EXHIBIT 10.3


 


THE McCLATCHY COMPANY


2012 OMNIBUS INCENTIVE PLAN,

AS AMENDED AND RESTATED AS OF MARCH 23, 2017


RESTRICTED STOCK UNIT AGREEMENT


 


THIS RESTRICTED STOCK
UNIT AGREEMENT (the “Agreement”) is entered into as of February 23, 2017 to be effective May 17, 2017 (the “Grant
Date”), by and between THE McCLATCHY COMPANY, a Delaware corporation (the “Company”), and [_______] (the “Grantee”).


 


W I T N E S S E T H:


 


WHEREAS, the Board
of Directors of the Company has established THE McCLATCHY COMPANY 2012 OMNIBUS INCENTIVE PLAN, AS AMENDED AND RESTATED AS OF
MARCH 23, 2017 (as it may be further amended from time to time, the “Plan”) in order to provide selected employees
of the Company and its Affiliates with an opportunity to acquire shares of the Company’s Class A Common Stock (“Stock”);
and


 


WHEREAS, the Committee
has determined that it would be in the best interests of the Company and its stockholders to grant the Restricted Stock Units described
in this Agreement to the Grantee as an inducement to remain in the service of the Company and as an incentive for extraordinary
efforts during such service.


 


NOW, THEREFORE, it
is agreed as follows:


 


SECTION 1. GRANT
OF RESTRICTED STOCK UNITS.


 


(a)       Grant.
The Company hereby grants to the Grantee an award of [_______] Restricted Stock Units, each such unit representing a share of Stock,
subject to the terms and conditions stated below.


 


(b)       Plan.
The Restricted Stock Units under this Agreement are granted pursuant to the Plan, a copy of which the Grantee acknowledges having
received and read. The provisions of the Plan are incorporated into this Agreement by reference, and any defined terms not defined
herein shall have the meaning prescribed in the Plan. Notwithstanding any contrary provision of this Agreement, if the Company’s
stockholders do not approve the amendment and restatement of the Plan within twelve (12) months of the Board’s initial
adoption of the amendment and restatement of the Plan, the Restricted Stock Units under this Agreement shall be forfeited and terminated,
except to the extent such Restricted Stock Units could have been made under the Plan prior to such amendment and restatement, as
determined and provided by the Committee.


 






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SECTION 2. NO
TRANSFER OR ASSIGNMENT OF RESTRICTED STOCK UNITS.


 


To the extent not yet
settled, the Restricted Stock Units granted hereunder and the rights and privileges conferred hereby shall not be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under
execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the
Restricted Stock Units, or of any right or privilege conferred hereby, contrary to the provisions hereof, or upon any attempted
sale under any execution, attachment or similar process upon the rights and privileges conferred hereby, the Restricted Stock Units
and the rights and privileges conferred hereby shall immediately become null and void.


 


SECTION 3. VESTING
AND FORFEITURE.


 


(a)       Vesting.
So long as the Grantee remains in Service on January 25, 2019 (the “Vesting Date”), these Restricted Stock Units shall
become fully vested on the Vesting Date.


 


(b)       Acceleration
Upon Termination on Account of Death or Disability and Upon Termination Without Cause or Resignation for Good Reason. Notwithstanding
any contrary provision of the Plan or this Agreement (but still subject to Section 1(b) of this Agreement), the Restricted Stock
Units awarded under this Agreement shall become fully vested in the event, prior to the Vesting Date, the Grantee terminates employment
with the Company on account of death or Disability, is involuntarily terminated by the Company without Cause, or resigns from the
Company for Good Reason.


 


(i)        Cause. For purposes of this Agreement, “Cause” shall mean (A) a willful failure by the Grantee
to substantially perform the duties of his or her position with the Company, other than a failure resulting from the Grantee’s
complete or partial incapacity due to physical or mental illness or impairment, or (B) a willful act by the Grantee which constitutes
gross misconduct and which is materially injurious to the Company. No act, or failure to act, by the Grantee shall be considered
“willful” unless committed without a reasonable belief that the act or omission was in the Company’s best interest.


 


(ii)       Good
Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following circumstances,
without the Grantee’s express written consent, unless, if correctable, such circumstances are fully corrected within 30 days
of the notice of termination given in respect thereof: (A) a material diminution in the Grantee’s base compensation; (B)
a material diminution in the Grantee’s authority, duties, or responsibilities; or (C) the geographic location at which the
Grantee performs his or duties as of the date hereof is changed by a distance of more than 50 miles (except for required travel
on Company business to the extent substantially consistent with the Grantee’s business travel obligations); provided further
that a resignation shall not be considered to have been on account of Good Reason unless the Grantee provides the Company not less
than 60 days’ advance notice in writing within 90 days of the initial occurrence of the condition that is the basis for such
Good Reason and the Company does not correct the condition in the time frame described above.


