Document:

LTD 1.28.2012 10K EX 10.24

Exhibit 10.24
EMPLOYMENT AGREEMENT

THIS   AGREEMENT  is  entered  into   effective  December  31,   2007,  by  and between Beauty Avenues, LLC and  Limited Brands, Inc. (hereinafter the  "Company"), and Charles  McGuigan  (the "Executive") (hereinafter collectively referred to as "the  parties").

WHEREAS, the  Executive is  employed as the  President for  Beauty Avenues, LLC and  has  experienced in  various phases  of  the  Company's business and  does  possess an   intimate  knowledge of  the   business  and   affairs  of  the   Company  and   its   policies, procedures, methods, and personnel; and

WHEREAS, the  Company has  determined that   it is  essential and  in  its  best interests  to   retain  the   services  of   key   management  personnel  and   to   ensure their continued dedication and efforts; and

NOW,   THEREFORE,   in    consideration   of    the    foregoing   and    the respective  agreements  of   the   parties  contained  herein,  the   parties  hereby  agree   as follows:

1.       Term.    The  initial term of  employment under  this  Agreement shall  be for  the   period  commencing on  December  31,   2007   (the  "Commencement Date")  and ending on the  fifth anniversary of the  Commencement Date  (the "Initial Term"); provided, however, that  thereafter this  Agreement shall  be automatically renewed from  year  to  year, unless  (a)  either the  Company or the  Executive shall  have  given  written notice to the  other at  least  thirty (30) days  prior   thereto that   the  term of  this   Agreement shall  not  be  so renewed or (b)  the  Agreement is terminated pursuant to the  provisions of Section 9 of this Agreement.

2.     Employment.

(a)        Position.  The  Executive shall  be  employed as the  President of Beauty  Avenues,  LLC  or  such   other  position  as  may   be  determined  by  the   Board   of Directors, if such  position does  not  decrease the  Executive's overall total compensation and  maintains the  Executive's status on the  Executive's Leadership Team.   The  Executive shall   perform  the   duties,  undertake  the   responsibilities,  and   exercise  the   authority customarily  performed,  undertaken,  and   exercised  by   persons  employed  in  a  similar executive capacity.

(b)     Obligations.  The Executive agrees  to devote the  Executive's full business time and  attention to  the  business and  affairs of the  Company.  The  foregoing, however, shall  not  preclude the  Executive from  serving on  corporate, civic, or  charitable boards  or committees or managing personal investments, so long  as such  activities do not interfere with  the  performance of the  Executive's responsibilities hereunder.

3.         Base  Salary.   The  Company agrees   to  pay  the  Executive an  annual Base  Salary   at  the  rate  of  Eight  Hundred Twenty-Five Thousand Dollars ($825,000.00), less  applicable withholding.  This  Base Salary  will  be subject to  annual review and  may  be increased from  time to time  in the  discretion of the  Company, based  on factors such as the Executive's responsibilities, compensation of similar executives within the  Company and in other   companies, the  Executive's performance, and  other pertinent factors.    Such  Base Salary  shall  be payable in  accordance with  the  Company's customary practices applicable to its  executives.

4.          Equity Compensation.  The  Executive shall  be eligible for  such  future equity-based awards as may  be commensurate with  his position and performance.

5.         Employee  Benefits.   The Executive  shall be entitled to participate in all employee  benefit  plans, practices,  and  programs maintained by the  Company  and  made available  to  similarly situated executives generally  and  as may  be in  effect  from  time  to time.   The Executive's  participation in such plans, practices  and programs shall be on the same  basis  and  terms  as are  applicable  to  similarly situated executives  of the  Company generally.

6.     Bonus.

(a)       The Executive  shall be entitled to participate in the Company's applicable  incentive  compensation plan at a target  level of seventy  percent (70%) of the Executive's  Base Salary on such terms  and conditions as determined from time  to time  by the Board.

(b)       The  Executive  shall  be eligible  to  a success bonus  for  Project Insight under  the  same  terms  and  conditions  that  are  set  forth  in  the  Executive's  Offer Letter  dated March 5, 2004.

Other Benefits.

(a)     Benefits.   The Executive  shall be entitled to all other  benefits  as similarly situated  executives.

(b)     Expenses.  Subject  to applicable  Company  policies, the Executive shall be entitled to  receive  prompt reimbursement of all expenses  reasonably  incurred  in connection   with  the  performance of  the  Executive's  duties  hereunder   or  for  promoting, pursuing, or otherwise  furthering the business or interests of the Company.

(c)       Office  and  Facilities.     The  Executive   shall   be  provided   with appropriate  offices   and   with    such   secretarial    and   other    support    facilities    as   are commensurate  with   the   Executive's   status   with   the   Company   and  adequate   for  the performance of the Executive's  duties  hereunder.

(d)     Relocation.     The Company  agrees that  the Executive  has until
May 5, 2009 to start  his relocation under the Company's  relocation  policy.

8.  Paid Time Off (PTO) Program.   The Executive  shall be entitled to paid time off in accordance  with  the policies  as periodically established  by the Company  for similarly situated  executives  of the Company.

9.   Termination.   The  Executive's  employment hereunder   is  subject  to  the following  terms  and conditions:

(a)     Disability. The Company  shall be entitled to terminate the Executive's  employment after  having  established  the  Executive's  Disability.  For purposes of  this  Agreement,  "Disability" means  a  physical  or  mental  infirmity which  impairs  the Executive's  ability  to substantially perform  the Executive's  duties  under  this Agreement  for a period  of  at  least  six  months  in  any  twelve-month calendar  period  as determined in accordance with the Company's  Long-Term  Disability  Plan.

(b)     Cause.  The Company shall be entitled to terminate the Executive's  employment  for  "Cause"  without   prior  written notice.  For purposes  of  this Agreement,  "Cause"  shall   mean  that   the   Executive  (1)   was  grossly   negligent   in  the performance of  the  Executive's  duties  with  the  Company  (other  than  a failure  resulting from  the Executive's  incapacity  due to physical or mental  illness); or (2)  has plead "guilty" or  "no   contest" to  or  has  been  convicted of  an  act  which   is  defined as  a  felony   under federal or state  law; or  (3) engaged in  misconduct in  bad  faith  which  could  reasonably be expected to  materially harm the  Company's business or its  reputation. The Executive shall be  given written notice  by  the  Company of  a termination for  Cause,  which  shall  state  in detail the  particular act  or acts  or  failures to  act  that  constitute the  grounds on  which  the termination for Cause is based.

(c)     Termination by the  Executive.  The Executive may  terminate employment  hereunder without "Good  Reason" by  delivering to  the  Company, not   less than  thirty (30) days  prior to  the  Termination Date,  a written Notice  of Termination.   The Executive may  terminate employment hereunder for  "Good  Reason"  by  delivering to  the Company not  less than  thirty (30) days  prior to  the  Termination Date,  a written Notice  of Termination setting forth  in reasonable detail the  facts  and  circumstances which  constitute Good  Reason. For  purposes of  this  Agreement, "Good  Reason" means   (i) the  failure to continue the  Executive in a capacity contemplated by Section 2, above; (ii) the  assignment to the   Executive  of  any   duties  materially  inconsistent with   the   Executive's position or duties, as set  forth  in  Section  2 hereof; (iii) a reduction in  or a material delay  in payment of the  Executive's total cash compensation and benefits from  those  required to be provided in  accordance with  the  provisions of this  Agreement; (iv) the  Company, the  Board  or 

any person controlling the  Company requires the  Executive to  be  based  outside of the  United States, other than  on  travel reasonably required to  carry   out  the  Executive's obligations under the   Agreement; or  (v) the   failure of  the   Company  to  obtain the   assumption in writing of its  obligation to  perform this  Agreement by  any  successor  to  all or substantially all  of  the  assets  of  the  Company within  15  days  after   a  merger, consolidation, sale,  or similar transaction provided, however, that  "Good  Reason" shall  not  include (A)  acts  not taken in  bad  faith  which  are  cured  by the  Company in  all  material respects not  later  than thirty  (30)  days   from   the   date   of   receipt  by   the   Company  of   a  written  Notice   of Termination identifying in  reasonable detail the  act  or  acts  constituting "Good  Reason" or (B)  acts  taken  by  the  Company by  reason  of  the  Executive's physical or  mental infirmity which  infirmity impairs the  Executive's ability to substantially perform his  duties  under  this Agreement.

(d)     Notice  of Termination. Any purported termination for Cause by the  Company or  for  Good  Reason  by  the  Executive shall  be  communicated by  a  written Notice  of  Termination to  the  other two  weeks  prior to  the  Termination Date  (as  defined below).     For  purposes of  this  Agreement, a "Notice of  Termination" shall  mean  a  notice which  indicates the  specific  termination provision in  this  Agreement relied upon  and  shall set  forth in  reasonable detail the  facts  and  circumstances claimed to  provide a basis  for termination  of   the   Executive's  employment  under   the   provision  so   indicated.     Any termination  by  the   Company other  than   for  Cause  or  by  the   Executive  without  Good Reason  shall  be communicated by  a written Notice  of Termination to  the  other party four (4)  weeks  prior to  the  Termination Date.      However, the  Company may  elect  to  pay  the Executive in lieu of four  (4)  weeks  written notice.  For purposes of this  Agreement, no such purported  termination of employment shall be effective without such Notice of Termination.

10.     Compensation Upon  Certain Terminations by the  Company

(a)       If during the  term of the  Agreement (including any  extensions thereof), whether or  not   following a  Change   in  Control (as  defined in  the  applicable Change   in Control Provision), the  Executive's employment is terminated by  the  Company for  Cause or  by  reason  of  the  Executive's death, or  if  the  Executive gives  the  Company a  written Notice   of  Termination other than  one  for  Good  Reason,  the  Company's sole  obligations hereunder shall be to pay the  Executive  the  following amounts  earned  hereunder but  not paid  as  of  the  Termination Date:    (i) Base Salary,  (ii)   reimbursement  for  any  and  all monies  advanced  or expenses  incurred pursuant to Section  7(b)  through the Termination Date,  and  (iii)   any  earned  compensation  which  the  Executive   had  previously  deferred (including any interest  earned  or credited  thereon)(collectively, "Accrued  Compensation"). The Executive's  entitlement to  any  other  benefits  shall be determined in  accordance  with the Company's  employee  benefit  plans then in effect.

(b)     If the  Executive's   employment  is  terminated by  the  Company  other than  for Cause (including a termination by reason  of the  Company's  written notice  to  the Executive  of its  decision  not  to extend  the  Employment Agreement  pursuant to Section  1 hereof)  or  by  the  Executive  for  Good Reason, the  Company's  sole obligations hereunder should be as follows:

(i)     the Company shall pay     the Executive the Accrued Compensation;

(ii)     in consideration of the Executive  signing  a General Release:

(A)     the  Company   shall  continue   to  pay  the  Executive   his Base Salary for a period  of one ( 1) year following the Termination Date; and

(B)     the Company shall pay the Executive any incentive compensation   under   the  plan  described   in  Section   6  that   the   Executive   would   have received  if the Executive  had remained  employed with  the Company  for a period  of one (1) year after  the Termination Date.

(iii)       provided,  however,   that    if   the   Executive's   employment  is terminated by  the  Company  other  than  for  cause  or  by  the  Executive  for  Good Reason during  the  24-month period  immediately following a Change of Control  (as defined  in the Company's Stock Option  and Performance Incentive Plan) in consideration of the Executive signing  a General Release the  Company  shall pay  the  Executive  his Base Salary  for  one additional  year after  payments have ended under Section 10(b)(ii).

(c)        If the   Executive's   employment  is  terminated  by  the   Company   by reason  of the  Executive's  Disability, the  Company's  sole  obligations hereunder  shall be as follows:

(i)    the  Company   shall   pay   the   Executive   the   Accrued Compensation; and

(ii)    the Executive  shall be entitled to receive  any disability benefits available  under the applicable  Long Term Disability Plan.

