Document:

ex10_2.htm

    Exhibit
      10.2

    

    (As
      revised effective February 15, 2008)

    

    DOLLAR
      TREE STORES, INC.

    STANDARD
      RESTRICTED STOCK UNIT AWARD AGREEMENT

     

    NOTE:
      This document incorporates the accompanying Grant Letter, and together they
      constitute a single Agreement which governs the terms and conditions of your
      Award in accordance with the Company’s 2003 Equity Incentive Plan or 2004
      Executive Officer Equity Plan, as applicable.

     

    THIS
      AGREEMENT (“Agreement”), is effective as of the Grant Date specified in the
      accompanying Grant Letter, by and between the Participant and Dollar Tree
      Stores, Inc. (together with its subsidiaries, “Company”).

     

    A.
      The
      Company maintains both the 2003 Equity Incentive Plan (“EIP”) and the 2004
      Executive Officer Equity Plan (“EOEP”).

     

    B.
      The
      Participant has been selected by the committee administering the EIP and EOEP
      (“Committee”) to receive a Restricted Stock Unit Award under one of these
      plans.

     

    C.
      Key
      terms and important conditions of the Award are set forth in the cover letter
      (“Grant Letter”) which was delivered to the Participant at the same time as this
      document. This Agreement contains general provisions relating to the Award.
      The
      Grant Letter specifies whether the Award is issued under the EIP or the EOEP
      (whichever is applicable, the “Plan”).

     

    IT
      IS
      AGREED, by and between the Company and the Participant, as follows:

     

    1.
Terms
      of Award. The
      following terms used in this Agreement shall have the meanings set forth in
      this
      paragraph 1:

     

    (a)
      The
“Participant” is the individual named in the Grant Letter.

     

    (b)
      The
“Grant Date” is the date of the Grant Letter.

     

    (c)
      The
“Units” means an award denominated in shares of the Company’s Stock as specified
      in the Grant Letter.

     

    (d)
      The
“Restricted Period” shall begin on the Grant Date and extend, with respect to
      successive installments of Units (if any), until the dates and/or events
      specified in the Grant Letter. With respect to an Award conditioned on the
      achievement of one or more performance objectives set forth in the Grant Letter,
      the Restricted Period shall continue until the Committee issues its written
      determination that such performance objectives have been met.

     

    Other
      terms used in this Agreement are defined pursuant to paragraph 8 or elsewhere
      in
      this Agreement.

     

    2.
Award.
      Subject to the
      terms and conditions of this Agreement, the Participant is hereby granted the
      number of Units set forth in paragraph 1.

     

    3.
Settlement
      of Awards.
      The Company shall deliver to the Participant one share of Stock (or cash equal
      to the Fair Market Value of one share of Stock) for each vested Unit, as
      determined in accordance with the provisions of Grant Letter, which forms a
      part
      of this Agreement. The Units payable to the Participant in accordance with
      the
      provisions of this paragraph 3 shall be paid solely in shares of Stock, solely
      in cash based on the Fair Market Value of the Stock (determined as of the first
      business day next following the last day of the Restricted Period), or in a
      combination of the two, as determined by the Committee in its sole discretion,
      except that cash shall be distributed in lieu of any fractional share of
      Stock.

     

    4.
Time
      of Payment.
      Except as otherwise provided in this Agreement, payment of Units vested in
      accordance with the provisions of paragraph 5 will be delivered as soon as
      practicable after the end of the Restricted Period; provided that any cash
      payment or delivery of shares shall occur no later than the 15th
      day of
      the third month following the end of the calendar year during which the
      Restricted Period ends.  To the extent required by Section 409A of the
      Code, in the event the Participant is a “specified employee” as provided in
      Section 409A(a)(2)(i) on the Date of Termination (as defined below), any amounts
      payable hereunder shall be paid no earlier than the first business day after
      the
      six month anniversary of the Date of Termination.  Whether the
      Participant is a specified employee and whether an amount payable to the
      Participant hereunder is subject to Section 409A of the Code shall be determined
      by the Company.

     

    5.
Vesting
      and Forfeiture of
      Units.

     

    (a)
      If
      the Participant’s Date of Termination does not occur during the Restricted
      Period with respect to any Units, then, at the end of the Restricted Period
      for
      such Units, the Participant shall become vested only in those Units, and shall
      be entitled to settlement with respect to such Units free of all restrictions
      otherwise imposed by this Agreement.

