Change of Control Provisions. In the event of a “Change of Control” (as defined in the Plan) that occurs prior to Executive’s termination of employment with the Employer, all options and time-vesting restricted shares previously granted to Executive, whether during the Agreement Term or otherwise, will have vesting accelerated so as to become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on the actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions of the Plan and any related option agreement. If Executive is involuntarily terminated without Cause within sixty (60) days prior to a Change of Control, all unvested options and time-vesting restricted shares which would have been outstanding had Executive been employed on the date of Change of Control become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Employer shall cause the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholders.
Appears in 5 contracts
Samples: Employment Agreement (Cme Group Inc.), Employment Agreement (Cme Group Inc.), Employment Agreement (Cme Group Inc.)
Change of Control Provisions. In the event of a “Change of Control” (as defined in the Plan) that occurs prior to Executive’s termination of employment with the Employer, all options and time-vesting restricted shares previously granted to Executive, whether during the Agreement Term or otherwise, will have vesting accelerated so as to become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on the actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions of the Plan and any related option agreement. If Executive is involuntarily terminated without Cause within sixty (60) days prior to a Change of Control, all unvested options and time-vesting restricted shares which would have been outstanding had Executive been employed on the date of Change of Control become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Employer shall cause the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholders.
Appears in 4 contracts
Samples: Employment Agreement (Cme Group Inc.), Employment Agreement (Cme Group Inc.), Employment Agreement (Cme Group Inc.)
Change of Control Provisions. In the event of a “"Change of Control” " (as defined in the Plan) that occurs prior to Executive’s 's termination of employment with the Employer, all options and time-vesting restricted shares previously granted to Executive, whether during the Agreement Term or otherwise, will have vesting accelerated so as to become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on the actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply)term. Thereafter, the options will continue to be subject to the terms, definitions and provisions of the Plan and any related option agreement. If Executive is involuntarily terminated without Cause within sixty (60) days prior to a Change of Control, all unvested options and time-vesting restricted shares which would have been outstanding had Executive been employed on the date of Change of Control become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply)term. Employer shall cause the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s 's immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholders.
Appears in 2 contracts
Samples: Executive Employment Agreement (Cme Group Inc.), Employment Agreement (Cme Group Inc.)
Change of Control Provisions. In the event of a “Change of Control” (as defined in the Plan) that occurs prior to Executive’s termination of employment with the Employer, all options and time-vesting restricted shares previously granted to Executive, whether during the Agreement Term or otherwise, will have vesting accelerated so as to become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on the actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply)term. Thereafter, the options will continue to be subject to the terms, definitions and provisions of the Plan and any related option agreement. If Executive is involuntarily terminated without Cause within sixty (60) days prior to a Change of Control, all unvested options and time-vesting restricted shares which would have been outstanding had Executive been employed on the date of Change of Control become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply)term. Employer shall cause the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholders.
Appears in 2 contracts
Samples: Employment Agreement (Cme Group Inc.), Employment Agreement (Cme Group Inc.)
Change of Control Provisions. In Pursuant to, and in lieu of the event provisions in, Section 9 of a “Change of Control” the 2013 EIP and subject to paragraphs (as defined in the Planb) that occurs prior to Executive’s termination of employment with the Employerand (c) below, all options and time-vesting restricted shares previously granted to Executive, whether during the Agreement Term or otherwise, will have vesting accelerated so as to become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent immediately upon the attainment occurrence of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on the actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions of the Plan and any related option agreement. If Executive is involuntarily terminated without Cause within sixty (60) days prior to a Change of Control, all unvested options both the PRSUs subject to this Award that have not already become payable pursuant to Section 3(b) or Section 3(c) as a result of the applicable Determination Date (“Outstanding Unvested PRSUs”) and any Deferred CofC PRSUs shall convert to time-based vesting restricted stock units (“RSUs”, with the shares which would of the Company’s common stock issuable thereunder referred to as “RSU Shares”), as follows: The Grantee shall be entitled to receive RSUs equal to the number of Outstanding