(d)     For  up  to  twelve   (12)   months   during   the  period  the  Executive   is receiving  salary  continuation  pursuant  to  Section  10(b)(ii) hereof,  the  Company   shall, provide   to  the  Executive  and  the  Executive's   beneficiaries medical  and  dental  benefits substantially similar  in the  aggregate  to the  those  provided to  the  Executive  immediately prior  to  the  date  of the  Executive's  termination of employment; provided, however, that the   Company's   obligation  to   provide   such  benefits   shall   cease  upon  the   Executive's becoming  eligible  for such benefits  as the result  of employment with  another  employer.

(e)     Executive  shall not be required  to mitigate the amount  of any payment provided  for  in  this  Section  10  by  seeking  other  employment or  otherwise  and  no  such payment   or   benefit   shall   be  eliminated,  offset   or   reduced   by   the   amount   of   any compensation provided to the Executive in any subsequent employment, except as provided in Section 10(d).

11.     Employee Covenants.

(a)     For the  purposes  of this  Section  11, the  term  "Company"  shall include  Limited  Brands, Inc.  and all of its subsidiaries  and affiliates thereof.

(b)     Confidentiality.  The Executive  shall not, during  the  term  of this Agreement   and  thereafter,  make  any  Unauthorized  Disclosure. For  purposes   of  this Agreement,  "Unauthorized  Disclosure"   shall   mean  use  by  the   Executive   for   his  own benefit, or  disclosure   by  the  Executive   to  any  person  other   than   a  person  to  whom disclosure  is reasonably necessary  or  appropriate in connection  with  the  performance by the  Executive  of duties  as an executive  of the Company  or as may  be legally  required, of any   confidential  information   relating   to   the   business   or   prospects   of  the   Company (including, but  not limited to, any information and materials pertaining to any Intellectual Property  as  defined  below);  provided, however, that  Unauthorized Disclosure  shall  not include  the use or disclosure  by the Executive  of any publicly  available  information (other than  information available  as a result  of  disclosure  by  the  Executive  in  violation  of  this Section  11(b)). This confidentiality covenant  has no temporal, geographical or  territorial restriction.

(c)     Non-Competition.  During  the Non-Competition Period described below,  the  Executive  shall not,  directly  or indirectly, without  the  prior  written consent  of the  Company,  own,   manage,   operate,  join,   control,  be  employed   by,  consult   with  or participate in the ownership, management, operation or control  of, or be connected  with (as   a   stockholder,  partner,  or   otherwise),  any   business,   individual, partner, firm, corporation, or other  entity that  competes  or plans to compete, directly  or indirectly, with the  Company,  or any  of its  products; provided, however, that  the  "beneficial  ownership" by the Executive  after  termination of employment with  the Company, either  individually or as a member  of a "group," as such terms  are used in Rule 13d  of the  General Rules and Regulations  under the Securities  Exchange Act of 1934, as amended  (the  "Exchange Act"), of not  more  than  two  percent  (2%) of the  voting  stock  of any  publicly  held  corporation shall not be a violation of Section 11 of this Agreement.

The "Non-Competition Period"  means  the  period  the  Executive is  employed  by  the  Company  plus  the  longer  of  (a)  one  (1)  year  from  the  Termination Date  or   (b)   the   period   during   which   the   Executive   receives   salary   continuation   as described in Section 10(b)  above.

(d)     Non-Solicitation. During  the  No-Raid  Period  described  below, the  Executive  shall  not  directly   or  indirectly solicit,  induce  or  attempt to  influence  any employee  to  leave  the  employment of the  Company,  nor  assist  anyone  else in  doing  so. Further,  during  the  No-Raid  Period, the  

Executive  shall  not,  either  directly   or  indirectly, alone or in conjunction with  another  party, interfere with  or harm, or attempt to interfere with  or harm,  the  relationship of the  Company,  with  any person  who at  any time  was an employee,  customer  or supplier  of the  Company, or otherwise  had a business relationship with the Company.

The   "No-Raid   Period"   means   the   period   the   Executive   is employed  by the Company  plus the  longer  of (a)  one (1)  year from  the Termination Date or (b)  the  period  during  which  the  Executive  receives  salary  continuation as described  in Section 10(b), above.

(e)         Intellectual Property.  The Executive agrees that all inventions, designs  and  ideas  conceived,  produced, created,  or reduced  to  practice, either  solely  or jointly with  others, during  the Executive's    employment with  the Company  including those developed  on  the  Executive's     own  time,  which  relates  to  or is useful  in  the  Company's business  ("Intellectual Property") shall  be owned  solely  by the  Company.    The Executive understands that  whether  in preliminary or final  form,  such Intellectual Property  includes, for example, all ideas, inventions, discoveries,  designs, innovations, improvements, trade secrets, and  other  intellectual property.     All Intellectual Property  is either  work  made  for hire  for the  Company  within  the  meaning  of the  United  States  Copyright Act, or, if such Intellectual Property   is  determined not  to  be  work  made  for  hire,  then  the  Executive irrevocably assigns  all rights,  titles  and interests in and to the Intellectual Property  to the Company,  including all copyrights, patents,  and/or  trademarks.    The Executive  agrees  to, without any  additional   consideration, execute  all  documents   and  take  all  other  actions needed  to  convey  the  Executive's   complete  ownership of the  Intellectual Property  to the Company  so that  the Company  may own and protect  such Intellectual Property  and obtain patent, copyright and trademark registrations for  it.    The Executive  also  agrees  that  the Company  may  alter  or modify  the Intellectual Property  at the  Company's  sole discretion, and  the   Executive   waives   all   right   to  claim   or  disclaim   authorship.    The   Executive represents and  warrants that  any Intellectual Property  that  the  Executive  assigns  to  the Company,  except  as otherwise  disclosed  in writing at the  time  of assignment, will  be the Executive's  sole exclusive  original  work.   The Executive  also represents  that  the Executive has  not  previously  invented any  Intellectual Property   or  has  advised  the  Company   in writing of any prior  inventions or ideas.

(f)     Remedies.   The Executive  agrees  that  any breach  of the  terms of this  Section 11 would result  in irreparable injury and damage  to the Company  for which the Company  would have no adequate  remedy  at law; the Executive  therefore also agrees that  in the event  of said breach  or any threat  of breach,  the  Company  shall be entitled to an immediate injunction and restraining order  to prevent, such breach  and/or  threatened breach  and/or   continued   breach  by  the  Executive   and/or any  and  all  persons  and/or entities  acting  for and/or with the Executive, without having  to prove  damages.  The terms of  this   paragraph  shall  not  prevent   the  Company   from   pursuing any  other   available remedies  for  any  breach  or  threatened breach  hereof,  including but  not  limited to  the recovery  of  damages  from  the  Executive.  The Executive  and  the  Company  further  agree that  the confidentiality provisions and the covenants  not to compete  and solicit  contained in this  Section  11 are reasonable  and that  the  Company  would  not  have entered  into  this Agreement  but  for  the  inclusion  of  such  covenants  herein. The  parties  agree  that  the prevailing party  shall be entitled to all costs and expenses, including reasonable  attorneys' fees and costs, in addition  to any other  remedies  to which either  may be entitled at law or in  equity. Should  a  court  determine, however, that  any  provision   of  the  covenants   is unreasonable, either  in period  of time,  geographical area, or otherwise, the  parties  hereto agree that  the covenant  should be interpreted and enforced  to the maximum extent  which such court deems reasonable.

The provisions  of this  Section  11 shall  survive  any termination of  this  Agreement, and  the  existence  of  any  claim  or  cause  of  action  by  the  Executive against   the  Company,   whether   predicated   on  this   Agreement   or  otherwise,  shall   not constitute  a   defense   to   the   enforcement  by   the   Company   of   the   covenants   and agreements of this  Section 11; provided, however, that  this  paragraph  shall not, in and of itself,   preclude  the  Executive  from  asserting   or  defending   a  legal  claim  regarding the enforceability of the covenants  and agreements  of this  Section 11.

12.   Employee   Representation.     The   Executive   expressly   represents   and warrants  to  the  Company  that  the  Executive  is not  a party  to any  contract  or agreement and is not  otherwise obligated  in any  way, and is not  subject  to any rules  or regulations, whether  governmentally imposed  or otherwise, which  will  or may  restrict  in any  way the Executive's  ability   to  fully  perform   the  Executive's  duties  and  responsibilities under  this Agreement.

13.     Successors and Assigns.

(a)       This  Agreement   shall  be  binding   upon  and  shall  inure  to  the benefit  of the  Company,  its  successors  and  assigns,  and  the  Company  shall  require  any successor or assign to expressly  assume and agree to perform  this Agreement  in the same manner  and to  the  same  extent  that  the  Company  would  be required  to  perform  it if  no such succession or assignment had taken  place.   The term  "the  Company"  as used herein shall include  any  such successors  and  assigns  to  the  Company's  business  and/or  assets. The term  "successors and assigns"  as used herein  shall mean a corporation or other  entity acquiring   or  otherwise   succeeding  to,  directly   or  indirectly, all   or  substantially  all  the assets and business  of the  Company  (including this  Agreement) whether  by  operation  of law or otherwise.

(b)       Neither  this Agreement  nor any right  or interest hereunder  shall be assignable or transferable by the Executive, the Executive's  beneficiaries or legal representatives, except  by will or by the laws of descent and distribution.  This Agreement shall   inure   to   the   benefit   of  and   be  enforceable   by  the   Executive's   legal   personal representative.

14.      Arbitration.   Except  with  respect  to  the  remedies  set  forth  in  Section 11(f) hereof,  any  controversy or claim  between  the  Company  or any  of its  affiliates  and the Executive  arising  out of or relating  to this Agreement  or its termination shall be settled and determined by a single  arbitrator whose award  shall be accepted as final  and binding upon the parties.   The American  Arbitration Association, under  its Employment Arbitration Rules,  shall   administer  the   binding   arbitration.    The  arbitration  shall   take   place  in Columbus,  Ohio.    The Company  and the Executive  each waive any right  to a jury  trial  or to a petition for stay  in any  action  or proceeding  of any  kind  arising  out  of or relating  to this  Agreement  or its termination and agree that  the arbitrator shall have the authority to award costs and attorney fees to the prevailing party.

15.     Notice.     For  the  purposes  of  this  Agreement, notices  and  all  other communications provided for in  the  Agreement  (including the Notice of Termination) shall be in writing  and shall be deemed  to  have  been duly  given  when personally  delivered  or sent  by  registered   or  certified mail,  return  receipt  requested,  postage  prepaid,  or  upon receipt  if overnight delivery  service or facsimile is used, addressed  as follows:

To the Executive: 
Charles McGuigan
3145 East Addison
Alpharetta, GA 30022

To the Company: 
Limited  Brands, Inc. 
Three Limited  Parkway 
Columbus, Ohio  43230
Attn:   Secretary

16.     Settlement of Claims.     The Company's obligation to make the payments   provided  for   in  this   Agreement   and   otherwise to perform  its obligations hereunder   shall  not  be affected  by  any  circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense, or other  right  which  the  Company  may  have against  the Executive  or others.

17.     Miscellaneous.     No  provision of  this   Agreement   may   be  modified, waived, or discharged  unless such waiver,  modification, or discharge is agreed to in writing and signed  by the  Executive  and the  Company.   No waiver  by either  party  hereto  at any time  of  any  breach  by  the  other  party  hereto  of,  or  compliance   with,  any  condition or provision of this Agreement  to be performed by such other  party  shall be deemed a waiver of similar  or dissimilar  provisions or conditions  at the  same or at any prior  or subsequent time. No  agreement  or  representations,  oral  or  otherwise,  express  or  implied, with respect  to  the  subject   matter   hereof  have  been  made  by  either  party   which  are  not expressly  set forth  in this Agreement.

