Document:

Exhibit

Exhibit 10.7

[Avon Letterhead]

Personal & Confidential

June 1, 2015

David Legher
SVP & President Brazil & South Market Group
Avon-Colombia

Dear David:

This letter confirms our mutual understanding of the terms and conditions applying to your assignment extension in Sao Paulo, Brazil as SVP & President Brazil & South Market Group, LATAM reporting to Sheri McCoy, Chief Executive Officer.  Your assignment in Brazil is contingent upon our mutual understanding of the performance objectives which are subject to change at Avon’s discretion, timely local regulatory permission being obtained for you to work in Brazil, and your acceptance of the terms and conditions of this letter.

Your current international assignment is scheduled to end on May 31, 2015 and will be extended for one (1) year from June 1, 2015 until May 31, 2016. The assignment may end earlier, subject to the discretion of LATAM Management.

The terms and conditions in the Avon Long Term Corporate International Assignment Policy (issued January 1, 2013) will apply as of June 1, 2015, unless otherwise noted in this letter.  Similarly, if you are re-assigned to a new location, the LTCIA Policy issued January 1, 2013 will apply to any new assignment at the time of reassignment.

In the event that your current assignment exceeds the expected end date, and a new assignment letter has not been extended, and/or you have not been repatriated, the terms and condition of your current assignment will continue to prevail.

The conditions of this letter are in accordance with the policies set forth in the Long Term Corporate International Assignment Policy (issued January 1, 2013), hereinafter referred to as the “Policy.”  This letter summarizes key points in the Policy as it pertains to your assignment and may contain certain additional requirements.  Please refer to the policy document for more details of the terms and conditions of your assignment. The Policy may be changed from time to time as legal requirements may dictate, new practices may require, or for other reasons at the discretion of the Company.  In terms of this specific assignment, local conditions and guidelines applicable to Avon international assignees in Brazil will also govern your assignment.

TOTAL COMPENSATION

Total Compensation:
Your total compensation package remains unchanged as of the issue date of this letter except as follows. Your next salary review date is April 1, 2016. Total compensation is your current performance-based compensation. This includes your annual salary and any other bonuses or performance-related incentives
received during this assignment.  Once the amount is determined, a hypothetical tax will be applied and you will be paid the net amount.

Compensation Delivery:
A balance sheet approach will continue to be used to ensure that your standard of living and taxes in
Brazil will be comparable to that which you are accustomed to in Colombia.  Your first balance sheet issued under the 2013 LTCIA Policy will be effective as of June 1, 2015.

BENEFITS
While on your temporary assignment, the Avon-Colombia policies and benefit programs outlined in your home country offer letter/ employment agreement will remain in effect.  Normal deductions for your
benefit plan choices will be in accordance with Avon-Colombia benefit policies.

Medical Insurance:
For the duration of your international assignment in Brazil, Avon will continue enrollment for you and your eligible dependents in an international expatriate medical plan. The Avon-Colombia payroll
department will continue to handle any payroll deductions required for social security taxes, other mandated contributions and contributions to the Avon-sponsored benefit plans in Colombia.

Vacation & Holidays:
Vacation eligibility is based on the Avon-Colombia vacation policy.  Your public holidays will be based on the local Brazil holiday schedule.

TAXATION

Tax Equalization Adjustments:
Under the terms of the Tax Policy, your tax liability while on assignment in Brazil will be approximately
the amount that would be payable if you were working and living in Colombia.  In order to equalize the tax obligation of your foreign service, a hypothetical Colombia income tax is computed and deducted from your total salary.  A tax equalization calculation/reconciliation will be prepared at the end of each calendar year to determine if the appropriate Colombia taxes were withheld on your total compensation during your foreign service through your hypothetical income tax deductions.

The revised Avon Global Tax Equalization Policy (effective January 1, 2013) applies to your assignment. The revised Tax Equalization Policy formalizes the repayment of tax settlement amounts due Avon from your annual tax equalization calculation as follows: within 30 days of receipt of the calculation from Avon’s designated global tax services firm or within 30 days of receipt of tax refunds, as applicable.

In the event that you do not break tax residency in Colombia, you will remain on actual tax withholding and a hypothetical tax will not be implemented.  However, the tax equalization process will still continue.

