PHILLIPS-VAN HEUSEN CORPORATION RESTRICTED STOCK UNIT AWARD AGREEMENT (Employee)
EXHIBIT 10.4
XXXXXXXX-VAN HEUSEN CORPORATION
2006 STOCK INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT
(Employee)
NOTICE OF RESTRICTED STOCK UNIT AWARD
Xxxxxxxx-Van Heusen Corporation (the “Company”) grants to the Grantee named below, in accordance with the terms of the Xxxxxxxx-Van Heusen Corporation 2006 Stock Incentive Plan (the “Plan”) and this restricted stock unit agreement (this “Agreement”), the number of restricted stock units (the “Restricted Stock Units” or the “Award”) provided as follows:
GRANTEE |
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RESTRICTED STOCK UNITS GRANTED |
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DATE OF GRANT |
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VESTING SCHEDULE | Except as provided in paragraphs 3 and 4 below, the Award will vest in accordance with paragraph 2 below, subject to the Grantee’s satisfaction of the service and performance conditions specified therein. |
AGREEMENT
1.
Grant of Award. The Company hereby grants to the Grantee the Restricted Stock Units, subject to the terms, definitions and provisions of the Plan and this Agreement. All terms, provisions, and conditions applicable to the Restricted Stock Units set forth in the Plan and not set forth herein are incorporated by reference. To the extent any provision hereof is inconsistent with a provision of the Plan the provisions of the Plan will govern. All capitalized terms that are used in this Agreement and not otherwise defined herein shall have the meanings ascribed to them in the Plan.
2.
Vesting and Settlement of Award; Service and Performance Conditions.
a.
Vesting and Settlement of Award. Vesting and settlement of this Award is conditioned upon the satisfaction of the service conditions in subsection (i) below and the performance condition for any of the Performance Periods, each as set forth in Exhibit A, as provided in subsection (ii) below.
i.
Service Vesting Condition. Except as otherwise provided in this subsection (i), this Award shall become vested pursuant to the following vesting schedule (the “Vesting Schedule”), provided the Grantee remains in Continuous Service from the date of grant through the applicable vesting date and provided further that any one of the applicable performance conditions set forth in subsection (ii) has been satisfied as of such vesting date:
Vesting Date | Percentage of Award that Vests |
[Second anniversary of the date of grant] | [ ]% |
[Third anniversary of the date of grant] | [ ]% |
[Fourth anniversary of the date of grant] | [ ]% |
[Fifth anniversary of the date of grant] | [ ]% |
[Sixth anniversary of the date of grant] | [ ]% |
If a performance condition set forth in subsection (ii) of this Paragraph 2(a) has not been satisfied as of a vesting date set forth in the Vesting Schedule, the portion of the Award that otherwise would vest upon such vesting date (the “Deferred Portion”) shall not vest; provided, however, that if any performance condition for a subsequent Performance Period is thereafter satisfied, the Deferred Portion shall vest on the last day of the Performance Period as for which such performance condition is satisfied, so long as the Grantee was an employee of the Company on the last business day of such Performance Period. Notwithstanding anything herein to the contrary, if no performance condition has been satisfied as of the sixth anniversary of the date of grant but the performance condition for the final Performance Period is satisfied, the Award shall vest in full on the last day of the final Performance Period, so long as the Grantee was an employee of the Company on the last business day of such Performance Period. If no performance condition set forth in subsection (ii) of this Paragraph 2(a) is satisfied after completion of all Performance Periods set forth in Exhibit A or, if earlier, as of the date of the Grantee’s termination of employment, the Award shall be forfeited in its entirety and the Grantee’s rights with respect thereto shall cease. If the Grantee’s employment terminates (whether or not the performance condition has been satisfied) prior to the applicable vesting date, any then unvested portion of the Award shall be forfeited and the Grantee’s rights with respect thereto shall cease.
ii.
