Document:

Document

Exhibit 10.3
PELOTON INTERACTIVE, INC.

2019 EQUITY INCENTIVE PLAN

1.PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of the Company, and any Parents, Subsidiaries and Affiliates that exist now or in the future, by offering them an opportunity to participate in the Company’s future performance through the grant of Awards. Capitalized terms not defined elsewhere in the text are defined in Section 28.

2.SHARES SUBJECT TO THE PLAN.

2.1.Number of Shares Available. Subject to Section 2.4, Section 2.6 and Section 21 and any other applicable provisions hereof, the total number of Shares reserved and available for grant and issuance pursuant to this Plan as of the date of adoption of the Plan by the Board, is 40,986,767 Shares, plus (a) any reserved shares not issued or subject to outstanding grants under the Company’s 2015 Stock Plan (the “Prior Plan”) on the Effective Date, (b) shares that are subject to stock options or other awards granted under the Prior Plan that cease to be subject to such stock options or other awards by forfeiture or otherwise after the Effective Date, (c) shares issued under the Prior Plan before or after the Effective Date pursuant to the exercise of stock options that are, after the Effective Date, forfeited, (d) shares issued under the Prior Plan that are repurchased by the Company at the original issue price and (e) shares that are subject to stock options or other awards under the Prior Plan that are used to pay the exercise price of an option or withheld to satisfy the tax withholding obligations related to any award. Any of the Company’s Class B common stock that becomes available for grant pursuant this Section 2.1 will be issued only as Shares.

2.2.Lapsed, Returned Awards. Shares subject to Awards, and Shares issued under the Plan under any Award, will again be available for grant and issuance in connection with subsequent Awards under this Plan to the extent such Shares: (a) are subject to issuance upon exercise of an Option or SAR granted under this Plan but which cease to be subject to the Option or SAR for any reason other than exercise of the Option or SAR; (b) are subject to Awards granted under this Plan that are forfeited or are repurchased by the Company at the original issue price; (c) are subject to Awards granted under this Plan that otherwise terminate without such Shares being issued; or (d) are surrendered pursuant to Exchange Program. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan. Shares used to pay the exercise price of an Award or withheld to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the Plan. For the avoidance of doubt, Shares that otherwise become available for grant and issuance because of the provisions of this Section
2.2 shall not include Shares subject to Awards that initially became available because of the substitution clause in Section 21.2 hereof.

2.3.Minimum Share Reserve. At all times the Company will reserve and keep available a sufficient number of Shares as will be required to satisfy the requirements of all outstanding Awards granted under this Plan.

2.4.Automatic Share Reserve Increase. The number of Shares available for grant and issuance under the Plan will be increased on July 1 of 2020 through 2029 by the lesser of (a) five (5%) of all classes of the Company’s common stock outstanding on each June 30 immediately prior to the date of increase or (b) such number of Shares determined by the Board.
2.5.ISO Limitation. No more than 150,000,000 Shares shall be issued pursuant to the exercise of ISOs (as defined below) under the Plan.

2.6.Adjustment of Shares. If the number of outstanding Shares is changed by a stock dividend, extraordinary dividend or distribution (whether in cash, shares or other property, other than a regular cash dividend) recapitalization, stock split, reverse stock split, subdivision, combination, consolidation, reclassification, spin-off or similar change in the capital structure of the Company, without consideration, then (a) the number and class of Shares reserved for issuance and future grant under the Plan set forth in 

Section 2.1, including shares reserved under sub-clauses (a)-(e) of Section 2.1, (b) the Exercise Prices of and number and class of Shares subject to outstanding Options and SARs, (c) the number and class of Shares subject to other outstanding Awards and (d) the maximum number and class of Shares that may be issued as ISOs set forth in Section 2.5 will be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and in compliance with applicable securities laws; provided that fractions of a Share will not be issued.

If, by reason of an adjustment pursuant to this Section 2.6, a Participant’s Award Agreement or other agreement related to any Award or the Shares subject to such Award covers additional or different shares of stock or securities, then such additional or different shares, and the Award Agreement or such other agreement in respect thereof, will be subject to all of the terms, conditions and restrictions which were applicable to the Award or the Shares subject to such Award prior to such adjustment.

3.ELIGIBILITY. ISOs may be granted only to Employees. All other Awards may be granted to Employees, Consultants, and Non-Employee Directors; provided such Consultants and Non-Employee Directors render bona fide services not in connection with the offer and sale of securities in a capital- raising transaction.

4.ADMINISTRATION.

4.1.Committee Composition; Authority. This Plan will be administered by the Committee or by the Board acting as the Committee. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this Plan, except, however, the Board will establish the terms for the grant of an Award to Non-Employee Directors. The Committee will have the authority to:

(a)construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan;

(b)prescribe, amend and rescind rules and regulations relating to this Plan or any
Award;

(c)select persons to receive Awards;

(d)determine the form and terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the Exercise Price, the time or times when Awards may vest and be exercised (which may be based on performance criteria) or settled, any vesting acceleration or waiver of forfeiture restrictions, the method to satisfy tax withholding obligations or any other tax liability legally due and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Committee will determine;

(e)determine the number of Shares or other consideration subject to Awards;
(f) determine the Fair Market Value in good faith and interpret the applicable provisions of this Plan and the definition of Fair Market Value in connection with circumstances that impact the Fair Market Value, if necessary;

(g)determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or any other incentive or compensation plan of the Company or any Parent, Subsidiary or Affiliate;

(h)grant waivers of Plan or Award conditions;

(i)determine the vesting, exercisability and payment of Awards;

(j)correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement;

			
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(k)determine whether an Award has been vested and/or earned;

(l)determine the terms and conditions of any, and to institute any Exchange
Program;

(m)reduce, waive or modify any criteria with respect to Performance Factors;

(n)adjust Performance Factors;

(o)adopt terms and conditions, rules and/or procedures (including the adoption of any subplan under this Plan) relating to the operation and administration of the Plan to accommodate requirements of local law and procedures outside of the United States or to qualify Awards for special tax treatment under laws of jurisdictions other than the United States;

(p)exercise discretion with respect to Performance Awards;

(q)make all other determinations necessary or advisable for the administration of
this Plan; and

(r)delegate any of the foregoing to a subcommittee or to one or more executive officers pursuant to a specific delegation as permitted by applicable law.

4.1.Committee Interpretation and Discretion. Any determination made by the Committee with respect to any Award will be made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of the Plan or Award, at any later time, and such determination will be final and binding on the Company and all persons having an interest in any Award under the Plan. Any dispute regarding the interpretation of the Plan or any Award Agreement will be submitted by the Participant or Company to the Committee for review. The resolution of such a dispute by the Committee will be final and binding on the Company and the Participant. The Committee may delegate to one or more executive officers the authority to review and resolve disputes with respect to Awards held by Participants who are not Insiders, and such resolution will be final and binding on the Company and the Participant.

4.2.Section 16 of the Exchange Act. Awards granted to Participants who are subject to Section 16 of the Exchange Act must be approved by two or more “non-employee directors” (as defined in the regulations promulgated under Section 16 of the Exchange Act).

4.3.Documentation. The Award Agreement for a given Award, the Plan and any other documents may be delivered to, and accepted by, a Participant or any other person in any manner (including electronic distribution or posting) that meets applicable legal requirements.

4.4.Foreign Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws and practices in other countries in which the Company and its Subsidiaries or Affiliates operate or have Employees or other individuals eligible for Awards, the Committee, in its sole discretion, will have the power and authority to: (a) determine which Subsidiaries and Affiliates will be covered by the Plan; (b) determine which individuals outside the United States are eligible to participate in the Plan; (c) modify the terms and conditions of any Award granted to individuals outside the United States or foreign nationals to comply with applicable foreign laws, policies, customs and practices; (d) establish subplans and modify exercise procedures, vesting conditions, and other terms and procedures, to the extent the Committee determines such actions to be necessary or advisable (and such subplans and/or modifications will be attached to this Plan as appendices, if necessary); provided, however, that no such subplans and/or modifications will increase the share limitations contained in Section 2.1 hereof; and (e) take any action, before or after an Award is made, that the Committee determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no Awards will be granted, that would violate the Exchange Act or any other 
			
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applicable United States securities law, the Code, or any other applicable United States governing statute or law.

5.OPTIONS. An Option is the right but not the obligation to purchase a Share, subject to certain conditions, if applicable. The Committee may grant Options to eligible Employees, Consultants and Directors and will determine whether such Options will be Incentive Stock Options within the meaning of the Code (“ISOs”) or Nonqualified Stock Options (“NSOs”), the number of Shares subject to the Option, the Exercise Price of the Option, the period during which the Option may vest and be exercised, and all other terms and conditions of the Option, subject to the following terms of this section.

5.1.Option Grant. Each Option granted under this Plan will identify the Option as an ISO or an NSO. An Option may be, but need not be, awarded upon satisfaction of such Performance Factors during any Performance Period as are set out in advance in the Participant’s individual Award Agreement. If the Option is being earned upon the satisfaction of Performance Factors, then the Committee will: (a) determine the nature, length and starting date of any Performance Period for each Option; and (b) select from among the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect to Options that are subject to different performance goals and other criteria.

5.2.Date of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such Option, or a specified future date. The Award Agreement will be delivered to the Participant within a reasonable time after the granting of the Option.

5.3.Exercise Period. Options may be vested and exercisable within the times or upon the conditions as set forth in the Award Agreement governing such Option; provided, however, that no Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided further that no ISO granted to a person who, at the time the ISO is granted, directly or by attribution owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent or Subsidiary (“Ten Percent Stockholder”) will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines.
5.4.Exercise Price. The Exercise Price of an Option will be determined by the Committee when the Option is granted; provided that: (a) the Exercise Price of an Option will be not less than one hundred percent (100%) of the Fair Market Value of the Shares on the date of grant and (b) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less than one hundred ten percent (110%) of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with Section 11 and the Award Agreement and in accordance with any procedures established by the Company.

5.5.Method of Exercise. Any Option granted hereunder will be vested and exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Committee and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An Option will be deemed exercised when the Company receives: (a) notice of exercise (in such form as the Committee may specify from time to time) from the person entitled to exercise the Option (and/or via electronic execution through the authorized third-party administrator), and (b) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Committee and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 2.6 of the Plan. Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

			
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5.6.Termination of Service. If the Participant’s Service terminates for any reason except for Cause or the Participant’s death or Disability, then the Participant may exercise such Participant’s Options only to the extent that such Options would have been exercisable by the Participant on the date Participant’s Service terminates no later than three (3) months after the date Participant’s Service terminates (or such shorter or longer time period as may be determined by the Committee, with any exercise beyond three (3) months after the date Participant’s employment terminates deemed to be the exercise of an NSO), but in any event no later than the expiration date of the Options.

(a)Death. If the Participant’s Service terminates because of the Participant’s death (or the Participant dies within three (3) months after Participant’s Service terminates other than for Cause or because of the Participant’s Disability), then the Participant’s Options may be exercised only to the extent that such Options would have been exercisable by the Participant on the date Participant’s Service terminates and must be exercised by the Participant’s legal representative, or authorized assignee, no later than twelve (12) months after the date Participant’s Service terminates (or such shorter time period or longer time period as may be determined by the Committee), but in any event no later than the expiration date of the Options.

(b)Disability. If the Participant’s Service terminates because of the Participant’s Disability, then the Participant’s Options may be exercised only to the extent that such Options would have been exercisable by the Participant on the date Participant’s Service terminates and must be exercised by the Participant (or the Participant’s legal representative or authorized assignee) no later than twelve (12) months after the date Participant’s Service terminates (or such shorter or longer time period as may be determined by the Committee, with any exercise beyond (a) three (3) months after the date Participant’s employment terminates when the termination of Service is for a Disability that is not a “permanent and total disability” as defined in Section 22(e)(3) of the Code, or (b) twelve (12) months after the date Participant’s employment terminates when the termination of Service is for a Disability that is a “permanent and total disability” as defined in Section 22(e)(3) of the Code, deemed to be exercise of an NSO), but in any event no later than the expiration date of the Options.

(c)Cause. If the Participant’s Service terminates for Cause, then Participant’s Options (whether or not vested) will expire on the date of termination of Participant’s Service if the Committee has reasonably determined in good faith that such cessation of Services has resulted in connection with an act or failure to act constituting Cause (or such Participant’s Services could have been terminated for Cause (without regard to the lapsing of any required notice or cure periods in connection therewith) at the time such Participant terminated Services), or at such later time and on such conditions as are determined by the Committee, but in any event no later than the expiration date of the Options. Unless otherwise provided in an employment agreement, Award Agreement, or other applicable agreement, Cause will have the meaning set forth in the Plan.

5.7.Limitations on Exercise. The Committee may specify a minimum number of Shares that may be purchased on any exercise of an Option, provided that such minimum number will not prevent any Participant from exercising the Option for the full number of Shares for which it is then exercisable.

5.8.Limitations on ISOs. With respect to Awards granted as ISOs, to the extent that the aggregate Fair Market Value of the Shares with respect to which such ISOs are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as NSOs. For purposes of this Section 5.8, ISOs will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted. In the event that the Code or the regulations promulgated thereunder are amended after the Effective Date to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISOs, such different limit will be automatically incorporated herein and will apply to any Options granted after the effective date of such amendment.

5.9.Modification, Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefor, provided that any such action may not, without the written consent of a Participant, impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code. Subject to Section 18 of 
			
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this Plan, by written notice to affected Participants, the Committee may reduce the Exercise Price of outstanding Options without the consent of such Participants; provided, however, that the Exercise Price may not be reduced below the Fair Market Value on the date the action is taken to reduce the Exercise Price.

5.10.No Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan relating to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant affected, to disqualify any ISO under Section 422 of the Code.

6.RESTRICTED STOCK AWARDS. A Restricted Stock Award is an offer by the Company to sell to an eligible Employee, Consultant, or Director Shares that are subject to restrictions (“Restricted Stock”). The Committee will determine to whom an offer will be made, the number of Shares the Participant may purchase, the Purchase Price, the restrictions under which the Shares will be subject and all other terms and conditions of the Restricted Stock Award, subject to the Plan.

7.RESTRICTED STOCK PURCHASE AGREEMENT. All purchases under a Restricted Stock Award will be evidenced by an Award Agreement. Except as may otherwise be provided in an Award Agreement, a Participant accepts a Restricted Stock Award by signing and delivering to the Company an Award Agreement with full payment of the Purchase Price, within thirty (30) days from the date the Award Agreement was delivered to the Participant. If the Participant does not accept such Award within thirty (30) days, then the offer of such Restricted Stock Award will terminate, unless the Committee determines otherwise.

7.1.Purchase Price. The Purchase Price for a Restricted Stock Award will be determined by the Committee and may be less than Fair Market Value on the date the Restricted Stock Award is granted. Payment of the Purchase Price must be made in accordance with Section 11 of the Plan, and the Award Agreement and in accordance with any procedures established by the Company.

7.2.Terms of Restricted Stock Awards. Restricted Stock Awards will be subject to such restrictions as the Committee may impose or are required by law. These restrictions may be based on completion of a specified number of years of service with the Company or upon completion of Performance Factors, if any, during any Performance Period as set out in advance in the Participant’s Award Agreement. Prior to the grant of a Restricted Stock Award, the Committee shall: (a) determine the nature, length and starting date of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure performance goals, if any; and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and a Participant may participate simultaneously with respect to Restricted Stock Awards that are subject to different Performance Periods and having different performance goals and other criteria.

7.3.Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such date Participant’s Service terminates (unless determined otherwise by the Committee).

8.STOCK BONUS AWARDS. A Stock Bonus Award is an award to an eligible Employee, Consultant, or Director of Shares for Services to be rendered or for past Services already rendered to the Company or any Parent, Subsidiary or Affiliate. All Stock Bonus Awards shall be made pursuant to an Award Agreement. No payment from the Participant will be required for Shares awarded pursuant to a Stock Bonus Award.

8.1.Terms of Stock Bonus Awards. The Committee will determine the number of Shares to be awarded to the Participant under a Stock Bonus Award and any restrictions thereon. These restrictions may be based upon completion of a specified number of years of service with the Company or upon satisfaction of performance goals based on Performance Factors during any Performance Period as set out in advance in the Participant’s Stock Bonus Agreement. Prior to the grant of any Stock Bonus Award the Committee shall: (a) determine the nature, length and starting date of any Performance Period for the Stock Bonus Award; (b) select from among the Performance Factors to be used to measure performance goals; and (c) determine the number of Shares that may be awarded to the Participant. Performance Periods may overlap and a Participant may participate simultaneously with respect to Stock Bonus 
			
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Awards that are subject to different Performance Periods and different performance goals and other criteria.

8.2.Form of Payment to Participant. Payment may be made in the form of cash, whole Shares, or a combination thereof, based on the Fair Market Value of the Shares earned under a Stock Bonus Award on the date of payment, as determined in the sole discretion of the Committee.
8.3.Termination of Service. Except as may be set forth in the Participnt’s Award Agreement, vesting ceases on such date Participant’s Service terminates (unless determined otherwise by the Committee).

9.STOCK APPRECIATION RIGHTS. A Stock Appreciation Right (“SAR”) is an award to an eligible Employee, Consultant, or Director that may be settled in cash, or Shares (which may consist of Restricted Stock), having a value equal to (a) the difference between the Fair Market Value on the date of exercise over the Exercise Price multiplied by (b) the number of Shares with respect to which the SAR is being settled (subject to any maximum number of Shares that may be issuable as specified in an Award Agreement). All SARs shall be made pursuant to an Award Agreement.
9.1.Terms of SARs. The Committee will determine the terms of each SAR including, without limitation: (a) the number of Shares subject to the SAR; (b) the Exercise Price and the time or times during which the SAR may be settled; (c) the consideration to be distributed on settlement of the SAR; and (d) the effect of the Participant’s termination of Service on each SAR. The Exercise Price of the SAR will be determined by the Committee when the SAR is granted, and may not be less than Fair Market Value. A SAR may be awarded upon satisfaction of Performance Factors, if any, during any Performance Period as are set out in advance in the Participant’s individual Award Agreement. If the SAR is being earned upon the satisfaction of Performance Factors, then the Committee will: (x) determine the nature, length and starting date of any Performance Period for each SAR; and (y) select from among the Performance Factors to be used to measure the performance, if any. Performance Periods may overlap and Participants may participate simultaneously with respect to SARs that are subject to different Performance Factors and other criteria.

9.2.Exercise Period and Expiration Date. A SAR will be exercisable within the times or upon the occurrence of events determined by the Committee and set forth in the Award Agreement governing such SAR. The SAR Agreement shall set forth the expiration date; provided that no SAR will be exercisable after the expiration of ten (10) years from the date the SAR is granted. The Committee may also provide for SARs to become exercisable at one time or from time to time, periodically or otherwise (including, without limitation, upon the attainment during a Performance Period of performance goals based on Performance Factors), in such number of Shares or percentage of the Shares subject to the SAR as the Committee determines. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on the date Participant’s Service terminates (unless determined otherwise by the Committee). Notwithstanding the foregoing, the rules of Section 5.6 also will apply to SARs.

9.3.Form of Settlement. Upon exercise of a SAR, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying (a) the difference between the Fair Market Value of a Share on the date of exercise over the Exercise Price; times (b) the number of Shares with respect to which the SAR is exercised. At the discretion of the Committee, the payment from the Company for the SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof. The portion of a SAR being settled may be paid currently or on a deferred basis with such interest, if any, as the Committee determines, provided that the terms of the SAR and any deferral satisfy the requirements of Section 409A of the Code to the extent applicable.

9.4.Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such date Participant’s Service terminates (unless determined otherwise by the Committee).
10.RESTRICTED STOCK UNITS. A Restricted Stock Unit (“RSU”) is an award to an eligible Employee, Consultant, or Director covering a number of Shares that may be settled in cash, or by issuance of those Shares (which may consist of Restricted Stock). All RSUs shall be made pursuant to an Award Agreement.

			
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10.1.Terms of RSUs. The Committee will determine the terms of an RSU including, without limitation: (a) the number of Shares subject to the RSU; (b) the time or times during which the RSU may be settled; (c) the consideration to be distributed on settlement; and (d) the effect of the Participant’s termination of Service on each RSU; provided that no RSU shall have a term longer than ten (10) years. An RSU may be awarded upon satisfaction of such performance goals based on Performance Factors during any Performance Period as are set out in advance in the Participant’s Award Agreement. If the RSU is being earned upon satisfaction of Performance Factors, then the Committee will: (x) determine the nature, length and starting date of any Performance Period for the RSU; (y) select from among the Performance Factors to be used to measure the performance, if any; and (z) determine the number of Shares deemed subject to the RSU. Performance Periods may overlap and Participants may participate simultaneously with respect to RSUs that are subject to different Performance Periods and different performance goals and other criteria.