Ernst & Young LLP will continue to prepare your income tax returns while you are on foreign assignment.  It is therefore imperative that you make contact with them to ensure that all necessary information is being compiled and that the tax process is in place to file your tax returns on a timely basis. Your EY contacts are as follows:

E&Y Colombia
[name]
Telephone: [telephone number]
Email:  [e-mail address]

E&Y Brazil 
[name] 
Telephone: [telephone number]
Email:  [e-mail address]

[name], a Senior Manager at Ernst & Young (E&Y) in the United States, is responsible for the day-to-day coordination of tax issues regarding Avon’s worldwide expatriates.  She may be reached at [telephone number] or via email at [e-mail address].  [name], a tax partner at Ernst & Young (E&Y) in New York, is responsible for Avon’s worldwide expatriate tax work.

In the event of severance, tax treatment of any payments made to you will be reviewed and income tax withholding adjusted accordingly, if necessary.

Hypothetical Tax:
As stated above, a hypothetical Colombia tax will be deducted from your total compensation when it is
paid to you.  As stated, total compensation includes base salary, Management Incentive Plan, and any other bonuses or performance-related incentives received during your assignment.   Severance payments may also be subject to hypothetical tax. A determination will be made by Avon at the time of payment, in consultation with E&Y.

Social Security:
The hypothetical tax deduction does not cover your home country social security obligation. The
Colombia payroll department should continue to handle this deduction while you are on assignment in Brazil, as applicable.  You will not be responsible for any Brazil social taxes incurred while on assignment. These taxes will be paid on your behalf by the Colombia office.

ASSIGNMENT ALLOWANCES/REIMBURSEMENTS/SUPPORT

Unless otherwise stated, all assignment allowances/reimbursements will be paid net-of-tax.

Weichert Workforce Mobility (Weichert):
Avon has partnered with a third-party relocation company, Weichert, to assist you in for on-assignment
administration support. Your Assignment Counselor will continue to be [name], who can be reached via email at [e-mail address] or telephone at [telephone number].

Work Permit/Visa:
Avon will ensure all appropriate immigration documents, visas, and work permits are obtained to
facilitate your stay in Brazil.  Weichert will initiate immigration services with Avon’s immigration
services law firm as needed to maintain your work authorization in Brazil.   As a reminder, you are not permitted to work in the host location without proper work authorization. You should consult with the Global Mobility team and/or the immigration services law in order to maintain your work authorization in Brazil.

Goods and Services Differential:
The goods and services differential is calculated by taking the difference between the goods and services
(G&S) index of host and home location times the amount that someone at your income level and family size would spend on goods and services in Colombia. The portion of your salary used on goods and services in Colombia is also referred to as your spendable income.  It is the Colombia spendable income -
- not total base salary -- that is protected from the higher costs of goods and services abroad.  At present, Mercer reports a goods & services index for Brazil above the present cost of living in Colombia.  Mercer
continually monitors exchange rates and movements in the rate of inflation for both countries.  As conditions change in the home and/or host countries, the differential may be increased, reduced, or eliminated based on new survey data from Mercer. Your balance sheet will reflect changes,
positive or negative, to your goods & services index and exchange rate only when there is an adjustment for inflation or new pricing surveys are available.

Your balance sheet will be updated in April and October of each year.  Effective June 1, 2015, the calculation of the G&S differential will utilize your current annual base salary, up to a maximum annual base salary of US$200,000 or the equivalent in home country currency.

Host Country Housing:
Avon will be assuming the full cost of your housing in Brazil including your rent and utilities (excluding
telephone, cable television, and internet service) up to an approved maximum.  Any rent above your housing allowance will be your responsibility.

Home Country Housing Charge:
A home country housing charge (housing norm) reflects the amount that you would have spent on
housing in Colombia.  It is based on what someone with your family size and income level would spend on housing in Colombia as established by our consultants, Mercer.  Since you have remained personally responsible for your home in Colombia and it was not rented, the housing obligation reflecting the amount that you would have spent on housing has not been deducted from your total compensation. You will be required to reconfirm your home country housing situation by signing a written affidavit that the home will continue to remain vacant and not generate any rental income while you are on assignment. You undertake the responsibility to immediately notify your assignment counselor if your situation
changes, i.e., you are receiving rental income on your residence, sell it, etc.  At the time your counselor is notified, a housing deduction will be withheld from your payroll applied from the effective date of the change.  Our outside consultants, Mercer, will assist us in determining the amount of this deduction.

Emergency Medical Assistance/Emergency Evacuation:
You are covered under the Company’s emergency evacuation policy through Travel Guard should such a situation arise. Some of the services that Travel Guard provides include physician/hospital/dental/vision referrals, emergency prescription replacement, in-patient and out-patient medical case management, and emergency medical evacuation transportation assistance. To contact Travel Guard, call toll-free [phone number] (International Collect: [phone number]) and reference Avon's Group Name and Policy Number: Avon Products Inc. – [number].  Please keep this information with you when you travel. You can also access the Travel Guard website,  [web address] to find travel resources and a complete list of recommended healthcare providers in various locations throughout the world.  You will be provided with a brochure and wallet card under separate cover.