Unvested PRSUs and any Deferred CofC PRSUs in lieu of any claim to a Final Award. Any RSUs shall be subject to the terms of Section 8.4(c) of the 2013 EIP in the event of any Change of Control that is also a Transaction subject to Section 8.4(c) of the 2013 EIP. If the Change of Control occurs on or after December 31, 2019 but before the First Determination Date, (i) if the Minimum Performance Metrics for the First Designated Period are determined to have been outstanding had Executive met in accordance with Section 3 and Appendix A, all or part of the Outstanding Unvested PRSUs shall become payable in accordance with Section 3(b) and any Outstanding Unvested PRSUs that did not become payable shall convert into RSUs as described above, and (ii) if it is determined that the Minimum Performance Metrics for the First Designated Period were not met, then all of such Outstanding Unvested PRSUs shall convert into RSUs and such RSUs will be issued. If the Change of Control occurs after December 31, 2020 but before the Second Determination Date, (i) if the Minimum Performance Metrics for the Second Designated Period are determined to have been employed met in accordance with Section 3 and Appendix A, all or part of the Outstanding Unvested PRSUs shall become payable in accordance with Section 3(c) and no Outstanding Unvested PRSUs shall convert into RSUs as described above, and (ii) if it is determined that the Minimum Performance Metrics for the Second Designated Period were not met, then all of such Outstanding Unvested PRSUs shall terminate and be forfeited as provided in Section 3(c) and no RSUs will be issued. None of the RSUs issued to Grantee in connection with a Change of Control pursuant to this Section 5 shall be immediately vested as of the date of such Change of Control (unless the Change of Control occurs on December 31, 2020 or as otherwise provided below). All of such RSUs shall vest on December 31, 2020 (for purposes of this Section 5, the “Vesting Date”), regardless of whether the Company has then achieved any of the Performance Metrics if the Grantee’s employment with the Company and its Affiliates continues through the period commencing on the date of the Change of Control become 100% vested; providedand ending on the Vesting Date (the “Vesting Period”). If the Grantee’s employment with the Company and its Affiliates terminates during the Vesting Period, however that any awards granted following the Original Effective Date right to the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or RSUs shall be forfeited solely based on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Employer shall cause the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholders.as follows:
Appears in 2 contracts
Samples: Employment Agreement (Tempur Sealy International, Inc.), 2017 Performance Restricted Stock Unit Award Agreement (Tempur Sealy International, Inc.)
Change of Control Provisions. In Pursuant to Section 9 of the event 2013 EIP and subject to paragraph (b) below, immediately upon the occurrence of a “Change of Control” , all of the PRSUs subject to this Award that have not already become payable pursuant to Section 3(b) or Section 3(c) and that not have already been forfeited (“Outstanding Unvested PRSUs”) shall convert to time-based vesting restricted stock units (“RSUs”, with the shares of the Company’s common stock issuable thereunder referred to as defined “RSU Shares”), without any pro-ration, as follows:
(a) the Grantee shall be entitled to receive RSUs equal to the number of Outstanding Unvested PRSUs in lieu of any claim to a Final Award.
(b) if the PlanChange of Control occurs on or after December 31, 2017 but before the determination of whether the Performance Metrics for the First Designated Period have been met, (i) if the Performance Metrics for the First Designated Period are determined to have been met in accordance with Section 3 and Appendix A, the Outstanding Unvested PRSUs shall become payable in accordance with Section 3(b) and no Outstanding Unvested PRSUs shall convert into RSUs as described above, and (ii) if it is determined that the Performance Metrics for the First Designated Period were not met, then 2/3 (or 413,333) of such Outstanding Unvested PRSUs shall terminate and be forfeited as provided in Section 3(c) and 1/3 (or 206,667) RSUs will be issued.
(c) if the Change of Control occurs prior on or after December 31, 2018 but before the determination of whether the Performance Metrics for the Second Designated Period have been met, (i) if the Performance Metrics for the Second Designated Period are determined to Executivehave been met in accordance with Section 3 and Appendix A, the Outstanding Unvested PRSUs shall become payable in accordance with Section 3(c) and no Outstanding Unvested PRSUs shall convert into RSUs as described above, and (ii) if it is determined that the Performance Metrics for the Second Designated Period were not met, then all of such Outstanding Unvested PRSUs shall terminate and be forfeited as provided in Section 3(c) and no RSUs will be issued.
(d) None of the RSUs issued to Grantee in connection with a Change of Control pursuant to this Section 5 shall be immediately vested as of the date of such Change of Control (unless otherwise provided below). All of such RSUs shall vest on December 31, 2018 (for purposes of this Section 5, the “Vesting Date”), regardless of whether the Company has then achieved any of the Performance Metrics if the Grantee’s termination of employment with the Employer, all options Company and time-vesting restricted shares previously granted to Executive, whether its Affiliates continues through the period commencing on the date of the Change of Control and ending on the Vesting Date (the “Vesting Period”).