10.2.Form and Timing of Settlement. Payment of earned RSUs shall be made as soon as practicable after the date(s) determined by the Committee and set forth in the Award Agreement. The Committee, in its sole discretion, may settle earned RSUs in cash, Shares, or a combination of both. The Committee may also permit a Participant to defer payment under a RSU to a date or dates after the RSU is earned provided that the terms of the RSU and any deferral satisfy the requirements of Section 409A of the Code to the extent applicable.

10.3.Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on such date Participant’s Service terminates (unless determined otherwise by the Committee).

11.PERFORMANCE AWARDS. A Performance Award is an award to an eligible Employee, Consultant, or Director of the Company or any Parent, Subsidiary or Affiliate that is based upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee, and may be settled in cash, Shares (which may consist of, without limitation, Restricted Stock), other property, or any combination thereof. Grants of Performance Awards shall be made pursuant to an Award Agreement.

11.1.Performance Awards shall include Performance Shares, Performance Units, and cash- based Awards as set forth in Sections 10.1(a), 10.1(b), and 10.1(c) below.

(a)Performance Shares. The Committee may grant Awards of Performance Shares, designate the Participants to whom Performance Shares are to be awarded and determine the number of Performance Shares and the terms and conditions of each such Award. Performance Shares shall consist of a unit valued by reference to a designated number of Shares, the value of which may be paid to the Participant by delivery of Shares or, if set forth in the instrument evidencing the Award, of such property as the Committee shall determine, including, without limitation, cash, Shares, other property, or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee. The amount to be paid under an Award of Performance Shares may be adjusted on the basis of such further consideration as the Committee shall determine in its sole discretion.
(b)Performance Units. The Committee may grant Awards of Performance Units, designate the Participants to whom Performance Units are to be awarded and determine the number of Performance Units and the terms and conditions of each such Award. Performance Units shall consist of a unit valued by reference to a designated amount of property other than Shares, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including, without limitation, cash, Shares, other property, or any combination thereof, upon the attainment of performance goals, as established by the Committee, and other terms and conditions specified by the Committee.

(c)Cash-Settled Performance Awards. The Committee may grant cash-settled Performance Awards to Participants under the terms of this Plan. Such awards will be based on the attainment of performance goals using the Performance Factors within this Plan that are established by the Committee for the relevant performance period.

11.2.Terms of Performance Awards. Performance Awards will be based on the attainment of performance goals using the Performance Factors within this Plan that are established by the Committee 
			
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for the relevant Performance Period. The Committee will determine, and each Award Agreement shall set forth, the terms of each Performance Award including, without limitation: (a) the amount of any cash bonus, (b) the number of Shares deemed subject to an award of Performance Shares; (c) the Performance Factors and Performance Period that shall determine the time and extent to which each award of Performance Shares shall be settled; (d) the consideration to be distributed on settlement, and (e) the effect of the Participant’s termination of Service on each Performance Award. In establishing Performance Factors and the Performance Period the Committee will: (x) determine the nature, length and starting date of any Performance Period; (y) select from among the Performance Factors to be used; and
(z) determine the number of Shares deemed subject to the award of Performance Shares. Prior to settlement the Committee shall determine the extent to which Performance Awards have been earned. Performance Periods may overlap and Participants may participate simultaneously with respect to Performance Awards that are subject to different Performance Periods and different performance goals and other criteria.

11.3.Termination of Service. Except as may be set forth in the Participant’s Award Agreement, vesting ceases on the date Participant’s Service terminates (unless determined otherwise by the Committee).

12.PAYMENT FOR SHARE PURCHASES. Payment from a Participant for Shares purchased pursuant to this Plan may be made in cash or by check or, where approved for the Participant by the Committee and where permitted by law (and to the extent not otherwise set forth in the applicable Award Agreement):

(a)by cancellation of indebtedness of the Company to the Participant;

(b)by surrender of Shares by the Participant that have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Award will be exercised or settled;

(c)by waiver of compensation due or accrued to the Participant for services rendered or to be rendered to the Company or a Parent or Subsidiary;

(d)by consideration received by the Company pursuant to a broker-assisted or other form of cashless exercise program implemented by the Company in connection with the Plan;

(e)by any combination of the foregoing; or
(f)by any other method of payment as is permitted by applicable law.

13.GRANTS TO NON-EMPLOYEE DIRECTORS.

13.1.Grant and Eligibility. Awards under the Plan may be granted to Non-Employee Directors may be automatically made pursuant to a policy adopted by the Board, or made from time to time as determined in the discretion of the Board.

13.2.Vesting, Exercisability and Settlement. Except as set forth in Section 21, Awards will vest, become exercisable and be settled as determined by the Board. With respect to Options and SARs, the exercise price granted to Non-Employee Directors will not be less than the Fair Market Value of the Shares at the time that such Option or SAR is granted.
13.3.Election to Receive Awards in Lieu of Cash. A Non-Employee Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash or Awards or a combination thereof, if permitted, and as determined, by the Committee. Such Awards shall be issued under the Plan. An election under this Section 12.3 shall be filed with the Company on the form prescribed by the Company.

14.WITHHOLDING TAXES.

14.1.Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under this Plan or a tax event occurs, the Company may require the Participant to remit to the 
			
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Company, or to the Parent, Subsidiary or Affiliate, as applicable, employing the Participant, an amount sufficient to satisfy applicable U.S. federal, state, local and international tax or any other tax or social insurance liability (the “Tax-Related Items”) required to be withheld from the Participant prior to the delivery of Shares pursuant to exercise or settlement of any Award. Whenever payments in satisfaction of Awards granted under this Plan are to be made in cash, such payment will be net of an amount sufficient to satisfy applicable withholding obligations for Tax-Related Items. Unless otherwise determined by the Committee, the Fair Market Value of the Shares will be determined as of the date that the taxes are required to be withheld and such Shares will be valued based on the value of the actual trade or, if there is none, the Fair Market Value of the Shares as of the previous trading day.

14.2.Stock Withholding. The Committee, or its delegate(s), as permitted by applicable law, in its sole discretion and pursuant to such procedures as it may specify from time to time and to limitations of local law, may require or permit a Participant to satisfy such Tax Related Items legally due from the Participant, in whole or in part by (without limitation) (a) paying cash, (b) having the Company withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the Tax-Related Items to be withheld, (c) delivering to the Company already-owned shares having a Fair Market Value equal to the Tax-Related Items to be withheld or (d) withholding from the proceeds of the sale of otherwise deliverable Shares acquired pursuant to an Award either through a voluntary sale or through a mandatory sale arranged by the Company. The Company may withhold or account for these Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to (but not in excess of) the maximum permissible statutory tax rate for the applicable tax jurisdiction, to the extent consistent with applicable laws.

15.TRANSFERABILITY. Unless determined otherwise by the Committee or pursuant to Section 14.2, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution. If the Committee makes an Award transferable, including, without limitation, by instrument to an inter vivos or testamentary trust in which the Awards are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift or by domestic relations order to a Permitted Transferee, such Award will contain such additional terms and conditions as the Committee deems appropriate. All Awards will be exercisable: (a) during the Participant’s lifetime only by the Participant, or the Participant’s guardian or legal representative; (b) after the Participant’s death, by the legal representative of the Participant’s heirs or legatees; and (c) in the case of all awards except ISOs, by a Permitted Transferee.

16.PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.

16.1.Voting and Dividends. No Participant will have any of the rights of a stockholder with respect to any Shares until the Shares are issued to the Participant, except for any Dividend Equivalent Rights permitted by an applicable Award Agreement. Any Dividend Equivalent Rights will be subject to the same vesting or performance conditions as the underlying Award. In addition, the Committee may provide that any Dividend Equivalent Rights permitted by an applicable Award Agreement will be deemed to have been reinvested in additional Shares or otherwise reinvested. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock; provided, further, that the Participant will have no right to such stock dividends or stock distributions with respect to Unvested Shares, and any such dividends or stock distributions will be accrued and paid only at such time, if any, as such Unvested Shares become vested Shares. The Committee, in its discretion, may provide in the Award Agreement evidencing any Award that the Participant will be entitled to Dividend Equivalent Rights with respect to the payment of cash dividends on Shares underlying an Award during the period beginning on the date the Award is granted and ending, with respect to each Share subject to the Award, on the earlier of the date on which the Award is exercised or settled or the date on which it is forfeited provided, that no Dividend Equivalent Right will be paid with respect to the Unvested Shares, and such dividends or stock distributions will be accrued and paid only at such time, if any, as such Unvested Shares become vested Shares. Such Dividend Equivalent Rights, if any, will be credited to the Participant in the form of additional whole Shares as of the date of payment of such cash dividends on Shares.
			
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16.2.Restrictions on Shares. At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) a right to repurchase (a “Right of Repurchase”) a portion of any or all Unvested Shares held by a Participant following such Participant’s termination of Service at any time within ninety (90) days (or such longer or shorter time determined by the Committee) after the later of the date Participant’s Service terminates and the date the Participant purchases Shares under this Plan, for cash and/or cancellation of purchase money indebtedness, at the Participant’s Purchase Price or Exercise Price, as the case may be.

17.CERTIFICATES. All Shares or other securities whether or not certificated, delivered under this Plan will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable U.S. federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted and any non-U.S. exchange controls or securities law restrictions to which the Shares are subject.
18.ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a Participant’s Shares, the Committee may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Participant who is permitted to execute a promissory note as partial or full consideration for the purchase of Shares under this Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased as collateral to secure the payment of the Participant’s obligation to the Company under the promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Participant under the promissory note notwithstanding any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the Shares, the Participant will be required to execute and deliver a written pledge agreement in such form as the Committee will from time to time approve. The Shares purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid.

19.REPRICING; EXCHANGE AND BUYOUT OF AWARDS. Without prior stockholder approval, the Committee may (a) reprice Options or SARs (and where such repricing is a reduction in the Exercise Price of outstanding Options or SARs, the consent of the affected Participants is not required provided written notice is provided to them, notwithstanding any adverse tax consequences to them arising from the repricing), and (b) with the consent of the respective Participants (unless not required pursuant to Section 5.9 of the Plan), pay cash or issue new Awards in exchange for the surrender and cancellation of any, or all, outstanding Awards.
20.SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be
effective unless such Award is in compliance with all applicable U.S. and foreign federal and state securities and exchange control laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and/or (b) completion of any registration or other qualification of such Shares under any state or federal or foreign law or ruling of any governmental body that the Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any foreign or state securities laws, exchange control laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so.

21.NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent, Subsidiary or Affiliate or limit in any way the right of the Company or any Parent, Subsidiary or Affiliate to terminate Participant’s employment or other relationship at any time.
			
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22.CORPORATE TRANSACTIONS.
22.1.Assumption or Replacement of Awards by Successor. In the event of a Corporate Transaction any or all outstanding Awards may be (a) continued by the Company, if the Company is the successor entity; or (b) assumed or substituted by the successor corporation, or a parent or subsidiary of the successor corporation, for substantially equivalent Awards (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction), in each case after taking into account appropriate adjustments for the number and kind of shares and exercise prices. In the event such successor corporation refuses to assume or substitute any Award in accordance with this Section 21, then notwithstanding any other provision in this Plan to the contrary, each such Award shall become fully vested and, as applicable, exercisable and any rights of repurchase or forfeiture restrictions thereon shall lapse, immediately prior to the consummation of the Corporation Transaction. Performance Awards not assumed pursuant to the foregoing shall be deemed earned and vested at 100% of target level, unless otherwise indicated pursuant to the terms and conditions of the applicable Award Agreement.

If an Award vests in lieu of assumption or substitution in connection with a Corporate Transaction as provided above, the Committee will notify the holder of such Award in writing or electronically that such Award will be exercisable for a period of time determined by the Committee in its sole discretion, and such Award will terminate upon the expiration of such period without consideration. Any determinations by the Committee need not treat all outstanding Awards in an identical manner, and shall be final and binding on each applicable Participant.

22.2.Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either; (a) granting an Award under this Plan in substitution of such other company’s award; or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another company, the terms and conditions of such award will remain unchanged (except that the Purchase Price or the Exercise Price, as the case may be, and the number and nature of Shares issuable upon exercise or settlement of any such Award will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option in substitution rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. Substitute Awards will not reduce the number of Shares authorized for grant under the Plan or authorized for grant to a Participant in a calendar year.

22.3.Non-Employee Directors’ Awards. Notwithstanding any provision to the contrary herein, in the event of a Corporate Transaction, the vesting of all Awards granted to Non-Employee Directors will accelerate and such Awards will become exercisable (as applicable) in full prior to the consummation of such event at such times and on such conditions as the Committee determines.

23.ADOPTION AND STOCKHOLDER APPROVAL. This Plan will be submitted for the approval of the Company’s stockholders, consistent with applicable laws, within twelve (12) months before or after the date this Plan is adopted by the Board.

24.TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this Plan will become effective on the Effective Date and will terminate ten (10) years from the date this Plan is adopted by the Board. This Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws of the State of Delaware (excluding its conflict of laws rules).
25.AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate or amend this Plan in any respect, including, without limitation, amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such stockholder approval; provided further, that a Participant’s Award will be governed by the version of this Plan then in effect at the time such Award was granted. No termination or amendment of the Plan or any outstanding Award may adversely affect any then outstanding Award without the consent of the 
			
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Participant, unless such termination or amendment is necessary to comply with applicable law, regulation or rule.

26.NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock awards and bonuses otherwise than under this Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

27.INSIDER TRADING POLICY. Each Participant who receives an Award will comply with any policy adopted by the Company from time to time covering transactions in the Company’s securities by Employees, officers and/or directors of the Company, as well as with any applicable insider trading or market abuse laws to which the Participant may be subject.

28.ALL AWARDS SUBJECT TO COMPANY CLAWBACK OR RECOUPMENT POLICY.
All Awards, subject to applicable law, shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant’s employment or other service with the Company that is applicable to Employees, Directors or other service providers of the Company, and in addition to any other remedies available under such policy and applicable law, may require the cancellation of outstanding Awards and the recoupment of any gains realized with respect to Awards.

29.DEFINITIONS. As used in this Plan, and except as elsewhere defined herein, the following terms will have the following meanings:

29.1.“Affiliate” means any person or entity that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, the Company, including any general partner, managing member, officer or director of the Company, in each case as of the date on which, or at any time during the period for which, the determination of affiliation is being made. For purposes of this definition, the term “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such person or entity, whether through the ownership of voting securities or by contract or otherwise.

29.2.“Award” means any award under the Plan, including any Option, Restricted Stock, Stock Bonus, Stock Appreciation Right, Restricted stock Unit or Performance Award.

29.3.“Award Agreement” means, with respect to each Award, the written or electronic agreement between the Company and the Participant setting forth the terms and conditions of the Award, and country-specific appendix thereto for grants to non-U.S. Participants, which will be in substantially a form (which need not be the same for each Participant) that the Committee (or in the case of Award agreements that are not used for Insiders, the Committee’s delegate(s)) has from time to time approved, and will comply with and be subject to the terms and conditions of this Plan.

29.4.“Board” means the Board of Directors of the Company.

29.5.“Cause” means a determination by the Company (and in the case of Participant who is subject to Section 16 of the Exchange Act, the Committee) that the Participant has committed an act or acts constituting any of the following: (a) dishonesty, fraud, misconduct or negligence in connection with Participant’s duties to the Company, (b) unauthorized disclosure or use of the Company’s confidential or proprietary information, (c) misappropriation of a business opportunity of the Company, (d) materially aiding Company competitor, (e) a felony conviction, (f) failure or refusal to attend to the duties or obligations of the Participant’s position (g) violation or breach of, or failure to comply with, the Company’s code of ethics or conduct, any of the Company’s rules, policies or procedures applicable to the Participant or any agreement in effect between the Company and the Participant or (h) other conduct by such Participant that could be expected to be harmful to the business, interests or reputation of the Company. The determination as to whether Cause for a Participant’s termination exists will be made in good faith by the Company and will be final and binding on the Participant. This definition does not in 
			
	13

any way limit the Company’s or any Parent’s or Subsidiary’s ability to terminate a Participant’s employment or services at any time as provided in Section 20 above. Notwithstanding the foregoing, the foregoing definition of “Cause” may, in part or in whole, be modified or replaced in each individual employment agreement, Award Agreement, or other applicable agreement with any Participant provided that such document specifically supersedes this definition.

29.6.“Code” means the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

29.7.“Committee” means the Compensation Committee of the Board or those persons to whom administration of the Plan, or part of the Plan, has been delegated as permitted by law.

29.8.“Company” means Peloton Interactive, Inc., a Delaware corporation, or any successor corporation.

29.9.“Consultant” means any natural person, including an advisor or independent contractor, engaged by the Company or a Parent, Subsidiary or Affiliate to render services to such entity.

29.10.“Corporate Transaction” means the occurrence of any of the following events: (a) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities; provided, however, that for purposes of this subclause (a) the acquisition of additional securities by any one Person who is considered to own more than fifty percent (50%) of the total voting power of the securities of the Company will not be considered a Corporate Transaction; (b) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; (c) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; (d) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Code wherein the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company) or (e) a change in the effective control of the Company that occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by members of the Board whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purpose of this subclause (e), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Corporate Transaction. For purposes of this definition, Persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. Notwithstanding the foregoing, to the extent that any amount constituting deferred compensation (as defined in Section 409A of the Code) would become payable under this Plan by reason of a Corporate Transaction, such amount will become payable only if the event constituting a Corporate Transaction would also qualify as a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company, each as defined within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and IRS guidance that has been promulgated or may be promulgated thereunder from time to time.

29.11.“Director” means a member of the Board.

29.12.“Disability” means in the case of incentive stock options, total and permanent disability as defined in Section 22(e)(3) of the Code and in the case of other Awards, that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

			
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29.13.“Dividend Equivalent Right” means the right of a Participant, granted at the discretion of the Committee or as otherwise provided by the Plan, to receive a credit for the account of such Participant in an amount equal to the cash, stock or other property dividends in amounts equivalent to cash, stock or other property dividends for each Share represented by an Award held by such Participant.

29.14.“Effective Date” means the day immediately prior to the Company’s IPO Registration Date, subject to approval of the Plan by the Company’s stockholders.

29.15.“Employee” means any person, including officers and Directors, providing services as an employee to the Company or any Parent, Subsidiary or Affiliate. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.

29.16.“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

29.17.“Exchange Program” means a program pursuant to which (a) outstanding Awards are surrendered, cancelled or exchanged for cash, the same type of Award or a different Award (or combination thereof) or (b) the exercise price of an outstanding Award is increased or reduced, each as described in Section 18.

29.18.“Exercise Price” means, with respect to an Option, the price at which a holder may purchase the Shares issuable upon exercise of an Option and with respect to a SAR, the price at which the SAR is granted to the holder thereof.

29.19.“Fair Market Value” means, as of any date, the value of a share of the Company’s common stock determined as follows:
(a)if such common stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities exchange on which the common stock is listed or admitted to trading as reported in The Wall Street Journal or such other source as the Committee deems reliable;

(b)if such common stock is publicly traded but is neither listed nor admitted to trading on a national securities exchange, the average of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal or such other source as the Committee deems reliable;

(c)in the case of an Option or SAR grant made on the IPO Registration Date, the price per share at which Shares are initially offered for sale to the public by the Company’s underwriters in the initial public offering of Shares as set forth in the Company’s final prospectus included within the registration statement on Form S-1 filed with the SEC under the Securities Act; or

(d)by the Board or the Committee in good faith.

29.20.“Insider” means an officer or Director of the Company or any other person whose transactions in the Company’s common stock are subject to Section 16 of the Exchange Act.

29.21.“IPO Registration Date” means the date on which the Company’s registration statement on Form S-1 in connection with its initial public offering of common stock is declared effective by the SEC under the Securities Act.

29.22.“IRS” means the United States Internal Revenue Service.

29.23.“Non-Employee Director” means a Director who is not an Employee of the Company or any Parent or Subsidiary.

29.24.“Option” means an Award as defined in Section 5 and granted under the Plan.

29.25.“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company if each of such corporations other than the Company owns stock 
			
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possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

29.26.“Participant” means a person who holds an Award under this Plan.

29.27.“Performance Award” means an Award as defined in Section 10 and granted under the
Plan.