18.       Governing  Law.   This Agreement  shall  be governed  by  and  construed and enforced  in accordance  with  the  laws of the State  of Ohio without  giving  effect to the conflict  of law principles  thereof.

19.       Severability.    The  provisions of  this   Agreement   shall   be  deemed severable  and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other  provisions hereof.

20.     Entire Agreement.  This  Agreement  along  with  the  Executive's   Offer Letter  constitutes the  entire  agreement between  the  parties  hereto  with  respect  to  the subject  matter hereof  and  supersedes  all  prior  agreements,  if  any,  understandings  and arrangements, oral  or  written, between  the  parties  hereto   with  respect  to  the  subject matter  hereof.

IN  WITNESS WHEREOF, the  Company  has  caused  this  Agreement  to be executed  by its duly  authorized officer  and the Executive  has executed  this  Agreement as of the day and year first above written.

                	
					
	 
	LIMITED BRANDS, INC.

	 
	BEAUTY AVENUES, LLC

	 
	 
	 
	 
	 

	 
	By:
	/s/ LESLIE H. WEXNER
	 
	 

	 
	 
	Name: Leslie H. Wexner
	 
	Date

	 
	 
	 
	 
	 

	 
	 
	/s/ CHARLES MCGUIGAN
	 
	1/29/2008

	 
	 
	Charles McGuigan
	 
	Date

AMENDMENT TO AGREEMENT

WHEREAS, Limited Brands, Inc. (the "Company"), and Charles McGuigan,  an employee of the Company (the "Executive") have previously entered into an agreement regarding the terms and conditions of Executive's employment  with the Company,  effective December 31, 2007 (the "Agreement"); and

WHEREAS, the parties desire to amend the Agreement  in a manner that reflects the parties best good faith efforts to comply with the provisions  of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), for the benefit of the Executive.

NOW, THEREFORE, the Company and the Executive,  intending  to be legally bound hereby agree that the Agreement  will be amended as follows:

1.     Section 6(a) of the Agreement  is amended by adding the following  new sentence at the end thereof:

"The bonus will be paid at such time and in such manner as set forth in the applicable  incentive compensation plan."

2.     Section 7(b) of the Agreement  is amended by inserting the following  new sentence at the end thereof:

"In no event shall such an expense be reimbursed  after the last day of the year following the year in which the expense was incurred."

3.     Section 9 (d) is amended in its entirety as follows:

"Notice  of Termination. Any purported termination  for Cause by the Company or for Good Reason by the Executive shall be communicated by a written Notice of Termination to the other two weeks prior to the Termination  Date (as defined below).  For purposes of this Agreement,  a "Notice  of Termination" shall mean a notice which indicates the specific termination  provision in this Agreement  relied upon and shall set forth in reasonable detail the facts and circumstances  claimed to provide a basis for termination  of the Executive's employment  under the provision so indicated.  Any termination  by the Company other than for Cause shall be communicated  by a written Notice of Termination
to the Executive two (2) weeks prior to the Termination Date. However,  the Company may elect to pay the Executive  in lieu of two (2) weeks written notice.  Any termination  by the Executive without Good Reason shall be communicated  by a written Notice of Termination to the Company three (3) months prior to the Termination  Date.  For purposes of this Agreement,  no such purported  termination  of employment  shall be effective without such Notice of Termination."

4.     Section  10(a) of the Agreement  is amended by adding the following after the first sentence therein:

"In the event the Executive's employment  is terminated  under this Subsection  (a), Accrued Compensation  will be paid within 60 days of the date of the Executive's Termination  Date or death."

5.     Section 10(b)(i) of the Agreement is amended by inserting the following at the end thereof:

"within  60 days of the Executive's Termination Date."

6.     Section 10(b)(ii)(A)  of the Agreement is amended by inserting the following  new paragraph at the end thereof:

"Each of the payments of severance under this Section  10(b)(ii)(A) are designated  as separate payments for purposes of determining  if the payment qualifies as a Short-Term  Deferral or as Involuntary Separation  Pay.  Payments that are (i) Short-Term  Deferrals,  and (ii) any additional  payments that are Involuntary  Separation Pay are excepted from the requirements  of Code Section 409A.  To the extent payments of severance under this Section 10(b)(ii)(A) during the first six month period following Executive's Termination Date do not qualify as a Short-Term  Deferral or Involuntary  Separation Pay, the payments shall be withheld and the amount of the payments withheld will be paid in a lump sum on
the last day that any such severance is considered  a Short-Term Deferral or Involuntary  Separation  Pay."
		
	7. 
	Section 10(b)(ii)(B)  is deleted and the following  is inserted in lieu thereof:

    
 "the Company shall pay the Executive, at such time and in such manner as set
forth in the applicable incentive compensation  plan, any incentive compensation
under the plan described in Section 6 that the Executive would have received if the Executive had remained employed with the Company for a period of one (1) year after the Termination  Date;"
		
	8. 
	Section 10(c)(i) of the Agreement is by inserting the following at the end thereof: 

"within 60 days of the Executive's Termination Date."
9.          The following new Section 10(f) is added to the Agreement as follows: 
"(f)     Certain Definitions.

(i)     For purposes of this Agreement, 'Short- Term Deferral' means payments pursuant to the rules under Treasury Regulation Section 1.409A-l(b)(4)(i) that are made on or before the 15th day of the third month of (i) the calendar year following the applicable year of termination, or (ii) if later, the Company's tax year following the applicable year of termination. Such amounts are excepted from Code Section 409A.  A payment that will or may occur later than the end of the applicable 2-1/2 month period is not considered to be a Short-Term Deferral.
(ii)     For purposes of this Agreement 'Involuntary Separation Pay' means payments pursuant to the rules under Treasury Regulation Section 1.409A-1(b)(9)(iii) that are made on or before the last day of the second calendar year following the year of Executive's  involuntary separation from service and do not
exceed the lesser of two times Base Salary or two times the limit under Code Section 401(a)(17) then in effect."

IN WITNESS WHEREOF, the parties have executed this amendment, in duplicate, on the dates set forth below.
                	
					
	 
	LIMITED BRANDS, INC.

	 
	 
	 
	 
	 

	 
	By:
	/s/ DOUGLAS L. WILLIAMS
	 
	12/23/2008

	 
	 
	Douglas L. Williams
	 
	Date Signed

	 
	 
	Senior Vice President,
	 
	 

	 
	 
	General Counsel
	 
	 

	 
	 
	 
	 
	 

	 
	 
	EXECUTIVE
	 
	 

	 
	 
	 
	 
	 

	 
	 
	/s/ CHARLES MCGUIGAN
	 
	12/1/2008

	 
	 
	Charles McGuigan
	 
	Date Signed

EMPLOYMENT AGREEMENT AMENDMENT

This Amendment to the Employment Agreement (defined below) is effective March 15, 2012 and is entered into between Limited Brands, Inc. (the “Company”) and Charles McGuigan (the “Executive”) and shall for all purposes constitute and be deemed an amendment to the Employment Agreement entered into as of December 31, 2007, by and between Limited Brands, Inc., Beauty Avenues, LLC and the Executive.  The Employment Agreement, as modified by this Amendment, shall govern the terms and conditions of Executive's employment relationship with the Company.

WHEREAS, nothing in this Amendment shall cancel or modify any previous grant of stock options or restricted stock which was previously granted to the Executive or any rights to repurchase shares represented by such grants;

WHEREAS, the Executive and the Company desire to cause the Employment Agreement to be amended as provided herein; and

NOW, THEREFORE, in consideration of the foregoing and the respective agreements of the parties contained herein, the parties agree to amend the Executive's Employment Agreement as follows:

1.    Section 9 (d) is amended in part as follows:

(d)  Executive agrees that as part of the consideration for the Equity Grant that will be granted to him on or about March 31, 2012 that if he decides to resign his employment with the Company for reasons other than “Good Reason” to provide the Company with three (3) months prior written notice.
		
	2.
	Section 10 is amended in its entirety as follows: Compensation Upon Certain Terminations by the Company

(a)      If during the term of the Agreement (including any extensions thereof), whether or not following a Change in Control (as defined below), the Executive's employment is terminated by the Company for Cause or by reason of the Executive's death, or if the Executive gives written notice not to extend the term of this Agreement, the Company's sole obligations hereunder shall be to pay the Executive the following amounts earned hereunder but not paid as of the Termination Date:  (i) Base Salary, (ii) reimbursement for any and all monies advanced or expenses incurred pursuant to Section
7(b) through the Termination Date, and (iii) any earned compensation which the Executive had previously deferred (including any interest earned or credited thereon)(collectively, “Accrued Compensation”).  The Executive's entitlement to any other benefits shall be determined in accordance with the Company's employee benefit plans then in effect.

(b)     If the Executive's employment is terminated by the Company other than for Cause or by the Executive for Good Reason, in each case other than during the 24-month period immediately following a Change in Control, the Company's sole obligations hereunder shall be as follows:

(i)    the  Company  shall  pay  the  Executive  the  Accrued Compensation;

(ii)    the Company shall continue to pay the Executive the Base Salary for a period of one (1) year following the Termination Date;

(iii)         in  consideration  of  the  Executive  signing  a  General Release, the Company shall (A) pay the Executive any incentive compensation under the plan described in Section 6 that the Executive would have received if he had remained employed with the Company for a period of one (1) year after the Termination Date; (B) pay the Executive his Base Salary for one additional year after payments have ended under Section 10(b)(ii).

(c)      If the Executive's employment is terminated by the Company by reason of the Executive's Disability, the Company's sole obligations hereunder shall be as follows:

(i)    the  Company  shall  pay  the  Executive  the  Accrued Compensation; and

(ii)    the  Executive  shall  be  entitled  to  receive  disability benefits available under the Company's Executive Long Term Disability Plan.

(d)   If the Executive's employment is terminated by reason of the Company's written notice to the Executive of its decision not to extend the Employment Agreement pursuant to Section 1 hereof, the Company's sole obligation hereunder shall be as follows:
(i)    the  Company  shall  pay  the  Executive  the  Accrued Compensation;

(ii)    the Company shall continue to pay the Executive his Base Salary for a period of one (1) year following the expiration of such term; and

(iii)    in  consideration  of  the  Executive  signing  a  General Release, the Company shall (A) pay the Executive any incentive compensation under the plan described in Section 6 that the Executive would have received if he had remained employed with the Company for a period of one (1) year after the Termination Date; and (B) pay the Executive his Base Salary for one additional year after payments have ended under Section 10(d)(ii).

(e)     For up to eighteen (18) months during the period the Executive is receiving salary continuation pursuant to Section 10(b), 10(c)(ii) or 10(d) hereof, the Company shall, at its expense, provide to the Executive and the Executive's beneficiaries medical and dental benefits substantially similar in the aggregate to the those provided to the Executive immediately prior to the date of the Executive's termination of employment; provided, however, that the Company's obligation to provide such benefits shall cease after eighteen (18) months or the Executive's first day of employment, whichever is earlier.

(f)      In the event Executive becomes entitled to any payments under Section 10(g), the Company will have no obligation to make any payments set forth in Sections 10(b), (c), or (d) or provide the benefits set forth in Section 10(e).
(g)     If the Executive's employment is terminated by the Company other than for Cause or by the Executive for Good Reason, in each case during the 24 consecutive month period immediately following a Change in Control, the Company's sole obligations hereunder subject to the Executive's execution of a General Release, shall be as follows:

(i) the Company shall pay the Executive the Accrued Compensation;

(ii)   the Company shall pay the Executive a lump sum payment in cash no later than ten (10) business days after the Termination Date in an amount equal to two times Executive's Base Salary;

(iii)  the Company shall pay the Executive a lump sum payment in cash no later than ten (10) business days after the Termination Date in an amount equal to the sum of the last four (4) bonus payments the Executive received under the Company's incentive compensation plan described in Section 6 and a pro-rata amount for the season in which the Executive's employment is terminated based on the average of the prior four (4) bonus payments and the number of days the Executive is employed during such season; and

(iv) the Company shall reimburse the Executive for all documented legal fees and expenses reasonably incurred by the Executive in seeking to obtain or enforce any right or benefit provided by this Section 10(g) or Section 10(h).
(h)     Except as provided in Section 10(e), the Executive shall not be required to mitigate the amount of any payment provided for in this Section 10 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 10 be reduced by any compensation earned by the Executive as the result of employment by another employer.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of the day and year first above written.
                                        	
					
	 
	LIMITED BRANDS, INC.