     

    (b)
      The
      Participant shall become vested in the Units, and become entitled to settlement
      with respect to such Units free of all restrictions otherwise imposed by this
      Agreement, prior to the end of the Restricted Period, as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)
      The
      Participant shall become vested in Units as of the Participant’s Date of
      Termination prior to the date the Units would otherwise become vested, if the
      Participant’s Date of Termination occurs by reason of the Participant’s death,
      Disability or Retirement. Notwithstanding the foregoing, if the Award is
      conditioned on the achievement of one or more performance objectives set forth
      in the Grant Letter, then the Participant shall become vested under this
      paragraph 5(b)(i) only at the end of the then-current Restricted Period
      (assuming achievement of the performance objectives), pro-rated based on the
      ratio of actual months of employment by the Participant to the total number
      of
      months in the Restricted Period.

     

    (ii)
      The
      Participant shall become vested in Units as of the date of a Change in Control,
      if (i) the Change in Control occurs prior to the end of the Restricted Period,
      (ii) the Participant’s Date of Termination does not occur before the Change in
      Control date, and (iii) the Committee determines to accelerate such vesting.
      Notwithstanding the foregoing, if the Award is conditioned on the achievement
      of
      one or more performance objectives set forth in the Grant Letter, then the
      amount of Units subject to accelerated vesting under paragraph 5(b)(ii) shall
      not exceed the pro rata amount based on the ratio of actual months of employment
      by the Participant to the date of the Change of Control to the total number
      of
      months in the Restricted Period. The accelerated vesting of such pro rata
      portion may assume that the performance objectives will be met, with partial
      settlement of the Units to occur as soon as practical after the Change of
      Control. If in fact the performance objectives are not met at the end of the
      Restricted Period, then the Participant shall not be required to repay any
      amounts or forfeit any Stock on account of any distribution made under this
      paragraph 5(b)(ii). If the Committee determines to accelerate vesting of such
      an
      Award in this manner, then the remainder of the Award shall be unaffected,
      with
      settlement of such Award at the end of the original Restricted Period (assuming
      the performance objectives have been met), less any distribution made on account
      of accelerated vesting pursuant to this paragraph 5(b)(ii).

     

    (c)
      The
      Participant shall forfeit all unvested Units, except as otherwise provided
      in
      this paragraph 5:

     

    (i)
      as of
      the Participant’s Date of Termination

     

    (ii)
      as
      of the date on which the Committee determines the Participant materially
      violated (A) the provisions of paragraph 10 below or (B) any non-competition
      agreement which the Participant may have entered into with the Company,
      and

     

    (iii)
      as
      of the date on which the Committee determines that one or more of the
      performance objectives identified in the Grant Letter, if any, were not
      achieved.

    
       

    

    6.
Withholding.
      All
      deliveries and distributions under this Agreement are subject to withholding
      of
      all applicable taxes. The Company is entitled to (a) withhold and deduct from
      future wages of the Participant (or from other amounts due to Participant)
      or
      make other arrangements for the collection of all legally required amounts
      necessary to satisfy such withholding or (b) require the Participant promptly
      to
      remit such amounts to the Company. Subject to such rules and limitations as
      may
      be established by the Committee from time to time, the withholding obligations
      described in this Section 6 may be satisfied through the surrender of shares
      of
      Stock which the Participant already owns, or to which the Participant is
      otherwise entitled under the Plan, including shares of Stock to be settled
      under
      this Agreement.

     

    7.
Transferability.

     

    (a)
      Except as otherwise provided in paragraph 7(b), Units may not be sold, assigned,
      transferred, pledged or otherwise encumbered until the expiration of the
      Restricted Period or, if earlier, until the Participant is vested in the Units.
      Transfers at death are governed by paragraph 9(c) below.

     

    (b)
      The
      Participant, with the approval of the Committee, may transfer unvested Units
      during his or her lifetime for no consideration to or for the benefit of the
      Participant’s Immediate Family, subject to such limits as the Committee may
      establish, and the Participant and the transferee shall remain subject to all
      the terms and conditions applicable to the Restricted Units prior to such
      transfer (including without limitation all determinations as to vesting and
      forfeiture). The foregoing right to transfer the Units shall apply to the right
      to consent to amendments to this Agreement and, in the discretion of the
      Committee, shall also apply to the right to transfer ancillary rights associated
      with the Units, if any.