29.28.“Performance Factors” means any of the factors selected by the Committee and specified in an Award Agreement, from among the following objective or subjective measures, either individually, alternatively or in any combination applied to the Participant, the Company, any business unit or Subsidiary, either individually, alternatively, or in any combination, on a GAAP or non-GAAP basis, and measured, to the extent applicable on an absolute basis or relative to a pre-established target, to determine whether the performance goals established by the Committee with respect to applicable Awards have been satisfied:

(e)Profit Before Tax;
(f)Sales;

(g)Expenses;

(h)Billings;

(i)Revenue;

(j)Net revenue;

(k)Earnings (which may include earnings before interest and taxes, earnings before taxes, net earning, stock-based compensation expenses, depreciation and amortization);

(l)Operating income;

(m)Operating margin;

(n)Operating profit;

(o)Controllable operating profit, or net operating profit;

(p)Net Profit;

(q)Gross margin;

(r)Operating expenses or operating expenses as a percentage of revenue;

(s)Net income;

(t)Earnings per share;

(u)Total stockholder return;

(v)Market share;

(w)Return on assets or net assets;

(x)The Company’s stock price;

(y)Growth in stockholder value relative to a pre-determined index;
			
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(z)Return on equity;

(aa)Return on invested capital;

(ab)Cash Flow (including free cash flow or operating cash flows);

(ac)Balance of cash, cash equivalents and marketable securities;

(ad)Cash conversion cycle; 

(aa)    Economic value added;
 (bb)    Individual confidential business objectives; 
(cc)    Contract awards or backlog;
(dd)    Overhead or other expense reduction; 
(ee)    Credit rating;
(ff)    Completion of an identified special project;

(gg)    Completion of a joint venture or other corporate transaction; 
(hh)    Strategic plan development and implementation;
(ii)    Succession plan development and implementation; 
(jj)    Improvement in workforce diversity;
(kk)    Employee satisfaction; 
(ll)    Employee retention;
(mm)    Customer indicators and/or satisfaction; 
(nn)    New product invention or innovation; (oo)    Research and development expenses;
(pp)    Attainment of research and development milestones; 
(qq)    Improvements in productivity;
(rr)    Bookings;

(ss)    Working-capital targets and changes in working capital;
 (tt)    Attainment of operating goals and employee metrics; and 
(uu)    Any other metric as determined by the Committee.
			
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The Committee may provide for one or more equitable adjustments to the Performance Factors to preserve the Committee’s original intent regarding the Performance Factors at the time of the initial award grant, such as but not limited to, adjustments in recognition of unusual or non-recurring items such as acquisition related activities or changes in applicable accounting rules. It is within the sole discretion of the Committee to make or not make any such equitable adjustments.

29.1.“Performance Period” means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select, over which the attainment of one or more Performance Factors will be measured for the purpose of determining a Participant’s right to, and the payment of, a Performance Award.
29.2. “Performance Share” means an Award as defined in Section 10 and granted under the Plan.

29.3.“Permitted Transferee” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships) of the Employee, any person sharing the Employee’s household (other than a tenant or employee), a trust in which these persons (or the Employee) have more than 50% of the beneficial interest, a foundation in which these persons (or the Employee) control the management of assets, and any other entity in which these persons (or the Employee) own more than 50% of the voting interests.

29.4.“Performance Unit” means an Award as defined in Section 10 and granted under the Plan.

29.5.“Plan” means this Peloton Interactive, Inc. 2019 Equity Incentive Plan.

29.6.“Purchase Price” means the price to be paid for Shares acquired under the Plan, other than Shares acquired upon exercise of an Option or SAR.

29.7.“Restricted Stock Award” means an Award as defined in Section 6 and granted under the Plan (or issued pursuant to the early exercise of an Option).

29.8.“Restricted Stock Unit” means an Award as defined in Section 9 and granted under the Plan.

29.9.“SEC” means the United States Securities and Exchange Commission.

29.10.“Securities Act” means the United States Securities Act of 1933, as amended.

29.11.“Service” means service as an Employee, Consultant, Director or Non-Employee Director, to the Company or a Parent, Subsidiary or Affiliate, subject to such further limitations as may be set forth in the Plan or the applicable Award Agreement. An Employee will not be deemed to have ceased to provide Service in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence approved by the Company; provided, that such leave is for a period of not more than 90 days unless reemployment upon the expiration of such leave is guaranteed by contract or statute. Notwithstanding anything to the contrary, an Employee will not be deemed to have ceased to provide Service if a formal policy adopted from time to time by the Company and issued and promulgated to employees in writing provides otherwise. In the case of any Employee on an approved leave of absence or a reduction in hours worked (for illustrative purposes only, a change in schedule from that of full-time to part-time), the Committee may make such provisions respecting suspension or modification of vesting of the Award while on leave from the employ of the Company or a Parent, Subsidiary or Affiliate or during such change in working hours as it may deem appropriate, except that in no event may an Award be exercised after the expiration of the term set forth in the applicable Award Agreement. In the event of military or other protected leave, if required by applicable laws, vesting will continue for the longest period that vesting continues under any other statutory or Company approved leave of absence and, upon a Participant’s returning from 
			
	18

military leave, he or she will be given vesting credit with respect to Awards to the same extent as would have applied had the Participant continued to provide Service to the Company throughout the leave on the same terms as he or she was providing Service immediately prior to such leave. An Employee will have terminated employment as of the date he or she ceases to provide Service (regardless of whether the termination is in breach of local employment laws or is later found to be invalid) and employment will not be extended by any notice period or garden leave mandated by local law, provided however, a change in status from an Employee to a Consultant or a Non-Employee Director (or vice versa) will not terminate a Participant’s Service, unless determined by the Committee, in its discretion or to the extent set forth in the applicable Award Agreement. The Committee will have sole discretion to determine whether a Participant has ceased to provide Service and the effective date on which the Participant ceased to provide Service.

29.12.“Shares” means shares of the Class A common stock of the Company.

29.13.“Stock Appreciation Right” means an Award as defined in Section 8 and granted under the Plan.

29.14.“Stock Bonus” means an Award granted pursuant to Section 7 of the Plan.

29.15.“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

29.16.“Treasury Regulations” means regulations promulgated by the United States Treasury Department.

29.17.“Unvested Shares” means Shares that have not yet vested or are subject to a right of repurchase in favor of the Company (or any successor thereto).

			
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ADDENDUM

2019 EQUITY INCENTIVE PLAN - SUB-PLAN FOR UK EMPLOYEES

1.PURPOSE The terms set forth herein shall apply to Awards offered to Employees who are resident in the United Kingdom ("UK Employees"). All capitalized terms used herein but not otherwise defined shall have the respective meanings set forth in the Plan.

2.MODIFICATIONS The rules of the Plan shall apply to all Awards offered, granted or issued to UK Employees, save as modified or augmented below.

2.1.Section 3 shall be replaced by the words “ELIGIBILITY. Awards may only be granted to Employees.”, such that this Sub-Plan shall constitute an “Employee share scheme” within the meaning of Article 60(2) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005/1529.

2.2.All references to “tax” in the Plan shall be deemed to include UK income tax and national insurance contributions (“NICs”). The Committee may determine that it is a condition of the grant of an Award that the Participant enters into an election between the Participant and his employing company pursuant to section 431(1) of the UK Income Tax (Earnings and Pensions) Act 2003 in respect of the Shares acquired pursuant to his Award. The Committee may determine that it is a condition of the grant of an Award granted in the form of an Option that the exercise of the Option and the issue or transfer of the Shares to the Participant on the exercise of the Option is subject to the Participant entering into a joint election under the UK Social Security (Contributions and Benefits) Act 1992 with his employing company (in such form as is determined by the Committee) for any liability for employer NICs to be transferred to the Participant.

2.3.In no circumstances shall any UK Employee on ceasing to hold the employment by virtue of which he is or may be eligible to participate in the Plan be entitled to any compensation for any loss of any right or benefit or prospective right or benefit under the Plan which he might otherwise have enjoyed whether such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise and each UK Employee shall waive all and any rights to compensation or damages in consequence of the termination of his office or employment for any reason whatsoever (including, without prejudice to the generality of the foregoing wrongful dismissal or dismissal in breach of contract) insofar as those rights arise, or may arise, from his ceasing to have rights or any entitlement to Shares under the Plan as a result of such termination, or from the loss or diminution in value of such rights or entitlements.

2.4.The Plan shall not form any part of any contract of employment or terms of appointment between the Company or any Parent, Subsidiary or Affiliate and any UK Employee, and it shall not confer on any UK Employee any legal or equitable rights (other than those constituting an Award) against the Company or any Parent, Subsidiary or Affiliate, directly or indirectly, or give rise to any cause of action in law or in equity against the Company, or any Parent, Subsidiary or Affiliate.

2.5.The benefits to Participants under the Plan shall not form any part of their pay, wages, remuneration or fees or count as pay, wages, remuneration or fees for pension fund or other purposes.

2.6.The Plan is entirely discretionary. The grant of an Award does not give any Participant an entitlement (or any expectation of an entitlement) to any future grant of an Award pursuant to the Plan notwithstanding that other grants are made in a particular year to other Employees. 
2.7.Where the Shares are listed on the NASDAQ (or another a Recognized Stock Exchange as determined in accordance with Section 1005 of the Income Tax Act 2007), the Company will at its expense make an application for and use its reasonable endeavors to obtain a listing on the relevant Recognized Stock Exchange for all Shares acquired by Participants under this Sub-Plan.

			
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2.8.For the purposes of administering this Sub-Plan, the Company and any Parent, Subsidiary or Affiliate will collect and process information relating to each Participant in accordance with the privacy notice currently available on the Company’s intranet.

2.9.The Contracts (Rights of Third Parties) Act 1999 shall not apply to this UK Sub-Plan nor to any Award and no person other than parties to an Award shall have any rights under it nor shall it be enforceable under that Act by any person other than the parties to it.

			
	21

PELOTON INTERACTIVE, INC. 
2019 EQUITY INCENTIVE PLAN 
GLOBAL NOTICE OF STOCK OPTION GRANT 
Unless otherwise defined herein, the terms defined in the Peloton Interactive, Inc. (the “Company”) 2019 Equity Incentive Plan (the “Plan”) will have the same meanings in this Global Notice of Stock Option Grant and the electronic representation of this Global Notice of Stock Option Grant established and maintained by the Company or a third party designated by the Company (this “Notice”). 
Name: 
Address: 
You (“Participant”) have been granted an option to purchase shares of common stock of the Company (the “Option”) under the Plan subject to the terms and conditions of the Plan, this Notice and the attached Global Stock Option Award Agreement (the “Option Agreement”), including any applicable country-specific provisions in the appendix attached hereto (the “Appendix”), which constitutes part of the Option Agreement. 
Grant Number: 
Date of Grant: 
Vesting Commencement Date: 
Exercise Price per Share: 
Total Number of Shares: 
Type of Option: 
Expiration Date: _______; This Option expires earlier if Participant’s Service terminates earlier, as described in the Option Agreement. 
Vesting Schedule: Subject to the limitations set forth in this Notice, the Plan and the Option Agreement, the Option will vest in accordance with the following schedule: 

By accepting (whether in writing, electronically or otherwise) the Option, Participant acknowledges and agrees to the following:
1.Participant understands that Participant’s employment or consulting relationship or Service with the Company or a Parent or Subsidiary or Affiliate is for an unspecified duration, can be terminated at any time (i.e., is “at-will”), except where otherwise prohibited by applicable law, and that nothing in this Notice, the Option Agreement or the Plan changes the nature of that relationship. Participant acknowledges that the vesting of the Option pursuant to this Notice is subject to Participant’s continuing Service as an Employee, Director or Consultant. To the extent permitted by applicable law, Participant agrees and acknowledges that the Vesting Schedule may change prospectively in the event that Participant’s service status changes between full- and part-time and/or in the event Participant is on a leave of absence, in accordance with Company policies relating to work schedules and vesting of Awards or as determined by the Committee to the extent permitted by applicable law. Furthermore, the period during which Participant may exercise the Option after termination of Service, if any, will commence on the Termination Date (as defined in the Option Agreement).  
2.This grant is made under and governed by the Plan, the Option Agreement and this Notice, and this Notice is subject to the terms and conditions of the Option Agreement and the Plan, both of which are incorporated herein by reference. Participant has read the Notice, the Option Agreement and the Plan.  
3.Participant has read the Company’s Insider Trading Policy, and agrees to comply with such policy, as it may be amended from time to time, whenever Participant acquires or disposes of the Company’s securities.  
4.By accepting the Option, Participant consents to electronic delivery and participation as set forth in the Option
Agreement. 
PELOTON INTERACTIVE, INC. 
2019 EQUITY INCENTIVE PLAN 
			
	1

GLOBAL STOCK OPTION AWARD AGREEMENT 
Unless otherwise defined in this Global Stock Option Award Agreement (this “Option Agreement”), any capitalized terms used herein will have the meaning ascribed to them in the Peloton Interactive, Inc. 2019 Equity Incentive Plan (the “Plan”). 
Participant has been granted an option to purchase Shares (the “Option”) of Peloton Interactive, Inc. (the “Company”), subject to the terms, restrictions and conditions of the Plan, the Global Notice of Stock Option Grant (the “Notice”) and this Option Agreement, including any applicable country-specific provisions in the appendix attached hereto (the “Appendix”), which constitutes part of this Option Agreement. 
1. Vesting Rights. Subject to the applicable provisions of the Plan and this Option Agreement, this Option may be exercised, in whole or in part, in accordance with the Vesting Schedule set forth in the Notice. Participant acknowledges that the vesting of the Option pursuant to this Notice and Agreement is subject to Participant’s continuing Service as an Employee, Director or Consultant. 
2. Grant of Option. Participant has been granted an Option for the number of Shares set forth in the Notice at the exercise price per Share in U.S. Dollars set forth in the Notice (the “Exercise Price”). In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail. If designated in the Notice as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code. However, if this Option is intended to be an ISO, to the extent that it exceeds the U.S. $100,000 rule of Code Section 422(d) it shall be treated as a Nonqualified Stock Option (“NSO”). 
3. Termination Period. 
(a)General Rule. If Participant’s Service terminates for any reason except death or Disability, and other than for Cause, then this Option will expire at the close of business at Company headquarters on the date three (3) months after Participant’s Termination Date (as defined below) (or such shorter time period not less than thirty (30) days or longer time period as may be determined by the Committee, with any exercise beyond three (3) months after the date Participant’s Service terminates deemed to be the exercise of an NSO). The Company determines when Participant’s Service terminates for all purposes under this Option Agreement. 
(b)Death; Disability. If Participant dies before Participant’s Service terminates (or Participant dies within three months of Participant’s termination of Service other than for Cause), then this Option will expire at the close of business at Company headquarters on the date twelve (12) months after the date of death (or such shorter time period not less than six (6) months or longer time period as may be determined by the Committee or a shorter period set forth in the Appendix for a specific jurisdiction, subject to the expiration details in Section 7). If Participant’s Service terminates because of Participant’s Disability, then this Option will expire at the close of business at Company headquarters on the date twelve (12) months after Participant’s Termination Date (or such shorter time period not less than six (6) months or longer time period as may be determined by the Committee or a shorter period set forth in the Appendix for a specific jurisdiction, subject to the expiration details in Section 7).
(c)Cause. Unless otherwise determined by the Committee, the Option (whether or not vested) will terminate immediately upon the Participant’s cessation of Services if the Company reasonably determines in good faith that such cessation of Services has resulted in connection with an act or failure to act constituting Cause (or the Participant’s Services could have been terminated for Cause (without regard to the lapsing of any required notice or cure periods in connection therewith) at the time the Participant terminated Services). 
(d)No Notification of Exercise Periods. Participant is responsible for keeping track of these exercise periods following Participant’s termination of Service for any reason. The Company will not provide further notice of such periods. In no event shall this Option be exercised later than the Expiration Date set forth in the Notice. 
(e)Termination. For purposes of this Option, Participant’s Service will be considered terminated (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) as of the date Participant is no longer actively providing services to the Company, its Parent or one of its Subsidiaries or Affiliates (i.e., Participant’s period of Service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) (the “Termination Date”). Unless otherwise provided in this Option Agreement or determined by the Company, Participant’s right to vest in the Option under the Plan, if any, will terminate as of the Termination Date and Participant’s right to exercise the Option after termination of Service, if any, will be measured from the Termination Date. 
			
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In case of any dispute as to whether and when a termination of Service has occurred, the Committee will have sole discretion to determine whether such termination of Service has occurred and the effective date of such termination (including whether Participant may still be considered to be actively providing Services while on a leave of absence). 
If Participant does not exercise this Option within the termination period set forth in the Notice or the termination periods set forth above, the Option shall terminate in its entirety. In no event, may any Option be exercised after the Expiration Date of the Option as set forth in the Notice. 
4. Exercise of Option. 
(a)Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set forth in the Notice and the applicable provisions of the Plan and this Option Agreement. In the event of Participant’s death, Disability, termination for Cause or other cessation of Service, the exercisability of the Option is governed by the applicable provisions of the Plan, the Notice and this Option Agreement.  This Option may not be exercised for a fraction of a Share. 
(b)Method of Exercise. This Option is exercisable by delivery of an exercise notice in a form specified by the Company (the “Exercise Notice”), which will state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice will be delivered in person, by mail, via electronic mail or facsimile or by other authorized method to the Secretary of the Company or other person designated by the Company. The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares together with any applicable Tax-Related Items (as defined in Section 8 below). This Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price and payment of any applicable Tax-Related Items (as defined below). No Shares will be issued pursuant to the exercise of this Option unless such issuance and exercise complies with all relevant provisions of law and the requirements of any stock exchange or quotation service upon which the Shares are then listed and any exchange control registrations. Assuming such compliance, for United States income tax purposes the Exercised Shares will be considered transferred to Participant on the date the Option is exercised with respect to such Exercised Shares. 
(c)Exercise by Another. If another person wants to exercise this Option after it has been transferred to him or her in compliance with this Option Agreement, that person must prove to the Company’s satisfaction that he or she is entitled to exercise this Option. That person must also complete the proper Exercise Notice form (as described above) and pay the Exercise Price (as described below) and any applicable Tax-Related Items (as described below). 
5.  Method of Payment. Payment of the aggregate Exercise Price, and any Tax-Related Items (as defined below) withholding, will be by any of the following, or a combination thereof, at the election of Participant: 
(a)Participant’s personal check (representing readily available funds), wire transfer, or a cashier’s check; 
(b)if permitted by the Committee, certificates for shares of Company stock that Participant owns, along with any forms needed to effect a transfer of those shares to the Company; the value of the shares, determined as of the effective date of the Option exercise, will be applied to the Exercise Price. Instead of surrendering shares of Company stock, Participant may attest to the ownership of those shares on a form provided by the Company and have the same number of shares subtracted from the Option shares issued to Participant. However, Participant may not surrender, or attest to the ownership of, shares of Company stock in payment of the Exercise Price of Participant’s Option if Participant’s action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to this Option for financial reporting purposes; 
(c)cashless exercise through irrevocable directions to a securities broker approved by the Company to sell all or part of the Shares covered by this Option and to deliver to the Company from the sale proceeds an amount sufficient to pay the Exercise Price and any applicable Tax-Related Items (as defined below) withholding. The balance of the sale proceeds, if any, will be delivered to Participant unless otherwise provided in this Option Agreement. The directions must be given by signing a special notice of exercise form provided by the Company; or 
(d)other method authorized by the Company; 
provided, however, that the Company may restrict the available methods of payment due to facilitate compliance with applicable law or administration of the Plan. In particular, if Participant is located outside the United States, Participant should review the applicable provisions of the Appendix for any such restrictions that may currently apply. 
			
