Document:

kontoor2021ex1041formofa

Exhibit 10.41      WBD (US) 53567681v5  KONTOOR BRANDS, INC.   AWARD CERTIFICATE   Restricted Stock Units  (Standard Form)  Number of RSUs Awarded: __________  To:   _______________ (the “Participant”)  I am pleased to advise you that you have been awarded the number of Restricted Stock Units (“RSUs”) set forth above  under Kontoor Brands, Inc.’s 2019 Stock Compensation Plan (as it may be amended, the “2019 Plan”), subject to the  terms and conditions set forth in the 2019 Plan and the attached Appendix.    KONTOOR BRANDS, INC.  By:    Tammy Heller  Chief Human Resources Officer  Grant Date:  _________________ 

 

    WBD (US) 53567681v5  KONTOOR BRANDS, INC.  APPENDIX TO   AWARD CERTIFICATE   Terms and Conditions Relating to  Restricted Stock Units  (Standard Form)   1.   Grant of RSUs.  (a) Grant of RSUs Under 2019 Plan.  Participant has been granted the Restricted Stock Units (“RSUs”)  specified in the Award Certificate under the Kontoor Brands, Inc. (the “Company”) 2019 Plan, copies of which have  been provided to Participant.  All of the terms, conditions, and other provisions of the 2019 Plan are hereby incorporated  by reference into this document.  Capitalized terms used in this document but not defined herein shall have the same  meanings as in the 2019 Plan.  If there is any conflict between the provisions of this document and the mandatory  provisions of the 2019 Plan, the provisions of the 2019 Plan shall govern.  By accepting the grant of the RSUs,  Participant agrees to be bound by all of the terms and provisions of the 2019 Plan (as presently in effect or later  amended), the rules and regulations under the 2019 Plan adopted from time to time, and the decisions and determinations  of the Committee made from time to time.   (b) Certain Restrictions.  Until RSUs have become vested in accordance with Section 2(e), RSUs shall be  subject to a risk of forfeiture as provided in the 2019 Plan and this document.  Until such time as each RSU has become  settled by delivery of a share in accordance with Section 3, such RSU will be nontransferable, as provided in the 2019  Plan and Section 2(d).  Participant is subject to the Company’s Code of Business Conduct and related policies on insider  trading restricting Participant’s ability to sell shares of the Company’s Common Stock received in settlement of RSUs,  which may include “blackout” periods during which Participant may not engage in such sales.  2. General Terms of RSUs.    (a) Nature of RSUs.  Each RSU represents a conditional right of Participant to receive, and a conditional  obligation of the Company to deliver, one share of the Company’s Common Stock at the times specified hereunder and  subject to the terms and conditions of the 2019 Plan and this document.  Each RSU constitutes an award under Article  VIII of the 2019 Plan (including Section 8.6 thereof), representing a bookkeeping unit which is an arbitrary accounting  measure created and used solely for purposes of the 2019 Plan and this Agreement.  RSUs do not represent ownership  rights in the Company, shares of Common Stock, or any asset of the Company.    (b) Account.  An account will be maintained for Participant for purposes of this Award, to which the total  number of RSUs granted and any RSUs resulting under Section 2(c) shall be credited.      (c) Dividend Equivalents and Adjustments.  Dividend equivalents (as defined below) shall be paid or credited  on RSUs as follows; provided, however, that (x) such dividend equivalents shall be subject to the same risk of forfeiture,  other restrictions and deferral of settlement, if applicable, as apply to the RSUs and (y) the Committee may vary the  manner and terms of crediting dividend equivalents, for administrative convenience or any other reason, provided that  the Committee determines that any alternative manner and terms result in equitable treatment of Participant:    (i)  Regular Cash Dividends. Each Stock Unit will carry with it the right to crediting of an amount  equal to dividends and distributions paid on a share of Common Stock (“dividend equivalents”),  which amounts will be deemed reinvested in additional Stock Units, at the Fair Market Value of  Common Stock at the dividend payment date.     