	 
	 
	 
	 
	 

	 
	By:
	 
	 
	 

	 
	Name:
	 
	 
	 

	 
	Title:
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Charles McGuiganLTD 1.28.2012 10K EX 10.25

Exhibit 10.25
LIMITED BRANDS, INC. 
2011 STOCK OPTION AND PERFORMANCE INCENTIVE PLAN 
AMENDED AND RESTATED EFFECTIVE JULY 21, 2011
ARTICLE I 
ESTABLISHMENT AND PURPOSE 
1.01. Establishment and Effective Date. Effective on May 26, 2011, Limited Brands, Inc., a Delaware corporation (including any successor in name or interest thereto, the “Company”), established this stock incentive plan known as the “Limited Brands, Inc. 2011 Stock Option and Performance Incentive Plan.” (the “Plan”). 
1.02. Purpose. The Company desires to attract and retain the best available executive and key management associates, consultants and other advisors, for itself and its subsidiaries and affiliates and to encourage the highest level of performance by such associates in order to serve the best interests of the Company and its stockholders. The Plan is expected to contribute to the attainment of these objectives by offering eligible associates, consultants and other advisors the opportunity to acquire stock ownership interests in the Company, and other rights with respect to stock of the Company, and to thereby provide them with incentives to put forth maximum effort for the success of the Company and its subsidiaries. 
ARTICLE II 
AWARDS 
2.01. Form of Awards. Awards under the Plan may be granted in any one or all of the following forms: (i) incentive stock options (“Incentive Stock Options”) meeting the requirements of Code Section 422; (ii) nonstatutory stock options (“Nonstatutory Stock Options”) (unless otherwise indicated, references in the Plan to Options shall include both Incentive Stock Options and Nonstatutory Stock Options); (iii) stock appreciation rights (“Stock Appreciation Rights”), as described in Article VII, which may be awarded either in tandem with Options (“Tandem Stock Appreciation Rights”) or on a stand-alone basis (“Nontandem Stock Appreciation Rights”); (iv) units representing shares of common stock of the Company (“Common Stock”) which are restricted as provided in Article XI (“Restricted Share Units”); (v) units representing shares of Common Stock, as described in Article XII (“Performance Units”) and (vi) shares of unrestricted Common Stock (“Unrestricted Shares”), as described in Article XIV. In addition, awards may be granted as “Substitute Awards,” which are awards granted in assumption of, or in substitution for, any outstanding awards previously granted by a company acquired by the Company (or a subsidiary or affiliate thereof) or with which the Company (or a subsidiary or affiliate thereof) combines. Substitute Awards shall be granted in accordance with procedures complying with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder. 
2.02. Maximum Shares Available. The maximum aggregate number of shares of Common Stock available for award under this Plan as of the Plan's effective date is 7,000,000 subject to adjustment pursuant to Article XV, plus shares of Common Stock issuable upon the exercise of Substitute Awards, plus the number of shares of Common Stock reserved for issuance under the 1993 Stock Option and Performance Plan (the “Preexisting Plan”) to the extent (A) that such shares were available for grants of awards under the Preexisting Plan immediately prior to the Plan's effective date or (B) that were subject to outstanding awards under the Preexisting Plan on the Plan's effective date and thereafter an event occurs (including expiration or forfeiture) which would result in such shares again being available for awards under the Plan (as determined below). All shares available for award under the Plan may be awarded in the form of Incentive Stock Options. Shares of  Common Stock issued pursuant to the Plan may be either authorized but unissued shares or issued shares reacquired by the Company. In the event that prior to the end of the period during which Options may be granted under the Plan, any Option or any Nontandem Stock Appreciation Right granted under the Plan or Preexisting Plan or granted and outstanding under the Plan or Preexisting Plan expires unexercised or is terminated, surrendered or canceled (other than in connection with the exercise of a Stock Appreciation Right) without being exercised in whole or in part for any reason, or any Restricted Share Units or Performance Units are forfeited, or if such awards are settled in cash in lieu of shares of Common Stock, then the shares to which any such award relates may, at the discretion of the Committee (as defined below) to the extent permissible under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Act”), be made available for subsequent awards under the Plan, upon such terms as the Committee may determine; provided, however, that the foregoing shall not apply to or in respect of Substitute Awards. 

ARTICLE III 
ADMINISTRATION 
3.01. Committee. The Plan shall be administered by a Committee (the “Committee”) appointed by the Company's Board of Directors (the “Board”) and consisting of not less than two (2) members of the Board. Each member of the Committee shall be an “outside director” (within the meaning of Code Section 162(m)), a “non-employee director” (within the meaning of Rule 16b-3(b)(3)(i) under the Act) and “independent” to the extent required by applicable law or rules of the New York Stock Exchange. 
3.02. Powers of Committee. Subject to the express provisions of the Plan, the Committee shall have the power and authority (i) to grant Options and to determine the purchase price of the Common Stock covered by each Option, the term of each Option, the number of shares of Common Stock to be covered by each Option and any performance objectives or vesting standards applicable to each Option; (ii) to designate Options as Incentive Stock Options or Nonstatutory Stock Options and to determine which Options, if any, shall be accompanied by Tandem Stock Appreciation Rights; (iii) to grant Tandem Stock Appreciation Rights and Nontandem Stock Appreciation Rights and to determine the terms and conditions of such rights; (iv) to grant Restricted Share Units and to determine the term of the restricted period and other conditions and restrictions applicable to such shares; (v) to grant Performance Units and to determine the performance objectives, performance periods and other conditions applicable to such units; (vi) to grant Unrestricted Shares; and (vii) to determine the associates to whom, and the time or times at which, Options, Stock Appreciation Rights, Restricted Share Units, Performance Units and Unrestricted Shares shall be granted. 
3.03. Delegation. The Committee may delegate to one or more of its members or to any other person or persons such ministerial duties as it may deem advisable; provided, however, that the Committee may not delegate any of its responsibilities hereunder if such delegation will cause (i) transactions under the Plan to fail to comply with Section 16 of the Act or (ii) the Committee to fail to qualify as “outside directors” under Code Section 162(m). The Committee may also employ attorneys, consultants, accountants or other professional advisors and shall be entitled to rely upon the advice, opinions or valuations of any such advisors. 
3.04. Interpretations. The Committee shall have sole discretionary authority to interpret the terms of the Plan, to adopt and revise rules, regulations and policies to administer the Plan and to make any other factual determinations which it believes to be necessary or advisable for the administration of the Plan. All actions taken and interpretations and determinations made by the Committee in good faith shall be final and binding upon the Company, all associates who have received awards under the Plan and all other interested persons. 
3.05. Liability; Indemnification. No member of the Committee, nor any person to whom duties have been delegated, shall be personally liable for any action, interpretation or determination made with respect to the Plan or awards made thereunder, and each member of the Committee shall be fully indemnified and protected by the Company with respect to any liability he or she may incur with respect to any such action, interpretation or determination, to the extent permitted by applicable law and to the extent provided in the Company's Certificate of Incorporation and Bylaws, as amended from time to time. 
ARTICLE IV 
ELIGIBILITY 
4.01. Eligibility. Any associate, consultant, director or other advisor of, or any other individual who provides services to (x) the Company or any subsidiary or affiliate or (y) any joint venture in which the Company or any subsidiary or affiliate holds at least a 40% interest, shall be eligible to be selected to receive a compensatory award under or to be a “participant” in the Plan. In determining the individuals to whom awards shall be granted and the number of shares to be covered by each award, the Committee shall take into account the nature of the services rendered by such individuals, their present and potential contributions to the success of the Company and its subsidiaries and such other factors as the Committee in its sole discretion shall deem relevant. The Committee shall ensure that Common Stock underlying any award hereunder qualifies as “service recipient stock,” within the meaning of Code Section 409A and the regulations thereunder. “Participant” means any individual granted an award hereunder. No Participant may be granted in any calendar year awards covering more than 2,000,000 shares of Common Stock. 
4.02. Certain Limitations.  Other than in connection with (i) the acceleration of Awards pursuant to Section 18.02, (ii) the grant of Substitute Awards or (iii) the grant of awards of Restricted Share Units or Performance Units relating up to 5% of the shares available for issuance under this Plan pursuant to Section 2.02, (A) awards of Restricted Share Units or Performance Units that vest or become exercisable based on the achievement of service conditions only shall be subject to a minimum three-year vesting period following the grant date of such Award; provided that such Award may vest in ratable installments during such period and (B) awards of Restricted Share Units or Performance Units that vest or become exercisable based on the achievement of performance conditions (in addition to achievement of any service conditions) shall be subject to a minimum one-year vesting period following the grant date of such Award.  

ARTICLE V 
STOCK OPTIONS 
5.01. Grant of Options. Options may be granted under the Plan for the purchase of shares of Common Stock. Options shall be granted in such form and upon such terms and conditions, including the satisfaction of corporate or individual performance objectives and other vesting standards, as the Committee shall from time to time determine. On or before the date of grant of an Option, the Committee shall designate the number of shares of Common Stock covered by such Option, the option price of such Option, and the recipient of the Option. 
5.02. Option Price. The option price of each Option to purchase Common Stock shall be determined by the Committee not later than the date of the grant, but (except in the case of Substitute Awards) shall not be less than 100 percent of the Fair Market Value (as defined in Section 19.01) of the Common Stock subject to such Option on the date of grant. The option price so determined shall also be applicable in connection with the exercise of any Tandem Stock Appreciation Right granted with respect to such Option. 
5.03. Term of Options. The term of each Option granted under the Plan shall not exceed ten (10) years from the date of grant, subject to earlier termination as provided in Articles IX and X, except as otherwise provided in Section 6.01 with respect to ten (10) percent stockholders of the Company. 
5.04. Exercise of Options. Subject to the provisions of Article XIX (“Miscellaneous Provisions”), an Option may be exercised, in whole or in part, at such time or times as the Committee shall determine. The Committee may, in its discretion, accelerate the exercisability of any Option at any time. Options may be exercised by a Participant by giving notice to the Committee, in writing or in such other manner as the Committee may permit, stating the number of shares of Common Stock with respect to which the Option is being exercised and tendering payment therefor. Payment for the shares of Common Stock issuable upon exercise of the Option shall be made in full in cash or by certified check or, if the Committee, in its sole discretion, permits, in shares of Common Stock (valued at Fair Market Value on the date of exercise). As soon as reasonably practicable following such exercise, a certificate representing the shares of Common Stock purchased, registered in the name of the Participant, shall be delivered to the Participant. Until the issuance of the shares of Common Stock, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the shares of Common Stock that are subject to the Option. 
5.05. Cancellation of Stock Appreciation Rights. Upon exercise of all or a portion of an Option, the related Tandem Stock Appreciation Rights shall be canceled with respect to an equal number of shares of Common Stock. 
ARTICLE VI 
SPECIAL RULES APPLICABLE TO INCENTIVE STOCK OPTIONS 
6.01. Ten Percent Stockholder. Notwithstanding any other provision of this Plan to the contrary, any associates who are full-time employees of the Company and its present and future subsidiaries, shall be eligible for awards of Incentive Stock Options. However, no such associate may receive an Incentive Stock Option under the Plan if such associate, at the time the award is granted, owns (after application of the rules contained in Code Section 424(d)) stock possessing more than ten (10) percent of the total combined voting power of all classes of stock of the Company or its subsidiaries, unless (i) the option price for such Incentive Stock Option is at least 110 percent of the Fair Market Value of the Common Stock subject to such Incentive Stock Option on the date of grant and (ii) such Option is not exercisable after the date five (5) years from the date such Incentive Stock Option is granted. 
6.02. Limitation on Grants. The aggregate Fair Market Value (determined with respect to each Incentive Stock Option at the time such Incentive Stock Option is granted) of the shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an associate during any calendar year (under this Plan or any other plan of the Company or a subsidiary) shall not exceed $100,000. 
6.03. Limitations on Time of Grant. No grant of an Incentive Stock Option shall be made under this Plan more than ten (10) years after the earlier of the date of adoption of the Plan by the Board or the date the Plan is approved by stockholders. 