     

    (c)
      The
      term “Immediate Family” shall mean Participant’s child, stepchild, grandchild,
      parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
      mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
      or
      sister-in-law, including adoptive relationships, any person sharing the
      Participant’s household (other than a tenant or employee), a trust in which
      these persons have more than fifty percent of the beneficial interest, a
      foundation in which these persons (or the Participant) control the management
      of
      assets, and any other entity in which these persons (or the Participant) own
      more than fifty percent of the voting interests. The following transactions
      are
      not prohibited transfers for consideration: (i) a transfer under a domestic
      relations order in settlement of marital property rights; and (ii) a transfer
      to
      an entity in which more than fifty percent of the voting interests are owned
      by
      the Immediate Family (or the Participant) in exchange for an interest in that
      entity.

     

    8.
Definitions.
      For
      purposes of this Agreement, the terms used in this Agreement shall have the
      following meanings:

     

    (a)
      Change in Control. The term “Change in Control” has the meaning set forth in the
      Plan.

     

    (b)
      Date
      of Termination. The Participant’s “Date of Termination” shall be the first day
      occurring on or after the Grant Date on which the Participant is not employed
      by
      the Company or any Subsidiary, regardless of the reason for the termination
      of
      employment; provided that a termination of employment shall not be deemed to
      occur by reason of a transfer of the Participant between the Company and a
      Subsidiary or between two Subsidiaries; and further provided that the
      Participant’s employment shall not be considered terminated while the
      Participant is on a leave of absence from the Company or a Subsidiary approved
      by the Participant’s employer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)
      Disability. Except as otherwise provided by the Committee, the Participant
      shall
      be considered to have a “Disability” during the period in which the Participant
      is unable, by reason of a medically determinable physical or mental impairment,
      to engage in any substantial gainful activity, which condition, in the opinion
      of a physician selected by the Committee, is expected to have a duration of
      not
      less than 120 days.

     

    (d)
      Retirement. “Retirement” of the Participant shall mean, with the approval of the
      Committee, the occurrence of the Participant’s Date of Termination on or after
      the date the Participant attains age fifty-nine (59) years, six (6) months,
      following at least seven (7) years of service.

     

    (e)
      Plan
      Definitions. Except where the context clearly implies or indicates the contrary,
      a word, term, or phrase used in the Plan is similarly used in this
      Agreement.

     

    9.
Binding
      Effect; Heirs and
      Successors.

     

    (a)
      The
      terms and conditions of this Agreement shall be effective upon delivery to
      the
      Participant, with or without execution by the Participant.

     

    (b)
      This
      Agreement shall be binding upon, and inure to the benefit of, the Company and
      its successors and assigns, and upon any person acquiring, whether by merger,
      consolidation, purchase of assets or otherwise, all or substantially all of
      the
      Company’s assets and business.

     

    (c)
      If
      any rights exercisable by the Participant or benefits deliverable to the
      Participant under this Agreement have not been exercised or delivered,
      respectively, at the time of the Participant’s death, such rights shall be
      exercisable by the Designated Beneficiary, and such benefits shall be delivered
      to the Designated Beneficiary, in accordance with the provisions of this
      Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary or
      beneficiaries designated by the Participant in a writing filed with the
      Committee in such form and at such time as the Committee shall require. If
      a
      deceased Participant fails to designate a beneficiary, or if the Designated
      Beneficiary does not survive the Participant, any rights that would have been
      exercisable by the Participant and any benefits distributable to the Participant
      shall be exercised by or distributed to the legal representative of the estate
      of the Participant. If a deceased Participant designates a beneficiary and
      the
      Designated Beneficiary survives the Participant but dies before the Designated
      Beneficiary’s exercise of all rights under this Agreement or before the complete
      distribution of benefits to the Designated Beneficiary under this Agreement,
      then any rights that would have been exercisable by the Designated Beneficiary
      shall be exercised by the legal representative of the estate of the Designated
      Beneficiary, and any benefits distributable to the Designated Beneficiary shall
      be distributed to the legal representative of the estate of the Designated
      Beneficiary.

