Document:

Employment contract between the Company and P.A.J. Nota.

 19.6 Exhibit 4 (d)
 19 Exhibits 19.5 - 19.6 
  
  

 
 Employment contract between the Company and P.J.A. Nota. 

The following contract is the employment contract of Mr P. Nota, containing the terms of employment and other arrangements that apply with effect from
March 31, 2011 as member of the Board of Management of Royal Philips Electronics (“Koninklijke Philips Electronics N.V.”, hereinafter also referred to as “the Company”). 

1. Commencement of employment 
 You will enter the employment of Royal Philips Electronics as a member of the Board of Management with effect from March 31, 2011 subject to appointment by the General Meeting of Shareholders of the
Company. 
 The Supervisory Board undertakes to submit to the General Meeting of Shareholders to be held on March 31, 2011 a proposal for
your appointment as a member of the Board of Management and Chief Executive Officer Philips Consumer Lifestyle as of March 31, 2011. 
 In
the event of such appointment the terms and conditions stated in this letter agreement and its annexes replace all terms and conditions laid down in your previous employment agreement and all oral and written understandings reached with you and any
company belonging to the Philips Group. 
 2. Duration of employment 

A.The contract of employment (hereinafter referred to as the “Contract”) with the Company connected with your membership of the Board of
Management shall be entered into for a period of four years commencing on March 31, 2011 and shall terminate, without any notice being required, at the end of the month in which the General Meeting of Shareholders will be held in 2015
(hereinafter referred to as “End Date”). 
 B. No later than six months before the End Date the parties will discuss a possible
extension of the Contract. The parties agree that the Company at least every four years will review whether your position, and subsequent Contract, will be continued. The Contract will ultimately be terminated at the first day of the month following
the month in which you have reached the age of 62.5. 
 C. Both parties shall have the right to terminate this agreement before the End Date or
before any later Contract expiration against the end of a calendar month. In this respect, you will adhere to a written notice period of three months and the Company will give no less than six months prior written notice. 

D. If the Contract is terminated at the request of the Company or by mutual agreement before the End Date, or before any other expiration date if the
Contract has been renewed, other than for a compelling reason (‘dringende reden’), within the meaning of Dutch labor law, we agree with you already now that in that case you shall be entitled to an once-only payment by way of compensation
in the amount of one time your annual salary as mentioned in paragraph 3. You shall not be entitled to such payment if the Contract is terminated immediately following a period in which the Company made industrial disability payments to you under
paragraph 14. 
 E. In case of termination of the Contract you will resign ultimately per the effective date of the termination of the Contract
as member of the Board of Management. 
 3. Salary 
 Your annual salary as of April 1, 2011 amounts to EUR 600,000 (gross), which amount includes mandatory holiday allowances, to be paid in twelve monthly instalments. 

Annual review and subsequent upwards adjustment, if any, of your annual salary, will be determined at the discretion of the Supervisory Board of the
Company on the proposal of the Remuneration Committee of the Supervisory Board (hereinafter also referred to as “the Remuneration Committee”). 

  

 19 Exhibits 19.6 - 19.6 

 
 You shall be informed in writing, on behalf of the Supervisory Board, of any
salary increases awarded to you in this way. Only salary increases determined and approved by the Supervisory Board will replace the salary amount mentioned above. 
 4. Application of 30%-rule 
 The so-called “30%-ruling” based on
art. 15a 1k of the Dutch Wage Tax Law remains applicable to you. The 30%-ruling allows the Company to pay to you approximately 30% of practically all remuneration in the form of a tax-free compensation for so- called “extra territorial
costs”. Consequently, your legal and taxable wage is reduced by the same percentage. So your total remuneration is for approximately 30% paid as tax-free cost compensation and for approximately 70% as taxable wage. 

The termination or amendment of the 30%-ruling will not result in any financial obligation on the part of the Company. For an explanation, we refer you
to the CD-rom. 
 5. Annual Incentive 
 In addition to the salary referred to under paragraph 3, you shall be eligible each year for an annual incentive. This incentive shall be determined annually by the Supervisory Board on the advice of the
Remuneration Committee. 
 The annual incentive to be awarded relates to the preceding financial year and is based on criteria to be determined
annually. You shall be notified in writing of these annual incentive targets. 
 The on-target (= 100% score) annual incentive amount to be
realized by you is currently set by the Supervisory Board at 60% of your annual salar as mentioned under paragraph 3. It can become 120% of your annual salary if the stretched targets are realized (=200% score). 

