Oxford Industries, Inc. RESTRICTED SHARE Unit AWARD agreement
Exhibit 10.5
Oxford Industries, Inc.
RESTRICTED SHARE Unit AWARD agreement
This Restricted Share Unit Award Agreement (this “Agreement”) is entered into as of ______ ____, ____ (the “Effective Date”), by and between <<Name>> (“Participant”) and Oxford Industries, Inc., a Georgia corporation (the “Company”), pursuant to the Oxford Industries, Inc. Amended and Restated Long-Term Stock Incentive Plan (the “LTIP”). All capitalized terms have the meanings set forth in the LTIP unless otherwise specifically provided herein.
WHEREAS, Participant is presently employed by the Company or a Subsidiary; and
WHEREAS, the Nominating, Compensation & Governance Committee (the “Committee”) of the Board of Directors of the Company has determined that it is appropriate and in the best interests of the Company and its shareholders to incent certain selected employees of the Company and/or its Subsidiaries, including Participant, to remain as employees of the Company and/or its Subsidiaries and to further align the interests of the shareholders of the Company and its key employees, such as Participant, by providing these employees with a proprietary interest in the long-term growth and financial success of Oxford; and
WHEREAS, the Committee has granted to Participant Restricted Share Units pursuant to Article 8 of the LTIP and subject to the terms and conditions of this Agreement; and
WHEREAS, subject to the terms and conditions of the LTIP, this Agreement sets forth the terms and conditions of such grant of Restricted Share Units from the Company to Participant.
NOW THEREFORE, in consideration of the foregoing, and of the mutual covenants and agreements of the parties set forth in this Agreement, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
1. | Award of Restricted Share Units |
Pursuant to the LTIP, effective on ______ ____, ____ (the “Grant Date”), the Company has granted to Participant <<NUMBER>> Restricted Share Units (i.e., units representing shares of the Company’s common stock, par value $1.00 per share) (the “Award”), which shall vest and become unrestricted in accordance with Section 2 hereto.
2. | Vesting |
(b) | Vesting Upon Retirement. In the event of Participant’s Retirement prior to ______ ____, ____, a portion of the Restricted Share Units shall immediately vest and become nonforfeitable, with such portion being equal to the total number of Performance Share |
Units granted hereunder, multiplied by a fraction, the numerator of which is the number of complete and partial calendar months which have elapsed from the date of this Agreement to the date of Participant’s Retirement, and the denominator of which is thirty-nine (39). Such Restricted Share Units shall be paid, in the manner provided in Section 2(g), on or as promptly as practicable after ______ ____, ____; provided, however, if Participant’s Retirement occurs within the two-year period following a Change of Control, such Shares shall be paid on or as promptly as practicable after the earlier of (i) ______ ____, ____, or (ii) the date that is six (6) months following the date of Participant’s Separation from Service, or the date of Participant’s death following his or her Separation from Service, if earlier. |
(c) | Vesting Upon Death or Disability. In the event of Participant’s death while employed by the Company or a Subsidiary or Participant’s Separation from Service due to Disability, in either case prior to ______ ____, ____, all of the Restricted Share Units shall immediately vest and become nonforfeitable. In the event the Restricted Share Units vest as a result of Participant’s death, such Restricted Share Units shall be paid, in the manner provided in Section 2(g), as promptly as practicable after Participant’s death. In the event the Restricted Share Units vest as a result of Participant’s Separation from Service due to Disability, the Restricted Share Units shall be paid, in the manner provided in Section 2(g), on or as promptly as practicable after the earlier of (i) ______ ____, ____, or (ii) the date that is six (6) months following the date of Participant’s Separation from Service, or the date of Participant’s death following his or her Separation from Service, if earlier. |
(d) | Vesting Upon Change of Control Termination. If Participant incurs a Change of Control Termination prior to ______ ____, ____, all of the Restricted Share Units shall immediately vest and become nonforfeitable as of the date of Participant’s Change of Control Termination. Such Restricted Share Units shall be paid, in the manner provided in Section 2(g), on or as promptly as practicable after the earlier of (i) ______ ____, ____, or (ii) the date that is six (6) months following the date of Participant’s Separation from Service, or the date of Participant’s death following his or her Separation from Service, if earlier. |
(e) | Definitions. The following definitions apply for purposes of this Agreement: |
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(f) | Forfeiture. Except as specifically provided pursuant to Section 2(a), (b) (c) and (d) above or the Committee determines otherwise in its sole discretion, Participant will completely forfeit his or her right in respect of any Restricted Share Units, Shares, dividend equivalents and other rights under this Agreement (and shall receive no consideration from the Company on account of such forfeiture or any damages or compensation for the loss or forfeiture of any Restricted Share Units, Shares, dividend equivalents and other rights under this Agreement) if his or her employment with the Company and all Subsidiaries terminates for any reason whatsoever (whether lawfully or in breach) before ______ ____, ____. |
(g) | Form of Payment. Except as provided under Section 2(i), the Restricted Share Units actually earned by Participant under this Agreement will be payable solely in Shares. The Company will deliver to Participant (or to Participant’s estate, in the event of death) Shares in settlement of the Restricted Share Units that vest and become nonforfeitable pursuant to this Agreement (with one Share being issued in respect of each Restricted Share Unit) at the time specified in Section 2(a), (b), (c) or (d), as applicable. |
(h) | Fractional Shares. The Company shall not issue any fractional Shares pursuant to this Agreement. Any determination of fractional Shares represented by Restricted Share Units vesting under the Award shall be rounded up to the next whole Share. |
(i) | Absence of Exchange. If for any reason, including a Change of Control, the Shares cease to exist or are no longer traded on the New York Stock Exchange, the NASDAQ Stock Market or any other nationally recognized stock exchange, in lieu of the Company delivering Shares in settlement of Restricted Share Units pursuant to this Agreement in accordance with Section 2(g), the Company may, provided Participant’s interest in the |
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Restricted Share Units have not been forfeited in accordance with this Agreement, pay to Participant (or his or her estate, in the event of death) an amount in cash equal to the number of Shares (based on the Fair Market Value of the Shares on the last trading day prior to such date the Shares ceased to exist or were no longer traded on an applicable stock exchange) Participant would otherwise have received absent such event, subject to satisfaction of any required tax withholding obligations. Such cash payment shall be made at the same time as provided in Section 2(g). |
3. | No Shareholder Rights; Dividend Equivalents |
4. | Adjustments |
Restricted Share Units granted and evidenced under this Agreement will be subject to adjustment or substitution in accordance with Section 11 of the LTIP.