	3

6. Non-Transferability of Option. This Option may not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of other than by will or by the laws of descent or distribution or court order and may be exercised during the lifetime of Participant only by Participant or unless otherwise permitted by the Committee on a case-by-case basis. The terms of the Plan and this Option Agreement will be binding upon the executors, administrators, heirs, successors and assigns of Participant. 
7. Term of Option. This Option will in any event expire on the expiration date set forth in the Notice, which date is 10 years after the Date of Grant (five years after the Date of Grant if this option is designated as an ISO in the Notice of Stock Option Grant and Section 5.3 of the Plan applies). 
8. Taxes. 
(a)Responsibility for Taxes. Participant acknowledges that, to the extent permitted by applicable law, regardless of any action taken by the Company or a Parent, Subsidiary or Affiliate employing or retaining Participant (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”) is and remains Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer, if any. Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this Option, including, but not limited to, the grant, vesting or exercise of this Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of this Option to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction, Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. PARTICIPANT SHOULD CONSULT A TAX ADVISER APPROPRIATELY QUALIFIED IN EACH OF THE JURISDICTIONS, INCLUDING COUNTRY OR COUNTRIES IN WHICH PARTICIPANT RESIDES OR IS SUBJECT TO TAXATION BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 
(b)Withholding. Prior to any relevant taxable or tax withholding event, as applicable, to the extent permitted by applicable law Participant agrees to make arrangements satisfactory to the Company and/or the Employer to fulfill all Tax-Related Items. In this regard, Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy any withholding obligations for Tax-Related Items by one or a combination of the following: 
(i)withholding from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer or any Parent, Subsidiary or Affiliate; or 
(ii)withholding from proceeds of the sale of Shares acquired at exercise of this Option either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant to this authorization and without further consent); or 
(iii)withholding Shares to be issued upon exercise of the Option, provided the Company only withholds the number of Shares necessary to satisfy no more than the maximum statutory withholding amounts; 
(iv)Participant’s payment of a cash amount (including by check representing readily available funds or a wire transfer); or 
(v)any other arrangement approved by the Committee and permitted under applicable law; 
all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable; provided however, that if Participant is a Section 16 officer of the Company under the Exchange Act, then the Committee (as constituted in accordance with Rule 16b-3 under the Exchange Act) shall establish the method of withholding from alternatives (i)-(v) above, and the Committee shall establish the method prior to the Tax-Related Items withholding event.  
Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to the maximum permissible statutory rate for Participant’s tax jurisdiction(s) in which case Participant will have no entitlement to the equivalent amount in Shares and may receive a refund of any over-withheld amount in cash in accordance with applicable law. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Exercised Shares; notwithstanding that a number of the Shares are held back solely for the purpose of satisfying the withholding obligation for Tax-Related Items. 
			
	4

Finally, Participant agrees to pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items. 
(c)Notice of Disqualifying Disposition of ISO Shares. If Participant is subject to Tax-Related Items in the United States and sells or otherwise disposes of any of the Shares acquired pursuant to an ISO on or before the later of (i) two years after the grant date, or (ii) one year after the exercise date, Participant will immediately notify the Company in writing of such disposition. Participant agrees that he or she may be subject to income tax withholding by the Company on the compensation income recognized from such early disposition of ISO Shares by payment in cash or out any wages or other cash compensation paid to Participant by the Company and/or the Employer or any Parent, Subsidiary or Affiliate.

9. Nature of Grant. By accepting the Option, Participant acknowledges, understands and agrees that: 
(a)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan; 
(b)the grant of the Option is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past; 
(c)all decisions with respect to future options or other grants, if any, will be at the sole discretion of the Company; 
(d)Participant is voluntarily participating in the Plan; 
(e)the Option and Participant’s participation in the Plan will not create a right to employment or be interpreted as forming or amending an employment or service contract with the Company, the Employer or any Parent, Subsidiary or Affiliate, and shall not interfere with the ability of the Company, the Employer or any Parent, Subsidiary or Affiliate, as applicable, to terminate Participant’s employment or service relationship (if any); 
(f)the Option and the Shares subject to the Option, and the income from and value of same, are not intended to replace any pension rights or compensation; 
(g)the Option and the Shares subject to the Option, and the income from and value of same, are not part of normal or expected compensation for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 
(h)unless otherwise agreed with the Company, the Option and the Shares subject to the Option, and the income from and value of same, are not granted as consideration for, or in connection with, the service Participant may provide as a director of a Parent, Subsidiary or Affiliate; 
(i)the future value of the Shares underlying the Option is unknown, indeterminable and cannot be predicted with certainty; if the underlying Shares do not increase in value, the Option will have no value; if Participant exercises the Option and acquires Shares, the value of such Shares may increase or decrease, even below the Exercise Price; 
(j)no claim or entitlement to compensation or damages will arise from forfeiture of the Option resulting from Participant’s termination of Service (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any); and 
(k)neither the Company, the Employer nor any Parent, Subsidiary or Affiliate will be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the Option or of any amounts due to Participant pursuant to the exercise of the Option or the subsequent sale of any Shares acquired upon exercise. 
10. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares. Participant acknowledges, understands and agrees that he or she should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan. 
			
	5

11. Data Privacy. Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Option Agreement and any other Option grant materials by and among, as applicable, the Employer, the Company and any Parent, Subsidiary or Affiliate for
the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan. 
Participant understands that the Company and the Employer may hold certain personal information about Participant, including, but not limited to, Participant’s name, home address, email address and telephone number, date of birth, social insurance number, passport number or other identification number (e.g., resident registration number), salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan. 
Participant understands that Data will be transferred to E*TRADE Financial Services, Solium-Shareworks, or other third party (“Online Administrator”) and its affiliated companies or such other stock plan service provider as may be designated by the Company from time to time, which is assisting the Company with the implementation, administration and management of the Plan. Participant understands that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than Participant’s country. Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of Data by contacting his or her local human resources representative. Participant authorizes the Company, Solium Shareworks, or such other stock plan service provider as may be designated by the Company from time to time, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan. Participant understands if he or she resides outside the United States, he or she may, at any time, view Data, request information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting his or her local human resources representative. Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis. If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing Participant’s consent is that the Company would not be able to grant Options or other equity awards to Participant or administer or maintain such awards. Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan. For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative. 
Finally, upon request of the Company or the Employer, Participant agrees to provide an executed data privacy consent form (or any other agreements or consents) that the Company or the Employer may deem necessary to obtain from Participant for the purpose of administering Participant’s participation in the Plan in compliance with the data privacy laws in Participant’s country, either now or in the future. Participant understands and agrees that Participant will not be able to participate in the Plan if Participant fails to provide any such consent or agreement requested by the Company and/or the Employer. 
12. Language. Participant acknowledges that he or she is sufficiently proficient in English to understand the terms and conditions of this Option Agreement. Furthermore, if Participant has received this Option Agreement, or any other document related to the Option and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. 
13. Appendix. Notwithstanding any provisions in this Option Agreement, the Option will be subject to any special terms and conditions set forth in any appendix to this Option Agreement for Participant’s country. Moreover, if Participant relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. The Appendix constitutes part of this Option Agreement. 
14. Imposition of Other Requirements. The Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the Option and on any Shares purchased upon exercise of the Option, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 
15. Acknowledgement. The Company and Participant agree that the Option is granted under and governed by the Notice, this Option Agreement and the provisions of the Plan (incorporated herein by reference). Participant: (a) acknowledges receipt 
			
	6

of a copy of the Plan and the Plan prospectus, (b) represents that Participant has carefully read and is familiar with their provisions, and (c) hereby accepts the Option subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice. 
16. Entire Agreement; Enforcement of Rights. This Option Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No adverse modification of, or adverse amendment to, this Option Agreement, nor any waiver of any rights under this Option Agreement, will be effective unless in writing and signed by the parties to this Option Agreement (which writing and signing may be electronic). The failure by either party to enforce any rights under this Option Agreement will not be construed as a waiver of any rights of such party. 
17. Compliance with Laws and Regulations. The issuance of Shares will be subject to and conditioned upon compliance by the Company and Participant with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Shares may be listed or quoted at the time of such issuance or transfer. Participant understands that the Company is under no obligation to register or qualify the Shares with any state, federal or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, Participant agrees that the Company shall have unilateral authority to amend the Plan and this Option Agreement without Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares. Finally, the Shares issued pursuant to this Option Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 
18. Severability. If one or more provisions of this Option Agreement are held to be unenforceable under applicable law, then such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause or provision cannot be so enforced, then (a) such provision will be excluded from this Option Agreement, (b) the balance of this Option Agreement will be interpreted as if such provision were so excluded and (c) the balance of this Option Agreement will be enforceable in accordance with its terms. 
19. Governing Law and Venue. This Option Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto will be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to such state’s conflict of laws rules. 
Any and all disputes relating to, concerning or arising from this Option Agreement, or relating to, concerning or arising from the relationship between the parties evidenced by the Plan or this Option Agreement, will be brought and heard exclusively in the United States District Court for the Southern District of New York or, if such court does not have subject matter jurisdiction, the courts of the State of New York sitting in the County of New York, and any appellate courts thereof. Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum. 
20. No Rights as Employee, Director or Consultant. Nothing in this Option Agreement will affect in any manner whatsoever any right or power of the Company, or a Parent, Subsidiary or Affiliate, to terminate Participant’s Service, for any reason, with or without Cause. 
21. Consent to Electronic Delivery of All Plan Documents and Disclosures. By Participant’s acceptance of the Notice (whether in writing or electronically), Participant and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan, the Notice and this Option Agreement. Participant has reviewed the Plan, the Notice and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the Notice and Agreement, and fully understands all provisions of the Plan, the Notice and this Option Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and this Option Agreement. Participant further agrees to notify the Company upon any change in the residence address. By acceptance of this Option, Participant agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company and consents to the electronic delivery of the Notice, this Option Agreement, the Plan, account statements, Plan prospectuses required by the SEC, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Option and current or future participation in the Plan. Electronic delivery may include the delivery of a link to the Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the 
			
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document via e-mail or such other delivery determined at the Company’s discretion. Participant acknowledges that Participant may receive from the Company a paper copy of any documents delivered electronically at no cost if Participant contacts the Company by telephone, through a postal service or electronic mail to Stock Administration. Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant’s consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail to Stock Administration. 
22. Insider Trading Restrictions/Market Abuse Laws. Participant acknowledges that, depending on Participant’s country of residence, the broker’s country, or the country in which the Shares are listed, Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect Participant’s ability to directly or indirectly, accept, acquire, sell or attempt to sell or otherwise dispose of Shares, or rights to Shares (e.g., Options), or rights linked to the value of Shares, during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws or regulations in the applicable jurisdiction). Local insider trading laws and regulations may prohibit the cancellation or amendment of orders Participant placed before possessing the inside information. Furthermore, Participant may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them to otherwise buy or sell securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. Participant acknowledges that it is Participant’s responsibility to comply with any applicable restrictions and understands that Participant should consult his or her personal legal advisor on such matters. In addition, Participant acknowledges that he or she read the Company’s Insider Trading Policy, and agrees to comply with such policy, as it may be amended from time to time, whenever Participant acquires or disposes of the Company’s securities.  
23. Foreign Asset/Account, Exchange Control and Tax Reporting. Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the acquisition, holding and/or transfer of Shares or cash resulting from his or her participation in the Plan. Participant may be required to report such accounts, assets, the balances therein, the value thereof and/or the transactions related thereto to the applicable authorities in Participant’s country and/or repatriate funds received in connection with the Plan within certain time limits or according to specified procedures. Participant acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements and should consult his or her personal legal and tax advisors on such matters. 
24. Award Subject to Company Clawback or Recoupment. The Option shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant’s employment or other Service that is applicable to Participant. In addition to any other remedies available under such policy, applicable law may require the cancellation of Participant’s Option (whether vested or unvested) and the recoupment of any gains realized with respect to Participant’s Option. 
BY ACCEPTING THIS OPTION, PARTICIPANT AGREES TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. 

			
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APPENDIX 
PELOTON INTERACTIVE, INC. 
2019 EQUITY INCENTIVE PLAN 
GLOBAL STOCK OPTION AWARD AGREEMENT 
COUNTRY SPECIFIC PROVISIONS FOR EMPLOYEES OUTSIDE THE U.S.
Terms and Conditions 
This Appendix includes additional terms and conditions that govern the Option granted to Participant under the Plan if Participant resides and/or works in one of the countries below. This Appendix forms part of the Option Agreement. Any capitalized term used in this Appendix without definition will have the meaning ascribed to it in the Notice, the Option Agreement or the Plan, as applicable. 
If Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which Participant is currently working, or Participant transfers employment and/or residency between countries after the Date of Grant, the Company will, in its sole discretion, determine to what extent the additional terms and conditions included herein will apply to Participant under these circumstances. 
Notifications 
This Appendix also includes information relating to exchange control, securities laws, foreign asset/account reporting and other issues of which Participant should be aware with respect to Participant’s participation in the Plan. The information is based on the securities, exchange control, foreign asset/account reporting and other laws in effect in the respective countries as of August 2019. Such laws are complex and change frequently. As a result, Participant should not rely on the information herein as the only source of information relating to the consequences of Participant’s participation in the Plan because the information may be out of date at the time that Participant exercises the Option, sells Shares acquired under the Plan or takes any other action in connection with the Plan. 
In addition, the information is general in nature and may not apply to Participant’s particular situation, and the Company is not in a position to assure Participant of any particular result. Accordingly, Participant should seek appropriate professional advice as to how the relevant laws in Participant’s country may apply to Participant’s situation. 
Finally, if Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which Participant is currently working and/or residing, or Participant transfers employment and/or residency after the Date of Grant, the information contained herein may not apply to Participant in the same manner. 
CANADA
Terms and Conditions 
Method of Payment. The following provision supplements Section 5 of the Option Agreement: 
Due to regulatory considerations in Canada, Participant is prohibited from surrendering Shares that are already owned by Participant or attesting to the ownership of Shares to pay the Exercise Price or any Tax-Related Items in connection with this Option. 
Termination Date. The following provisions replace Section 3(e) of the Option Agreement in its entirety: 
For purposes of this Option, Participant’s Service will be considered terminated as of the date that is the earliest of (i) the date on which Participant’s Service is terminated, (ii) the date on which Participant receives notice of termination, and (iii) the date on which Participant is no longer actively providing Services to the Company or the Employer, regardless of any notice period or period of pay in lieu of such notice required under applicable employment law. The Committee shall have the exclusive discretion to determine when Participant’s active provision of services is terminated for purposes of this Option (including whether Participant may still be considered actively employed while on a leave of absence). 
Securities Law Matters 
Participant is permitted to sell the Shares acquired under the Plan through the designated broker appointed under the Plan, if any, provided the resale of Shares acquired under the Plan takes place outside of Canada through the facilities of a stock exchange on which the Shares are listed (e.g., the Nasdaq).
Notifications; Other 
			
	9

Foreign Asset / Account Reporting Notice 
If Participant is a Canadian resident, Participant is required to report his or her foreign specified property (including Shares and rights to receive Shares) on Form T1135 (Foreign Income Verification Statement) if the total value of such foreign specified property exceeds C$100,000 at any time during the year. Although what cost should be assigned to the Options may be unclear, such Options must be reported if the CAD 100,000 threshold is exceeded due to other foreign property held by Participant. 
When Shares are acquired, their cost generally is the adjusted cost base (“ACB”) of the Shares which would ordinarily equal the fair market value of the Shares at the time of acquisition, but if other Shares are also owned, this ACB may have to be averaged with the ACB of the other Shares. 
The following terms and conditions apply to Quebec resident: 
Data Privacy 
Participant hereby authorizes the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan. Participant further authorizes the Company and any Parent, Subsidiary or Affiliate and the administrator of the Plan to disclose and discuss the Plan with their advisors. Participant further authorizes the Company and any Parent, Subsidiary or Affiliate to record such information and to keep such information in Participant's file. 
Language. The parties acknowledge that it is their express wish that the Option Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. 
Les parties reconnaissent avoir expressement souhaité que la convention “Option Agreement”, ainsi que tous les documents, avis et procédures judiciaries, éxecutés, donnés ou intentés en vertu de, ou lié, directement ou indirectement à la présente convention, soient rédigés en langue anglaise. 
Germany 
Terms and Conditions 
General Matters. Participant acknowledges and agrees that Participant’s sole contact and sole contractual partner regarding the Plan and the Option is the Company and any rights and entitlements pursuant to the Plan are granted to Participant on an exclusively voluntary basis and do not create any claims against the Company, the Employer and/or any of their Subsidiaries, Parents or Affiliates. Even if there is a repeated grant of rights and without express notification that the grant is made voluntarily, Participant has no legal claim for future grants and explicitly acknowledges the voluntary nature of such grants. All grants remain in the complete discretion of the Company. The Company reserves the right to determine the scope of beneficiaries and the conditions of the Plan, to the extent permitted by applicable law. Additionally, the Option does not form part of Participant’s contractual compensation and is not to be considered part of his or her normal or expected compensation for purposes of calculating severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. 
Securities Law Matters. Instruments granted under the Plan and the Option may be subject to the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (the “Prospectus Regulation”) and the German Securities Prospectus Act (Wertpapierprospektgesetz – “WpPG”). The Company is of the opinion that the participation in the Plan and the receipt/exercise of the Option by the Participants is exempt from the requirement to approve and publish a prospectus or further documents under the Prospectus Regulation and/or WpPG. However, the Company reserve all rights to amend the Plan and/or the Notice at any time to the extent required to be compliant with the Prospectus Regulation, WpPG and/or other laws and regulations applicable in Germany. 
Notifications, Other 
Exchange Control. Cross-border payments in excess of EUR 12,500 (including transactions made in connection with the sale
of securities) must be reported monthly to the German Federal Bank (Bundesbank). If Participant makes or receives a payment in excess of this amount in connection with Participant’s participation in the Plan, Participant must report the payment to Bundesbank electronically, no later than the fifth day of the month following the month in which the payment was received, using the “General Statistics Reporting Portal” (“Allgemeines Meldeportal Statistik”) available via Bundesbank’s website ( www.bundesbank.de). 

Tax Matters. Participant acknowledges its legal obligation under German law to inform the Employer of any benefit received from the Company and the Employer ́s duty and will comply with that duty without undue delay. Participant acknowledges that in 
			
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case of non-compliance with such duty, the Employer may inform the competent authority of such non-compliance and that non-compliance may have further legal consequences for the Participant. 
If Participant has not paid or provided for Tax-Related Items within 10 days following the end of the month in which the relevant benefit is attributable to the Participant for German wage tax purposes, to the extent permitted by applicable law, the amount of any Tax-Related Items borne by the Company or any subsidiary towards the competent authority shall constitute a loan owed to the Company or, if the Company is not the employer for German wage tax purposes, the Employer, which will bear interest at (i) the relevant reference market rate published by the German Federal Bank as referenced in section 2.1.2 of the Federal Ministry ́s published guidance on the tax treatment of employer loans by letter of 19 May 2015 or (ii) the lowest rate deemed acceptable under any Federal Ministry ́s successor guidance to the guidance mentioned under (i) above. If Tax-Related Items due are not collected from or paid by Participant by their due date, it is possible that the German tax authorities will qualify the amount of any uncollected Tax-Related Items as a benefit to Participant, on which additional income tax would be payable. In such case, Participant will be responsible for any taxes that may be due on this additional benefit and for reimbursing the Company and/or the Employer for any Tax-Related Items on this additional benefit. 
TAIWAN 
Terms and Conditions 
General Matters 
Participant acknowledges and agrees that the offer of this Option has not been and will not be registered with the Financial Supervisory Commission of the Republic of China (ROC) pursuant to relevant securities laws and regulations in the ROC, and may not be offered or sold within the ROC through a public offering or in a circumstance which constitutes an offer within the meaning of the Securities and Exchange Act of the ROC that requires a registration or approval of the Financial Supervisory Commission of the ROC. 
Notifications 
Exchange Control 
According to the current foreign exchange laws and regulations, any inward or outward remittance involving non-New Taiwan Dollar currency will be counted towards the foreign exchange quota, that is, each Taiwan individual has an annual foreign exchange quota of US$5 million for inward and outward remittances, respectively, without having to obtain any prior approval from the Central Bank of the ROC. The Participant shall be responsible for seeking the special approval for the Central Bank should any inward and outward remittances of foreign exchange that exceed the US$5 million annual quota. 
Tax Matters 
According to the ruling issued by the Ministry of Finance (“MOF”) (Ref. No.: Tai-Tsai-Shuei-09404527550) in respect of the
taxation of employee stock option offered by foreign companies to the employees of their subsidiaries/branches/representative offices in Taiwan, the difference between the exercise price and the market price of the stocks at the time of exercise (economic benefit) shall be deemed "other income" of the employee and is subject to income tax. Hence, Participant shall be responsible for including such income in his/her annual income tax return and paying applicable income tax thereon for the year in which he/she exercises the Option should any gain is realized therefrom. 
Note: The representative office or subsidiary should have no tax-withholding obligation for the employee's other income, but is required to (i) complete non-withholding tax statements and file these, together with other relevant documents, with the competent tax authorities by January 31 of the following year, and (ii) issue a non-withholding tax statement to each of the participating employees on or before February 10 of the following year. 
United Kingdom 
Participant acknowledges and agrees to the terms of the UK Sub-Plan in the addendum to the Peloton Interactive, Inc. 2019 Equity Incentive Plan, including but not limited to the provisions of sections 2.2 to 2.5 inclusive. 
All references to Tax-Related Items above shall be deemed to include UK income tax and national insurance contributions (“NICs”). 
			
