Pfizer Inc. 2004 Stockplan, som endret og omarbeidet (gjennom 23. februar 2012) SEKSJON 1. FORMÅL Formålet med Pfizer Inc. 2004 Stock Plan (147t Plan148) er å gi et vesentlig incitament til ansatte og ikke-ansattes styremedlemmer Selskapet og dets tilknyttede selskaper ved å gi dem fordelene ved et større fellesaksjer i selskapet gjennom aksjeopsjoner og priser. Det antas at disse økte insentiver stimulerer arbeidet til ansatte og ikke-ansattes styremedlemmer mot fortsatt suksess for selskapet og dets tilknyttede selskaper, samt bistå i rekruttering av nye ansatte og ikke-ansattes styremedlemmer. Planen ble endret og omarbeidet fra 1. januar 2008 for å gjenspeile den tilsiktede unntak fra § 409A (som definert nedenfor) for visse priser, samt fortsatt overholdelse av § 409A for visse andre priser, og videre endret og omarbeidet som av 23. april 2009, for å gjøre visse andre endringer utformet for å fremme effektiv drift av Planen og å fylle ut antall Aksjer tilgjengelig for tilskudd. AVSNITT 2. DEFINISJONER Som brukt i Planen skal følgende begrep ha følgende betydninger: 147Affektiv148 betyr (i) enhver person som direkte eller gjennom en eller flere mellommenn kontrollerer eller kontrolleres av eller er under felles Kontroll med, Selskapet eller (ii) Enhver enhet der Selskapet har en betydelig egenkapitalandel, fastsatt av komiteen. 147Award148 betyr enhver opsjon, aksjeklassifiseringsrett, begrenset aksjekurs, ytelsesandel, utbytteekvivalent, annen aksjeenhetspris eller annen rettighet, renter eller opsjon knyttet til aksjer utstedt og levert i henhold til bestemmelsene i planen. Overenskomst148 skal bety enhver skriftlig avtale, kontrakt eller annet instrument eller dokument som dokumenterer enhver tildeling gitt av komiteen under, som etter eget valg av komiteen, men ikke behøver å bli undertegnet eller anerkjent av Selskapet eller Deltageren. 147Board148 betyr selskapets styre. 147 Årsak148 betyr en forsettlig brudd på plikt i løpet av ansettelsen. Ingen handling eller manglende handling skal anses for å være ufullstendig eller ikke utført, ikke i god tro og uten fornuftig tro at handlingen eller unnlatelsen var i selskapets og dets tilknyttede selskaps interesse. 147Endring i Control148 skal bety at det forekommer noen av følgende hendelser: (i) når som helst i løpet av den første toårsperioden etter ikrafttredelsesdatoen eller under hver påfølgende fornyelsestid, i hvert fall et flertall av Styret skal opphøre å bestå av 147 fortsatte styremedlemmer148 (dvs. selskapets styre som enten var styremedlemmer ved begynnelsen av en slik innledende toårsperiode eller påfølgende fornyelsestid, alt etter omstendighetene, eller som senere ble styremedlemmer og hvis valg eller nominasjon for valg av selskapets 146-aksjeeiere, ble godkjent av et flertall av de da videreførende styremedlemmer) eller (ii) noen 147person148 eller 147group148 (som bestemt i henhold til børslovens § 13, litra d) (3), bortsett fra noen majoritetseierte datterselskap av Selskapet eller enhver ansattspensjonsordning for Selskapet eller enhver tillit derunder, skal ha ervervet 147fordeler148 (som bestemt for Securities and Exchange Commission (147SEC148) Re gating 13d-3) av aksjer som har 20 eller flere av stemmerettene til alle utestående aksjer, med mindre slik oppkjøp er godkjent av et flertall av selskapets styremedlemmer i kontoret umiddelbart før et slikt oppkjøp eller (iii) det skjer en fusjon eller konsolidering til som Selskapet er en part i, hvor utestående Aksjer konverteres til andeler i et annet selskap (bortsett fra en konvertering til aksjer av stemmeberettiget aksjekapital i etterfølgerforetaket eller et holdingselskap derav som representerer 80 av stemmeberettiget kapital for alle aksjer i utestående kapital umiddelbart etter fusjonen eller konsolideringen) eller andre verdipapirer (enten selskapet eller et annet selskap) eller kontanter eller annen eiendom eller (iv) salg av alle eller i det vesentlige alle av selskapets eiendeler eller (v) aksjeeiere i Selskapet godkjenner en plan for fullstendig likvidasjon av selskapet. 147Endring i Control Price148 betyr, med hensyn til Aksje, den høyeste av (A) den høyeste rapporterte salgsprisen, vanlig måte, av slik andel i en transaksjon som er rapportert på New York Stock Exchange Composite Tape eller annen nasjonal børs som slike Aksjer er notert eller på Nasdaq National Market i løpet av 60-dagers perioden før og med datoen for en endring i kontroll eller endring i kontrollhendelse eller (B) hvis endringen i kontroll eller endring i kontrollhendelse er resultatet av et anbud eller bytte tilbud eller bedriftskonflikt, den høyeste prisen per slik andel som er betalt i et slikt tilbud eller bytte tilbud eller bedriftstransaksjon, forutsatt at i tilfelle en utmerkelse er unntatt fra § 409A, er endringen i kontrollprisen det rettferdige markedet Verdien av slik andel på den dato som denne utgiften utøves eller anses å utøves i henhold til § 11. I den utstrekning vederlaget som er betalt i en slik transaksjon som beskrevet ovenfor består helt eller delvis av verdipapirer eller andre ikke - Aksjeoverveielse, verdien av slike verdipapirer eller annen noncash-vederlag skal fastsettes etter styrets eget skjønn. 147Code148 skal innebære Internal Revenue Code 1986, som endret fra tid til annen, og enhver etterfølger derav. 147Fair Market Value148 betyr, med hensyn til Aksjer, fra og med en dato, sluttkurs for Aksjene som rapportert på New York Stock Exchange for den aktuelle datoen eller, hvis ingen slik pris er rapportert for denne datoen, sluttkursen på neste forrige dato for hvilken slik pris ble rapportert, med mindre annet er bestemt av komiteen, på en måte som er i samsvar med § 409A. 147Grunnlagde fordeler148 skal bety alle utmerkelser som ble opptjent og opptjent per 31. desember 2004, i henhold til § 409A. Grandfathered Benefits er underlagt distribusjonsregler under planen som var i kraft 3. oktober 2004 og er oppsummert i vedlegg A. 147Grant Date148 betyr datoen hvor en Award er gitt. 147Incentiv aksjeopsjon148 betyr et opsjon gitt i henhold til § 6 som er ment å oppfylle kravene i kodeksens § 422 eller en eventuell etterfølgerbestemmelse dertil. 147Key Employee148 betyr en ansatt som er behandlet som en 147spesifisert ansatt148 som av hans eller hennes separasjon fra tjenesten under kodeseksjon 409A (a) (2) (B) (i), dvs. en nøkkelpersonell (som definert i koden § 416 (i) uten i henhold til punkt 5 i det aktuelle selskapet) av Selskapet eller dets tilknyttede selskaper dersom aksjene i Selskapet er offentlig handel på et etablert verdipapirmarked eller på annen måte. Nøkkelpersoner skal fastsettes etter regler vedtatt av Selskapet i samsvar med § 409A. Nøkkelpersoner skal også inkludere de nøkkelpersonene som er kvalifisert for selskapets langsiktige insentivprogram14 som 147spesifiserte ansatte148 i 12-månedersperioden etter den angitte ansattes effektive dato, hvis ikke allerede inkludert i henhold til det foregående. Nøkkelpersoner skal fastsettes i samsvar med § 409A ved bruk av en identifikasjonsdato 31. desember, og noteringen av nøkkelpersoner fra en slik identifiseringsdato skal være gyldig i 12-månedersperioden som begynner på virkedagen etter identifikasjonsdatoen. Utenom det foregående kan komiteen, i henhold til alternative tillatte metoder som er tillatt i henhold til § 409A, vedta en alternativ identifikasjon og en effektiv dato for å bestemme hvilke ansatte som er nøkkelpersoner. 147Onkvalifisert aksjeopsjon148 skal enten bety et opsjon gitt i henhold til § 6 som ikke er ment å være et incentivaksjonsalternativ eller et incentivaksjonsalternativ som er diskvalifisert. Opptak148 betyr enhver rett gitt til en deltaker under planen slik at en slik deltaker kan kjøpe aksjer til en slik pris eller pris og i en periode eller perioder som komiteen skal bestemme. 147Andre aksjeenhet Pris148 betyr enhver rett gitt til en deltaker av komiteen i henhold til § 10. 147Deltaker148 betyr en ansatt eller et ikke-ansatt styremedlem som utvelges av komiteen eller styret fra tid til annen i sin eneste skjønn til å motta en pris under planen. 147Performance Award148 skal betegnes som en Award of Performance-aksjer gitt i henhold til § 9. 147Prøvningsperiode148 skal innebære en periode på ikke mindre enn ett år, slik det er fastsatt av komiteen når en ytelsestildeling er gitt eller til enhver tid deretter, ytelsesmål fastsatt av komiteen med hensyn til slik pris skal måles. 147Performance Aksje148 betyr ethvert tilskud etter § 9 i en enhet verdsatt med henvisning til et utpekt antall Aksjer, hvilken verdi kan betales til Deltakeren ved levering av slik eiendom som komiteen skal bestemme, inkludert, men ikke begrenset, kontanter, Aksjer , annen eiendom eller en hvilken som helst kombinasjon av disse ved oppnåelse av slike ytelsesmål i løpet av opptjeningsperioden som komiteen skal etablere ved tidspunktet for tilskuddet eller tidligere (men senest 90 dager etter opptjeningsperiodens start) . 147Person148 skal bety enhver person, aksjeselskap, partnerskap, forening, aksjeselskap, aksjeselskap, tillit, ikke-organisert organisasjon eller regjering eller politisk underavdeling derav. 147Renewal Term148 betyr den toårsperioden som begynner på andre årsdagen for virkningstidspunktet og hver påfølgende toårsperiode deretter. 147Reservisert aksje148 betyr enhver Del utstedt med den begrensning at innehaveren ikke kan selge, overføre, løfte eller overdra en slik andel og med andre restriksjoner som komiteen etter eget skjønn kan pålegge (inkludert, men ikke begrenset, noen begrensninger på stemmerett for slik andel og rett til å motta kontantutbytte), hvilke restriksjoner kan bortfalle separat eller i kombinasjon på en slik tid eller tid, i perioder eller på annen måte, som komiteen finner hensiktsmessig. 147Restricted Stock Award148 skal bety en tildeling av Begrenset aksje i henhold til § 8. 147Seksjon 409A148 skal bety kodenes § 409A og forskriftene og annen veiledning utstedt av den amerikanske statskassen eller Internal Revenue Service. Retirement148 skal ha en minimumsalder på 55 år og minst 10 års tjeneste på tidspunktet for en deltakers separasjon fra selskapet, med mindre annet er bestemt av komiteen, og som også skal utgjøre en separasjon fra tjenesten. 147Separasjon fra Service148 betyr en 147separasjon fra service148 i henhold til § 409A. 147Share148 skal bety aksjene i aksjeselskapet i selskapet. 147Stock Appreciation Right148 betyr enhver rett gitt til en Deltaker i henhold til § 7 for å motta, etter utøvelse av Deltaker, overskudd av (i) Virkelig Markedsverdi av en Aksje på utøvelsesdagen over (ii) tilskuddskurs for Rett på tildelingstidspunktet, eller hvis det er gitt i forbindelse med et utestående alternativ på tidspunktet for tildelingen av det tilhørende alternativet, som spesifisert av komiteen etter eget skjønn, som, bortsett fra i forbindelse med en justering gitt i § 4 ( c), skal ikke være mindre enn Fair Market Value av en Aksje på denne dato for tildeling av rett eller det tilhørende alternativet, alt etter omstendighetene. Eventuell betaling av Selskapet med hensyn til slik rett kan skje kontant, Aksjer, annen eiendom eller enhver kombinasjon av disse, ettersom Komiteen etter eget skjønn bestemmer. 147 Utbyttetildelinger148 skal bety utmerkelser eller aksjer utstedt av Selskapet i antagelse om, eller i erstatning eller utveksling av, tildelte premier, eller rett eller plikt til å gjøre fremtidige priser, av et selskap som ervervet av Selskapet eller en tilknyttet eller som Selskapet eller en tilknyttet kombinasjon. 