan to clarify certain administrative provisions of the Plan. 
  
 (f) The Company wishes again to amend and restate the Plan to clarify
treatment of long-term incentive payments made by certain of the Company’s subsidiaries and affiliates. 
  
 (g) Under the Plan, the Company is obligated to pay vested accrued benefits to Plan Participants and their Beneficiary or Beneficiaries from the
Company’s general assets. 
  
 (h) In connection with the
Plan, the Company has established an irrevocable trust (the “Trust”). The Company intends to make contributions to the Trust so that such contributions will be held by the Trustee and invested, reinvested and distributed, all in accordance
with the provisions of this Plan and the Trust Agreement. 
  
 (i)
The Company intends that amounts contributed to the Trust and the earnings thereon shall be used by the Trustee to satisfy the liabilities of the Company under the Plan in accordance with the procedures set forth herein. 
  
 (j) The Company intends that the Trust be a “grantor trust” with
the principal and income of the Trust treated as assets and income of the Company for federal and state income tax purposes. 
  

 1 

 (k) The Company intends that the assets of the Trust shall at all times be subject to the claims of the
general creditors of the Company as provided in the Trust Agreement. 
  
 (l) The Company intends that the existence of the Trust shall not alter the characterization of the Plan as “unfunded” for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and shall
not be construed to provide income to Plan Participants prior to actual payment of the vested accrued benefits thereunder. 
  
 NOW THEREFORE, the Company does hereby adopt this amended and restated Plan as follows: 
  
 ARTICLE I 
  
 TITLE AND DEFINITIONS 
  
 1.1 Title 
  
 This Plan shall be known as the NIKE, Inc. Deferred Compensation Plan. 
  
 1.2 Definitions 
  
 Whenever the following words and phrases are used in this Plan, with the first letter capitalized, they shall have the meanings specified below.

  
 (a) “Account” means for each Participant the
bookkeeping account maintained by the Retirement Committee that is credited with amounts equal to (1) the portion of the Participant’s Salary that he or she elects to defer, (2) the portion of the Participant’s Bonus that he or she elects
to defer, (3) the portion of the Participant’s Incentive Payments that he or she elects to defer, (4) the portion of the Participant’s Fees that he or she elects to defer, (5) the portion of the Participant’s Long Term Incentive
Payment that he or she elects to defer, (6) Company or Participating Employer contributions, if any, made to the Plan for the Participant’s benefit, and (7) adjustments to reflect deemed earnings pursuant to Section 4.1(e). 
  
 (b) “Actuarial Equivalent” means the actuarial present value
determined by the actuary appointed by the Company, in accordance with generally accepted actuarial principles, with a discount for mortality using the 1983 Group Annuity Mortality Table and a discount for interest at the 30-year Treasury rate for
July 1999 (5.98%). 
  
 (c) “Beneficiary” or
“Beneficiaries” means the beneficiary last designated in writing by a Participant in accordance with procedures established by the Retirement Committee to receive the benefits specified hereunder in the event of the Participant’s
death. No Beneficiary designation shall become effective until it is filed with the Retirement Committee during the Participant’s lifetime. 
  
 (d) “Board of Directors” or “Board” means the Board of Directors of the Company. 
  

 2 

 (e) “Bonus” means any cash-based incentive compensation (other than Incentive Payments
and Long Term Incentive Payments) that is payable to a Participant in addition to the Participant’s Salary. 
  
 (f) “Change of Control” means any of the following: 
  
 (1) The purchase or other acquisition by any person, entity or group of persons, within the meaning of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended (the “Act”), or any comparable successor provisions, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of forty percent or more of either the
outstanding shares of Class A and Class B common stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally; 
  
 (2) The approval by the stockholders of the Company of a reorganization, merger, or consolidation with respect to which
persons who were stockholders of the Company immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than fifty percent of the combined voting power entitled to vote generally in the election of
directors of the reorganized, merged or consolidated Company’s then-outstanding securities; 
  
 (3) A liquidation or dissolution of the Company; or 
  
 (4) A sale of all or substantially all of the Company’s assets. 
  
 (g) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (h) “Company” means NIKE, Inc. and any successor corporation
to NIKE, Inc. 
  
 (i) “Company Stock” means NIKE,
Inc. Class B common stock. 
  
 (j) “Compensation”
means the Bonus, Incentive Payments, Fees, and Salary that the Participant earns for services rendered to the Company or a Participating Employer. For purposes of Sections 6.2 and 7.2 only, “Compensation” also includes Long Term Incentive
Payments. 
  
 (k) “Consultant” means any person,
including an advisor but excluding Directors, engaged by the Company or a Participating Employer to render services to the Company or a Participating Employer and designated by the Retirement Committee as eligible to participate in the Plan.

  
 (l) “Director” means a non-Employee member of
the Board. 
  
 (m) “Director’s 1999 Transition
Retirement Benefit” means the Actuarial Equivalent of the Director’s Retirement Annuity as determined on September 1, 1999, divided by the fair market value of Company stock on September 1, 1999, and stated in units representing shares
of Company Stock. 
  

 3 

 (n) “Director’s Retirement Annuity” means the projected annual retirement benefit
payable to a Retired Director in the amount of eighteen thousand dollars ($18,000), reduced proportionately for each year of service completed as a Director less than ten (but with no benefit if five or fewer years of service). 
  
 (o) “Disability” means a Participant’s long-term
disability as defined in the Company’s or Participating Employer’s long-term disability plan for employees. 
  
 (p) “Distributable Amount” means the amount credited to a Participant’s Account. 
  
 (q) “Distribution Event” means, with respect to each
Participant, the Participant’s termination of Service for any reason, including Retirement, death or Disability, or, if specified by the Participant, a specific date. A Participant’s Distribution Event election shall be made in writing at
such time, on such form and subject to such terms and conditions as the Retirement Committee may specify. 
  
 (r) “Eligible Employee” means any Employee who is designated in writing as eligible to participate in the Plan by the Retirement
Committee from among a select group of management or highly-compensated Employees of the Company or a Participating Employer. 
  
 (s) “Employee” means a common law employee of the Company or a Participating Employer performing services regularly in the United States
or, if not performing services regularly in the United States, a common law employee of the Company or Participating Employer who is on U.S. payroll and participating in a Company-sponsored Global Transfer Program. 
  