(e) If the Grantee’s employment with the Company and its Affiliates terminates during the Agreement Term Vesting Period, the right to the RSUs shall be as follows:
(i) If the Grantee’s employment with the Company or otherwiseits Affiliates is terminated by the Company For Cause or the Grantee resigns without Good Reason, including by Retirement that is not an Approved Retirement or the Grantee’s voluntary departure, the RSUs will have vesting accelerated so as terminate immediately, no RSU Shares shall be issued to become 100% vested; providedGrantee and all of the Grantee’s rights to the RSUs and the RSU Shares hereunder shall be forfeited.
(ii) If the Grantee’s employment with the Company or its Affiliates is terminated by the Company or an Affiliate other than For Cause, however that by the Grantee’s resignation for Good Reason or by reason of Grantee’s employer ceasing to be an Affiliate following a Change of Control at any awards granted time following the Original Effective Date Change of Control, then all of the vesting of which is contingent upon RSUs shall vest immediately, and the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or Grantee shall be forfeited solely based entitled to receive all of the RSU Shares he would have been entitled to receive on the actual performance measured over Vesting Date with respect thereto.
(iii) If the full performance term (unless a more favorable treatment is provided in Grantee dies or the agreement evidencing the particular award Company or applies to the award pursuant to the operation an Affiliate of the applicable plan under which Company terminates Grantee’s employment due to Grantee’s long-term disability (within the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions meaning of Section 409A of the Plan Code), then all of the RSUs shall vest and any related option agreementthe Grantee shall be entitled to receive all of the RSU Shares with respect thereto. If Executive is involuntarily terminated without Cause These Shares will be issued within sixty (60) days after the date of death or termination of employment.
(iv) In the event of Xxxxxxx’s Approved Retirement, then the number of RSUs that will vest and Shares issued in connection therewith shall be pro-rated downward based on the actual number of calendar days that elapsed from the date the Award was initially granted under this Agreement to the date of such Approved Retirement, versus the total number of calendar days from September 4, 2015 to December 31, 2018; provided, however, that no RSU Shares shall be issued and all of the Grantee’s rights to the RSUs and any Shares otherwise due shall be forfeited, expire and terminate unless (i) the Company shall have received a Release and Waiver (and said Release and Waiver shall have become irrevocable in accordance with its terms) prior to the 50th day following Xxxxxxx’s termination of employment and (ii) the Grantee shall have complied with the covenants set forth in Section 12 of this Agreement.
(v) In the event that, immediately following a Change of Control, a successor organization does not convert, replace or assume the RSUs, all unvested options of the RSUs shall immediately vest and time-the Grantee shall be entitled to receive all of the RSU Shares represented thereby.
(f) In all cases, any issuance of RSU Shares upon vesting restricted shares which would have been outstanding had Executive been employed on of the RSUs in accordance with this Section 5 shall be made promptly and, in any event, within twenty (20) days following the date such RSUs shall become vested. For this purpose, RSUs vesting on account of (w) a termination by the Company other than For Cause, (x) resignation by the Grantee for Good Reason, (y) Grantee’s employer ceasing to be an Affiliate following a Change of Control become 100% vested; provided, however that at any awards granted time following the Original Effective Date the vesting Change of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested Control, or (z) an Approved Retirement, shall be forfeited solely based treated as vesting on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation Company’s receipt of the applicable plan under which required Release and Waiver but delivery of the RSU Shares at that time shall not obviate the need to comply with the covenants contained in Section 12 until the Covenant Termination Date (as defined in Section 12) in order to retain the RSU Shares then delivered.
(g) The Company (or any successor organization) may require the Grantee to enter into a restricted stock unit award was granted, in which case such more favorable treatment will apply). Employer shall cause agreement that replaces this Agreement and reflects the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholdersterms described above.
Appears in 1 contract
Samples: Performance Restricted Stock Unit Award Agreement (Tempur Sealy International, Inc.)