6. Long Term Incentive Plan 
 The Supervisory Board, within the framework approved by the Company’s General Meeting of Shareholders and on the advice of the Remuneration Committee, can decide by discretion to grant Royal Philips
Electronics restricted share rights, stock options and/or other equity related incentives to members of the Board of Management on a year-to-year basis. The conditions of such incentives, if any, are also approved by the General Meeting of
Shareholders and may be changed on a yearly basis. 
 As a member of the Board of Management you are in principle eligible to participate in
such plan. In April 2011 you will be eligible for a grant of restricted share rights and stock options according to the level applicable to a member of the Board of Management. 
 For the period you will be a member of the Board of Management you will not be eligible to participate in any other Philips share purchase or equity related scheme than approved by the Supervisory Board
for members of the Board of Management. 
 The Long Term Incentive Plan is designed to stimulate long-term investment in Philips shares. To
further align the interests of members of the Board of Management and shareholders, restricted share rights shall be retained for a period of at least five years or until at least the end of employment, if this period is shorter. The same applies
for restricted share rights granted before the starting date of this Contract. In line with the Philips Share Ownership Guidelines on the attached CD-rom, you are required to hold at least 24,000 shares.  

7. Claw-back 
 If any of
the Company’s financial statements are (required to be) restated, resulting from errors, omission, or fraud, the Supervisory Board may (in its sole discretion, but acting in good faith), direct that the Company recover all or a portion of any
Annual Incentive made to you with respect to any fiscal year of the Company the financial results of which are negatively affected by such statement. This right also applies in other cases of any Annual Incentive having been made to you on the basis
of incorrect financial or other data. 
 If equity-related incentive has been awarded to you on the basis of incorrect financial or other data,
the Supervisory Board may, in its sole discretion but acting in good faith, resolve to recoup some or all of such incentive compensation in all appropriate cases (taking into account all relevant factors, including whether the assertion of a
recoupment claim may in its opinion prejudice the interests of the Company in any related proceeding or investigation), granted to you, if and to the extent that: 

 

  

 19 Exhibits 19.6 - 19.6 

 
  

	•	 	 the size of the equity-related incentive was calculated based upon the achievement of certain financial or other data that were subsequently reduced or
changed due to a correction thereof resulting from errors, omissions, fraud or otherwise, and 

  

	•	 	 the size of such incentive that would have granted to you, had the financial or other data been properly reported would have been lower than the size
actually granted. 

 8. Pension Rights 
 You are entitled to a pension in conformity with the conditions contained in the Philips Executives Pension Plan of “Stichting Philips Pensioenfonds”. The pension plan is a combination of
average pay (annual accrual percentage: currently 1.25%) and defined contribution (employer contribution: currently 20%). The target retirement age under this plan is 62.5. No employee contribution is required. 

The pension base is your annual gross salary, as mentioned in paragraph 3 hereof, minus the offset (so-called “franchise”). 

For further information about the actual scheme, you are referred to the attached CD-rom. When this scheme will be changed in future, the new version is
also applicable to you. 
 9. Company Car 
 You are entitled to a leased company car according to the conditions valid for Philips Executives. In principle, a personal contribution is not required if the monthly lease price does not exceed the
standard lease price at the moment of ordering of the lease car. You are not entitled to conclude a new lease agreement before the expiration date of the present lease agreement. 
 10. Allowances 
  
  

	•	 	 For business entertainment expenses: 

  

	    	With respect to your position within the Company you may be eligible for a fixed allowance for business entertainment expenses. Currently the tax-free allowance in your
case is EUR 23,920 per annum. This sum is meant to enable you amongst others to cover the expenses you incur in entertaining business guests on behalf of the Company. 

 

	•	 	 For the use of a home for representative purposes: 

  

	    	Members of the Board of Management may be eligible for a fixed allowance of Euro 6,800 tax-free to cover use of their own home for representative purposes.

 The above-mentioned allowances will be paid at the end of each quarter. 

Parties agree that changes in fiscal legislation could make it necessary or desirable for the Company to change the above arrangements. 

