Document:

EX-10.C 1996 Stock Incentive Plan

 

Exhibit (10)c.

GENESCO INC.

1996 STOCK INCENTIVE PLAN

AMENDED AND RESTATED

as of October 24, 2007

SECTION 1. Purpose; Definitions.

     The purpose of the Genesco Inc. 1996 Stock Incentive Plan (the “Plan”) is to enable Genesco
Inc. (the “Corporation”) to attract, retain and reward key employees of and consultants to the
Corporation and its Subsidiaries and Affiliates, and directors who are not also employees of the
Corporation, and strengthen the mutuality of interests between such key employees, consultants and
directors by awarding such key employees, consultants and directors performance-based stock
incentives and/or other equity interests or equity-based incentives in the Corporation, as well as
performance-based incentives payable in cash. The creation of the Plan shall not diminish or
prejudice other compensation programs approved from time to time by the Board.

     For purposes of the Plan, the following terms shall be defined as set forth below:

     A. “Affiliate” means any entity other than the Corporation and its Subsidiaries that is
designated by the Board as a participating employer under the Plan, provided that the Corporation
directly or indirectly owns at least 20% of the combined voting power of all classes of stock of
such entity or at least 20% of the ownership interests in such entity.

     B. “Board” means the Board of Directors of the Corporation.

     C. “Common Stock” means the Corporation’s Common Stock, par value $1.00 per share.

     D. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor thereto.

     E. “Committee” means the Committee referred to in Section 2 of the Plan.

     F. “Corporation” means Genesco Inc., a corporation organized under the laws of the State of
Tennessee or any successor corporation.

     G. “Disability” means disability as determined under the Corporation’s long-term disability
insurance plan, as it may be amended from time to time.

 

 

     H. “Disinterested Person” shall have the meaning set forth in Rule 16b-3(c)(2)(i) as
promulgated by the Securities and Exchange Commission (“Commission”) under the Securities Exchange
Act of 1934, as amended, or any successor definition adopted by the Commission.

     I. “Early Retirement” means retirement, for purposes of this Plan with the express consent of
the Corporation at or before the time of such retirement, from active employment with the
Corporation and any Subsidiary or Affiliate prior to age 65, in accordance with any applicable
early retirement policy of the Corporation then in effect or as may be approved by the Committee.

     J. “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
any successor thereto.

     K. “Fair Market Value” means with respect to the Stock, as of any given date or dates, unless
otherwise determined by the Committee in good faith, the reported closing price of a share of such
class of Stock on the New York Stock Exchange (“NYSE”) or such other exchange or market as is the
principal trading market for such class of Stock, or, if no such sale of a share of such class of
Stock is reported on the NYSE or other exchange or principal trading market on such date, the fair
market value of a share of such class of Stock as determined by the Committee in good faith.

     L. “Incentive Stock Option” means any Stock Option intended to be and designated as an
“Incentive Stock Option” within the meaning of Section 422 of the Code.

     M. “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

     N. “Normal Retirement” means retirement from active employment with the Corporation and any
Subsidiary or Affiliate on or after age 65.

     O. “Other Stock-Based Award” means an award under Section 8 below that is valued in whole or
in part by reference to, or is otherwise based on, Stock.

     P. “Outside Director” means a member of the Board who is not an officer or employee of the
Corporation or any Subsidiary or Affiliate of the Corporation.

     Q. “Outside Director Restricted Stock” shall have the meaning provided in Section 9.

     R. “Plan” means this Genesco Inc. 1996 Stock Incentive Plan, as amended from time to time.

     S. “Restricted Stock” means an award of shares of Stock that is subject to restrictions under
Section 7 below.

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     T. “Restriction Period” shall have the meaning provided in Section 7.

     U. “Retirement” means Normal or Early Retirement.

     V. “Stock” means the Common Stock.

     W. “Stock Appreciation Right” means the right pursuant to an award granted under Section 6
below to surrender to the Corporation all (or a portion) of a Stock Option in exchange for an
amount equal to the difference between (i) the Fair Market Value, as of the date such Stock Option
(or such portion thereof) is surrendered, of the shares of Stock covered by such Stock Option (or
such portion thereof), subject, where applicable, to the pricing provisions in Section 6(b)(ii),
and (ii) the aggregate exercise price of such Stock Option (or such portion thereof).

     X. “Stock Option” or “Option” means any option to purchase shares of Stock (including
Restricted Stock, if the Committee so determines) granted pursuant to Section 5 below.

     Y. “Subsidiary” means any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation if each of the corporations (other than the last
corporation in the unbroken chain) owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.

     In addition, the terms “Change in Control,” “Potential Change in Control” and “Change in
Control Price” shall have the meanings set forth, respectively in Sections 10(b), (c) and (d) below
and the term “Cause” shall have the meaning set forth in Section 5(j) below.

SECTION 2. Administration.

     The Plan shall be administered by a Committee of not less than two Disinterested Persons, who
shall be appointed by the Board and who shall serve at the pleasure of the Board. The functions of
the Committee specified in the Plan may be exercised by an existing Committee of the Board composed
exclusively of Disinterested Persons. The initial Committee shall be the Compensation Committee of
the Board.

     The Committee shall have authority to grant, pursuant to the terms of the Plan, to officers,
other key employees and consultants eligible under Section 4: (i) Stock Options, (ii) Stock
Appreciation Rights, (iii) Restricted Stock, and/or (iv) Other Stock-Based Awards.

     In particular, the Committee shall have the authority, consistent with the terms of the Plan:

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     (a) to select the officers and other key employees of and consultants to the
Corporation and its Subsidiaries and Affiliates to whom Stock Options, Stock Appreciation
Rights, Restricted Stock, and/or Other Stock-Based Awards may from time to time be granted
hereunder;

     (b) to determine whether and to what extent Incentive Stock Options, Non-Qualified
Stock Options, Stock Appreciation Rights, Restricted Stock, and/or Other Stock-Based Awards,
or any combination thereof, are to be granted hereunder to one or more eligible employees;

     (c) to determine the number of shares to be covered by each such award granted
hereunder;

     (d) to determine the terms and conditions, not inconsistent with the terms of the Plan,
of any award granted hereunder (including, but not limited to, the share price and any
restriction or limitation, or any vesting acceleration or waiver of forfeiture restrictions
regarding any Stock Option or other award and/or the shares of Stock relating thereto, based
in each case on such factors as the Committee shall determine, in its sole discretion); and
to amend or waive any such terms and conditions to the extent permitted by Section 11
hereof;

     (e) to determine whether and under what circumstances a Stock Option may be settled in
cash or Restricted Stock under Section 5(m) instead of Stock;

     (f) to determine whether, to what extent and under what circumstances Option grants
and/or other awards under the Plan are to be made, and operate, on a tandem basis vis-à-vis
other awards under the Plan and/or cash awards made outside of the Plan;

     (g) to determine whether, to what extent and under what circumstances Stock and other
amounts payable with respect to an award under this Plan shall be deferred either
automatically or at the election of the participant (including providing for and determining
the amount and

     (h) to determine whether to require payment withholding requirements in shares of
Stock.

     The Committee shall have the authority to adopt, alter and repeal such rules, guidelines and
practices governing the Plan as it shall, from time to time, deem advisable; to interpret the terms
and provisions of the Plan and any award issued under the Plan (and any agreements relating
thereto); and to otherwise supervise the administration of the Plan.

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     All decisions made by the Committee pursuant to the provisions of the Plan shall be made in
the Committee’s sole discretion and shall be final and binding on all persons, including the
Corporation and Plan participants.

     Notwithstanding the foregoing, the Committee shall have no authority to determine the terms or
conditions of awards to Outside Directors, which shall be governed solely by Section 9 hereof.

SECTION 3. Shares of Stock Subject to Plan.

     The aggregate number of shares of Stock reserved and available for distribution under the Plan
shall not exceed 4,400,000 shares. Such shares of Common Stock may consist, in whole or in part,
of authorized and unissued shares or of issued shares purchased and held by the Corporation.

     If any shares of Stock that have been optioned cease to be subject to a Stock Option, or if
any shares of Stock that are subject to any Restricted Stock or Other Stock-Based Award granted
hereunder are forfeited prior to the payment of any dividends, if applicable, with respect to such
shares of Stock, or any such award otherwise terminates without a payment being made to the
participant in the form of Stock, such shares shall again be available for distribution in
connection with future awards under the Plan.

     In the event of any merger, reorganization, consolidation, recapitalization, extraordinary
cash dividend, Stock dividend, Stock split or other change in corporate structure affecting the
Stock, an equitable and proportionate substitution or adjustment shall be made in the aggregate
number of shares reserved for issuance under the Plan, in the number and option price of shares
subject to outstanding Options granted under the Plan and in the number of shares subject to other
outstanding awards granted under the Plan, provided that the number of shares subject to any award
shall always be a whole number. Such adjusted option price shall also be used to determine the
amount payable by the Corporation upon the exercise of any Stock Appreciation Right associated with
any Stock Option. The maximum number of shares that may be awarded to any participant under
Section 4 of this Plan shall be adjusted in the same manner as the number of shares subject to
outstanding Options.

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SECTION 4. Eligibility.

     Officers and other key employees of and consultants to the Corporation and its Subsidiaries
and Affiliates (but excluding members of the Committee and any person who serves only as a
director, except as otherwise provided in Section 9) who are responsible for or contribute to the
management, growth and/or profitability of the business of the Corporation and/or its Subsidiaries
and Affiliates are eligible to be granted awards under the Plan. No individual employee, officer
or consultant shall receive aggregate awards hereunder amounting to more than 1,000,000 shares,
subject to adjustment as provided in Section 3.

SECTION 5. Stock Options.

     Stock Options may be granted alone, in addition to or in tandem with other awards granted
under the Plan and/or cash awards made outside of the Plan. Any Stock Option granted under the
Plan shall be in such form as the Committee may from time to time approve.

     Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and
(ii) Non-Qualified Stock Options. Incentive Stock Options may be granted only to individuals who
are employees of the Corporation or any Subsidiary of the Corporation.

     The Committee shall have the authority to grant to any optionee Incentive Stock Options,
Non-Qualified Stock Options, or both types of Stock Options (in each case with or without Stock
Appreciation Rights).

     Options granted to officers, key employees and consultants under the Plan shall be subject to
the following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable.

     (a)
Option Price. The option price per share of Stock purchasable under a Stock Option
shall be determined by the Committee at the time of grant but shall be not less than 100%
(or, in the case of any employee who owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Corporation or of any of its
Subsidiaries, not less than 110%) of the Fair Market Value of the Stock at grant, in the
case of Incentive Stock Options, and not less than 50% of the Fair Market Value of the Stock
at grant, in the case of Non-Qualified Stock Options.

     (b)
Option Term. The term of each Stock Option shall be fixed by the Committee, but no
Incentive Stock Option shall be exercisable more than ten years (or, in the case of an
employee who owns stock possessing more than 10% of the total combined voting power of all
classes of stock of the Corporation or any of its Subsidiaries or parent corporations, more
than five years) after the date the Option is granted.

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     (c)
Exercisability. Stock Options shall be exercisable at such time or times and
subject to such terms and conditions as shall be determined by the Committee at or after
grant; provided, however, that except as provided in Section 5(g) and (h) and Section 10,
unless otherwise determined by the Committee at or after grant, no Stock Option shall be
exercisable prior to the first anniversary date of the granting of the Option. The
Committee may provide that a Stock Option shall vest over a period of future service at a
rate specified at the time of grant, or that the Stock Option is exercisable only in
installments. If the Committee provides, in its sole discretion, that any Stock Option is
exercisable only in installments, the Committee may waive such installment exercise
provisions at any time at or after grant in whole or in part, based on
such factors as the Committee shall determine, in its sole discretion. The Committee may
establish performance conditions or other conditions to the exercisability of any Stock
Options, as determined by the Committee in its sole discretion, which conditions may be
waived by the Committee in its sole discretion.