 (t) “Fees” means, (i) in the case of non-employee members of
the Board, annual cash fees paid by the Company, including retainer fees, Retirement Committee fees and meeting fees, paid by the Company as compensation for serving on the Board, and (ii) in the case of any other non-employee service provider, the
cash fees paid to such individual for services rendered to the Company. 
  
 (u) “Fund” or “Funds” means one or more of the investment funds selected by the Retirement Committee pursuant to Section 3.3. 
  
 (v) “Incentive Payment” means that portion of Compensation that is variable and is directly related to a
Participant’s sales performance. Long Term Incentive Payments are not included in Incentive Payments for purposes of the Plan. 
  
 (w) “Initial Election Period” means the 30-day period following the Eligible Employee’s date of hire (or appointment to the Board or
commencement of services as a Consultant, as applicable) or, if later, upon first becoming an Eligible Employee, Director or Consultant. 
  
 (x) “Investment Return” means, for each Fund, an amount equal to the pre-tax rate of gain or loss on the assets of such Fund (net of
applicable fund and investment charges) from one Valuation Date to the immediately following Valuation Date. 
  

 4 

 (y) “Long Term Incentive Payment” means: 
  
 (1) an amount payable to a Participant under the Long Term Incentive Plan;

  
 (2) for payments made on or after August 1, 2004, an amount
payable to a Participant under a plan or program established by a Participating Employer, and approved by the Company, to provide incentives to Employees of the Participating Employer to attain specified performance targets over a multi-year period;
and 
  
 (3) an amount payable under the NIKE, Inc. 1990 Stock
Incentive Plan pursuant to an award with terms similar to awards made under the Long Term Incentive Plan. 
  
 (z) “Long Term Incentive Plan” means the Long Term Incentive Plan of NIKE, Inc., as amended from time to time. 
  
 (aa) “Participant” means any Consultant, Director or
Eligible Employee who elects to defer Compensation in accordance with Section 3.1. 
  
 (bb) “Participating Employer” means an entity directly or indirectly controlled by the Company or in which the Company has a significant equity or investment interest, which the Retirement Committee
has designated as a Participating Employer in this Plan. 
  
 (cc)
“Payment Commencement Date” means: 
  
 (1) in
the case of distributions which are paid in the form of a cash lump sum payment under Sections 7.1(a) and 7.1(b), as soon as administratively practicable after the end of the calendar quarter during which the Participant terminates Service;

  
 (2) in the case of distributions which are paid in the form
of quarterly installments under Section 7.1(a), on or before the January 31 following the Plan Year during which the Participant terminates Service; 
  
 (3) in the case of distributions on account of Plan termination, distributions otherwise payable under (1) or (2) may be subject to earlier distribution
at the discretion of the Committee. 
  
 (dd)
“Plan” means the NIKE, Inc. Deferred Compensation Plan set forth herein, now in effect, or as amended from time to time. 
  
 (ee) “Plan Year” means the calendar year. 
  
 (ff) “Predecessor Plans” means the NIKE, Inc. Supplemental Executive Savings Plan and the NIKE, Inc. Supplemental Executive Profit
Sharing Plan. 
  
 (gg) “Profit Sharing Plan”
means the 401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc. 
  

 5 

 (hh) “Retirement” means the Participant’s termination of employment if at the time
thereof the Participant has completed at least sixty (60) whole months of Service. 
  
 (ii) “Retired Director” or “Director’s Retirement” means the cessation of a Director’s services on the Board on or after age 65 with ten (10) years of service, but no later than
age 72 if the Director commenced service as a Director after the Company’s 1993 fiscal year. 
  
 (jj) “Retirement Committee” means the Retirement Committee appointed by the Board to administer the Plan in accordance with Article VIII.
Unless specified otherwise by the Board, the “Retirement Committee” shall mean the Retirement Committee established under the Profit Sharing Plan. 
  
 (kk) “Salary” means the Employee’s base salary for the Plan Year. Salary excludes any other form of compensation such as restricted
stock, proceeds from stock options or stock appreciation rights, severance payments, moving expenses, car or other special allowance, adjustments for overseas employment other than the 12.5% transfer premium, or any other amounts included in an
Eligible Employee’s taxable income that is not compensation for services. Deferral elections shall be computed before taking into account any reduction in taxable income by salary reduction under Code Sections 125 or 401(k), or under this Plan.

  
 (ll) “Service” means performance of services
for the Company (including any entity that is directly or indirectly controlled by the Company or any entity in which the Company has a significant equity or investment interest, as determined by the Company for purposes of this Plan) or a
Participating Employer as an Employee, Director or Consultant. 
  
 (mm) “Valuation Date” means each date on which Accounts are valued. The Retirement Committee shall establish the Valuation Dates under the Plan. 
  
 (1) For purposes of determining the value of each Participant’s Account balance, the Valuation Date means each day
that the New York Stock Exchange is open for trading. 
  
 (2) For
purposes of Unscheduled Withdrawals and Unforeseeable Emergencies, the Valuation Date means the date the Retirement Committee approves a request for an Unscheduled Withdrawal or Unforeseeable Emergency withdrawal. 
  
 (3) For purposes of calculating lump sum payments under Section 7.1, the
Valuation Date means the last day of the calendar quarter preceding the Payment Commencement Date. 
  
 (4) For purposes of calculating the dollar amount of quarterly installment payments, the Valuation Date means the December 31 immediately preceding the
year in which the installments are paid. As of the last day of each calendar quarter of each year in which installments are paid, the dollar amount of the quarterly installment payment will be deducted from the Participant’s Account based on
the value of the Participant’s deemed investments on the last day of the calendar quarter. 
  

 6 

 (5) For purposes of determining the amount of the final installment payment, the Valuation Date means
the December 31 of the Plan Year in which the final installment payment is made. The final installment payment will be equal to the Participant’s remaining Account balance as of the Valuation Date. 
  
 (6) Any valuation under this Plan shall be based on the closing market
prices of the investment Funds on the applicable Valuation Date or, if the Valuation Date is not a day on which the New York Stock Exchange is open for trading, the preceding such trading day. 
  
 (7) Payment amounts and deductions from Accounts are based on asset values
as of the Valuation Date even though actual payments to the Participant may be delayed for an administratively reasonable period of time to allow for processing and reporting of payments and withholding of applicable taxes. 
  