Host Country Transportation.
You will continue to be provided with two company leased cars and drivers while on assignment in Brazil in accordance with local policy.  You will cease to participate in your home country car/transportation
program for the duration of your international assignment.

Location Premium:
Because Sao Paulo, Brazil qualifies as a hardship location due to such factors as political/social and physical conditions you will receive a Location Premium equivalent to 10% of base salary.  Effective
June 1, 2015, the premium percentage in effect at that time will be calculated on a maximum base salary of US$200,000 per year (or home country equivalent). This payment will not be subject to hypothetical
tax and will be paid through your balance sheet. The Location Premium percentage is subject to change, including being eliminated, to coincide with the change in conditions in Sao Paulo, Brazil

The Location Premium will be reflected on your balance sheet and will be paid via payroll.

Rest and Relaxation (R&R) Leave:
Since Sao Paulo, Brazil is designated as a hardship area, you will be eligible for a rest and relaxation
leave each year for 5 working days.  These days should be used at the nearest non-hardship location
(Miami or alternatively your home location in Colombia provided that the cost is equivalent to a trip to
Miami) and are in addition to vacation/home leave.  Reimbursement includes reasonable lodging (no

luxury hotels), airfare, and transportation to/from the airport only. The cost of meals, activities, and incidental expenses are not eligible for reimbursement.

If you decide to travel to a destination other than the nearest non-hardship location, reimbursement will be limited to the cost of a trip to the nearest non-hardship location; any excess will the assignee’s responsibility.  In addition, you will need to provide Weichert with a travel quote to simulate the cost of a trip to the nearest non-hardship location, with your expense reimbursement request.

There is no carry-over from one assignment year to another in the event that you do not utilize the trip. Furthermore, eligibility for R&R leave terminates at the end of the assignment – i.e. the trip cannot be utilized if you repatriate or are reassigned.

Should Sao Paulo, Brazil location lose its designation as a hardship location, the R&R leave will cease.

Education Assistance:
Education expenses, such as reasonable tuition, transportation, required textbooks, school uniforms, and
academic fees for your children starting at age 5, through the high school level (grade 12 or equivalent international grade), will be paid by the Avon-Brazil office if the public school system in Brazil does not enable your children to return to the Colombia school system at the grade they would have been in had they not gone on this assignment.  School supplies, meals, and extra-curricular activities are not eligible for reimbursement.

Home Leave Allowance:
Effective June 1, 2015, you will be provided with an annual cash home leave allowance which will be processed by Weichert. The allowance will be based upon round-trip airfare to Colombia (one trip per accompanying family member) via the most direct route available, plus the estimated cost of ground transportation to/from the airport. Class of travel will be determined by the Avon Business Travel policy.

Subsequent home leave allowance payments, if applicable, will occur on or about the anniversary date of your assignment, for the following assignment year.  You should contact Weichert to request payment and provide your current banking details.

Please note: the home leave allowance will not be paid in advance of the start of the assignment year.

Club Membership:
As a social outlet, you and your eligible dependents will continue to be eligible for a club membership. Please contact [name] before making any arrangements.

Expense Reimbursements:
All assignment expenses should be submitted to Weichert for reimbursement. This includes but is not
limited to: relocation expenses, temporary living expenses, school fees, education, etc.  Assignment expenses are not to be submitted through Concur or any local expense process for reimbursement without prior approval from Global Mobility. Most assignment expenses are taxable and therefore Global Mobility and Weichert must have visibility to these expenses to ensure proper tax compliance for Avon.

Personal Property & Liability Insurance:
Personal Property Insurance and Personal Liability Insurance will continue during your assignment.   You should review your valued inventory to ensure it is up to date.  Please contact [name] of Unirisc to update your valued inventory or with any questions on your coverage.

SPECIAL PAYMENTS

In some locations, certain host country special payments and host country severance (termination 

indemnity) payments are required by local law. Should you qualify for and/or receive host country additional compensation required by local law, you understand that you are not entitled to these benefits under this agreement and you must return these benefits to Avon.  In some cases, such home country benefits, payments, allowances or differentials will automatically be offset for the host country special payments, at Avon's direction.

DATA PRIVACY

During the assignment, your personal information will be collected and stored electronically in order to process salary payments, track your assignment details and generate other reports. By signing this letter, you expressly consent to the transfer of any information by Avon to related companies.