11. Other arrangements 
  

	•	 	 Purchase of an apartment/house in the Amsterdam area  

 

	    	The Company has put at your disposal an apartment in the Amsterdam area free of rent for the first 6 months of your employment (August, 2010 –January, 2011) as a
member of the Group Management Committee. The Company will compensate you the rent costs (with a maximum of EUR 2,500 per month net) for another 6 months until August 1, 2011. In case you purchase an apartment or house in the Amsterdam
area before August 1, 2012, the Company will pay you a once- only amount of ten percent of the purchase price with a maximum of EUR 200,000 (net) minus the (maximum net) compensation of EUR 2,500 paid for every month after the first 6 months.
The Company shall not reimburse any loss made on the (future) sale of your apartment or house in the Netherlands. 

  

	    	The costs of gas, water, electricity, heating, telephone and local property taxes of your apartment/house in the Netherlands are for your own account.

  

 19 Exhibits 19.6 - 19.6 

 
  
  

	•	 	 Once-only relocation allowance  

  

	    	You shall receive a once-only relocation allowance of EUR 50,000 net, towards the cost of installation. Due to tax regulations this allowance can only be paid out when
you actually have moved to a non-furnished apartment or house in the Amsterdam region. The once-only relocation allowance will be based on the fiscal amount. 

 12. Senior Executive Ambassador Program 
 You are invited to participate in
the Senior Executive Ambassador Program to use Philips products that will be made available to you at your home. 
 13.
Insurances 
  

	•	 	 Accident insurance 

  

	    	You will be covered by a 24-hours accident insurance policy. The maximum sum insured is three times your gross annual salary as mentioned under paragraph 3. We refer
you to the chapter benefits on the attached CD-rom. 

  

	•	 	 Directors and Officers Liability Insurance 

  

	    	You will be covered by a Directors and Officers liability insurance with regard to “wrongful acts”. As of the date hereof, under the terms of the policy,
“wrongful acts” include any actual or alleged breach of trust, breach of duty, neglect, error, misstatement, misleading statement, omission or other act wrongfully committed by the Assured or any matter claimed against them solely by
reason of their being an “Officer”. 

 14. Industrial disability 

The present Company policy for Executives and members of the Board of Management with regard to industrial disability is that for a maximum period of
three years from the start of disablement, but at the very latest up to the end of the Contract, the balance between your annual salary, as stated in paragraph 3, at the start of the total disability and the aggregate amount of any statutory
allowance distributed because of your total disablement together with possible allowances distributed for the same reason by “Stichting Philips Pensioenfonds” as referred to in paragraph 8 hereof , will - subject to your compliance with
the Company’s directives - be paid by the Company. 
 The Company shall not be bound by the aforesaid obligation if you have a claim
against third parties in respect of your disablement. Upon surrender to the Company of such claim - in so far as it relates to loss of salary - an amount equal to the aforesaid balance shall - but for no longer than the period stated in the
foregoing paragraph - be paid by the Company in advance. 
 However, should this policy change, the new policy will apply in full to you. No
concessions will be made if the new policy is less favorable than the present policy. 
 15. Holidays 

The holiday entitlement for members of the Board of Management is 25 working days per calendar year. 

16. General Terms of Employment of Philips 
 The chapter contractual rules of conduct on the attached CD-rom contains the General Terms of Employment of the Philips Group, which also apply to you. 

As evidence of your approval of the contents of the General Terms of Employment, a hard copy of these terms will be signed by you. 

17. Philips rules about corporate governance and corporate citizenship 
 Underpinning Philips’ commitment to responsible corporate citizenship, integrity and transparency, the following terms and principles have been set. 

 

	•	 	 General Business Principles and General Business Principles Directives 

 

	•	 	 Financial Code of Ethics 

  

	•	 	 Purchasing Code of Ethics 

  

	•	 	 Rules of Conduct with respect to Inside Information 

  

	•	 	 Rules governing Internal and External directorships. 

  

 19 Exhibits 19.6 - 19.6 

 
 They apply equally to corporate actions and to the behavior of members of the
Board of Management in conducting Philips’ business. By signing the contract, you declare to act according to the rules mentioned above. The Company may alter the rules unilaterally. For more information on the terms and principles, we refer
you to the current Philips rules as mentioned above on the enclosed CD-rom. Any changes will be available on the corporate website. 
 The
Compliance Officer with respect to Inside Information will contact you, as you are designated as “Qualified Insider”. 

18. Personnel Registration 
 Your data will be recorded in one or more personnel registration systems. 
 19.
Applicable law 
 All terms of the employment and this Contract are governed by the laws of the Netherlands. 