     (d)
Method of Exercise. Subject to whatever installment exercise restrictions apply
under Section 5(c), Stock Options may be exercised in whole or in part at any time during
the option period, by giving written notice of exercise to the Corporation specifying the
number of shares to be purchased.

     Such notice shall be accompanied by payment in full of the purchase price, either by
check, note or such other instrument as the Committee may accept. As determined by the
Committee, in its sole discretion, at or (except in the case of an Incentive Stock Option)
after grant, payment in full or in part may also be made in the form of unrestricted Stock
already owned by the optionee or, in the case of the exercise of a Non-Qualified Stock
Option or Restricted Stock, subject to an award hereunder (valued at the Fair Market Value
of the Stock on the date the option is exercised, as determined by the Committee). If
payment of the exercise price is made in part or in full with Stock, the Committee may award
to the employee a new Stock Option to replace the Stock which was surrendered.

     If payment of the option exercise price of a Non-Qualified Stock Option is made in
whole or in part in the form of Restricted Stock, such Restricted Stock (and any replacement shares relating thereto) shall remain (or be) restricted in accordance with the original
terms of the Restricted Stock award in question, and any additional Stock received upon the
exercise shall be subject to the same forfeiture restrictions, unless otherwise determined
by the Committee, in its sole discretion, at or after grant.

     No shares of Stock shall be issued until full payment therefor has been made. An
optionee shall generally have the rights to dividends or other rights of a stockholder with
respect to shares subject to the Option when the optionee has given written notice of
exercise, has paid in full for such shares, and, if requested, has given the representation
described in Section 13(a).

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     (e)
Non-Transferability of Options. No Stock Option shall be transferable by the
optionee otherwise than by will or by the laws of descent and distribution, and all Stock
Options shall be exercisable, during the optionee’s lifetime, only by the optionee.

     (f)
Bonus for Taxes. In the case of a Non-Qualified Stock Option, the Committee in its
discretion may award at the time of grant or thereafter the right to receive upon exercise
of such Stock Option a cash bonus calculated to pay part or all of the federal and state, if
any, income tax incurred by the optionee upon such exercise.

     (g)
Termination by Death. Subject to Section 5(k), if an optionee’s employment by the
Corporation and any Subsidiary or (except in the case of an Incentive Stock Option)
Affiliate terminates by reason of death, any Stock Option held by such optionee may
thereafter be exercised, to the extent such option was exercisable at the time of death or
(except in the case of an Incentive Stock Option) on such accelerated basis as the Committee
may determine at or after grant (or except in the case of an Incentive Stock Option, as may
be determined in accordance with procedures established by the Committee) by the legal
representative of the estate or by the legatee of the optionee under the will of the
optionee, for a period of one year (or such other period as the Committee may specify at or
after grant) from the date of such death or until the expiration of the stated term of such
Stock Option, whichever period is the shorter.

     (h)
Termination by Reason of Disability. Subject to Section 5(k), if an optionee’s
employment by the Corporation and any Subsidiary or (except in the case of an Incentive
Stock Option) Affiliate terminates by reason of Disability, any Stock Option held by such
optionee may thereafter be exercised by the optionee, to the extent it was exercisable at
the time of termination or (except in the case of an Incentive Stock Option) on such
accelerated basis as the Committee may determine at or after grant (or, except in the case
of an Incentive Stock Option, as may be determined in accordance with procedures established
by the Committee), for a period of (i) three years (or such other period as the Committee
may specify at or after grant) from the date of such termination of employment or until the
expiration of the stated term of such Stock Option, whichever period is the shorter, in the
case of a Non-Qualified Stock Option and (ii) one year from the date of termination of
employment or until the expiration of the stated term of such Stock Option, whichever period
is shorter, in the case of an Incentive Stock Option; provided however, that, if the
optionee dies within the period specified in (i) above (or other such period as the
committee shall specify at or after grant), any unexercised Non-Qualified Stock Option held
by such optionee shall thereafter be exercisable to the extent to which it was exercisable
at the time of death for a period of twelve months from the date of such death or until the
expiration of the stated term of such Stock Option, whichever period is shorter. In the
event of termination of employment by reason of Disability, if an Incentive Stock Option is
exercised after the expiration of the exercise period applicable to Incentive Stock Options,
but before the expiration of any period that

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would apply if such Stock Option were a Non-Qualified Stock Option, such Stock Option will thereafter be treated as a Non-Qualified
Stock Option.

     (i)
Termination by Reason of Retirement. Subject to Section 5(k), if an optionee’s
employment by the Corporation and any Subsidiary or (except in the case of an Incentive
Stock Option) Affiliate terminates by reason of Normal or Early Retirement, any Stock Option
held by such optionee may thereafter be exercised by the optionee, to the extent it was
exercisable at the time of such Retirement or (except in the case of an Incentive Stock
Option) on such accelerated basis as the Committee may determine at or after grant (or,
except in the case of an Incentive Stock Option, as may be determined in
accordance with procedures established by the Committee), for a period of (i) three years
(or such other period as the Committee may specify at or after grant) from the date of such
termination of employment or the expiration of the stated term of such Stock Option,
whichever period is the shorter, in the case of a Non-Qualified Stock Option and (ii) three
months from the date of such termination of employment or the expiration of the stated term
of such Stock Option, whichever period is the shorter, in the event of an Incentive Stock
Option; provided however, that, if the optionee dies within the period specified in (i)
above (or other such period as the Committee shall specify at or after grant), any
unexercised Non-Qualified Stock Option held by such optionee shall thereafter be exercisable
to the extent to which it was exercisable at the time of death for a period of twelve months
from the date of such death or until the expiration of the stated term of such Stock Option,
whichever period is shorter. In the event of termination of employment by reason of
Retirement, if an Incentive Stock Option is exercised after the expiration of the exercise
period applicable to Incentive Stock Options, but before the expiration of the period that
would apply if such Stock Option were a Non-Qualified Stock Option, the option will
thereafter be treated as a Non-Qualified Stock Option.

     (j)
Other Termination. Subject to Section 5(k), unless otherwise determined by the
Committee (or pursuant to procedures established by the Committee) at or (except in the case
of an Incentive Stock Option) after grant, if an optionee’s employment by the Corporation
and any Subsidiary or (except in the case of an Incentive Stock Option) Affiliate is
involuntarily terminated for any reason other than death, Disability or Normal or Early
Retirement, the Stock Option shall thereupon terminate, except that such Stock Option may be
exercised, to the extent otherwise then exercisable, for the lesser of three months or the
balance of such Stock Option’s term if the involuntary termination is without Cause. For
purposes of this Plan, “Cause” means (i) a felony conviction of a participant or the failure
of a participant to contest prosecution for a felony, or (ii) a participant’s willful
misconduct or dishonesty, which is directly and materially harmful to the business or
reputation of the Corporation or any Subsidiary or Affiliate. If an optionee voluntarily
terminates employment with the Corporation and any Subsidiary or (except in the case of an
Incentive Stock Option) Affiliate (except for Disability, Normal or Early Retirement), the
Stock Option shall thereupon terminate; provided, however, that the Committee at grant or
(except in the case of an Incentive Stock Option) thereafter

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may extend the exercise period
in this situation for the lesser of three months or the balance of such Stock Option’s term.

     (k)
Incentive Stock Options. Anything in the Plan to the contrary notwithstanding, no
term of this Plan relating to Incentive Stock Options shall be interpreted, amended or
altered, nor shall any discretion or authority granted under the Plan be so exercised, so as
to disqualify the Plan under Section 422 of the Code, or, without the consent of the
optionee(s) affected, to disqualify any Incentive Stock Option under such Section 422.

          No Incentive Stock Option shall be granted to any participant under the Plan if such
grant would cause the aggregate Fair Market Value (as of the date the Incentive Stock Option
is granted) of the Stock with respect to which all Incentive Stock Options issued after
December 31, 1986 are exercisable for the first time by such participant during any calendar
year (under all such plans of the Company and any Subsidiary) to exceed $100,000.

          To the extent permitted under Section 422 of the Code or the applicable regulations
thereunder or any applicable Internal Revenue Service pronouncement:

     (i) if (x) a participant’s employment is terminated by reason of death,
Disability or Retirement and (y) the portion of any Incentive Stock Option that is
otherwise exercisable during the post-termination period specified under
Section 5(g), (h) or (i), applied without regard to the $100,000 limitation
contained in Section 422(d) of the Code, is greater than the portion of such Option
that is immediately exercisable as an “Incentive Stock Option” during such
post-termination period under Section 422, such excess shall be treated as a
Non-Qualified Stock Option; and

     (ii) if the exercise of an Incentive Stock Option is accelerated by reason of a
Change in Control, any portion of such Option that is not exercisable as an
Incentive Stock Option by reason of the $100,000 limitation contained in
Section 422(d) of the Code shall be treated as a Non-Qualified Stock Option.

     (l)
Buyout Provisions. The Committee may at any time offer to buy out for a payment in
cash, Stock or Restricted Stock an Option previously granted, based on such terms and
conditions as the Committee shall establish and communicate to the optionee at the time that
such offer is made.

     (m)
Settlement Provisions. If the option agreement so provides at grant or (except in
the case of an Incentive Stock Option) is amended after grant and prior to exercise to so
provide (with the optionee’s consent), the Committee may require that all or part of the shares to be issued with respect to the spread value of an exercised Option

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take the form of Restricted Stock, which shall be valued on the date of exercise on the basis of the Fair
Market Value (as determined by the Committee) of such Restricted Stock determined without
regards to the forfeiture restrictions involved.

     (n)
Performance and Other Conditions. The Committee may condition the exercise of any
Option upon the attainment of specified performance goals or other factors as the Committee
may determine, in its sole discretion. Unless specifically provided in the option
agreement, any such conditional Option shall vest immediately prior to its expiration if the
conditions to exercise have not theretofore been satisfied. The shares of Common Stock
acquired pursuant to any conditional Option shall not be transferable by an Optionee subject to Section 16(a) of the Exchange Act within six months
of the date such Option first becomes exercisable.

     SECTION 6. Stock Appreciation Rights.

     (a) Grant
and Exercise. Stock Appreciation Rights may be granted in conjunction with all or
part of any Stock Option granted under the Plan. In the case of a Non-Qualified Stock Option, such
rights may be granted either at or after the time of the grant of such Stock Option. In the case
of an Incentive Stock Option, such rights may be granted only at the time of the grant of such
Stock Option.

     A Stock Appreciation Right or applicable portion thereof granted with respect to a given Stock
Option shall terminate and no longer be exercisable upon the termination or exercise of the related
Stock Option, subject to such provisions as the Committee may specify at grant where a Stock
Appreciation Right is granted with respect to less than the full number of shares covered by a
related Stock Option.

     A Stock Appreciation Right may be exercised by an optionee, subject to Section 6(b), in
accordance with the procedures established by the Committee for such purpose. Upon such exercise,
the optionee shall be entitled to receive an amount determined in the manner prescribed in Section
6(b). Stock Options relating to exercised Stock Appreciation Rights shall no longer be exercisable
to the extent that the related Stock Appreciation Rights have been exercised.

     (b) Terms
and Conditions. Stock Appreciation Rights shall be subject to such terms and
conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to
time by the Committee, including the following:

     (i) Stock Appreciation Rights shall be exercisable only at such time or times and to
the extent that the Stock Options to which they relate shall be exercisable in accordance
with the provisions of Section 5 and this Section 6 of the Plan; provided, however, that any
Stock Appreciation Right granted to an optionee subject to Section 16(a) of the Exchange Act
subsequent to the grant of the related Stock Option shall not be exercisable during the
first six months of its term. The exercise of Stock

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Appreciation Rights held by optionees who are subject to Section 16(a) of the Exchange Act shall comply with Rule 16b-3(e)
thereunder, to the extent applicable. In particular, such Stock Appreciation Rights shall
be exercisable only pursuant to an irrevocable election made at least six months prior to
the date of exercise or within the applicable ten business day “window” periods specified in
Rule 16b-3(e)(3).