147Total og permanent funksjonshemming148 betyr total og permanent funksjonshemming som bestemt i samsvar med regler fastsatt av komiteen, og i samsvar med § 409A. 147Vestingsperiode148 betyr tidsperioden før ubegrensede aksjer blir uforsvarlige og utstedes til en deltaker i henhold til § 10. SEKSJON 3. ADMINISTRASJON Planen skal administreres av komiteen. Utvalget skal ha full makt og myndighet, med forbehold om slike pålegg eller vedtak som ikke er i strid med bestemmelsene i planen som det til enhver tid kan vedtas av styret, for å (a) velge ansatte i selskapet og dets tilknyttede selskaper til hvem Utmerkelser kan fra tid til annen gis under denne b) bestemme typen eller typer av prisen som skal tildeles hver deltaker herunder c) bestemme antall aksjer som skal dekkes av eller relaterer til hver pris som er gitt i henhold d) bestemme vilkår og betingelser, som ikke er i strid med bestemmelsene i planen, av en tildeling gitt nedenfor (e) avgjøre om i hvilken grad og under hvilke omstendigheter priser kan avregnes kontant, Aksjer eller annen eiendom eller kansellert eller suspendert, i samsvar med vilkårene i planen (f) avgjøre om i hvilken grad og under hvilke omstendigheter aksjer eller kontanter betalt til eller oppnådd av deltakeren basert på en pris, skal returneres til selskapet i samsvar med begrepet s av planen (g) avgjøre om i hvilken grad og under hvilke omstendigheter en deltaker kan være uberettiget til å beholde en pris (h) avgjøre om i hvilken grad og under hvilke omstendigheter betaling av kontanter, Aksjer, annen eiendom og Andre beløp som skal betales med hensyn til en tildeling gitt under Planen, skal utsettes enten automatisk eller ved valg av Deltaker, i samsvar med vilkårene i Planen (i) tolker og administrerer Planen og ethvert instrument eller avtal inngått i henhold til Planen (j) fastlegge slike regler og forskrifter og utnevne slike agenter som det finner hensiktsmessig for planens forsvarlige administrasjon og (k) foreta andre beslutninger og ta andre tiltak som komiteen anser nødvendig eller ønskelig for administrasjon av planen. Utvalget kan etter eget skjønn og underlagt bestemmelsene i planen fra tid til annen delegere all eller all sin fullmakt til å forvalte planen til andre personer eller komiteer som det anser nødvendig eller hensiktsmessig for den rette administrasjon av Planen, med unntak av at ingen slik delegasjon skal gjøres i forbindelse med tildelinger som er ment å være kvalifisert etter klausulens § 162 (m). Utvalgets beslutninger skal være endelige, avgjørende og bindende med hensyn til tolkningen og administrasjonen av Planen og eventuelle tilskudd utstedt av den. Komiteen skal etter eget skjønn gjøre alle bestemmelser som oppstår i administrasjonen, konstruksjonen eller tolkningen av Planen og utmerkelsene under planen, herunder retten til å tolke omstridte eller tvilsomme plan - eller prisvilkår og - bestemmelser, og enhver slik avgjørelse skal være avgjørende og bindende for alle personer, med mindre annet er fastsatt i loven. Et flertall av medlemmene i komiteen kan bestemme sine handlinger og fastsette tidspunkt og sted for møtene. Med unntak av hva som er fastsatt i § 12, skal komiteen ha tillatelse til å foreta justeringer i ytelsestildelingskriterier eller i vilkårene for andre utmerkelser til anerkjennelse av uvanlige eller ikke-gjenværende hendelser som påvirker selskapet eller dets regnskap eller endringer i gjeldende lover, forskrifter eller regnskapsprinsipper. Komiteen kan rette opp eventuelle feil, forsyne utelatelser eller forene eventuelle uoverensstemmelser i planen eller en eventuell pris på den måten og i den grad det finner det ønskelig å gjennomføre det. I tilfelle at Selskapet skal påta utestående ytelser til ytelse til ansatte eller rett eller plikt til å gjøre fremtidige slike utmerkelser i forbindelse med oppkjøp av eller kombinasjon med et annet selskap eller forretningsenhet, kan komiteen etter eget skjønn gjøre slike tilpasninger i Vilkår for utmerkelser under planen som den finner hensiktsmessig. SEKSJON 4. AKSJER VEDLEGGENDE TIL PLANEN (a) Med forbehold for justering som fastsatt i § 4 bokstav c, skal i alt fire hundre og femti millioner (425.000.000) Aksjer godkjennes for tildeling i henhold til tildelinger under Planen, pluss eventuelle aksjer som er tilgjengelige for tildeling i henhold til Planen fra og med virkningstidspunktet, forutsatt at ikke mer enn fire hundre tjuefem millioner (425,000,000) aksjer kan innvilges som incitamentsaksjonsopsjoner. Eventuelle Aksjer gitt i forbindelse med opsjoner og aksjekursrettigheter skal regnes mot denne grensen som en (1) andel for hver enkelt (1) opsjon eller aksjekurs rettighet tildelt. Eventuelle Aksjer gitt i forbindelse med andre utmerkelser enn opsjoner og aksjekursrettigheter skal teller mot denne grensen som to (2) Aksjer for hver enkelt (1) Aksje gitt i forbindelse med denne prisen eller som prisen er verdsatt som referanse. Ingen deltakere i henhold til denne planen skal gis opsjoner, aksjeklassifiseringsrettigheter eller andre utmerkelser (telt som beskrevet ovenfor, som to (2) Aksjer tildelt for hver enkelt Aksje utstedt i forbindelse med en slik pris eller som prisen er verdsatt som referanse til) i en påfølgende 36-måneders periode som dekker over 8 millioner aksjer. Grenseverdien i henhold til foregående punktum gjelder for en annen utmerkelse enn en opsjon eller aksjeklassifiseringsrett bare hvis utmerkelsen er beregnet til å være 147prestasjonsbasert148 som den termen er brukt i kodeksens § 162 (m). Ingen deltakelse vil bli gitt til noen deltaker som eier mer enn ti prosent av aksjebeholdningen i henhold til klausulens § 422. (b) Enhver Aksje utstedt herunder, kan helt eller delvis bestå av autoriserte og uutnyttede Aksjer, egne aksjer eller Aksjer kjøpt i det åpne markedet eller på annen måte. (c) Ved fusjon, omorganisering, konsolidering, rekapitalisering, aksjeutbytte, ekstraordinært kontantutbytte, aksjesplittelse, reversert aksjesplit, spin-off eller lignende transaksjon eller annen endring i selskapsstruktur som påvirker Aksjene, slike tilpasninger og andre Utskiftninger skal gjøres til Planen og til Utdelinger ettersom Utvalget etter eget skjønn finner rimelig eller hensiktsmessig, inkludert, uten begrensning, slike tilpasninger i samlet antall, klasse og type verdipapirer som kan leveres under Planen, i samlet eller til en av deltagerne, i antall, klasse, slag og opsjon eller utøvelseskurs på verdipapirer som er gjenstand for utestående Awards gitt i henhold til planen (inkludert, hvis komiteen finner det hensiktsmessig, erstatning av lignende opsjoner for å kjøpe aksjene i, eller andre utmerkelser denominert i andeler i, et annet selskap) som komiteen kan bestemme for å være hensiktsmessig etter eget skjønn, forutsatt at antall S harer som er gjenstand for en tildeling skal alltid være et helt tall og videre, forutsatt at det ikke under noen omstendigheter kan endres til et incentivaksjonsalternativ som ville utgjøre en endring i henhold til kodeksens § 424 (h) (3). Dessuten kan en tilpasning til en prisfastsetting i henhold til denne paragraf 4 (c) ikke gjøres på en måte som vil resultere i tildeling av et nytt opsjons - eller lagerrettighetsrett i henhold til § 409A, med mindre komiteen spesifikt fastslår at en slik tilpasning er ønskelig og vil ikke føre til at modifisert pris til å skape negative skattemessige konsekvenser i henhold til § 409A. (d) Eventuelle Aksjer som er underlagt Awards som opphører, utløper eller fortabes, kanselleres eller avregnes kontant, enten helt eller delvis, kan benyttes til videre tildeling av utmerkelser i omfanget av slik oppsigelse, fortabelse, kansellering eller bosetting. Eventuelle Aksjer som igjen blir tilgjengelige for fremtidige tilskudd i henhold til foregående setning, skal legges tilbake som en (1) andel dersom slike aksjer var underlagt opsjoner eller aksjeklassifiseringsrettigheter og som to (2) aksjer dersom slike aksjer var underlagt utmerkelser annet enn valg eller lagerrettighetsrettigheter. I tillegg, i tilfelle av en erstatningstildeling, skal Aksjer som leveres eller leveres i forbindelse med en slik antatt eller erstatningstildeling, ikke redusere antall Aksjer som er godkjent for tildeling i § 4 a) ovenfor. Til tross for det foregående, kan Aksjer som er underlagt en Tildeling under Planen, ikke igjen bli gjort tilgjengelig for utstedelse eller levering i henhold til Planen dersom slike Aksjer er (i) Aksjer som var gjenstand for en aksjemessig verdiskaping og ikke ble utstedt på netto oppgjør eller netto utøvelse av slike aksjeklassifiseringsrettigheter, (ii) Aksjer levert eller tilbakeholdt av Selskapet til å betale oppløsningskursen for et opsjon, (iii) Aksjer levert til eller tilbakeholdt av Selskapet til å betale kildeskatt knyttet til en Award , eller (iv) Aksjer tilbakekjøpt på det åpne markedet med inntekter fra en opsjonsøvelse. AVSNITT 5. GODTGJØRELSE Enhver ansatt eller ikke-ansatt direktør skal være kvalifisert til å bli valgt som deltaker, men at opsjonsopsjoner skal kun tildeles ansatte i selskapet, eller en forelder eller tilknyttet, i henhold til § 422 av koden. Uten hensyn til bestemmelse i denne Planen omvendt, skal de ikke-ansattes styremedlemmer, herunder et utpekt utvalg av styre som utelukkende består av ikke-ansatte styremedlemmer, ha fullmakt til å velge ikke-ansattes styremedlemmer som Deltakere som er kvalifisert til å motta andre priser enn incentivaksjonsopsjoner under planen. Utenriksdirektørene skal fastsette vilkårene for slike utmerkelser etter eget skjønn, og de ikke-ansattes styremedlemmer skal være ansvarlige for å administrere og tolke slike utmerkelser på stort sett samme måte som komiteen administrerer og tolker utmerkelser til ansatte. § 6. OPPLYSNINGER OM OPPBEVARING Alternativer kan gis til enhver deltakende, enten alene eller i tillegg til andre tildelinger gitt i henhold til Planen, og skal være underlagt følgende vilkår og betingelser: (a) Alternativpris. Optieprisen per aksje skal ikke være mindre enn Aksjemarkedsverdien av aksjene på den dato opsjonen er gitt. (b) Antall aksjer. Opsjonen skal angi antall aksjer som dekkes av dette. (c) Utøvelse av alternativ. Med mindre annet er bestemt av komiteen, vil et alternativ anses å utøves av den opsatte, eller i tilfelle dødsfall, skal en opsjon anses utøvet av den opsjonshaverens eiendom eller av en person som oppnådd rett til å utøve dette alternativet ved arv eller arv eller på grunn av valgmottakerens død ved levering av (i) varsel om utøvelse til Selskapet eller dets representant, eller ved bruk av andre innkallingsmetoder som komiteen skal vedta, og (ii) ledsager betaling av opsjonsprisen eller andre metoder for å tilfredsstille opsjonsutnyttelsesprisene som godkjent av komiteen og i samsvar med eventuelle restriksjoner som komiteen skal vedta. Innkallingen om utøvelse, når den er levert, skal være uigenkallelig. Uten hensyn til ovennevnte, og med mindre komiteen bestemmer noe annet, dersom (i) en opsjonær dør, (ii) hans representant har rett til å utøve opsjon, (iii) opsjonen ikke utøves senest den siste dagen kan utøves, og (iv) opsjonsprisen per aksje er under markedsverdien av en aksje på en slik dato, skal opsjonen anses utøvet på en slik dato via en kontantløs utøvelsesprosedyre og det oppnådde provenyet etter opsjonsprisen og eventuelle Påkrevd skattefradrag skal betales til representanten. (d) opsjonsperiode. Komiteen skal bestemme opsjonsperioden for hvert