Parties agree that all the above compensation elements are subject to the corporate governance framework applicable to members of the Board of Management
and can be changed, abolished or replaced by other elements at any time at the sole discretion of the Supervisory Board of the Company. 
 If
you agree with these proposals, you are requested to sign and initial both the enclosed copy of this contract and the General Terms of Employment and return them to the Secretary of the Remuneration Committee, Royal Philips Electronics, P.O. Box
77900, 1070 MX Amsterdam, the Netherlands. 
 Needless to say, you may contact the Secretary to the Remuneration Committee if you require
further information about these arrangements. 
 Looking forward to receiving your reply, I remain 

With kind regards, 
 J-M. Hessels 

Chairman of the Supervisory Board 
 Agreed and
signed: 
 P. Nota 
 Annexes:

 - CD-rom  
 - General Terms
of Employment of PhilipsEX-10.7.(xix)

 Exhibit 10.7 (xix) 

TERMS AND CONDITIONS 
 2012 EXECUTIVE STOCK OPTION 
 UNDER THE AMENDED AND RESTATED

 NORTHERN TRUST CORPORATION 2002 STOCK PLAN 

 

	1.	Governing Documents. Your stock option grant is subject to the provisions of the Amended and Restated Northern Trust Corporation 2002 Stock Plan (the
“Plan”), the stock option notice (the “Option Notice”) and this Terms and Conditions document (“Terms and Conditions”). The Option Notice and these Terms and Conditions constitute the “Stock Option Agreement”
as defined in the Plan. If there is any conflict between the information in the Stock Option Agreement and the Plan, the Plan will govern. These Terms and Conditions apply to non-qualified stock options and incentive stock options issued under the
Plan. Capitalized terms not defined in Stock Option Agreement shall have the meanings assigned to them in the Plan. 

  

	2.	Amendments. The Committee may amend the terms of the Stock Option Agreement at any time, except that any amendment that adversely affects your rights in
any material way requires your written consent. Notwithstanding anything in the Stock Option Agreement to the contrary, including without limitation the preceding sentence, in the event that the Committee determines that your stock option grant, or
the performance by the Corporation of any of its obligations under the Stock Option Agreement, would violate any applicable law, your stock options shall be forfeited to the Corporation and cancelled, and the Corporation shall have no obligation to
honor the exercise of your stock options by you or your Beneficiary. 

  

	3.	Exercise Limitations. Your stock option is exercisable from and after the vesting date(s) set forth on the Option Notice until the ten (10)-year
anniversary of the date the option was granted (the “Expiration Date”), except as provided below: 

  

	 	•	 	 Change in Control. Your stock option (whether vested or unvested) becomes vested and exercisable from and after the date of a Change in
Control of the Corporation. Please see “Other Termination of Employment” below for additional provisions relating to a Change in Control. 

  

	 	•	 	 Death. If you die while employed, your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your
death and may be exercised by your beneficiary at any time until the earlier of (a) five (5) years following your death and (b) the Expiration Date. If you do not name a beneficiary (or your beneficiary dies before you), your stock
option will pass to the following persons in the order indicated: 

 – Your spouse; if none, then,

 – Your children (in equal amounts); if none, then, 
 Management Group 

  
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 – Your parents (in equal amounts); if none, then, 

– Your brothers and sisters (in equal amounts); if none, then, 

– Your estate. 
  

	 	•	 	 Retirement. If you retire, your stock option continues to vest in accordance with its terms, and, once vested, it may be exercised at any
time until the earlier of (a) five (5) years following the effective date of your retirement and (b) the Expiration Date. The terms “retire” and “retirement” mean retirement occurring by reason of your having
qualified for a Normal, Early, or Postponed Retirement Pension under The Northern Trust Company Pension Plan. You should be aware that an unexercised incentive stock option automatically converts into a non-qualified stock option three
(3) months after termination of employment due to retirement pursuant to the applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”) relating to incentive stock options. 

 

	 	•	 	 Special Circumstances. If (a) on the date of grant, you are a Management Group member, and (b) on the date of your termination
of employment, you are age 55 or older and have a minimum of 10 years of employment with the Corporation and its Subsidiaries, then your stock option continues to vest in accordance with its terms, and, once vested, it may be exercised at any time
until the earlier of (i) five (5) years following the date of your termination of employment and (ii) the Expiration Date. You should be aware that an unexercised incentive stock option automatically converts into a non-qualified
stock option three (3) months after termination of employment under the described circumstances pursuant to the applicable provisions of the Code relating to incentive stock options. 

