Contract
EXHIBIT 10 (a)
CAMPBELL SOUP COMPANY LOGO)"/>
2003 LONG-TERM INCENTIVE PLAN
TIME-LAPSE RESTRICTED STOCK UNIT AGREEMENT
TIME-LAPSE RESTRICTED STOCK UNIT AGREEMENT
TIME-LAPSE RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”), dated as of the 1st
day of November, 2008 (the “Grant Date”) between Xxxxxxxx Soup Company (the “Company”) and B. Xxxxx
Xxxxx (the “Participant”), an employee of the Company.
WHEREAS, the Company desires to award the Participant restricted stock units, which each
represent a right to receive one share of Capital Stock of the Company (the “Restricted Stock
Units”) as hereinafter provided, under the Xxxxxxxx Soup Company 2003 Long-Term Incentive Plan (the
“Plan”). Except as otherwise provided, the terms used herein shall have the same meaning as in the
Plan.
NOW, THEREFORE, in consideration of valuable considerations the legal sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
1. Award of Restricted Stock Units. The Company hereby confirms the award to the
Participant on the Grant Date by the Compensation and Organization Committee of the Board of
Directors (the “Committee”) of 41,200 Restricted Stock Units. The Restricted Stock Units are in
all respects limited and conditioned as hereinafter provided, and are subject in all respects to
the Plan’s terms and conditions, as amended.
2. Restriction Period; Payment. Subject to the terms of this Agreement and the Plan
and provided that the Participant remains continuously employed throughout the vesting periods set
forth below, one-half (1/2) of the Restricted Stock Units shall vest upon each “Vesting Date”, as
set forth below:
| Restriction | Number of Restricted | |||||
| Period | Vesting Dates | Stock Units | ||||
1
|
November 1, 2010 | 20,600 | ||||
2
|
November 1, 2011 | 20,600 | ||||
Except as otherwise provided below, the Company shall deliver to the Participant one share of the
Company’s Capital Stock for a vested Restricted Stock Unit during the month following each
applicable Vesting Date. In lieu of issuing fractional shares of the Company’s Capital Stock, the
Company shall round the shares to the nearest whole share and the value of any such share that
represents a fraction of a Restricted Stock Unit shall be paid in cash. Unless terminated earlier
under Section 4 below, a Participant’s rights under this Agreement shall terminate with respect to
each Restricted Stock Unit at the time such Restricted Stock Unit is converted into the Company’s
Capital Stock.
3. Dividend Equivalent Payment. Prior to the applicable Vesting Date, Participant
shall be paid in cash the amounts equivalent to the dividends which would be paid on the Company’s
Capital Stock underlying the Restricted Stock Units. Such dividend equivalent amounts shall be
paid as soon as practicable after the Company’s Board of Directors approves and declares a dividend
on its Capital Stock, but no later than March 15 of the year following the year such dividend is
declared. Notwithstanding the foregoing and subject to Section 4 below, the dividend equivalent
payments shall be discontinued for any Restricted Stock
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Units terminated under Section 4 if the Participant is no longer employed by the Company or
its subsidiaries and an exception does not apply.
4. Early Termination of Restricted Stock Unit; Termination of Employment. The
Restricted Stock Units, to the extent not previously vested, shall terminate and become null and
void if and when the Participant ceases for any reason to be an employee of the Company or its
subsidiaries, including but not limited to termination for Cause, except as provided in below:
| (a) | Retirement or Retirement Eligible upon Involuntary Termination, Total Disability, or Death. |
| (i) | If the Participant’s employment is terminated at least six (6) months following the Grant Date by the Company for reasons other than Cause or by the Participant as a result of Retirement, Total Disability, or death (provided the Participant is Retirement Eligible at the time of any such termination), the Participant shall be treated as continuously employed through the Vesting Dates, and the Company will deliver to the Participant, or his or her legal representative, one share of the Company’s Capital Stock for each Restricted Stock Unit vested on that date in accordance with Section 2. | ||
| (ii) | For purposes of this Agreement, the following terms shall have the meanings set forth below: |
| A. | “Retirement” or “Retirement Eligible” means the Participant terminates, or is eligible to terminate, employment with the Company or its subsidiaries after attaining 55 years of age with at least 5 years of continuous service on or prior to the date of termination. | ||
| B. | “Total Disability” means “Total Disability” or “Totally Disabled” as that term is defined under a Company-sponsored long-term disability plan from which the Participant is receiving disability benefits and which is in effect from time to time on and after the Grant Date. |
| (b) | Total Disability, Death or Involuntary Termination (Not Retirement Eligible). If the Participant’s employment is terminated at least six (6) months following the Grant Date by the Company for reasons other than Cause or as the result of the Participant’s Total Disability or death and the Participant is not Retirement Eligible, the Participant shall vest in a prorated portion of his or her Restricted Stock Units under this Agreement according to the following formula: |
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| Restriction Period | |||
| 1 | 2 | ||
Number of months worked from Grant
Date to termination date divided by
24; multiplied by number of
Restricted Stock Units originally
scheduled to vest on the first
Vesting Date shall vest on the first
Vesting Date.
