EX-10.23.2






Exhibit 10.23.2




DSW INC.

2005 EQUITY INCENTIVE PLAN




FORM OF STOCK UNITS

GRANTED TO                      ON                     



DSW Inc. (“Company”) and its shareholders believe that their business interests are best
served by extending to you an opportunity to earn additional compensation based on the growth of
the Company’s business. To this end, the Company and its shareholders adopted the DSW Inc. 2005
Equity Incentive Plan (“Plan”) as a means through which you may share in the Company’s success.
This is done by granting Awards to directors.



This Award Agreement describes many features of your Award and the conditions you must meet before
you may receive the value associated with your Award. To ensure you fully understand these terms
and conditions, you should:





	 	•	 	Read the Plan and the Plan’s Prospectus carefully to ensure you understand how the
Plan works;
	 
	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your
Award and what must happen if you are to earn it; and
	 
	 	•	 	Contact DSW’s Senior Vice President, Human Resources at                     if you have any
questions about your Award.




Also, no later than                      you must return a signed copy of the Award Agreement to:



Senior Vice President, Human Resources

DSW

810 DSW Drive

Columbus, Ohio 43219



If you do not do this, your Award will be revoked automatically as of the Grant Date and you will
not be entitled to receive anything on account of the retroactively revoked Award.



Section 409A of the Internal Revenue Code (“Section 409A”) imposes substantial penalties on persons
who receive some forms of deferred compensation (see the Plan’s Prospectus for more information
about these penalties). Your Award has been designed to avoid these penalties. However, because
of uncertainty in the application of Section 409A, it may be necessary to revise your Award
Agreement if you are to avoid these penalties. As a condition of accepting this Award, you must
agree to accept those revisions, without any further consideration, even if those revisions change
the terms of your Award and reduce its value or potential value.




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Nature of Your Award



You have been granted an Award consisting of Stock Units, which will be converted to common shares
of the Company if the conditions described in this Award Agreement are met. Federal income tax
rules apply to the payment of your Award. These and other conditions affecting your Award are
described in this Award Agreement, the Plan and the Plan’s Prospectus, all of which you should read
carefully.



No later than                     , you must return a signed copy of this Award Agreement to:



Senior Vice President, Human Resources

DSW

810 DSW Drive

Columbus, Ohio 43219



If you do not do this, your Award will be revoked automatically as of the Grant Date and you will
not be entitled to receive anything on account of the retroactively revoked Award.



Grant Date: Your Stock Units were granted on                      and it also is the date your Stock Units vested.



Number of Stock Units: You have been granted                     Stock Units in payment of a portion of your annual
retainer. Although these Stock Units are not actual shares of Company stock, they will be credited
with “dividends” at the same rate and at the same time dividends are paid on actual shares of
Company Stock. These dividends will be converted to additional Stock Units based on the amount of
dividends paid and the Fair Market Value (as defined in the Plan) of a share of Company stock.
These additional Stock Units will be distributed at the same time and subject to the same terms and
conditions that apply to other Stock Units granted with this Award Agreement.



The conditions that must be met before the Award is converted into shares of Company stock are
discussed below in the Section titled “When Your Award Will Be Settled.”




When Your Award Will Be Settled



Normal Settlement: Your Stock Units normally will be settled and converted to an equal number of
shares of Company stock when you leave the Company’s board of directors (provided such termination
of service constitutes a separation from service within the meaning of Section 409A).



How Your Stock Units Might Be Settled Before the Normal Settlement Date: If there is a Change in
Control (as defined in the Plan) before the Normal Settlement Date, your Stock Units will be
settled as of the date of the Change in Control.