 

	 	•	 	 Disability. If, while employed, you incur a “disability” that continues for a period of 12 months in accordance with The
Northern Trust Company’s Managed Disability Program you are deemed “Disabled” on the last day of such 12-month period, at which date you are terminated from the Plan. Your stock option (whether vested or unvested) becomes vested and
exercisable upon the date you are deemed Disabled and may be exercised at any time until the earlier of (a) five (5) years following the date you are deemed Disabled and (b) the Expiration Date. You should be aware that an unexercised
incentive stock option automatically converts into a non-qualified stock option three (3) months after termination from the Plan, pursuant to the applicable provisions of the Code relating to incentive stock options.

  

	 	•	 	 Severance. If your employment is terminated under circumstances that entitle you to severance benefits under the Northern Trust
Corporation Severance Plan (the “Severance Plan”), and you have timely executed and not revoked a settlement agreement, waiver and release under the Severance Plan (a “Release”), your stock option (whether vested or unvested)
becomes vested and exercisable as of the date of your termination of employment and may be exercised at any time until the earlier of (a) one-hundred and eighty (180) days following your

  
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termination of employment under the Severance Plan and (b) the Expiration Date. If you are eligible for a Normal, Early, or Postponed Retirement Pension upon termination of employment under
the Severance Plan, your stock option (whether vested or unvested) becomes vested and exercisable as of the date of your termination of employment and may be exercised at any time until the earlier of (a) five (5) years following the
effective date of your retirement and (b) the Expiration Date. You should be aware that an unexercised incentive stock option automatically converts into a non-qualified stock option three (3) months after termination of employment in
these circumstances pursuant to the applicable provisions of the Code relating to incentive stock options. 

  

	 	•	 	 Government Employment. If (i) your employment with the Corporation and its Subsidiaries terminates prior to a vesting date, and
(A) you are eligible to “retire,” as defined above, at the time of your termination of employment, or (B) you are a Management Group member on the date of the grant of the stock options and on your date of termination of
employment you are 55 years or older with a minimum of 10 years of employment with the Corporation and its Subsidiaries; and (ii) if (A) such termination of employment constitutes a Government Service Termination, or (B) after your
termination of employment and prior to a vesting date, you accept Government Employment; then (iii) on your Government Service Termination date or the date of commencement of your Government Employment, as applicable, you will be 100% vested in
your then outstanding stock options, provided that you meet the following conditions: (A) you provide the Committee with satisfactory evidence that, as a result of your Government Employment, the divestiture of any continued equity interest in
the Corporation is reasonably necessary (I) for you as a Federal officer or employee in the executive branch to comply with an ethics agreement with the Federal government, or (II) for you to avoid the violation of U.S. federal, state or local
or non-U.S. ethics law or conflicts of interest law applicable to you in your Government Employment, and (B) you execute and return no later than your Government Service Termination date or the date of commencement of your Government
Employment, as applicable, an agreement satisfactory to the Committee acknowledging the Corporation’s right to recover (and your obligation to repay) under Paragraph 8 of the Terms and Conditions, any gain realized in connection with the stock
options in the event that you are determined to have engaged in conduct or activity described in Paragraph 8. If you become vested in your stock options under this paragraph, all of your outstanding stock options will be exercisable for (x) the
90 day period after the earlier of your Government Service Termination or the commencement of your Government Employment, as applicable, or (y) the Expiration Date, if earlier. Thereafter, your unexercised stock options, if any, shall be
forfeited. 

 For purposes of these Terms and Conditions, “Government Service Termination” means
your termination of employment with the Corporation and its Subsidiaries due to or in connection with your immediate commencement of Government Employment. 

  
 3 

 For purposes of these Terms and Conditions, “Government Employment” refers to
employment at any U.S. Federal, state or local government, any non-U.S. government, any supranational or international organization, any self-regulatory organization, or any agency or instrumentality of any such government or organization, or any
other employer determined to be a Government Employer by the Committee. 
  