 


(c)       Acceleration
upon Change in Control. Notwithstanding any contrary provision of the Plan or this Agreement (but still subject to Section
1(b) of this Agreement), (i) upon a Change in Control in which outstanding awards are not assumed or substituted for while the
Grantee remains in Service, the Grantee shall immediately become fully vested in the unvested Restricted Stock Units under this
Agreement, and (ii) upon a Change in Control in which outstanding awards are assumed or substituted for while the Grantee remains
in Service, the unvested Restricted Stock Units shall continue and shall remain subject to the same terms and conditions as set
forth in this Agreement (including the acceleration set forth in Section 3(b)).


 






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(d)       Forfeiture.
If vesting has not otherwise been accelerated as provided in this Section 3, the Grantee shall immediately forfeit all unvested
Restricted Stock Units awarded under this Agreement upon his or her termination of Service with the Company.


 


(e)       Leaves
of Absence. For purposes of this Agreement, the Grantee’s Service does not terminate when the Grantee goes on a bona
fide leave of absence that was approved by the Company in writing if the terms of the leave provide for continued Service crediting,
or when continued Service crediting is required by applicable law. The Grantee’s Service terminates in any event when the
approved leave ends unless the Grantee immediately returns to active employee work. The Committee determines, in its sole discretion,
which leaves count for this purpose, and when the Grantee’s Service terminates for all purposes under the Plan.





 


SECTION 4. STOCKHOLDER
RIGHTS.


 


The Grantee will have
no rights as a stockholder unless and until the Grantee becomes vested in accordance with Section 3, thereby becoming the holder
of record of shares of Stock upon delivery of the Stock. In accordance therewith, the Grantee shall not be credited with Dividend
Equivalent Rights on the Restricted Stock Units to the extent of dividends issued on shares of Stock.


 


SECTION 5. SETTLEMENT
OF RESTRICTED STOCK UNITS.


 


(a)       Delivery
of Shares of Stock. In the event the Grantee becomes fully vested in the Restricted Stock Units under this Agreement, the
Restricted Stock Units shall be settled by delivery of shares of Stock in respect of each Restricted Stock Unit, and except as
required below in Section 5(b), the earlier of the Vesting Date or the date on which the vesting is accelerated pursuant to Sections
3(b) or 3(c), as applicable, shall be the record date of Grantee’s ownership of the shares of Stock. Any fractional shares
shall be delivered in cash. The certificates for the shares of Stock so delivered may be recorded using the book-entry method of
recording share issuance and dividends.


 


(b)       Delayed
Delivery. Delivery of Stock shall be delayed to the extent the Committee reasonably anticipates that making payment would
violate Federal securities laws or other applicable law, in which case the Stock shall instead be delivered at the earliest date
at which the Committee reasonably anticipates that undertaking the delivery will not give rise to the violation just described.


 






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SECTION 6. LEGALITY
OF INITIAL ISSUANCE.


 


No shares of Stock
shall be issued upon the vesting of this Award unless and until the Company has determined that:


 


(a)       The
Company and the Grantee have taken any actions required to register the shares of Stock under the Securities Act or to perfect
an exemption from the registration requirements thereof;


 


(b)       Any
applicable listing requirement of any stock exchange on which the Stock is listed has been satisfied; and


 


(c)       Any
other applicable provision of Applicable Law has been satisfied.


 


SECTION 7. NO REGISTRATION
RIGHTS.


 


The Company may, but
shall not be obligated to, register or qualify the sale of the shares of Stock under the Securities Act or any other applicable
law. The Company shall not be obligated to take any affirmative action in order to cause the sale of the shares of Stock under
this Agreement to comply with any Applicable Law.


 


SECTION 8. RESTRICTIONS
ON TRANSFER OF SHARES OF STOCK.


 


Regardless of whether
the offering and sale of the shares of Stock under the Plan have been registered under the Securities Act or have been registered
or qualified under the securities laws of any state, the Company may impose restrictions upon the sale, pledge or other transfer
of such shares of Stock (including the placement of appropriate legends on stock certificates) if, in the judgment of the Company
and its counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Securities
Act, the securities laws of any state or any other law.


 


SECTION 9. ADJUSTMENT
OF STOCK.


 


(a)       General.
If the number of outstanding shares of common stock is increased or decreased or the shares of common stock are changed into or
exchanged for a different number or kind of Stock or other securities of the Company on account of any recapitalization, reclassification,
stock split, reverse split, combination of Stock, exchange of Stock, stock dividend or other distribution payable in capital stock,
or other increase or decrease in such Stock effected without receipt of consideration by the Company occurring after the Grant
Date, the Committee shall make appropriate adjustments in the number of shares of Restricted Stock Units covered by this grant.


 


(b)       Merger
or Reorganization. In the event that the Company is a party to a merger or other reorganization, this grant shall be subject
to the agreement of merger or reorganization. Such agreement may provide, without limitation, for the assumption of this grant
by the surviving corporation or its parent, for its continuation by the Company (if the Company is a surviving corporation) or
for settlement in cash.