     (ii) Upon the exercise of a Stock Appreciation Right, an optionee shall be entitled to
receive an amount in cash and/or shares of Stock equal in value to the excess of the Fair
Market Value of one share of Stock over the option price per share specified in the related
Stock Option multiplied by the number of shares in respect of which the Stock
Appreciation Right shall have been exercised, with the Committee having the right to
determine the form of payment. When payment is to be made in shares, the number of shares
to be paid shall be calculated on the basis of the Fair Market Value of the shares on the
date of exercise. When payment is to be made in cash, such amount shall be calculated on
the basis of the average of the highest and lowest quoted selling price, regular way, of the
Stock on the New York Stock Exchange or such other exchange or market as is the principal
trading market for the Stock, or, if no such sale of Stock is reported on such date, the
fair market value of the Stock as determined by the Committee in good faith.

     (iii) Stock Appreciation Rights shall be transferable only when and to the extent that
the underlying Stock Option would be transferable under Section 5(e) of the Plan.

     (iv) Upon the exercise of a Stock Appreciation Right, the Stock Option or part thereof
to which such Stock Appreciation Right is related shall be deemed to have been exercised for
the purpose of the limitation set forth in Section 3 of the Plan on the number of shares of
Stock to be issued under the Plan.

     (v) The Committee, in its sole discretion, may also provide that, in the event of a
Change in Control and/or a Potential Change in Control, the amount to be paid upon the
exercise of a Stock Appreciation Right shall be based on the Change in Control Price,
subject to such terms and conditions as the Committee may specify at grant.

     (vi) The Committee may condition the exercise of any Stock Appreciation Right upon the
attainment of specified performance goals or other factors as the Committee may determine,
in its sole discretion. Unless specifically provided in the applicable award agreement, any
such conditional Stock Appreciation Right held by a grantee subject to Section 16(a) of the
Exchange Act shall not be exercisable until the expiration of six months following the
satisfaction of the condition giving rise to such Stock Appreciation Right.

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SECTION 7. Restricted Stock.

     (a) Administration. Shares of Restricted Stock may be issued either alone, in addition to or
in tandem with other awards granted under the Plan and/or cash awards made outside the Plan. The
Committee shall determine the eligible persons to whom, and the time or times at which, grants of
Restricted Stock will be made, the number of shares of Restricted Stock to be awarded to any
person, the price (if any) to be paid by the recipient of Restricted Stock (subject to
Section 7(b)), the time or times within which such awards may be subject to forfeiture, and the
other terms, restrictions and conditions of the awards in addition to those set forth in Section
7(c).

     The Committee may condition the grant of Restricted Stock upon the attainment of specified
performance goals or such other factors as the Committee may determine, in its sole discretion.

     The provisions of Restricted Stock awards need not be the same with respect to each recipient.

     (b) Awards and Certificates. The prospective recipient of a Restricted Stock award shall not
have any rights with respect to such award, unless and until such recipient has executed an
agreement evidencing the award and has delivered a fully executed copy thereof to the Corporation,
and has otherwise complied with the applicable terms and conditions of such award.

     (i) The purchase price for shares of Restricted Stock shall be established by the
Committee and may be zero.

     (ii) Awards of Restricted Stock must be accepted within a period of 60 days (or such
shorter period as the Committee may specify at grant) after the award date, by executing a
Restricted Stock Award Agreement and paying whatever price (if any) is required under
Section 7(b)(i).

     (iii) Each participant receiving a Restricted Stock award shall be issued a stock
certificate in respect of such shares of Restricted Stock. Such certificate shall be
registered in the name of such participant, and shall bear an appropriate legend referring
to the terms, conditions, and restrictions applicable to such award.

     (iv) The Committee shall require that the stock certificates evidencing such shares be
held in custody by the Corporation until the restrictions thereon shall have lapsed, and
that, as a condition of any Restricted Stock award, the participant shall have delivered a
stock power, endorsed in blank, relating to the Stock covered by such award.

     (c) Restrictions and Conditions. The shares of Restricted Stock awarded pursuant to this
Section 7 shall be subject to the following restrictions and conditions:

 - 13 -

 

     (i) In accordance with the provisions of this Plan and the award agreement, during a
period set by the Committee commencing with the date of such award (the “Restriction
Period”), the participant shall not be permitted to sell, transfer, pledge, assign or
otherwise encumber shares of Restricted Stock awarded under the Plan. Within these limits,
the Committee, in its sole discretion, may provide for the lapse of such restrictions in
installments and may accelerate or waive such restrictions in whole or in part, based on
service, performance and/or such other factors or criteria as the Committee may determine,
in its sole discretion.

     (ii) Except as provided in this paragraph (ii) and Section 7(c)(i), the participant
shall have, with respect to the shares of Restricted Stock, all of the rights of a
stockholder of the Corporation, including the right to vote the shares, and the right to
receive any cash dividends. The Committee, in its sole discretion, as determined at the
time of award, may permit or require the payment of cash dividends to be deferred and, if
the Committee so determines, reinvested, subject to Section 14(e), in additional Restricted
Stock to the extent shares are available under Section 3, or otherwise reinvested. Pursuant
to Section 3 above, Stock dividends issued with respect to Restricted Stock shall be treated
as additional shares of Restricted Stock that are subject to the same restrictions and other
terms and conditions that apply to the shares with respect to which such dividends are
issued. If the Committee so determines, the award agreement may also impose restrictions on
the right to vote and the right to receive dividends.

     (iii) Subject to the applicable provisions of the award agreement and this Section 7,
upon termination of a participant’s employment with the Corporation and any Subsidiary or
Affiliate for any reason during the Restriction Period, all shares still subject to
restriction will vest, or be forfeited, in accordance with the terms and conditions
established by the Committee at or after grant.

     (iv) If and when the Restriction Period expires without a prior forfeiture of the
Restricted Stock subject to such Restriction Period, certificates for an appropriate number
of unrestricted shares shall be delivered to the participant promptly.

     (d) Minimum Value Provisions. In order to better ensure that award payments actually reflect
the performance of the Corporation and service of the participant, the Committee may provide, in
its sole discretion, for a tandem performance-based or other award designed to guarantee a minimum
value, payable in cash or Stock to the recipient of a restricted stock award, subject to such
performance, future service, deferral and other terms and conditions as may be specified by the
Committee.

 - 14 -

 

SECTION 8. Other Stock-Based Awards.

     (a) Administration. Other Stock-Based Awards, including, without limitation, performance
shares, convertible preferred stock, convertible debentures, exchangeable securities and Stock
awards or options valued by reference to earnings per share or Subsidiary performance, may be
granted either alone or in addition to or in tandem with Stock Options, Stock Appreciation Rights
or Restricted Stock granted under the Plan and/or cash awards made outside of the Plan; provided
that no such Other Stock-Based Awards may be granted in tandem with Incentive Stock Options if that
would cause such Stock Options not to qualify as Incentive Stock Options pursuant to Section 422 of
the Code.

     Subject to the provisions of the Plan, the Committee shall have authority to determine the
persons to whom and the time or times at which such awards shall be made, the number of shares of
Stock to be awarded pursuant to such awards, and all other conditions of the awards. The Committee
may also provide for the grant of Stock upon the completion of a specified performance period.

     The provisions of Other Stock-Based Awards need not be the same with respect to each
recipient.

     (b) Terms and Conditions. Other Stock-Based Awards made pursuant to this Section 8 shall be
subject to the following terms and conditions:

          (i) Shares subject to awards under this Section 8 and the award agreement referred to
in Section 8(b)(v) below, may not be sold, assigned, transferred, pledged or otherwise
encumbered prior to the date on which the shares are issued, or, if later, the date on which
any applicable restriction, performance or deferral period lapses.

          (ii) Subject to the provisions of this Plan and the award agreement and unless
otherwise determined by the Committee at grant, the recipient of an award under this Section
8 shall be entitled to receive, currently or on a deferred basis, interest or dividends or
interest or dividend equivalents with respect to the number of shares covered by the award,
as determined at the time of the award by the Committee, in its sole discretion, and the
Committee may provide that such amounts (if any) shall be deemed to have been reinvested in
additional Stock or otherwise reinvested.

          (iii) Any award under Section 8 and any Stock covered by any such award shall vest or
be forfeited to the extent so provided in the award agreement, as determined by the
Committee, in its sole discretion.

          (iv) In the event of the participant’s Retirement, Disability or death, or in cases of
special circumstances, the Committee may, in its sole discretion, waive in whole or in part
any or all of the remaining limitations imposed hereunder (if any) with respect to any or
all of an award under this Section 8.

 - 15 -

 

          (v) Each award under this Section 8 shall be confirmed by, and subject to the terms of,
an agreement or other instrument by the Corporation and the participant.

          (vi) Stock (including securities convertible into Stock) issued on a bonus basis under
this Section 8 may be issued for no cash consideration. Stock (including securities
convertible into Stock) purchased pursuant to a purchase right awarded under this Section 8
shall be priced at least 85% of the Fair Market Value of the Stock on the date of grant.

SECTION 9. Awards to Outside Directors.

     (a) The provisions of this Section 9 shall apply only to awards to Outside Directors in
accordance with this Section 9. The Committee shall have no authority to determine the timing,
terms or conditions of any award under this Section 9.

     (b) On the date of the Annual Meeting of Shareholders at which an Outside Director is elected
as an Outside Director for the first time, such Outside Director will receive and on the date of
the 1997 Annual Meeting of Shareholders, each Outside Director will receive an automatic grant of
restricted stock (together with the shares of restricted stock granted pursuant to Section 9(c),
“Outside Directors Restricted Stock”) pursuant to this Section 9 in a number of shares of stock
which will be determined by dividing:

     (i) $15,000 by

     (ii) the average of the daily closing prices of the Stock for the first five (5)
trading days of the month in which the Annual Meeting is held (as reported in The Wall
Street Journal), rounding up or down any fractional share of Stock to the nearest whole
share (the “Outside Director Restricted Stock Value Denominator”).

     (c) On the date of each Annual Meeting of Shareholders beginning in 2003, each Outside
Director will receive an automatic grant of restricted stock (together with the shares of
restricted stock granted pursuant to Section 9(b), “Outside Director Restricted Stock”) in a number
of shares of stock which will be determined by dividing $44,000 by the Outside Director Restricted
Stock Value Denominator.

     (d) The Outside Director Restricted Stock shall vest as follows:

     (i) At the first Annual Meeting of Shareholders following the Annual Meeting at which
the Outside Director Restricted Stock was granted, if the grantee is still serving as a
director of the Corporation, the Outside Director Restricted Stock shall vest with respect
to one-third of the shares of the Outside Director Restricted Stock;

     (ii) At the second Annual Meeting of Shareholders following the Annual Meeting at which
the Outside Director Restricted Stock was granted, if the director is still

 - 16 -

 

serving as a
director of the Corporation, the Outside Director Restricted Stock shall vest with respect
to one-half of the remaining shares of the Outside Director Restricted Stock; and

     (iii) At the third Annual Meeting of Shareholders following the Annual Meeting at which
the Outside Director Restricted Stock was granted, if the director is still serving as a
director of the Corporation, the Outside Director Restricted Stock shall vest with respect
to the remaining shares of Outside Director Restricted Stock.