Change of Control Provisions. In Pursuant to Section 9 of the event 2013 EIP and subject to paragraph (b) below, immediately upon the occurrence of a “Change of Control” , all of the PRSUs subject to this Award that have not already become payable pursuant to Section 3(b) or Section 3(c) and that not have already been forfeited (“Outstanding Unvested PRSUs”) shall convert to time-based vesting restricted stock units (“RSUs”, with the shares of the Company’s common stock issuable thereunder referred to as defined “RSU Shares”), without any pro‑ration, as follows:
(a) the Grantee shall be entitled to receive RSUs equal to the number of Outstanding Unvested PRSUs in lieu of any claim to a Final Award.
(b) if the PlanChange of Control occurs on or after December 31, 2017 but before the determination of whether the Performance Metrics for the First Designated Period have been met, (i) if the Performance Metrics for the First Designated Period are determined to have been met in accordance with Section 3 and Appendix A, the Outstanding Unvested PRSUs shall become payable in accordance with Section 3(b) and no Outstanding Unvested PRSUs shall convert into RSUs as described above, and (ii) if it is determined that the Performance Metrics for the First Designated Period were not met, then 2/3 (or _____________) of such Outstanding Unvested PRSUs shall terminate and be forfeited as provided in Section 3(c) and 1/3 (or _______________) RSUs will be issued.
(c) if the Change of Control occurs prior on or after December 31, 2018 but before the determination of whether the Performance Metrics for the Second Designated Period have been met, (i) if the Performance Metrics for the Second Designated Period are determined to Executivehave been met in accordance with Section 3 and Appendix A, the Outstanding Unvested PRSUs shall become payable in accordance with Section 3(c) and no Outstanding Unvested PRSUs shall convert into RSUs as described above, and (ii) if it is determined that the Performance Metrics for the Second Designated Period were not met, then all of such Outstanding Unvested PRSUs shall terminate and be forfeited as provided in Section 3(c) and no RSUs will be issued.
(d) None of the RSUs issued to Grantee in connection with a Change of Control pursuant to this Section 5 shall be immediately vested as of the date of such Change of Control (unless otherwise provided below). All of such RSUs shall vest on December 31, 2018 (for purposes of this Section 5, the “Vesting Date”), regardless of whether the Company has then achieved any of the Performance Metrics if the Grantee’s termination of employment with the Employer, all options Company and time-vesting restricted shares previously granted to Executive, whether its Affiliates continues through the period commencing on the date of the Change of Control and ending on the Vesting Date (the “Vesting Period”).
(e) If the Grantee’s employment with the Company and its Affiliates terminates during the Agreement Term Vesting Period, the right to the RSUs shall be as follows:
(i) If the Grantee’s employment with the Company or otherwiseits Affiliates is terminated by the Company For Cause or the Grantee resigns without Good Reason, including by Retirement that is not an Approved Retirement or the Grantee’s voluntary departure, the RSUs will have vesting accelerated so as terminate immediately, no RSU Shares shall be issued to become 100% vested; providedGrantee and all of the Grantee’s rights to the RSUs and the RSU Shares hereunder shall be forfeited.
(ii) If the Grantee’s employment with the Company or its Affiliates is terminated by the Company or an Affiliate other than For Cause, however that by the Grantee’s resignation for Good Reason or by reason of Xxxxxxx’s employer
(1) Include if Grantee has an employment agreement with the Company.
(2) If the Grantee has an employment agreement with the Company, then the defined term will be incorporated from the employment agreement.
(3) If the Grantee has an employment agreement with the Company, then the defined term will be incorporated from the employment agreement. ceasing to be an Affiliate following a Change of Control at any awards granted time following the Original Effective Date Change of Control, then all of the vesting of which is contingent upon RSUs shall vest immediately, and the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or Grantee shall be forfeited solely based entitled to receive all of the RSU Shares he would have been entitled to receive on the actual performance measured over Vesting Date with respect thereto.
(iii) If the full performance term (unless a more favorable treatment is provided in Grantee dies or the agreement evidencing the particular award Company or applies to the award pursuant to the operation an Affiliate of the applicable plan under which Company terminates Grantee’s employment due to Grantee’s long-term disability (within the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions meaning of Section 409A of the Plan Code), then all of the RSUs shall vest and any related option agreementthe Grantee shall be entitled to receive all of the RSU Shares with respect thereto. If Executive is involuntarily terminated without Cause These Shares will be issued within sixty (60) days after the date of death or termination of employment.