 ARTICLE II 
  
 PARTICIPATION 
  
 2.1 Participation 
  
 An Eligible Employee, Director or Consultant shall become a Participant in
the Plan by electing to defer a portion of his or her Compensation in accordance with Section 3.1. 
  
 ARTICLE III 
  
 DEFERRAL ELECTIONS 
  
 3.1 Elections to Defer
Compensation 
  
 (a) Initial Election Period. Each
Eligible Employee, Director or Consultant may elect to defer Compensation by filing an election with the Retirement Committee that conforms to the requirements of this Section 3.1, on a form provided by the Retirement Committee, no later than the
last day of his or her Initial Election Period. Until modified, Deferral Elections filed with respect to the 1998 Plan Year shall supersede any and all prior deferral elections made in connection with the Predecessor Plans. 
  
 (b) General Rule. The amount of Compensation that an Eligible
Employee, Director or Consultant may elect to defer is as follows: 
  
 (1) Any whole percentage of Salary up to 100%; 
  
 (2)
Any whole percentage of Bonus up to 100%; 
  
 (3) Any whole
percentage of Incentive Payments up to 100%; 
  
 (4) Any whole
percentage of Fees up to 100%; 
  

 7 

 provided, however, that no election under this Section 3.1 or Section 3.4 shall be effective to reduce the Compensation
and Long Term Incentive Payments paid to an Eligible Employee to an amount that is less than the amount necessary to pay applicable employment taxes (e.g., FICA, hospital insurance) payable with respect to amounts deferred hereunder, amounts
necessary to satisfy any other benefit plan withholding obligations, any resulting income taxes payable with respect to Compensation that cannot be so deferred, and any amounts necessary to satisfy any wage garnishment or similar type obligations.

  
 (c) Minimum Deferrals. For each full Plan Year during
which the Eligible Employee is a Participant, the minimum dollar amount that may be deferred under this Section 3.1 is $5,000 ($1,000 in the case of Directors and Consultants). 
  
 (d) Effect of Initial Election. An election to defer Salary, Incentive Payments or Fees made during an Initial
Election Period shall be effective as to Salary, Incentive Payments, and Fees earned beginning with the first pay period beginning after the Initial Election Period. Employees who first became Eligible Employees during a Plan Year may make an
election to defer Bonuses payable in subsequent Plan Years by making deferral elections in accordance with subsections 3.1(e) and (f). 
  
 (e) Duration of Deferral Election. A Compensation deferral election made under paragraph (a) or paragraph (f) of this Section 3.1 shall remain in
effect, notwithstanding any change in the Participant’s Compensation until modified or terminated as provided herein. A Participant may irrevocably elect at any time to reduce the percentage to be deferred from Salary, Incentive Payments, and
Fees earned in the remainder of the Plan Year to zero, but a Participant may not make any other election change during a Plan Year. Subject to the minimum deferral requirement of subsection (c) of this Section, the percentage of Salary, Bonus,
Incentive Payments and Fees designated by the Participant for deferral may be modified by filing a new election, in accordance with the terms of this Section, with the Committee not later than December 15 (or such earlier date as the Committee may
establish) of the year immediately preceding the beginning of the Plan Year for which the election shall be in effect. A Participant’s deferral election shall terminate with respect to future Compensation upon the Participant’s ceasing to
be an Eligible Employee, Director or Consultant. 
  
 (f)
Elections Other Than Elections During the Initial Election Period. Any Eligible Employee, Director or Consultant who fails to elect to defer Compensation during his or her Initial Election Period may subsequently become a Participant by
filing an election, on a form provided by the Retirement Committee, to defer Compensation as described in paragraph (b) above. An election to defer Compensation must be filed no later than December 15 (or such earlier date as the Retirement
Committee may establish) and will be effective for Salary, Incentive Payments and Fees earned beginning with the first pay period beginning on and after the beginning of the next succeeding Plan Year and for any Bonus payable in the next succeeding
Plan Year. 
  

 8 

 (g) Director’s 1999 Transition Election. Any Director as of September 1, 1999, shall have
made an election on or before September 24, 1999, to either remain eligible for the Director’s Retirement Annuity or to convert such annuity to the Director’s 1999 Transition Retirement Benefit, in either case such benefit not payable
until the Director’s Retirement. In the event an electing Director converted the Director’s Retirement Annuity, such election shall be irrevocable and paid as provided herein. 
  
 3.2 Company or Participating Employer Contributions 
  
 (a) Eligibility. An Eligible Employee who qualifies for a contribution for a Plan Year under the Profit Sharing Plan
(or a Participating Employer’s qualified retirement plan, if applicable) shall be eligible for a Company or Participating Employer contribution under this Plan for such Plan Year if he or she either (i) makes a Deferral Election under 3.1 for
the Plan Year, or (ii) receives compensation under the Profit Sharing Plan (or Participating Employer’s qualified retirement plan, if applicable) exceeding the Code § 401(a)(17) limit of $200,000 (as indexed) for its Plan Year, or both.

  
 (b) Contribution. An Eligible Employee who is eligible
under subsection 3.2(a) shall be credited with a “Restoration Amount” for each Plan Year. “Restoration Amount” means the amount by which the Eligible Employee’s allocated share of the “Profit Sharing Contribution”
(as defined in the Profit Sharing Plan or the Participating Employer’s qualified retirement plan) for the corresponding Plan Year under the Profit Sharing Plan or Participating Employer’s qualified retirement plan would be higher if
calculated on the basis of Compensation as defined in this Plan (i) determined before any reduction for deferral of Compensation under this Plan; and (ii) without regard to the Code § 401(a)(17) limit. 
  
 (c) Discretionary Contributions. In addition to contributions in
accordance with Section 3.2(b), the Company or Participating Employer may, in its sole discretion, make discretionary contributions to the Accounts of one or more Participants at such times and in such amounts as the Board, the Participating
Employer or the Retirement Committee may determine. 
  
 (d)
Director’s Retirement Contribution. In addition to any contributions made in accordance with Sections 3.2 (a)-(c), the Company shall credit to the Accounts of any electing Director the number of shares of Company Stock equivalent to the
electing Director’s 1999 Transition Retirement Benefit. The Company may contribute such shares corresponding to the total of all the electing Director’s benefits, at such time and in such amount as the Board or the Committee may determine,
provided that any shares so contributed shall remain in the name of the Company (or any trust established by the Company for this purpose), and shall be its sole property in which no electing Director shall have any separable interest. 