5. | Code Section 409A Compliance |
To the extent applicable, it is intended that all Restricted Share Units granted and evidenced under this Agreement will be exempt from, or alternatively in compliance with, the provisions of Section 409A. All Restricted Share Units granted and evidenced under this Agreement will be interpreted and administered in a manner consistent with this intent, and any provision that would cause an award or this Agreement or any rights of Participant hereunder to fail to satisfy Section 409A will have no force and effect until amended to comply with Section 409A (which amendment may be retroactive to the extent permitted by Section 409A and may be made by the Company without Participant’s consent). Without limitation of the foregoing, if any provision of this Agreement would cause compensation to be includible in Participant’s income pursuant to Section 409A, then the Company may amend this Agreement in such a way as to cause substantially similar economic results without causing such inclusion; any such amendment shall be made by providing notice of such amendment to Participant, and shall be binding on Participant.
6. | Non-Transferability |
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Participant’s interest in this Agreement and any Restricted Share Units are not transferable. Without limitation of the foregoing, no Restricted Share Units or other rights pursuant to this Agreement may be anticipated, alienated, encumbered, sold, pledged, assigned, transferred or subjected to any charge or legal process, and any sale, pledge, assignment or other attempted transfer shall be null and void.
7. | Objectives; Administration |
8. | Electronic Delivery and Signature |
Participant consents and agrees to electronic delivery of any LTIP documents, proxy materials, annual reports and other related documents. If the Company establishes procedures for an electronic signature system for delivery and acceptance of any LTIP documents (including documents relating to any award or grant made under this Agreement) which comply with applicable laws, Participant consents to such procedures and agrees that Participant’s electronic signature is the same as, and shall have the same force and effect as, Participant’s manual signature. Participant consents and agrees that any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services related to the LTIP or this Agreement, including any Restricted Share Units granted and evidenced under this Agreement.
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9. | Tax Withholding |
The Company and any Subsidiary which acts as Participant’s employer shall have the right to (a) make deductions from the number of Shares otherwise deliverable to Participant pursuant to this Agreement (and any other amounts payable under this Agreement) in an amount sufficient to satisfy withholding of any federal, state, local or foreign taxes required by law, (b) make deductions from compensation otherwise payable to Participant, pursuant to this Agreement or otherwise, in an amount sufficient to satisfy withholding of any federal, state, local or foreign taxes required by law, including in respect of any dividends earned and payable to Participant in respect of Restricted Share Units granted and evidenced under this Agreement, (c) take such other action as may be necessary or appropriate to satisfy any tax or similar required withholding obligations, and/or (d) enter into such elections as the Company may require or request immediately before (or within the prescribed time limits) any Shares are issued to Participant pursuant to this Agreement for the purposes of any taxes.
10. | No Guarantee of Employment |
Any Restricted Share Units granted and evidenced under this Agreement will not be considered salary or other compensation for the purposes of any severance pay or similar allowance, except where required by law. This Agreement shall not confer upon Participant any right with respect to continuance of employment with the Company or a Subsidiary, nor shall it interfere in any way with any right that the Company or a Subsidiary would otherwise have to terminate Participant’s employment at any time. Notwithstanding any other provision of this Agreement:
11. | Data Privacy |
Information about Participant and Participant’s interest in any Restricted Share Units or Shares granted hereunder or in Participant’s interest in this Agreement may be collected, recorded and held, used, transferred and disclosed for any purpose relating to the administration of Participant’s rights pursuant to this Agreement. Participant understands and acknowledges that such processing of the information (which may include Participant’s personal data) may need to be carried out by the Company, Subsidiaries and third party administrators whether such persons are located within Participant’s country or elsewhere, where data protection laws may not be comparable to Participant’s country of
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residence. Participant consents to the processing and transfer of information relating to Participant and receipt of the Restricted Share Units and/or Shares under this Agreement in any one or more of the ways referred to above.
12. | Governing Law |
This Agreement will be construed, administered and governed in all respects under and by the applicable laws of the State of Georgia, without regard to any conflicts or choice of law rule or principle.
IN WITNESS WHEREOF, this Agreement has been executed and delivered by the Company on the terms and conditions set forth above.
OXFORD INDUSTRIES, INC.
By: _______________________
Title:
I hereby agree to the terms and conditions of this Agreement as a condition of the award made to me.
Participant
<<Name>>
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