     (e) By written notice to the Secretary of the Corporation given at least six months prior to
the end of a fiscal year, an Outside Director may elect irrevocably to receive all or a specified
portion of his annual retainers for board membership and any committee chairmanship for the
following fiscal year in a number of shares of restricted stock (the “Retainer Stock”) determined
by dividing the total amount of retainer specified in the election by 75% of the average of the
daily closing prices of the Stock on the New York Stock Exchange (as reported in The Wall
Street Journal) for the last five trading days of the fiscal year in which the election was
made. Shares of the Retainer Stock shall be granted as of the first business day of the fiscal
year as to which the election is effective, subject to forfeiture to the extent not earned upon the
Outside Director’s ceasing to serve as a director or committee chairman during such fiscal year.

     (f) Until the earlier of (i) five years from the date of grant and (ii) the date on which the
Outside Director ceases to serve as a director of the Corporation (the “Outside Director Period of
Restriction”), no Outside Director Restricted Stock or Retainer Stock may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, otherwise than by will or by the laws of
descent and distribution.

          Each certificate representing Outside Director Restricted Stock and Retainer Stock granted
pursuant to this Section 9 shall bear the following legend:

     “The sale or other transfer of the shares represented by this
certificate, whether voluntary, involuntary, or by operation of law,
is subject to certain restrictions on transfer set forth in the
Genesco Inc. 1996 Stock Incentive Plan (the “Plan”), and rules of
administration adopted pursuant to such Plan. A copy of the Plan
and the rules of such Plan may be obtained from the Secretary of
Genesco Inc.”

Once the Outside Director Period of Restriction has lapsed, the grantee shall be entitled to have
the legend required by this Section 9 removed from such stock certificate(s); provided however,
that such certificate shall be subject to any legend required by applicable state or federal law.

 - 17 -

 

     (g) From the date on which the Outside Director Restricted Stock and Retainer Stock is
granted, grantees awarded such Stock may exercise full voting rights with respect to the Outside
Director Restricted Stock and Retainer Stock.

	 	(h)	 	Grantees holding Outside Director Restricted Stock or Retainer Stock that has
vested in accordance with Section 9(c) or (d) hereof shall be entitled to receive all
dividends and other distributions paid with respect to such shares of Stock while they
are so held. If any such dividends, or distributions are paid in Stock, such shares of
Stock shall be subject to the same restrictions on transferability as the shares of
Outside Director Restricted Stock or Retainer Stock with respect to which they were
paid.

     (i) On the date of the Annual Meetings of Shareholders of the Corporation in 2001 and 2002,
each Outside Director received the automatic grant of options (the “Outside Director Stock
Options”) to purchase 4,000 shares of Common Stock at an exercise price equal to the Fair Market
Value of the Common Stock on the date of grant. The Outside Director Stock Options became
exercisable six months after their respective dates of grant, and shall expire at 11:59 p.m.
Nashville, Tennessee, time on the tenth anniversary of their respective dates of grant. They may be
exercised by giving written notice of exercise, accompanied by payment in full of the exercise
price, either by check or by wire transfer of funds. The Outside Director Stock Options shall not
be transferable except by will or by the laws of descent and distribution. In the event of death
of an Outside Director holding Outside Director Stock Options, they may thereafter be exercised, to
the extent they were exercisable at the time of death, by the legal representative of the estate or
by the legatee under the will of the Outside Director, for a period of one year after the date of
death or until their earlier expiration, whichever period is shorter. If an Outside Director
ceases to serve on the Board of Directors for any reason other than death, the Outside Director’s
Outside Director Stock Options may thereafter be exercised, to the extent they were exercisable at
the date on which the holder’s service terminated, for a period of three months after such date or
until their earlier expiration, whichever period is shorter.

     (j) All restrictions imposed on the Outside Director Restricted Stock and Retainer Stock shall
expire automatically upon a Change in Control, but the Outside Director Restricted Stock, the
Retainer Stock and the Outside Director Stock Options shall not otherwise be subject to Section 10
hereof.

     (k) All shares of Outside Director Restricted Stock and Retainer Stock and all Outside
Director Stock Options which have not vested in accordance with Section 9(c), (d) or (h), as
applicable, at the time of a grantee’s resignation, removal or failure to be elected as a member of
the Board of Directors shall be forfeited and such forfeited shares shall again be available for
award hereunder.

     (l) The Board may not amend or alter this Section 9, except as provided in Section 11, without
the approval of the holders of a majority of the issued and outstanding shares

 - 18 -

 

of Common Stock, and
in no event shall this Section 9 be amended more than once every six months, other than to comply
with changes in the Code or the Employee Retirement Income Security Act of 1974, as amended, or the
regulations thereunder.

SECTION 10. Change in Control Provisions.

     (a) Impact of Event. In the event of:

     (1) a “Change in Control” as defined in Section 10(b) or

     (2) a “Potential Change in Control” as defined in Section 10(c), but only if and to the
extent so determined by the Committee or the Board at or after grant (subject to any right
of approval expressly reserved by the Committee or the Board at the time of such
determination),

the following acceleration and valuation provisions shall apply if so determined by the Board in
its sole discretion:

     (i) Any Stock Appreciation Rights (including, without limitation, any Limited Stock
Appreciation Rights) outstanding for at least six months and any Stock Option awarded under
the Plan not previously exercisable and vested shall become fully exercisable and vested.

     (ii) The restrictions applicable to any Restricted Stock and Other Stock-Based Awards,
in each case to the extent not already vested under the Plan, shall lapse and such shares
and awards shall be deemed fully vested.

     (iii) Except as otherwise provided in Section 10(a)(iv) below, the value of all
outstanding Stock Options, Stock Appreciation Rights, Restricted Stock and Other Stock-Based
Awards, in each case to the extent vested, shall, unless otherwise determined by the
Committee in its sole discretion at or (except in the case of an Incentive Stock Option)
after grant but prior to any Change in Control, be cashed out on the basis of the “Change in
Control Price” as defined in Section 10(d) as of the date such Change in Control or such
Potential Change in Control is determined to have occurred or such other date as the
Committee may determine prior to the Change in Control.

     (iv) In the case of any Stock Options, Stock Appreciation Rights, Restricted Stock and
Other Stock-Based Awards held by any person subject to Section 16(a) of the Exchange Act,
the value of all such Stock Options, Stock Appreciation Rights, Restricted Stock or Other
Stock-Based Awards, in each case to the extent that they are vested and have been held for
at least six months, shall (unless otherwise determined by the Committee in its sole
discretion) be cashed out on the basis of the “Change in Control Price” as defined in
Section 10(d) as of the date of such Change in Control or such

 - 19 -

 

Potential Change in Control
is determined to have occurred, but only if the Change in Control or Potential Change in
Control is outside the control of the grantee for purposes of Rule 16b-3(e)(3) under the
Exchange Act, or any successor provision promulgated by the Securities and Exchange
Commission.

     (b) Definition of Change in Control. For purposes of Section 10(a), a “Change in Control”
means the happening of any of the following:

     (i) any person or entity, including a “group” as defined in Section 13(d)(3) of the
Exchange Act, other than the Corporation or a wholly-owned subsidiary thereof or
any employee benefit plan of the Corporation or any of its Subsidiaries, becomes the
beneficial owner of the Corporation’s securities having 15% or more of the combined voting
power of the then outstanding securities of the Corporation that may be cast for the
election of directors of the Corporation (other than as a result of an issuance of
securities initiated by the Corporation in the ordinary course of business); or

     (ii) as the result of, or in connection with, any cash tender or exchange offer, merger
or other business combination, sales of assets or contested election, or any combination of
the foregoing transactions, less than a majority of the combined voting power of the then
outstanding securities of the Corporation or any successor corporation or entity entitled to
vote generally in the election of the directors of the Corporation or such other corporation
or entity after such transaction are held in the aggregate by the holders of the
Corporation’s securities entitled to vote generally in the election of directors of the
Corporation immediately prior to such transaction; or

     (iii) during any period of two consecutive years, individuals who at the beginning of
any such period constitute the Board cease for any reason to constitute at least a majority
thereof, unless the election, or the nomination for election by the Corporation’s
stockholders, of each director of the Corporation first elected during such period was
approved by a vote of at least two-thirds of the directors of the Corporation then still in
office who were directors of the Corporation at the beginning of any such period.

     (c) Definition of Potential Change in Control. For purposes of Section 10(a), a “Potential
Change in Control” means the happening of any one of the following:

     (i) The approval by stockholders of an agreement by the Corporation, the consummation
of which would result in a Change in Control of the Corporation as defined in Section 10(b);
or

     (ii) The acquisition of beneficial ownership, directly or indirectly, by any entity,
person or group (other than the Corporation or a Subsidiary or any Corporation employee
benefit plan (including any trustee of such plan acting as such trustee)) of

 - 20 -

 

securities of
the Corporation representing 5% or more of the combined voting power of the Corporation’s
outstanding securities and the adoption by the Committee of a resolution to the effect that
a Potential Change in Control of the Corporation has occurred for purposes of this Plan.

     (d) Change in Control Price. For purposes of this Section 10, “Change in Control Price” means
the highest price per share paid in any transaction reported on the New York Stock Exchange or such
other exchange or market as is the principal trading market for the Stock, or paid or offered in
any bona fide transaction related to a Potential or actual Change in Control of the Corporation at
any time during the 60 day period immediately preceding the occurrence of
the Change in Control (or, where applicable, the occurrence of the Potential Change in Control
event), in each case as determined by the Committee except that, in the case of Incentive Stock
Options and Stock Appreciation Rights relating to Incentive Stock Options, such price shall be
based only on transactions reported for the date on which the optionee exercises such Stock
Appreciation Rights or, where applicable, the date on which a cash out occurs under Section
10(a)(iii).

SECTION 11. Amendments and Termination.

     The Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or
discontinuation shall be made which would impair the rights of an optionee or participant under a
Stock Option, Stock Appreciation Right, Restricted Stock, Other Stock-Based Award or Outside
Director Restricted Stock theretofore granted, without the optionee’s or participant’s consent or
which, without the approval of the Corporation’s stockholders, would:

     (a) except as expressly provided in this Plan, increase the total number of shares
reserved for the purpose of the Plan;

     (b) materially increase the benefits accruing to participants under the Plan; or

     (c) materially modify the requirements as to eligibility for participation in the Plan.

     The Committee may amend the terms of any Stock Option or other award theretofore granted,
prospectively or retroactively, but, subject to Section 3 above, no such amendment shall impair the
rights of any holder without the holder’s consent. The Committee may also substitute new Stock
Options for previously granted Stock Options (on a one for one or other basis), including
previously granted Stock Options having higher option exercise prices.

     Subject to the above provisions, the Board shall have broad authority to amend the Plan to
take into account changes in applicable securities and tax laws and accounting rules, as well as
other developments.

 - 21 -

 

SECTION 12. Unfunded Status of Plan.

     The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments not yet made to a participant or optionee by the Corporation, nothing
contained herein shall give any such participant or optionee any rights that are greater than those
of a general creditor of the Corporation. In its sole discretion, the Committee may authorize the
creation of trusts or other arrangements to meet the obligations created under the Plan to deliver
Stock or payments in lieu of or with respect to awards hereunder; provided, however, that, unless
the Committee otherwise determines with the consent of the affected participant, the existence of
such trusts or other arrangements is consistent with the “unfunded” status of the Plan.

SECTION 13. General Provisions.

     (a) The Committee may require each person purchasing shares pursuant to a Stock Option or
other award under the Plan to represent to and agree with the Corporation in writing that the
optionee or participant is acquiring the shares without a view to distribution thereof. The
certificates for such shares may include any legend which the Committee deems appropriate to
reflect any restrictions on transfer.

     All certificates for shares of Stock or other securities delivered under the Plan shall be
subject to such stock-transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations, and other requirements of the Securities and Exchange Commission, any
stock exchange upon which the Stock is then listed, and any applicable Federal or state securities
law, and the Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions.

     (b) Nothing contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to stockholder approval if such approval is required; and such
arrangements may be either generally applicable or applicable only in specific cases.