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Paragraph 11 above shall not apply to UK Employees. Participant understands that for the purposes of administering this Agreement and the Plan, the Employer, the Company and any Parent or Subsidiary will collect and process information relating to him or her in accordance with the privacy notice currently available on the Company’s intranet. 
Participant acknowledges and understands that (a) Data will be transferred to E*TRADE Financial Services, Solium Shareworks, or other third party (“Online Administrator”) and its affiliated companies or such other stock plan service provider as may be designated by the Company from time to time, which is assisting the Company with the implementation, administration and management of the Plan, (b) that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than my country and (c) that he may request a list with the names and addresses of any potential recipients of Data by contacting the local human resources representative. 
AUSTRALIA 
Termination. The following provisions replace Section 3(e) of the Option Agreement in its entirety: 
For purposes of this Option, unless otherwise determined by the Committee in its absolute discretion, Participant’s Service will be considered terminated (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) as of the date Participant’s employment with or service to the Company, its Parent and its Subsidiaries or Affiliates terminates; (the “Termination Date”); provided that the Committee may provide, in its absolute discretion, that the Termination Date shall occur on any earlier date on which the Participant is no longer actively providing services to the Company, its Parent and its Subsidiaries or Affiliates (e.g., the Committee may provide that the Participant’s Service will not include any contractual notice period worked by the Participant or any period of “garden leave” served by the Participant or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any). Unless otherwise provided in this Option Agreement or determined by the Company, Participant’s right to vest in the Option under the Plan, if any, will terminate as of the Termination Date and Participant’s right to exercise the Option after termination of Service, if any, will be measured from the Termination Date. 
Participant acknowledges and agrees that, to the extent permitted by Law, the Vesting Schedule may change prospectively in the event Participant’s service status changes between full- and part-time and/or in the event Participant is on a leave of absence and/or in the event Participant is on a contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any, in accordance with Company policies relating to work schedules and vesting of awards or as determined by the Committee. 
In case of any dispute as to whether and when a termination of Service has occurred, the Committee will have sole discretion to determine whether such termination of Service has occurred and the effective date of such termination (including whether Participant may still be considered to be actively providing Services while on a leave of absence). If Participant does not
exercise this Option within the termination period set forth in the Notice or the termination periods set forth above, the Option shall terminate in its entirety. In no event, may any Option be exercised after the Expiration Date of the Option as set forth in the Notice. 
No financial product advice. No financial product advice is provided in this Option Agreement, the Notice or the Plan (the “Plan Documents”) and nothing in the Plan Documents should be taken to constitute a recommendation or statement of opinion that is intended to influence a person or persons in making a decision to participate in the Plan. The Plan Documents do not take into account the objectives, financial situation or needs of any particular person. Before acting on the information contained in the Plan Documents, or making a decision to participate in the Plan, the Participant should seek professional advice from an independent person who is licensed by the Australian Securities and Investments Commission (“ASIC”) to give such advice as to whether participation in the Plan is appropriate in light of the Participant’s own circumstances. 
Offer made without disclosure. An offer to participate in the Plan, if received in Australia, is made without disclosure to investors in reliance on conditional relied provided by ASIC. 
Risks. Participation in the Plan involves a number of risks including that: 
1. While an Option entitles you to purchase Shares on exercise, an Option is not a Share and a Participant will not receive Shares until the Option has vested and is exercised. If an Option expires (for example, because a Participant’s Service is terminated), all of the Participant’s rights under the Plan in respect of that Option (including his or her right to purchase Shares on the exercise of the Option) will be forfeited. 
2. The price at which Shares trade on NASDAQ is volatile and moves up and down with market sentiment as well as factors which are specific to the Company. 
			
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3. At the time an Option becomes exercisable, the value of a Share may be less than the Exercise Price payable per Share for the exercise of the Option. 
4. Options are not Shares and may be treated differently to Shares in certain corporate actions. 
5. Participating in the Plan, and holding an Option or Shares may have tax implications for you and the tax regime applying to you may change. 
The information above is only general information about the risks of participating in the Plan. There may be other risks of participating in the Plan that are specific to a Participant’s circumstances. 
Share price. The current and historical market prices of Shares will be available on the NASDAQ website, accessible at www.nasdaq.com, using the Company’s NASDAQ Code: PTON (quoted in US dollars). If a Participant is unable to locate the current market price of a Share there or would like to know the current market price of Shares in Australian dollars, please make a request to equity@onepeloton.com and the Company will provide this information within a reasonable period of receiving the request. 
Taxation. Participation in the Plan and holding an Option or Shares may have taxation implications. The Participant should consider obtaining independent professional advice to clarify his or her taxation position in relation to his or her participation in the Plan. 
Data privacy. Section 11 of the Option Agreement is supplemented for Australian employees as follows: 
The Participant acknowledges that, in addition to the entities specified in the Option Agreement, Data may be provided by the Company to any employee benefit trust, registrars, brokers or third party administrators of the Plan and (if relevant) future purchasers of the Company, or the Subsidiary, Affiliate or business for which the Participant works, and consents to any such disclosure. 
The Participant consents to disclosure of Data to the Australian Tax Office, where required in accordance with the relevant Subsidiary or Affiliate’s reporting obligations under Australian tax legislation. 
The Participant acknowledges that he or she can access further information regarding data privacy in the Company’s Privacy Policy, including about how the Participant can access and seek correction of his or her personal information and make a complaint if he or she has any concerns regarding the treatment of Data.
			
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PELOTON INTERACTIVE, INC.
2019 EQUITY INCENTIVE PLAN
GLOBAL NOTICE OF RESTRICTED STOCK UNIT AWARD

Unless otherwise defined herein, the terms defined in the Peloton Interactive, Inc. (the “Company”) 2019 Equity Incentive Plan (the “Plan”) will have the same meanings in this Global Notice of Restricted Stock Unit Award and the electronic representation of this Global Notice of Restricted Stock Unit Award established and maintained by the Company or a third party designated by the Company (this “Notice”).  
Name:    
             Address:  
You (“Participant”) have been granted an award of Restricted Stock Units (“RSUs”) under the Plan subject to the terms and conditions of the Plan, this Notice and the attached Global Restricted Stock Unit Award Agreement (the “Agreement”), including any applicable country-specific provisions in the appendix attached hereto (the “Appendix”), which constitutes part of the Agreement.
Grant Number:          
Number of RSUs:  
Date of Grant:  
Vesting Commencement Date:  
Expiration Date:    The earlier to occur of: (a) the date on which settlement of all RSUs granted hereunder occurs and (b) the tenth anniversary of the Date of Grant.  This RSU expires earlier if Participant’s Service terminates earlier, as described in the Agreement.
Vesting Schedule:      Subject to the limitations set forth in this Notice, the Plan and the Agreement, the RSUs will vest in accordance with the following schedule:

By accepting (whether in writing, electronically or otherwise) the RSUs, Participant acknowledges and agrees to the following: 

1)Participant understands that Participant’s employment or consulting relationship or Service with the Company or a Parent or Subsidiary or Affiliate is for an unspecified duration, can be terminated at any time (i.e., is “at-will”), except where otherwise prohibited by applicable law, and that nothing in this Notice, the Agreement or the Plan changes the nature of that relationship.  Participant acknowledges that the vesting of the RSUs pursuant to this Notice is subject to Participant’s continuing Service as an Employee, Director or Consultant.  To the extent permitted by applicable law, Participant agrees and acknowledges that the Vesting Schedule may change prospectively in the event that Participant’s service status changes between full- and part-time and/or in the event Participant is on a leave of absence, in accordance with Company policies relating to work schedules and vesting of Awards or as determined by the Committee. 
2)This grant is made under and governed by the Plan, the Agreement and this Notice, and this Notice is subject to the terms and conditions of the Agreement and the Plan, both of which are incorporated herein by reference.   Participant has read the Notice, the Agreement and the Plan.  
3)Participant has read the Company’s Insider Trading Policy, and agrees to comply with such policy, as it may be amended from time to time, whenever Participant acquires or disposes of the Company’s securities. 
4)By accepting the RSUs, Participant consents to electronic delivery and participation as set forth in the Agreement.

    

PELOTON INTERACTIVE, INC.
2019 EQUITY INCENTIVE PLAN
GLOBAL RESTRICTED STOCK UNIT AWARD AGREEMENT

Unless otherwise defined in this Global Restricted Stock Unit Award Agreement (this “Agreement”), any capitalized terms used herein will have the same meaning ascribed to them in the Peloton Interactive, Inc. 2019 Equity Incentive Plan (the “Plan”). 

Participant has been granted Restricted Stock Units (“RSUs”) subject to the terms, restrictions and conditions of the Plan, the Global Notice of Restricted Stock Unit Award (the “Notice”) and this Agreement, including any applicable country-specific provisions in the appendix attached hereto (the “Appendix”), which constitutes part of this Agreement.  In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of the Notice or this Agreement, the terms and conditions of the Plan shall prevail.
1.Settlement.  Settlement of RSUs will be made within 30 days following the applicable date of vesting under the Vesting Schedule set forth in the Notice.  Settlement of RSUs will be in Shares.  No fractional RSUs or rights for fractional Shares shall be created pursuant to this Agreement.
2.No Stockholder Rights.  Unless and until such time as Shares are issued in settlement of vested RSUs, Participant will have no ownership of the Shares allocated to the RSUs and will have no rights to dividends or to vote such Shares.
3.Dividend Equivalents.  Dividends, if any (whether in cash or Shares), will not be credited to Participant.
4.Non-Transferability of RSUs.  The RSUs and any interest therein will not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of in any manner other than by will or by the laws of descent or distribution or court order or unless otherwise permitted by the Committee on a case-by-case basis.    
5.Termination.  If Participant’s Service terminates for any reason, all unvested RSUs will be forfeited to the Company forthwith, and all rights of Participant to such RSUs will immediately terminate without payment of any consideration to Participant.  Participant’s Service will be considered terminated (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) as of the date Participant is no longer actively providing services and Participant’s Service will not be extended by any notice period (e.g., Participant’s Service would not include a period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any). Participant acknowledges and agrees that the Vesting Schedule may change prospectively in the event Participant’s service status changes between full- and part-time and/or in the event Participant is on a leave of absence, in accordance with Company policies relating to work schedules and vesting of awards or as determined by the Committee.  In case of any dispute as to whether and when a termination of Service has occurred, the Committee will have sole discretion to determine whether such termination of Service has occurred and the effective date of such termination (including whether Participant may still be considered to be actively providing Services while on a leave of absence).   
6.Taxes.  
(a)Responsibility for Taxes.  Participant acknowledges that, to the extent permitted by law, regardless of any action taken by the Company or a Parent, Subsidiary or Affiliate employing or retaining Participant (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”) is and remains Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer, if any.  Participant further acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the 

    

RSUs, including, but not limited to, the grant, vesting or settlement of the RSUs and the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends, and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result.  Further, if Participant is subject to Tax-Related Items in more than one jurisdiction, Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.  PARTICIPANT SHOULD CONSULT A TAX ADVISER APPROPRIATELY QUALIFIED IN EACH OF THE JURISDICTIONS, INCLUDING COUNTRY OR COUNTRIES IN WHICH PARTICIPANT RESIDES OR IS SUBJECT TO TAXATION.
(b)Withholding.  Prior to any relevant taxable or tax withholding event, as applicable, to the extent permitted by applicable law, Participant agrees to make arrangements satisfactory to the Company and/or the Employer to fulfill all Tax-Related Items.  In this regard, Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy any withholding obligations for Tax-Related Items by one or a combination of the following:
(i)withholding from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer or any Parent, Subsidiary or Affiliate; or
(ii)withholding from proceeds of the sale of Shares acquired upon settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant to this authorization and without further consent); or 
(iii)withholding Shares to be issued upon settlement of the RSUs, provided the Company only withholds the number of Shares necessary to satisfy no more than the maximum statutory withholding amounts; or
(iv)Participant’s payment of a cash amount (including by check representing readily available funds or a wire transfer); or
(v)any other arrangement approved by the Committee and permitted under applicable law;
all under such rules as may be established by the Committee and in compliance with the Company’s Insider Trading Policy and 10b5-1 Trading Plan Policy, if applicable.
Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable statutory withholding rates or other applicable withholding rates, including up to the maximum permissible statutory rate for Participant’s tax jurisdiction(s) in which case Participant will have no entitlement to the equivalent amount in Shares and may receive a refund of any over-withheld amount in cash in accordance with applicable law.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed to have been issued the full number of Shares subject to the vested RSUs, notwithstanding that a number of the Shares are held back solely for the purpose of satisfying the withholding obligation for Tax-Related Items. 
Finally, Participant agrees to pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items.
7.Nature of Grant.  By accepting the RSUs, Participant acknowledges, understands and agrees that:
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(c)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;
(d)the grant of the RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted in the past; 
(e)all decisions with respect to future RSUs or other grants, if any, will be at the sole discretion of the Company; 
(f)Participant is voluntarily participating in the Plan; 
(g)the RSUs and Participant’s participation in the Plan will not create a right to employment or be interpreted as forming or amending an employment or service contract with the Company, the Employer or any Parent, Subsidiary or Affiliate and shall not interfere with the ability of the Company, the Employer or any Parent, Subsidiary or Affiliate, as applicable, to terminate Participant’s employment or service relationship (if any);
(h)the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not intended to replace any pension rights or compensation;
(i)the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not part of normal or expected compensation for any purpose, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; 
(j)unless otherwise agreed with the Company, the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not granted as consideration for, or in connection with, the service Participant may provide as a director of a Parent, Subsidiary or Affiliate; 
(k)the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty;
(l)no claim or entitlement to compensation or damages will arise from forfeiture of the RSUs resulting from Participant’s termination of Service (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any); and
(m)neither the Company, the Employer nor any Parent, Subsidiary or Affiliate will be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to Participant pursuant to the settlement of the RSUs or the subsequent sale of any Shares acquired upon settlement.
8.No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares.  Participant acknowledges, understands and agrees he or she should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.
9.Data Privacy.  Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Employer, the Company and any Parent, Subsidiary or Affiliate for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan.
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    Participant understands that the Company and the Employer may hold certain personal information about Participant, including, but not limited to, Participant’s name, home address, email address and telephone number, date of birth, social insurance number, passport number or other identification number (e.g., resident registration number), salary, nationality, job title, any shares of stock or directorships held in the Company, details of all RSUs or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.
    Participant understands that Data will be transferred to E*TRADE Financial Services, Solium-Shareworks, or other third party (“Online Administrator”) and its affiliated companies or such other stock plan service provider as may be designated by the Company from time to time, which is assisting the Company with the implementation, administration and management of the Plan. Participant understands that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than Participant’s country.  Participant understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of Data by contacting his or her local human resources representative.  Participant authorizes the Company, Solium Shareworks, or such other stock plan service provider as may be designated by the Company from time to time, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan.  Participant understands that Data will be held only as long as is necessary to implement, administer and manage Participant’s participation in the Plan.  Participant understands if he or she resides outside the United States, he or she may, at any time, view Data, request information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting his or her local human resources representative.  Further, Participant understands that he or she is providing the consents herein on a purely voluntary basis.  If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing Participant’s consent is that the Company would not be able to grant RSUs or other equity awards to Participant or administer or maintain such awards.  Therefore, Participant understands that refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan.  For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that he or she may contact his or her local human resources representative.
Finally, upon request of the Company or the Employer, Participant agrees to provide an executed data privacy consent form (or any other agreements or consents) that the Company or the Employer may deem necessary to obtain from Participant for the purpose of administering Participant’s participation in the Plan in compliance with the data privacy laws in Participant’s country, either now or in the future. Participant understands and agrees that Participant will not be able to participate in the Plan if Participant fails to provide any such consent or agreement requested by the Company and/or the Employer. 
10.Language.  Participant acknowledges that he or she is sufficiently proficient in English to understand the terms and conditions of this Agreement.  Furthermore, if Participant has received this Agreement or any other document related to the RSU and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
11.Appendix.  Notwithstanding any provisions in this Agreement, the RSUs will be subject to any special terms and conditions set forth in any appendix to this Agreement for Participant’s country.  Moreover, if Participant relocates to one of the countries included in the Appendix, the special terms and conditions for such country will apply to Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  The Appendix constitutes part of this Agreement.
12.Imposition of Other Requirements.  The Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the RSUs and on any Shares acquired under the 
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Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
13.Acknowledgement.  The Company and Participant agree that the RSUs are granted under and governed by the Notice, this Agreement and the provisions of the Plan (incorporated herein by reference).  Participant: (a) acknowledges receipt of a copy of the Plan and the Plan prospectus, (b) represents that Participant has carefully read and is familiar with their provisions, and (c) hereby accepts the RSUs subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Notice.  
14.Entire Agreement; Enforcement of Rights.  This Agreement, the Plan and the Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the purchase of the Shares hereunder are superseded. No adverse modification of or adverse amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the parties to this Agreement (which writing and signing may be electronic). The failure by either party to enforce any rights under this Agreement will not be construed as a waiver of any rights of such party.

15.Compliance with Laws and Regulations.  The issuance of Shares will be subject to and conditioned upon compliance by the Company and Participant with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Shares may be listed or quoted at the time of such issuance or transfer.  Participant understands that the Company is under no obligation to register or qualify the Shares with any state, federal or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the Shares.  Further, Participant agrees that the Company shall have unilateral authority to amend the Plan and this RSU Agreement without Participant’s consent to the extent necessary to comply with securities or other laws applicable to issuance of Shares.  Finally, the Shares issued pursuant to this RSU Agreement shall be endorsed with appropriate legends, if any, determined by the Company. 
16.Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, then such provision will be enforced to the maximum extent possible given the intent of the parties hereto.  If such clause or provision cannot be so enforced, then (a) such provision will be excluded from this Agreement, (b) the balance of this Agreement will be interpreted as if such provision were so excluded and (c) the balance of this Agreement will be enforceable in accordance with its terms.  
17.Governing Law and Venue.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto will be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to such state’s conflict of laws rules.  

Any and all disputes relating to, concerning or arising from this Agreement, or relating to, concerning or arising from the relationship between the parties evidenced by the Plan or this Agreement, will be brought and heard exclusively in the United States District Court for the Southern District of New York or, if such court does not have subject matter jurisdiction, the courts of the State of New York sitting in the County of New York, and any appellate courts thereof.  Each of the parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute, and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts is improper or that such proceedings have been brought in an inconvenient forum.  
18.No Rights as Employee, Director or Consultant.  Nothing in this Agreement will affect in any manner whatsoever any right or power of the Company, or a Parent, Subsidiary or Affiliate, to terminate Participant’s Service, for any reason, with or without Cause.
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19.Consent to Electronic Delivery of All Plan Documents and Disclosures.  By Participant’s acceptance of the Notice (whether in writing or electronically), Participant and the Company agree that the RSUs are granted under and governed by the terms and conditions of the Plan, the Notice and this Agreement.  Participant has reviewed the Plan, the Notice and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and Agreement, and fully understands all provisions of the Plan, the Notice and this Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and this Agreement.  Participant further agrees to notify the Company upon any change in Participant’s residence address.  By acceptance of the RSUs, Participant agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company and consents to the electronic delivery of the Notice, this Agreement, the Plan, account statements, Plan prospectuses required by the SEC, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the RSUs and current or future participation in the Plan.  Electronic delivery may include the delivery of a link to the Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion.  Participant acknowledges that Participant may receive from the Company a paper copy of any documents delivered electronically at no cost if Participant contacts the Company by telephone, through a postal service or electronic mail to Stock Administration. Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant’s consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail to Stock Administration.
20.Insider Trading Restrictions/Market Abuse Laws.  Participant acknowledges that, depending on Participant’s country of residence, the broker’s country, or the country in which the Shares are listed, Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affect Participant’s ability to directly or indirectly, accept, acquire, sell or attempt to sell or otherwise dispose of Shares, or rights to Shares (e.g., RSUs), or rights linked to the value of Shares, during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws or regulations in the applicable jurisdiction).  Local insider trading laws and regulations may prohibit the cancellation or amendment of orders Participant placed before possessing the inside information.  Furthermore, Participant may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them to otherwise buy or sell securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. Participant acknowledges that it is Participant’s responsibility to comply with any applicable restrictions and understands that Participant should consult his or her personal legal advisor on such matters.   In addition, Participant acknowledges that he or she read the Company’s Insider Trading Policy, and agrees to comply with such policy, as it may be amended from time to time, whenever Participant acquires or disposes of the Company’s securities.  
21.Foreign Asset/Account, Exchange Control and Tax Reporting. Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements as a result of the acquisition, holding and/or transfer of Shares or cash resulting from his or her participation in the Plan.  Participant may be required to report such accounts, assets, the balances therein, the value thereof and/or the transactions related thereto to the applicable authorities in Participant’s country and/or repatriate funds received in connection with the Plan within certain time limits or according to specified procedures.  Participant acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements and should consult his or her personal legal and tax advisors on such matters.
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22.Code Section 409A.  For purposes of this Agreement, a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Section 409A of the Internal Revenue Code and the regulations thereunder (“Section 409A”).  Notwithstanding anything else provided herein, to the extent any payments provided under this RSU Agreement in connection with Participant’s termination of employment constitute deferred compensation subject to Section 409A, and Participant is deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then such payment shall not be made or commence until the earlier of (i) the expiration of the six-month period measured from Participant’s separation from service from the Company or (ii) the date of Participant’s death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Participant including, without limitation, the additional tax for which Participant would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral.  To the extent any payment under this RSU Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. 
23.Award Subject to Company Clawback or Recoupment.  The RSUs shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant’s employment or other Service that is applicable to Participant.  In addition to any other remedies available under such policy, applicable law may require the cancellation of Participant’s RSUs (whether vested or unvested) and the recoupment of any gains realized with respect to Participant’s RSUs.
BY ACCEPTING THIS AWARD OF RSUS, PARTICIPANT AGREES TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.
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APPENDIX
PELOTON INTERACTIVE, INC.
2019 EQUITY INCENTIVE PLAN
GLOBAL RESTRICTED STOCK UNIT AWARD AGREEMENT

COUNTRY SPECIFIC PROVISIONS FOR EMPLOYEES OUTSIDE THE U.S.