(iv) In the event of Xxxxxxx’s Approved Retirement, then the number of RSUs that will vest and Shares issued in connection therewith shall be pro-rated downward based on the actual number of calendar days that elapsed from the date the Award was initially granted under this Agreement to the date of such Approved Retirement, versus the total number of calendar days from October ___, 2015 to December 31, 2018; provided, however, that no RSU Shares shall be issued and all of the Grantee’s rights to the RSUs and any Shares otherwise due shall be forfeited, expire and terminate unless (i) the Company shall have received a Release and Waiver (and said Release and Waiver shall have become irrevocable in accordance with its terms) prior to the 50th day following Grantee’s termination of employment and (ii) the Grantee shall have complied with the covenants set forth in Section 12 of this Agreement.
(v) In the event that, immediately following a Change of Control, a successor organization does not convert, replace or assume the RSUs, all unvested options of the RSUs shall immediately vest and time-the Grantee shall be entitled to receive all of the RSU Shares represented thereby.
(f) In all cases, any issuance of RSU Shares upon vesting restricted shares which would have been outstanding had Executive been employed on of the RSUs in accordance with this Section 5 shall be made promptly and, in any event, within twenty (20) days following the date such RSUs shall become vested. For this purpose, RSUs vesting on account of (w) a termination by the Company other than For Cause, (x) resignation by the Grantee for Good Reason, (y) Grantee’s employer ceasing to be an Affiliate following a Change of Control become 100% vested; provided, however that at any awards granted time following the Original Effective Date the vesting Change of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested Control, or (z) an Approved Retirement, shall be forfeited solely based treated as vesting on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation Company’s receipt of the applicable plan under which required Release and Waiver but delivery of the RSU Shares at that time shall not obviate the need to comply with the covenants contained in Section 12 until the Covenant Termination Date (as defined in Section 12) in order to retain the RSU Shares then delivered.
(g) The Company (or any successor organization) may require the Grantee to enter into a restricted stock unit award was granted, in which case such more favorable treatment will apply). Employer shall cause agreement that replaces this Agreement and reflects the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholdersterms described above.
Appears in 1 contract
Samples: Performance Restricted Stock Unit Award Agreement (Tempur Sealy International, Inc.)
Change of Control Provisions. In Pursuant to Section 9 of the event 2013 EIP, immediately upon the occurrence of a “Change of Control” , all of the PRSUs subject to this Award shall convert to time-based vesting restricted stock units (“RSUs”, with the shares of the Company’s common stock issuable thereunder referred to as defined “RSU Shares”), without any pro-ration, as follows:
(a) If the Change of Control occurs at any time during the Designated Period, the Grantee shall be entitled to receive RSUs equal to the number of Target Shares in lieu of any claim to a Final Award.
(b) None of the Plan) that occurs prior RSUs issued to ExecutiveGrantee in connection with a Change of Control pursuant to this Section 5 shall be immediately vested as of the date of such Change of Control (unless otherwise provided below). All of such RSUs shall vest on the last day of the Designated Period (for purposes of this Section 5, the “Vesting Date”), regardless of whether the Company has then achieved any of the Performance Metrics if the Grantee’s termination of employment with the Employer, all options Company and time-vesting restricted shares previously granted to Executive, whether its Affiliates continues through the period commencing on the date of the Change of Control and ending on the Vesting Date (the “Vesting Period”).
(c) If the Grantee’s employment with the Company and its Affiliates terminates during the Agreement Term Vesting Period, the right to the RSUs shall be as follows:
(i) If the Grantee’s employment with the Company or otherwiseits Affiliates is terminated by the Company For Cause or the Grantee resigns without Good Reason, including by Retirement that is not an Approved Retirement or the Grantee’s voluntary departure, the RSUs will have vesting accelerated so as terminate immediately, no RSU Shares shall be issued to become 100% vested; providedGrantee and all of the Grantee’s rights to the RSUs and the RSU Shares hereunder shall be forfeited.
(ii) If the Grantee’s employment with the Company or its Affiliates is terminated by the Company or an Affiliate other than For Cause, however that by the Grantee’s resignation for Good Reason or by reason of Grantee’s employer ceasing to be an Affiliate following a Change of Control at any awards granted time following the Original Effective Date Change of Control, then all of the vesting of which is contingent upon RSUs shall vest immediately, and the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or Grantee shall be forfeited solely based entitled to receive all of the RSU Shares he would have been entitled to receive on the actual performance measured over Vesting Date with respect thereto.