opsjon. Perioden for Incentive Stock Options må ikke overstige ti år fra tildelingstidspunktet. En ikke-kvalifisert aksjeopsjon kan utøves i en periode på opptil ti år og seks måneder for å overholde eller utnytte statlige krav, vedtekter eller forskrifter. (e) Først utøvelsesdato. Med unntak av dødsfall, total og permanent funksjonshemming, endring i kontroll eller salg eller restrukturering av en virksomhet eller anleggsavslutning, kan ingen opsjon utøves i løpet av det første året i sin periode eller en slik lengre periode som det kan spesifiseres i alternativet . (f) Oppsigelse av opsjon. Alle opsjoner skal opphøre ved utløp, overgivelse, ved overtredelse av opsjonen til eventuelle bestemmelser i opsjonen eller i samsvar med andre regler og prosedyrer som er innlemmet i vilkårene for opsjonene som komiteen anser som tilrådelig eller hensiktsmessig. (g) Inkorporering ved henvisning. Alternativet skal inneholde en bestemmelse om at alle de vilkår og betingelser som gjelder for denne planen er innarbeidet ved henvisning deri. (h) Andre bestemmelser. Alternativet skal også være underlagt andre vilkår og betingelser som komiteen anser som tilrådelig eller hensiktsmessig, i samsvar med bestemmelsene i planen som angitt her. I tillegg skal Incentive Stock Options inneholde slike andre bestemmelser som kan være nødvendige for å oppfylle Kodeksens krav og avgjørelser og forskrifter fra Treasury-avdelingen i henhold til denne for så vidt angår Incentive Stock Options. (i) Fritak fra § 409A. Det er ment at alle opsjoner som er gitt i henhold til denne planen, er unntatt fra § 409A. Ikke desto mindre representerer selskapet ikke, pakt eller garanterer at en bestemt tildeling gjort under planen vil kvalifisere for gunstig skattemessig behandling (for eksempel som med incentivaksjonsopsjoner) eller vil unngå ugunstige skattemessige konsekvenser for deltaker (f. eks. § 409A straffer). SEKSJON 7. FORVALTNINGSRETTIGHETER AV AKSJONER (a) Tilskudd til en aksjekjøpsrett. Aksjeklassifiseringsrettigheter kan gis herunder for enhver deltaker, enten alene (147freestanding148) eller i tillegg til andre utmerkelser gitt under planen, og kan, men trenger ikke, forholde seg til et bestemt valg gitt i henhold til § 6. Bestemmelsene i verdier for verdsettelse av lager ikke være det samme med hensyn til hver mottaker. Enhver aksjeklasse som er rett knyttet til en ikke-kvalifisert aksjeopsjon kan gis samtidig som slik opsjon er gitt eller til enhver tid deretter før utøvelse eller utløp av slik opsjon. Enhver aksjekjøp rett knyttet til et incentivaksjonsalternativ må gis samtidig med at slik opsjon er gitt. I tilfelle av aksjekravsmessig rettighet knyttet til eventuelle opsjoner, skal verdipapirretten eller gjeldende del av dette opphøre og ikke lenger kunne utøves ved oppsigelsen eller utøvelsen av det tilhørende alternativet, bortsett fra at en aksjekravsmessig rettighet gitt med hensyn til mindre enn Det fulle antall Aksjer som omfattes av en beslektet opsjon, skal ikke reduseres før utøvelsen eller oppsigelsen av det tilknyttede alternativet overstiger antall Aksjer som ikke er dekket av aksjekjøpsretten. Eventuelle opsjoner knyttet til eventuell aksjekjøpsrett skal ikke lenger kunne utøves i den utstrekning den tilhørende lagerrettingsretten er utøvd. (b) Vilkår. Komiteen kan pålegge slike vilkår og betingelser eller restriksjoner for utøvelsen av aksjeskattekompetanse som den anser å være tilrådelig eller hensiktsmessig, forutsatt at en aksjekravsmessig rettighet ikke skal ha en utøvelseskurs som er lavere enn markedsverdien av en andel på datoen for stipend eller et løp på over ti år. (c) § 409A. Verdipapirrettigheter kan ytes herunder av komiteen enten (i) på en måte som er i overensstemmelse med § 409A slik at verdipapirfondet ikke vil gi oppsigelse av kompensasjon etter § 409A, eller (ii) på en måte som er beregnet fra bevilge å underkaste lagerrettigheten til § 409A. I tilfelle aksjekursrettigheter gis for å være så underlagt § 409A, skal lagerrettingsretten avregnes og betales i en enkelt klumpsum (i) fra en bestemt dato, (ii) på deltaker146s separasjon fra tjeneste, eller (iii) den tidligere av (i) eller (ii), som angitt og fremsatt av komiteen i en prisavtale på tildelingstidspunktet, og ellers skal innvilges, administreres, avregnes og betales i samsvar med § 409A . Til tross for det foregående, kan slik oppgjør og betaling ikke gjøres til en nøkkelpersonell ved en separasjon fra tjenesten før datoen som er 6 måneder etter datoen for nøkkelpersonellens separasjon fra tjenesten (eller, hvis tidligere, dødsdato for nøkkelpersonellet). SEKSJON 8. BEGRENSET VARE (a) Tilskudd til begrenset lager. En begrenset aksjekurs skal begrenses av komiteen på tidspunktet for bevilgning for en tidsperiode fastsatt av komiteen (147Restriction Period148). Begrensede aksjekurser kan utstedes under Deltakerne uten kontanter eller for så lite hensyn som det kreves av gjeldende lov, enten alene eller i tillegg til andre priser gitt under Planen. Enhver tildeling av Begrenset Aksje skal også være underlagt andre vilkår og betingelser som komiteen anser som tilrådelig eller hensiktsmessig, i samsvar med bestemmelsene i Planen som angitt her. Unntatt ved oppsigelse på grunn av dødsfall, pensjon, total og permanent funksjonshemming, endring i kontroll eller salg eller restrukturering av en virksomhet eller anleggsavslutning skal begrensede aksjekurser ha en begrensningsperiode på minst tre (3) ) år fra bevilgningsdatoen, som kan inkludere pro rata utløp av restriksjoner derav. Ved oppsigelse på grunn av dødsfall, Total og permanent funksjonshemming eller endring i kontroll, utmerkelser om begrenset aksje umiddelbart og fullt vest. Ved oppsigelse på grunn av Pensjonering eller salg eller restrukturering av en bedrift eller anleggsavslutning, utmerkelser om Begrenset aksjevest pro rata. Til tross for ovenstående kan utmerkelser som dekker opptil fem (5) prosent av det totale antall Aksjer som kan utstedes eller leveres under Planen (unntatt som tildeling av opsjoner eller verdier for verdier) ikke inneholde noen restriksjoner eller være underlagt en begrensning Periode på mindre enn tre (3) år. (b) Registrering. Eventuelle begrensede aksjer utstedt i henhold til dette kan påvises på en slik måte som komiteen etter eget skjønn finner det hensiktsmessig, inkludert, uten begrensning, registrering av bokregistrering eller utstedelse av et lagerbevis eller sertifikater. Ved utstedelse av aksjesertifikater for aksjer med begrenset aksje tildelt i henhold til planen, skal slike sertifikater registreres i deltakerens navn og skal være forsynt med en hensiktsmessig legende som refererer til vilkårene og betingelsene som gjelder for denne prisen. (c) § 409A. Restricted Stock Awards may be granted hereunder by the Committee either (i) in a manner consistent with Section 409A such that the Restricted Stock Award not provide for a deferral of compensation under Section 409A, or (ii) in a manner that is intended from grant to subject the Restricted Stock Award to Section 409A. In the event Restricted Stock Awards are subject to Section 409A, then the Restricted Stock Award shall be settled and paid in a single lump sum (i) as of a specified date, (ii) upon the Participant146s Separation from Service, or (iii) the earlier of (i) or (ii) hereof, as specified and set forth by the Committee in an Award Agreement at the time of grant, and shall otherwise be granted, administered, settled and paid in accordance with Section 409A. Notwithstanding the foregoing, any such settlement and payment may not be made to a Key Employee upon a Separation from Service before the date which is 6 months after the date of the Key Employee146s Separation from Service (or, if earlier, the date of death of the Key Employee). SECTION 9. PERFORMANCE AWARDS Performance Awards may be paid in cash, Shares, other property, or any combination thereof, and may be subject to such other terms and conditions as the Committee shall deem advisable or appropriate, consistent with the provisions of the Plan as set forth, in the sole discretion of the Committee at the time of payment. The performance levels to be achieved for each Performance Period and the amount of the Award to be distributed shall be conclusively determined by the Committee. Performance Awards will be paid in a lump sum prior to the 15 th day of the third month of the year immediately following the year in which the close of the Performance Period occurs in accordance with the applicable short-term deferral exception provisions of Section 409A, or, in accordance with procedures established by the Committee and the applicable provisions of Section 409A, on a deferred basis pursuant to Section 15 hereof, if applicable. All Performance Awards must satisfy the definition of 147performance-based compensation148 of Treasury Regulation Section 1.409A-1(e), but the Committee may designate whether any Performance Award, either alone or in addition to other Awards granted under the Plan, being granted to any Employee is intended to be 147performance-based compensation148 as that term is used in Section 162(m) of the Code. Any such awards designated to be 147performance-based compensation148 within the meaning of Code Section 162(m) shall be conditioned on the achievement of one or more performance measures, to the extent required by Code Section 162(m), and shall be issued in accordance with Section 12. Except in the event of a Change in Control or Change in Control Event described in Section 11, in the event Performance Awards are subject to Section 409A, then the Performance Award shall be settled and paid in a single lump sum (i) as of a specified date, (ii) upon the Participant146s Separation from Service, or (iii) the earlier of (i) or (ii) hereof, in accordance with rules established by the Committee at the time of grant, and shall otherwise be granted, administered, settled and paid in accordance with Section 409A. Notwithstanding the foregoing, any such settlement and payment may not be made to a Key Employee upon a Separation from Service before the date which is 6 months after the date of the Key Employee146s Separation from Service (or, if earlier, the date of death of the Key Employee). SECTION 10. OTHER STOCK UNIT AWARDS (a) Stock and Administration. Awards that are valued by reference to, or are otherwise based on, Shares (147Other Stock Unit Awards148) may be granted hereunder to Participants, either alone or in addition to other Awards granted under the Plan, and such Other Stock Unit Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan. Other Stock Unit Awards may be paid in Shares, cash or any other form of property, as the Committee shall determine. Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Employees to whom and the time or times at which such Awards shall be made, the number of Shares to be issued or delivered pursuant to such Awards, and all other conditions of the Awards. Any Other Stock Unit Awards shall be subject to such other terms and conditions as the Committee shall deem advisable or appropriate, consistent with the provisions of the Plan as herein set forth. Except in the event of a termination of employment due to death, Retirement, Total and Permanent Disability, Change in Control or the sale or restructuring of a business or plant closing, Other Stock Unit Awards shall have a Vesting Period of not less than three (3) years, which may include pro-rata lapsing of restrictions thereon. In the event of a termination of employment due to death, Total and Permanent Disability or a Change in Control, Other Stock Awards immediately and fully vest. In the event of a termination of employment due to Retirement or a sale or restructuring of a business or plant closing, Other Stock Awards vest pro-rata. Notwithstanding the above, Awards covering up to five (5) percent of the total number of Shares that may be issued or delivered under the Plan (other than as Awards of Options or Stock Appreciation Rights) may contain no restrictions or be subject to a Vesting Period of less than three (3) years. (b) Other Provisions. Shares (including securities convertible into Shares) subject to Awards granted under this Section 10 may be issued for no cash consideration or for such minimum consideration as may be required by applicable law. (c) Section 409A. Other Stock Unit Awards may be granted hereunder by the Committee (i) in a manner consistent with Section 409A such that the Other Stock Unit Awards will not provide for a deferral of compensation under Section 409A, or (ii) in a manner that will subject the Other Stock Unit Award to Section 409A. In the event Other Stock Unit Awards are granted to be so subject to Section 409A, then the Other Stock Unit Awards shall be settled and paid in a single lump sum (i) as of a specified date, (ii) upon the Participant146s Separation from Service, or (iii) the earlier of (i) or (ii) hereof, as specified by the Committee at the time of grant or otherwise in a fashion which is compliant with Section 409A, and shall otherwise be granted, administered, settled and paid in compliance with Section 409A. Notwithstanding the foregoing, any such settlement and payment may not be made to a Key Employee upon a Separation from Service before the date which is 6 months after the date of the Key Employee146s Separation from Service (or, if earlier, the date of death of the Key Employee). (d) Section 162(m) Deferrals. Except for Other Stock Unit Awards which are subject to the satisfaction of performance goals, any outstanding Other Stock Unit Awards that are scheduled to be settled or otherwise paid to a Participant during a taxable year in which such Participant is, or is likely to be, a Covered Employee, shall automatically be deferred into the Pfizer Inc Deferred Compensation Plan, as Amended and Restated, effective January 1, 2008, in accordance with the terms of such plan and in compliance with the applicable provisions of Section 409A until the earlier of (i) the first day of the Participant146s first taxable year in which the Company reasonably anticipates that if the payment is made during such year, the deduction of such payment by the Company will not be barred by the application of Code Section 162(m), or (ii) the Participant146s Separation from Service. Notwithstanding the foregoing, any such payment may not be made to a Key Employee upon a Separation from Service before the date which is 6 months after the date of the Key Employee146s Separation from Service (or, if earlier, the date of death of the Key Employee). SECTION 11. CHANGE IN CONTROL PROVISIONS (a) Unless the Committee or Board shall determine otherwise at the time of grant with respect to a particular Award, and notwithstanding any other provision of the Plan to the contrary, in the event a Participant146s employment or service is involuntarily terminated without Cause (as determined by the Committee or Board in its sole discretion) during the 24-month period following a Change in Control, and provided that, with respect to any Awards that are considered deferred compensation under Section 409A, the Participant146s involuntary termination of employment or service also constitutes a Separation from Service: (i) notwithstanding a provision in any Award Agreement to the contrary, any Options and Stock Appreciation Rights outstanding and which are not then exercisable and vested shall upon such involuntary termination fully vest and become exercisable for their full term, and shall remain in effect for the respective terms of such award a s set forth in the grant documents at the time of grant notwithstanding such involuntary termination. (ii) any vested Options and Stock Appreciation Rights outstanding shall remain in effect and be exercisable for the respective terms of such award as set forth in the grant documents at the time of grant notwithstanding such involuntary termination (iii) the restrictions and deferral limitations applicable to any Restricted Stock shall lapse, and such Restricted Stock shall immediately become free of all restrictions and limitations and become fully vested and transferable to the full extent of the original grant (iv) all Performance Awards shall be considered to be earned and payable in full, based on the applicable performance criteria or, if not determinable, at the target level and any deferral or other restriction shall lapse and such Performance Awards shall be immediately settled and paid upon the Participant146s Separation from Service (and the Participant shall have no discretion to choose the date of settlement and payment) provided, however, that any such settlement and paym ent may not be made to a Key Employee upon a Separation from Service before the date which is 6 months after the date of the Key Employee146s Separation from Service (or, if earlier, the date of death of the Key Employee) and (v) the restrictions and deferral limitations and other conditions applicable to any Other Stock Unit Awards or any other Awards shall immediately lapse, and any such Other Stock Unit Awards or such other Awards shall become free of all restrictions, limitations or conditions and become fully vested and transferable to the full extent of the original grant (vi) notwithstanding any other provision of this Section 11(a), the proceeds, from exercise or otherwise, of any Options, Stock Appreciation Rights, Restricted Stock, Performance Shares or Other Stock Unit Awards that are considered deferred compensation under Section 409A shall be paid (and if not exercised prior to the date of the Participant146s Separation from Service, shall be deemed exercised and settled a nd paid) upon the Participant146s Separation from Service (and the Participant shall have no discretion to choose the date of payment) provided, however, that any such payment may not be made to a Key Employee upon a Separation from Service before the date which is 6 months after the date of the Key Employee146s Separation from Service (or, if earlier, the date of death of the Key Employee). (b) Change in Control Cash Out. Notwithstanding any other provision of the Plan, in the event of a Change in Control, or, with respect to Options, Stock Appreciation Rights, Restricted Stock, Performance Shares or Other Stock Unit Awards that are considered deferred compensation under Section 409A, in the event of a Change in Control that is also a 147Change in Control Event148 described in Section 409A(a)(2)(A)(v) or otherwise under Section 409A, (i) the Committee or Board may, in its discretion, provide in the terms of the Option, Stock Appreciation Right, Restricted Stock, Performance Share or Other Stock Unit Award that is intended to be exempt from Section 409A, that such Option, Stock Appreciation Right, Restricted Stock, Performance Share or Other Stock Unit Award shall, upon the occurrence of a Change in Control, be cancelled in exchange for a cash payment to be made within 60 days of the Change in Control (and the Participant shall have no discretion to choose the date of payment) in an amount equal to the a mount by which the Fair Market Value per Share on the date of the payment exceeds the purchase price per Share under the Option or Stock Appreciation Right multiplied by the number of Shares issued and delivered under the Option or Stock Appreciation Right, or in an amount equal to the Fair Market Value per Share on the date of the payment for the Restricted Stock, Performance Share, or Other Stock Unit Award, or (ii) the Committee or Board may, in its discretion, provide in the terms of an Option, Stock Appreciation Right, Restricted Stock, Performance Share, or Other Stock Unit Award that is deferred compensation under Section 409A, that such Option, Stock Appreciation Right, Restricted Stock, Performance Share or Other Stock Unit shall, upon the occurrence of a Change in Control Event, be cancelled in exchange for a cash payment to be made within 60 days of the Change in Control Event (and the Participant shall have no discretion to choose the date of payment) in an amount equal to the amount by which the Change in Control Price per Share exceeds the purchase price per Share under the Option or Stock Appreciation Right, multiplied by the number of Shares issued and delivered under the Option or Stock Appreciation Right, or in an amount equal to the Change in Control Price per Share for the Restricted Stock, Performance Share or Other Stock Unit Award. (c) Notwithstanding the above, if the Change in Control is the result of a transaction pursuant to Section 2(e)(iii) and the surviving entity does not assume, substitute or replace Awards, such Awards shall become fully vested and immediately exercisable or transferable to the full extent of the original grant upon the Change in Control and shall be distributed, settled or paid in full within 90 days of the Change in Control as provided in Section 11(b) above. SECTION 12. CODE SECTION 162(m) PROVISIONS (a) Notwithstanding any other provision of the Plan if the Committee determines at the time, a Performance Award is granted to a Participant who is then an officer that such Participant is, or is likely to be as of the end of the tax year in which the Company would ordinarily claim a tax deduction in connection with such Award, a Covered Employee, then the Committee may provide that this Section 12 is applicable to such Award. (b) If a Performance Award is subject to this Section 12, then the lapsing of restrictions thereon and the distribution of cash, Shares or other property pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance goals established by the Committee, which shall be based on the attainment of specified levels of one or any combination of the following: revenues, cost reductions, operating income, income before taxes, net income, adjusted net income, earnings per share, adjusted earnings per share, operating margins, working capital measures, return on assets, return on equity, return on invested capital, cash flow measures, market share, shareholder return or economic value added of the Company or the Affiliate or division of the Company for or within which the Participant is primarily employed. Such performance goals also may be based on the achievement of specified levels of Company performance (or performance of an applicable Affiliate or division of the Company) under one or more of the measures described above relative to the performance of other corporations. Such performance goals shall be set by the Committee within the time period prescribed by, and shall otherwise comply with the requirements of, Section 162(m) of the Code, or any successor provision thereto, and the regulations thereunder. (c) In setting performance goals, the Committee may provide in any such Award Agreement that resulting from the following items shall be included or excluded: (i) asset write-downs (ii) litigation or claim judgments or settlements (iii) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (iv) charges