EMPLOYMENT CONSIDERATIONS

It is understood that in accepting this assignment, the terms and conditions are to be kept strictly confidential and to be the basis of your employment in Brazil.  It is also understood that you will continue to adhere to the spirit of Avon policies, and that Human Resources policies governing compensation and benefits as they relate to your particular case will be determined by reference to Avon-Colombia’s practices rather than Brazil’s practices, as well as by reference to the Avon Long Term Corporate International Assignment Policy and Global Tax Equalization Policy.  It is also understood that all of the items covered in this letter are subject to your continued satisfactory performance.

REPATRIATION SUPPORT

Weichert Workforce Mobility (Weichert):
Your Assignment Counselor will continue to support you during the repatriation process.

Miscellaneous Relocation Allowance:
Upon your return to Colombia OR your reassignment to another location you will receive one month’s
base salary as a relocation allowance (i.e. two allowances will not be paid at the end of this assignment), not to exceed US$16,667 or the equivalent in home country currency. The relocation allowance is not subject to hypothetical income tax and will be paid net of tax.

This payment is designed to defray expenses not otherwise covered by the provisions of this letter, including but not limited to: tips paid to the moving crew, additional luggage, loss on sale of locally purchased items, cleaning and preparation of your home country residence, etc.  Please reference Policy for additional information.

Shipment/Storage of Effects:
You will be reimbursed for the cost of shipping limited household and personal effects from Brazil in accordance with the Policy.

In the event that you were provided with furnished accommodations in Brazil or a furniture purchase allowance, only an air shipment will be provided

Pet Shipment Allowance:
If you have a pet that you plan to relocate to Colombia, you will be reimbursed for pet shipment expenses
up to a maximum of US$5,000 (or local currency equivalent).  This reimbursement is intended to subsidize the cost of shipping; veterinarian fees and quarantine expenses are not eligible for reimbursement.  Upon completion of your assignment, you will be reimbursed for return shipment expenses for your pet, up to the same maximum amount.

Destination Assistance:
Lease cancellation support and related relocation services in Brazil will be provided to you through the
services of consultants as appointed by Avon.  Please contact Weichert for further instructions.

Temporary Living Expenses:
Temporary lodging will be provided in Brazil during packing of your household goods commences until
you depart Brazil. Upon arrival in Colombia, if your housing is not immediately available, you will be reimbursed for lodging for a period not to exceed a combined maximum of forty-five (45) days in both locations.  A per diem will be provided to cover the cost of meals and incidental expenses. A rental car will be made available during this period, if necessary. These expenses will be reimbursed via Weichert.

You should contact Weichert before making any arrangements for temporary lodging.

Provision of Major Appliances:
If Avon purchased major appliances and/or furniture on your behalf, these items must be returned at the
end of your assignment.  You will be given the opportunity to purchase them at a fair market price should you desire to do so.  However you will be responsible for any shipping costs.  Please contact your
Weichert assignment counselor for further details.

Loss on Sale of Automobile:  Should you elect to dispose of your personal automobile in Brazil you will be reimbursed for the loss on the disposal capped at 20% of the retail value of the automobile.

PERFORMANCE AND REPATRIATION

Should you terminate while abroad, either at your own or Avon's election, Avon will pay repatriation expenses for you, your family and your household goods in accordance with Policy guidelines as described above.  Expenses to your point of origin (Colombia) would be paid, provided you return to that point within 30 days of termination.  Of course, repatriation expenses would not be paid if you were to stay in Brazil or if you were to be employed by another company. In the event of involuntary termination
during or upon completion of your assignment, you will be entitled to receive severance benefits available to Colombia associates at your title/grade level under the Avon severance policy for Avon-Colombia
and/or the government-sponsored plan of your home country, in effect at such time or as required by
home country labor/employment law. Prior to the receipt of Avon severance benefits, you must sign an agreement containing: (i) a general release of all claims; (ii) a non-compete; (iii) a non-solicitation; and
(4) a cooperation clause.

Upon successful completion of your assignment as SVP & President Brazil & South Market Group, LATAM, it is our current intent to offer you a position comparable to that position or to repatriate you to Colombia.  Of course, any such offer would be dependent on market conditions, Avon’s business structure and other circumstances that cannot be known at this time.

David, I believe we have covered the pertinent points of your assignment extension.  After you have reviewed this agreement, please sign the enclosed two copies of this letter and send one to [name] in New York.  The other copy may be retained for your files.  I wish you the best in your assignment.

