Exhibit 10.7
Amended effective
1/1/08
1998 ABBOTT LABORATORIES PERFORMANCE
INCENTIVE PLAN
SECTION 1.
ESTABLISHMENT AND
PURPOSES
1.1
ESTABLISHMENT OF THE PLAN.
Abbott Laboratories (“Abbott”) established the
“1998 Abbott Laboratories Performance Incentive Plan”
(the “Plan”), as set forth in this document.
The Plan became effective as of
January 1, 1998 (the “Effective Date”) with the
approval of Abbott’s shareholders at the 1998 Annual Meeting
of the Shareholders, and shall remain in effect as provided in
Section 6.1 hereof. The Plan was amended and restated
for documentary compliance with Section 409A of the Internal
Revenue Code of 1986, as amended, (the “Code”) as of
January 1, 2008. Notwithstanding anything in the Plan to
the contrary, any amounts under the Plan that were earned and
vested before January 1, 2005 (as determined in accordance
with Code Section 409A) with respect to participants who
retired before January 1, 2005 (“Grandfathered
Amounts”) shall be subject to the terms and conditions of the
Plan as administered and as in effect on December 31,
2004. Amendments made to the Plan pursuant to this amendment
and restatement or otherwise shall not affect the Grandfathered
Amounts unless expressly provided for in the amendment. The
terms and conditions applicable to the Grandfathered Amounts are
set forth in Exhibit A attached hereto.
1.2
PURPOSES OF THE PLAN. The
purposes of the Plan are to:
(a)
Prove flexibility to Abbott in its
ability to attract, motivate, and retain the services of
participants in the Plan (“Participants”) who make
significant contributions to Abbott’s success and to allow
Participants to share in the success of Abbott.
(b)
Optimize the profitability and
growth of Abbott through incentives which are consistent with
Abbott’s goals and which link the performance objectives of
Participants to those of Abbott’s shareholders;
and
(c)
Provide Participants with an
incentive for excellence in individual performance.
SECTION 2.
ADMINISTRATION
2.1
GENERAL. The Plan shall be
administered by the Compensation Committee (the
“Committee”) appointed by the Board of Directors of
Abbott (the “Board”).
2.2
AUTHORITY OF THE COMMITTEE.
The Committee will have full authority to administer the Plan,
including the authority to interpret and construe any provision of
the Plan, and all rules, regulations and interpretations shall be
conclusive and binding on all persons. The Committee has sole
responsibility for selecting Participants, establishing performance
objectives, setting award targets, and determining award
amounts.
2.3
DELEGATION BY THE
COMMITTEE.&nb
