Attached files
file | filename |
---|---|
8-K - FORM 8-K - BROWN FORMAN CORP | g24136e8vk.htm |
EX-10.4 - EX-10.4 - BROWN FORMAN CORP | g24136exv10w4.htm |
EX-10.2 - EX-10.2 - BROWN FORMAN CORP | g24136exv10w2.htm |
EX-10.1 - EX-10.1 - BROWN FORMAN CORP | g24136exv10w1.htm |
EX-99.1 - EX-99.1 - BROWN FORMAN CORP | g24136exv99w1.htm |
Exhibit
10.3
BROWN-FORMAN
2004 OMNIBUS COMPENSATION PLAN
2004 OMNIBUS COMPENSATION PLAN
RESTRICTED STOCK AWARD AGREEMENT
SUMMARY
Participant:
|
[Name] | |
Award Date:
|
July XX, 20XX | |
Performance Period
|
May 1, 20XX through April 30, 20XX | |
Share Calculation Date:
|
As soon as practicable following the Performance Period | |
Restriction Ending Date:
|
April 30, 20XX | |
Target Dollar Award:
|
$[Value] | |
Class of Shares:
|
Brown-Forman Corporation Class A Common | |
Award Date Price per Share: |
$[Value] |
THIS AWARD, effective as of the Award Date set forth above, represents a grant of Class A Common
Restricted Stock by Brown-Forman Corporation, a Delaware corporation (the Company), under the
Companys 2004 Omnibus Compensation Plan, as amended (the Plan) to the Company employee named
above (Participant). Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Plan.
1. Award. The Plan Administrator shall designate a Target Dollar Award amount for each
Participant within 90 days of the beginning of the Performance Period, and shall designate
Performance Measures for the Performance Period. In arriving at a Target Dollar Award, the Plan
Administrator has the right, but not the requirement, to solicit input from the Participant as to
the target dollars to be delivered as Restricted Stock. Shortly after the end of the Performance
Period, the Target Dollar Award will be adjusted for actual performance against the approved
Performance Measures, which shall never be less than one-half nor more than one-and-one-half times
the Target Dollar Award (the Adjusted Dollars), and the Adjusted Dollars will be converted into
shares of Class A Common Restricted Stock by dividing the Adjusted Dollars by the Award Date Price
per Share, rounding up to the next whole share (the Initial Calculation of Restricted Shares).
The number of shares of Restricted Stock issuable to the Participant under this Award shall then be
increased by a number of shares of Restricted Stock equivalent in value to the dividends that would
have been payable on the Initial Calculation of Restricted Shares in fiscal years two and three of
the Performance Period, calculated using the Award Date Price per Share, rounding up to the next
whole share. Restricted Stock shall be issued in the name of the Participant, legended with the
appropriate restriction, and held in escrow by the Company or its agent. Upon the vesting of the
Restricted Stock, and the satisfaction of applicable withholding requirements under IRC Section
10(C), the Company shall issue or cause to be delivered to the participant one or more unlegended
stock certificates in respect of such Restricted Stock.
2. Term; Vesting. The term of this Award is for a period of four years from the first day of the
Performance Period of the Award. The Participant must remain continuously employed by the Company
for a period of four fiscal years beginning with the fiscal year of the Award and extending through
the Restriction Ending Date in order to be considered vested in the Award, except as provided in
Section 3 below. Assuming continued employment, following the Restriction Ending Date the
restrictions will be removed and the unrestricted vested shares shall be delivered to the
Participant.
3. Termination of Employment. In the event the Participant does not remain continuously employed
by
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the Company until the Restriction Ending Date, the following rules will apply:
3.1 Retirement. Retirement means termination of employment, with the consent of
the Company, on or after reaching age 55 with at least five (5) full years of service, or on or
after reaching age 65 with any service. If the Participant terminates employment by reason of
Retirement, the Performance Period and Share Calculation Date will remain unaffected; except that
the Participant will not be required to remain employed following his or her Retirement date in
order to receive the delivery of the shares hereunder; provided, however, that if the Participant
terminates employment by reason of Retirement during fiscal 2011, the Target Dollar Award of this
Award shall be prorated based upon the number of whole months worked during fiscal 2011 prior to
Retirement (out of a 12 month year), with any unearned portion of the Award being immediately
canceled and forfeited. Notwithstanding any other provision of this Award, the number of shares of
the Companys Class A Common Stock represented by this Award which are to be delivered pursuant to
this Section 3.1 (with the number of shares to be delivered calculated under the applicable
provisions of this Award) shall be delivered to the Participant within sixty (60) days of the end
of the Performance Period (or if the Retirement date shall occur following the end of the
Performance Period, within sixty (60) days of the Retirement date), with the delivery date within
such period to be determined by the Company in its sole discretion.