Sincerely,
	
					
	/s/Sheri McCoy
	 
	 
	 
	/s/ Ann Verillo

	Sheri McCoy
	 
	 
	 
	Ann Verillo

	Chief Executive Officer
	 
	 
	 
	VP, Global Compensation and Benefits

	 
	 
	 
	 
	 

	/s/ Amy White Byrne
	 
	 
	 
	 

	Amy White Byrne
	 
	 
	 
	 

	Vice President, HR, Latin America & Global Marketing
	 

	 
	 
	 
	 
	 

Avon Products, Inc. 777 Third Avenue, New York, NY 10105, 212-282-8500

[Avon Letterhead]
PERSONAL & CONFIDENTIAL

June 1, 2016
David Legher
Senior Vice President, South Latin America
Avon – Colombia
Dear David:

This letter confirms our discussions regarding the terms and conditions that apply to your assignment extension in Sao Paulo, Brazil as Senior Vice President, South Latin America reporting to John Higson, Executive Vice President EMEA and LATAM. Your assignment in Brazil continues to be contingent upon our mutual understanding of the performance objectives which are subject to change at Avon’s discretion.

Your current international assignment is scheduled to end on May 31, 2016 and will be extended for one (1) year covering the period of June 1, 2016 to May 31, 2017. The assignment may end earlier, subject to the discretion of Avon Management.  In the event that your current assignment exceeds the expected end date, and new terms have not been provided, and/or you have not been repatriated, the terms and condition of this extension will continue to prevail.

During this extension period, your assignment will continue to be governed under the Avon Long Term Corporate International Assigment Policy, which includes the Avon Global Tax Equalization Policy (issued January 1, 2013), and as such the current terms and conditions of your assignment remain as described in your prior assignment letter dated June 1, 2015.  Note policies may be changed from time to time as legal requirements may dictate, new practices may require, or for other reasons at Avon’s discretion. In terms of this specific assignment, local conditions and guidelines applicable to Avon international assignees in Brazil will also govern your assignment.

Sincerely,
	
					
	/s/John Higson
	 
	 
	 
	/s/Susan Ormiston 

	John Higson
	 
	 
	 
	Susan Ormiston 

	Executive Vice President EMEA and LATAM
	 
	Senior Vice President and CHRO

	 
	 
	 
	 
	 

Acknowledged and Understood:

	
					
	/s/David Legher
	 
	 
	 
	 

	David Legher    
	 
	 
	 
	 

	Senior Vice President, South Latin Americamgrc-ex1011_361.htm

 

Exhibit 10.1.1

MCGRATH RENTCORP

2016 STOCK INCENTIVE PLAN

NOTICE OF Restricted Stock Unit AWARD

 

	
Grantee’s Name and Address:
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

You (the “Grantee”) have been granted an award of Restricted Stock Units (the “Award”), subject to the terms and conditions of this Notice of Restricted Stock Unit Award (the “Notice”), the McGrath RentCorp 2016 Stock Incentive Plan, as amended from time to time (the “Plan”) and the Restricted Stock Unit Agreement (the “Agreement”) attached hereto, as follows.  Unless otherwise provided herein, the terms in this Notice shall have the same meaning as those defined in the Plan. 

 

	
Award Number
	
 
	
 

	
Date of Award
	
 
	
 

	
Scheduled Settlement Date
	
 
	
 

	
Total Number of Restricted Stock

Units Awarded (the “Units”)
	
 
	
 

Vesting and Settlement

Subject to the limitations set forth in this Notice, the Agreement and the Plan, the Units will “vest” and be settled in accordance with the following schedules:

Vesting Schedule:

Subject to the Grantee’s Continuous Service, 100% of the Units subject to the Award shall vest on April 1, 2016 (the “Scheduled Vesting Date”).

Notwithstanding the foregoing, in the event of any of the following occurrences prior to the Scheduled Vesting Date (any such event, an “Accelerated Vesting Event”), 100% of the Units subject to the Award shall vest immediately prior to the specified effective date of (and contingent upon) a Change in Control or a Corporate Transaction (each as defined in the Plan) which also constitutes a “change in the ownership or effective control, or in the ownership of a substantial portion of the assets” (as defined in Section 409A of the Code) of the Company.

For purposes of this Notice and the Agreement, the term “vest” shall mean, with respect to any Units, that such Units are no longer subject to forfeiture to the Company.  If the Grantee would become vested in a fraction of a Unit, such Unit shall not vest until the Grantee becomes vested in the entire Unit.

 

 

Vesting shall cease upon the date the Grantee terminates Continuous Service for any reason, including Disability.  In the event the Grantee terminates Continuous Service for any reason, including Disability, any unvested Units held by the Grantee immediately upon such termination of the Grantee’s Continuous Service shall be forfeited and deemed reconveyed to the Company and the Company shall thereafter be the legal and beneficial owner of such reconveyed Units and shall have all rights and interest in or related thereto without further action by the Grantee.