     

    10.
Disclosure
      of
      Information. The Participant recognizes and acknowledges that the
      Company’s trade secrets, confidential information, and proprietary information,
      including customer and vendor lists and computer data and programs (collectively
      “Confidential Information”), are valuable, special and unique assets of the
      Company’s business, access to and knowledge of which are essential to the
      performance of the Participant’s duties. The Participant will not, before or
      after his Date of Termination, in whole or in part, disclose such Confidential
      Information to any person or entity or make such Confidential Information public
      for any purpose whatsoever, nor shall the Participant make use of such
      Confidential Information for the Participant’s own purposes or for the benefit
      of any person or entity other than the Company under any circumstances before
      or
      after the Participant’s Date of Termination; provided that this prohibition
      shall not apply after the Participant’s Date of Termination to Confidential
      Information that has become publicly known through no action of the Participant.
      The Participant shall consider and treat as the Company’s property all
      memoranda, books, records, papers, letters, computer data or programs, or
      customer lists, including any copies thereof in human- or machine-readable
      form,
      in any way relating to the Company’s business or affairs, financial or
      otherwise, whether created by the Participant or coming into his or her
      possession, and shall deliver the same to the Company on the Date of Termination
      or, on demand of the Company, at any earlier time.

     

    11.
Administration.
      The
      authority to manage and control the operation and administration of this
      Agreement shall be vested in the Committee, and the Committee shall have all
      powers with respect to this Agreement as it has with respect to the Plan. Any
      interpretation of the Agreement by the Committee and any decision made by it
      with respect to the Agreement is final and binding on all persons. Such powers
      or decision-making may be delegated, to the extent permitted by the Plan, to
      one
      or more of Committee members or any other person or persons selected by the
      Committee.

     

    12.
Plan
      Governs.
      Notwithstanding anything in this Agreement to the contrary, the terms of this
      Agreement shall wholly incorporate and be subject to the terms of the Plan,
      a
      copy of which may be obtained from the Chief People Officer of the Company
      (or
      such other party as the Company may designate); and this Agreement is subject
      to
      all interpretations, amendments, rules and regulations promulgated by the
      Committee from time to time pursuant to the Plan.

     

    13.
No
      Implied
      Rights.

     

    (a)
      The
      award of Units will not confer on the Participant any right with respect to
      continuance of employment or other service with the Company or any Subsidiary,
      nor will it interfere in any way with any right the Company or any Subsidiary
      would otherwise have to terminate or modify the terms of such Participant’s
      employment or other service at any time.

     

    (b)
      The
      Participant shall not have any rights of a shareholder with respect to the
      Units
      until shares of Stock have been duly issued following settlement of the Award
      as
      provided herein.

     

    14.
Notices.
      Any written
      notices provided for in this Agreement or the Plan shall be in writing and
      shall
      be deemed sufficiently given if either hand delivered or if sent by fax or
      overnight courier, or by postage paid first class mail. Notices sent by mail
      shall be deemed received three business days after mailing but in no event
      later
      than the date of actual receipt. Notices shall be directed, if to the
      Participant, at the Participant’s address indicated by the Company’s records, or
      if to the Company, at the Company’s principal executive office.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    15.
Amendment.
      This
      Agreement may be amended by written agreement of the Participant and the
      Company, without the consent of any other person.

     

    16.
Governing
      Law;
      Jurisdiction. This Agreement shall be governed by the law of the
      Commonwealth of Virginia without giving effect to the choice-of-law provisions
      thereof. The Circuit Court of the City of Norfolk and the United States District
      Court, Eastern District of Virginia, Norfolk Division shall be the exclusive
      courts of jurisdiction and venue for any litigation, special proceeding or
      other
      proceeding as between the parties that may be brought, or arise out of, in
      connection with, or by reason of this Agreement. The parties hereby consent
      to
      the jurisdiction of such courts.

    
 

    Forward
      to Exhibit 10.3ex10_3.htm

    Exhibit
      10.3

    

    (As
      revised effective February 15, 2008)

    

    DOLLAR
      TREE STORES, INC.

    STANDARD
      OPTION AGREEMENT

     

    NOTE:
      This document incorporates the accompanying Grant Letter, and together they
      constitute a single Agreement which governs the terms and conditions of your
      Option in accordance with the Company’s 2003 Equity Incentive Plan or 2004
      Executive Officer Equity Plan, as applicable.