 






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(c)       Reservation
of Rights. Except as provided in this Section 9, the Grantee shall have no rights by reason of any subdivision or consolidation
of shares of Stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of
Stock of any class. Any issue by the Company of shares of Stock of any class, or securities convertible into shares of Stock of
any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of Restricted Stock
Units subject to this grant. The award of this grant shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate,
sell or transfer all or any part of its business or assets.


 


SECTION 10. CERTAIN
CUT-BACK OF PAYMENTS.


 


Notwithstanding anything
to the contrary in this Agreement, if payments made pursuant to this Agreement are considered “parachute payments”
under Code Section 280G, then the sum of such parachute payments plus any other payments made by the Company to the Grantee which
are considered parachute payments shall be limited to the greatest amount which may be paid to the Grantee under Code Section 280G
without causing any loss of deduction to the Company under such section; but only if, by reason of such reduction, the Committee
reasonably determines that the net after tax benefit of Grantee shall exceed the net after tax benefit if such reduction were not
made.  The Company shall accomplish any such reduction required pursuant to this Section 10 by first reducing or eliminating
any cash payments (with the payments to be made furthest in the future being reduced first), then by reducing or eliminating any
accelerated vesting of Performance-Based Awards, then by reducing or eliminating any accelerated vesting of Options or SARs, then
by reducing or eliminating any accelerated vesting of Restricted Stock or Restricted Stock Units, then by reducing or eliminating
any other remaining parachute payments.


 


SECTION 11. MISCELLANEOUS
PROVISIONS.


 


(a)       Withholding
Taxes. In the event that the Company determines that it is required to withhold foreign, federal, state or local tax as
a result of the vesting of Restricted Stock Units and delivery of shares of Stock pursuant to this Agreement, the Grantee, as a
condition to the vesting of the Restricted Stock Units, shall make arrangements satisfactory to the Company to enable it to satisfy
all withholding requirements. Satisfactory arrangements shall include share withholding and/or delivery of previously owned shares
of Stock in an amount equal to the applicable withholding or other taxes due. Notwithstanding the foregoing, the Company may, in
its sole discretion, elect to satisfy all applicable withholding requirements by share withholding without the Grantee’s
consent.


 


(b)       No
Employment Rights. Nothing in this Agreement shall be construed as giving the Grantee the right to be retained as an employee
or in any Service capacity. The Company reserves the right to terminate the Grantee’s service at any time and for any reason.


 


(c)       Notice.
Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery
or upon deposit with the United States Postal Service, by registered or certified mail with postage and fees prepaid and addressed
to the party entitled to such notice at the address shown below such party’s signature on this Agreement, or at such other
address as such party may designate by 10 days’ advance written notice to the other party to this Agreement.


 






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(d)       Consent
to Electronic Delivery. The Company may choose to deliver certain statutory materials relating to the Plan in electronic
form. By accepting the Restricted Stock Units, Grantee agrees that the Company may deliver the Plan prospectus and the Company’s
annual report to the Grantee in electronic format. If at any time the Grantee prefers to receive paper copies of such documents,
as the Grantee is entitled to, the Company will provide copies. Request for paper copies of such documents may be made to the Secretary
of the Company at 916-321-1828 or bmcconkey@mcclatchy.com.


 


(e)       Entire
Agreement. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject
matter hereof.


 


(f)       Choice
of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such
laws are applied to contracts entered into and performed in such State.


 


(g)        Code
Section 409A. It is intended that this Agreement comply with Section 409A of the Code (“Section 409A”) to the
extent subject thereto, and, accordingly, to the maximum extent permitted, the Agreement shall be interpreted and administered
to be in compliance with Section 409A. To the extent that the Company determines that the Grantee would be subject to the additional
taxes or penalties imposed on certain nonqualified deferred compensation plans pursuant to Section 409A as a result of any provision
of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional
taxes or penalties. The Company shall determine the nature of any such amendment. Notwithstanding anything to the contrary in this
Agreement, for purposes of any provision of this Agreement providing for the delivery of any shares of Stock upon or following
a termination of employment or a termination of Service that are considered “deferred compensation” under Section 409A,
references to the Grantee’s “termination of employment” or “termination of Service” (and corollary
terms) with the Company shall be construed to refer to the Grantee’s “separation from service” (as defined for
purposes of Section 409A).





 


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IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed on its behalf by its officer duly authorized to act on behalf of the Committee,
and the Grantee has personally executed this Agreement.


 





	 	THE McCLATCHY COMPANY
	 	 	 
	 	 	 
	 	By	 
	 	 	Secretary
	 	 	 
	 	Company’s Address:
	 	 	 
	 	 	2100 Q Street
	 	 	Sacramento, CA 95816
	 	 	 
	 	 	 
	 	GRANTEE
	 	 	 
	 	 
	 	 	 
	 	 	 
	 	Grantee’s Address:
	 	 	 
	 	 
	 	 
	 	 





 








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