for any reorganization and restructuring programs (v) extraordinary nonrecurring charges or losses as described in Accounting Principles Board Opinion No. 30 andor in Management146s Discussion and Analysis of Financial Condition and Results of Operations appearing in the Company146s annual report to stockholders for the applicable year, (vi) the impact of acquisitions or divestitures (vii) foreign exchange gains and losses and (viii) gains or losses on asset sales. To the extent such inclusions or exclusions affect Awards to a Covered Employee, they shall be prescribed in a form that satisfies the requirements for 147performance-based compensation148 within the meaning of Section 162(m) of the Code. (d) Notwithstanding any provision of the Plan other than Section 11, with respect to any Performance Award that is subject to this Section 12, the Committee may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the Committee may not waive the achievement of the applicable performance goals except in the case of the death or Total and Permanent Disability of the Participant, or under such other conditions where such waiver will not jeopardize the treatment of other Awards under this Section as 147performance-based compensation148 under Section 162(m) of the Code. (e) The Committee shall have the power to impose such other restrictions on Awards subject to this Section 12 as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for 147performance-based compensation148 within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision thereto. SECTION 13. AMENDMENTS AND TERMINATION The Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time provided, however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without (a) stockholder approval if such approval is necessary to qualify for or comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to qualify or comply, (b) the consent of the affected Participant, if such action would materially impair the rights of such Participant under any outstanding Award or (c) approval of the holders of a majority of the outstanding Common Stock present or represented by proxy and entitled to vote at a meeting of the Company146s stockholders with respect to any alteration or amendment to the Plan which increases the maximum number of shares of Common Stock which may be issued under the Plan or the number of shares of such stock which may be issued to any one Participant, extends the term of the Plan or of options granted thereunder, changes the eligibility criteria in Section 5, or reduces the option price below that now provided for in the Plan. In addition, notwithstanding the above, any termination of the Plan shall comply with all requirements under Section 409A that are necessary to be met to avoid adverse tax consequences to Participants under Section 409A. The Committee may delegate to another committee, as it may appoint, the authority to take any action consistent with the terms of the Plan, either before or after an Award has been granted, which such other committee deems necessary or advisable to comply with any government laws or regulatory requirements of a foreign country, including but not limited to, modifying or amending the terms and conditions governing any Awards, or establishing any local country plans as sub-plans to this Plan. In addition, under all circumstances, the Committee may make non-substantive administrative changes to the Plan as to conform with or take advantage of governmental requirements, statutes or regulations. The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, but no such amendment shall (a) materially impair the rights of any Participant without his or her consent, (b) except for adjustments made pursuant to Section 4(c) or in connection with Substitute Awards, reduce the exercise price of outstanding Options or Stock Appreciation Rights or cancel or amend outstanding Options or Stock Appreciation Rights for the purpose of repricing, replacing or regranting such Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights or cancel or amend outstanding Options or Stock Appreciation Rights with an exercise price that is greater than the Fair Market Value of a Share for the purpose of exchanging such Options or Stock Appreciation Rights for cash or any other Awards without stockholder approval or (c) cause any Award intended to be exempt from Section 409A t o become subject to Section 409A. Notwithstanding the foregoing, the Committee may amend the terms of any award heretofore granted, prospectively or retroactively, in order to cure any potential defects under Section 409A, in a manner deemed appropriate by the Committee in its sole discretion, without the consent of the Participant. Any change or adjustment to an outstanding Incentive Stock Option shall not, without the consent of the Participant, be made in a manner so as to constitute a 147modification148 that would cause such Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option. Notwithstanding the foregoing, any adjustments made pursuant to Section 4(c) shall not be subject to these restrictions. Notwithstanding the foregoing, no amendment of the Plan shall apply to amounts that were earned and vested (within the meaning of Section 409A) under the Plan prior to 2005, unless the amendment specifically provides that it applies to such amounts. The purpose of this restriction is to prevent a Plan amendment from resulting in an inadvertent 147material modification148 to amounts that are Grandfathered Benefits. SECTION 14. DIVIDENDS Subject to the provisions of the Plan and any Award Agreement, the recipient of an Award (including, without limitation, any deferred Award) may, if so determined by the Committee, be entitled to receive, currently or on a deferred basis, cash or stock dividends, or cash payments in amounts equivalent to cash or stock dividends on Shares (147dividend equivalents148) with respect to the number of Shares covered by the Award, as determined by the Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested. Provided however, that if the receipt of any such dividend equivalents granted with respect to Options, Restricted Stock, Other Stock Unit Awards and Stock Appreciation Rights is contingent upon the exercise of the Options or Stock Appreciation Rights, or the vesting of the Restricted Stock or Other Stock Unit Awards, then the Options, Restricted Stock, Other Stock Unit Awards, or Stock Appreciation Rights shall be granted and administered in accordance with all applicable provisions of Section 409A. SECTION 15. DEFERRAL OF AWARDS UNDER THE COMPANY146S DEFERRED COMPENSATION PLAN Except as otherwise provided in this Plan, the Committee may provide upon the granting of an Award hereunder, other than an Award that is intended to be a stock right which does not constitute a deferral of compensation within the meaning of Treasury Regulations Section 1.409A-1(a)(5) so that it is subject to the requirement that it not include any feature for the deferral of compensation until an event enumerated in such provision, that it is eligible to be deferred under, and pursuant to the terms and conditions of, the Pfizer Inc Deferred Compensation Plan, as Amended and Restated, effective January 1, 2008. Any such deferral shall be in accordance with the terms of such plan and in compliance with the applicable provisions of Section 409A. SECTION 16. GENERAL PROVISIONS (a) 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 and may be exercised, during the lifetime of the Awardee, only by the Awardee provided that the Committee, in its sole discretion, may permit additional transferability, on a general or specific basis, other than to a third party for consideration, and may impose conditions and limitations on any permitted transferability. (b) No Employee shall have the right to be selected to receive an Option or other Award under this Plan or, having been so selected, to be selected to receive a future Award grant or Option. Neither the Award nor any benefits arising out of this Plan shall constitute part of a Participant146s employment or service contract with the Company or any Affiliate and, accordingly, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Company without giving rise to liability on the part of the Company or any Affiliate for severance payments. The Awards under this Plan are not intended to be treated as compensation for any purpose under any other Company plan. (c) No Employee shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Employees or Participants under the Plan. (d) The prospective recipient of any Award under the Plan shall not, with respect to such Award, be deemed to have become a Participant, or to have any rights with respect to such Award until and unless such recipient shall have accepted any Award Agreement or other instrument evidencing the Award. (e) Nothing in the Plan or any Award granted under the Plan shall be deemed to constitute an employment or service contract or confer or be deemed to confer on any Employee or Participant any right to continue in the employ or service of, or to continue any other relationship with, the Company or any Affiliate or limit in any way the right of the Company or any Affiliate to terminate an Employee146s employment or Participant146s service at any time, with or without Cause. (f) All Shares delivered under the Plan pursuant to any Award shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Shares are then listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. (g) In appropriate circumstances, the Committee in its sole discretion may determine that an Award shall be cancelled, or the shares or cash paid or gain realized from an Award shall be returned to the Company. (h) No Award granted hereunder shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Committee in its sole discretion has determined that any such offer, if made, would comply with all applicable requirements of the U. S. federal securities laws and any other laws to which such offer, if made, would be subject. (i) Except as otherwise required in any applicable Award Agreement or by the terms of the Plan, recipients of Awards under the Plan shall not be required to make any payment or provide consideration other than the rendering of services. (j) The Company and its Affiliates shall be authorized to withhold from any Award granted or payment due under the Plan, andor to withhold from wages or other cash compensation paid to the Participant, the minimum statutory amount of withholding taxes due in respect of an Award or payment hereunder and to take such other action as may be necessary in the opinion of the Company or Affiliate to satisfy all obligations for the payment of such taxes. Such other actions may include, without limitation, the requirement that the Participant execute a market sale of Shares or other consideration received pursuant to the Award. The Committee shall be authorized to establish procedures for elections by Participants to satisfy such obligation for the payment of such taxes by delivery of or transfer of Shares to the Company (in a manner limited so as to avoid adverse accounting treatment for the Company), or by directing the Company to retain Shares (up to the employee146s minimum statutory required tax withholding rate) otherwise deliverable in connection with the Award. (k) Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required and such arrangements may be either