SEC Contract Filing

Filing Date: 2020-02-25

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ex-1032020stockoptions.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd">
<html>
	<head>
 <!-- Document created using Wdesk 1 -->
 <!-- Copyright 2020 Workiva -->
 <title>Exhibit</title>
	</head>
	<body><div style="font-family:Times New Roman;font-size:10pt;">
<div><a name="s2FD0BB891D2D988A87EB60B0502A645E"></a></div><div></div><div><br></div><div style="line-height:120%;text-align:right;"><img src="annualepptermsandcond_image1.jpg" alt="annualepptermsandcond_image1.jpg" style="height:50px;width:140px;"></div><div style="line-height:120%;text-align:right;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Exhibit 10.3</font></div><div style="line-height:120%;text-align:center;font-size:16pt;"><font style="font-family:inherit;font-size:16pt;"><br></font></div><div style="line-height:120%;text-align:center;font-size:16pt;"><font style="font-family:inherit;font-size:16pt;">Kellogg Company </font></div><div style="line-height:120%;text-align:center;font-size:14pt;"><font style="font-family:inherit;font-size:14pt;">Long Term Incentive Plan</font></div><div style="line-height:120%;text-align:center;font-size:14pt;"><font style="font-family:inherit;font-size:14pt;">OPTION TERMS AND CONDITIONS</font></div><div style="line-height:120%;text-align:center;font-size:14pt;"><font style="font-family:inherit;font-size:14pt;font-weight:bold;">For Performance Year 2019, Options awarded in 2020</font></div><div style="line-height:120%;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">1.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Type of Award</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">: </font><font style="font-family:inherit;font-size:12pt;">&#32;Kellogg Company awards to you and you accept an option to purchase the number of shares of Kellogg Company Common Stock ($0.25 par value) (the &#8220;Common Stock&#8221;) at the option price per share on the date of award described in the Employee Compensation Statement and distributed to you by your manager (such document, together with the Terms and Conditions, being the &#8220;Option&#8221;). This Option will be forfeited if you are terminated, retired, on long-term disability, on a severance leave of absence or otherwise not an active employee on the date of grant.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:16px;text-align:justify;padding-left:24px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">This Option is not a tandem grant nor an Incentive Stock Option under the provisions of the U.S. Internal Revenue Code and, notwithstanding any other provision of this Option or the Kellogg Company 2017 Long Term Incentive Plan (the &#8220;Plan&#8221;), it must be exercised prior to or on the expiration date ten (10) years from the Award Date (the &#8220;Expiration Date&#8221;). </font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">2.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Vesting</font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">:</font><font style="font-family:inherit;font-size:12pt;">&#32;&#32;This Option vests and becomes exercisable in equal installments over three (3) years: one-third on the first anniversary date of the grant, one-third on the second anniversary date of the grant and the remaining one-third on the third anniversary date of the grant. It is your responsibility to exercise this Option prior to or on its Expiration Date, just as is the case with any other employee stock option. Kellogg Company has no obligation to notify or contact you prior to the Expiration Date of this Option, or any other option. This Option partially vests if your employment with Kellogg Company or any of its subsidiaries (the &#8220;Company&#8221;) terminates because of death, Disability (as defined in the Plan) or Retirement (as defined in the Plan). Vesting in those cases will be pro-rated based on the number of days you were employed during the applicable vesting period of the award. If your employment terminates because of death, the legal representative of your estate or your beneficiary, if so designated, may exercise the vested portion of this Option on or before the first to occur of the Expiration Date and two days after the first anniversary of your death. If your employment terminates because of Disability or Retirement, you may exercise the vested portion of this Option on or before the first to occur of the Expiration Date and the day after the fifth anniversary of your termination of employment due to Disability or Retirement. Retirement under the Plan is the same as the participant&#8217;s defined benefit pension-based eligibility criteria for those that receive a defined benefit pension from the Company.&#160; If you do not have a defined benefit pension from the Company, Retirement means you terminate employment with th