Terms and Conditions

This Appendix includes additional terms and conditions that govern the RSUs granted to Participant under the Plan if Participant resides and/or works in one of the countries below.  This Appendix forms part of the Agreement.  Any capitalized term used in this Appendix without definition will have the meaning ascribed to it in the Notice, the Agreement or the Plan, as applicable. 

If Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which Participant is currently working, or Participant transfers employment and/or residency between countries after the Date of Grant, the Company will, in its sole discretion, determine to what extent the additional terms and conditions included herein will apply to Participant under these circumstances.

Notifications

This Appendix also includes information relating to exchange control, securities laws, foreign asset/account reporting and other issues of which Participant should be aware with respect to Participant’s participation in the Plan.  The information is based on the securities, exchange control, foreign asset/account reporting and other laws in effect in the respective countries as of August 2019.  Such laws are complex and change frequently.  As a result, Participant should not rely on the information herein as the only source of information relating to the consequences of Participant’s participation in the Plan because the information may be out of date at the time that Participant vests in the RSUs, sells Shares acquired under the Plan or takes any other action in connection with the Plan.

In addition, the information is general in nature and may not apply to Participant’s particular situation, and the Company is not in a position to assure Participant of any particular result.  Accordingly, Participant should seek appropriate professional advice as to how the relevant laws in Participant’s country may apply to Participant’s situation.

Finally, if Participant is a citizen or resident of a country, or is considered resident of a country, other than the one in which Participant is currently working and/or residing, or Participant transfers employment and/or residency after the Date of Grant, the information contained herein may not apply to Participant in the same manner.

CANADA
Terms and Conditions
Settlement

This provision supplements Section 1 of the Agreement:
 
Notwithstanding any discretion in the Plan, the Notice or the Agreement to the contrary, settlement of the RSUs shall be in Shares and not, in whole or in part, in the form of cash.

Termination

This provision replaces Section 5 of the Agreement:

If Participant’s Service is terminated for any reason, all unvested RSUs shall be forfeited to the Company forthwith, and all rights of Participant to such RSUs shall immediately terminate. For the avoidance of doubt, it is noted that, except as may be agreed to in the sole discretion of the Company, if Participant’s Service is terminated by his/her employer for any reason or if Participant’s Service is terminated due to his/her voluntary resignation, all unvested RSUs shall be forfeited as of the date that is the earlier of: (i) the date Participant’s employment is terminated, and (ii) the date Participant is no longer actively providing services to the Company or any of its Subsidiaries (regardless of the reason for such termination of Service and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any), 
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and no vesting shall continue during any notice period in relation to his/her termination of Service, whether specified under contract or statutory, regulatory or common law, including any “garden leave” or similar period. In case of any dispute as to whether a termination of Service has occurred, the Company shall have sole discretion to determine whether such termination has occurred and the effective date of such termination of Service for purposes of the Plan.

Securities Law Matters

Participant is permitted to sell the Shares acquired under the Plan through the designated broker appointed under the Plan, if any, provided the resale of Shares acquired under the Plan takes place outside of Canada through the facilities of a stock exchange on which the Shares are listed (e.g., the Nasdaq).

Notifications; Other 

Foreign Asset / Account Reporting Notice
If Participant is a Canadian resident, Participant is required to report his or her foreign specified property (including Shares and rights to receive Shares such as RSUs) on Form T1135 (Foreign Income Verification Statement) if the total value of such foreign specified property exceeds C$100,000 at any time during the year. RSUs must be reported (generally at nil cost) if the C$100,000 cost threshold is exceeded because of other foreign property he or she holds. When Shares are acquired, their cost generally is the adjusted cost base (“ACB”) of the Shares which would ordinarily equal the fair market value of the Shares at the time of acquisition, but if other Shares are also owned, this ACB may have to be averaged with the ACB of the other Shares.

The following provisions apply to Participants who are residents of Quebec:

Data Privacy  

Participant hereby authorizes the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan. Participant further authorizes the Company and any Parent, Subsidiary or Affiliate and the administrator of the Plan to disclose and discuss the Plan with their advisors. Participant further authorizes the Company and any Parent, Subsidiary or Affiliate to record such information and to keep such information in Participant's file.

Language Consent
The parties acknowledge that it is their express wish that this Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. 

Consentement Relatif à la Langue Utilisée 
Les parties reconnaissent avoir expressément souhaité que la convention («Agreement»), ainsi que tous les documents, avis et procédures judiciares, éxécutés, donnés ou intentés en vertu de, ou liés directement ou indirectement à la présente convention, soient rédigés en langue anglaise.

GERMANY
Terms and Conditions

General Matters.  Participant acknowledges and agrees that Participant’s sole contact and sole contractual partner regarding the Plan and the RSU is the Company and any rights and entitlements pursuant to the Plan are granted to Participant on an exclusively voluntary basis and do not create any claims against the Company, the Employer and/or any of their Subsidiaries, Parents or Affiliates.  Even if there is a repeated grant of rights and without express notification that the grant is made voluntarily, Participant has no legal claim for future grants and explicitly acknowledges the voluntary nature of such grants.  All grants remain in the complete discretion of the Company.  The Company reserves the right to determine the scope of beneficiaries and the conditions of the Plan, to the extent permitted by applicable law.  Additionally, the RSU does not form part of Participant’s contractual compensation and is not to be considered part of his or her normal or expected compensation for purposes of calculating severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

Securities Law Matters.  Instruments granted under the Plan and the RSU may be subject to the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the 
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prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (the “Prospectus Regulation”) and the German Securities Prospectus Act (Wertpapierprospektgesetz – “WpPG”). The Company is of the opinion that the participation in the Plan and the receipt/exercise of the RSU by the Participants is exempt from the requirement to approve and publish a prospectus or further documents under the Prospectus Regulation and/or WpPG. However, the Company reserve all rights to amend the Plan and/or the Notice at any time to the extent required to be compliant with the Prospectus Regulation, WpPG and/or other laws and regulations applicable in Germany.

Notifications, Other

Exchange Control.  Cross-border payments in excess of EUR 12,500 (including transactions made in connection with the sale of securities) must be reported monthly to the German Federal Bank (Bundesbank).  If Participant makes or receives a payment in excess of this amount in connection with Participant’s participation in the Plan, Participant must report the payment to Bundesbank electronically, no later than the fifth day of the month following the month in which the payment was received, using the “General Statistics Reporting Portal” (“Allgemeines Meldeportal Statistik”) available via Bundesbank’s website (www.bundesbank.de).

Tax Matters. Participant acknowledges its legal obligation under German law to inform the Employer of any benefit received from the Company and the Employer ́s duty and will comply with that duty without undue delay. Participant acknowledges that in case of non-compliance with such duty, the Employer may inform the competent authority of such non-compliance and that non-compliance may have further legal consequences for the Participant.

If Participant has not paid or provided for Tax-Related Items within 10 days following the end of the month in which the relevant benefit is attributable to the Participant for German wage tax purposes, to the extent permitted by applicable law, the amount of any Tax-Related Items borne by the Company or any subsidiary towards the competent authority shall constitute a loan owed to the Company or, if the Company is not the employer for German wage tax purposes, the Employer, which will bear interest at (i) the relevant reference market rate published by the German Federal Bank as referenced in section 2.1.2 of the Federal Ministry ́s published guidance on the tax treatment of employer loans by letter of 19 May 2015 or (ii) the lowest rate deemed acceptable under any Federal Ministry ́s successor guidance to the guidance mentioned under (i) above.  If Tax-Related Items due are not collected from or paid by Participant by their due date, it is possible that the German tax authorities will qualify the amount of any uncollected Tax-Related Items as a benefit to Participant, on which additional income tax would be payable.  In such case, Participant will be responsible for any taxes that may be due on this additional benefit and for reimbursing the Company and/or the Employer for any Tax-Related Items on this additional benefit.

TAIWAN
Terms and Conditions

General Matters 

Participant acknowledges and agrees that the offer of this RSU has not been and will not be registered with the Financial Supervisory Commission of the Republic of China (ROC) pursuant to relevant securities laws and regulations in the ROC, and may not be offered or sold within the ROC through a public offering or in a circumstance which constitutes an offer within the meaning of the Securities and Exchange Act of the ROC that requires a registration or approval of the Financial Supervisory Commission of the ROC.

Notifications

Exchange Control

According to the current foreign exchange laws and regulations, any inward or outward remittance involving non-New Taiwan Dollar currency will be counted towards the foreign exchange quota, that is, each Taiwan individual has an annual foreign exchange quota of US$5 million for inward and outward remittances, respectively, without having to obtain any prior approval from the Central Bank of the ROC. 
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The Participant shall be responsible for seeking the special approval for the Central Bank should any inward and outward remittances of foreign exchange that exceed the US$5 million annual quota.

Tax Matters

According to the ruling issued by the Ministry of Finance (“MOF”) (Ref. No.: Tai-Tsai-Shuei-09404527550) in respect of the taxation of employee stock option offered by foreign companies to the employees of their subsidiaries/branches/representative offices in Taiwan, the difference between the exercise price and the market price of the stocks at the time of exercise (economic benefit) shall be deemed "other income" of the employee and is subject to income tax. Hence, Participant shall be responsible for including such income in his/her annual income tax return and paying applicable income tax thereon for the year in which he/she exercises the Option should any gain is realized therefrom. 

Note: The representative office or subsidiary should have no tax-withholding obligation for the employee's other income, but is required to (i) complete non-withholding tax statements and file these, together with other relevant documents, with the competent tax authorities by January 31 of the following year, and (ii) issue a non-withholding tax statement to each of the participating employees on or before February 10 of the following year.

UNITED KINGDOM
Participant acknowledges and agrees to the terms of the UK Sub-Plan in the addendum to the Peloton Interactive, Inc. 2019 Equity Incentive Plan, including but not limited to the provisions of sections 2.2 to 2.5 inclusive.
All references to Tax-Related Items above shall be deemed to include UK income tax and national insurance contributions (“NICs”).
Paragraph 11 above shall not apply to UK Employees. Participant understands that for the purposes of administering this Agreement and the Plan, the Employer, the Company and any Parent or Subsidiary will collect and process information relating to him or her in accordance with the privacy notice currently available on the Company’s intranet.

Participant acknowledges and understands that (a) Data will be transferred to E*TRADE Financial Services, Solium-Shareworks, or other third party (“Online Administrator”) and its affiliated companies or such other stock plan service provider as may be designated by the Company from time to time, which is assisting the Company with the implementation, administration and management of the Plan, (b) that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country may have different data privacy laws and protections than my country and (c) that he may request a list with the names and addresses of any potential recipients of Data by contacting the local human resources representative.

AUSTRALIA

Termination.   The following provisions replace Section 5 of the Agreement in its entirety:
If Participant’s Service terminates for any reason, all unvested RSUs will be forfeited to the Company forthwith, and all rights of Participant to such RSUs will immediately terminate without payment of any consideration to Participant.  Unless otherwise determined by the Committee in its absolute discretion, Participant’s Service will be considered terminated (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) as of the date Participant’s employment with or service to the Company, its Parent and its Subsidiaries or Affiliates terminates (the “Termination Date”); provided that the Committee may provide, in its absolute discretion, that the Termination Date shall occur on any earlier date on which the Participant is no longer actively providing services to the Company, its Parent and its Subsidiaries or Affiliates (e.g., the Committee may provide that the Participant’s Service will not include any contractual notice period worked by Participant or any period of “garden leave” served by Participant or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any).  Participant acknowledges and agrees that, to the extent permitted by Law, the Vesting Schedule may change prospectively in the event Participant’s service status changes between full- and part-time and/or in the event Participant is on a leave of absence and/or in the event Participant is on a contractual notice period or any period of “garden leave” or similar period mandated 
11

under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any, in accordance with Company policies relating to work schedules and vesting of awards or as determined by the Committee. In case of any dispute as to whether and when a termination of Service has occurred, the Committee will have sole discretion to determine whether such termination of Service has occurred and the effective date of such termination for the purposes of the Plan.

No financial product advice.   No financial product advice is provided in this Agreement, the Notice or the Plan (the “Plan Documents”) and nothing in the Plan Documents should be taken to constitute a recommendation or statement of opinion that is intended to influence a person or persons in making a decision to participate in the Plan. The Plan Documents do not take into account the objectives, financial situation or needs of any particular person. Before acting on the information contained in the Plan Documents, or making a decision to participate in the Plan, the Participant should seek professional advice from an independent person who is licensed by the Australian Securities and Investments Commission (“ASIC”) to give such advice as to whether participation in the Plan is appropriate in light of the Participant’s own circumstances.
Offer made without disclosure.   An offer to participate in the Plan, if received in Australia, is made without disclosure to investors in reliance on conditional relied provided by ASIC.
Risks.   Participation in the Plan involves a number of risks including that:
a)An RSU may be forfeited under the Plan (for example, because a Participant’s Service is terminated), in which case all of the Participant’s rights under the Plan in respect of that RSU (including his or her right to receive Shares, cash or other property on the settlement of the RSU) will be forfeited.

b.The price at which Shares trade on NASDAQ is volatile and moves up and down with market sentiment as well as factors which are specific to the Company.

c.RSUs are not Shares and may be treated differently to Shares in certain corporate actions.

d.Participating in the Plan, and holding RSUs or Shares may have tax implications for you and the tax regime applying to you may change.
The information above is only general information about the risks of participating in the Plan. There may be other risks of participating in the Plan that are specific to a Participant’s circumstances.
Share price.   The current and historical market prices of Shares will be available on the NASDAQ website, accessible at www.nasdaq.com, using the Company’s NASDAQ Code: PTON (quoted in US dollars).  If a Participant is unable to locate the current market price of a Share there or would like to know the current market price of Shares in Australian dollars, please make a request to equity@onepeloton.com and the Company will provide this information within a reasonable period of receiving the request.
Taxation.   Participation in the Plan and holding RSUs or Shares may have taxation implications.  The Participant should consider obtaining independent professional advice to clarify his or her taxation position in relation to his or her participation in the Plan.
Data privacy.   Section 9 of the Agreement is supplemented for Australian employees as follows: 
The Participant acknowledges that, in addition to the entities specified in the Agreement, Data may be provided by the Company to any employee benefit trust, registrars, brokers or third party administrators of the Plan and (if relevant) future purchasers of the Company, or the Subsidiary, Affiliate or business for which the Participant works, and consents to any such disclosure. 
The Participant consents to disclosure of Data to the Australian Tax Office, where required in accordance with the relevant Subsidiary or Affiliate’s reporting obligations under Australian tax legislation.
12

The Participant acknowledges that he or she can access further information regarding data privacy in the Company’s Privacy Policy, including about how the Participant can access and seek correction of his or her personal information and make a complaint if he or she has any concerns regarding the treatment of Data.

13kevincornilscontract

4144-6457-0897.1        Exhibit 10.9    Dated February 1, 2018                      PELOTON INTERACTIVE UK LIMITED    and  KEVIN CORNILS                          EMPLOYMENT CONTRACT                              TABLE OF CONTENTS  1. Interpretation ................................................................................................................3  2. Term of appointment ................................................................................................... 4  3. Other appointments ..................................................................................................... 4  4. Duties .......................................................................................................................... 5  5. Place of work .............................................................................................................. 6  6. Hours of work .............................................................................................................. 7  7. Salary .......................................................................................................................... 7  8. Bonus .......................................................................................................................... 7  9. Private medical insurance ........................................................................................... 8  10. Benefits ....................................................................................................................... 8  11. Expenses .................................................................................................................... 8  12. Holidays ...................................................................................................................... 9  13. Incapacity .................................................................................................................... 9  14. Confidential Information............................................................................................. 10  15. Payment in lieu of notice ........................................................................................... 12  16. Garden leave ............................................................................................................ 14  17. Termination without notice ......................................................................................... 15  18. Obligations on termination ........................................................................................... 15  19. Disciplinary and grievance procedures ...................................................................... 16  20. Pensions ................................................................................................................... 16  21. Non Competition ......................................................................................................... 16  22. Inventions and improvements .................................................................................... 19  23. Collective agreements .............................................................................................. 21  24. Notices ...................................................................................................................... 21  25. Entire agreement. ...................................................................................................... 22  26. Changes to terms of employment. ............................................................................. 22  27. Variation ................................................................................................................... 22  28. Counterparts .............................................................................................................. 22  29. Third party rights ....................................................................................................... 22  30. Governing law ........................................................................................................... 22  31. Jurisdiction ................................................................................................................ 23    3  4144-6457-0897.1        Exhibit 10.9    This Agreement is dated February 1, 2018    Parties    (1)  PELOTON INTERACTIVE UK LIMITED a company incorporated in the United  Kingdom with company number 11174745 whose registered office is located at 9th  Floor, 107 Cheapside, London EC2V 6ON (the "Company"); and    (2) KEVIN CORNILS of 59a Eton Avenue, London NW3 3ET (the "Employee").  Agreed terms  1. Interpretation    1.1 The definitions and rules of interpretation in this clause 1 apply in this Agreement.    "Appointment"    "Board"  "Cause"  "Change of Control"                            "Commencement  Date"    "Financial Year"      "Garden Leave"      "Good Reason"  the employment of the Employee by the Company on  the terms of this Agreement.    the board of directors of the Company (including any  committee of the board duly appointed by it).    has the meaning given to is in clause 17 of this  Agreement.    (i) the consummation of a merger or consolidation of  the Company with or into another entity; or (ii) the  dissolution, liquidation or winding up of the Company.  The foregoing notwithstanding, a merger or  consolidation of the Company does not constitute a  "Change in Control" if immediately after the merger or  consolidation a majority of the voting power of the  capital stock of the continuing or surviving entity, or  any direct or indirect parent corporation of the  continuing or surviving entity, will be owned by the  persons who were the Company's stockholders  immediately prior to such merger or consolidation in  substantially the same proportions as their ownership  of the voting power of the Company's capital stock  immediately prior to the merger or consolidation.    1 February 2018.    the Company's financial year commencing on 1 March  and ending on 28/29 February in the following year.    any period during which the Company has exercised  its rights under clause 16.    has the meaning given to it in clause 15 of this  Agreement.  4  4144-6457-0897.1        Exhibit 10.9    "Group Company"      "Incapacity"      "Performance Targets"          ''SSP"    "Staff Handbook"    "Subsidiary and  Holding Company"    "Termination Date"  the Company, its Subsidiaries or Holding Companies  from time to time and any Subsidiary of any Holding  Company from time to time.    any sickness, injury or other medical disorder or  condition which prevents the Employee from carrying  out his duties.    the targets relating to the Employee's personal  performance and/or such business performance  criteria as agreed between the Employee and the  Board in the relevant Financial Year and notified to the  Employee at the beginning of that Financial Year.    statutory sick pay.    the Company's staff handbook as issued and  amended from time to time.    in relation to a company mean "subsidiary" and  "holding company" as defined in section 1159 of the  Companies Act 2006.    the date of termination of the Employee's employment  with the Company.    1.2 The headings in this Agreement are inserted for convenience only and shall not  affect its construction.    1.3 A reference to a particular law is a reference to it as it is in force for the time being  taking account of any amendment, extension, or re-enactment and includes any  subordinate legislation for the time being in force made under it.    1.4 Unless the context otherwise requires, a reference to one gender shall include a  reference to the other genders.    1.5 Unless the context otherwise requires, words in the singular include the plural and  in the plural include the singular.    2. Term of appointment    2.1 The Appointment shall commence on the Commencement Date and shall continue,  subject to the remaining terms of this Agreement, until terminated by either party  giving to the other not less than 6 months' prior notice in writing.    2.2 No employment with a previous employer counts towards the Employee's period of  continuous employment with the Company.    3. Other appointments    3.1 Save as permitted under clause 3.2, the Employee shall not at any time during the  continuance of the Appointment, without the previous written consent of the  President, either as principal, employee or agent, carry on or be engaged,  concerned or interested either directly or indirectly in any other trade, profession,  