ARTICLE VII 
STOCK APPRECIATION RIGHTS 
7.01. Grants of Stock Appreciation Rights. Tandem Stock Appreciation Rights may be awarded by the Committee in connection with any Option granted under the Plan, at the time the Option is granted, and shall be subject to the same terms and conditions as the related Option, except that the medium of payment may differ. Nontandem Stock Appreciation Rights may be granted by the Committee at any time. On or before the date of grant of a Nontandem Stock Appreciation Right, the Committee shall specify the number of shares of Common Stock covered by such right, the base price of shares of Common Stock to be used in connection with the calculation described in Section 7.04 below, and the recipient of the award. Except in the case of a Substitute Award, the base price of a Nontandem Stock Appreciation Right shall be not less than 100 percent of the Fair Market Value of a share of Common Stock on the date of grant. Stock Appreciation Rights shall be subject to such terms and conditions not inconsistent with the other provisions of this Plan as the Committee shall determine. 
7.02. Limitations on Exercise. Subject to the provisions of Articles IX, X and XIX, a Tandem Stock Appreciation Right shall be exercisable only to the extent that the related Option is exercisable and shall be subject to the same exercise period as the related Option, which shall be set forth in the applicable agreement on or before the date of grant. Upon the exercise of all or a portion of Tandem Stock Appreciation Rights, the related Option shall be canceled with respect to an equal number of shares of Common Stock. Shares of Common Stock subject to Options, or portions thereof, surrendered upon exercise of a Tandem Stock Appreciation Right, shall not be available for subsequent awards under the Plan. Subject to the provisions of Article XIX, a Nontandem Stock Appreciation Right shall be exercisable during such period as the Committee shall determine, which shall be set forth in the applicable agreement on or before the date of grant. 
7.03. Term of Stock Appreciation Rights. The term of each Stock Appreciation Right granted under the Plan shall not exceed ten (10) years from the date of grant, subject to earlier termination as provided in Articles IX and X. 
7.04. Surrender or Exchange of Tandem Stock Appreciation Rights. A Tandem Stock Appreciation Right shall entitle the Participant to surrender to the Company unexercised the related option, or any portion thereof, and to receive from the Company in exchange therefor that number of shares of Common Stock having an aggregate Fair Market Value equal to (A) the excess of (i) the Fair Market Value of one (1) share of Common Stock as of the date the Tandem Stock Appreciation Right is exercised over (ii) the option price per share specified in such Option, multiplied by (B) the number of shares of Common Stock subject to the Option, or portion thereof, which is surrendered. Cash shall be delivered in lieu of any fractional shares. 
7.05. Exercise of Nontandem Stock Appreciation Rights. The exercise of a Nontandem Stock Appreciation Right shall entitle the Participant to receive from the Company that number of shares of Common Stock having an aggregate Fair Market Value equal to (A) the excess of (i) the Fair Market Value of one (1) share of Common Stock as of the date on which the Nontandem Stock Appreciation Right is exercised over (ii) the base price of the shares covered by the Nontandem Stock Appreciation Right, multiplied by (B) the number of shares of Common Stock covered by the Nontandem Stock Appreciation Right, or the portion thereof being exercised. Cash shall be delivered in lieu of any fractional shares. 
7.06. Settlement of Stock Appreciation Rights. As soon as is reasonably practicable after the exercise of a Stock Appreciation Right, the Company shall (i) issue, in the name of the Participant, stock certificates representing the total number of full shares of Common Stock to which the Participant is entitled pursuant to Section 7.03 or 7.04 hereof, and cash in an amount equal to the Fair Market Value, as of the date of exercise, of any resulting fractional shares and (ii) if the Committee causes the Company to elect to settle all or part of its obligations arising out of the exercise of the Stock Appreciation Right in cash pursuant to Section 7.06, deliver to the Participant an amount in cash equal to the Fair Market Value, as of the date of exercise, of the shares of Common Stock it would otherwise be obligated to deliver. 
7.07. Cash Settlement. The Committee, in its discretion, may cause the Company to settle all or any part of its obligation arising out of the exercise of a Stock Appreciation Right by the payment of cash in lieu of all or part of the shares of Common Stock it would otherwise be obligated to deliver in an amount equal to the Fair Market Value of such shares on the date of exercise. 

ARTICLE VIII 
NONTRANSFERABILITY OF OPTIONS AND STOCK APPRECIATION RIGHTS 
8.01. Nontransferability of Options and Stock Appreciation Rights. Except to the extent permitted under Section 8.02, no Option or Stock Appreciation Right may be transferred, assigned, pledged or hypothecated (whether by operation of law or otherwise), except as provided by will or the applicable laws of descent and distribution, and no Option or Stock Appreciation Right shall be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of an Option or a Stock Appreciation Right not specifically permitted herein shall be null and void and without effect. An Option or Stock Appreciation Right may be exercised by a Participant only during the Participant's lifetime, or following the Participant's death pursuant to Article X. 
8.02. Limited Exception to Nontransferability. Notwithstanding Section 8.01, the Committee may determine that a Nonstatutory Stock Option may be transferred by a Participant to one or more members of such Participant's immediate family, to a partnership of which the only partners are members of such Participant's immediate family, or to a trust established by a Participant for the benefit of one or more members of such Participant's immediate family. For this purpose, immediate family means a Participant's spouse, parents, children, grandchildren and the spouses of such parents, children and grandchildren. A transferee described in this Section 8.02 may not further transfer such Nonstatutory Stock Option. A trust described in this Section 8.02 may not be amended to benefit any person other than a member of the Participant's immediate family. A Nonstatutory Stock Option transferred pursuant to this Section 8.02 shall remain subject to the provisions of the Plan, including, but not limited to, the provisions of Articles 9 and 10 relating to the effect on the Nonstatutory Stock Option of the Termination of Employment, disability or death of the Participant, and shall be subject to such other rules as the Committee shall determine. 
ARTICLE IX 
TERMINATION OF EMPLOYMENT 
9.01. Exercise after Termination of Employment. “Termination of Employment” shall mean “separation from service” as that term is defined in Code Section 409A and the regulations thereunder. Except as the Committee may at any time provide, in the event that the employment of a Participant shall be terminated either by the Participant or by the Participant's employer (for reasons other than death, disability or Cause), any Option or Stock Appreciation Right granted to such Participant may be exercised (to the extent that the Participant was entitled to do so at the time of Participant's Termination of Employment) at any time within one (1) year after such Termination of Employment, but in no case later than the date of expiration of the original term of the Option or Stock Appreciation Right; provided, however, that if an Incentive Stock Option is not exercised within three (3) months following Termination of Employment, it shall be treated as a Nonstatutory Stock Option. If the Participant's employment is terminated by the Participant's employer for Cause, except as the Committee may at any time provide, any Option or Stock Appreciation Right may be exercised (to the extent that the Participant was entitled to do so at the time of the Termination of Employment) at any time within thirty (30) days after such Termination of Employment, but in no case later than the date of expiration of the original term of the Option or Stock Appreciation Right. Any Options or Stock Appreciation Rights that are not exercisable on the date of a Termination of Employment for any reason shall lapse. In no event may an Option or Stock Appreciation Right be exercised after the expiration of the original term of the Option or Stock Appreciation Right. 
9.02. Total Disability. Except as the Committee may at any time provide, in the event that a Participant to whom an Option or Stock Appreciation Right has been granted under the Plan shall become totally disabled, such Option or Stock Appreciation Right may be exercised at any time within one (1) year after the Participant's Termination of Employment due to total disability, to the extent that the Participant was entitled to do so at the time of his Termination of Employment (it being understood that such termination occurs after nine (9) months of absence from work due to the total disability), but in no case later than the date of expiration of the original term of the Option or Stock Appreciation Right. Notwithstanding the foregoing, for purposes of exercising Incentive Stock Options, a Participant shall be deemed to have a Termination of Employment if the Participant is absent from work for three (3) months due to total disability, where the date of such Termination of Employment shall be the last date of active employment before the three (3) month period; in this event, if such Participant fails to exercise his or her Incentive Stock Option within three (3) months following such deemed Termination of Employment, such Incentive Stock Option shall be treated as a Nonstatutory Stock Option. For purposes hereof, “total disability” shall have the definition set forth in the Limited Brands, Inc. Long-Term Disability Plan, which definition is hereby incorporated by reference. 

ARTICLE X
DEATH OF PARTICIPANT 
10.01. Death of Participant While Employed. If a Participant to whom an Option or Stock Appreciation Right has been granted under the Plan shall die while employed by or otherwise providing services to the Company or one of its subsidiaries or affiliates, such Option or Stock Appreciation Right shall become fully exercisable by the Participant's beneficiary (as indicated on the appropriate form provided by the Company), or if no beneficiary is so indicated, then by the estate or person who acquires the right to exercise such Option or Stock Appreciation Right upon the Participant's death by bequest or inheritance. Such exercise may occur at any time within one (1) year after the date of the Participant's death (or such other period as the Committee may at any time provide), but in no case later than the date of expiration of the original term of the Option or Stock Appreciation Right. 
10.02. Death of Participant Following Termination of Employment. If a Participant to whom an Option or Stock Appreciation Right has been granted under the Plan shall die after the date of the Participant's Termination of Employment, but before the end of the period provided under the Plan by which a terminated Participant may exercise such Option or Stock Appreciation Right, such Option or Stock Appreciation Right may be exercised, to the extent that the Participant was entitled to do so at the time of the Participant's death, by the Participant's beneficiary (as indicated on the appropriate form provided by the Company), or if no beneficiary is so indicated, then by the estate or person who acquires the right to exercise such Option or Stock Appreciation Right upon the Participant's death by bequest or inheritance. Such exercise may occur at any time within the period in which the terminated Participant could have exercised such Option or Stock Appreciation Right if the Participant had not died (or such other period as the Committee may at any time provide), but in no case later than the date of expiration of the original term of the Option or Stock Appreciation Right. 
ARTICLE XI 
RESTRICTED SHARE UNITS (“RSUs”) 
11.01. Grant of Restricted Share Units. The Committee may from time to time cause the Company to grant RSUs under the Plan to Participants, subject to such restrictions, conditions and other terms as the Committee may determine. For purposes of clarification, grants under the Plan whose terms and conditions are entitled “Restricted Stock” and “Restricted Shares” may in fact be grants of RSUs and will be treated in a manner consistent with RSUs. RSU awards represent an unfunded promise to pay the Participant a specified number of shares of Common Stock (or cash equivalent, as applicable) in the future if the conditions of the RSU award are satisfied and the RSU award is not otherwise forfeited prior to the stated date of delivery, under the terms and conditions applicable to such award. 
11.02. Restrictions. At the time a grant of RSUs is made, the Committee shall establish a period of time (the “Restricted Period”) applicable to such RSUs. Each grant of RSUs may be subject to a different Restricted Period. The Committee may, in its sole discretion, at the time a grant is made, prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the satisfaction of corporate or individual service or performance objectives, which shall be applicable to all or any portion of the RSUs. Except with respect to grants of RSUs intended to qualify as performance-based compensation for purposes of Code Section 162(m), the Committee may also, in its sole discretion, waive any restrictions applicable to all or a portion of such RSUs, provided that the applicable terms and conditions are set forth on or before the date of grant of the award to the extent required to comply with Code Section 409A and the regulations thereunder. None of the RSUs may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of. Unless otherwise provided under the terms of the award, upon the death of a Participant, any conditions applicable to RSUs which have been granted to such Participant will be deemed to have been satisfied at target and the Restricted Period, if any, applicable to Restricted RSUs held by such Participant, will be deemed to have expired. Unless otherwise provided under the terms of the award, upon the retirement of a Participant, the restrictions and conditions, if any, applicable to any RSUs which have been granted to such Participant will be deemed to have been satisfied with respect to that percentage of the RSUs equal to (i) the number of complete months between the first day of the Restricted Period and the date of the Participant's retirement, divided by (ii) the number of complete months in the Restricted Period. Any RSUs granted to a Participant for which the restrictions and conditions are not deemed to have expired pursuant to the preceding sentence shall be forfeited in accordance with Section 11.05. For purposes of this Article XI, “retirement” shall mean a Participant's Termination of Employment following the date on which a Participant has attained age 55 and completed seven years of service with the Company. An award may also provide for full or pro-rata vesting upon other events, such as upon a Change in Control or upon Termination of Employment as a result of total disability, or for other reasons, provided that any such applicable terms and conditions are set forth on or before the date of grant of the award. 
11.03. [Reserved]. 
11.04. Rights of Holders of Restricted Share Units. Except as determined by the Committee not later than the date of grant of RSUs, Participants to whom RSUs have been granted shall not have the right to vote such shares or the right to receive any 