3.2 Death/Disability. If the Participant dies or terminates employment due to
Disability (Disability to be determined by the Plan Administrator in its sole discretion in
accordance with Section 2.19 of the Plan), the Award will be adjusted for performance at Target,
vest immediately, and the number of shares of the Companys Class A Common Stock represented by
this Award shall be delivered to the Participants beneficiary(ies) within thirty (30) days of the
Participants death or termination of employment due to Disability, with the delivery date within
such period to be determined by the Company in its sole discretion. Provided, however, that if the
Participant dies or terminates employment due to Disability during fiscal 2011, the Target Dollar
Award of this Award shall be prorated based upon the number of whole months worked during fiscal
2011 prior to death/termination due to Disability (out of a 12 month year), with any unearned
portion being immediately canceled and forfeited.
3.3 Voluntary Termination, Involuntary Termination for Cause, Involuntary Termination for
Poor Performance. The full amount of the Award shall be immediately forfeited to the Company,
without compensation to the Participant, in the event of the Participants voluntary termination,
involuntary termination for Cause (as such term is defined in the Plan), or involuntary termination
for Poor Performance (as determined by the Plan Administrator in its sole discretion) prior to the
Restriction Ending Date.
3.4. Involuntary Termination No Fault. If the Participants employment is
involuntarily terminated with no fault on the part of the Participant (as determined by the Plan
Administrator in its sole discretion), the Performance Period and Share Calculation Date will
remain unaffected; except that the Participant will not be required to remain employed following
his or her no fault termination in order to receive the delivery of the shares hereunder;
provided, however, that if the Participants employment is involuntarily terminated with no fault
on the part of the Participant during fiscal 2011, the Target Dollar Award of this Award shall be
prorated based upon the number of months worked during fiscal 2011 prior to termination (out of a
12 month year), with any unearned portion being immediately canceled and forfeited.
Notwithstanding any other provision of this Award, the number of shares of the Companys Class A
Common Stock represented by this Award which are to be delivered pursuant to this Section 3.4 (with
the number of shares to be delivered calculated under the applicable provisions of this Award)
shall be delivered to the Participant within sixty (60) days of the end of the Performance Period
(or if the no fault termination date shall occur following the end of the Performance Period,
within sixty (60) days of the no fault termination date), with the delivery date within such
period to be determined by the Company in its sole discretion.
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3.5 Termination for any Other Reasons. Unless otherwise determined by the Plan
Administrator, in its sole discretion, if the Participants employment terminates for any reason
other than those set out in items 3.1, 3.2, 3.3 or 3.4 above or item 4 below prior to the
Restriction Ending Date, the full amount of the Award shall be immediately forfeited to the
Company, without compensation to the Participant. Notwithstanding the foregoing, if the Plan
Administrator determines to accelerate the Restriction Ending Date for any Award upon the
Participants termination of employment, the payment date will be a date within sixty (60) days
following the Participants termination of employment, with the payment date within such period to
be determined by the Company in its sole discretion.
4. Change in Control. Upon the occurrence of a Change in Control, as defined in the Plan, Awards
shall be treated in accordance with Article 11 of the Plan. Provided however, that in the event a
termination without Cause or by Constructive Discharge (with the circumstances constituting a
Constructive Discharge to be determined by the Plan Administrator in its discretion at or prior to
a Change of Control) following a Change of Control occurs during fiscal 2011, the Target Value
Dollar Award of this Award shall be prorated based upon the number of whole months worked during
fiscal 2011 prior to termination (out of a 12 month year), with any unearned portion being
immediately canceled and forfeited.
5. Rights as a Stockholder. During the Performance Period prior to the issuance of Restricted
Stock, the Participant has no rights as a stockholder (including, but not limited to, the right to
receive regular quarterly dividends or dividend equivalents). However, following the issuance of
Restricted Stock after the end of the Performance Period, the Participant will have the same
stockholder rights as other holders of Class A Common stock except that vesting and the right to
sell the shares is restricted as provided herein. Dividends (or dividend equivalents) are payable
to the Participant following the issue of Restricted Stock during the restriction period, unless
the payment of such dividends creates issues (as determined by the Plan Administrator) under any
IRS or SEC regulations including IRC Section 162(m), in which case they will be accrued and paid
out at the time the underlying Restricted Stock becomes free of restrictions (or at such later date
as the Plan Administrator determines such issues are no longer present).