     

    THIS
      AGREEMENT (“Agreement”), is effective as of the Grant Date specified in the
      accompanying Grant Letter, by and between the Participant and Dollar Tree
      Stores, Inc. (“Company”).

     

    A.
      The
      Company maintains both the 2003 Equity Incentive Plan (“EIP”) and the 2004
      Executive Officer Equity Plan (“EOEP”).

     

    B.
      The
      Participant has been selected by the committee administering the EIP and EOEP
      (“Committee”) to receive a Non-Qualified Stock Option Award under one of these
      plans.

     

    C.
      Key
      terms and important conditions of the Award are set forth in the cover letter
      (“Grant Letter”) which was delivered to the Participant at the same time as this
      document. This Agreement contains general provisions relating to the Award.
      The
      Grant Letter specifies whether the Award is issued under the EIP or the EOEP
      (whichever is applicable, the “Plan”).

     

    IT
      IS
      AGREED, by and between the Company and the Participant, as follows:

     

    1.
Terms
      of Award. The
      following terms used in this Agreement shall have the meanings set forth in
      this
      paragraph 1:

     

    (a)
      The
“Participant” is the individual named in the Grant Letter.

     

    (b)
      The
“Grant Date” is the date of the Grant Letter.

     

    (c)
      The
“Covered Shares” is that number of shares of the Company’s Stock specified in
      the Grant Letter.

     

    (d)
      The
“Exercise Price” is the price per common share set forth in the Grant
      Letter.

     

    Other
      terms used in this Agreement are defined pursuant to paragraph 8 or elsewhere
      in
      this Agreement.

     

    2.
Award
      and Exercise
      Price. This Agreement specifies the terms of the option (the “Option”)
      granted to the Participant to purchase the number of Covered Shares at the
      Exercise Price per share. The Option is not an “incentive stock option” as that
      term is used in Code section 422.

     

    3.
Date
      of Exercise.
      Subject to the limitations of this Agreement, the Option shall be exercisable
      in
      accordance with the terms set forth in the Grant Letter. An Option shall not
      become exercisable on the otherwise applicable vesting date if the Participant’s
      Date of Termination (as defined in paragraph 8) occurs on or before such vesting
      date. Notwithstanding the foregoing provisions, however, the Option shall become
      exercisable with respect to the Covered Shares (to the extent it is not then
      otherwise exercisable) as follows:

     

    (a)
      The
      Option shall become fully exercisable upon the Participant’s Date of
      Termination, if the Participant’s Date of Termination occurs by reason of the
      Participant’s death, Retirement or Disability.  Notwithstanding the
      foregoing, if the Option is conditioned on the achievement of one or more
      performance objectives set forth in the Grant Letter, then the Option shall
      become exercisable under this paragraph 3(a) only as of the applicable vesting
      date (assuming achievement of the performance objectives), with the number
      of
      Covered Shares exercisable pro-rated based on the ratio of actual months of
      employment by the Participant to the total number of months in the applicable
      vesting schedule, if any.

    

    (b)
      The
      Option shall become fully exercisable upon a Change in Control, if (i) the
      Participant’s Date of Termination does not occur before the Change in Control
      and (ii) the Committee determines to accelerate such
      exercisability.  Notwithstanding the foregoing, if the Option is
      conditioned on the achievement of one or more performance objectives set forth
      in the Grant Letter, then the amount of Covered Shares subject to accelerated
      vesting under this paragraph 3(b) shall not exceed the pro rata amount based
      on
      the ratio of actual months of employment by the Participant to the date of
      the
      Change of Control to the total number of months in the applicable vesting
      schedule, if any.  The accelerated vesting of such pro rata portion
      may assume that the performance objectives will be met, with partial settlement
      of the Option to occur as soon as practical after the Change of Control. If
      in
      fact the performance objectives are not met at the end of the applicable vesting
      schedule, then the Participant shall not be required to repay any amounts or
      forfeit any of the Option or any stock acquired pursuant to the exercise of
      the
      Option.  If the Committee determines to accelerate vesting of such
      Option in this manner, then the remainder of the Covered Shares shall be
      unaffected, with full vesting of such remaining Covered Shares on the applicable
      vesting date (assuming the performance objectives have been met).