dividends with respect to such shares, except as provided in Section 11.08 with respect to dividend equivalents. All distributions, if any, received by a Participant with respect to RSUs as a result of any stock split-up, stock distribution, a combination of shares, or other similar transaction shall be subject to the restrictions of this Article XI and the adjustment provisions of Article XV. 
11.05. Forfeiture Upon Termination of Employment. Except as provided in Section 11.02 and Article XVIII, and as the Committee may provide in the terms of any award on or before the date of grant, any RSUs granted to a Participant pursuant to the Plan shall be forfeited if the Participant experiences a Termination of Employment either by the Participant or the Participant's employer for reasons other than death prior to the expiration of the Restricted Period and the satisfaction of any other conditions applicable to such RSUs. In addition, if the Participant's Termination of Employment occurs as a result of retirement (as defined in Section 11.02), any RSUs which do not vest in accordance with Section 11.02 shall be forfeited. 
11.06. Delivery of Shares. Unless an election is made under Section 11.08 to defer the settlement of RSUs, and unless otherwise provided in the terms of any award, upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Committee, RSUs shall be settled by delivery of a stock certificate for the number of shares associated with the award with respect to which the restrictions have expired or the terms and conditions have been satisfied to the Participant or the Participant's beneficiary or estate, as the case may be. Such payment in settlement shall be made promptly, but in any event not later then (i) the end of the year in which the Restricted Period ended and the conditions were satisfied or (ii) if later, the 15th day of the third calendar month following the date on which the Restricted Period ended, provided that the award holder will not be permitted, directly or indirectly, to designate the taxable year of settlement. The Participant may be required to execute a release of claims against the Company and its subsidiaries in this event. If an election is made under Section 11.08 to defer the settlement of RSUs, delivery shall occur as described here but upon the date or dates of delivery in accordance with Section 11.09 and the deferral election. Notwithstanding the above, if the Participant is a “specified employee,” as that term is defined in Code Section 409A and the regulations thereunder, and is entitled to receive a payment upon Termination of Employment or on a date determinable based on the date of Termination of Employment (and not a pre-determined fixed date or schedule), then, except in the event of the Participant's death after such Termination of Employment, such payment shall be delayed by at least six (6) months after the date of such Participant's Termination of Employment to the extent required by Code Section 409A and the regulations thereunder. 
11.07. Performance-Based Objectives. At the time of the grant of RSUs to a Participant, and prior to the beginning of the performance period to which performance objectives relate, the Committee may establish performance objectives based on any one or more of the following, which may be expressed with respect to the Company or one or more operating units or groups, as the Committee may determine: price of Common Stock, or the common stock of any affiliate, shareholder return, return on equity, return on investment, return on capital, sales productivity, comparable store sales growth, economic profit, economic value added, net income, operating income, gross margin, sales, free cash flow, earnings per share, operating company contribution or market share. These factors shall have a minimum performance standard below which, and a maximum performance standard above which, no payments will be made. These performance goals may be based on an analysis of historical performance and growth expectations for the business, financial results of other comparable businesses, and progress towards achieving the long-range strategic plan for the business. These performance goals and determination of results shall be based entirely on financial measures. The Committee shall specify how any performance objectives shall be adjusted to the extent necessary to prevent dilution or enlargement of any award as a result of extraordinary events or circumstances, as determined by the Committee, or to exclude the effects of extraordinary, unusual, or non-recurring items; changes in applicable laws, regulations, or accounting principles; currency fluctuations; discontinued operations; non-cash items, such as amortization, depreciation, or reserves; asset impairment; or any recapitalization, restructuring, reorganization, merger, acquisition, divestiture, consolidation, spin-off, split-up, combination, liquidation, dissolution, sale of assets, or other similar corporation transaction; provided, however, that no such adjustment will be made if the effect of such adjustment would cause an award to fail to qualify as performance-based compensation within the meaning of Code Section 162(m). The Committee may not use any discretion to modify award results except as permitted under Code Section 162(m). In addition, with respect to any RSUs granted that are intended to be “performance-based” for purposes of Code Section 162(m), such award shall not be payable upon Termination of Employment for any reason other than due to death, total disability (as defined in Article IX) or upon a Change in Control (as defined in Article XVIII), unless the payment is based on achievement of the associated performance objectives. To the extent that the award is subject to Code Section 409A, payment upon Termination of Employment in connection with a Change in Control must be made upon a Change in Control that satisfies the definition of “change in control event” in Code Section 409A and the regulations thereunder, unless otherwise permitted in satisfaction of the alternative payment rules under Code Section 409A and the regulations thereunder. 
11.08. Deferred Restricted Share Units. The Committee may permit a Participant who has been designated to receive an RSU award to elect to defer the receipt of the shares in settlement of such RSU award as well as the form of payment of such deferred RSUs. 
All elections under this Section 11.08 to defer the settlement of an RSU award must be made in accordance with the requirements of Code Section 409A and the regulations thereunder. Any election not in compliance with such requirements shall be treated as 

invalid and the deferral election shall be disregarded and distribution of the shares upon settlement of the awards shall be made as though the Participant did not elect to defer. For this purpose, an invalid deferral election shall include (but is not limited to) a deferral election that (i) is not executed (regardless of when received), (ii) is executed but received after the applicable irrevocable date or (iii) cannot otherwise become effective under applicable rules. If a valid deferral election is incomplete, the deferral election shall be honored and distribution of the shares attributable to the awards shall be made as though the Participant elected a deferred lump sum payment. For this purpose, a valid but incomplete deferral election is one that has been received and executed on or before the applicable irrevocable date, but does not indicate the form of payment (lump sum versus installments), or indicates an election for installment payments but not the number of installment payments. Unless the award agreement and terms and conditions accompanying specific awards indicate otherwise, or as otherwise provided in the Plan, the deferred RSUs shall be subject to the same restrictions, conditions and forfeiture provisions as the associated nondeferred RSUs. 
Except as determined otherwise by the Committee on or before grant and as set forth in the terms and conditions accompanying such awards, during the Restricted Period with respect to RSUs, Participants shall not have the right to receive any dividends. After the end of the Restricted Period and prior to the time that shares of Common Stock are transferred to the Participant, within sixty (60) days after the date of payment of a dividend by the Company on its shares of Common Stock, the Participant shall be credited with “dividend equivalents” with respect to each outstanding RSU in an amount equal to the amount the Participant would have received as dividends if the RSUs were actual shares of Common Stock. Such dividend equivalents will be converted into additional RSUs based on the value of the Common Stock on the dividend payment date, in accordance with the procedures established by the Committee, and paid at the same time and in the same manner as the underlying RSUs. 
At no time shall any assets of the Company be segregated for payment of RSUs hereunder. Participants who have elected to defer the settlement of RSUs shall at all times have the status of general unsecured creditors of the Company and shall not have any rights in or against specific assets of the Company. The Plan constitutes a mere promise by the Company to make payments attributable to RSUs in the future, in accordance with the applicable terms and conditions. 
11.09. Payment of Deferred Restricted Share Units. RSUs are payable solely in shares of unrestricted Common Stock, and shall be paid in accordance with the terms of delivery under Section 11.06 and this Section 11.09. Shares attributable to deferred RSUs that are vested in accordance with the terms and conditions applicable to such awards shall be transferred to the Participant at the time and in the form as elected by the Participant and as set forth in the terms and conditions applicable to such awards, which shall be either in a single payment or in up to ten (10) installment payments. 
If a lump sum distribution is elected, the payment shall be made on the date provided in, and in accordance with, the terms and conditions applicable to the award. If installment distributions are elected, the initial installment shall be paid on the date provided in, and in accordance with, the terms and conditions applicable to the award. Subsequent installments shall be made on each anniversary of the initial installment and shall continue for the duration of the selected distribution period. If the Participant dies prior to the time all shares have been distributed, distribution shall be made to the Participant's beneficiary or estate on the payment date provided in, and in accordance with, the terms and conditions applicable to the award. If Termination of Employment occurs during the Restricted Period, the terms and conditions shall set forth the rights of the Participant to payment, as well as the time and form of distribution of such awards, if any, to the Participant. A participant shall have no rights as a shareholder with respect to deferred RSUs until such time, if any, as shares of Common Stock are transferred to the Participant (or the Participant's beneficiary or estate, if applicable). Notwithstanding the above, if the Participant is a specified employee and is entitled to receive payment upon Termination of Employment or on a date determinable based on the date of Termination of Employment (and not a pre-determined fixed date or schedule), then, except in the event of the Participant's death after such Termination of Employment, such payment (or in the case of installments, the first payment) shall be delayed by at least six (6) months after the date of such Participant's Termination of Employment, to the extent required by Code Section 409A and the regulations thereunder; in this event, subsequent installment payments shall occur on the anniversary of the first delayed installment payment. 
Provided that the terms and conditions applicable to a deferred RSU award permit it, a Participant may change the Participant's distribution election, provided such change in distribution election is made not less than 12 months before the date the payment (or in the case of installments, the first payment) is scheduled to be made, and is irrevocable after this date. Such an election may be made to change payment(s) from a single lump sum payment to installment payments, from installment payments to a single lump sum payment, or from one number of installment payments to another number of installment payments, by submitting such election to the Company; provided, (i) such election does not become effective until at least twelve (12) months after the date on which the election is made and (ii) except in the case of payment permissible upon the Participant's death, the payment (or in the case of installments the first payment) must be deferred for a period of not less than five (5) years from the date such payment would have been made or commenced if there had been no election to change the form of payment. For this purpose, all installment payments are treated as a single payment. Any election not made in accordance with such procedures shall be treated as invalid, and the change in distribution election shall be disregarded and distribution of the shares attributable to the awards shall be made as though the Participant did not elect to change the time and form of distribution. For this purpose, an invalid change in distribution election shall include (but is not limited to) an election that (i) is not executed (regardless of when received), (ii) is executed but 