generally applicable or applicable only in specific cases. (l) Any Award shall contain a provision that it may not be exercised at a time when the exercise thereof or the issuance of shares thereunder would constitute a violation of any federal or state law or listing requirements of the New York Stock Exchange for such shares or a violation of any foreign jurisdiction where Awards are or will be granted under the Plan. The provisions of the Plan shall be construed, regulated and administered according to the laws of the State of New York without giving effect to principles of conflicts of law, except to the extent superseded by any controlling Federal statute. Notwithstanding anything herein to the contrary, the terms of the Plan are intended to, and shall be interpreted and applied so as to, comply in all respects with Section 409A. The Committee may amend the terms of any award heretofore granted, prospectively or retroactively, in order to cure any potential defects under Section 409A, in a manner deemed appropriate by the Committee in its sole discretion, without the consent of the Participant. Nothing in this Section 16(l) shall be construed as an admission that any of the compensation andor benefits payable under this Plan constitutes 147deferred compensation148 subject to Section 409A. (m) If any provision of the Plan is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, it shall be stricken and the remainder of the Plan shall remain in full force and effect. (n) Awards may be granted to Participants who are foreign nationals or employed outside the United States, or both, on such terms and conditions different from those applicable to Awards to Employees employed in the United States as may, in the judgment of the Committee, be necessary or desirable in order to recognize differences in local law or tax policy. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company146s obligation with respect to tax equalization for Employees on assignments outside their home country. (o) If approved by the Committee in its sole discretion, an Employee146s absence or leave because of military or governmental service, Total and Permanent Disability or other reason shall not be considered an interruption of employment for any purpose under the Plan provided, however, that to the extent an Award under this Plan is subject to Section 409A, such absence or leave shall be considered a Separation from Service to the extent provided by Section 409A. SECTION 17. TERM OF PLAN The Plan shall terminate on the tenth anniversary of the Effective Date, unless sooner terminated by the Board pursuant to Section 13. SECTION 18. COMPLIANCE WITH SECTION 16 With respect to Participants subject to Section 16 of the Exchange Act (147Members148), transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent that compliance with any Plan provision applicable solely to such Members that is included solely for purposes of complying with Rule 16b-3 is not required in order to bring a transaction by such Member in compliance with Rule 16b-3, it shall be deemed null and void as to such transaction, to the extent permitted by law and deemed advisable by the Committee. To the extent any provision in the Plan or action by the Committee involving such Members is deemed not to comply with an applicable condition of Rule 16b-3, it shall be deemed null and void as to such Members, to the extent permitted by law and deemed advisable by the Committee. Distribution, settlement or payment of amounts that were earned and vested (within the meaning of Section 409A) under the Plan prior to 2005 (and earnings thereon) and are exempt from the requirements of Section 409A shall be made in accordance with certain Plan terms as in effect on December 31, 2004, and as set forth in this Appendix A. Unless otherwise specified in this Appendix A, Grandfathered Benefits shall be governed by the terms of the Plan. SECTION 2. DEFINITIONS As used in this Appendix A, all terms have the same meaning as defined in Section 2 of the Plan, except as set forth below: (a) 147Fair Market Value148 shall mean, with respect to Shares, as of any date, the average of the high and low trading prices for the Shares as reported on the New York Stock Exchange for that date or, if no such prices are reported for that date, the average of the high and low trading prices on the next preceding date for which such prices were reported, unless otherwise determined by the Committee. SECTION 6. STOCK OPTIONS Options may be granted hereunder to any Participant, either alone or in addition to other Awards granted under the Plan and shall be subject to the following terms and conditions: (a) Option Price. The option price per Share shall be not less than the Fair Market Value of the Shares on the date the Option is granted. (b) Number of Shares. The Option shall state the number of Shares covered thereby. (c) Exercise of Option. Unless otherwise determined by the Committee, an Option will be deemed exercised by the optionee, or in the event of death, an option shall be deemed exercised by the estate of the optionee, or by a person who acquired the right to exercise such option by bequest or inheritance or by reason of the death of the optionee, upon delivery of (i) a notice of exercise to the Company or its representative, or by using other methods of notice as the Committee shall adopt, and (ii) accompanying payment of the option price in accordance with any restrictions as the Committee shall adopt. The notice of exercise, once delivered, shall be irrevocable. Notwithstanding the above, and unless the Committee determines otherwise, in the event that (i) an optionee dies, (ii) his representative has a right to exercise an Option, (iii) the Option is not exercised by the last day on which it is exercisable, and (iv) the option price per share is below the Fair Market Value of a Share on such date, the Option shall be deemed exercised on such date via a cashless exercise procedure and the resulting proceeds net of any required tax withholding shall be paid to the representative. (d) Other Provisions. The Option shall also be subject to such other terms and conditions as the Committee shall deem advisable or appropriate, consistent with the provisions of the Plan as herein set forth. In addition, Incentive Stock Options shall contain such other provisions as may be necessary to meet the requirements of the Code and the Treasury Department rulings and regulations issued thereunder with respect to Incentive Stock Options. SECTION 9. PERFORMANCE AWARDS Performance Awards may be paid in cash, Shares, other property, or any combination thereof, and may be subject to such other terms and conditions as the Committee shall deem advisable or appropriate, consistent with the provisions of the Plan as set forth, in the sole discretion of the Committee at the time of payment. The performance levels to be achieved for each Performance Period and the amount of the Award to be distributed shall be conclusively determined by the Committee. Performance Awards may be paid in a lump sum or in installments following the close of the Performance Period or, in accordance with procedures established by the Committee, on a deferred basis. SECTION 10. OTHER STOCK UNIT AWARDS (a) Stock and Administration. Awards that are valued by reference to, or are otherwise based on, Shares (147Other Stock Unit Awards148) may be granted hereunder to Participants, either alone or in addition to other Awards granted under the Plan, and such Other Stock Unit Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan. Other Stock Unit Awards may be paid in Shares, cash or any other form of property, as the Committee shall determine. Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Employees to whom and the time or times at which such Awards shall be made, the number of Shares to be granted pursuant to such Awards, and all other conditions of the Awards. Any Other Stock Unit Awards shall be subject to such other terms and conditions as the Committee shall deem advisable or appropriate, consistent with the provisions of the Plan as herein set forth. Unless the Committee determines otherwise to address specific considerations, Other Stock Unit Awards granted to Employees shall have a vesting period of not less than one year. (b) Other Provisions. Shares (including securities convertible into Shares) subject to Awards granted under this Section 10 may be issued for no cash consideration or for such minimum consideration as may be required by applicable law. SECTION 11. CHANGE IN CONTROL PROVISIONS (a) Unless the Committee or Board shall determine otherwise at the time of grant with respect to a particular Award, and notwithstanding any other provision of the Plan to the contrary, in the event a Participant146s employment or service is involuntarily terminated without cause (as determined by the Committee or Board in its sole discretion) during the 24-month period following a Change in Control: (i) any Options and Stock Appreciation Rights outstanding, and which are not then exercisable and vested, shall become immediately fully vested and exercisable (ii) the restrictions and deferral limitations applicable to any Restricted Stock shall lapse, and such Restricted Stock shall immediately become free of all restrictions and limitations and become fully vested and transferable to the full extent of the original grant (iii) all Performance Awards shall be considered to be earned and payable in full, based on the applicable performance criteri a or, if not determinable, at the target level and any deferral or other restriction shall lapse and such Performance Awards shall be immediately settled or distributed and (iv) the restrictions and deferral limitations and other conditions applicable to any other Stock Unit Awards or any other Awards shall immediately lapse, and any such Other Stock Unit Awards or such other Awards shall become free of all restrictions, limitations or conditions and become fully vested and transferable to the full extent of the original grant. (b) Change in Control Cash Out. Notwithstanding any other provision of the Plan, in the event of a Change in Control the Committee or Board may, in its discretion, provide that each Option or Stock Appreciation Right shall, upon the occurrence of a Change in Control, be cancelled in exchange for a cash payment to be made within 60 days of the Change in Control in an amount equal to the amount by which the Change in Control Price per Share exceeds the purchase price per Share under the Option or Stock Appreciation Right (the 147spread148) multiplied by the number of Shares granted under the Option or Stock Appreciation Right. Pfizer (PFE) Exercise of Option. Unless otherwise determined by the Committee, an Option will be deemed exercised by the optionee, or in the event of death, an option shall be deemed exercised by the estate of the optionee, or by a person who acquired the right to exercise such option by bequest or inheritance or by reason of the death of the optionee, upon delivery of (i) a notice of exercise to the Company or its representative, or by using other methods of notice as the Committee shall adopt, and (ii) accompanying payment of the option price in accordance with any restrictions as the Committee shall adopt. The notice of exercise, once delivered, shall be irrevocable. Notwithstanding the above, and unless the Committee determines otherwise, in the event that (i) an