     

    The
      Option may be exercised on or after the Date of Termination only as to that
      portion of the Covered Shares as to which it was exercisable immediately prior
      to the Date of Termination, or as to which it became exercisable on the Date
      of
      Termination in accordance with this paragraph 3.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.
Expiration.
      The
      Option shall not be exercisable after the Company’s close of business on the
      last business day that occurs prior to the Expiration Date. The “Expiration
      Date” shall be earliest to occur of:

     

    (a)
      the
      ten year anniversary of the Grant Date;

     

    (b)
      if
      the Participant’s Date of Termination occurs by reason of death, Disability or
      Retirement, the three-year anniversary of such Date of Termination;

     

    (c)
      if
      the Participant’s Date of Termination occurs for reasons other than “cause,”
death, Disability, or Retirement, the 90-day anniversary of such Date of
      Termination; or

     

    (d)
      if
      the Participant’s Date of Termination occurs for “cause,” the Date of
      Termination; or

     

    (e)
      the
      date on which the Committee determines the Participant materially violated
      (i)
      the provisions of paragraph 10 below or (ii) any non-competition agreement
      which
      the Participant may have entered into with the Company.

     

    5.
Method
      of Option
      Exercise.

     

    (a)
      Subject to the terms of this Agreement and the Plan, the Option may be exercised
      in whole or in part by filing a written notice with the Chief People Officer
      (or
      such other party as the Company may designate) of the Company at its corporate
      headquarters prior to the Company’s close of business on the last business day
      that occurs prior to the Expiration Date. Such notice shall specify the number
      of Covered Shares which the Participant elects to purchase, and shall be
      accompanied by payment of the Exercise Price for such shares of Stock indicated
      by the Participant’s election.

     

    (b)
      Payment shall be by cash or by check payable to the Company. Except as otherwise
      provided by the Committee before the Option is exercised: (i) all or a portion
      of the Exercise Price may be paid by the Participant by delivery of shares
      of
      Stock that have been owned by the Participant for at least six (6) months and
      are otherwise acceptable to the Committee having an aggregate Fair Market Value
      (valued as of the date of exercise) that is equal to the amount of cash that
      would otherwise be required; and

     

    (ii)
      the
      Participant may pay the Exercise Price by authorizing a third party to sell
      shares of Stock (or a sufficient portion of the shares) acquired upon exercise
      of the Option and remit to the Company a sufficient portion of the sale proceeds
      to pay the entire Exercise Price and any tax withholding resulting from such
      exercise. 

     

    (c)
      The
      Option shall not be exercisable if and to the extent the Company determines
      that
      such exercise would violate applicable state or Federal securities laws or
      the
      rules and regulations of any securities exchange on which the Stock is traded.
      If the Company makes such a determination, it shall use all reasonable efforts
      to obtain compliance with such laws, rules and regulations. In making any
      determination hereunder, the Company may rely on the opinion of counsel for
      the
      Company.

    

    (d)
      The
      Option does not include and may not be amended to include any feature for the
      deferral of compensation other than the income that may be deferred until the
      exercise of the Option, or the time the stock acquired pursuant to the exercise
      of the Option first becomes substantially vested.

     

    6.
Withholding.
      All
      deliveries and distributions under this Agreement are subject to withholding
      of
      all applicable taxes. The Company is entitled to (a) withhold and deduct from
      future wages of the Participant (or from other amounts due to Participant)
      or
      make other arrangements for the collection of all legally required amounts
      necessary to satisfy such withholding or (b) require the Participant promptly
      to
      remit such amounts to the Company. At the election of the Participant, and
      subject to such rules and limitations as may be established by the Committee
      from time to time, such withholding obligations may be satisfied through the
      surrender of shares of Stock which the Participant already owns, or to which
      the
      Participant is otherwise entitled under the Plan.

     

    7.
Transferability.

     

    (a)
      Except as otherwise provided in paragraph 7(b), the Option is not transferable
      and during the Participant’s life, may be exercised only by the Participant.
      Transfers at death are governed by paragraph 9(c) below.