received after the applicable irrevocable date or (iii) cannot otherwise become effective under applicable rules. If a valid change in distribution election is incomplete, the change in distribution election shall be honored and distribution of the shares attributable to the awards shall be made as though the associate elected a change in distribution to a deferred lump sum payment. For this purpose, a valid but incomplete change in distribution election is one that has been received and executed on or before the applicable irrevocable date, but does not indicate the form of payment (lump sum versus installments), or indicates an election for installment payments but not the number of installment payments. 
ARTICLE XII 
PERFORMANCE UNITS 
12.01. Award of Performance Units. For each Performance Period (as defined in Section 12.02), Performance Units may be granted under the Plan to such Participants as the Committee shall determine. The award agreement covering such Performance Units shall specify a value for each Performance Unit or shall set forth a formula for determining the value of each Performance Unit at the time of payment (the “Ending Value”). If necessary to make the calculation of the amount to be paid to the Participant pursuant to Sections 12.03 and 12.04, the Committee shall also state in the award agreement the initial value of each Performance Unit (the “Initial Value”). The award agreement may also specify that each Performance Unit is deemed to be equivalent to one (1) share of Common Stock. Performance Units granted to a Participant shall be credited to an account (a “Performance Unit Account”) established and maintained for such Participant. 
12.02. Performance Period. “Performance Period” shall mean such period of time as shall be determined by the Committee in its sole discretion. Different Performance Periods may be established for different Participants receiving Performance Units. Performance Periods may run consecutively or concurrently. 
12.03. Right to Payment of Performance Units. All applicable terms and conditions shall be set forth in the award agreement and/or in accompanying terms and conditions on or before the date of grant of Performance Units. With respect to each award of Performance Units under this Plan, the Committee shall specify performance objectives (the “Performance Objectives”) which must be satisfied in order for the Participant to vest in the Performance Units which have been awarded to the Participant for the Performance Period. If the Performance Objectives established for a Participant for the Performance Period are partially but not fully met, the Committee may, nonetheless, in its sole discretion, determine that all or a portion of the Performance Units have vested but such determination shall not change the date of payment of the awards. If the Performance Objectives for a Performance Period are exceeded, the Committee may, in its sole discretion, grant additional, fully vested Performance Units to the Participant. On or before the date of grant, the Committee may also determine, in its sole discretion, that Performance Units awarded to a Participant shall become partially or fully vested upon the Participant's death, total disability (as defined in Article IX) or retirement (as defined in Section 11.02), or upon the Participant's Termination of Employment prior to the end of the Performance Period but such determination shall not change the date of payment of the awards. Performance Unit awards represent an unfunded promise to pay the Participant the value specified in the award agreement and/or applicable terms and conditions in the future if the conditions associated with the Performance Unit award are satisfied and the Performance Units are not otherwise forfeited prior to the stated date of payment, under the terms and conditions applicable to such award. The provisions of Section 11.07 shall apply to any Performance Units that are intended to qualify as performance-based in accordance with Code Section 162(m) and the regulations thereunder. 
12.04. Payment for Performance Units. As soon as practicable following the end of a Performance Period but not later than 90 days after the end of a Performance Period, the Committee shall determine whether the Performance Objectives for the Performance Period have been achieved (or partially achieved to the extent necessary to permit partial vesting at the discretion of the Committee pursuant to Section 12.03). If the Performance Objectives for the Performance Period have been exceeded, the Committee shall determine whether additional Performance Units shall be granted to the Participant pursuant to Section 12.03. Within 90 days after the end of a Performance Period, provided the Committee determines the Performance Objectives have been achieved or partially achieved pursuant to Section 12.03, if the award agreement specifies that each Performance Unit is deemed to be equivalent to one (1) share of Common Stock, the Company shall pay to the Participant an amount with respect to each vested Performance Unit equal to the Fair Market Value of a share of Common Stock on such payment date or, if the Committee shall so specify at the time of grant, an amount equal to (i) the Fair Market Value of a share of Common Stock on the payment date less (ii) the Fair Market Value of a share of Common Stock on the date of grant of the Performance Unit. If the award agreement specifies a value for each Performance Unit or sets forth a formula for determining the value of each Performance Unit at the time of payment, then within 90 days after the end of a Performance Period, provided the Committee determines the Performance Objectives have been achieved or partially achieved pursuant to Section 12.03, the Company shall pay to the Participant an amount with respect to each vested Performance Unit equal to the Ending Value of the Performance Unit or, if the Committee shall so specify at the time of grant, an amount equal to (i) the Ending Value of the Performance Unit less (ii) the Initial Value of the Performance Unit. Payment shall be made entirely in cash, entirely in Common Stock or in such combination of cash and Common Stock as the Committee shall determine. 

12.05. Voting and Dividend Rights. Except as the Committee may otherwise provide, no Participant shall be entitled to any voting rights, to receive any dividends, or to have his or her Performance Unit Account credited or increased as a result of any dividends or other distribution with respect to Common Stock. Notwithstanding the foregoing, to the extent provided or set forth in the award agreement and/or applicable terms and conditions on or before the date of grant of a Performance Unit award, within sixty (60) days after the date of payment of a dividend by the Company on its shares of Common Stock, a Participant's Performance Unit Account may be credited with additional Performance Units having an aggregate Fair Market Value equal to the dividend per share paid on the Common Stock multiplied by the number of Performance Units credited to the Participant's account at the time the dividend was declared. Subject to the prior satisfaction of the applicable Performance Objectives, payment of such additional Performance Units shall be made at the same time and in the same manner as the Performance Units to which they relate. 
ARTICLE XIII 
UNRESTRICTED SHARES 
13.01. Award of Unrestricted Shares. The Committee may cause the Company to grant Unrestricted Shares to associates at such time or times, in such amounts and for such reasons as the Committee, in its sole discretion, shall determine. No payment shall be required for Unrestricted Shares. 
13.02. Delivery of Unrestricted Shares. The Company shall issue, in the name of each Participant to whom Unrestricted Shares have been granted, stock certificates representing the total number of Unrestricted Shares granted to the associate, and shall deliver such certificates to the Participant on a fixed or objectively determinable date of payment, which shall be set forth at the time of grant. 
13.03. Deferred Share Units. The Committee may permit a Participant who has been designated to receive an Unrestricted Share award to elect to receive such Unrestricted Share award in the form of Deferred Share Units. 
Any such election must be made on or before December 31 of the calendar year prior to the year the compensation attributable to such award (or any portion of such award) is earned, and shall be irrevocable after such date, and further shall comply with the rules set forth in Section 11.08, which apply to deferral elections, including such rules relating to invalid and valid but incomplete deferral elections. Each “Deferred Share Unit” represents the right to receive a share of Common Stock in the future. At no time shall any assets of the Company be segregated for payment of Deferred Share Units hereunder. Participants who have elected to receive Unrestricted Shares in the form of Deferred Share Units shall at all times have the status of general unsecured creditors of the Company and shall not have any rights in or against specific assets of the Company. The Plan constitutes a mere promise by the Company to make payments on Deferred Share Units in the future. 
After the award of Deferred Share Units to the Participant and prior to the time that shares of Common Stock are transferred to the Participant pursuant to Section 13.04, within sixty (60) days after the date of payment of a dividend by the Company on its shares of Common Stock, the Participant shall be credited with “dividend equivalents” with respect to each outstanding Deferred Share Unit in an amount equal to the amount the Participant would have received as dividends if the Deferred Share Units were actual shares of Common Stock. Such dividend equivalents will be converted into additional Deferred Share Units based on the value of the Common Stock on the dividend payment date, in accordance with the procedures established by the Committee, and paid at the same time and in the same manner as the underlying Deferred Share Units. 
13.04. Payment of Deferred Share Units. Deferred Share Units are payable solely in shares of unrestricted Common Stock, and shall be paid in accordance with the terms of delivery under Section 13.03 and this Section 13.04. Shares applicable to such awards shall be transferred to the Participant at the time and in the form as elected by the Participant and as set forth in the terms and conditions applicable to such awards, which shall be either in a single payment or in up to ten (10) installment payments. 
If a lump sum distribution is elected, the payment shall be made on the date provided in, and in accordance with, the terms and conditions applicable to the award. If installment distributions are elected, the initial installment shall be paid on the date provided in, and in accordance with, the terms and conditions applicable to the award. Subsequent installments shall be made on each anniversary of the initial installment and shall continue for the duration of the selected distribution period. If the Participant dies prior to the time all shares have been distributed, distribution shall be made to the Participant's beneficiary or estate on the payment date provided in, and in accordance with, the terms and conditions applicable to the award. A Participant shall have no rights as a shareholder with respect to Deferred Share Units until such time, if any, as shares of Common Stock are transferred to the Participant (or the Participant's beneficiary or estate, if applicable). Notwithstanding the above, if the Participant is a specified employee and is entitled to receive payment upon Termination of Employment or on a date determinable based on the date of Termination of Employment (and not a pre-determined fixed date or schedule), then, except in the event of the Participant's death after such Termination of Employment, such payment (or in the case of installments, the first payment) shall be delayed by at least 

six (6) months after the date of such Participant's Termination of Employment, to the extent required by Code Section 409A and the regulations thereunder; in this event, subsequent installment payments shall occur on the anniversary of the first delayed installment payment. 
Provided that the terms and conditions applicable to a Deferred Share Unit award permit it, a Participant may change the Participant's distribution election, provided such change in distribution election shall comply with the procedures and rules set forth in Section 11.09 which apply to change in distribution elections, including such rules relating to invalid and valid but incomplete change in distribution elections. 
ARTICLE XIV 
CLAWBACK 
14.01. Clawback. If the Committee determines in good faith either that: (i) if required by applicable law with respect to a Participant or (ii) (x) a Participant engaged in fraudulent conduct or activities relating to the Company, (y) a Participant has knowledge of such conduct or activities or (z) a Participant, based upon the Participant's position, duties or responsibilities, should have had knowledge of such conduct or activities, the Committee shall have the power and authority under the Plan to terminate without payment all outstanding awards under the Plan. If required by applicable law with respect to a Participant or if a Participant described in (ii) above has received any compensation pursuant to an award granted under the Plan that is based on or results from such conduct or activities, such Participant shall promptly reimburse to the Company a sum equal to either an amount required by such law or the amount of such compensation paid in respect of the year in which such conduct or activities occurred, as applicable. 
ARTICLE XV 
ADJUSTMENTS; REPRICING 
15.01. Adjustments. Notwithstanding any other provision of the Plan, the Committee shall make or provide for such adjustments to the Plan, to the number and class of shares available thereunder or to any outstanding Options, Stock Appreciation Rights, RSUs, Performance Units or other awards as it shall deem appropriate to prevent dilution or enlargement of rights, including adjustments in the event of changes in the number of shares of outstanding Common Stock by reason of stock dividends, extraordinary cash dividends, split-ups, recapitalizations, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations, liquidations and the like. However, any such adjustment with respect to Options and Stock Appreciation Rights shall satisfy the requirements of Reg. §1.409A-1(b)(5)(v)(D) and shall otherwise ensure that such awards continue to be exempt from Code Section 409A, and any such adjustment to awards that are subject to Code Section 409A, including RSUs and Performance Units, shall be made to the extent compliant with Code Section 409A and the regulations thereunder. 
15.02. Repricing. Except as provided above in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), the terms of outstanding awards may not be amended to reduce the exercise price of outstanding Options or Stock Appreciation Rights or cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other awards or Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights without stockholder approval. 
ARTICLE XVI 
AMENDMENT AND TERMINATION 
16.01. Amendment and Termination. The Board may suspend, terminate, modify or amend the Plan, provided that any amendment that would constitute a “material revision” of the Plan within the meaning of New York Stock Exchange Rule 303A(8) shall be subject to the approval of the Company's stockholders. If the Plan is terminated, the terms of the Plan shall, notwithstanding such termination, continue to apply to awards granted prior to such termination. No suspension, termination, modification or amendment of the Plan may, without the consent of the Participant to whom an award shall theretofore have been granted, materially adversely affect the rights of such Participant under such award, except to the extent any such action is undertaken to cause the Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations. 