 

2  WBD (US) 53567681v5  (ii) Common Stock Dividends and Splits.  If the Company declares and pays a dividend or distribution on  Common Stock in the form of additional shares of Common Stock, or there occurs a forward split of  Common Stock, then the number of RSUs credited to Participant’s Account as of the payment date for  such dividend or distribution or forward split shall be automatically adjusted by multiplying the  number of RSUs credited to the Account as of the record date for such dividend or distribution or split  by the number of additional shares of Common Stock actually paid as a dividend or distribution or  issued in such split in respect of each outstanding share of Common Stock.    (iii) Adjustments. If the Company declares and pays a dividend or distribution on Common Stock that is not  a regular cash dividend and not in the form of additional shares of Common Stock, or if there occurs  any other event referred to in Article XI of the 2019 Plan, the Committee shall adjust the number of  RSUs credited to Participant’s Account in a manner that will prevent dilution or enlargement of  Participant’s rights with respect to RSUs, in an equitable manner determined by the Committee.  In  addition, the Committee may vary the manner and terms of crediting dividend equivalents during or  following the end of the vesting period(s), for administrative convenience or any other reason,  provided that the Committee determines that any alternative manner and terms result in equitable  treatment of Participant.      (iv) Risk of Forfeiture and Settlement of Dividend Equivalents and RSUs Resulting from Dividend  Equivalents and Adjustments.   Rights to dividend equivalents and RSUs which directly or indirectly  result from dividend equivalents on or adjustments to an RSU shall be subject to the same risk of  forfeiture as applies to the granted RSU and will be settled at the same time as the granted RSU.      (d) Non-Transferability.  Unless otherwise determined by the Committee, neither Participant nor any beneficiary  shall have the right to, directly or indirectly, alienate, assign, transfer, pledge, anticipate, or encumber (except by reason  of death) any RSU, Account or Account balance, or other right hereunder, nor shall any such RSU, Account or Account  balance, or other right be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment,  or garnishment by creditors of Participant or any beneficiary, or to the debts, contracts, liabilities, engagements, or torts  of Participant or any beneficiary or transfer by operation of law in the event of bankruptcy or insolvency of Participant or  any beneficiary, or any legal process.     (e) Vesting and Forfeiture.  The “Stated Vesting Date” of the RSUs will be as follows: [__] of the RSUs will  have a Stated Vesting Date on [the first anniversary of the Grant Date], [__] of the RSUs will have a Stated Vesting Date  on [the second anniversary of the Grant Date] and [__] of the RSUs will have a Stated Vesting Date on [the third  anniversary of the Grant Date] [Modify vesting as appropriate], except as otherwise provided herein, if the Participant  continues to be an employee of the Company or any of its subsidiaries or affiliates through the applicable Stated Vesting  Date.   Except to the extent set forth herein, upon a Participant’s Termination of Employment prior to the vesting of RSUs at an  applicable Stated Vesting Date, all unvested RSUs shall be canceled and forfeited and Participant shall have no further  rights hereunder.   (i) If Termination of Employment is an involuntary separation by the Company not for Cause, a Pro Rata  Portion (as defined below) of the RSUs shall vest at the next Stated Vesting Date, with any unvested  RSUs in excess of such Pro Rata Portion canceled and forfeited.   (ii) If Termination of Employment is due to Participant’s Retirement, the RSUs shall vest at the Stated  Vesting Date(s) in full, without proration. If Termination of Employment is due to Participant’s Early  Retirement (as defined below), a Pro Rata Portion (as defined below) of the RSUs shall vest at the next  Stated Vesting Date, with any unvested RSUs in excess of such Pro Rata Portion canceled and  forfeited.  For the purposes herein, (A) “Retirement” shall mean Participant’s Termination of  Employment when the aggregate of the Participant’s age plus years of service equals at least 65; and  (B) “Early Retirement” shall mean Participant’s Termination of Employment when the aggregate of  the Participant’s age plus years of service is at least 62; provided that, unless the Committee  determines otherwise, in the case of both Retirement and Early Retirement, (X) in no event shall a  Termination of Employment be deemed a Retirement or Early Retirement unless Participant at the date  of his or her Termination of Employment is at least age 55 and has at least two years of service; and  