     (c) The adoption of the Plan shall not confer upon any employee of the Corporation or any
Subsidiary or Affiliate any right to continued employment with the Corporation or a Subsidiary or
Affiliate, as the case may be, nor shall it interfere in any way with the right of the Corporation
or a Subsidiary or Affiliate to terminate the employment of any of its employees at any time.

     (d) No later than the date as of which an amount first becomes includible in the gross income
of the participant for Federal income tax purposes with respect to any award under the Plan, the
participant shall pay to the Corporation, or make arrangements satisfactory to the Committee
regarding the payment of, any Federal, state, or local taxes of any kind required by law to be
withheld with respect to such amount. The Committee may require withholding

 - 22 -

 

obligations to be settled with Stock, including Stock that is part of the award that gives rise to
the withholding requirement. The obligations of the Corporation under the Plan shall be
conditional on such payment or arrangements and the Corporation and its Subsidiaries or Affiliates
shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the participant.

     (e) The actual or deemed reinvestment of dividends or dividend equivalents in additional
Restricted Stock (or other types of Plan awards) at the time of any dividend payment shall only be
permissible if sufficient shares of Stock are available under Section 3 for such reinvestment
(taking into account then outstanding Stock Options and other Plan awards).

     (f) The Plan and all awards made and actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Tennessee.

     (g) The members of the Committee and the Board shall not be liable to any employee or other
person with respect to any determination made hereunder in a manner that is not inconsistent with
their legal obligations as members of the Board. In addition to such other rights of
indemnification as they may have as directors or as members of the Committee, the members of the
Committee shall be indemnified by the Corporation against the reasonable expenses, including
attorneys’ fees actually and necessarily incurred in connection with the defense of any action,
suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a
party by reason of any action taken or failure to act under or in connection with the Plan or any
option granted thereunder, and against all amounts paid by them in settlement thereof (provided
such settlement is approved by independent legal counsel selected by the Corporation) or paid by
them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to
matters as to which it shall be adjudged in such action, suit or proceeding that such Committee
member is liable for negligence or misconduct in the performance of his duties; provided that
within 60 days after institution of any such action, suit or proceeding, the Committee member shall
in writing offer the Corporation the opportunity, at its own expense, to handle and defend the
same.

     (h) In addition to any other restrictions on transfer that may be applicable under the terms
of this Plan or the applicable award agreement, no Option, Stock Appreciation Right, Restricted
Stock award, or Other Stock-Based Award or other right issued under this Plan is transferable by
the participant other than by will or the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined under the Code or Title I of the Employee Retirement
Income Security Act of 1974, as amended. The designation of a beneficiary will not constitute a
transfer.

 - 23 -

 

SECTION 14. Effective Date of Plan.

     The Plan shall be effective as of the date of approval of the Plan by a majority of the votes
cast on the question of the Plan’s approval by the holders of the Corporation’s Stock.

SECTION 15. Term of Plan.

     No Stock Option, Stock Appreciation Right, Restricted Stock award, Other Stock-Based Award or
Outside Director Restricted Stock award shall be granted pursuant to the Plan on or after the tenth
anniversary of the date of adoption by the Plan by the Board, but awards granted prior to such
tenth anniversary may be extended beyond that date.

 - 24 -EX-10.D Equity Incentive Plan

 

Exhibit (10)d.

GENESCO INC.

2005 EQUITY INCENTIVE PLAN

Amended and Restated

as of October 24, 2007

 

 

GENESCO INC.

2005 EQUITY INCENTIVE PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section 1.	 	Purpose 
	 	 	1	 
	Section 2.	 	Definitions 
	 	 	1	 
	Section 3.	 	Administration 
	 	 	5	 
	Section 4.	 	Shares Available for Awards 
	 	 	7	 
	Section 5.	 	Eligibility 
	 	 	8	 
	Section 6.	 	Stock Options and Stock Appreciation Rights 
	 	 	8	 
	Section 7.	 	Restricted Shares and Restricted Share Units 
	 	 	10	 
	Section 8.	 	Performance Awards 
	 	 	12	 
	Section 9.	 	Other Stock-Based Awards 
	 	 	13	 
	Section 10.	 	Non-Employee Director and Outside Director Awards 
	 	 	13	 
	Section 11.	 	Provisions Applicable to Covered Officers and Performance Awards 
	 	 	13	 
	Section 12.	 	Termination of Employment 
	 	 	15	 
	Section 13.	 	Change in Control and Potential Change in Control 
	 	 	15	 
	Section 14.	 	Amendment and Termination 
	 	 	15	 
	Section 15.	 	General Provisions 
	 	 	16	 
	Section 16.	 	Term of the Plan 
	 	 	19	 

 

 

GENESCO INC.

2005 EQUITY INCENTIVE PLAN

AMENDED AND RESTATED

As of October 24, 2007

Section 1. Purpose

     This plan shall be known as the “Genesco Inc. 2005 Equity Incentive Plan” (the “Plan”). The
purpose of the Plan is to promote the interests of Genesco Inc., a Tennessee corporation (the
“Company”), and its shareholders by (i) attracting and retaining key officers, employees, and
directors of, and consultants to, the Company and its Subsidiaries and Affiliates; (ii) motivating
such individuals by means of performance-related incentives to achieve long-range performance
goals, (iii) enabling such individuals to participate in the long-term growth and financial success
of the Company, (iv) encouraging ownership of stock in the Company by such individuals, and
(v) linking their compensation to the long-term interests of the Company and its shareholders. With
respect to any awards granted under the Plan that are intended to comply with the requirements of
“performance-based compensation” under Section 162(m) of the Internal Revenue Code, the Plan shall
be interpreted in a manner consistent with such requirements.

Section 2. Definitions

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled
by the Company, (ii) any entity in which the Company has a significant equity interest,
(iii) an affiliate of the Company, as defined in Rule 12b-2 promulgated under Section 12 of
the Exchange Act, and (iv) any entity in which the Company has at least twenty percent (20%)
of the combined voting power of the entity’s outstanding voting securities, in each case as
designated by the Board as being a participating employer in the Plan.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Share Award,
Restricted Share Unit, Performance Award, Other Stock-Based Award or other award granted
under the Plan, whether singly, in combination, or in tandem, to a Participant by the
Committee (or the Board) pursuant to such terms, conditions, restrictions and/or
limitations, if any, as the Committee (or the Board) may establish.

     (c) “Award Agreement” shall mean any written agreement, contract, or other instrument
or document evidencing any Award, which may, but need not, be executed or acknowledged by a
Participant.

     (d) “Board” shall mean the board of directors of the Company.

 

 

     (e) “Cause” shall mean, unless otherwise defined in the applicable Award Agreement,
(i) a felony conviction of the Participant or the failure of the Participant to contest
prosecution for a felony, or (ii) a Participant’s willful misconduct or dishonesty, which is
directly and materially harmful to the business or reputation of the Company or any
Subsidiary or Affiliate. For purposes of this paragraph, no act, or failure to act, on the
Participant’s part shall be considered “willful” unless done, or omitted to be done, by the
Participant not in good faith and without reasonable belief that the Participant’s action or
omission was in the best interest of the Company. Any determination of Cause for purposes of
the Plan or any Award shall be made by the Committee in its sole discretion. Any such
determination shall be final and binding on a Participant.

     (f) “Change in Control” shall mean, unless otherwise defined in the applicable Award
Agreement, any of the following events:

     (i) Any Person, including a “group” as defined in Section 13(d)(3) of the
Exchange Act, other than the Company or a wholly-owned Subsidiary thereof or any
employee benefit plan of the Company or any of its Subsidiaries, becomes the
beneficial owner of the Company’s securities having twenty-five percent (25%) or more
of the combined voting power of the then outstanding securities of the Company that
may be cast for the election of directors of the Company (other than as a result of
an issuance of securities initiated by the Company in the ordinary course of
business); or

     (ii) As the result of, or in connection with, any cash tender or exchange offer,
merger or other business combination, sales of assets or contested election, or any
combination of the foregoing transactions, less than a majority of the combined
voting power of the then outstanding securities of the Company or any successor
corporation or Person entitled to vote generally in the election of the directors of
the Company or such other corporation or Person after such transaction are held in
the aggregate by the holders of the Company’s securities entitled to vote generally
in the election of directors of the Company immediately prior to such transaction; or

     (iii) During any period of two consecutive years, individuals who at the
beginning of any such period constitute the Board cease for any reason to constitute
at least a majority thereof, unless the election, or the nomination for election by
the Company’s shareholders, of each director of the Company first elected during such
period was approved by a vote of at least two-thirds (2/3) of the directors of the
Company.

     (g) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     (h) “Committee” shall mean a committee of the Board composed of not less than two
Non-Employee Directors, each of whom shall be a “Non-Employee Director” for purposes of
Section 16 of the Exchange Act and Rule 16b-3 promulgated thereunder and an “outside
director” for purposes of Section 162(m).

2

 

     (i) “Consultant” shall mean any consultant to the Company or its Subsidiaries or
Affiliates.

     (j) “Covered Officer” shall mean at any date (i) any individual who, with respect to
the previous taxable year of the Company, was a “covered employee” of the Company within the
meaning of Section 162(m); provided, however, that the term “Covered Officer” shall not
include any such individual who is designated by the Committee, in its discretion, at the
time of any Award or at any subsequent time, as reasonably expected not to be such a
“covered employee” with respect to the current taxable year of the Company and (ii) any
individual who is designated by the Committee, in its discretion, at the time of any Award
or at any subsequent time, as reasonably expected to be such a “covered employee” with
respect to the current taxable year of the Company or with respect to the taxable year of
the Company in which any applicable Award will be paid or vested.

     (k) “Director” shall mean a member of the Board.

     (l) “Disability” shall mean, unless otherwise defined in the applicable Award
Agreement, a disability that would qualify as a total and permanent disability under the
Company’s then current long-term disability plan.

     (m) “Early Retirement” shall mean, unless otherwise defined in the applicable Award
Agreement, retirement of a Participant from the employ or service of the Company or any of
its Subsidiaries or Affiliates prior to age 65, with the express consent of the Company and,
in accordance with any applicable early retirement policy of the Company then in effect or
as may be approved by the Committee.

     (n) “Employee” shall mean a current or prospective officer or employee of the Company
or of any Subsidiary or Affiliate.

     (o) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time
to time.

     (p) “Fair Market Value” with respect to the Shares, shall mean, for purposes of a grant
of an Award as of any date, (i) the closing sales price of the Shares on the New York Stock
Exchange, or any other such exchange on which the shares are traded, on such date, or in the
absence of reported sales on such date, the closing sales price on the immediately preceding
date on which sales were reported or (ii) in the event there is no public market for the
Shares on such date, the fair market value as determined, in good faith, by the Committee in
its sole discretion, and for purposes of a sale of a Share as of any date, the actual sales
price on that date.

     (q) “Incentive Stock Option” shall mean an option to purchase Shares from the Company
that is granted under Section 6 of the Plan and that is intended to meet the requirements of
Section 422 of the Code or any successor provision thereto.

3

 

     (r) “Non-Qualified Stock Option” shall mean an option to purchase Shares from the
Company that is granted under Sections 6 or 10 of the Plan and is not intended to be an
Incentive Stock Option.

     (s) “Non-Employee Director” shall mean a member of the Board who is not an officer or
employee of the Company or any Subsidiary or Affiliate.

     (t) “Normal Retirement” shall mean, unless otherwise defined in the applicable Award
Agreement, retirement of a Participant from the employ or service of the Company or any of
its Subsidiaries or Affiliates on or after age 65.

     (u) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (v) “Option Price” shall mean the purchase price payable to purchase one Share upon the
exercise of an Option.

     (w) “Other Stock-Based Award” shall mean any Award granted under Sections 9 or 10 of
the Plan.

     (x) “Outside Director” means, with respect to the grant of an Award, a member of the
Board then serving on the Committee.