(iii) If the full performance term (unless a more favorable treatment is provided in Grantee dies or the agreement evidencing the particular award Company or applies to the award pursuant to the operation an Affiliate of the applicable plan under which Company terminates Grantee’s employment due to Grantee’s long-term disability (within the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions meaning of Section 409A of the Plan Code), then all of the RSUs shall vest and any related option agreementthe Grantee shall be entitled to receive all of the RSU Shares with respect thereto. If Executive is involuntarily terminated without Cause These Shares will be issued within sixty (60) days after the date of death or termination of employment.
(iv) In the event of Grantee’s Approved Retirement, then the number of RSUs that will vest and Shares issued in connection therewith shall be pro-rated downward based on the actual number of calendar days that elapsed from the date the Award was initially granted under this Agreement to the date of such Approved Retirement, versus the total number of calendar days in the Designated Period; provided, however, that no RSU Shares shall be issued and all of the Grantee’s rights to the RSUs and any Shares otherwise due shall be forfeited, expire and terminate unless (i) the Company shall have received a release of all claims from Grantee in a form reasonably acceptable to the Company (and said release shall have become irrevocable in accordance with its terms) prior to the 50th day following Grantee’s termination of employment and (ii) the Grantee shall have complied with the covenants set forth in Section 12 of this Agreement.
(v) In the event that, immediately following a Change of Control, a successor organization does not convert, replace or assume the RSUs, all unvested options of the RSUs shall immediately vest and time-the Grantee shall be entitled to receive all of the RSU Shares represented thereby.
(d) In all cases, any issuance of RSU Shares upon vesting restricted shares which would have been outstanding had Executive been employed on of the RSUs in accordance with this Section 5 shall be made promptly and, in any event, within twenty (20) days following the date such RSUs shall become vested. For this purpose, RSUs vesting on account of (w) a termination by the Company other than For Cause, (x) resignation by the Grantee for Good Reason, (y) Grantee’s employer ceasing to be an Affiliate following a Change of Control become 100% vested; provided, however that at any awards granted time following the Original Effective Date the vesting Change of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested Control, or (z) an Approved Retirement, shall be forfeited solely based treated as vesting on actual performance measured over the full performance term (unless a more favorable treatment is provided in the agreement evidencing the particular award or applies to the award pursuant to the operation Company’s receipt of the applicable plan under which required release of claims but delivery of the RSU Shares at that time shall not obviate the need to comply with the covenants contained in Section 12 until the Covenant Termination Date (as defined in Section 12) in order to retain the RSU Shares then delivered.
(e) The Company (or any successor organization) may require the Grantee to enter into a restricted stock unit award was granted, in which case such more favorable treatment will apply). Employer shall cause agreement that replaces this Agreement and reflects the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholdersterms described above.
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Samples: Performance Restricted Stock Unit Award Agreement (Tempur Sealy International, Inc.)
Change of Control Provisions. In the event of a “Change of Control” (as defined in the Plan) that occurs prior to Executive’s termination of employment with the Employer, all options and time-vesting restricted shares previously granted to Executive, whether during the Agreement Term or otherwise, will have vesting accelerated so as to become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on the actual performance measured over the full performance term (unless a more favorable treatment is provided herein or in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Thereafter, the options will continue to be subject to the terms, definitions and provisions of the Plan and any related option agreement. If Executive is involuntarily terminated without Cause within sixty (60) days prior to a Change of Control, all unvested options and time-vesting restricted shares which would have been outstanding had Executive been employed on the date of Change of Control become 100% vested; provided, however that any awards granted following the Original Effective Date the vesting of which is contingent upon the attainment of performance goals shall have the continued employment requirement applicable to such award waived and shall become vested or shall be forfeited solely based on actual performance measured over the full performance term (unless a more favorable treatment is provided herein or in the agreement evidencing the particular award or applies to the award pursuant to the operation of the applicable plan under which the award was granted, in which case such more favorable treatment will apply). Employer shall cause the Plan and all future grants thereunder to permit Executive to transfer awards granted thereunder for estate and tax planning purposes to members of Executive’s immediate family or to one or more trusts for the benefit of such family members, partnerships in which such family members are the only partners, or corporations in which such family members are the only stockholders.
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