 

3  WBD (US) 53567681v5  (Y) a Termination of Employment shall not be deemed a Retirement or Early Retirement unless the  Participant provides at least six (6) months’ written notice of his or her intent to retire to the Company  prior to his or her date of Termination of Employment in form acceptable to the Committee.  (iii) If Termination of Employment is due to Participant’s death or Disability (as defined below), the RSUs  shall immediately vest in full, without proration.   In addition, and notwithstanding anything in this Certificate to the contrary, the RSUs shall be forfeited and shall  terminate immediately on the Participant’s date of Termination of Employment for any reason (the date of Termination  of Employment will be determined without giving effect to any period during which severance payments may be made to  a Participant) prior to the first anniversary of the Grant Date.  (f) Clawback.  The RSUs are subject to the Company’s Forfeiture Policy for Equity and Incentive Awards or  other forfeiture or recoupment policies or arrangements, each as in effect from time to time and as applicable to  Participant.  Such policies or arrangements impose conditions that may result in forfeiture of the RSUs or the proceeds to  Participant resulting from the RSUs (a so-called “clawback”) in certain circumstances if the Company’s financial  statements are required to be restated as a result of misconduct or upon the occurrence of other events as described in  such policies or arrangements.    (g) Certain Definitions.  The following definitions apply for purposes of this Agreement (as such terms may be  interpreted by the Committee):    (i) “Cause” means (i), if the Participant has an Employment Agreement defining “Cause,” the definition  under such Employment Agreement, or (ii), if the Participant has no Employment Agreement defining  “Cause,” the Participant’s gross misconduct, meaning (A) the Participant’s willful and continued  refusal substantially to perform his or her duties with the Company (other than any such refusal  resulting from his or her incapacity due to physical or mental illness), or (B) the willful engaging by  the Participant in gross misconduct materially and demonstrably injurious to the Company.  For  purposes of this definition, 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 his or her action or omission was in the best interest of the Company.    (ii) “Disability” means (A), if Participant has an Employment Agreement defining “Disability,” the  definition under such Employment Agreement, or (B), if Participant has no Employment Agreement  defining “Disability,” Participant’s incapacity due to physical or mental illness resulting in  Participant’s absence from his or her duties with the Company or any of its subsidiaries or affiliates on  a full-time basis for 26 consecutive weeks, and, within 30 days after written notice of termination has  been given by the Company, Participant has not returned to the full-time performance of his or her  duties.    (iii) “Pro Rata Portion” means a fraction the numerator of which is the number of days that have elapsed  from the Grant Date to the date of Participant’s Termination of Employment (or in the case of an  involuntary separation by the Company not for Cause, the payment of the final installment of  severance pay, if any) and the denominator of which is the number of days from the Grant Date to the  applicable Stated Vesting Date; provided, however, that the Pro Rata Portion may not exceed 100%.    (iv) “Termination of Employment” means Participant’s termination of employment with the Company or  any of its subsidiaries or affiliates in circumstances in which, immediately thereafter, Participant is not  employed by the Company or any of its subsidiaries or affiliates.  Service as a non-employee director  shall not be treated as employment for purposes of this Agreement.                