 

 9 

 3.3 Investment Elections 
  
 (a) Hypothetical Investment Funds. The Retirement Committee may, in its discretion, provide each Participant with a
list of investment Funds available for hypothetical investment, and the Participant may designate, in a manner specified by the Retirement Committee, one or more Funds that his or her Account will be deemed to be invested in for purposes of
determining the amount of earnings to be credited to that Account. The Retirement Committee may, from time to time, in its sole discretion select a commercially available fund to constitute the Fund actually selected. The Investment Return of each
such commercially available fund shall be used to determine the amount of earnings to be credited to Participants’ Accounts under Section 4.1(e). 
  
 (1) Deemed Investment Elections. In making the designation pursuant to this Section 3.3, the Participant may specify that all or any 1% multiple
of his or her Account be deemed to be invested in one or more of the Funds offered by the Retirement Committee. Subject to such limitations and conditions as the Retirement Committee may specify, a Participant may change the designation made under
this Section 3.3 in such manner and at such time or times as the Retirement Committee shall specify. If a Participant fails to elect a Fund under this Section 3.3, or if the Retirement Committee shall not provide Participants with a list of Funds
pursuant to this Section 3.3, the Participant shall be deemed to have elected a money market fund. 
  
 (2) No Company Obligation. The Company may, but need not, acquire investments corresponding to those designated by the Participants hereunder, and
it is not under any obligation to maintain any investment it may make. Any such investments, if made, shall be in the name of the Company, and shall be its sole property in which no Participant shall have any interest. 
  
 (b) Director’s Plan Investments. A 1999 Director’s
Transition Retirement Plan Subaccount shall be maintained on behalf of each Director participating in the Plan. The entirety of an electing Director’s 1999 Transition Retirement Benefit shall be maintained in the 1999 Transition Retirement Plan
Subaccount, reflecting the number of shares of Company Stock in which the electing Director is vested and entitled to under the Plan as his or her 1999 Transition Retirement Benefit. The subaccount balance shall be expressed in units (denominated in
shares of Company Stock). The number of units reflected in an electing Director’s 1999 Transition Retirement Benefit subaccount shall be appropriately adjusted periodically to reflect any dividend, split, split-up or any combination or
exchange, however, accomplished, with respect to the shares of Company Stock represented by such units. 
  
 3.4 Deferral of Long Term Incentive Payments 
  
 (a) Deferral Permitted. A Participant who is eligible for a potential Long Term Incentive Payment may elect to defer receipt of the Long Term
Incentive Payment under the provisions of this Section 3.4. The deferral election shall be expressed as a percentage of the potential Long Term Incentive Payment, in a whole percentage between zero and 100. 
  

 10 

 (b) Timing of Deferral—General Rule. Long Term Incentive Payments generally are made in
August of each year, based on actual financial performance compared against targets established by the Company or Participating Employer for the Company’s or Participating Employer’s three preceding fiscal years. In order to defer
anticipated Long Term Incentive Payments under this Plan, a Participant must make a deferral election no later than the December 15 (or such earlier date as the Retirement Committee may establish) of the second calendar year preceding the calendar
year in which the Long Term Incentive Payment (if any) is payable. For example, for the Long Term Incentive Payment that is anticipated to be paid in August 2004, the deferral election would have to be made no later than December 15, 2002. However,
if the Company or Participating Employer provides for potential interim payouts of Long Term Incentive Payments at the end of the first fiscal year of a multi-year award period, then a Participant may make a deferral election with respect to such a
potential first year interim payout at any time up to December 15 (or such earlier date as the Retirement Committee may establish) of the first calendar year preceding the calendar year in which the interim payout (if any) is payable. 
  
 (c) Form of Deferral. In order to defer Long Term Incentive Payments
into this Plan, the Participant must irrevocably agree to receive the Long Term Incentive Payment in the form of cash and not as Company stock. 
  
 (d) Duration of Deferral Election. A deferral election under this Section 3.4 shall remain in effect from year to year until modified or terminated
as provided herein. The percentage of Long Term Incentive Payments designated by the Participant for deferral may be modified by filing a new election, in accordance with the terms of this Section 3.4, with the Retirement Committee not later than
December 15 (or such earlier date as the Retirement Committee may establish) of the second calendar year (or, with respect to potential first year interim payouts described in Section 3.4(b), December 15 of the first calendar year) preceding the
beginning of the Plan Year for which the election shall be in effect. 
  
 (e) Irrevocable Election. Once the deadline established by the Retirement Committee for making or modifying a deferral election has passed, a Participant’s election to defer receipt of a Long Term Incentive Payment under this
Plan is irrevocable with respect to the Long Term Incentive Payment to which the deferral election relates. 
  
 (f) Administration. Long Term Incentive Payments deferred under this section shall be accounted for as part of the Participant’s Account and
subject to the investment, distribution, and other provisions applicable to such Accounts. 
  
 ARTICLE IV 
  
 ACCOUNTS

  
 4.1 Participant Accounts 
  
 The Retirement Committee shall establish and maintain an Account for each
Participant under the Plan. Each Participant’s Account may be further divided into separate subaccounts (“investment fund subaccounts”), corresponding to investment Funds elected by the 
  

 11 

 Participant pursuant to Section 3.3 or as otherwise determined by the Retirement Committee to be necessary or appropriate
for proper Plan administration. A Participant’s Account shall be credited as follows: 
  
 (a) Salary, Incentive Payments and Fees Deferrals. As soon as practicable following the end of each applicable pay period, the Retirement Committee shall credit the investment fund subaccounts of the
Participant’s Account with an amount equal to Salary, Incentive Payments or Fees deferred by the Participant during each pay period in accordance with the Participant’s election; that is, the portion of the Participant’s deferred
Salary, Incentive Payments or Fees that the Participant has elected to be deemed to be invested in a certain type of investment Fund shall be credited to the investment fund subaccount corresponding to that investment Fund. 
  