ARTICLE XVII 
WRITTEN AGREEMENT 
17.01. Written Agreements. Each award of Options, Stock Appreciation Rights, RSUs, Performance Units and Unrestricted Shares shall be evidenced by a written agreement, executed by the Participant and the Company, and containing such restrictions, terms and conditions, if any, as the Committee may require. In the event of any conflict between a written agreement and the Plan, the terms of the Plan shall govern. 
ARTICLE XVIII
CHANGE IN CONTROL 
18.01. Definition of Change in Control. For purposes of this Plan, a “Change in Control” means, and shall be deemed to have occurred upon, the occurrence of any of the following events: 
		
	(a)
	Any Person (other than an Excluded Person) becomes, together with all “affiliates” and “associates” (each as defined under Rule 12b-2 of the Act) the “beneficial owner” (as defined under Rule 13d-3 of the Act) of securities representing 33% or more of the combined voting power of the Voting Stock of the Company then outstanding, unless such Person becomes the “beneficial owner” of 33% or more of the combined voting power of such Voting Stock then outstanding solely as a result of an acquisition of such Voting Stock by the Company which, by reducing the Voting Stock of the Company outstanding, increases the proportionate Voting Stock beneficially owned by such Person (together with all “affiliates” and “associates” of such Person) to 33% or more of the combined voting power of the Voting Stock of the Company then outstanding; provided that if a Person shall become the “beneficial owner” of 33% or more of the combined voting power of the Voting Stock of the Company then outstanding by reason of such Voting Stock acquisition by the Company and shall thereafter become the “beneficial owner” of any additional Voting Stock of the Company which causes the proportionate voting power of Voting Stock beneficially owned by such Person to increase to 33% or more of the combined voting power of the Voting Stock of the Company then outstanding, such Person shall, upon becoming the “beneficial owner” of such additional Voting Stock of the Company, be deemed to have become the “beneficial owner” of 33% or more of the combined voting power of the Voting Stock then outstanding other than solely as a result of such Voting Stock acquisition by the Company; 

		
	(b)
	During any period of 24 consecutive months, individuals who at the beginning of such period constitute the Board of Directors of the Company (and any new Director, whose election by such Board or nomination for election by the stockholders of the Company was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was so approved), cease for any reason to constitute a majority of Directors then constituting such Board; 

		
	(c)
	A reorganization, merger or consolidation of the Company is consummated, in each case, unless, immediately following such reorganization, merger or consolidation, (i) more than 50% of, respectively, the then-outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation and the combined voting power of the then-outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the “beneficial owners” of the Voting Stock of the Company outstanding immediately prior to such reorganization, merger or consolidation, (ii) no Person (but excluding for this purpose any Excluded Person and any Person beneficially owning, immediately prior to such reorganization, merger or consolidation, directly or indirectly, 33% or more of the voting power of the outstanding Voting Stock of the Company) beneficially owns, directly or indirectly, 33% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation or the combined voting power of the then-outstanding voting securities of such corporation entitled to vote generally in the election of directors and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Board of Directors of the Company at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation; or 

		
	(d)
	The consummation of (i) a complete liquidation or dissolution of the Company or (ii) the sale or other disposition of all or substantially all of the assets of the Company, other than to any corporation with respect to which, immediately following such sale or other disposition, (A) more than 50% of, respectively, the then-outstanding shares of common stock of such corporation and the combined voting power of the then-outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the “beneficial owners” of the Voting Stock of the Company outstanding immediately prior to such sale or other disposition of assets, (B) no Person (but excluding for this purpose any Excluded Person and any Person beneficially owning, immediately prior to such sale or other disposition, directly or indirectly, 33% or more of the voting power of the outstanding Voting Stock of the Company) beneficially owns, 

directly or indirectly, 33% or more of, respectively, the then-outstanding shares of common stock of such corporation or the combined voting power of the then-outstanding voting securities of such corporation entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors of such corporation were members of the Board of Directors of the Company at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition of assets of the Company. 
Notwithstanding the foregoing, in no event shall a “Change in Control” be deemed to have occurred (i) as a result of the formation of a Holding Company or (ii) with respect to a Participant, if the Participant is part of a “group,” within the meaning of Section 13(d)(3) of the Act as in effect on the Plan's effective date, which consummates the Change in Control transaction. In addition, for purposes of the definition of “Change in Control” a Person engaged in business as an underwriter of securities shall not be deemed to be the “beneficial owner” of, or to “beneficially own,” any securities acquired through such Person's participation in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of such acquisition. “Excluded Person” shall mean (i) the Company; (ii) any of the Company's subsidiaries; (iii) any Holding Company; (iv) any employee benefit plan of the Company, any of its subsidiaries or a Holding Company; or (v) any Person organized, appointed or established by the Company, any of its subsidiaries or a Holding Company for or pursuant to the terms of any plan described in clause (iv). “Person” shall mean any individual composition, partnership, limited liability company, associations, trust or other entity or organization. “Holding Company” shall mean an entity that becomes a holding company for the Company or its businesses as a part of any reorganization, merger, consolidation or other transaction, provided that the outstanding shares of common stock of such entity and the combined voting power of the then-outstanding voting securities of such entity entitled to vote generally in the election of directors is, immediately after such reorganization, merger, consolidation or other transaction, beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the “beneficial owners,” respectively, of the Voting Stock of the Company outstanding immediately prior to such reorganization, merger, consolidation or other transaction in substantially the same proportions as their ownership, immediately prior to such reorganization, merger, consolidation or other transaction, of such outstanding Voting Stock of the Company. “Voting Stock” shall mean securities of the Company entitled to vote generally in the election of the Company's Board of Directors. 
18.02. Effect of Change in Control. In the event that a Participant's employment or service is terminated by the Company other than for cause or, to the extent provided in an employment agreement between the Company and a Participant, a Participant resigns for Good Reason (as defined in the Participant's employment agreement), in either case during the 24-month period beginning on the date of a Change in Control, (i) Options and Stock Appreciation Rights granted to such Participant which are not yet exercisable shall become fully exercisable; and (ii) any restrictions applicable to any RSUs awarded to such Participant shall be deemed to have been satisfied at target and the Restricted Period, if any, applicable to such RSUs held by such Participant shall be deemed to have expired. Notwithstanding the foregoing, or the provisions of Section 11.06, if the accelerated settlement of any RSU would cause the application of additional taxes under Code Section 409A, such RSU will be settled on the date it would otherwise have been settled in the absence of a Change in Control, unless the transaction constituting the Change in Control falls within the definition of a “change in control event” within the meaning of Code Section 409A and the regulations thereunder. 
ARTICLE XIX
MISCELLANEOUS PROVISIONS 
19.01. Definitions: Fair Market Value and Cause. “Fair Market Value,” for purposes of this Plan, shall be the closing price of the Common Stock as reported on the principal exchange on which the shares are listed for the date on which the grant, exercise or other transaction occurs, or if there were no sales on such date, the most recent prior date on which there were sales. “Cause,” for purposes of this Plan, shall mean that the Participant (1) was grossly negligent in the performance of the Participant's duties with the Company (other than a failure resulting from the Participant's incapacity due to physical or mental illness); (2) has plead “guilty” or “no contest” to or has been convicted of an act which is defined as a felony under federal or state law; or (3) engaged in misconduct in bad faith which could reasonably be expected to materially harm the Company's business or its reputation. The Participant shall be given written notice by the Company of a termination for Cause, which shall state in detail the particular act or acts or failures to act that constitute the grounds on which the termination for Cause is based. 
19.02 Awards to Participants Outside the United States. The Committee may modify the terms of any outstanding or new award under the Plan granted to a Participant who is, at the time of grant or during the term of the award, resident or primarily employed outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that such award shall conform to laws, regulations and customs of the country in which the Participant is then resident or primarily employed, or so that the value and other benefits of the award to the Participant, as affected by foreign tax laws and other restrictions applicable as a result of the Participant's residence or employment abroad, shall be comparable to the value of such an award to a Participant who is resident or primarily employed in the United States. An award may be modified under this Section 19.03 in a manner that is inconsistent with the express terms of the Plan, so long as such modifications will not contravene any applicable law or regulation 
19.03. Tax Withholding. The Company shall have the right to require Participants or their beneficiaries or legal representatives 

to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements, or to deduct from all payments under this Plan amounts sufficient to satisfy all withholding tax requirements. Whenever payments under the Plan are to be made to a Participant in cash, such payments shall be net of any amounts sufficient to satisfy all federal, state and local withholding tax requirements. The Committee may, in its discretion, permit a Participant to satisfy the Participant's tax withholding obligation either by (i) surrendering shares of Common Stock owned by the Participant or (ii) having the Company withhold from shares of Common Stock otherwise deliverable to the Participant. Shares of Common Stock surrendered or withheld shall be valued at their Fair Market Value as of the date on which income is required to be recognized for income tax purposes. In the case of an award of Incentive Stock Options, the foregoing right shall be deemed to be provided to the Participant at the time of such award. 
19.04. Compliance With Section 16(b) and Code Section 162(m). In the case of Participants who are or may be subject to Section 16 of the Act, it is the intent of the Company that the Plan and any award granted hereunder satisfy and be interpreted in a manner that satisfies the applicable requirements of Rule 16b-3 under the Act, so that such persons will be entitled to the benefits of Rule 16b-3 under the Act or other exemptive rules under Section 16 of the Act and will not be subjected to liability thereunder. If any provision of the Plan or any award would otherwise conflict with the intent expressed herein, that provision, to the extent possible, shall be interpreted and deemed amended so as to avoid such conflict. To the extent of any remaining irreconcilable conflict with such intent, such provision shall be deemed void as applicable to Participants who are or may be subject to Section 16 of the Act. If any award hereunder is intended to qualify as performance-based for purposes of Code Section 162(m), the Committee shall not exercise any discretion to increase the payment under such award except to the extent permitted by Code Section 162(m) and the regulations thereunder. 
19.05. Successors. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and businesses of the Company. In the event of any of the foregoing, the Committee may, at its discretion prior to the consummation of the transaction, cancel, offer to purchase, exchange, adjust or modify any outstanding awards, at such time and in such manner as the Committee deems appropriate and in accordance with applicable law and the provisions of Article XV. 
19.06. General Creditor Status. Participants shall have no right, title or interest whatsoever in or to any investments which the Participant may make to aid it in meeting its obligations under the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant or beneficiary or legal representative of such Participant. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts except as expressly set forth in the Plan. 
19.07. No Right to Employment. Nothing in the Plan or in any written agreement entered into pursuant to Article XVII, nor the grant of any award, shall confer upon any Participant any right to continue in the employ of the Company or a subsidiary or to be entitled to any remuneration or benefits not set forth in the Plan or such written agreement or interfere with or limit the right of the Company or a subsidiary to modify the terms of or terminate such Participant's employment at any time. 
19.08. No Rights to Awards; No Rights to Additional Payments. No Participant shall have any claim to be granted any award under the Plan, and there is no obligation for uniformity of treatment of Participants. All grants of awards and deliveries of Common Stock, cash or other property under the Plan shall constitute a special discretionary incentive payment to the Participant and shall not be required to be taken into account in computing any contributions to or any benefits under any retirement, profit-sharing, severance or other benefit plan of the Company or any subsidiary or affiliate, unless the Committee expressly provides otherwise in writing. 
19.09. Notices. Notices required or permitted to be made under the Plan shall be sufficiently made if sent by registered or certified mail addressed (a) to the Participant at the Participant's address set forth in the books and records of the Company or its subsidiaries or (b) to the Company or the Committee at the principal office of the Company. 
19.10. Severability. In the event that any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
19.11. Governing Law. To the extent not preempted by federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware. 
    
 19.12. Term of Plan. Unless earlier terminated pursuant to Article XVI hereof, the Plan shall terminate on May 25, 2021.

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