 

4  WBD (US) 53567681v5  3. Settlement of RSUs.  (a) Settlement Date.  Vested RSUs will be settled by delivery of one share of Common Stock for each RSU,  together with dividend equivalent amounts payable under Section 2(c).  Such settlement will occur within 15 business  days after the date on which the RSUs become vested (including vesting at a Stated Vesting Date following termination,  as provided in Section 2(e)).  Delivery of shares in settlement of RSUs will take place as promptly as practicable after the  settlement date (but not later than 15 business days after the designated settlement date). In the event of Participant’s  termination due to death or Disability, the certificates representing shares of vested RSUs shall be delivered on or before  the 60th day following the Termination of Employment due to death or Disability (subject to Section 3(b), which may  require a six-month delay in the event of Termination of Employment due to Disability).   (b) Certain Limitations to Ensure Compliance with Code Section 409A.  For purposes of this Agreement,  references to a term or event (including any authority or right of the Company or Participant) being “permitted” under  Section 409A of the Internal Revenue Code (the “Code”) mean that the term or event will not cause Participant to be  liable for payment of interest or a tax penalty under Section 409A.  The provisions of the 2019 Plan and other provisions  of this Agreement notwithstanding, the terms of the RSUs, including any authority of the Company and rights of  Participant, shall be limited to those terms permitted under Section 409A, and any terms not permitted under Section  409A shall be automatically modified and limited to the extent necessary to conform with Section 409A.  For this  purpose, the Company shall have no authority to accelerate distributions relating to RSUs in excess of the authority  permitted under Section 409A, and, if the timing of any distribution in settlement of RSUs would result in Participant’s  constructive receipt of income relating to the RSUs prior to such distribution, the date of distribution will be the earliest  date after the specified date of distribution that distribution can be effected without resulting in such constructive receipt  (thus, for example, if RSUs were deemed to be a deferral of compensation under Code Section 409A, any distribution in  settlement of RSUs subject to Section 409A(a)(2)(A)(i) (separation from service) would be triggered only by a  “separation from service” under Treasury Regulation Section 1.409A-1(h) and, if the Participant were a “specified  employee” under Treasury Regulation Section 1.409A-1(i), such distribution would be delayed until six months after  such separation from service other than due to death).     (c) Delivery of Common Stock.  Whenever Common Stock is to be delivered hereunder, the Company shall  deliver to Participant or Participant’s Beneficiary one or more certificates representing the shares of Common Stock,  registered in the name of Participant, the Beneficiary, or in such other form of registration as instructed by Participant,  except that the Company may provide for alternative methods of delivery for administrative convenience.  The  obligation of the Company to deliver Common Stock hereunder is conditioned upon compliance by Participant and by  the Company with all applicable federal and state securities and other laws and regulations.   The Company may  determine the manner in which fractional shares of Common Stock shall be dealt with upon settlement of RSUs;  provided, however, that no certificate shall be issued representing a fractional share.   If there occurs any delay between  the settlement date and the date shares are issued or delivered to Participant, a cash amount equal to any dividends or  distributions the record date for which fell between the settlement date and the date of issuance or delivery of the shares  shall be paid to Participant together with the delivery of the shares.    4.   Tax Withholding.  If withholding is required by applicable law, the Company shall withhold from the cash and shares deliverable in  settlement of RSUs (including a deferred settlement) such cash amount together with the number of shares having an  aggregate Fair Market Value equal to the mandatory withholding requirements (but rounded to the nearest whole share).   Unless otherwise prohibited by the Committee (and subject to any additional conditions that may be imposed by the  Committee), the Participant may elect to satisfy such tax withholding obligations, if any, by means of delivering or  withholding shares of Common Stock in accordance with Section 12.4 of the Plan.  5. Miscellaneous.    (a) Binding Effect; Written Amendments.  The terms and conditions set forth in this document shall be binding  upon the heirs, executors, administrators and successors of the parties. The Award Certificate and this document  constitute the entire agreement between the parties with respect to the RSUs and supersede any prior agreements or  documents with respect thereto.  No amendment, alteration, suspension, discontinuation or termination of this document  

 