How Your Stock Units May Be Forfeited: You will forfeit any Stock Units if, before they are
settled and before Change in Control, your board service ends because:





	 	•	 	You materially fail to substantially perform your position or duties;





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	 	•	 	You engage in illegal or grossly negligent conduct that is materially injurious
to the Company or any Related Entity (as defined in the Plan);
	 
	 	•	 	You materially violate any law or regulation governing the Company or any
Related Entity;
	 
	 	•	 	You commit a material act of fraud or dishonesty which has had or is likely to
have a material adverse effect upon the Company’s (or any Related Entity’s)
operations or financial conditions;
	 
	 	•	 	You materially breach the terms of any other agreement with the Company or any
Related Entity; or
	 
	 	•	 	You breach any term of the Plan or this Award Agreement.




Also, if you terminate your board service for any reason other than those just listed and the
Company subsequently discovers that you actively concealed an act, event or failure that is within
those just listed and the Company could not have discovered that act, event or failure through
reasonable diligence before your termination, you will be required to repay to the Company the full
value you received under this Award.




Settling Your Award



Your Stock Units will be settled automatically soon after your board service ends. At that time,
you will receive one share of Company stock for each Stock Unit.




Other Rules Affecting Your Award



Rights Before Your Stock Units Are Settled: Until your Stock Units are settled, you may not
exercise any voting rights associated with the shares underlying your Stock Units. See Section
titled “Nature of Your Award — Number of Stock Units for a description of how dividends will be
paid on your Stock Units.



Beneficiary Designation: You may name a Beneficiary or Beneficiaries to receive any Stock Units to
be settled after you die. This may be done only on the attached Beneficiary Designation Form and
by following the rules described in that form and in the Plan. If you die without making an
effective Beneficiary designation with respect to this Award, the Stock Units subject to this Award
will be converted to shares and distributed to your surviving spouse or, if you do not have a
surviving spouse, to your estate.



Tax Withholding: You (and not the Company) are solely responsible for any income and other taxes
(including payment of estimated taxes) associated with this Award or its conversion to shares of
Company stock.



Transferring Your Stock Units: Normally, your Stock Units may not be transferred to another
person. However, you may complete a Beneficiary Designation Form to name the person to receive any
Stock Units settled after you die. Also, the Committee may allow you to place your Stock Units
into a trust established for your benefit or the benefit of your family. Contact




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DSW’s Senior Vice President, Human Resources at                      or at the address given below if you are
interested in doing this.



Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
of the United States and the laws of the State of Ohio (other than laws governing conflicts of
laws).



Other Agreements: Also, your Stock Units will be subject to the terms of any other written
agreements between you and the Company.



Adjustments to Your Stock Units: Your Stock Units will be adjusted, if appropriate, to reflect any
change to the Company’s capital structure (e.g., the number of your Stock Units will be adjusted to
reflect a stock split).



Other Rules: Your Stock Units also are subject to more rules described in the Plan and in the
Plan’s Prospectus. You should read both these documents carefully to ensure you fully understand
all the conditions of this Award.




Tax Treatment of Your Award



The federal income tax treatment of your Stock Units is discussed in the Plan’s Prospectus.




*****



You may contact DSW’s Senior Vice President, Human Resources at                      or at the address given
below if you have any questions about your Award or this Award Agreement.




*****




Your Acknowledgment of Award Conditions



Note: You must sign and return a copy of this Award Agreement to DSW’s Senior Vice President,
Human Resources at the address given below no later than                     .



By signing below, I acknowledge and agree that:





	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I have received a copy of the Plan’s Prospectus;
	 
	 	•	 	I understand and accept the conditions placed on my Award and understand what I must
do to earn my Award;
	 
	 	•	 	I will consent (in my own behalf and in behalf of my beneficiaries and without any
further consideration) to any change to my Award or this Award Agreement to avoid
paying penalties under Section 409A of the Internal Revenue Code, even if those changes
affect the terms of my Award and reduce its value or potential value; and





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	 	•	 	If I do not return a signed copy of this Award Agreement to the address shown below
before «RETURN_DATE», my Award will be revoked automatically as of the date it was
granted and I will not be entitled to receive anything on account of the retroactively
revoked Award.