	 	•	 	 Other Termination of Employment. Except as set forth below, if (a) your employment by the Corporation and its Subsidiaries
terminates for any reason other than death, retirement or a severance under the Severance Plan for which you have executed and not revoked a Release, (b) you are not terminated from the Plan due to disability pursuant to the
“Disability” provisions described above, and (c) you were not both a Management Group member on the date of grant and age 55 with 10 years of employment with the Corporation and its Subsidiaries on your date of termination, your stock
option, if and to the extent vested as of the date of your termination of employment, may be exercised at any time until the earlier of (i) three (3) months following the date of your termination of employment and (ii) the Expiration
Date. Your stock option, if and to the extent unvested as of the date of your termination of employment, expires as of the date of your termination of employment. A termination of employment shall not be deemed to occur by reason of your transfer
between the Corporation and a Subsidiary of the Corporation or between two Subsidiaries of the Corporation. If you meet the criteria of each of clauses (a), (b), and (c), above, the post-termination exercise provision of this sub-paragraph shall
apply to you if you become a consultant to the Corporation or a Subsidiary of the Corporation upon termination of your employment from the Corporation or a Subsidiary of the Corporation. Notwithstanding the foregoing, if, within the two-year period
following a Change in Control, you meet the criteria of each of clauses (a), (b), and (c) above, then (except as may otherwise be specified in an Employment Security Agreement between you and the Corporation), your stock option, to the extent
vested, may be exercised at any time until the earlier of (I) six (6) months following the date of your termination of employment, and (II) the Expiration Date; provided, however, you should be aware that an unexercised incentive stock
option automatically converts into a non-qualified stock option three (3) months after termination of employment in connection with a Change of Control pursuant to the applicable provisions of the Code relating to incentive stock options.

  

	4.	Re-Employment. If, after your termination of employment, you are re-employed by the Corporation or one of its Subsidiaries, upon your return you will be
considered a new hire for purposes of the Plan. Options that previously expired upon your termination of employment remain expired and are not reinstated. 

 

	5.	Exercise of Options. 

  

	 	•	 	 How to Exercise. You may exercise your stock option, in any manner described in Section 6(e) of the Plan, through the H. R. Service
Center at (800) 807-0302 or online through My Place. Inquiry and modeling capabilities are also available online. 

  
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	 	•	 	 Black-out Period. Due to federal securities law concerns, the Corporation has a “black-out” policy which restricts any exercise
of your stock option around quarterly corporate earnings announcements. Please refer to the “Statement of Confidential Information and Securities Trading” for further information about the Corporation’s black-out policy. You may
access this document online through My Passport. From the homepage click on Corporate-wide Services, and then Corporate Policies. 

  

	6.	Nontransferability. Your stock option is not transferable other than as provided in these Terms and Conditions. Your stock option (whether a non-qualified
stock option or an incentive stock option) is exercisable, during your lifetime, only by you or your personal representative. 

  

	7.	Withholding/Delivery of Shares. Delivery of shares of Common Stock upon exercise of your stock option is subject to the withholding of all applicable
federal, state, and local taxes. At your election, subject to such rules and limitations as may be established by the Committee, such withholding obligations shall be satisfied: (i) by cash payment by you; (ii) through the surrender of
shares of Common Stock which you already own that are acceptable to the Committee; or (iii) through surrender of shares of Common Stock to which you are otherwise entitled under the Plan, provided, however, that such shares under this clause
(iii) may be used to satisfy not more than the Corporation’s minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal and state tax purposes, including payroll taxes, that are applicable to such
taxable income). Payment of federal income taxes may be accomplished through a combination of withholding of shares and delivery of previously acquired shares. The Corporation may delay the issuance or delivery of shares of Common Stock if the
Corporation reasonably anticipates that such issuance or delivery will violate federal securities laws or other applicable law, provided that the issuance or delivery is made at the earliest date at which the Corporation reasonably anticipates that
such issuance or delivery will not cause such violation. As an option holder, you have no interest in the shares covered by the option until the shares are actually issued. 

 

	8.	Forfeitures and Recoupments. 

  

	 	(a)	Engaging in Restricted Activity Without Written Consent of the Corporation. Notwithstanding anything to the contrary in these Terms and Conditions, if you,
without the written consent of the Corporation: 

  

	 	(i)	at any time after the date of these Terms and Conditions, have divulged, directly or indirectly, or used, for your own or another’s benefit, any Confidential
Information; 

  

	 	(ii)	 at any time after the date of these Terms and Conditions and through a period of twelve (12) months after you cease to be employed by the

  
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Corporation and its Subsidiaries for any reason, have Solicited, or assisted in the Solicitation of, any Client or Prospective Client (provided, however, that this clause (ii) shall not
apply to your Solicitation of any Client or Prospective Client with whom you had a business relationship prior to the start of your employment with the Corporation and its Subsidiaries, provided no Confidential Information, directly or indirectly,
is used in such Solicitation); or 

  