|
Number of months worked from Grant Date to termination date divided by 36; multiplied by number of Restricted Stock Units originally scheduled to vest on the second Vesting Date shall vest on the second Vesting Date. | ||
The Company will deliver to the Participant, or his or her legal representative, one
share of the Company’s Capital Stock for each Restricted Stock Unit that vests on a
Vesting Date in accordance with Section 2.
| (c) | Any Termination Prior to Six-Month Anniversary of Grant Date. If a Participant resigns or is terminated for any reason before six (6) months have elapsed from the Grant Date, the Restricted Stock Unit award shall be cancelled by the Company and the Participant shall forfeit the entire award. |
5. Withholding of Taxes. The Company or the subsidiary which employs the Participant
shall be entitled to require, as a condition of making any payments or issuing any shares upon
vesting of the Restricted Stock Units, that the Participant or other person entitled to such shares
or other payment pay any sums required to be withheld by federal, state, local, or other applicable
tax law with respect to such vesting or payment. Alternatively, the Company or such subsidiary, in
its discretion, may make such provisions for the withholding of taxes as it deems appropriate
(including, without limitation, withholding the taxes due from compensation otherwise payable to
the Participant or reducing the number of shares otherwise deliverable with respect to the award
(with the value based on the closing price on the NYSE composite tape on the tax date) by the
amount necessary to satisfy such withholding obligations).
6. Non-Transferability of Restricted Stock Units. Participant’s right in the
Restricted Stock Units awarded under this Agreement and any interest therein 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. Restricted Stock Units shall not be subject to execution,
attachment or other process.
7. Severability. If one or more of the provisions of this Award Agreement shall be
held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby and the invalid,
illegal or unenforceable provisions shall be deemed null and void; however, to the extent
permissible by law, any provisions which could be deemed null and void shall first be construed,
interpreted or revised retroactively to permit this Agreement to be construed so as to xxxxxx the
intent of this Agreement and the Plan.
8. Internal Revenue Code Section 409A. This Agreement shall be interpreted, operated,
and administered in a manner so as not to subject Participant to the assessment of additional taxes
or interest under Code section 409A to the extent such Participant or any payment under this
Agreement is subject to U.S. tax laws, and this Agreement shall be amended as the Company, in its
sole discretion, determines is necessary and appropriate to avoid the application of any such taxes
or interest.
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9. Entire Agreement. The terms of the Plan and this Agreement when signed by
Participant will constitute the entire agreement with respect to the subject matter hereof. This
Agreement supersedes any prior agreements, representations or promises of the parties relating to
the subject matter hereof.
10. Governing Law. This Agreement shall be construed in accordance with, and its
interpretation shall otherwise be governed by, New Jersey law.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
executive, and the Participant has hereunto set his or her hand and seal, all as of the day and
year first above written.
| XXXXXXXX SOUP COMPANY |
||||
| By: | /s/ Xxxxxx X. Xxxxxxxx | |||
| Xxxxxx X. Xxxxxxxx | ||||
| Director, Global Compensation and International Programs | ||||
| /s/ B. Xxxxx Xxxxx | ||||
| Participant | ||||
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