Settlement Schedule:

Subject to Section 3 of the Agreement, one share of Common Stock shall be issuable for each vested Unit subject to the Award (the “Shares”) upon the earliest of (i) the Scheduled Settlement Date; (ii) an Accelerated Vesting Event; (iii) the specified effective date of a Change in Control or a Corporate Transaction (each as defined in the Plan) which also constitutes a “change in the ownership or effective control, or in the ownership of a substantial portion of the assets” (as defined in Section 409A of the Code) of the Company; or (iv) (check all that apply):

 

	
x
	
 
	
a termination of the Grantee’s Continuous Service which also constitutes a separation from service under Section 1.409A-1(c)(2)(ii) of the Treasury Regulations;

	
 
	
 
	
 

	
x
	
 
	
the Grantee’s death; 

	
 
	
 
	
 

	
x
	
 
	
the Grantee’s Disability (as defined in the Plan) which also constitutes a “disability” (as defined in Section 1.409A-3(i)(4) of the Treasury Regulations).

 

Within thirty (30) days thereafter, the Company will transfer the appropriate number of Shares to the Grantee after satisfaction of any required tax or other withholding obligations.  The Company may however, in its sole discretion, make a cash payment in lieu of the issuance of the Shares in an amount equal to the value of one share of Common Stock multiplied by the number of Units subject to the Award.

During any authorized leave of absence, the vesting of the Units as provided in this schedule shall be suspended (to the extent permitted under Section 409A of the Code) after the leave of absence exceeds a period of three (3) months.  The Vesting Schedule of the Units shall be extended by the length of the suspension.  Vesting of the Units shall resume upon the Grantee’s termination of the leave of absence and return to service to the Company or a Related Entity; provided, however, that if the leave of absence exceeds six (6) months, and a return to service upon expiration of such leave is not guaranteed by statute or contract, then (a) the Grantee’s Continuous Service shall be deemed to terminate on the first date following such six-month period and (b) the Grantee will forfeit the Units that are unvested on the date of the Grantee’s termination of Continuous Service.  An authorized leave of absence shall include sick leave, military leave, or other bona fide leave of absence (such as temporary employment by the government).  Notwithstanding the foregoing, with respect to a leave of absence due to any medically determinable physical or mental impairment of the Grantee that can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, where such impairment causes the Grantee to be unable to perform the duties of the Grantee’s 

2

 

position of employment or substantially similar position of employment, a twenty-nine (29) month period of absence shall be substituted for such six (6) month period above.

The Vesting and Settlement Schedules set forth in this Notice are intended to supersede Section 11 of the Plan.

The elections made by the Grantee in the Settlement Schedule shall not be amended except in compliance with Section 409A of the Code, and in particular in compliance with Section 1.409A-2(b) of the Treasury Regulations.

IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Award is to be governed by the terms and conditions of this Notice, the Plan, and the Agreement.

 

	
McGrath RentCorp

a California corporation

	
 
	
 
	
 

	
By:
	
 
	
/s/ Dennis C. Kakures

	
 
	
 
	
 

	
Title:
	
 
	
President and CEO

 

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE UNITS SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE OR AS OTHERWISE SPECIFICALLY PROVIDED HEREIN (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER).  THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT, NOR IN THE PLAN, SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION OF THE GRANTEE’S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE GRANTEE’S CONTINUOUS SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE.  

Grantee Acknowledges and Agrees:

The Grantee acknowledges receipt of a copy of the Plan and the Agreement and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all of the terms and provisions hereof and thereof.  The Grantee has reviewed this Notice, the Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and fully understands all provisions of this Notice, the Agreement and the Plan.

3

 

The Grantee further acknowledges that, from time to time, the Company may be in a “blackout period” and/or subject to applicable federal securities laws that could subject the Grantee to liability for engaging in any transaction involving the sale of the Company’s Shares.  The Grantee further acknowledges and agrees that, prior to the sale of any Shares acquired under this Award, it is the Grantee’s responsibility to determine whether or not such sale of Shares will subject the Grantee to liability under insider trading rules or other applicable federal securities laws.

The Grantee understands that the Award is subject to the Grantee’s consent to access this Notice, the Agreement, the Plan and the Plan prospectus (collectively, the “Plan Documents”) in electronic form on the Company’s intranet or the website of the Company’s designated brokerage firm, if applicable.  By signing below (or providing an electronic signature by clicking below) and accepting the grant of the Award, the Grantee: (i) consents to access electronic copies (instead of receiving paper copies) of the Plan Documents via the Company’s intranet or the website of the Company’s designated brokerage firm, if applicable; (ii) represents that the Grantee has access to the Company’s intranet or the website of the Company’s designated brokerage firm, if applicable; (iii) acknowledges receipt of electronic copies, or that the Grantee is already in possession of paper copies, of the Plan Documents; and (iv) acknowledges that the Grantee is familiar with and accepts the Award subject to the terms and provisions of the Plan Documents.