     (y) “Participant” shall mean any Employee, Director, Consultant or other person who
receives an Award under the Plan.

     (z) “Performance Award” shall mean any Award granted under Section 8 of the Plan.

     (aa) “Person” shall mean any individual, corporation, partnership, limited liability
company, associate, joint-stock company, trust, unincorporated organization, government or
political subdivision thereof or other entity.

     (bb) “Potential Change in Control” shall mean, unless otherwise defined in the
applicable Award Agreement, either of the following events:

     (i) The approval by shareholders of an agreement by the Company, the
consummation of which would result in a Change in Control of the Company; or

     (ii) The acquisition of beneficial ownership, directly or indirectly, by any
Person or group (other than the Company or a Subsidiary or any Company employee
benefit plan (including any trustee of such plan acting as such trustee)) of
securities of the Company representing five percent (5%) or more of the combined
voting power of the Company’s outstanding securities and the adoption by the
Committee of

4

 

a resolution to the effect that a Potential Change in Control of the Company has
occurred for purposes of this Plan.

     (cc) “Restricted Share” shall mean any Share granted under Sections 7 or 10 of the
Plan.

     (dd) “Restricted Share Unit” shall mean any unit granted under Sections 7 or 10 of the
Plan.

     (ee) “Retirement” shall mean, unless otherwise defined in the applicable Award
Agreement, Normal or Early Retirement.

     (ff) “SEC” shall mean the Securities and Exchange Commission or any successor thereto.

     (gg) “Section 16” shall mean Section 16 of the Exchange Act and the rules promulgated
thereunder and any successor provision thereto as in effect from time to time.

     (hh) “Section 162(m)” shall mean Section 162(m) of the Code and the regulations
promulgated thereunder and any successor or provision thereto as in effect from time to
time.

     (ii) “Shares” shall mean shares of the common stock, $1.00 par value, of the Company.

     (jj) “Stock Appreciation Right” or “SAR” shall mean a stock appreciation right granted
under Sections 6 or 10 of the Plan that entitles the holder to receive, with respect to each
Share encompassed by the exercise of such SAR, the amount determined by the Committee and
specified in an Award Agreement. In the absence of such a determination, the holder shall be
entitled to receive, with respect to each Share encompassed by the exercise of such SAR, the
excess of the Fair Market Value on the date of exercise over the Fair Market Value on the
date of grant.

     (kk) “Subsidiary” shall mean any Person (other than the Company) of which a majority of
its voting power or its equity securities or equity interest is owned directly or indirectly
by the Company.

     (ll) “Substitute Awards” shall mean Awards granted solely in assumption of, or in
substitution for, outstanding awards previously granted by a company acquired by the Company
or with which the Company combines.

     (mm) “Tandem SAR” shall mean an SAR that is granted under Sections 6 or 10 of the Plan
in relation to a particular Option and that can be exercised only upon the surrender to the
Company, unexercised, of that portion of the Option to which the SAR relates.

5

 

Section 3. Administration

     3.1 Authority of Committee. The Plan shall be administered by the Committee, which shall be
appointed by and serve at the pleasure of the Board; provided, however, with respect to Awards to
Outside Directors, all references in the Plan to the Committee shall be deemed to be references to
the Board. Subject to the terms of the Plan and applicable law, and in addition to other express
powers and authorizations conferred on the Committee by the Plan, the Committee shall have full
power and authority in its discretion to: (i) designate Participants; (ii) determine the type or
types of Awards to be granted to a Participant; (iii) determine the number of Shares to be covered
by, or with respect to which payments, rights, or other matters are to be calculated in connection
with Awards; (iv) determine the timing, terms, and conditions of any Award; (v) accelerate the time
at which all or any part of an Award may be settled or exercised; (vi) determine whether, to what
extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other
securities, other Awards or other property, or canceled, forfeited, or suspended and the method or
methods by which Awards may be settled, exercised, canceled, forfeited, or suspended;
(vii) determine whether, to what extent, and under what circumstances cash, Shares, other
securities, other Awards, other property, and other amounts payable with respect to an Award shall
be deferred either automatically or at the election of the holder thereof or of the Committee;
(viii) interpret and administer the Plan and any instrument or agreement relating to, or Award made
under, the Plan; (ix) except to the extent prohibited by Section 6.2, amend or modify the terms of
any Award at or after grant with the consent of the holder of the Award; (x) establish, amend,
suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate
for the proper administration of the Plan; and (xi) make any other determination and take any other
action that the Committee deems necessary or desirable for the administration of the Plan, subject
to the exclusive authority of the Board under Section 14 hereunder to amend or terminate the Plan.

     3.2 Committee Discretion Binding. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive, and binding upon all Persons, including the Company, any Subsidiary or
Affiliate, any Participant and any holder or beneficiary of any Award.

     3.3 Action by the Committee. The Committee shall select one of its members as its Chairperson
and shall hold its meetings at such times and places and in such manner as it may determine. A
majority of its members shall constitute a quorum. All determinations of the Committee shall be
made by not less than a majority of its members. Any decision or determination reduced to writing
and signed by all of the members of the Committee shall be fully effective as if it had been made
by a majority vote at a meeting duly called and held. The exercise of an Option or receipt of an
Award shall be effective only if an Award Agreement shall have been duly executed and delivered on
behalf of the Company following the grant of the Option or other Award. The Committee may appoint a
Secretary and may make such rules and regulations for the conduct of its business as it shall deem
advisable.

     3.4 Delegation. Subject to the terms of the Plan and applicable law, the Committee may
delegate to one or more officers or managers of the Company or of any Subsidiary or Affiliate, or
to a committee of such officers or managers, the authority, subject to such terms and limitations
as the

6

 

Committee shall determine, to grant Awards to, or to cancel, modify or waive rights with respect
to, or to alter, discontinue, suspend, or terminate Awards held by Participants who are not
officers or directors of the Company for purposes of Section 16 or who are otherwise not subject to
such Section.

     3.5 No Liability. No member of the Board or Committee shall be liable for any action taken or
determination made in good faith with respect to the Plan or any Award granted hereunder.

Section 4. Shares Available for Awards

     4.1 Shares Available. Subject to the provisions of Section 4.2 hereof, the stock to be
subject to Awards under the Plan shall be the Shares of the Company and the maximum number of
Shares with respect to which Awards may be granted under the Plan shall be 1,000,000, of which the
number of Shares with respect to which Incentive Stock Options may be granted shall be no more than
1,000,000. If, after the effective date of the Plan, any Shares covered by an Award granted under
this Plan, or to which such an Award relates, are forfeited, or if such an Award is settled for
cash or otherwise terminates, expires unexercised, or is canceled without the delivery of Shares,
then the Shares covered by such Award, or to which such Award relates, or the number of Shares
otherwise counted against the aggregate number of Shares with respect to which Awards may be
granted, to the extent of any such settlement, forfeiture, termination, expiration, or
cancellation, shall again become Shares with respect to which Awards may be granted. In the event
that any Option or other Award granted hereunder is exercised through the delivery of Shares or in
the event that withholding tax liabilities arising from such Award are satisfied by the withholding
of Shares by the Company, the number of Shares available for Awards under the Plan shall be
increased by the number of Shares so surrendered or withheld. Notwithstanding the foregoing and
subject to adjustment as provided in Section 4.2 hereof, no Participant may receive Options or SARs
under the Plan in any calendar year that, taken together, relate to more than 200,000 Shares.

     4.2 Adjustments. In the event that any unusual and non-recurring transactions, including an
unusual or non-recurring dividend or other distribution (whether in the form of an extraordinary
cash dividend or a dividend of Shares, other securities or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other
rights to purchase Shares or other securities of the Company, or other similar corporate
transaction or event affects the Shares, then the Committee shall in an equitable and proportionate
manner (and, with respect to Incentive Stock Options, in such equitable and proportionate manner as
is consistent with Section 422 of the Code and the regulations thereunder and with respect to
Awards to Covered Officers, in such equitable and proportionate manner as is consistent with
Section 162(m) of the code and the regulations thereunder): (i) adjust any or all of (1) the
aggregate number of Shares or other securities of the Company (or number and kind of other
securities or Property) with respect to which Awards may be granted under the Plan; (2) the number
of Shares or other securities of the Company (or number and kind of other securities or property)
subject to outstanding Awards under the Plan, provided that the number of Shares subject to any
Award shall always be a whole number; (3) the grant or exercise price with respect to any Award
under the Plan; and (4) the limits on the number of Shares that may be granted to Participants
under the Plan in any calendar year;

7

 

(ii) provide for an equivalent award in respect of securities of the surviving entity of any
merger, consolidation or other transaction or event having a similar effect; or (iii) make
provision for a cash payment to the holder of an outstanding Award.

     4.3 Substitute Awards. Any Shares issued by the Company as Substitute Awards in connection
with the assumption or substitution of outstanding grants from any acquired corporation shall not
reduce the Shares available for Awards under the Plan.

     4.4 Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may
consist, in whole or in part, of authorized and unissued Shares or of issued Shares which have been
reacquired by the Company.

Section 5. Eligibility

     Any Employee, Director or Consultant shall be eligible to be designated a Participant;
provided, however, that Outside Directors shall only be eligible to receive Awards granted
consistent with Section 10.

Section 6. Stock Options and Stock Appreciation Rights

     6.1 Grant. Subject to the provisions of the Plan, the Committee shall have sole and complete
authority to determine the Participants to whom Options and SARs shall be granted, the number of
Shares subject to each Award, the exercise price and the conditions and limitations applicable to
the exercise of each Option and SAR. An Option may be granted with or without a Tandem SAR. An SAR
may be granted with or without a related Option. The Committee shall have the authority to grant
Incentive Stock Options, or to grant Non-Qualified Stock Options, or to grant both types of
Options. However, reload options may not be granted (i.e., evergreen grants) under the
Plan. In the case of Incentive Stock Options or Tandem SARs related to such Options, the terms and
conditions of such grants shall be subject to and comply with such rules as may be prescribed by
Section 422 of the Code, as from time to time amended, and any regulations implementing such
statute. A person who has been granted an Option or SAR under this Plan may be granted additional
Options or SARs under the Plan if the Committee shall so determine; provided, however, that to the
extent the aggregate Fair Market Value (determined at the time the Incentive Stock Option or Tandem
SAR related thereto is granted) of the Shares with respect to which all Incentive Stock Options or
Tandem SARs related to such Option are exercisable for the first time by an Employee during any
calendar year (under all plans described in subsection (d) of Section 422 of the Code of the
Employee’s employer corporation and its parent and Subsidiaries) exceeds $100,000, such Options
shall be treated as Non-Qualified Stock Options.

     6.2 Price. The Committee in its sole discretion shall establish the Option Price at the time
each Option is granted. Except in the case of Substitute Awards, the Option Price of an Option may
not be less than one hundred percent (100%) of the Fair Market Value of the Shares with respect to
which the Option is granted on the date of grant of such Option. Notwithstanding the foregoing and
except as permitted by the provisions of Section 4.2 and Section 14 hereof, the

8

 

Committee shall not have the power to (i) amend the terms of previously granted Options to reduce
the Option Price of such Options, or (ii) cancel such Options and grant substitute Options with a
lower Option Price than the cancelled Options. Except with respect to Substitute Awards, SARs may
not be granted at a price less than the Fair Market Value of a Share on the date of grant.

     6.3 Term. Subject to the Committee’s authority under Section 3.1 and the provisions of
Section 6.6, each Option and SAR and all rights and obligations thereunder shall expire on the date
determined by the Committee and specified in the Award Agreement. The Committee shall be under no
duty to provide terms of like duration for Options or SARs granted under the Plan. Notwithstanding
the foregoing, no Option or Tandem SAR that relates to such Option shall be exercisable after the
expiration of ten (10) years from the date such Option or SAR was granted.