optionee dies, (ii) his representative has a right to exercise an Option, (iii) the Option is not exercised by the last day on which it is exercisable, and (iv) the option price per share is below the Fair Market Value of a Share on such date, the Option shall be deemed exercised on such date via a cashless exercise procedure and the resulting proceeds net of any required tax withholding shall be paid to the representative. Other Provisions. The Option shall also be subject to such other terms and conditions as the Committee shall deem advisable or appropriate, consistent with the provisions of the Plan as herein set forth. In addition, Incentive Stock Options shall contain such other provisions as may be necessary to meet the requirements of the Code and the Treasury Department rulings and regulations issued thereunder with respect to Incentive Stock Options. These excerpts taken from the PFE 10-K filed Feb 29, 2008. B. Stock Options Stock options, which entitle the holder to purchase, at the end of a vesting term, a specified number of shares of Pfizer common stock at a price per share set equal to the market price of Pfizer common stock on the date of grant, are accounted for at fair value at the date of grant in the income statement beginning in 2006. These fair values are generally amortized on an even basis over the vesting term into Cost of sales, Selling, informational and administrative expenses and Research and development expenses, as appropriate. In 2005 and earlier years, stock options were accounted for under APB No. 25, using the intrinsic value method in the income statement and fair value information was disclosed. In these disclosures of fair value, we allocated stock option compensation expense based on the nominal vesting period, rather than the expected time to achieve retirement eligibility. In 2006, we changed our method of allocating stock option compensation expense to a method based on the substantive vesting period for all new awards, while continuing to allocate outstanding nonvested awards not yet recognized as of December 31, 2005, under the nominal vesting period method. Specifically, under this prospective change in accounting policy, compensation expense related to stock options granted prior to 2006, that are subject to accelerated vesting upon retirement eligibility, is being recognized over the vesting term of the grant, even though the service period after retirement eligibility is not considered to be a substantive vesting requirement. The impact of this change was not significant. All employees may receive stock option grants. In virtually all instances, stock options vest after three years of continuous service from the grant date and have a contractual term of ten years for certain grants to certain members of management, vesting typically occurs in equal annual installments after three, four and five years from the grant date. In all cases, even for stock options that are subject to accelerated vesting upon voluntary retirement, stock options must be held for at least one year from grant date before any vesting may occur. In the event of a divestiture or restructuring, options held by employees are immediately vested and are exercisable from three months to their remaining term, depending on various conditions. The fair value of each stock option grant is estimated on the grant date using, for virtually all grants, the Black-Scholes-Merton option-pricing model, which incorporates a number of valuation assumptions noted in the following table, shown at their weighted-average values: Determined using historical exercise and post-vesting termination patterns. Starting in the first quarter of 2006, we changed our method of estimating expected stock price volatility to reflect market-based inputs under emerging stock option valuation considerations. We use the implied volatility in a long-term traded option, after consideration of historical volatility. In 2005, we used an average term structure of volatility after consideration of historical volatility. B. Stock Options Stock options, which entitle the holder to purchase, at the end of a vesting term, a specified number of shares of Pfizer common stock at a price per share set equal to the market price of Pfizer common stock on the date of grant, are accounted for at fair value at the date of grant in the income statement beginning in 2006. These fair values are generally amortized on an even basis over the vesting term into Cost of sales, Selling, informational and administrative expenses and Research and development expenses, as appropriate. In 2005 and earlier years, stock options were accounted for under APB No. 25, using the intrinsic value method in the income statement and fair value information was disclosed. In these disclosures of fair value, we allocated stock option compensation expense based on the nominal vesting period, rather than the expected time to achieve retirement eligibility. In 2006, we changed our method of allocating stock option compensation expense to a method based on the substantive vesting period for all new awards, while continuing to allocate outstanding nonvested awards not yet recognized as of December 31, 2005, under the nominal vesting period method. Specifically, under this prospective change in accounting policy, compensation expense related to stock options granted prior to 2006, that are subject to accelerated vesting upon retirement eligibility, is being recognized over the vesting term of the grant, even though the service period after retirement eligibility is not considered to be a substantive vesting requirement. The impact of this change was not significant. All employees may receive stock option grants. In virtually all instances, stock options vest after three years of continuous service from the grant date and have a contractual term of ten years for certain grants to certain members of management, vesting typically occurs in equal annual installments after three, four and five years from the grant date. In all cases, even for stock options that are subject to accelerated vesting upon voluntary retirement, stock options must be held for at least one year from grant date before any vesting may occur. In the event of a divestiture or restructuring, options held by employees are immediately vested and are exercisable from three months to their remaining term, depending on various conditions. The fair value of each stock option grant is estimated on the grant date using, for virtually all grants, the Black-Scholes-Merton option-pricing model, which incorporates a number of valuation assumptions noted in the following table, shown at their weighted-average values: Starting in the first quarter of 2006, we changed our method of estimating expected stock price volatility to reflect market-based inputs under emerging stock option valuation considerations. We use the implied volatility in a long-term traded option, after consideration of historical volatility. In 2005, we used an average term structure of volatility after consideration of historical volatility. This excerpt taken from the PFE DEF 14A filed Mar 15, 2007. Stock options provide a material incentive to employees by providing an opportunity for a larger stock ownership stake in the Company. The ten-year term of the options seeks to reflect the long-term nature of the discovery and development of new medicines. Stock options are awarded under the 2004 Stock Plan to the Named Executive Officers and certain other executives of the Company in February of each year. Prior to September 2006, stock options were issued with an exercise price equal to the average of the highest and lowest price on the date of the grant. The exercise price for option grants issued after September 2006 is based on the closing price of Pfizer common stock on the date of the grant. Stock options will have actual delivered compensation value only if the market price of the common stock increases after the grant date. In determining the size of stock option grants to participating executives and other management employees, the Committee considers similar awards to individuals holding comparable positions in our peer groups, Company performance against the strategic plan, individual performance against the individual146s objectives, as well as the allocation of overall share usage attributed to executives and the total number of shares issued in the grant relative to our outstanding shares. Actual stock option awards can range from zero to two times the target awards based on individual performance. Stock options were granted to participating executive officers in February, 2006. These options vest on the third anniversary of the grant. All stock option grants have a ten-year term. If an executive retires after having met the retirement eligibility criteria (typically age 55 with 10 years of service), and has options that were held for at least one full year prior to retirement, the stock options will generally become exercisable on schedule and remain exercisable for the full term of the grant. If the retirement criteria have not been met, vested exercisable stock options remain exercisable for up to three months from the recipient146s date of termination from service and unvested stock options are forfeited. Our stock plans strictly prohibit repricing of options. This excerpt taken from the PFE 10-K filed Mar 1, 2007. B. Stock Options Stock options, which entitle the holder to purchase, at the end of a vesting term, a specified number of shares of Pfizer common stock at a price per share set equal to the market price of Pfizer common stock on the date of grant, are accounted for at fair value at the date of grant in the income statement beginning in 2006. These fair values are generally amortized on an even basis over the vesting term into Cost of sales, Selling, informational and administrative expenses and Research and development expenses . som hensiktsmessig. In 2005 and earlier years, stock options were accounted for under APB No. 25, using the intrinsic value method in the income statement and fair value information was disclosed. In these disclosures of fair value, we allocated stock option compensation expense based on the nominal vesting period, rather than the expected time to achieve retirement eligibility. In 2006, we changed our method of allocating stock option compensation expense to a method based on the substantive vesting period for all new awards, while continuing to allocate outstanding nonvested awards not yet recognized as of December 31, 2005 under the nominal vesting period method. Specifically, under this prospective change in accounting policy, compensation expense related to stock options granted prior to 2006, that are subject to accelerated vesting upon retirement eligibility, is being recognized over the vesting term of the grant, even though the service period after retirement eligibility is not considered to be a substantive vesting requirement. The impact of this change was not significant. All employees may receive stock option grants. In virtually all instances, stock options vest after three years of continuous service from the grant date and have a contractual term of ten years for certain grants to certain members of management, vesting typically occurs in equal annual installments after three, four and five years from the grant date. In all cases, even for stock options that are subject to accelerated vesting upon