The Company may, in its sole discretion, decide to deliver any Plan Documents by electronic means or request the Grantee’s consent to participate in the Plan by electronic means.  The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

The Grantee hereby agrees that all questions of interpretation and administration relating to this Notice, the Plan and the Agreement shall be resolved by the Administrator in accordance with Section 9 of the Agreement.  The Grantee further agrees to the venue and jurisdiction selection in accordance with Section 10 of the Agreement.  The Grantee further agrees to notify the Company upon any change in his or her residence address indicated in this Notice.

 

	
Date:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Grantee’s Signature

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Grantee’s Address:

 

 

 

4

 

Award Number:  ________________

MCGRATH RENTCORP

2016 STOCK INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

1. Issuance of Units.  McGrath RentCorp, a California corporation (the “Company”), hereby issues to the Grantee (the “Grantee”) named in the Notice of Restricted Stock Unit Award (the “Notice”) an award (the “Award”) of the Total Number of Restricted Stock Units Awarded set forth in the Notice (the “Units”), subject to the Notice, this Restricted Stock Unit Agreement (the “Agreement”) and the terms and provisions of the McGrath RentCorp 2016 Stock Incentive Plan, as amended from time to time (the “Plan”), which is incorporated herein by reference.  Unless otherwise provided herein, the terms in this Agreement shall have the same meaning as those defined in the Plan.  

2. Transfer Restrictions.  The Units may not be transferred in any manner other than by will or by the laws of descent and distribution.  

3. Delays in the Conversion of Units and Issuance of Shares.  

(a) Delay of Conversion.  The conversion of the Units into the Shares as set forth in the Notice shall be delayed in the event the Company reasonably anticipates that the issuance of the Shares would constitute a violation of federal securities laws or other Applicable Law.  If the conversion of the Units into the Shares is delayed by the provisions of this Section 3(a), the conversion of the Units into the Shares shall occur at the earliest date at which the Company reasonably anticipates issuing the Shares will not cause a violation of federal securities laws or other Applicable Law.  For purposes of this Section 3(a), the issuance of Shares that would cause inclusion in gross income or the application of any penalty provision or other provision of the Code is not considered a violation of Applicable Law.

(b) Delay of Issuance of Shares.  The Company shall delay the issuance of any Shares under the Notice and this Section 3 to the extent necessary to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “specified employees” of certain publicly-traded companies); in such event, any Shares to which the Grantee would otherwise be entitled during the six (6) month period following the date of the Grantee’s termination of Continuous Service will be issuable on the first business day following the expiration of such six (6) month period.

4. Right to Shares.  The Grantee shall not have any right in, to or with respect to any of the Shares (including any voting rights or rights with respect to dividends paid on the Common Stock) issuable under the Award until the Award is settled by the issuance of such Shares to the Grantee; provided, however, that vested Units that have not been settled shall accrue amounts equivalent to the dividends declared on the number of Shares subject to such vested Units, which amounts shall be paid in cash without interest to the Grantee at the time such Units are settled as set forth in the Notice (or, if later, upon payment of the dividend).  

 

 

5. Restrictive Covenants.  Grantee acknowledges and agrees that Grantee’s eligibility for, receipt of, and vesting of the Award is conditioned upon Grantee’s compliance at all times with (a) the Company’s Proprietary Information Agreement entered into between the Grantee and the Company and (b) the Company’s governance policies, including, without limitation, the Company’s Code of Business Conduct and Ethics.

6. Taxes.  

(a) Tax Liability.  The Grantee is ultimately liable and responsible for all taxes owed by the Grantee in connection with the Award, regardless of any action the Company or any Related Entity takes with respect to any tax withholding obligations that arise in connection with the Award.  Neither the Company nor any Related Entity makes any representation or undertaking regarding the treatment of any tax withholding in connection with any aspect of the Award, including the grant, vesting, assignment, release or cancellation of the Units, the delivery of Shares, the subsequent sale of any Shares acquired upon vesting and the receipt of any dividends or dividend equivalents.  The Company does not commit and is under no obligation to structure the Award to reduce or eliminate the Grantee’s tax liability.