     

    (b)
      The
      Participant, with the approval of the Committee, may transfer the Option during
      his or her lifetime for no consideration to or for the benefit of the
      Participant’s Immediate Family, subject to such limits as the Committee may
      establish, and the transferee shall remain subject to all the terms and
      conditions applicable to the Option prior to such transfer. The foregoing right
      to transfer the Option shall apply to the right to consent to amendments to
      this
      Agreement and, in the discretion of the Committee, shall also apply to the
      right
      to transfer ancillary rights associated with the Option.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)
      The
      term “Immediate Family” shall mean Participant’s child, stepchild, grandchild,
      parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
      mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
      or
      sister-in-law, including adoptive relationships, any person sharing the
      Participant’s household (other than a tenant or employee), a trust in which
      these persons have more than fifty percent of the beneficial interest, a
      foundation in which these persons (or the Participant) control the management
      of
      assets, and any other entity in which these persons (or the Participant) own
      more than fifty percent of the voting interests. The following transactions
      are
      not prohibited transfers for consideration: (i) a transfer under a domestic
      relations order in settlement of marital property rights; and (ii) a transfer
      to
      an entity in which more than fifty percent of the voting interests are owned
      by
      the Immediate Family (or the Participant) in exchange for an interest in that
      entity.

    

    8.
Definitions.
      For
      purposes of this Agreement, the terms used in this Agreement shall be subject
      to
      the following:

     

    (a)
      Change in Control. The term “Change in Control” has the meaning set forth in the
      Plan.

     

    (b)
      Date
      of Termination. The Participant’s “Date of Termination” shall be the first day
      occurring on or after the Grant Date on which the Participant is not employed
      by
      the Company or any Subsidiary, regardless of the reason for the termination
      of
      employment; provided that a termination of employment shall not be deemed to
      occur by reason of a transfer of the Participant between the Company and a
      Subsidiary or between two Subsidiaries; and further provided that the
      Participant’s employment shall not be considered terminated while the
      Participant is on a leave of absence from the Company or a Subsidiary approved
      by the Participant’s employer.

     

    (c)
      Disability. Except as otherwise provided by the Committee, the Participant
      shall
      be considered to have a “Disability” during the period in which the Participant
      is unable, by reason of a medically determinable physical or mental impairment,
      to engage in any substantial gainful activity, which condition, in the opinion
      of a physician selected by the Committee, is expected to have a duration of
      not
      less than 120 days.

     

    (d)
      Retirement. “Retirement” of the Participant shall mean, with the approval of the
      Committee, the occurrence of the Participant’s Date of Termination on or after
      the date the Participant attains age fifty-nine (59) years, six (6) months,
      following at least seven (7) years of service.

     

    (e)
      Plan
      Definitions. Except where the context clearly implies or indicates the contrary,
      a word, term, or phrase used in the Plan is similarly used in this
      Agreement.

     

    9.
Binding
      Effect; Heirs and
      Successors.

     

    (a)
      The
      terms and conditions of this Agreement shall be effective upon delivery to
      the
      Participant, with or without execution by the Participant.

     

    (b)
      This
      Agreement shall be binding upon, and inure to the benefit of, the Company and
      its successors and assigns, and upon any person acquiring, whether by merger,
      consolidation, purchase of assets or otherwise, all or substantially all of
      the
      Company’s assets and business.

     

    (c)
      If
      any rights exercisable by the Participant or benefits deliverable to the
      Participant under this Agreement have not been exercised or delivered,
      respectively, at the time of the Participant’s death, such rights shall be
      exercisable by the Designated Beneficiary, and such benefits shall be delivered
      to the Designated Beneficiary, in accordance with the provisions of this
      Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary or
      beneficiaries designated by the Participant in a writing filed with the
      Committee in such form and at such time as the Committee shall require. If
      a
      deceased Participant fails to designate a beneficiary, or if the Designated
      Beneficiary does not survive the Participant, any rights that would have been
      exercisable by the Participant and any benefits distributable to the Participant
      shall be exercised by or distributed to the legal representative of the estate
      of the Participant. If a deceased Participant designates a beneficiary and
      the
      Designated Beneficiary survives the Participant but dies before the Designated
      Beneficiary’s exercise of all rights under this Agreement or before the complete
      distribution of benefits to the Designated Beneficiary under this Agreement,
      then any rights that would have been exercisable by the Designated Beneficiary
      shall be exercised by the legal representative of the estate of the Designated
      Beneficiary, and any benefits distributable to the Designated Beneficiary shall
      be distributed to the legal representative of the estate of the Designated
      Beneficiary.