Performance Vesting Conditions. In addition to the satisfaction of the service vesting conditions set forth in subsection (i) of this Paragraph 2(a), the vesting and settlement of this Award is conditioned upon the satisfaction of any one of the performance conditions set forth in Exhibit A, subject to certification of achievement of such performance condition by the Committee. For the avoidance of doubt, only one performance condition needs to be satisfied, and once any one performance condition is satisfied, the Award shall vest in full, subject to any service vesting conditions set forth in subsection (i) of this Paragraph 2(a). Once any performance condition is met for a Performance Period, the Committee need not, and shall not, determine whether any performance condition for a subsequent Performance Period has been satisfied. Each of the performance conditions shall be subject to such adjustments and exclusions established by the Committee not later than 90 days following the beginning of the applicable Performance Period (and in no event after 25% of the Performance Period has elapsed).
b.
Settlement of Award. Except as otherwise provided in subsection (i) of Paragraph 2(a), the vested portion of this Award shall be settled as soon as practicable following the applicable vesting date, but in no event later than the 15th day of the third month following the end of the Company’s tax year in or with respect to which the award vests. Notwithstanding anything in the foregoing to the contrary, the Award may vest and be settled upon death as provided in Paragraph 3 or upon a Change in Control as provided in Paragraph 4.
The Company may require the Grantee to furnish or execute such documents as the Company shall reasonably deem necessary (i) to evidence such settlement and (ii) to comply with or satisfy the requirements of the Securities Act of 1933, as amended, the Exchange Act, Section 409A of the Code or any Applicable Laws.
c.
Method of Settlement. The Company shall deliver to the Grantee one Share for each vested Restricted Stock Unit, less any Shares withheld in accordance with Paragraph 2(e) of this Agreement. Share certificates shall be issued in the name of the Grantee (or of the person or persons to whom such Restricted Stock Units were transferred in accordance with Paragraph 5 of this Agreement).
d.
Dividend Equivalents. If a cash Dividend is declared on the Shares, the Grantee shall be credited with a Dividend Equivalent in an amount of cash equal to the number of Restricted Stock Units held by the Grantee as of the dividend record date, multiplied by the amount of the cash dividend paid per Share. Such Dividend Equivalent shall be paid if and when the underlying Restricted Stock Units are settled. If a Share Dividend is declared on the Shares, the Grantee shall be credited with a Dividend Equivalent in an amount of Shares equal to the number of Restricted Stock Units held by the Grantee as of the dividend record date, multiplied by the amount of the Share dividend distributed per Share. Such Dividend Equivalent shall be settled if and when the underlying Restricted Stock Units are settled, rounded down to the nearest whole share. Dividend Equivalents shall not accrue interest prior to the date of payment or settlement, as applicable.
e.
Taxes. Pursuant to Section 14 of the Plan, the Company shall have the power and the right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any applicable tax withholding requirements applicable to this Award. The Company may condition the delivery of Shares upon the Grantee’s satisfaction of such withholding obligations. To the extent permitted by the Committee, the Grantee may elect to satisfy all or part of such withholding requirement by tendering previously-owned Shares or by having the Company withhold Shares having a Fair Market Value equal to the minimum statutory tax withholding rate that could be imposed on the transaction (or such other rate that will not result in a negative accounting impact). Such election shall be irrevocable, made in writing, signed by the Grantee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.
3.
Termination of Employment. In the event the Grantee’s employment with the Company and its Subsidiaries is terminated prior to the vesting date(s) set forth in the Vesting Schedule due to the Grantee’s death, the Award shall become 100% vested on the date of such death and shall be settled on the 31st day following the date of the Grantee’s death, or as soon as practicable after such 31st day, but in no event later than December 31st of the calendar year in which such 31st day occurs.