5  WBD (US) 53567681v5  which may impose any additional obligation upon the Company or materially adversely affect the rights of Participant  with respect to the RSUs shall be valid unless in each instance such amendment, alteration, suspension, discontinuation  or termination is expressed in a written instrument duly executed in the name and on behalf of the Company and, if  Participant’s rights are materially adversely affected thereby, by Participant.    (b) No Promise of Employment.  The RSUs and the granting thereof shall not constitute or be evidence of any  agreement or understanding, express or implied, that Participant has a right to continue as an officer, employee, director  or other service provider of the Company or its subsidiaries for any period of time, or at any particular rate of  compensation.     (c) Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be  governed by the laws (but not the law of conflicts of laws) of the State of North Carolina and applicable federal law.    (d)  Unfunded Obligations.  The grant of the RSUs and any provision for distribution in settlement of  Participant’s Account hereunder shall be by means of bookkeeping entries on the books of the Company and shall not  create in Participant any right to, or claim against any, specific assets of the Company, nor result in the creation of any  trust or escrow account for Participant.  With respect to Participant’s entitlement to any distribution hereunder,  Participant shall be a general creditor of the Company.    (e) Notices.  Any notice to be given the Company under this Agreement shall be addressed to the Company at its  principal executive offices, in care of the Vice President–Human Resources, and any notice to Participant shall be  addressed to Participant at Participant’s address as then appearing in the records of the Company.    (f) Shareholder Rights.  Participant and any beneficiary shall not have any rights with respect to shares  (including voting rights) covered by this Agreement prior to the settlement and distribution of the shares as specified  herein.    (g) Voluntary Participation.  Participant’s participation in the Plan is voluntary.  The value of the RSUs is an  extraordinary item of compensation.  As such, the RSUs are not part of normal or expected compensation for purposes of  calculating any severance, change in control payments, resignation, redundancy, end of service payments, bonuses, long- service awards, pension or retirement benefits or similar payments.kontoor2021ex1042formofa

Exhibit 10.42    Standard Form  WBD (US) 53567099v5    KONTOOR BRANDS, INC.    AWARD CERTIFICATE    Performance-Based Restricted Stock Units (“PRSUs”) for   Three-Year Performance Cycle Fiscal Years 20[__]-20[__]under the  Mid-Term Incentive Plan  (Standard Form)          Target PRSUs Awarded: _________             To: __________________ (the “Participant”)    I am pleased to advise you that you have been awarded the opportunity to earn from 0% to  200% of the number of Performance-Based Restricted Stock Units set forth above under the  Mid-Term Incentive Plan of Kontoor Brands, Inc. (the “Company”) for the Performance  Cycle commencing at the beginning of fiscal 20[__] and ending on the final day of fiscal 20[__]  under the terms and conditions set forth in the attached Appendix.  The actual number of  shares of the Company’s Stock, if any, that you may receive at the end of the Performance  Cycle will depend, among other things as described in the Appendix, on the level of  achievement over the Performance Cycle of specified performance goals set by the Talent  and Compensation Committee of the Company’s Board of Directors.             KONTOOR BRANDS, INC.                            By: __________________________          Tammy Heller         Chief Human Resources Officer            Grant Date:  ______________           

 