    
       

    

    10.
Disclosure
      of
      Information. The Participant recognizes and acknowledges that the
      Company’s trade secrets, confidential information, and proprietary information,
      including customer and vendor lists and computer data and programs (collectively
      “Confidential Information”), are valuable, special and unique assets of the
      Company’s business, access to and knowledge of which are essential to the
      performance of the Participant’s duties. The Participant will not, before or
      after his Date of Termination, in whole or in part, disclose such Confidential
      Information to any person or entity or make such Confidential Information public
      for any purpose whatsoever, nor shall the Participant make use of such
      Confidential Information for the Participant’s own purposes or for the benefit
      of any person or entity other than the Company under any circumstances before
      or
      after the Participant’s Date of Termination; provided that this prohibition
      shall not apply after the Participant’s Date of Termination to Confidential
      Information that has become publicly known through no action of the Participant.
      The Participant shall consider and treat as the Company’s property all
      memoranda, books, records, papers, letters, computer data or programs, or
      customer lists, including any copies thereof in human- or machine-readable
      form,
      in any way relating to the Company’s business or affairs, financial or
      otherwise, whether created by the Participant or coming into his or her
      possession, and shall deliver the same to the Company on the Date of Termination
      or, on demand of the Company, at any earlier time.

     

    11.
Administration.
      The
      authority to manage and control the operation and administration of this
      Agreement shall be vested in the Committee, and the Committee shall have all
      powers with respect to this Agreement as it has with respect to the Plan. Any
      interpretation of the Agreement by the Committee and any decision made by it
      with respect to the Agreement is final and binding on all persons. Such powers
      or decision-making may be delegated, to the extent permitted by the Plan, to
      one
      or more of Committee members or any other person or persons selected by the
      Committee.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    12.
Plan
      Governs.
      Notwithstanding anything in this Agreement to the contrary, the terms of this
      Agreement shall wholly incorporate and be subject to the terms of the Plan,
      a
      copy of which may be obtained from the Chief People Officer of the Company
      (or
      such other party as the Company may designate); and this Agreement is subject
      to
      all interpretations, amendments, rules and regulations promulgated by the
      Committee from time to time pursuant to the Plan.

     

    13.
No
      Implied
      Rights.

     

    (a)
      The
      Option will not confer on the Participant any right with respect to continuance
      of employment or other service with the Company or any Subsidiary, nor will
      it
      interfere in any way with any right the Company or any Subsidiary would
      otherwise have to terminate or modify the terms of such Participant’s employment
      or other service at any time.

     

    (b)
      The
      Participant shall not have any rights of a shareholder with respect to the
      shares subject to the Option, until a stock certificate has been duly issued
      following exercise of the Option as provided herein.

    

    14.
Notices.
      Any written
      notices provided for in this Agreement or the Plan shall be in writing and
      shall
      be deemed sufficiently given if either hand delivered or if sent by fax or
      overnight courier, or by postage paid first class mail. Notices sent by mail
      shall be deemed received three business days after mailing but in no event
      later
      than the date of actual receipt. Notices shall be directed, if to the
      Participant, at the Participant’s address indicated by the Company’s records, or
      if to the Company, at the Company’s principal executive office.

     

    15.
Fractional
      Shares. In
      lieu of issuing a fraction of a share upon any exercise of the Option, resulting
      from an adjustment of the Option pursuant to Section 4.2(f) of the Plan or
      otherwise, the Company will be entitled to pay to the Participant an amount
      equal to the fair market value of such fractional share.

     

    16.
Amendment.
      This
      Agreement may be amended by written agreement of the Participant and the
      Company, without the consent of any other person.

     

    17.
Governing
      Law;
      Jurisdiction. This Agreement shall be governed by the law of the
      Commonwealth of Virginia without giving effect to the choice-of-law provisions
      thereof. The Circuit Court of the City of Norfolk and the United States District
      Court, Eastern District of Virginia, Norfolk Division shall be the exclusive
      courts of jurisdiction and venue for any litigation, special proceeding or
      other
      proceeding as between the parties that may be brought, or arise out of, in
      connection with, or by reason of this Agreement. The parties hereby consent
      to
      the jurisdiction of such courts.

     

    Return
      to Form 8K

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