RESTRICTED STOCK UNIT AWARD AGREEMENT
Exhibit 10.2
| Name of Employee: | |||||||
| No. of Performance Units (Restricted Stock Units) Granted: |
Date of Grant: | ||||||
Vesting Schedule: |
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| Vesting Date* | No. of Restricted Stock Units Which Become Vested | ||||||
| [ ] | [ ] | ||||||
| *All Restricted Stock Units subject to this Agreement are subject to accelerated vesting as described in Section 3 below. | |||||||
THIS AGREEMENT is entered into and effective as of [ ] (the “Date of
Grant” ), by and between Xxxx-Xxxxx Company (the “Company” ) and you, [ ].
In accordance with a Letter Agreement between you and the Company dated [ ], you are to
receive an award of Performance Units (referred to in this Agreement as “Restricted Stock
Units”) on the terms and conditions contained in this Agreement and the Xxxx-Xxxxx Company 2000
Stock Incentive Plan, as amended (the “Plan” ). Each capitalized term used but not defined
in this Agreement shall have the meaning assigned to that term in the Plan.
The parties hereto agree as follows:
1. Grant of Restricted Stock Units. Subject to the terms and conditions of this
Agreement and the Plan, the Company hereby grants to you the number of Restricted Stock Units
specified at the beginning of this Agreement (the “Award”). The Restricted Stock Units
subject to this Award will be reflected in a book account (the “Account”) maintained by the
Company, and will be settled in shares of Common Stock.
2. Normal Vesting. Subject to Section 3, if you remain continuously employed by
the Company, then the Restricted Stock Units will vest as specified in the Vesting Schedule at the
beginning of this Agreement. Upon the vesting of any Restricted Stock Units, such Restricted Stock
Units will no longer be subject to forfeiture as provided in Section 5 and will be settled as
provided in Section 4.
3. Accelerated Vesting. Restricted Stock Units then outstanding will vest
immediately and in full upon (i) a Change in Control so long as (a) you have been continuously
employed by the Company through the date immediately prior to the occurrence of the Change in
Control and (b) the grant has been outstanding for at least six months ; or (ii) the termination of
your employment with the Company due to death or Disability. If your employment is terminated by
the Company without cause, a pro rata portion of the Restricted Stock Units then outstanding and
credited to your Account will immediately vest, such portion to be determined by multiplying the
number of Restricted Stock Units then outstanding and credited to your account by a fraction whose
numerator is the number of whole months between the Date of Grant and the termination date of your
employment, and whose denominator is 60.
4. Settlement of Vested Restricted Stock Units. Within ninety (90) days
following any vesting date, the Company shall distribute to you, in full settlement of all
Restricted Stock Units in your Account that vested on such vesting date, one share of Common Stock
for each Restricted Stock Unit; provided that, by
submitting a written election no later than the thirtieth day following the Date of Grant, you may
elect to defer the settlement of any Restricted Stock Units to a specified date following the
vesting date. For purposes of such settlement, the number of Restricted Stock Units will be
rounded to the nearest whole Restricted Stock Unit, with any fractional Restricted Stock Unit less
than 0.5 disregarded.
5. Forfeiture. If your employment with the Company ends for any reason other
than those specified in Section 3, all outstanding Restricted Stock Units then credited to your
Account that have not vested will be terminated and forfeited. If your employment is terminated by
the Company without cause, all Restricted Stock Units then credited to your account other than the
pro rata portion whose vesting is accelerated as provided in Section 3 will be terminated and
forfeited.
6. Dividends and Other Distributions.
6.1 Dividends Payable Other than in Common Stock. If the payment date for a
dividend declared by the Board and payable in cash or in property other than cash or Common Stock
occurs prior to the date your Restricted Stock Units are settled, you will be granted additional
Restricted Stock Units pursuant to this Section 6.1. As of such dividend payment date, you will
have credited to your Account that number of additional Restricted Stock Units determined according
to the following formula:
Dividend value per share x Number of Restricted Stock Units
|
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Fair Market Value |
For purposes of this formula:
| • | “Dividend value per share” means the amount of the cash dividend (or the per share value of any dividend payable in property other than cash) declared per share of Common Stock for the applicable payment date; | ||
| • | “Number of Restricted Stock Units” means the aggregate number of Restricted Stock Units credited to your Account as of the applicable dividend record date; and | ||
| • | “Fair Market Value” means the Fair Market Value of a share of Common Stock on the applicable dividend payment date. |
6.2 Dividends in Common Stock. If the payment date for a dividend declared
by the Company’s Board and payable in Common Stock occurs prior to the date your Restricted Stock
Units are settled, you will be granted additional Restricted Stock Units pursuant to this Section
6.2. As of such dividend payment date, you will have credited to your Account that number of
additional Restricted Stock Units determined by multiplying the aggregate number of Restricted
Stock Units credited to your Account as of the applicable dividend record date by the number of
shares of Common Stock payable as a dividend on each outstanding share of Common Stock in
connection with such dividend declaration.