	 	(iii)	at any time after the date of these Terms and Conditions and through a period of twelve (12) months after you cease to be employed by the Corporation and its
Subsidiaries for any reason, have solicited, encouraged, advised, induced or caused any employee of the Corporation or any of its Subsidiaries to terminate his or her employment with the Corporation or any of its Subsidiaries, or provided any
assistance, encouragement, information, or suggestion to any person or entity regarding the solicitation or hiring of any employee of the Corporation or any of its Subsidiaries; 

your then outstanding stock options (whether vested or unvested) shall be forfeited to the Corporation by notice from the Committee in
writing to you within a reasonable period of time after the Committee acquires knowledge of your violation of this Paragraph 8(a). In the event that your stock options are forfeited pursuant to the preceding sentence or the provisions of Paragraph
8(b), below, the Corporation shall have no obligation to honor the exercise of such stock options by you or your beneficiary. 

In addition, in the event of any action by you to which clauses (i), (ii) or (iii), above, apply, the Corporation shall, to the
extent the Committee determines it practicable and in the best interests of the Corporation, and as permitted by applicable law, rescind any exercise by you or payment or delivery to you with respect to any stock options occurring within twelve
(12) months prior to, or at any time following, the date of your termination of employment for any reason (including but not limited to termination of employment due to Retirement or Disability), and recoup any “gain realized” in
connection with such stock options as described in Paragraph 8(c) below. 
  

	 	(b)	Misconduct and Restatement of Financials. Consistent with the Corporation’s risk-mitigation strategies for its compensation programs, and notwithstanding
any other provision in these Terms and Conditions, in the event that: 

  

	 	(i)	 the Corporation is required to restate its financial statements filed with the U.S. Securities and Exchange Commission on Form 10-Q or Form 10-K or
re-file quarterly financial data with the U.S. Federal Reserve due to any reason other than changes in accounting policy or applicable law (a “Restatement”), and the Committee determines that such Restatement resulted, in whole or in
material part, from your (A) intentionally engaging in conduct that resulted in a material weakness in internal control over 

  
 6 

	 	
financial reporting and was inconsistent with the standards of conduct of the business judgment rule, as defined below, or (B) personally and knowingly engaging in practices that materially
contributed to circumstances that resulted in a material weakness in internal control over financial reporting and that were inconsistent with the standards of conduct of the business judgment rule; or 

 

	 	(ii)	the Committee determines that you have engaged in conduct that is grounds for termination for Cause and is inconsistent with the standards of conduct of the business
judgment rule (“Misconduct”); 

 then the Committee shall review all of your then outstanding stock
options (whether vested or unvested), and all stock options with respect to which there has been an exercise by you or payment or delivery to you within the 36-month period immediately preceding the date of the Restatement, or during the
period after the date of the Misconduct, as applicable. 
 In the event of a Restatement described in clause (i), the Committee
shall declare your then outstanding, vested stock options that would not have become vested based on accurate financial data or restated results to be forfeited to the Corporation by notice in writing to you within a reasonable period of time after
the date of the Restatement, and the Corporation shall, to the extent the Committee determines it practicable and in the best interests of the Corporation, and as permitted by applicable law, rescind any exercise by you or payment or delivery to you
with respect to any stock options occurring within 36 months prior to the date of the Restatement that would not have become vested or been paid based on accurate financial data or restated results, and recoup any gain realized in connection with
such stock options as described in Paragraph 8(c), below. In the event of Misconduct described in clause (ii) (other than any actions included in Paragraph 8(a) or clause (i) of this Paragraph 8(b)), the Committee shall declare your then
outstanding stock options (whether vested or unvested) to be forfeited to the Corporation by notice in writing to you within a reasonable period of time after the date of the discovery of the Misconduct, and the Corporation shall, to the extent the
Committee determines it practicable and in the best interests of the Corporation and as permitted by applicable law, rescind any exercise by you or payment or delivery to you with respect to any stock options occurring after the date such Misconduct
occurred and recoup any gain realized in connection with such stock options as described in Paragraph 8(c), below 
 Your
actions satisfy the “business judgment rule” if such actions were taken in good faith, in a manner that an ordinarily prudent person would act under similar circumstances, and in the interests of the Corporation. In interpreting and
applying the preceding sentence, the Committee shall use as a guide the principles of the business judgment rule as construed by the Delaware courts in applying the Delaware Corporation Act. 