 (b) Bonus Deferrals. As soon as practicable after each Bonus or
partial Bonus would have been paid, the Retirement Committee shall credit the investment fund subaccounts of the Participant’s Account with an amount equal to the portion of the Bonus deferred by the Participant’s election; that is, the
portion of the Participant’s deferred Bonus that the Participant has elected to be deemed to be invested in a certain type of investment Fund shall be credited to the investment fund subaccount corresponding to that investment Fund. 

 
 (c) Company or Participating Employer Contribution. As soon as
practicable after the last day of the Plan Year or such earlier time or times as the Retirement Committee may determine, the Retirement Committee shall credit the investment fund subaccounts of the Participant’s Account with an amount equal to
the portion, if any, of any Company or Participating Employer contribution made to or for the Participant’s benefit in accordance with Section 3.2; that is, the portion of the Participant’s Company or Participating Employer contribution,
if any, that the Participant has elected to be deemed to be invested in a certain type of investment Fund shall be credited to the investment fund subaccount corresponding to that investment Fund. 
  
 (d) Long Term Incentive Payments. As soon as practicable after Long
Term Incentive Payments are declared and payable, the Committee shall credit the investment fund subaccounts of the Participant’s Account with an amount equal to the portion of the Long Term Incentive Payment deferred by the Participant’s
election under Section 3.4. 
  
 (e) Investment Returns. On
each Valuation Date, each investment fund subaccount of a Participant’s Account shall be adjusted for deemed Investment Returns in an amount equal to that determined by multiplying the balance credited to such investment fund subaccount as of
the preceding Valuation Date by the Investment Return for the corresponding Fund selected by the Company. 
  

 12 

 ARTICLE V 
  

VESTING 
  
 5.1 Account 
  
 (a) Compensation Deferrals. A Participant’s Account attributable to Compensation deferred by a Participant pursuant to the terms of this Plan,
together with any amounts credited to the Participant’s Account under Section 4.1(e) with respect to such deferrals, shall be 100% vested at all times. 
  
 (b) Company or Participating Employer Contributions. Unless specified otherwise by the Board, a Participating Employer or the Retirement Committee,
the value of a Participant’s Account attributable to any Company or Participating Employer contributions pursuant to Section 3.2, together with any amounts credited to the Participant’s Account under Section 4.1(e) with respect to such
amounts, shall be vested in the same proportion as the profit-sharing contributions made to the Participant’s account in the Profit Sharing Plan or in the Participating Employer’s qualified retirement plan for the corresponding plan year.

  
 (c) Director’s 1999 Transition Retirement Plan
Investments. An electing Director’s 1999 Transition Retirement Benefit, together with any earnings thereon, shall be 100 percent vested at all times. 
  

(d) Long Term Incentive Payments. The portion of a Participant’s Account attributable to Long Term Incentive Payments deferred by the
Participant pursuant to Section 3.4, together with any investment returns credited to the Participant’s Account under Section 4.1(e) with respect to such amounts, shall be 100 percent vested at all times. 
  
 ARTICLE VI 
  
 GENERAL DUTIES 
  
 6.1 Trustee Duties 
  
 The Trustee shall manage, invest and reinvest the Trust Fund as provided in
the Trust Agreement. The Trustee shall collect the income on the Trust Fund, and make distributions therefrom, all as provided in this Plan and in the Trust Agreement. 
  
 6.2 Company Contributions 
  

While the Plan remains in effect, the Company shall make contributions to the Trust Fund at least once each quarter. As soon as practicable after the
close of each Plan quarter, the Company shall make an additional contribution to the Trust Fund to the extent that previous contributions to the Trust Fund for the current Plan quarter are less than the total of the Compensation deferrals made by
each Participant plus Company or Participating Employer contributions, if any, accrued as of the close of the current Plan quarter. The Trustee shall not be liable for any failure by the Company to provide contributions sufficient to pay all accrued
benefits under the Plan in accordance with the terms of this Plan. 
  

 13 

 6.3 Department of Labor Determination 
  
 In the event that any Participants are found to be ineligible, that is, not
members of a select group of management or highly compensated employees, according to a determination made by the Department of Labor, the Retirement Committee shall take whatever steps it deems necessary, in its sole discretion, to equitably
protect the interests of all Participants. 
  
 ARTICLE VII

  
 DISTRIBUTIONS 
  
 7.1 Distribution of Deferred Compensation — Termination of
Service 
  
 (a) Retirement; Disability; Death

  
 (1) Form of Payment. In the event a Participant’s
Service terminates as a result of Retirement, long-term disability (as defined in the Company’s or Participating Employer’s long-term disability plan for its employees) or death, and provided further that such Participant does not return
to Service prior to the Payment Commencement Date, the Participant’s Distributable Amount shall be paid to the Participant (and after his or her death to his or her Beneficiary) in substantially equal quarterly installments over 15 years
beginning on his or her Payment Commencement Date. If the Participant’s Distributable Amount is paid in installments, the Participant’s Account value shall continue to be adjusted for investment returns pursuant to Section 4.1(e) of the
Plan and the installment amount shall be adjusted as of each December 31 for installments payable in the following year to reflect gains and losses until all amounts credited to the Participant’s Account under the Plan have been distributed.
Notwithstanding the foregoing, a Participant may, in lieu of quarterly installments over 15 years, elect a cash lump sum payment or quarterly installments over five or 10 years by filing an election with the Retirement Committee within 30 days of
the date he or she first becomes a Participant. 
  
 (2) Change
in Form. A Participant may change his or her form of distribution under this subsection 7.1(a) provided that his or her change is filed with the Retirement Committee at least one year prior to his or her Payment Commencement Date; otherwise, the
most recent distribution election made by the Participant one (1) or more years prior to the Payment Commencement Date shall govern. 
  
 (3) Small Benefit Amounts. Notwithstanding the foregoing, if the Participant’s Distributable Amount is $25,000 or less, the Distributable
Amount shall automatically be distributed in the form of a cash lump sum as soon as administratively practicable after the Participant’s Payment Commencement Date. 
  
 (4) Section 162(m). Amounts payable pursuant to this subsection 7.1(a) shall be subject to the limitation on payout
under Section 7.5. 
  

 14 

 (b) Other Termination. In the case of a Participant whose Service terminates for any reason other
then Retirement, long-term disability, or death, the Participant’s Distributable Amount shall be paid to the Participant in the form of a cash lump sum on the Participant’s Payment Commencement Date, provided that no such distribution
shall occur in the event the Participant returns to Service prior to the Payment Commencement Date. 
  