Except as otherwise provided in subsection (i) of Paragraph 2(a), when the Grantee’s employment with the Company and its Subsidiaries terminates (except when due to death), this Award shall be forfeited immediately with respect to the number of Restricted Stock Units for which the Award is not yet vested. If the Grantee dies after termination of employment, but before the settlement of the Award, all or part of this Award may be settled by payment to the personal representative of the Grantee or by any person who has acquired this Award directly from the Grantee but only to the extent that the Award was vested upon termination of the Grantee’s employment.
4.
Settlement on Change in Control. Notwithstanding anything herein to the contrary, upon a Change in Control, the Award shall become 100% vested and non-forfeitable and shall be settled within 30 days following such Change in Control.
5.
Transferability of Award. The Award may not be transferred, pledged, assigned, or otherwise disposed of, except (i) by will or the laws of descent and distribution or (ii) for no consideration, subject to such rules and conditions as may be established by the Committee, to a member or members of the Grantee’s Immediate Family. For purposes of this Award Agreement, the Grantee’s “Immediate Family” means the Grantee’s children, stepchildren, grandchildren, parents, stepparents, grandparents, spouse, former spouse, siblings, nieces, nephews, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships or any person sharing the Grantee’s household (other than a tenant or employee).
6.
Miscellaneous Provisions.
a.
Rights as a Stockholder. Neither the Grantee nor the Grantee’s representative shall have any rights as a stockholder with respect to any Shares subject to this Award, except as provided in Paragraph 2(d), until the Award has vested and Share certificates, if any, have been issued to the Grantee, transferee or representative, as the case may be.
b.
Regulatory Compliance and Listing. The issuance or delivery of any certificates representing Shares issuable pursuant to this Agreement may be postponed by the Committee for such period as may be required to comply with any applicable requirements under the federal or state securities laws, any applicable listing requirements of the New York Stock Exchange, and any applicable requirements under any other Applicable Law, and the Company shall not be obligated to deliver any such Shares to the Grantee if either delivery thereof would constitute a violation of any provision of any law or of any regulation of any governmental authority or the New York Stock Exchange, or the Grantee shall not yet have complied fully with the provisions of Paragraph 2(e) hereof. The Company shall not be liable to the Grantee for any damages relating to any delays in issuing the certificates to the Grantee, any loss of the certificates, or any mistakes or errors in the issuance of the certificates or the certificates themselves.
c.
Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.
d.
Modification or Amendment. This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to Section 16 and Section 18(b) of the Plan may be made without such written agreement.
e.
Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.
f.
References to Plan. All references to the Plan shall be deemed references to the Plan as may be amended.
g.
Headings. The captions used in this Agreement are inserted for convenience and shall not be deemed a part of this Award for construction or interpretation.
h.
Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or by the Company forthwith to the Board or the Committee, which shall review such dispute at its next regular meeting. The resolution of such dispute by the Board or the Committee shall be final and binding on all persons.
i.
Section 409A of the Code. The provisions of this Agreement and any payments made herein are intended to comply with, and should be interpreted consistent with, the requirements of Section 409A of the Code, and any related regulations or other effective guidance promulgated thereunder by the U.S. Department of the Treasury or the Internal Revenue Service. Notwithstanding the foregoing, in the event any settlement of the Award hereunder constitutes “deferred compensation” within the meaning of Section 409A of the Code, and the Grantee is a “specified employee” (as determined under the Company’s policy for identifying specified employees) on the date of his or her “separation from service” (within the meaning of Section 409A of the Code), the date for settlement shall be the earlier of (i) death or (ii) the later of (x) the date that settlement would otherwise be made hereunder or (y) the first business day following the end of the sixth-month period following the date of the Grantee’s separation from service.
j.
Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
XXXXXXXX-VAN HEUSEN CORPORATION
By: ______________________________
Name:
Title:
The Grantee represents that s/he is familiar with the terms and provisions thereof, and hereby accepts this Agreement subject to all of the terms and provisions thereof. The Grantee has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of this Agreement. The Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Agreement.
Dated:______________________________ Signed:___________________________________
Grantee
EXHIBIT A