6. Restrictions on Transfer. Prior to the Restriction Ending Date and the removal of the
restrictions on the Shares, this Award and the Restricted Stock may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.
7. Recapitalization. If there is any change in the Companys Shares through the declaration of
stock dividends, a recapitalization, stock splits, or through merger, consolidation, exchange of
Shares, or otherwise, or in the event of an extraordinary dividend or other corporate transaction,
the Plan Administrator shall adjust the number and class of Shares subject to this Award (including
by making a different kind or class of securities subject to the Award), as well as the Award Price
per Share, to prevent dilution or enlargement of rights.
8. Beneficiary Designation. The Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this Award
is to be paid in case of his or her death before he or she receives any or all of such benefit.
Each such designation shall revoke all prior designations by the Participant, shall be in a form
prescribed by the Company, and will be effective only when delivered during the Participants
lifetime to the Company at its executive offices, addressed to the attention of the Compensation
Department in Louisville, Kentucky.
9. Continuation of Employment. This Award shall not confer upon the Participant any right to
continued employment by the Company, nor shall this Award interfere in any way with the Companys
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right to terminate the Participants employment at any time. A transfer of the Participants
employment between the Company and any of its subsidiaries, or between any divisions or
subsidiaries of the Company shall not be deemed a termination of employment.
10. Miscellaneous.
A) | This Award and the Participants rights under it are subject to all the terms and conditions of the Plan and this Restricted Stock Award Agreement, as they may be amended from time to time, as well as to such rules as the Plan Administrator may adopt. The Plan Administrator may impose such restrictions on this Award as it may deem advisable, including, without limitation, restrictions under applicable Federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. The Restricted Stock shall be subject to the requirements that, if at any time the Plan Administrator shall determine that (i) the listing, registration or qualification of Class A Common Stock subject or related thereto upon any securities exchange or under any federal or state law, or (ii) the consent or approval of any governmental body, or (iii) an agreement by the Participant with respect to the disposition of shares of Class A Common Stock is necessary or desirable as a condition of, or in connection with, the delivery or purchase of shares pursuant thereto, then in such event, the grant of Restricted Stock shall not be effective unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Plan Administrator. | ||
The Plan Administrator may administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Award, all of which shall be binding upon the Participant. | |||
B) | Subject to the provisions of the Plan, the Board of Directors may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any way adversely affect the Participants rights under this Award, without the written consent of the Participant. This Agreement may not be modified, amended or waived except by an instrument in writing signed by both parties hereto. The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement. | ||
C) | The Company may deduct or withhold, or require the Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes (including the Participants FICA obligation) required by law to be withheld with respect to any exercise of the Participants rights under this Award. | ||
The Participant may remit sufficient cash to the Company to satisfy the withholding requirement or the Participant may elect to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having an aggregate Fair Market Value, on the date the tax is to be determined, equal to the amount required to be withheld. Such elections shall be irrevocable, shall be in writing, and shall be signed by the Participant before the day that the transaction becomes taxable. | |||
D) | The Participant agrees to take all steps necessary to comply with all applicable Federal and state securities law in exercising his or her rights under this Award. |
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E) | This Award shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. | ||
F) | The Companys obligations under the Plan and this Award shall bind any successor to the Company, whether succession results from a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. | ||
G) | To the extent not preempted by Federal law, this Award shall be governed by, and construed in accordance with, the laws of the State of Delaware. | ||
H) | At all times when IRC Section 162(m) applies, all Awards to Designated Executive Officers shall comply with its requirements, unless the Plan Administrator determines that compliance is not desired or necessary for any Award or Awards. To that end, the Plan Administrator may make such adjustments it deems appropriate for a specific Award or Awards, except that a performance-based Award cannot be replaced by a non-performance-based Award if performance goals are not achieved, nor can the characterization of an Executive Officer as a Designated Executive Officer, once made, change for a given Performance Period. | ||
I) | This Award is subject to the terms of the Plan and Administrative Guidelines promulgated under it from time to time. In the event of a conflict between this document and the Plan, the Plan document as well as any determinations made by the Plan Administrator as authorized by the Plan document, shall govern. | ||
J) | The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. |
[END OF TEXT.]
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IN WITNESS WHEREOF, the parties have caused this Award to be executed as of the Grant
Date.
BROWN-FORMAN CORPORATION |
||||
By: | ||||
Lisa Steiner | ||||
Senior Vice President, Chief Human Resources Officer |
||||
Agreed and Accepted: |
||||
Participant | ||||
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