 

5  4144-6457-0897.1        Exhibit 10.9    business or occupation (including any public or private activity which in the  reasonable opinion of the Company may interfere with the proper performance of  his duties) or hold any directorship or other office in any company or other body  whether incorporated or unincorporated.    3.2 Without prejudice to clause 3.1, the Employee may be permitted to accept  appointment and provide services as a non-executive director which are unrelated  to any Group Company, subject to the Employee obtaining the prior written consent  to each specific appointment from the President (such consent not to be  unreasonably withheld) and provided that the duties of such appointment shall not  conflict with the Employee's duties to any Group Company under this Agreement or  otherwise and the entity offering such appointment does not compete with the  Company or any Group Company.  4. Duties    4.1 The Employee shall serve the Company as Managing Director of International or in  such other related capacity as the Company shall direct. In addition to the duties  which this position normally entails, the Employee shall also carry out such other  duties as the Company may require him to perform from time to time. The  Company may at any time and at its sole and absolute discretion remove from, add  to or otherwise vary any of the Employee's duties.    4.2 During the Appointment the Employee shall:    4.2.1 (subject to clause 3 above), unless prevented by Incapacity, devote the  whole of his time, attention and abilities to the business of the Company  and any Group Company of which he is an officer or consultant;    4.2.2 faithfully, diligently and competently exercise and carry out to the best of  his ability all such powers and duties as may from time to time be assigned  to him by the Company together with such person or persons as the  Company may appoint to act jointly with him;    4.2.3 comply with all reasonable and lawful directions given to him by the  Company;    4.2.4 promptly make such reports to the President in connection with the affairs  of the Company and any Group Company of which he is an officer or  consultant on such matters and at such times as are reasonably required;    4.2.5 report his own wrongdoing and any wrongdoing or proposed wrongdoing of  any other employee or director of any Group Company to the President  immediately on becoming aware of it;    4.2.6 use his best endeavours to promote, protect, develop and extend the  business of the Company and any Group Company of which he is an  officer or consultant; and    4.2.7 consent to the Company monitoring and recording any use that he makes  of the Company's electronic communications systems for the purpose of  ensuring that the Company's rules are being complied with and for  legitimate business purposes.  6  4144-6457-0897.1        Exhibit 10.9    4.3  The Appointment and the Employee's continued employment with the Company is  subject to and conditional upon his being entitled to be lawfully employed by the  Company in the UK and the Employee providing evidence, satisfactory to the  Company, of the same. The Employee will not be permitted to commence  employment unless and until he has done this to the Company's satisfaction. The  Employee agrees to immediately notify the Company about any change to his  entitlement to work for the Company in the UK, including, but not limited to, the  cessation of such entitlement. If the Employee's lawful employment in the UK is  subject to the Company making an application for a visa, permission or any other  approval in respect of the same, it is a condition of the Appointment and the  Employee's continued employment that he cooperates with any such application  and provides the Company with any information, assistance and documents as the  Company may specify.    4.4 Should the Employee:    4.4.1 cease, or appear in the Company's belief to have ceased, to be entitled to  be lawfully employed by the Company in the UK;    4.4.2 fail to provide upon request documents to demonstrate that he is entitled to  be lawfully employed by the Company in the UK; or    4.4.3 not provide the Company with such information, assistance or documents  as it may specify in relation to any application relating to the Employee's  lawful employment in the UK,    the Company may terminate the Appointment without notice and without  compensation or payment in lieu of notice.    4.5 The Employee shall comply with such anti-corruption and bribery policy and related  procedures as the Company may issue.    4.6 The Company takes a zero-tolerance approach to tax evasion. The Employee must  not engage in any form of facilitating tax evasion, whether under UK law or under  the law of any foreign country. The Employee must immediately report to the  President any request or demand from a third party to facilitate the evasion of tax or  any concerns that such a request or demand may have been made.    4.7 The Employee shall comply with any rules, policies and procedures in force from  time to time including those set out in any Staff Handbook the Company may issue.  Such rules, policies, procedures or Handbook do not form part of this Agreement.    4.8 All documents, manuals, hardware and software provided for the Employee's use  by the Company, and any data or documents (including copies) produced,  maintained or stored on the Company's computer systems or other electronic  equipment (including mobile phones}, remain the property of the Company.    5. Place of work    5.1 The Employee's normal place of work is 5th Floor, The Stanley Building, 7 Pancras  Square, London N1C 4AG or such other place within the United Kingdom which the  Company may reasonably require for the proper performance and exercise of his  duties.        Exhibit 10.9    5.2 The Employee agrees to travel on the Company's business (both within the United  Kingdom or abroad) as may be required for the proper performance of his duties  under the Appointment.    5.3 During the Appointment the Employee shall not be required to work outside the  United Kingdom for any continuous period of more than one month.    6. Hours of work    6.1 The Employee's normal working hours shall be 9.00am to 6.00pm on Mondays to  Fridays and such additional hours as are reasonable and necessary for the proper  performance of his duties (it being anticipated that the performance of his duties  may require the Employee to work outside the Company's normal business hours).  The Employee acknowledges that he shall not receive further remuneration in  respect of such additional hours.    6.2 Due to the autonomous nature of the Employee's role the duration of working time  cannot be measured or monitored and, accordingly the Employee's employment  falls within the scope of regulation 20 of the Working Time Regulations 1998.    7. Salary    7.1 The Employee shall be paid an initial salary of £270,000.00 per annum (inclusive of  any fees due to the Employee from any Group Company as an officer of such  Group Company).    7.2  The Employee's salary shall accrue from day to day at a rate of 1/260 of the  Employee's annual salary and be payable monthly in arrears on or about the last  working day of each month directly into the Employee's bank or building society. It  shall be paid subject to such deductions as the Company may make for income tax,  employee's National Insurance contributions and any other taxes, social security  contributions and withholdings as the Company may deduct    7.3 The Employee's salary shall be reviewed and adjusted in accordance with the  Company's employee compensation policies in effect from time to time. The  Company is under no obligation to award an increase following a salary review.  There will be no review of the salary after notice has been given by either party to  terminate the Appointment.  7.4 The Company may deduct from the salary, or any other sums owed to the  Employee, any money owed to any Group Company by the Employee.    8. Bonus    8.1 The Employee shall be eligible to be paid a bonus in relation to each Financial Year  of the Appointment, with effect from the Financial Year commencing on 1 March  2018 on the terms set out in this clause.  8.2 The amount of any bonus to be paid in any particular Financial Year (and whether  any bonus is payable at all) shall be determined by the Board or its Compensation  Committee based on the Employee's achievement of the Performance Targets.  The target bonus shall be 100% of the Employee's base salary. The actual bonus  may be higher or lower than the target bonus amount.      7  4144-6457-0897.1  8  4144-6457-0897.1        Exhibit 10.9    8.3 The bonus, if any, will be payable within 2.5 months following the end of the  Financial Year to which it relates.    8.4 Any bonus paid will not be pensionable.    9. Private medical insurance    9.1 The Employee shall be entitled to participate in the Company's private medical  insurance scheme (for the benefit of the Employee, his spouse or civil partner and  children under 18 years) subject to:    9.1.1 the terms of that scheme, as amended from time to time;    9.1.2 the rules or insurance policy of the relevant insurance provider, as  amended from time to time; and    9.1.3 the Employee and the Employee's spouse or civil partner and any children  under the age of 18 satisfying the normal underwriting requirements of the  relevant insurance provider and the premium being at a rate which the  Company considers reasonable.    9.2 If the insurance provider refuses for any reason to provide private medical  insurance benefit to the Employee or the Employee's spouse, civil partner or  children the Company shall not be liable to provide to the Employee any  replacement benefit of the same or similar kind or to pay any compensation in lieu  of such benefit.    9.3 The Company in its sole and absolute discretion reserves the right to discontinue,  vary or amend the scheme (including the level of the Employee's cover) at any time  on reasonable notice to the Employee.    10. Benefits    10.1 The Employee may participate in such other benefits schemes as the Company  shall make available from time to time, subject in each case to the terms of any  relevant insurance policy (as amended from time to time), the rules of the relevant  scheme and the Employee (and, where applicable, their spouse or civil partner and  children) being eligible to participate in or benefit from such schemes pursuant to  their rules at a cost and on terms which are acceptable to the Company.    10.2 The Company may replace or withdraw such schemes at any time on reasonable  notice to the Employee.    11. Expenses    11.1 The Company shall reimburse (or procure the reimbursement of) all reasonable  expenses wholly, properly and necessarily incurred by the Employee in the course  of the Appointment, subject to production of VAT receipts or other appropriate  evidence of payment.    11.2 The Employee shall abide by the Company's policies on expenses as  communicated to him from time to time.  

 

9  4144-6457-0897.1        Exhibit 10.9    12. Holidays    12.1 The Company's holiday year runs between January and December. If the  Appointment commences or terminates part way through a holiday year, the  Employee's entitlement during that holiday year shall be calculated on a pro-rata  basis.    12.2 The Employee shall be entitled to unlimited paid holiday in each holiday year  together with the usual public holidays in England and Wales. The Employee  should take a minimum of 20 days' paid holiday each year.    12.3 Holiday shall be taken at such time or times as shall be approved in advance by the  President.    12.4 The Employee shall have no entitlement to any payment in lieu of accrued but  untaken holiday except on termination of the Appointment. The amount of such  payment in lieu shall be 11260th of the Employee's salary for each untaken day of  the Employee's statutory entitlement under the Working Time Regulations.    12.5 If either party has served notice to terminate the Appointment, the Company may  require the Employee to take any accrued but unused statutory holiday entitlement  during the notice period (whether or not the Employee is suspended or on a period  of garden leave in accordance with clause 19 or 16 respectively).    13. Incapacity    13.1 If the Employee is absent from work due to Incapacity, the Employee shall notify the  President of the reason for the absence as soon as possible but no later than 10 am  on the first day of absence.    13.2 The Employee shall certify his absence in accordance with such requirements that  the Company shall impose from time to time.    13.3 Subject to the Employee's compliance with this Agreement and completion of such  absence certification and notification requirements as the Company shall impose,  the Employee shall be entitled to receive his full salary and contractual benefits  during any periods of sickness absence up to a maximum of one month in any  rolling 12 month period. Those payments shall be inclusive of any SSP due. If  contractual sick pay has been used in full the Employee shall be entitled to SSP  only thereafter.    13.4 The Employee agrees to consent to medical examinations (at the Company's  expense) by a doctor nominated by the Company should the Company so require.  The Employee agrees that any report produced in connection with any such  examination may be disclosed to the Company and the Company may discuss the  contents of the report with the relevant doctor.    13.5 If the Incapacity is or appears to be occasioned by actionable negligence, nuisance  or breach of any statutory duty on the part of a third party in respect of which  damages are or may be recoverable, the Employee shall immediately notify the  Board of that fact and of any claim, settlement or Judgment made or awarded in  connection with it and all relevant particulars that the Board may reasonably  require. The Employee shall if required by the Board, co-operate in any related legal  proceedings and refund to the Company that part of any damages or compensation  10  4144-6457-0897.1        Exhibit 10.9    recovered by him relating to the loss of earnings for the period of the Incapacity as  the Board may reasonably determine less any costs borne by him in connection  with the recovery of such damages or compensation, provided that the amount to  be refunded shall not exceed the total amount paid to the Employee by the  Company in respect of the period of Incapacity.    13.6 The rights of the Company to terminate the Appointment under the terms of this  Agreement apply even when such termination would or might cause the Employee  to forfeit any entitlement to sick pay or other benefits.    14. Confidential Information    14.1 In this Agreement unless the context otherwise requires, "Confidential Information"  means any:    14.1.1 trade secret or confidential or secret information concerning the business  development, affairs, future plans, business methods, connections,  operations, accounts, finances, organisation, processes, policies or  practices, designs, dealings, business, trading, management systems,  maturing new business opportunities or know-how of or relating to the  Company and/or to any other Group Company and/or any of its or their  suppliers, agents, distributors, clients or customers;    14.1.2 confidential computer software, computer-related know-how, passwords,  computer programmes, specifications, object codes, source codes,  network designs, business processes, business logic, inventions,  improvements and/or modifications relating to or belonging to the  Company and/or any other Group Company;    14.1.3 details of the Company's or any other Group Company's financial  projections or projects, prices and price lists, pricing strategy or policies,  advertising, marketing or development plans, product development plans  or strategies, fee levels, commissions and commission structures, discount  structures, advertising and promotional material, market share and pricing  statistics, marketing surveys and plans, market research reports and their  interpretation, sales targets and statistics, sales techniques;    14.1.4 confidential research, report or development undertaken by or for the  Company or any other Group Company;    14.1.5 secret or confidential information concerning the Company's and/or any  other Group Company's actual or potential clients or customers or  suppliers or any other person with which the Company or any other Group  Company has dealings, including but not limited to client, customer,  supplier or other lists, lists and details of contracts or proposed contracts,  and details of relationships or arrangements or terms of business with, or  knowledge of the needs or the requirements of, such persons;    14.1.6 secret or confidential details of or information regarding the nature or origin  of any services provided, marketed, sold or obtained by the Company or  any other Group Company;    14.1.7 details of or information regarding the Company's or any other Group  Company's development or staffing plans;  11  4144-6457-0897.1        Exhibit 10.9    14.1.8 information of a personal or otherwise of a confidential nature relating to  fellow employees, directors or officers of and/or consultants to, the  Company and/or any other Group Company;    14.1.9 confidential information concerning, or details of, any competitive business  pitches, and/or target details;    14.1.10 details of or information regarding the nature and origin of any goods  and/or services provided, marketed or sold, obtained or brokered by the  Company or any other Group Company;    14.1.11 documents or information marked as confidential or which have been  supplied to the Employee in confidence or which the Employee has been  informed are confidential or which the Employee might reasonably be  aware are confidential; and    14.1.12 documents or information which have been given to the Company or any  other Group Company in confidence by any customer, supplier or other  person    whether such information is in oral, written or any other form.    14.2 The Employee acknowledges that in the course of the Appointment he will have  access to Confidential Information. The Employee has therefore agreed to accept  the restrictions in this clause 14.    14.3 The Employee shall not (except in the proper course of his duties), either during the  Appointment or at any time after its termination (however arising):    14.3.1 use, divulge or reveal to any person, firm or corporation whatsoever (and  shall use his best endeavours to prevent the publication or disclosure of)  any Confidential Information which may come to his knowledge during the  Appointment;    14.3.2 use or attempt to use any Confidential Information for his own purposes or  for any purposes other than the purposes of the Company or any other  Group Company or in any manner which may injure or cause loss either  directly or indirectly to the Company or any other Group Company or its  business or may be likely so to do; or    14.3.3 cause or bring about (including through any failure to exercise reasonable  care and diligence) any unauthorised disclosure of any Confidential  Information that he shall come to know or have received or obtained at any  time (before or after the date of this Agreement).    14.4 This clause 14 shall not apply to:    14.4.1 any use or disclosure authorised by the Board or required by law;    14.4.2 any information which is already in, or comes into, the public domain other  than through the Employee's unauthorised disclosure; or    14.4.3 any protected disclosure within the meaning of section 43A of the  Employment Rights Act 1996.  12  4144-6457-0897.1        Exhibit 10.9    14.5 The Employee shall promptly disclose to the Company any information which  comes into his possession which affects adversely or may affect adversely the  Company or the business of the Company or any other Group Company. Such  information shall include (but shall not be limited to):    14.5.1 the plans of any employee or worker to leave the Company or any other  Group Company (whether alone or in concert with other employees);    14.5.2 the plans of any employee or worker (whether alone or in concert with  other employees) to join a competitor or to establish a business in  competition with the Company or any other Group Company;    14.5.3 any steps taken by the employee or worker to implement either of such  plans; and    14.5.4 the misuse by any employee or worker of any Confidential Information  belonging to the Company or any other Group Company.    15. Payment in lieu of notice    15.1 Notwithstanding clause 2, subject to the terms of this clause 15 the Company may,  in its sole and absolute discretion, terminate the Appointment at any time and with  immediate effect by notifying the Employee that the Company is exercising its right  under this clause 15 and that it will make within 60 days a payment in lieu of notice  ("Payment in Lieu"), or the first instalment of any Payment in Lieu, to the  Employee.    15.2 If a Payment in Lieu is made, it will be comprised of an amount equal to the basic  salary (as at the date of termination) which the Employee would have been entitled  to receive under this Agreement during the notice period referred to at clause 2 (or,  if notice has already been given, during the remainder of the notice period) together  with a payment in respect of a bonus (pursuant to clause 8 or any provisions that  may be agreed in place of clause 8) in respect of the Financial Year preceding the  year in which notice of termination of employment and/or termination of employment  takes place, where such bonus would otherwise have been paid during the  Employee's notice period less income tax and National Insurance contributions.  The Payment in Lieu will be paid in instalments over the period from the date on  which employment is terminated early by reason of the Company electing to make a  Payment in Lieu, to the date which is the expiration date of what would otherwise  have been the Employee's notice period. The instalment payments will commence  within 60 days after the Termination Date.    15.3 In addition, in the following circumstances:    15.3.1 if the Company is terminating the employment of the Employee without  Cause; or    15.3.2 the Employee has served notice of termination of employment with Good  Reason; or    15.3.3 in such other circumstances as the Company shall determine or the parties  may agree; and  

 