     6.4 Exercise.

     (a) Each Option and SAR shall be exercisable at such times and subject to such terms
and conditions as the Committee may, in its sole discretion, specify in the applicable Award
Agreement or thereafter. The Committee shall have full and complete authority to determine,
subject to Section 6.6 herein, whether an Option or SAR will be exercisable in full at any
time or from time to time during the term of the Option or SAR, or to provide for the
exercise thereof in such installments, upon the occurrence of such events and at such times
during the term of the Option or SAR as the Committee may determine.

     (b) The Committee may impose such conditions with respect to the exercise of Options,
including without limitation, any relating to the application of federal, state or foreign
securities laws or the Code, as it may deem necessary or advisable. The exercise of any
Option granted hereunder shall be effective only at such time as the sale of Shares pursuant
to such exercise will not violate any state or federal securities or other laws.

     (c) An Option or SAR may be exercised in whole or in part at any time, with respect to
whole Shares only, within the period permitted thereunder for the exercise thereof, and
shall be exercised by written notice of intent to exercise the Option or SAR, delivered to
the Company at its principal office, and payment in full to the Company at the direction of
the Committee of the amount of the Option Price for the number of Shares with respect to
which the Option is then being exercised. A Tandem SAR that is related to an Incentive Stock
Option may be exercised only to the extent that the related Option is exercisable and only
when the Fair Market Value exceeds the Option Price of the related Option. The exercise of
either an Option or Tandem SAR shall result in the termination of the other to the extent of
the number of Shares with respect to which either the Option or Tandem SAR is exercised.

     (d) Payment of the Option Price shall be made in cash or cash equivalents, or, at the
discretion of the Committee, (i) by transfer, either actually or by attestation, to the
Company of Shares that have been held by the Participant for such period as may be
determined by the Committee valued at the Fair Market Value of such Shares on the date of
exercise (or next succeeding trading date, if the date of exercise is not a trading date),
together with any applicable withholding taxes, such transfer to be upon such terms and

9

 

conditions as determined by the Committee, or (ii) by a combination of such cash (or cash
equivalents) and such Shares; provided, however, that the optionee shall not be entitled to
tender Shares pursuant to successive, substantially simultaneous exercises of an Option or
any other stock option of the Company. Subject to applicable securities laws, an Option may
also be exercised by delivering a notice of exercise of the Option and simultaneously
selling the Shares thereby acquired, pursuant to a brokerage or similar agreement approved
in advance by proper officers of the Company, using the proceeds of such sale as payment of
the Option Price, together with any applicable withholding taxes. Until the optionee has
been issued the Shares subject to such exercise, he or she shall possess no rights as a
stockholder with respect to such Shares.

     (e) At the Committee’s discretion, the amount payable as a result of the exercise of an
SAR may be settled in cash, Shares, or a combination of cash and Shares. A fractional Share
shall not be deliverable upon the exercise of an SAR but a cash payment will be made in lieu
thereof.

     6.5 Ten Percent Stock Rule. Notwithstanding any other provisions in the Plan, if at the time
an Option or SAR is otherwise to be granted pursuant to the Plan the optionee or rights holder owns
directly or indirectly (within the meaning of Section 424(d) of the Code) Shares of the Company
possessing more than ten percent (10%) of the total combined voting power of all classes of Stock
of the Company or its parent or Subsidiary or Affiliate corporations (within the meaning of
Section 422(b)(6) of the Code), then any Incentive Stock Option or Tandem SAR to be granted to such
optionee or rights holder pursuant to the Plan shall satisfy the requirement of Section 422(c)(5)
of the Code, and the Option Price shall be not less than one hundred ten percent (110%) of the Fair
Market Value of the Shares of the Company, and such Option by its terms shall not be exercisable
after the expiration of five (5) years from the date such Option is granted.

Section 7. Restricted Shares and Restricted Share Units

     7.1 Grant.

     (a) Subject to the provisions of the Plan, the Committee shall have sole and complete
authority to determine the Participants to whom Restricted Shares and Restricted Share Units
shall be granted, the number of Restricted Shares and/or the number of Restricted Share
Units to be granted to each Participant, the duration of the period during which, and the
conditions under which, the Restricted Shares and Restricted Share Units may be forfeited to
the Company, and the other terms and conditions of such Awards. The Restricted Share and
Restricted Share Unit Awards shall be evidenced by Award Agreements in such form as the
Committee shall from time to time approve, which agreements shall comply with and be subject
to the terms and conditions provided hereunder and any additional terms and conditions
established by the Committee that are consistent with the terms of the Plan.

     (b) Each Restricted Share and Restricted Share Unit Award made under the Plan shall be
for such number of Shares as shall be determined by the Committee and set forth in

10

 

the Award Agreement containing the terms of such Restricted Share or Restricted Share Unit
Award. Such agreement shall set forth a period of time during which the grantee must remain
in the continuous employment of the Company in order for the forfeiture and transfer
restrictions to lapse. If the Committee so determines, the restrictions may lapse during
such restricted period in installments with respect to specified portions of the Shares
covered by the Restricted Share or Restricted Share Unit Award. The Award Agreement may
also, in the discretion of the Committee, set forth performance or other conditions that
will subject the Shares to forfeiture and transfer restrictions. The Committee may, at its
discretion, waive all or any part of the restrictions applicable to any or all outstanding
Restricted Share and Restricted Share Unit Awards.

     7.2 Delivery of Shares and Transfer Restrictions. At the time of a Restricted Share Award, a
certificate representing the number of Shares awarded thereunder shall be registered in the name of
the grantee. Such certificate shall be held by the Company or any custodian appointed by the
Company for the account of the grantee subject to the terms and conditions of the Plan, and shall
bear such a legend setting forth the restrictions imposed thereon as the Committee, in its
discretion, may determine. Unless otherwise provided in the applicable Award Agreement, the grantee
shall have all rights of a shareholder with respect to the Restricted Shares, including the right
to receive dividends and the right to vote such Shares, subject to the following restrictions:
(i) the grantee shall not be entitled to delivery of the stock certificate until the expiration of
the restricted period and the fulfillment of any other restrictive conditions set forth in the
Award Agreement with respect to such Shares; (ii) none of the Shares may be sold, assigned,
transferred, pledged, hypothecated or otherwise encumbered or disposed of during such restricted
period or until after the fulfillment of any such other restrictive conditions; and (iii) except as
otherwise determined by the Committee at or after grant, all of the Shares shall be forfeited and
all rights of the grantee to such Shares shall terminate, without further obligation on the part of
the Company, unless the grantee remains in the continuous employment of the Company for the entire
restricted period in relation to which such Shares were granted and unless any other restrictive
conditions relating to the Restricted Share Award are met. Any Shares, any other securities of the
Company and any other property (except for cash dividends) distributed with respect to the Shares
subject to Restricted Share Awards shall be subject to the same restrictions, terms and conditions
as such Restricted Shares.

     7.3 Termination of Restrictions. At the end of the restricted period and provided that any
other restrictive conditions of the Restricted Share Award are met, or at such earlier time as
otherwise determined by the Committee, all restrictions set forth in the Award Agreement relating
to the Restricted Share Award or in the Plan shall lapse as to the Restricted Shares subject
thereto, and a stock certificate for the appropriate number of Shares, free of the restrictions and
restricted stock legend, shall be delivered to the Participant or the Participant’s beneficiary or
estate, as the case may be.

     7.4 Payment of Restricted Share Units. Each Restricted Share Unit shall have a value equal to
the Fair Market Value of a Share. Restricted Share Units shall be paid in cash, Shares, other
securities or other property, as determined in the sole discretion of the Committee, upon the lapse
of the restrictions applicable thereto, or otherwise in accordance with the applicable Award
Agreement. Unless otherwise determined in the applicable Award Agreement, a Participant shall be
credited with dividend equivalents on any vested Restricted Share Units credited to the
Participant’s

11

 

account at the time of any payment of dividends to shareholders on Shares. The amount of any such
dividend equivalents shall equal the amount that would have been payable to the Participant as a
shareholder in respect of a number of Shares equal to the number of vested Restricted Share Units
then credited to the Participant. Any such dividend equivalents shall be credited to the
Participant’s account as of the date on which such dividend would have been payable and shall be
converted into additional Restricted Share Units (which shall be immediately vested) based upon the
Fair Market Value of a Share on the date of such crediting. No dividend equivalents shall be paid
in respect of Restricted Share Units that are not yet vested. Except as otherwise determined by the
Committee at or after grant, Restricted Share Units may not be sold, assigned, transferred,
pledged, hypothecated or otherwise encumbered or disposed of, and all Restricted Share Units and
all rights of the grantee to such Restricted Share Units shall terminate, without further
obligation on the part of the Company, unless the grantee remains in continuous employment of the
Company for the entire restricted period in relation to which such Restricted Share Units were
granted and unless any other restrictive conditions relating to the Restricted Share Unit Award are
met.

Section 8. Performance Awards

     8.1 Grant. The Committee shall have sole and complete authority to determine the Participants
who shall receive a Performance Award, which shall consist of a right that is (i) denominated in
cash or Shares, (ii) valued, as determined by the Committee, in accordance with the achievement of
such performance goals during such performance periods as the Committee shall establish, and
(iii) payable at such time and in such form as the Committee shall determine.

     8.2 Terms and Conditions. Subject to the terms of the Plan and any applicable Award
Agreement, the Committee shall determine the performance goals to be achieved during any
performance period, the length of any performance period, the amount of any Performance Award and
the amount and kind of any payment or transfer to be made pursuant to any Performance Award, and
may amend specific provisions of the Performance Award; provided, however, that such amendment may
not adversely affect existing Performance Awards made within a performance period commencing prior
to implementation of the amendment.

     8.3 Payment of Performance Awards. Performance Awards may be paid in a lump sum or in
installments following the close of the performance period or, in accordance with the procedures
established by the Committee, on a deferred basis. Termination of employment prior to the end of
any performance period, other than for reasons of death or Disability, will result in the
forfeiture of the Performance Award, and no payments will be made. A Participant’s rights to any
Performance Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise
encumbered or disposed of in any manner, except by will or the laws of descent and distribution,
and/or except as the Committee may determine at or after grant.

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Section 9. Other Stock-Based Awards

     The Committee shall have the authority to determine the Participants who shall receive an
Other Stock-Based Award, which shall consist of any right that is (i) not an Award described in
Sections 6 and 7 above and (ii) an Award of Shares or an Award denominated or payable in, valued in
whole or in part by reference to, or otherwise based on or related to, Shares (including, without
limitation, securities convertible into Shares), as deemed by the Committee to be consistent with
the purposes of the Plan. Subject to the terms of the Plan and any applicable Award Agreement, the
Committee shall determine the terms and conditions of any such Other Stock-Based Award.

Section 10. Non-Employee Director and Outside Director Awards

     10.1 The Board may provide that all or a portion of a Non-Employee Director’s annual retainer,
meeting fees and/or other awards or compensation as determined by the Board, be payable (either
automatically or at the election of a Non-Employee Director) in the form of Non-Qualified Stock
Options, Restricted Shares, Restricted Share Units and/or Other Stock-Based Awards, including
unrestricted Shares. The Board shall determine the terms and conditions of any such Awards,
including the terms and conditions which shall apply upon a termination of the Non-Employee
Director’s service as a member of the Board, and shall have full power and authority in its
discretion to administer such Awards, subject to the terms of the Plan and applicable law.

     10.2 The Board may also grant Awards to Outside Directors pursuant to the terms of the Plan,
including any Award described in Sections 6, 7 and 9 above. With respect to such Awards, all
references in the Plan to the Committee shall be deemed to be references to the Board.

Section 11. Provisions Applicable to Covered Officers and Performance Awards

     11.1 Notwithstanding anything in the Plan to the contrary, unless the Committee determines
that a Performance Award to be granted to a Covered Officer should not qualify as
“performance-based compensation” for purposes of Section 162(m), Performance Awards granted to
Covered Officers shall be subject to the terms and provisions of this Section 11.