 (c) Death While Receiving Benefits. If the Participant is in pay status at the time of death, the Beneficiary shall be paid the remaining quarterly
installments as they come due. 
  
 7.2 Scheduled and
Unscheduled Withdrawals 
  
 (a) Scheduled Withdrawals.
A Participant may, in connection with his or her Compensation deferral election for a Plan Year, specify a withdrawal (a “Scheduled Withdrawal”) of all of his or her Account attributable to Compensation deferred for such Plan Year, subject
to the following restrictions: 
  
 (1) Three Year Rule. A
Participant’s Scheduled Withdrawal election must specify a Scheduled Withdrawal date that is on a December 31 at least three years after the date the election is received by the Company. 
  
 (2) Procedure. The election to take a Scheduled Withdrawal shall be
made by filing a form provided by and filed with the Retirement Committee. 
  
 (3) Amount Distributable. The amount payable to a Participant in connection with a Scheduled Withdrawal shall in all cases be 100 percent of the Compensation deferred for the Plan Year to which the Scheduled
Withdrawal election applies, together with any earnings credited to such deferrals pursuant to Section 4.1(e), determined as of the Scheduled Withdrawal date, provided that: 
  
 (A) at the time of making a deferral election under Article III, a Participant may make a different
Scheduled Withdrawal election for Long Term Incentive Payments than for other forms of Compensation deferred for the Plan Year; and 
  
 (B) no portion of the Account attributable to Company or Participating Employer contributions described in Section 3.2, if any, shall be
eligible for Scheduled Withdrawal. 
  
 (4) Postponement. A
Participant may, at least one year prior to a Scheduled Withdrawal date, revoke his or her Scheduled Withdrawal election in favor of a later Scheduled Withdrawal date that is at least one year later, provided that a Participant may not postpone a
Scheduled Withdrawal more than twice. 
  
 (5) Form.
Subject to Section 7.5, payment of a Scheduled Withdrawal shall be made in a single lump sum as soon as administratively practicable after the Scheduled Withdrawal date. 
  

 15 

 (6) Effect of Termination. A Participant’s Scheduled Withdrawal election shall become void
and of no effect upon termination of the Participant’s Service for any reason before the Participant’s Scheduled Withdrawal date. In such event, the distribution provisions of Section 7.1 shall apply. 
  
 (b) Unscheduled Withdrawals. Participants may request a withdrawal of
amounts from their Accounts attributable to Compensation deferrals prior to termination of Service (an “Unscheduled Withdrawal”) or a Scheduled Withdrawal. Upon receiving an Unscheduled Withdrawal request, the Retirement Committee shall
determine, in its discretion as applied in a uniform and nondiscriminatory manner, whether to permit any such Unscheduled Withdrawal and the amount, if any, to be withdrawn, subject to the following restrictions: 
  
 (1) Procedure. The election to take an Unscheduled Withdrawal shall
be made by filing a form provided by and filed with the Retirement Committee. 
  
 (2) Amount. The amount payable to a Participant in connection with an Unscheduled Withdrawal shall in all cases equal 90% of the amount requested by the Participant or, if lesser, 90% of the Unscheduled
Withdrawal amount approved by the Retirement Committee; provided, however, that the maximum amount payable to a Participant in connection with an Unscheduled Withdrawal shall be 90% of the Distributable Amount as of the Valuation Date for
Unscheduled Withdrawals, and provided further, that no portion of the amount attributable to Company or Participating Employer contributions pursuant to Section 3.2, if any, shall be eligible for an Unscheduled Withdrawal. 
  
 (3) Forfeiture. If a Participant receives an Unscheduled Withdrawal,
the remaining portion of the requested or approved amount, as applicable (i.e., 10% of such amount), shall be permanently forfeited and neither the Company nor a Participating Employer shall have any obligation to the Participant or his Beneficiary
with respect to such forfeited amount. The Company may use the forfeitures to pay Plan expenses, to reduce future Company contributions, or for any other legal purpose, consistent with the terms of the Trust. 
  
 (4) Suspension of Participation. If a Participant receives an
Unscheduled Withdrawal, the Participant shall be ineligible to Participate in the Plan for the balance of the Plan Year in which the Unscheduled Withdrawal occurs and the following Plan Year. 
  
 (5) Limit on Unscheduled Withdrawals. A Participant shall be limited
to two Unscheduled Withdrawals during the entire period of his or her Plan participation. 
  
 (6) Partial Unscheduled Withdrawals. An Unscheduled Withdrawal pursuant to this Section 7.2 of less than 90% of the Participant’s Distributable Amount shall be made pro rata from his or her assumed
investments according to the balances in such investments as of the Valuation Date for Unscheduled Withdrawals. Subject to the foregoing and subject to the Retirement Committee’s approval, payment of any amount with respect to which a
Participant has filed a request under this Section 7.2 shall be made in a single cash lump sum as soon as administratively practicable after the Unscheduled Withdrawal election is approved by the Retirement Committee. 
  

 16 

 7.3 Unforeseeable Emergency 
  
 The Retirement Committee may, pursuant to rules adopted by it and applied in a uniform manner, accelerate the date of
distribution of a Participant’s Account because of an Unforeseeable Emergency at any time. “Unforeseeable Emergency” shall mean an unforeseeable, severe financial condition resulting from (a) a sudden and unexpected illness or
accident of the Participant or his or her dependent (as defined in Section 152(a) of the Code); (b) loss of the Participant’s property due to casualty; or (c) other similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, but which may not be relieved through other available resources of the Participant, as determined by the Retirement Committee in accordance with uniform rules adopted by it. Unless the Retirement
Committee, in its discretion, determines otherwise, distribution pursuant to this subsection of less than the Participant’s entire interest in the Plan shall be made pro rata from his or her assumed investments according to the balances in such
investments as of the Valuation Date for Unforeseeable Emergencies. Subject to the foregoing, payment of any amount with respect to which a Participant has filed a request under this subsection shall be made in a single cash lump sum as soon as
administratively practicable after the Retirement Committee approves the Participant’s request. 
  