voluntary retirement, stock options must be held for at least one year from grant date before any vesting may occur. In the event of a divestiture or restructuring, options held by employees are immediately vested and are exercisable from three months to their remaining term, depending on various conditions. The fair value of each stock option grant is estimated on the grant date using, for virtually all grants, the Black-Scholes-Merton option-pricing model, which incorporates a number of valuation assumptions noted in the following table, shown at their weighted-average values: Determined using historical exercise and post-vesting termination patterns. In the first quarter of 2006, we changed our method of estimating expected stock price volatility to reflect market-based inputs under emerging stock option valuation considerations. We use the implied volatility in a long-term traded option, after consideration of historical volatility. In 2005 and 2004, we used an average term structure of volatility quoted to us by financial institutions, after consideration of historical volatility. EXCERPTS ON THIS PAGE:Your Complete Guide to Employee Stock Options and Tax Reporting Forms Employers often compensate employees with benefits other than just a pay check. Stock options and stock purchase plans are becoming increasingly popular. Here are some of the more common employee stock options and plans, and the necessary tax reporting forms, to make tax time less stressful. Employee stock options and plans Employee Stock Purchase Plans (ESPP) This voluntary program, provided through your employer, allows you to make payroll contributions to be used to purchase company stock at a discount. The discount can be up to 15 lower than the market price. Generally there is an offering period in which the employee can make contributions for this program. The market price of the stock for purchase is then determined on the purchase date, at which time the employees contributions are used to purchase stock at a discount on the employees behalf. Based upon how long the employee holds the stock, the discount is considered ordinary income and included on Form W-2 by the employer (nonqualifying position) or it is considered capital gain income and accounted for at the time of sale (qualifying position). For nonqualifying positions . your adjusted cost basis is the compensation income reported on Form W-2 plus your acquisition cost. For qualifying positions . your cost basis is simply the acquisition cost allowing the discount received to be reported as a capital gain instead of ordinary income. Restricted Stock Units (RSU) These stock units are awarded to an employee as a form of compensation. The employee does not receive the stock at the time of the award, but has a specific vesting plan outlining when the employee will receive the stock. At the time the stock vests, the employee receives the units and the fair market value (FMV) of the stock received on that date is considered income. Depending on the employers plan, you may elect to pay taxes on the income at the time the stock is awarded, at the time the stock vests, or at the vest date. The amount reported to you as income on Form W-2 by your employer at the time the stock vests will then be your adjusted cost basis in these stock units. Incentive Stock Options (ISO) The requirements for ISO units are stricter and in turn provide more favorable tax treatment. ISO units must be held for at least one year after the options are exercised. In addition, you cannot sell the shares until at least two years after the options are awarded to you. For these reasons, any discount you receive by purchasing these options are taxed as a long-term capital gain. which yields a lower tax rate than ordinary income. Nonqualified Stock Options (NSO) While ISO units are more restrictive, NSO units are more general. These stock options will generate ordinary income and a capital gainloss. When these options are granted, they are granted at a predetermined price. This allows the employee to exercise these options at that price regardless of the stocks price on the date the option is exercised. When option is exercised, the employee has ordinary income for the difference between the price they pay (grant price) and the fair market value (FMV) on the date they purchased the stock (exercise price). If you have any compensation income from your employer in the current year, this income is included on Form W-2 in Box 1. If you sold any stock units to cover taxes, this information is included on Form W-2 as well. You should review Boxes 12 and 14, as this will explain any income included on your Form W-2 related to your employee stock options. Form 1099-B You will receive a Form 1099-B in the year you sell the stock units. The form reports any capital gain or loss resulting from the transaction on your tax return. You should review your investment records to verify the cost basis amount on Form 1099-B. The cost basis on your Form 1099-B is based on information available to your brokerage. If the information available is incomplete, your cost basis amount may be incorrect. If your cost basis amount on Form 1099-B does not match your adjusted cost basis based on your records, enter an adjustment code B in TaxACT. Similarly, your Form W-2 likely wont include your cost basis on Form 1099-B, so youll want to enter an adjustment amount with code B. If your Form 1099-B is missing a cost basis amount, you must still calculate and report your cost basis on your tax return. Form 3921 is issued for incentive stock options in the year they are transferred to the employee. This form includes the necessary information to properly report the sale of these units when you do decide to sell them in the future. Although you dont have to enter information from Form 3921 into your tax return in the year you receive the form, you should save the form with your investment records. Form 3922 is issued for employee stock options that you purchased but do not sell. Since you have not sold the stock, the holding period requirements have not been determined. Therefore, the employer does not include compensation income on your Form W-2 as ordinary income. Form 3922 is issued to you for your future use when you do sell the units and need to report the income on your tax return. Like Form 3921, save Form 3922s with your investment records. TaxAct makes preparing and filing your taxes quick, easy and affordable so you get your maximum refund. Its the best deal in tax. Start free now or sign into your TaxAct Account . Thanks for the information I have a question8230my tax accountant won8217t file my 2014 taxes without form 3921. My company8217s accountant has never filed or distributed one of these forms and doesn8217t seem to think they8217re necessary. I exercised my options in 2014 and sold in 2015. I have an extension on my taxes till October but8230should I keep insisting on receiving my 3921 Is it required they give it to me Thanks for your help Speak Your Mind Cancel replyHR Hell at Pfizer: Retirees Stock Options Are Cancelled in a Paperwork Error Last Updated Sep 2, 2010 1:20 PM EDT A federal appeals court has ruled that if Pfizer (PFE) wrongly tells employees their stock options are good for 10 years when they retire, and then cancels them when they realize theyve made a mistake, thats OK -- even if someone retires based on that advice. If you think that ruling is harsh, youre not alone. One judge dissented, noting Pfizers human resources department made multiple misrepresentations and omissions to repeated inquiries by one of the plans beneficiaries. Exactly when to retire can be one of the most significant financial decisions you can make. Companies like Pfizer, which consist of a complicated skein of acquired companies that each had their own legacy retirement plans, often end up with hodge-podge of retirement options for different employees depending on which company they started in and how long theyve been employed. That was the case for Dr. Diana Bell . who initially wanted to retire on July 19, 2002. She was an original employee of Pfizer who had earned five years of employment service prior to 1994. That left her eligible for Pfizers Pre-1994 benefit plan, but not its current Pfizer Retirement Annuity Plan. Before she retired, Bell wanted to know what would happen to her stock options, which she believed had a 10-year exercise period. She contacted HR to check. According to the ruling, HR referred her to Payal Sahni . a Pfizer HR specialist. Shani referred to her Kimberly Malik in Pfizers pension benefits administration department. And Sahni directed Bell to Jacqueline Gomez . a stock options analyst at Pfizer. Finally, Gomez advised Bell -- whose questions about her own retirement contained some mistaken information about which benefit she was entitled to -- that she would retain her options for the original 10-year period. Gomez told Bell in an email that shed keep the 10-year options: Yes, those are the general guidelines for retirement under the Pfizer Retirement Annuity Plan. Ironically, just as Bell was about to retire Pfizer acquired another company, Pharmacia . The ruling states: On July 15, 2002, four days before Bells scheduled final day at Pfizer, the company announced plans to acquire Pharmacia-Upjohn . The proposed merger had two effects on Bells retirement plans: first, Pfizers stock fell nearly 20 percent on news of the acquisition, which left many of Bells stock options underwater second, Bell viewed the acquisition and reorganization of certain departments as providing her new opportunities to advance in her career within Pfizer. Thus, Bell decided not to retire With Pfizer CEO Jeff Kindler s MampA strategy having ruined her retirement plans, Bell put off retirement until May 31, 2003. Then this happened: However, on or about August 15, 2003, Bell was informed by Pfizer that certain of her stock options had been cancelled and that others would be cancelled on September 1, 2003. Bell was forced to exercise the remainder of her stock options before the end of August 2003. She sued. The judges sided with Pfizer, arguing that because theyd given out mistaken information regarding a plan she was not entitled to, the only misinformation conveyed did not relate to appellants status under the ERISA plan. The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for pension and health plans to provide protection for workers in these plans. Judge Brian M. Cogan dissented: This is a case about a company making multiple misrepresentations and omissions to repeated inquiries by one of the plans beneficiaries, Dr. Diana Bell, regarding its ERISA regulated retirement plan. Because I conclude that Pfizer was acting in a fiduciary capacity when it made those misrepresentations and omissions, I dissent. The lesson here is to seek independent financial and legal advice before retiring, and not to reply on the one group of executives -- your own HR folk -- who actually ought to know what theyre doing. Pfizer retirees, beware copy 2010 CBS Interactive Inc. All Rights Reserved. Featured in Moneywatch 20 of the coolest places to retire in the world Find out what activities and attractions make these 20 cities and town some of the best places to retire around the world 10 products you should never buy generic Generics are a great way to save money in lots of cases, but here is a look at some clear exceptions
No comments:
Post a Comment