    Page 2  WBD (US) 53567099v5  KONTOOR BRANDS, INC.    APPENDIX TO     PRSUs AWARD CERTIFICATE  (i) Terms and Conditions Relating to  Performance-Based Restricted Stock Units (“PRSUs”)  (Standard Form)  1. Opportunity to Earn PRSUs.  Participant has been designated as having the opportunity to earn Performance-Based  Restricted Stock Units (“PRSUs”) under the Kontoor Brands, Inc. (the “Company”) Mid-Term Incentive  Plan, as it may be amended (the “Mid-Term Plan”), for the three-fiscal-year Performance Cycle specified  in the Award Certificate (the “Performance Cycle”).  Subject to the terms and conditions of the Mid-Term  Plan and this Agreement, Participant will have the opportunity to earn from 0% to [200%] of the targeted  number of PRSUs (the “Target PRSUs”) for the Performance Cycle.  The number of Target PRSUs shall  be the number set forth on the Award Certificate plus additional cash or PRSUs resulting from Dividend  Equivalents and adjustments, as specified in Section 3(c).  2. Incorporation of Plans by Reference; Certain Restrictions.  (a) PRSUs that may be earned by the Participant represent Stock Units under the  Company’s Mid-Term Plan (as it may be amended, the “Mid-Term Plan”) and 2019 Stock Compensation  Plan (as it may be amended, the “2019 Plan”), copies of which have been made available to Participant.   All of the terms, conditions, and other provisions of the Mid-Term Plan and the 2019 Plan (together, the  “Plans”) are hereby incorporated by reference into this document.  Except as otherwise provided herein,  capitalized terms used in this document but not defined herein shall have the same meanings as in the Mid- Term Plan.  If there is any conflict between the provisions of this document and the provisions of the Plans,  the provisions of the 2019 Plan shall govern.  (b) Until PRSUs have become earned in accordance with Section 4, PRSUs shall be  subject to a risk of forfeiture as provided in the Plans and this document. Until such time as the PRSUs  have become settled by delivery of shares in accordance with Section 6, PRSUs will be nontransferable, as  provided in the Plans and Section 3(d). Participant is subject to the Company’s Code of Business Conduct  and related policies on insider trading restricting Participant’s ability to sell shares of the Company’s  Common Stock received in settlement of PRSUs, which may include “blackout” periods during which  Participant may not engage in such sales.  3. General Terms of PRSUs.  (a) Each PRSU represents a conditional right of the Participant to receive, and a  conditional obligation of the Company to deliver, one share of the Company’s Common Stock, at the times  specified hereunder and subject to the terms and conditions of the Plans and this document.  (b) Not later than the Determination Date specified in Section 6(c) of the Mid-Term  Plan following the end of a given Performance Cycle, the Committee will make a final determination of the  

 

    Page 3  WBD (US) 53567099v5  extent to which the performance goals for that Performance Cycle were achieved and the number of PRSUs  earned for that Performance Cycle.    (c) An account will be maintained for Participant for purposes of the Mid-Term Plan,  to which the initial number of Target PRSUs for each Performance Cycle initially shall be credited.   Dividend Equivalents will be credited on the PRSUs in accordance with Section 7(b) of the Mid-Term Plan.   The Committee may vary the manner and terms of crediting Dividend Equivalents during or following the  end of the Performance Cycle, for administrative convenience or any other reason, provided that the  Committee determines that any alternative manner and terms result in equitable treatment of Participant  and subject to the provisions of Section 7(b) of the Mid-Term Plan.  The number of Target PRSUs and the  terms of PRSUs will be subject to adjustment upon the occurrence of certain extraordinary corporate events  specified in Section 7(b) of the Mid-Term Plan and otherwise in accordance with Section 6(b) of the Mid- Term Plan, such adjustments to be made by the Committee in order to prevent dilution or enlargement of  Participant’s opportunity to earn incentive compensation under this Agreement.  Thus, the percentage of  Target PRSUs earned under Section 4 will include the additional cash or PRSUs resulting from the crediting  of Dividend Equivalents.  (d) PRSUs are non-transferable to the extent specified in Section 9(h) of the Mid-Term  Plan.  4. Earning of PRSUs.  (a) PRSUs for the Performance Cycle will be earned in accordance with Sections 6(a)  and 6(c) of the Mid-Term Plan as follows:  The Performance Goal set forth herein must be achieved at the levels specified by the  Committee in order for PRSUs to be earned for the Performance Cycle.  Performance shall be based on the  Company’s ability to achieve the [annual] growth targets for [Earnings Per Share and Cash Flow] [Insert  performance goals], as defined and interpreted by the Committee, by the end of the Performance Cycle, and  further subject to the Committee’s discretion to impose a modifier such as total shareholder return and/or  to impose or modify performance terms and condition(s)).  To determine the number of PRSUs earned, the  growth targets achieved will be averaged together. For this purpose, the designation of target performance,  the achievement of which is required for the earning of the Target PRSUs, and threshold and maximum  performance and the corresponding number of PRSUs deemed earned (with the maximum level of  performance corresponding to the earning of ]200%] of the target number of PRSUs), have been (or will  be) specified by the Committee for the fiscal years in the Performance Cycle.   Performance and the percentage of Target PRSUs earned will be interpolated, if the  performance achieved is between threshold and target or between target and maximum.  The Committee  retains complete discretion in setting the financial goals and related terms that are incorporated into this  Performance Goal.  (b) At the Determination Date, at which time the Committee will have determined  whether and the extent to which the Performance Goals designated by the Committee in accordance with  this Section 4 have been achieved and made other determinations authorized hereunder, any PRSUs that  are determined to have not been earned shall cease to be earnable and shall be cancelled.  5. Effect of Termination of Employment.  (a) Upon Participant’s Termination of Employment prior to the end of a given  Performance Cycle, the Participant’s unearned PRSUs relating to that Performance Cycle shall cease to be  