     11.2 The Committee may grant Performance Awards to Covered Officers based solely upon the
attainment of performance targets related to one or more performance goals selected by the
Committee from among the goals specified below. For the purposes of this Section 11, performance
goals shall be limited to one or more of the following Company, Subsidiary, operating unit or
division financial performance measures:

	 	(a)	 	earnings before interest, taxes, depreciation and/or
amortization;
	 
	 	(b)	 	operating income or profit;
	 
	 	(c)	 	operating efficiencies;

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	 	(d)	 	return on equity, assets, capital, capital employed, or
investment;
	 
	 	(e)	 	after-tax operating income;
	 
	 	(f)	 	net income;
	 
	 	(g)	 	earnings or book value per Share;
	 
	 	(h)	 	cash flow(s);
	 
	 	(i)	 	total sales or revenues or sales or revenues per employee;
	 
	 	(j)	 	production (separate work units or SWUs);
	 
	 	(k)	 	stock price or total shareholder return;
	 
	 	(l)	 	dividends; or

     (m) strategic business objectives, consisting of one or more objectives based on
meeting specified cost targets, business expansion goals, and goals relating to acquisitions
or divestitures;

or any combination thereof. Each goal may be expressed on an absolute and/or relative
basis, may be based on or otherwise employ comparisons based on internal targets, the past
performance of the Company or any Subsidiary, operating unit or division of the Company
and/or the past or current performance of other companies, and in the case of earnings-based
measures, may use or employ comparisons relating to capital, shareholders’ equity and/or
Shares outstanding, or to assets or net assets. The Committee may appropriately adjust any
evaluation of performance under criteria set forth in this Section 11.2 to exclude any of
the following events that occurs during a performance period: (i) asset write-downs,
(ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law,
accounting principles or other such laws or provisions affecting reported results,
(iv) accruals for reorganization and restructuring programs and (v) any extraordinary
non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in
management’s discussion and analysis of financial condition and results of operations
appearing in the Company’s annual report to stockholders for the applicable year.

     11.3 With respect to any Covered Officer, the maximum annual number of Shares in respect of
which all Performance Awards may be granted under Section 8 of the Plan is 200,000 and the maximum
amount of all Performance Awards that are settled in cash and that may be granted under Section 8
of the Plan in any year is $2,250,000.

     11.4 To the extent necessary to comply with Section 162(m), with respect to grants of
Performance Awards, no later than 90 days following the commencement of each performance period (or
such other time as may be required or permitted by Section 162(m)), the Committee shall, in
writing, (1) select the performance goal or goals applicable to the performance period,

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(2) establish the various targets and bonus amounts which may be earned for such performance
period, and (3) specify the relationship between performance goals and targets and the amounts to
be earned by each Covered Officer for such performance period. Following the completion of each
performance period, the Committee shall certify in writing whether the applicable performance
targets have been achieved and the amounts, if any, payable to Covered Officers for such
performance period. In determining the amount earned by a Covered Officer for a given performance
period, subject to any applicable Award Agreement, the Committee shall have the right to reduce
(but not increase) the amount payable at a given level of performance to take into account
additional factors that the Committee may deem relevant to the assessment of individual or
corporate performance for the performance period.

     11.5 Unless otherwise expressly stated in the relevant Award Agreement, each Award granted to
a Covered Officer under the Plan is intended to be performance-based compensation within the
meaning of Section 162(m). Accordingly, unless otherwise determined by the Committee, if any
provision of the Plan or any Award Agreement relating to such an Award does not comply or is
inconsistent with Section 162(m), such provision shall be construed or deemed amended to the extent
necessary to conform to such requirements, and no provision shall be deemed to confer upon the
Committee discretion to increase the amount of compensation otherwise payable to a Covered Officer
in connection with any such Award upon the attainment of the performance criteria established by
the Committee.

Section 12. Termination of Employment

     The Committee shall have the full power and authority to determine the terms and conditions
that shall apply to any Award upon a termination of employment with the Company, its Subsidiaries
and Affiliates, including a termination by the Company with or without Cause, by a Participant
voluntarily, or by reason of death, Disability or Retirement, and may provide such terms and
conditions in the Award Agreement or in such rules and regulations as it may prescribe.

Section 13. Change in Control and Potential Change in Control

     Upon a Change in Control, all outstanding Awards shall vest, become immediately exercisable or
payable or have all restrictions lifted. Upon a Potential Change in Control, all outstanding
Awards shall vest, become immediately exercisable or payable or have all restrictions lifted, but
only if and to the extent so determined by the Committee or the Board at or after grant (subject to
any right of approval expressly reserved by the Committee or the Board).

Section 14. Amendment and Termination

     14.1 Amendments to the Plan. The Board may amend, alter, suspend, discontinue, or terminate
the Plan or any portion thereof at any time; provided that no such amendment, alteration,
suspension, discontinuation or termination shall be made without shareholder approval if such

15

 

approval is necessary to comply with any tax or regulatory requirement for which or with which the
Board deems it necessary or desirable to comply.

     14.2 Amendments to Awards. Subject to the restrictions of Section 6.2, the Committee may
waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively; provided that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would
materially and adversely affect the rights of any Participant or any holder or beneficiary of any
Award theretofore granted shall not to that extent be effective without the consent of the affected
Participant, holder, or beneficiary.

     14.3 Adjustments of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee is hereby authorized to make equitable and proportionate adjustments in the terms and
conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring
events (including, without limitation, the events described in Section 4.2 hereof) affecting the
Company, any Subsidiary or Affiliate, or the financial statements of the Company or any Subsidiary
or Affiliate, or of changes in applicable laws, regulations or accounting principles.

Section 15. General Provisions

     15.1 Limited Transferability of Awards. Except as otherwise provided in the Plan, no Award
shall be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant, except by will or the laws of descent and distribution and/or as may be provided by
the Committee in its discretion, at or after grant, in the Award Agreement. No transfer of an Award
by will or by laws of descent and distribution shall be effective to bind the Company unless the
Company shall have been furnished with written notice thereof and an authenticated copy of the will
and/or such other evidence as the Committee may deem necessary or appropriate to establish the
validity of the transfer.

     15.2 Dividend Equivalents. In the sole and complete discretion of the Committee, an Award may
provide the Participant with dividends or dividend equivalents, payable in cash, Shares, other
securities or other property on a current or deferred basis. All dividend or dividend equivalents
which are not paid currently may, at the Committee’s discretion, accrue interest, be reinvested
into additional Shares, or in the case of dividends or dividend equivalents credited in connection
with Performance Awards, be credited as additional Performance Awards and paid to the Participant
if and when, and to the extent that, payment is made pursuant to such Award. The total number of
Shares available for grant under Section 4 shall not be reduced to reflect any dividends or
dividend equivalents that are reinvested into additional Shares or credited as Performance Awards.

     15.3 No Rights to Awards. No Person shall have any claim to be granted any Award, and there
is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards.
The terms and conditions of Awards need not be the same with respect to each Participant.

     15.4 Share Certificates. All certificates for Shares or other securities of the Company or
any Subsidiary or Affiliate delivered under the Plan pursuant to any Award or the exercise thereof
shall be subject to such stop transfer orders and other restrictions as the Committee may deem

16

 

advisable under the Plan or the rules, regulations and other requirements of the SEC or any state
securities commission or regulatory authority, any stock exchange or other market upon which such
Shares or other securities are then listed, and any applicable Federal or state laws, and the
Committee may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

     15.5 Withholding. A Participant may be required to pay to the Company or any Subsidiary or
Affiliate and the Company or any Subsidiary or Affiliate shall have the right and is hereby
authorized to withhold from any Award, from any payment due or transfer made under any Award or
under the Plan, or from any compensation or other amount owing to a Participant the amount (in
cash, Shares, other securities, other Awards or other property) of any applicable withholding or
other tax-related obligations in respect of an Award, its exercise or any other transaction
involving an Award, or any payment or transfer under an Award or under the Plan and to take such
other action as may be necessary in the opinion of the Company to satisfy all obligations for the
payment of such taxes. The Committee may provide for additional cash payments to holders of Options
to defray or offset any tax arising from the grant, vesting, exercise or payment of any Award.

     15.6 Award Agreements. Each Award hereunder shall be evidenced by an Award Agreement that
shall be delivered to the Participant and may specify the terms and conditions of the Award and any
rules applicable thereto. In the event of a conflict between the terms of the Plan and any Award
Agreement, the terms of the Plan shall prevail. The Committee shall, subject to applicable law,
determine the date an Award is deemed to be granted. The Committee or, except to the extent
prohibited under applicable law, its delegate(s) may establish the terms of agreements or other
documents evidencing Awards under this Plan and may, but need not, require as a condition to any
such agreement’s or document’s effectiveness that such agreement or document be executed by the
Participant, including by electronic signature or other electronic indication of acceptance, and
that such Participant agree to such further terms and conditions as specified in such agreement or
document. The grant of an Award under this Plan shall not confer any rights upon the Participant
holding such Award other than such terms, and subject to such conditions, as are specified in this
Plan as being applicable to such type of Award (or to all Awards) or as are expressly set forth in
the agreement or other document evidencing such Award.

     15.7 No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent
the Company or any Subsidiary or Affiliate from adopting or continuing in effect other compensation
arrangements, which may, but need not, provide for the grant of Options, Restricted Shares,
Restricted Share Units, Other Stock-Based Awards or other types of Awards provided for hereunder.

     15.8 No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained in the employ of the Company or any Subsidiary or Affiliate.
Further, the Company or a Subsidiary or Affiliate may at any time dismiss a Participant from
employment, free from any liability or any claim under the Plan, unless otherwise expressly
provided in an Award Agreement.

17

 

     15.9 No Rights as Stockholder. Subject to the provisions of the Plan and the applicable Award
Agreement, no Participant or holder or beneficiary of any Award shall have any rights as a
shareholder with respect to any Shares to be distributed under the Plan until such person has
become a holder of such Shares. Notwithstanding the foregoing, in connection with each grant of
Restricted Shares hereunder, the applicable Award Agreement shall specify if and to what extent the
Participant shall not be entitled to the rights of a shareholder in respect of such Restricted
Shares.

     15.10 Governing Law. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan and any Award Agreement shall be determined in accordance with the
laws of the State of Tennessee without giving effect to conflicts of laws principles.

     15.11 Severability. If any provision of the Plan or any Award is, or becomes, or is deemed to
be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to the applicable laws, or if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

     15.12 Other Laws. The Committee may refuse to issue or transfer any Shares or other
consideration under an Award if, acting in its sole discretion, it determines that the issuance or
transfer of such Shares or such other consideration might violate any applicable law or regulation
(including applicable non-U.S. laws or regulations) or entitle the Company to recover the same
under Exchange Act Section 16(b), and any payment tendered to the Company by a Participant, other
holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to
the relevant Participant, holder, or beneficiary.

     15.13 No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the Company or
any Subsidiary or Affiliate and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Subsidiary or Affiliate pursuant to an
Award, such right shall be no greater than the right of any unsecured general creditor of the
Company or any Subsidiary or Affiliate.

     15.14 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

     15.15 Headings. Headings are given to the sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

18

 

     Section 16. Term of the Plan

     16.1 Effective Date. The Plan shall be effective as of June 23, 2005, provided it has been
approved by the Company’s shareholders.

     16.2 Expiration Date. No new Awards shall be granted under the Plan after the tenth (10th)
anniversary of the Effective Date. Unless otherwise expressly provided in the Plan or in an
applicable Award Agreement, any Award granted hereunder may, and the authority of the Board or the
Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive
any conditions or rights under any such Award shall, continue after the tenth (10th) anniversary of
the Effective Date.

19

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