 7.4 Change of Control 
  
 Notwithstanding anything in this Article 7 to the contrary, including, but not limited to, Section 7.5 below, the Distributable Amount shall be paid to
each Participant, or to the Beneficiary of each deceased Participant, within 30 days after the date of a Change of Control. Such amount shall be paid in such form as elected by the Participant with respect to a distribution by reason of the
Participant’s Retirement or, if no such election has been filed, in a lump sum. 
  
 7.5 Section 162(m) Limitation 
  
 If the Retirement Committee determines in good faith prior to a Change of Control that there is a reasonable likelihood that all or any portion of any payment of benefits under this Article 7 to a Participant would not be deductible for
federal income tax purposes by the Company or a Participating Employer because of a limitation on the total amount of the Participant’s deductible compensation from the Company or the Participating Employer, including any other such
compensation already paid to the Participant earlier in the same fiscal year of the Company or Participating Employer, the following shall apply: 
  
 (a) Deferred Payment. Payment of the non-deductible amount shall be deferred until the first day of the following fiscal year of the Company or
Participating Employer that employs the Participant; 
  
 (b)
Additional Deferral. If the amount deferred under subsection (a) would exceed the limitation of the total amount of the Participant’s deductible compensation from the Company or Participating Employer for the following fiscal year, the
excess shall be deferred to the first day of the succeeding fiscal year in which the deductibility of compensation paid or payable to the Participant will not be so limited, subject to subsection (c); 
  

 17 

 (c) Limit on Deferral. In no event shall any payment be deferred under this Section 7.5 more than
three years from the date scheduled for payment under this Section 7; 
  
 (d) Investment Returns. Adjustment for earnings shall continue to be applied under Section 4.1(e) during the period of deferral under this Section 7.5. 
  
 7.6 Inability To Locate Participant 
  
 In the event that the Retirement Committee is unable to locate a Participant or Beneficiary within two years following the
Participant’s Distribution Event, the amount allocated to the Participant’s Deferral Account shall be forfeited. If, after such forfeiture, the Participant or Beneficiary later claims such benefit, such benefit (calculated immediately
prior to the forfeiture) shall be reinstated without interest or earnings. 
  
 ARTICLE VIII 
  
 ADMINISTRATION 
  
 8.1 Retirement Committee

  
 A Retirement Committee shall be appointed by, and serve at
the pleasure of, the Board. The number of members comprising the Retirement Committee shall be determined by the Board, which may from time to time vary the number of members. A member of the Retirement Committee may resign by delivering a written
notice of resignation to the Board. The Board may remove any member by delivering a certified copy of its resolution of removal to such member. Vacancies in the membership of the Retirement Committee shall be filled promptly by the Board.

  
 8.2 Retirement Committee Action 
  
 The Retirement Committee shall act at meetings by affirmative vote of a
majority of the members of the Retirement Committee. Any action permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a written consent to the action is signed by all members of the Retirement Committee and such
written consent is filed with the minutes of the proceedings of the Retirement Committee. A member of the Retirement Committee shall not vote or act upon any matter which relates solely to himself or herself as a Participant. The chairman or any
other member or members of the Retirement Committee designated by the chairman may execute any certificate or other written direction on behalf of the Retirement Committee. 
  
 8.3 Powers and Duties of the Retirement Committee 
  
 (a) General. The Retirement Committee, on behalf of the Participants and their Beneficiaries, shall enforce the Plan
in accordance with its terms, shall be charged with the general administration of the Plan and shall have all powers necessary to accomplish its purposes, including, but not by way of limitation, the following: 
  
 (1) To select the funds to be the Funds in accordance with Section 3.3
hereof; 
  

 18 

 (2) To construe and interpret the terms and provisions of this Plan; 
  
 (3) To amend, modify, suspend or terminate the Plan in accordance with
Section 9.4; 
  
 (4) To compute and certify the amount and kind
of benefits payable to Participants and their Beneficiaries and to direct the Trustee as to the distribution of Plan assets; 
  
 (5) To maintain all records that may be necessary for the administration of the Plan; 
  
 (6) To provide for the disclosure of all information and the filing or provision of all reports and statements to
Participants, Beneficiaries or governmental agencies as shall be required by law; 
  
 (7) To make and publish such rules for the regulation of the Plan and procedures for the administration of the Plan as are not inconsistent with the terms hereof; and 
  
 (8) To appoint a plan administrator or any other agent, and to delegate to
them such powers and duties in connection with the administration of the Plan as the Retirement Committee may from time to time prescribe. 
  
 8.4 Construction and Interpretation 
  
 The Retirement Committee shall have full discretion to construe and interpret the terms and provisions of this Plan, which interpretation or construction
shall be final and binding on all parties, including but not limited to the Company, the Participating Employers, and any Participant or Beneficiary. The Retirement Committee shall administer such terms and provisions in a uniform and
nondiscriminatory manner and in full accordance with any and all laws applicable to the Plan. 
  
 8.5 Information 
  
 To
enable the Retirement Committee to perform its functions, the Company and Participating Employers shall supply full and timely information to the Retirement Committee on all matters relating to the Compensation of all Participants, their death or
other cause of termination, and such other pertinent facts as the Retirement Committee may reasonably require. 
  
 8.6 Compensation, Expenses and Indemnity 
  
 (a) The members of the Retirement Committee shall serve without compensation for their services hereunder. 
  

 19 

 (b) The Retirement Committee is authorized at the expense of the Company to employ such legal counsel as
it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the administration of the Plan shall be paid by the Company. 
  
 (c) To the extent permitted by applicable state law, the Company and Participating Employers shall indemnify and save
harmless the Retirement Committee and each member thereof, the Board and any delegate of the Retirement Committee who is an employee of the Company or a Participating Employer against any and all expenses, liabilities and claims, including legal
fees to defend against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and liabilities arising out of willful misconduct. This indemnity shall not
preclude such further indemnities as may be available under insurance purchased by the Company or a Participating Employer or provided by the Company or a Participating Employer under any bylaw, agreement or otherwise, as such indemnities are
permitted under state law. 
  
 8.7 Quarterly Statements

  
 Under procedures established by the Retirement Committee, a
Participant shall receive a statement with respect to such Participant’s Account on a quarterly basis. 
  
 ARTICLE IX 
  
 CLAIMS PROCEDURE 
  
 9.1 Submission of
Claim 
  
 Benefits shall be paid in accordance with the
provisions of this Plan. The Participant, or any person claiming through the Participant, (“Claiming Party”) shall make a written request for benefits under this Plan, mailed or delivered to the Retirement Committee. Such claim shall be
reviewed by the Retirement Committee or its delegate. 
  