 

    Page 4  WBD (US) 53567099v5  earnable and shall be cancelled, except to the extent (X) provided in Section 8 of the Mid-Term Plan (which  provides for settlement of a specified portion of the PRSUs in certain cases of death, disability, Retirement,  termination by the Company not for Cause, and certain other circumstances, including certain terminations  following a Change in Control) or (Y) otherwise provided herein.  (b) Notwithstanding the provisions of Section 5(a) herein, the following provisions  shall apply in the event of Participant’s Retirement or Early Retirement:  (i) In the event of Participant’s Termination of Employment due to  Retirement (as defined herein), the Participant shall be entitled to receive settlement of the total  number of PRSUs actually earned for the Performance Cycle in accordance with Section 6(c) of  the Mid-Term Plan as accordance with the terms of Section 8(a)(i) of the Mid-Term Plan. For the  purposes herein, “Retirement” shall mean a Termination of Employment when the aggregate of  Participant’s age plus years of service equals at least 65, provided that, unless the Committee  determines otherwise, (A) in no event shall a Termination of Employment be deemed a Retirement  unless Participant at the date of his or her Termination of Employment is at least age 55 and has at  least two years of service; and (B) a Termination of Employment shall not be deemed a Retirement  unless the Participant provides at least six (6) months’ written notice of his or her intent to retire to  the Company prior to his or her date of Termination of Employment in form acceptable to the  Committee.  (ii) In the event of Participant’s Termination of Employment due to Early  Retirement (as defined herein), the Participant shall be entitled to receive settlement of a Pro Rata  Portion of the total number of PRSUs that would have been actually earned for the Performance  Cycle in accordance with Section 6(c) of the Mid-Term Plan, assuming for this purpose that  Participant had continued employment throughout the Performance Cycle.  The proration date shall  be date of Participant’s Termination of Employment. For the purposes herein, “Early Retirement”  shall mean a Termination of Employment when the aggregate of Participant’s age plus years of  service equals at least 62, provided that, unless the Committee determines otherwise, (A) in no  event shall a Termination of Employment be deemed an Early Retirement unless Participant at the  date of his or her Termination of Employment is at least age 55 and has at least two years of service;  and (B) a Termination of Employment shall not be deemed an Early Retirement unless the  Participant provides at least six (6) months’ written notice of his or her intent to retire to the  Company prior to his or her date of Termination of Employment in form acceptable to the  Committee. The settlement of PRSUs for any such Performance Cycle shall occur promptly (and  in any event not later than the Settlement Deadline) following completion of that Performance  Cycle.  Any deferral election filed by Participant shall be effective and apply at the time of  settlement of the PRSUs.  6. Settlement of PRSUs.  (a) PRSUs that are earned will be settled by delivery of one share of Common Stock  for each PRSU.  Such settlement will occur in accordance with Section 9 of the Mid-Term Plan. Participant  may not elect to defer receipt of Common Stock issuable in settlement of PRSUs.  (b) Whenever Common Stock is to be delivered hereunder, the Company shall deliver  to the Participant or the Participant’s Beneficiary one or more certificates representing the shares of  Common Stock, registered in the name of the Participant, the Beneficiary, or in such other form of  registration as instructed by the Participant, except that the Committee may provide for alternative methods  of delivery for administrative convenience.  The obligation of the Company to deliver Common Stock  