	 	 	 	 	 
	 	 	 
	(signature)	 	 
	Date signed:
	 	 	 	 
	 

	 	 

	 	 





A signed copy of this form must be sent to the following address no later than                     :



Senior Vice President, Human Resources

DSW

810 DSW Drive

Columbus, Ohio 43219




*****




Committee’s Acknowledgment of Receipt



A signed copy of this Award Agreement was received on                                         .




By:                                         




                                        




	 	 	 	 	 
	 	 	           Has complied with the conditions imposed on the grant and the Award and the Award
Agreement remains in effect; or
	 
	 	 	 	 
	 	 	           Has not complied with the conditions imposed on the grant and the Award and the Award
Agreement are revoked as of the Grant Date because
	 
	 	 	 	 
	 

	 	 

	 	 
	 	 	describe deficiency






	 	 	 	 	 
	DSW Inc. 2005 Equity Incentive Plan Committee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 





Note: Send a copy of this completed form to                      and keep a copy as part of the Plan’s permanent
records.




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DSW INC.

2005 EQUITY INCENTIVE PLAN

BENEFICIARY DESIGNATION FORM




RELATING TO STOCK UNITS ISSUED TO                     

ON                     




Instructions for Completing This Form



You may use this form to [1] name the person you want to receive any amount due under the DSW Inc.
2005 Equity Incentive Plan after your death or [2] change the person who will receive these
benefits.



There are several things you should know before you complete this form.



First, if you do not elect another Beneficiary, any amount due to you under the Plan when you die
will be paid to your surviving spouse or, if you have no surviving spouse, to your estate.



Second, your election will not be effective (and will not be implemented) unless you sign this
form.



Third, your election will be effective only if and when this form is completed properly and
returned to DSW’s Senior Vice President, Human Resources at the address given below.



Fourth, all elections will remain in effect until they are changed (or until all death benefits are
paid).



Fifth, if you designate your spouse as your Beneficiary but are subsequently divorced from that
person (or your marriage is annulled), your Beneficiary designation will be revoked automatically.



Sixth, if you have any questions about this form or if you need additional copies of this form,
please contact DSW’s Senior Vice President, Human Resources at                                         or at the address given
below.




1.00 Designation of Beneficiary




1.01 Primary Beneficiary:





I designate the following persons as my Primary Beneficiary or Beneficiaries to receive
any shares of DSW stock due after my death under the terms of the Award Agreement described at the
top of this form. These shares will be allocated, in the proportion specified to:



	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 










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	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





1.02 Contingent Beneficiary



If one or more of my Primary Beneficiaries dies before I die, I direct that any shares of DSW stock
due after my death under the terms of the Award Agreement described at the top of this form:





	 	 	 	           Be allocated to my other named Primary Beneficiaries in proportion to the allocation
given above (ignoring the interest allocated to the deceased Primary Beneficiary); or
	 
	 	 	 	          Be paid to my other named Primary Beneficiaries in proportion to the allocation given
above (ignoring the interest allocated to the deceased Primary Beneficiary); or
	 
	 	 	 	          Be
distributed among the following Contingent Beneficiaries.





	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





	 	 	 	 	 	 	 
	 

	 	% to	 	 	 	 
	 	 	 
	 

	 	 	 	          (Name)
	 	(Relationship)






	 	 	 
	Address:
	 	 
	 

	 	 





****




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Elections made on this form will be effective only after this form is received by DSW’s Senior Vice
President, Human Resources and only if it is fully and properly completed and signed.




	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	Soc. Sec. No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date of Birth:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 
	 
	 	 	 	 
	 	 	 




Sign and return this form to DSW’s Senior Vice President, Human Resources at the address given
below.




	 	 	 	 	 
	 

Date

	 	 

Signature
	 	 






Return this signed form to DSW’s Senior Vice President, Human Resources at the following address:



Senior Vice President, Human Resources

DSW

810 DSW Drive

Columbus, Ohio 43219




Received on:                                         




By:                                         





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