 9.2
Denial of Claim 
  
 If a claim for payment of benefits is
denied in full or in part, the Retirement Committee or its delegate shall provide a written notice to the Claiming Party within ninety (90) days setting forth: (a) the specific reasons for denial; (b) any additional material or information necessary
to perfect the claim; (c) an explanation of why such material or information is necessary; and (d) an explanation of the steps to be taken for a review of the denial. A claim shall be deemed denied if the Retirement Committee or its delegate does
not take any action within the aforesaid ninety (90) day period). 
  
 9.3 Review of Denied Claim 
  
 If the Claiming
Party desires review of a denied claim, the Claiming Party shall notify the Retirement Committee or its delegate in writing within sixty (60) days after receipt of the written notice of denial. As part of such written request, the Claiming Party may
request a review of the Plan document or other pertinent documents, may submit any written issues and comments, and may request an extension of time for such written submission of issues and comments. 
  

 20 

 9.4 Decision upon Review of Denied Claim 
  
 The decision on the review of the denied claim shall be rendered by the
Retirement Committee within sixty (60) days after receipt of the request for review. The decision shall be in writing and shall state the specific reasons for the decision, including reference to specific provisions of the Plan on which the decision
is based. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1 Unsecured General Creditor 
  
 Participants and their Beneficiaries, heirs, successors, and assigns shall
have no legal or equitable rights, claims, or interests in any specific property or assets of the Company or any Participating Employer. No assets of the Company or a Participating Employer shall be held in any way as collateral security for the
fulfilling of the obligations of the Company under this Plan. Any and all of the Company’s and Participating Employers’ assets shall be, and remain, the general unpledged, unrestricted assets of the Company or Participating Employers, as
applicable. The Company’s obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in the future, and the rights of the Participants and Beneficiaries shall be no greater than those of
unsecured general creditors. 
  
 10.2 Restriction Against
Assignment 
  
 The Company shall pay all amounts payable
hereunder only to the person or persons designated by the Plan and not to any other person or corporation. No part of a Participant’s Account shall be liable for the debts, contracts, or engagements of any Participant, his or her Beneficiary,
or successors in interest, nor shall a Participant’s Account be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, commute,
pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever. If any Participant, Beneficiary or successor in interest is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, assign, pledge, encumber
or charge any distribution or payment from the Plan, voluntarily or involuntarily, the Retirement Committee, in its discretion, may cancel such distribution or payment (or any part thereof) to or for the benefit of such Participant, Beneficiary or
successor in interest in such manner as the Retirement Committee shall direct. 
  
 10.3 Withholding 
  
 There
shall be deducted from each payment made under the Plan all taxes, which are required to be withheld by the Company in respect to such payment. The Company shall have the right to reduce any payment by the amount of cash sufficient to provide the
amount of said taxes. 
  

 21 

 10.4 Amendment, Modification, Suspension or Termination 
  
 The Retirement Committee may amend, modify, suspend or terminate the Plan in
whole or in part, except that no amendment, modification, suspension or termination shall have any retroactive effect to reduce any amounts allocated to a Participant’s Account, provided that a termination or suspension of the Plan or any Plan
amendment or modification that will significantly increase costs to the Company shall be approved by the Board. In the event that this Plan is terminated, the timing of the disposition of the amounts credited to a Participant’s Account shall
occur in accordance with Section 7.1, subject to earlier distribution at the discretion of the Retirement Committee. 
  
 10.5 Governing Law 
  
 This Plan shall be construed, governed and administered in accordance with the laws of the State of Oregon. 
  
 10.6 Receipt or Release 
  
 Any payment to a Participant or the Participant’s Beneficiary in
accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims against the Retirement Committee, the Company, and the Participating Employers. The Retirement Committee may require such Participant or
Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect. 
  
 10.7 Payments on Behalf of Persons Under Incapacity 
  
 In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Retirement Committee, is considered by reason of
physical or mental condition to be unable to give a valid receipt therefore, the Retirement Committee may direct that such payment be made to any person found by the Retirement Committee, in its sole judgment, to have assumed the care of such
person. Any payment made pursuant to such determination shall constitute a full release and discharge of the Retirement Committee, the Company, and the Participating Employers. 
  
 10.8 No Employment Rights 
  

Participation in this Plan shall not confer upon any person any right to be employed by the Company or a Participating Employer or any other right not
expressly provided hereunder. 
  
 10.9 Headings, etc. Not Part
of Agreement. 
  
 Headings and subheadings in this Plan are
inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof. 
  

 22 

 10.10 Tax Liabilities from Plan 
  
 If, due to a change in applicable law or regulations or enforcement activity by the Internal Revenue Service, all or any
portion of a Participant’s benefit under this Plan generates a state or federal income tax liability to the Participant prior to receipt, the provision or provisions of the Plan that would generate such taxation shall be considered null and
void to the extent, and only to the extent, necessary to avoid the tax liability. If, notwithstanding the actions taken to avoid the tax liability, a tax liability is generated before a Participant is eligible to receive a Plan benefit, each
affected Participant may petition the Retirement Committee for a distribution of funds sufficient to meet such liability (including additions to tax, penalties and interest). Upon the grant of such a petition, which grant shall not be unreasonably
withheld, the Company shall distribute to the Participant immediately available funds in an amount equal to that Participant’s federal, state and local tax liability associated with such taxation, which liability shall be measured by using that
Participant’s then current highest federal, state and local marginal tax rate, plus the rates or amounts for the applicable additions to tax, penalties and interest. At the discretion of the Company, this distribution may or may not include an
additional amount to “gross up” the tax liability distribution to include all applicable taxes on the tax liability distribution and the grossed up amount. If the petition is granted, the tax liability distribution (including gross-up)
shall be made as soon as practicable after the date when the Participant’s petition is granted. Such a distribution shall reduce the benefits to be paid under Article VII of the Plan. 
  
 IN WITNESS WHEREOF, the Company has caused this document to be executed by
its duly authorized officer on this      day of                     , 2004. 
  

			
	 NIKE, INC.

		
	 By:
	 	  

		
	 Title:
	 	  

  

 23

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