 

    Page 5  WBD (US) 53567099v5  hereunder is conditioned upon compliance by the Participant and by the Company with all applicable  Federal and state securities and other laws and regulations.  7. Tax Withholding.  Participant shall be responsible for payment of any federal, state, foreign or local taxes of  any amount required to be paid with respect to the grant or settlement of the PRSUs and any Dividend  Equivalents or otherwise in connection with the PRSUs.  In furtherance of the tax withholding obligations  imposed under Section 9(g) of the Mid-Term Plan, the Company will withhold from cash payable as  Dividend Equivalents and from the shares deliverable in settlement of PRSUs cash plus the number of  shares having an aggregate Fair Market Value the sum of which shall equal applicable governmental tax  withholding requirements, but with share withholding rounded to the nearest whole share.  8. Binding Effect; Integration; Amendment.  The terms and conditions set forth in this document shall be binding upon the heirs,  executors, administrators and successors of the parties.  The Award Certificate, this document, and the  Plans constitute the entire agreement between the parties with respect to the PRSUs and supersede any prior  agreements or documents with respect thereto.  No amendment, alteration, suspension, discontinuation or  termination of this document that may impose any additional obligation upon the Company or materially  adversely affect the rights of the Participant with respect to the PRSUs shall be valid unless in each instance  such amendment, alteration, suspension, discontinuation or termination is expressed in a written instrument  duly executed in the name and on behalf of the Company and, if Participant’s rights are materially adversely  affected thereby, by Participant.  9. PRSUs subject to Forfeiture Policy for Equity and Incentive Awards.  The PRSUs subject to this Award Certificate are subject to the Company’s Forfeiture  Policy for Equity and Incentive Awards or other forfeiture or recoupment policies or arrangements, each as  in effect from time to time and as applicable to Participant.  Such policies or arrangements impose  conditions that may result in forfeiture of such PRSUs or the proceeds to Participant resulting from such  PRSUs (a so-called “clawback”) in certain circumstances if the Company’s financial statements are  required to be restated as a result of misconduct or upon the occurrence of other events as described in such  policies or arrangements.  10. Miscellaneous.  (a) No Promise of Continued Employment.  The PRSUs and the granting thereof shall  not constitute or be evidence of any agreement or understanding, express or implied, that Participant has a  right to continue as an employee or service provider of the Company for any period of time, or at any  particular rate of compensation.  (b) Governing Law.  The validity, interpretation, construction and performance of this  Agreement shall be governed by the laws (but not the law of conflicts of laws) of the State of North Carolina  and applicable federal law.  (c) Unfunded Obligations.  The grant of the PRSUs and any provision for distribution  in settlement of Participant’s Account hereunder shall be by means of bookkeeping entries on the books of  the Company and shall not create in Participant any right to, or claim against any, specific assets of the  Company, nor result in the creation of any trust or escrow account for Participant.  With respect to  

 

    Page 6  WBD (US) 53567099v5  Participant’s entitlement to any distribution hereunder, Participant shall be a general creditor of the  Company.  (d) Notices.  Any notice to be given the Company under this Agreement shall be  addressed to the Company at its principal executive offices, in care of the Vice President–Human  Resources, and any notice to Participant shall be addressed to Participant at Participant’s address as then  appearing in the records of the Company.  (e) Shareholder Rights.  Participant and any beneficiary shall not have any rights with  respect to shares (including voting rights) covered by this Agreement prior to the settlement and distribution  of the shares as specified herein.

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