6.3 Treatment of Additional Restricted Stock Units. Any additional
Restricted Stock Units granted under Sections 6.1 or 6.2 are subject to the terms and conditions of
this Agreement and the Plan, and specifically will vest and be settled, or forfeited, to the extent
and at the time that the underlying Restricted Stock Units to which such additional Restricted
Stock Units relate are subject to vesting, settlement or forfeiture hereunder.
6.4 Adjustments to Awards. If any reorganization, merger, consolidation,
recapitalization, liquidation, reclassification, stock split, combination of shares, rights
offering or divestiture (including a spin-off) or any other similar change in the corporate
structure or shares of the Company occurs, the Board, in order to prevent dilution or enlargement
of your rights, will make appropriate adjustment (which determination will be conclusive) in the
number of Restricted Stock Units credited to your Account and/or as to the number and kind of
securities or other property (including cash) subject to the Restricted Stock Units; provided,
however, that any such securities or other property distributable with respect to the
Restricted Stock Units shall be, unless otherwise determined by the Board, distributed to you
in the manner described in Section 4 and shall, together with the Restricted Stock Units, otherwise
be subject to the provisions of Sections 3 and 5 and the other terms and conditions of this
Agreement.
7. Beneficiary Designation.
You shall have the right, at any time, to designate any person or persons as beneficiary or
beneficiaries to receive your Restricted Stock Units upon your death. In the event of your death,
settlement of such Restricted Stock Units will be made to such beneficiary or beneficiaries. You
shall have the right to change your beneficiary designation at any time. Each beneficiary
designation shall become effective only when filed in writing with the Company during your life on
a form prescribed by or approved by the Company. If you fail to designate a beneficiary as
provided above, or if all designated beneficiaries die before you, then the beneficiary shall be
your estate.
8. Miscellaneous.
8.1 Employment with the Company. Any references in this Agreement to
employment with or by the Company shall be deemed to include employment with the Company or any
parent or subsidiary corporation thereof.
8.2 Code Section 409A. This grant is intended to comply with the provisions
of Section 409A of the Code and Department of Treasury regulations and other interpretive guidance
issued thereunder (“Section 409A”). Notwithstanding anything to the contrary in this Agreement, if
any distribution to you hereunder is subject to the requirements of Section 409A(a)(2)(B)(i) of the
Code, then such distribution will be suspended and not made until after the six-month anniversary
of the applicable termination date (or, if earlier, upon the date of your death). Any distribution
that was otherwise distributable during the six-month suspension period referred to in the
preceding sentence will be made as soon as administratively practicable following the six-month
anniversary of the applicable termination date. The parties agree that other appropriate
modifications shall be made to the Agreement as necessary for any deferred compensation provided
under the Agreement to satisfy the requirements of Sections 409A(a)(2), (3) and (4) of the Code
(including current and future guidance issued by the Department of Treasury and/or Internal Revenue
Service). To the extent that any provision of this Agreement fails to satisfy those requirements,
the provision shall be applied in operation in a manner that, in the good-faith opinion of the
Company, brings the provision into compliance with those requirements while preserving as closely
as possible the original intent of the provision and the value of the Agreement to you. The
Company (including any successor) shall propose subsequent amendments to this Agreement to you if
and as necessary to conform the terms of the Agreement to any such operational modifications.
8.3 Relationship to Plan and Other Agreements. The Restricted Stock Units
subject to this Agreement have been granted under, and are subject to the terms of, the Plan. The
provisions of this Agreement will be interpreted so as to be consistent with the terms of the Plan,
and any ambiguities in this Agreement will be interpreted by reference to the Plan. If any
provision of this Agreement is in conflict with the terms of the Plan, the terms of the Plan will
prevail. To the extent any provision of any other agreement between the Company and you limits,
qualifies or is inconsistent with any provision of this Agreement, then for purposes of this
Agreement, the provision of this Agreement will control and such provision of such other agreement
will be deemed to have been superseded, as if such other agreement had been amended to the extent
necessary to accomplish such purpose.
8.4 Binding Effect. This Agreement will be binding upon the heirs,
executors, administrators and successors of the parties hereto.
8.5 Governing Law. This Agreement and all rights and obligations hereunder
shall be construed in accordance with the Plan and governed by the laws of the State of Minnesota,
without regard to conflicts of laws provisions. Any legal proceeding related to this Award or
Agreement will be brought
in an appropriate Minnesota court, and the parties hereto consent to the exclusive
jurisdiction of the court for this purpose.
8.6 Amendment and Waiver. Other than as provided in the Plan, this
Agreement may be amended, waived, modified or canceled only by a written instrument executed by the
parties hereto or, in the case of a waiver, by the party waiving compliance.
The parties hereto have executed this Agreement effective the day and year first written above.
XXXX-XXXXX COMPANY |
EXECUTIVE: | |||||||
By:
|
By: | |||||||
| Xxxx X. Xxxxxxxxx | [ ] | |||||||
| President and Chief Executive Officer | ||||||||