13  4144-6457-0897.1        Exhibit 10.9    15.3.4 subject to the Employee and the Company having agreed the terms of and  have completed a settlement agreement pursuant to section 203 of the  Employment Rights Act 1996 and such other equivalent provisions as exist  in English law relating to the waiver of statutory employment claims:    then the Payment in Lieu shall also include:    15.3.5 payment of a pro-rated bonus (pursuant to clause 8 or any provisions that  may be agreed in place of clause 8) in respect of the Financial Year in  which notice of termination of employment and/or termination of  employment takes place; and    15.3.6 the amount of the bonus in clauses 15.2 and 15.3.5, if any, will be based  on achievement against Performance Targets and will be paid at the same  time as the Company pays bonuses to Employees generally with respect  to each applicable Financial Year.    15.4 The Employee shall have no right to receive a Payment in Lieu unless the Company  has exercised its discretion in clause 15.1. Nothing in this clause 15 shall prevent  the Company from terminating the Appointment in breach.    15.5 For the purposes of this clause, the term "Good Reason" is defined as any of the  following occurring without the Employee's prior written consent:    15.5.1 relocation of the Employee's primary workplace by more than 50 miles  from Central London, United Kingdom, which relocation results in an  increase in his one-way travel time from his home to such workplace by  more than two hours;    15.5.2 a significant diminution of job function, reporting relationship or scope,  including, without limitation (i) removal from the position of the Managing  Director of International (or equivalent title) of the Company, (provided that,  following a Change in Control, it shall not be Good Reason pursuant to this  clause as long as the Employee remains Managing Director of  International of the business line, subsidiary or division represented by the  Company's business); or (ii) the Employee's ceasing to report directly to  the President (or principal executive officer, regardless of title) of the  Company, (provided that, following a Change in Control, it shall not be  Good Reason pursuant to this clause as long as the Employee continues  to report directly to the President (or principal executive officer, regardless  of title) of the business line, subsidiary or division represented by the  Company's business); or    15.5.3 a decrease of more than 5% in base salary or the Employee's target bonus  opportunity as a percentage of base salary;    in each case, provided that the Employee provides notice of such circumstances to  the Company's President (or principal executive officer, regardless of title) within 90  days of such circumstances' occurrence, the Company fails to cure such  circumstances within 30 days of receipt of such notice and the Employee resigns  within 180 days of such circumstances coming into existence.  14  4144-6457-0897.1        Exhibit 10.9    15.6 Notwithstanding clause 15.1 the Employee shall not be entitled to any Payment in  Lieu if the Company would otherwise have been entitled to terminate the  Appointment without notice in accordance with clause 17.  16. Garden leave    16.1 Following service of notice to terminate the Appointment by either party, or if the  Employee purports to terminate the Appointment in breach of contract, the  Company may by written notice place the Employee on Garden Leave for the whole  or part of the remainder of the Appointment.    16.2 During any period of Garden Leave:    16.2.1 the Company shall be under no obligation to provide any work to the  Employee and may revoke any powers the Employee holds on behalf of  the Company or any Group Company;    16.2.2 the Company may require the Employee to carry out alternative duties or  to only perform such specific duties as are expressly assigned to the  Employee, at such location (including the Employee's home) as the  Company may decide;    16.2.3 the Employee shall continue to receive his basic salary and all contractual  benefits in the usual way and subject to the terms of any benefit  arrangement;    16.2.4 the Employee shall remain an employee of the Company and bound by the  terms of this agreement (including any implied duties of confidence, good  faith and fidelity);    16.2.5 the Employee shall ensure that the President knows where he will be and  how he can be contacted during each working day (except during any  periods taken as holiday in the usual way);    16.2.6 the Company may exclude the Employee from any premises of the  Company or any Group Company and remove any access he has to  Company systems;  16.2.7 the Employee shall refer to the Company forthwith and without delay any  communications in whatever form received by him from any client or  customer of the Company or any other Group Company;    16.2.8 the Company may require the Employee to take accrued but unused  holiday;    16.2.9 the Company may require the Employee not to contact or deal with (or  attempt to contact or deal with) any officer, employee, consultant, client,  customer, supplier, agent, distributor, shareholder, adviser or other  business contact of the Company or any Group Company; and    16.3 If the Company does exercise its rights under clause 16, the period for which it does  so shall be deducted from the periods referred to in clause 21.2.        Exhibit 10.9    17. Termination without notice    17.1 The Company may (without prejudice to and in addition to any other remedy)  terminate the Appointment with immediate effect without notice or payment in lieu of  notice and with no liability to make any further payment to the Employee (other than  in respect of amounts accrued due at the date of termination) for Cause. For the  purposes of clauses 15 and 17,"Cause" is defined as any of the following:    17.1.1 any act or omission that constitutes a material breach by the Employee of  his obligations under this Agreement or any other agreement between the  Employee and the Company;    17.1.2 unreasonable failure or refusal by the Employee to perform the lawful  duties required of him as an employee of the Company to the reasonable  satisfaction of the Company;    17.1.3 any material violation by the Employee of any (i) reasonable written policy,  rule or regulation of the Company or (ii) any law or regulation applicable to  the business of the Company;    17.1.4 any act or omission by the Employee constituting gross misconduct, fraud,  dishonesty, breach of fiduciary duty, gross negligence, wilful misconduct or  intentional misrepresentation in relation to his duties to the Company, or  any of its respective customers, suppliers or other material business  relations; or    17.1.5 if the Employee is convicted of a criminal offence (other than an offence  under any road traffic legislation in the United Kingdom or elsewhere for  which a fine or non-custodial penalty is imposed).    17.2 Any delay by the Company in exercising such right to terminate shall not constitute  a waiver thereof.  17.3 The rights of the Company under clause 17.1 are without prejudice to any other  rights that it might have at law to terminate the Appointment or to accept any breach  of this Agreement by the Employee as having brought the agreement to an end.  Any delay by the Company in exercising its rights to terminate shall not constitute a  waiver thereof.    18. Obligations on termination    18.1 On termination of the Appointment (however arising) the Employee shall:    18.1.1 Immediately deliver to the Company all documents, books, materials,  records, correspondence, papers and information (on whatever media and  wherever located) relating to the business or affairs of any Group  Company or their business contacts, any keys, credit card and any other  property of any Group Company, which is in his possession or under his  control;    18.1.2 irretrievably delete any information relating to the business of any Group  Company stored on any magnetic or optical disk or memory and all matter  derived from such sources which is in his possession or under his control  outside the Company's premises; and    15  4144-6457-0897.1  16  4144-6457--0897.1        Exhibit 10.9    18.1.3 if requested to do so, provide a signed statement that he has complied fully  with his obligations under this clause 18.1 together with such reasonable  evidence of compliance as the Company may request.    19. Disciplinary and grievance procedures    19.1 The Employee is subject to the Company's disciplinary and grievance procedures,  as communicated to him from time to time. These procedures do not form part of  the Employee's contract of employment.  19.2 The Company may suspend the Employee from any or all of his duties for no longer  than is necessary to investigate any disciplinary matter involving the Employee or  so long as is otherwise reasonable while any disciplinary procedure against the  Employee is outstanding.    19.3 During any period of suspension:    19.3.1 the Employee shall continue to receive his basic salary and all contractual  benefits in the usual way and subject to the terms of any benefit  arrangement;  19.3.2 the Employee shall remain an employee of the Company and bound by the  terms of this Agreement;    19.3.3 the Employee shall ensure that the President knows where he will be and  how he can be contacted during each working day (except during any  periods taken as holiday in the usual way);    19.3.4 the Company may exclude the Employee from his place of work or any  other premises of the Company or any Group Company; and    19.3.5 the Company may require the Employee not to contact or deal with (or  attempt to contact or deal with) any officer, employee, consultant, client,  customer, supplier, agent, distributor, shareholder, adviser or other  business contact of the Company or any Group Company.    20. Pensions    The Company will comply with the employer pension duties in accordance with Part  1 of the Pensions Act 2008.    21. Non Competition    21.1 For the purposes of this clause the following expressions shall have the following  meanings:    21.1.1 "Relevant Employee" means any senior employee or consultant to the  Company or any Group Company who has significant client contacts and  with whom the Employee has had significant contact during the course of  his employment hereunder;    21.1.2 "Relevant Customer" means a person, firm or company who:  

 

17  4144-6457-0897.1        Exhibit 10.9    at any time during the twelve months prior to the Termination Date was a  customer of the Company or any Group Company (whether or not services  were actually provided during such period) or intermediary of such  customer or to whom at the Termination Date the Company or any Group  Company was actively and directly seeking to supply services in either  case for the purpose of a Relevant Business; and    with whom the Employee or a Relevant Employee in a Relevant Business  reporting directly to the Employee had dealings at any time during the 12  months prior to the Termination Date or about whom the Employee or such  Relevant Employee was in possession of any Confidential Information (as  defined above) in the performance of his duties to the Company or any  Group Company;    21.1.3 "Relevant Business" means any business or part thereof howsoever  carried on involving the supply of Restricted Goods and/or Services;    21.1.4 "Relevant Supplier" means any person firm or company who is or was at  any time during the twelve months preceding the Termination Date a  supplier or procurer of goods and/or services to the Company or any  Group Company as part of the trading activities within a Relevant  Business;    21.1.5 "Restricted Goods and/or Services" means any goods and/or services  the same as or substantially similar or equivalent to the goods and/or  services with the provision and/or supply of which the Employee was  materially concerned on behalf of the Company and/or any Group  Company during the period of twelve months immediately prior to the  Termination Date.    21.2 In order to safeguard the legitimate business interests of the Company and any  Group Company and particularly the goodwill of the Company and any Group  Company in connection with its clients, suppliers and employees the Employee  hereby undertakes with the Company (for itself and as trustee for each Group  Company) that, and so that each undertaking below shall constitute an entirely  separate, severable and independent obligation of the Employee, he will not (except  with the prior written consent of the Company) directly or indirectly:    21.2.1 during his employment or for a period of 12 months after the Termination  Date entice or solicit or endeavour to entice or solicit away from the  Company or any Group Company any Relevant Employee;    21.2.2 during his employment or for a period of 12 months after the Termination  Date employ or otherwise engage any Relevant Employee;    21.2.3 during his employment or for a period of 12 months after the Termination  Date in competition with the Company or any Group Company endeavour  to supply or solicit the custom of any Relevant Customer in respect of  Restricted Goods and/or Services;    21.2.4 during his employment or for a period of 12 months after the Termination  Date in competition with the Company or any Group Company supply  Restricted Goods and/or Services to any Relevant Customer;  18  4144-6457-0897.1        Exhibit 10.9    21.2.5 during his employment or for a period of 12 months after the Termination  Date carry on or be concerned in any Relevant Business within the USA,  the UK and the EU in competition with the business of the Company or any  Group Company; and    21.2.6 during his employment or for a period of 12 months after the Termination  Date to the detriment of the Company or any Group Company, persuade or  endeavour to persuade any Relevant Supplier to cease doing business or  materially reduce its business with the Company or any Group Company.    21.3 For the purposes of clause 21 the Employee is concerned in a business if (without  limitation):    21.3.1 he carries it on as principal or agent; or    21.3.2 he is a partner, director, employee, secondee, consultant, investor,  shareholder or agent in, of or to any person who carries on the business,    disregarding any financial interest of a person in securities which are listed or dealt  in on any Recognised Investment Exchange if that person, the Employee and any  person connected with him are interested in securities which amount to less than  five per cent of the issued securities of that class and which, In all circumstances,  carry less than five per cent. of the voting rights (if any) attaching to the issued  securities of that class.    21.4 The Employee shall not (except with the prior written consent of the Company) at  any time after the termination of his employment represent himself to be connected  with or interested in the business of or employed by the Company or any Group  Company (other than as a former employee and former director) or use for any  purpose the name of the Company or any Group Company or any name capable of  confusion therewith.    21.5 The Employee shall not during his employment whether during or outside office  hours undertake any steps of any kind to promote or establish (or assist therein)  any business which in the reasonable opinion of the Company is or is intended to  be or may become in competition with any business operated by the Company or  any Group Company.    21.6 The Employee shall not at any time (whether during or after the termination of his  employment) make whether directly or indirectly any untrue, misleading or  derogatory oral or written statement concerning the business, affairs, officers or  employees of the Company or any Group Company.    21.7 The Employee agrees that if at any time during his employment or within 12 months  of its termination, he receives or accepts an offer of employment or decides to enter  into a business relationship or to set up or help set up or becomes concerned in a  business or enterprise in competition or prospective competition with the Company  or any Group Company, he will promptly disclose such offer or decision to the  Board and shall disclose clauses 14 and 21 of this agreement to such future  employer, partner, business or organisation prior to acceptance.    21.8 Save with the prior written consent of the Company, the Employee shall not, prior to  the Termination Date directly or indirectly, whether in person, through social media  or otherwise, inform, notify, publicise or discuss with any Relevant Customer:  19  4144-6457-0897.1        Exhibit 10.9    21.8.1 the fact that he has served or received notice of termination of employment  with the Company; and/or    21.8.2 the fact that he or the Company intend or envisage serving notice or  terminating his employment; and/or    21.8.3 the fact that his employment has terminated or is about to terminate;  and/or    21.8.4 the fact that that he is taking up employment, or an appointment or  engagement elsewhere; and/or    21.8.5 the details or circumstances leading up to or surrounding such notice or  termination.    21.9 The Employee agrees to enter into the restrictions in this clause 21 in consideration  for the Company agreeing to employ him on the terms contained in this agreement.    21.10 While the restrictions in this clause 21 are considered by the Employee and the  Company to be reasonable in all the circumstances, it is recognised that such  restrictions may fail for reasons unforeseen and, accordingly, it is hereby declared  and agreed that if any of the restrictions shall be adjudged to be void as going  beyond what is reasonable in all the circumstances for the protection of the  interests of the Company but that they would be valid if part of the wording thereof  were deleted and/or if the periods (if any) specified therein were reduced and/or the  areas dealt with thereby reduced in scope, the said restrictions shall apply with such  modifications as may be necessary to make them valid and effective.    22. Inventions and improvements    22.1 For the purposes of this clause 22 the following words and expressions shall have  the following meanings:    22.1.1 "Intellectual Property Rights" means all intellectual and industrial  property rights in all and any part of the world, including, without limitation,  any inventions, patents, utility models, copyright or related rights, trade  marks, trade names, business names, rights in get up and trade dress,  goodwill and the right to sue for passing off or unfair competition, Internet  domain names, design rights, designs, service marks, database rights,  rights to use, and protect the confidentiality of, confidential information  (including know-how and trade secrets) and any other rights of a similar  nature whether or not any of the same are registered or unregistered or  capable of protection by registration, including all applications for (and  rights to apply for and be granted), renewals or extensions of, and rights to  claim priority from, such rights and all similar or equivalent rights or forms  of protection which subsist or will subsist, now or in the future, anywhere in  the world; and    22.1.2 "Invention" means any method, idea, concept, experimental work, theme,  invention, discovery, process, model, formula, prototype, sketch, drawing,  plan, composition, design, configuration, improvement or modification of  any kind conceived, developed, discovered, devised or produced by the  Employee alone or with one or more others during this agreement (and any  extensions thereof) and, for the avoidance of doubt, regardless of whether  20  4144-6457-0897.1        Exhibit 10.9    the Employee was acting in his capacity as an employee or otherwise,  which pertains to the activities from time to time of the Company (or any  Group Company) or any product or service of the Company (or any Group  Company) or which pertains to, results from or is suggested by any work  which the Employee carries out for or on behalf of the Company (or any  Group Company).    22.2 The Employee shall promptly disclose and deliver to the Company in confidence full  details of each Invention to enable the Company to determine whether and what  steps if any it wishes to take to protect the Invention and shall at the expense of the  Company give all such explanations, demonstrations and instructions as the  Company may deem appropriate to enable the full and effectual working,  production, filing of an application to seek patent or other industrial property  protection and use of the same.    22.3 The Employee hereby assigns (in so far as title has not automatically vested in the  Company through the Employee's employment) to the Company with full title  guarantee by way of future assignment all Inventions, copyright, database right,  design right and other similar rights for the full terms (including any extension or  renewals thereof) thereof throughout the World in respect of all Inventions, works,  designs or materials (including, without limitation, source code and object code for  software) originated, conceived, written or made by the Employee during the period  of this agreement, and any extensions thereof (except only those works or designs  originated, conceived, written or made by the Employee wholly outside his normal  working hours which are wholly unconnected with any business activity undertaken  or planned to be undertaken by the Company or any Group Company) to hold unto  the Company absolutely for the full terms of those rights. The aforementioned  assignment shall include any accrued right to sue for damages and/or other  remedies in respect of any infringement (including prior to the date hereof).    22.4 The Employee hereby irrevocably and unconditionally waives in favour of the  Company any and all moral rights conferred on him by Chapter IV of Part I of the  Copyright Designs and Patents Act 1988 for any work in which copyright or design  right is vested in the Company whether by this clause 22 or otherwise, so that the  Company or any third party may use and adapt all such works in whatsoever way  the Company or such third party determines without infringing such moral rights  including (but without limitation) the right to be identified, the right of integrity and  the right against false attribution.    22.5 The Employee shall, without additional payment to him (except to the extent  provided in section 40 Patents Act 1977, or any similar provision of applicable law)  at the request and expense of the Company and whether or not during the  continuance of this agreement, promptly execute all documents and do all acts,  matters and things as may be necessary or desirable to enable the Company or its  nominee to obtain, maintain, protect and enforce any Intellectual Property Right  vested in the Company in any or all countries relating to the Intellectual Property  Right and to enable the Company to exploit any Intellectual Property Right vested in  the Company.    22.6 The Employee shall not do anything (whether by omission or commission) during  the period of this agreement or at any time thereafter to affect or imperil the validity  of any Intellectual Property Right obtained, applied for or to be applied for by the  Company or its nominee, and in particular the Employee shall not disclose or make  use of any Invention which is the property of the Company without the prior written  

 

21  4144-6457-0897.1        Exhibit 10.9    consent of the Company. The Employee shall during or after the termination of this  agreement with the Company, at the request and expense of the Company, provide  all reasonable assistance in obtaining, maintaining and enforcing the Intellectual  Property Right or in relation to any proceeding relating to the Company's right, title  or interest in any Intellectual Property Right.    22.7 Without prejudice to the generality of the above clauses, the Employee hereby  irrevocably authorises the Company to appoint a person to be his attorney in his  name and on his behalf to execute any documents and do any acts, matters or  things as may be necessary for or incidental to grant the Company the full benefit of  the provisions of this clause 22.    22.8 The obligations of the Employee under this clause 22 shall continue to apply after  the termination of his employment (howsoever terminated).    22.9 Nothing in this agreement shall oblige the Company (or any other Group Company)  to seek protection for or exploit any Intellectual Property Right.    23. Collective agreements    There is no collective agreement which directly affects the Appointment.    24. Notices    24.1 A notice given to a party under this Agreement shall be in writing in the English  language and signed by or on behalf of the party giving it. It shall be delivered by  hand or sent to the party at the address given in this Agreement or as otherwise  notified in writing to the other party.    24.2 Any such notice shall be deemed to have been received:    24.2.1 if delivered by hand, at the time the notice is left at the address or given to  the addressee;  24.2.2 in the case of pre-paid first class UK post or other next working day  delivery service, at 9.00 am on the second business day after posting or at  the time recorded by the delivery service; or    24.2.3 in the case of pre-paid airmail, 9.00 am on the fifth Business Day after  posting or at the time recorded by the delivery service.    24.3 A notice shall have effect from the earlier of its actual or deemed receipt by the  addressee. For the purpose of calculating deemed receipt:    24.3.1 all references to time are to local time in the place of deemed receipt; and    24.3.2 if deemed receipt would occur on a Saturday or Sunday or a public holiday  when banks are not open for business, deemed receipt is at 9.00 am on  the next business day.    24.4 A notice required to be given under this Agreement shall be validly given if sent by  e-mail, at the point it is received.  22        Exhibit 10.9    24.5 This clause does not apply to the service of any proceedings or other documents in  any legal action.    25. Entire agreement    25.1 This Agreement and the letter of offer from the Company to the Employee dated 22  September 2017 the “Offer Letter") constitutes the entire agreement between the  parties and supersedes and extinguishes all previous agreements, promises,  assurances, warranties, representations and understandings between them,  whether written or oral, relating to the employment of the Employee by the  Company. To the extent that the Offer Letter and this Agreement conflict, this  Agreement shall take precedence. For the avoidance of doubt, nothing in this  Agreement shall affect, supersede or extinguish any rights or obligations existing  between the parties arising out of a consultancy agreement entered into by the  parties in or around October 2017 in respect of the provision of consultancy  services in the period 19 October 2017 to 31 January 2018.    25.2 Each party acknowledges that in entering into this Agreement it does not rely on,  and shall have no remedies in respect of, any statement, representation, assurance  or warranty (whether made innocently or negligently) that is not set out in this  Agreement or the Offer Letter.    26. Changes to terms of employment    The Company reserves the right to make reasonable changes to any of the  Employee's terms and conditions of employment and will notify him in writing of  such changes at the earliest opportunity.  27. Variation    No variation or agreed termination of this Agreement shall be effective unless it is in  writing and signed by the parties (or their authorised representatives).    28. Counterparts    28.1 This Agreement may be executed in any number of counterparts, each of which  when executed and delivered shall constitute a duplicate original, but all the  counterparts shall together constitute the one agreement.    28.2 No counterpart shall be effective until each party has executed and delivered at  least one counterpart.    29. Third party rights    No one other than a party to this Agreement shall have any right to enforce any of  its terms.    30. Governing law    This Agreement and any dispute or claim arising out of or in connection with it or its  subject matter or formation (including non-contractual disputes or claims) shall be  governed by and construed in accordance with the law of England and Wales.  23        Exhibit 10.9    31. Jurisdiction    Each party irrevocably agrees that the courts of England and Wales shall have  exclusive jurisdiction to settle any dispute or claim arising out of or in connection  with this Agreement or its subject matter or formation (including non-contractual  disputes or claims).    This Agreement has been entered into on the date stated at the beginning of it.  Signed by HISAO KUSHI, GENERAL COUNSEL:  /s/ Hisao Kushi  for and on behalf of PELOTON INTERACTIVE, INC.  Date: February 1, 2018    Signed by KEVIN CORNILS:    /s/ Kevin Cornils  Date: February 1, 2018

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