  
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	 	(c)	Rescission and Recoupment. Upon the rescission, pursuant to the provisions of Paragraph 8(a) or 8(b), of any exercise by you or payment or delivery to you with
respect to any stock options, the Corporation shall be entitled to recoup any “gains realized” in connection with such stock options, in such manner and on such terms and conditions as the Committee shall require. “Gains
realized” shall include (i) the amount of any cash distributed to you with respect to, (ii) any cash or shares of the Corporation’s Common Stock (or proceeds attributable to the sale thereof ) paid or delivered in settlement of,
and (iii) any other amounts determined by the Committee to have been realized in connection with, such rescinded stock options. If you fail to repay any such amounts to the Corporation within 60 days after receipt of written demand, the
Corporation shall be entitled, subject to applicable law and the requirements of Internal Revenue Code Section 409A, to deduct from any amounts the Corporation owes you from time to time the amount of all gains realized, or to sue for repayment
of such amounts, or to pursue both remedies. 

  

	9.	No Contract of Employment. The option grant shall not be deemed to obligate the Corporation or any of its Subsidiaries to continue your employment for any
particular period, nor is employment guaranteed for the length of the vesting schedule set forth in the Option Notice. 

  

	10.	Taxes. Please refer to the “Summary Description of the Amended and Restated Northern Trust Corporation 2002 Stock Plan” for a description of the
U.S. federal income tax consequences affecting non-qualified stock options and incentive stock options. 

  

	11.	Interpretation and Applicable Law. Any interpretation by the Committee of the terms and conditions of the Plan, the Stock Option Agreement or any
guidelines shall be final. All questions pertaining to the validity, construction and administration of the Plan or the Stock Option Agreement, and all claims or causes of action arising under, relating to, or in connection with, the Plan or the
Stock Option Agreement shall be determined in conformity with the laws of the State of Delaware, without regard to the conflict of law provisions of any state. 

 

	12.	Definitions. As provided above, Capitalized terms not defined in the Stock Option Agreement shall have the meanings assigned to them in the Plan. For
purposes of the Stock Option Agreement: 

  

	 	(a)	“Cause” means (i) your conviction of or no contest plea with respect to bribery, extortion, embezzlement, fraud, grand larceny, or any felony involving
abuse or misuse of your position to seek or obtain an illegal or personal gain at the expense of the Corporation, or similar crime, or conspiracy to commit any such crimes or attempt to commit any such crimes; or (ii) your misconduct that
causes material harm to the Corporation. 

  

	 	(b)	“Client” means any person or entity with which the Corporation, or any of its Subsidiaries, did business and with which you had contact, or about which you
had access to Confidential Information, during the last twelve (12) months of your employment. 

  
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	 	(c)	“Competitive Service or Product” means any service or product: (i) that is substantially similar to or competitive with any service or product that you
created or provided, or of which you assisted in the creation or provision, during your employment by the Corporation or any of its Subsidiaries; or (ii) about which you had access to Confidential Information during your employment by the
Corporation or any of its Subsidiaries. 

  

	 	(d)	“Confidential Information” means any trade secrets or other significant proprietary information, including, but not limited to, any client information (for
example, client lists, information about client accounts, borrowings, and current or proposed transactions), any internal analysis of clients, marketing strategies, financial reports or projections, business or other plans, data, procedures,
methods, computer data or system program or design, devices, lists, tools, or compilation, which relate to the present or planned business of the Corporation or any of its Subsidiaries and which has not been made generally known to the public by
authorized representatives of the Corporation. 

  

	 	(e)	“Prospective Client” means any person or entity to which the Corporation, or any of its Subsidiaries, provided, or from which the Corporation, or any of its
Subsidiaries received, a proposal, bid, or written inquiry (general advertising or promotional materials and mass mailings excepted) and with which you had contact, or about which you had access to Confidential Information, during the last twelve
(12) months of your employment. 

  

	 	(f)	“Solicit” and “Solicitation” (with respect to Clients or Prospective Clients) mean directly or indirectly, and without the Corporation’s
written authorization, to invite, encourage, request, or induce (or to assist another to invite, encourage, request or induce) any Client or Prospective Client of the Corporation, or any of its Subsidiaries, to: (i) surrender, redeem or
terminate a product, service or relationship with the Corporation, or any of its Subsidiaries; (ii) obtain any Competitive Service or Product from you or any third party; or (iii) transfer a product, service or relationship from the
Corporation, or any of its Subsidiaries, to you or any third party. 

  
 9

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