(b) Payment of Withholding Taxes.  Prior to any event in connection with the Award (e.g., vesting) that the Company determines may result in any tax withholding obligation, whether United States federal, state, local or non-U.S., including any social insurance, employment tax, payment on account or other tax-related obligation (the “Tax Withholding Obligation”), the Grantee must arrange for the satisfaction of the minimum amount of such Tax Withholding Obligation in the manner described within this Section 6(b).  If the Award is settled in Shares, then at any time not less than five (5) business days (or such fewer number of business days as determined by the Administrator) before any Tax Withholding Obligation arises (e.g., a vesting date), the Grantee may elect to satisfy the Grantee’s Tax Withholding Obligation by delivering to the Company an amount that the Company determines is sufficient to satisfy the Tax Withholding Obligation by (x) wire transfer to such account as the Company may direct, (y) delivery of a certified check payable to the Company, or (z) such other means as specified from time to time by the Administrator.  If Grantee does not make such arrangements, the Company shall withhold from those Shares otherwise issuable to the Grantee the whole number of Shares sufficient to satisfy the minimum applicable Tax Withholding Obligation.  The Grantee acknowledges that the withheld Shares may not be sufficient to satisfy the Grantee’s minimum Tax Withholding Obligation.  Accordingly, in that event, the Grantee agrees to pay to the Company or any Related Entity as soon as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the withholding of Shares described above.  In the event that the Company elects to settle the Award by making a cash payment in lieu of the issuance of Shares as described in the Notice, the Company shall withhold from the cash amount otherwise payable to the Grantee an amount sufficient to satisfy the minimum applicable Tax Withholding Obligation.

7. Entire Agreement; Governing Law.  The Notice, the Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and the Grantee.  These 

2

 

agreements are to be construed in accordance with and governed by the internal laws of the State of California without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights and duties of the parties.  Should any provision of the Notice or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

8. Construction.  The captions used in the Notice and this Agreement are inserted for convenience and shall not be deemed a part of the Award for construction or interpretation.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

9. Administration and Interpretation.  Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Agreement shall be submitted by the Grantee or by the Company to the Administrator.  The resolution of such question or dispute by the Administrator shall be final and binding on all persons.  

10. Venue and Jurisdiction.  The parties agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be brought exclusively in the United States District Court for the Northern District of California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a California state court in the County of Alameda) and that the parties shall submit to the jurisdiction of such court.  The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court.  If any one or more provisions of this Section 10 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

11. Notices.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.

12. Data Privacy.  

(a) The Grantee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee’s personal data as described in the Notice and this Agreement by and among, as applicable, the Grantee’s employer, the Company and any Related Entity for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan.  

(b) The Grantee understands that the Company and the Grantee’s employer may hold certain personal information about the Grantee, including, but not limited to, the Grantee’s name, home address and telephone number, date of birth, social insurance or other identification 

3

 

number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Units or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding in the Grantee’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).  

(c) The Grantee understands that Data will be transferred to any third party assisting the Company with the implementation, administration and management of the Plan.  The Grantee understands that the recipients of the Data may be located in the Grantee’s country, or elsewhere, and that the recipients’ country may have different data privacy laws and protections than the Grantee’s country.  The Grantee understands that the Grantee may request a list with the names and addresses of any potential recipients of the Data by contacting the Grantee’s local human resources representative.  The Grantee authorizes the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Grantee’s participation in the Plan.  The Grantee understands that Data will be held only as long as is necessary to implement, administer and manage the Grantee’s participation in the Plan.  The Grantee understands that the Grantee may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Grantee’s local human resources representative.  The Grantee understands, however, that refusal or withdrawal of consent may affect the Grantee’s ability to participate in the Plan.  For more information on the consequences of the Grantee’s refusal to consent or withdrawal of consent, the Grantee understands that the Grantee may contact the Grantee’s local human resources representative.

13. Language.  If the Grantee has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control, unless otherwise prescribed by Applicable Law. 

14. Amendment and Delay to Meet the Requirements of Section 409A.  The Grantee acknowledges that the Company, in the exercise of its sole discretion and without the consent of the Grantee, may amend or modify this Agreement in any manner and delay the issuance of any Shares issuable pursuant to this Agreement to the minimum extent necessary to meet the requirements of Section 409A of the Code as amplified by any Treasury regulations or guidance from the Internal Revenue Service as the Company deems appropriate or advisable.  In addition, the Company makes no representation that the Award will comply with Section 409A of the Code and makes no undertaking to prevent Section 409A of the Code from applying to the Award or to mitigate its effects on any deferrals or payments made in respect of the Units.  The Grantee is encouraged to consult a tax adviser regarding the potential impact of Section 409A of the Code.

END OF AGREEMENT

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]