Document:

Exhibit 10.29

 

WCI COMMUNITIES, INC.

 

RESTRICTED STOCK UNIT AWARD GRANT NOTICE

 

WCI Communities, Inc., a Delaware corporation, (the “Company”) hereby grants to the individual or entity listed below (“Holder”), an award of restricted stock units (“Restricted Stock Units”).  Each Restricted Stock Unit represents the right to receive a cash payment equal to the Fair Market Value of one share of Common Stock upon the vesting of such Restricted Stock Unit.  The Restricted Stock Units are subject to all of the terms and conditions as set forth herein and in the Restricted Stock Unit Award Agreement attached hereto as Exhibit A (the “Restricted Stock Unit Agreement”), which is incorporated herein by reference.

 

	
Holder:
    	
[            ]
    
	
Grant   Date:
    	
[            ]
    
	
Total   Number of Restricted Stock Units:
    	
[        ]
    
	
Purchase   Price:
    	
$0.00
    
	
Vesting   Schedule:
    	
The   Restricted Stock Units shall vest on the first business day immediately   prior to the Company’s annual shareholders meeting occurring in the calendar   year following the calendar year which includes the Grant Date, subject to   continued service of [        ] (“Director”) to the Company or a   Subsidiary through such vesting date.
    

 

By his or her signature and the Company’s signature below, Director, Holder and the Company agree to be bound by the terms and conditions of the Restricted Stock Unit Agreement and this Grant Notice.  Each of Director and Holder has reviewed the Restricted Stock Unit Agreement and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice and the Restricted Stock Unit Agreement.  Each of Director and Holder hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Grant Notice or the Restricted Stock Unit Agreement. If Director is married, his or her spouse has signed the Consent of Spouse attached to this Grant Notice as Exhibit B.

 

 

	
WCI COMMUNITIES, INC.:
    	
 
    	
HOLDER:
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Print   Name:
    	
 
    	
 
    	
Print   Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
DIRECTOR:
    	
 
    
	
By:
    	
 
    	
 
    
	
Print   Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

EXHIBIT A
 TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE

 

WCI COMMUNITIES, INC. RESTRICTED STOCK UNIT AWARD AGREEMENT

 

Pursuant to the Restricted Stock Unit Award Grant Notice (the “Grant Notice”) to which this Restricted Stock Unit Award Agreement (the “Agreement”) is attached, WCI Communities, Inc., a Delaware corporation (the “Company”) has granted to Holder an award of restricted stock units (“Restricted Stock Units”), as set forth in the Grant Notice.

 

ARTICLE I.
 GENERAL

 

1.1                               Defined Terms.  Capitalized terms not specifically defined herein shall have the meanings specified in the Grant Notice or Annex A hereto. The Restricted Stock Units shall be used solely as a device for the determination of payment eventually to be made to Holder if such Restricted Stock Units vest pursuant to Section 2.2(b) hereof.  The Restricted Stock Units shall not be treated as property or as a trust fund of any kind.

 

ARTICLE II.
 AWARD OF RESTRICTED STOCK UNITS

 

2.1                               Award of Restricted Stock Units.

 

(a)                                 Award.  In consideration of past and/or continued service of [        ] (“Director”) to the Company or a Subsidiary, the Company issues to Holder the number of Restricted Stock Units set forth in the Grant Notice (the “Award”) upon the terms and conditions set forth in this Agreement, subject to adjustments as provided in Section 3.15.

 

(b)                                 Company’s Obligation to Pay.  Each Restricted Stock Unit has a value equal to the Fair Market Value of a share of Common Stock on the date it becomes vested.  Unless and until the Restricted Stock Units will have vested in the manner set forth in Section 2.2, Holder will have no right to payment of any such Restricted Stock Units.  Prior to actual payment with respect to any vested Restricted Stock Units, such Restricted Stock Units will represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.

 

2.2                               Forfeiture/Vesting.

 

(a)                                 Any Restricted Stock Units subject to the Award which are not vested as of the date of Director’s Termination of Service shall thereupon be forfeited immediately and without any further action by the Company.

 

(b)                                 Subject to Section 2.2(a) hereof, the Award shall vest in accordance with the vesting schedule set forth on the Grant Notice.

 

2.3                               Payment upon Vesting.

 

(a)                                 As soon as administratively practicable following the vesting of any Restricted Stock Units as set forth in the Grant Notice, but in no event later than sixty (60) days after such vesting

 

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date (for the avoidance of doubt, this deadline is intended to comply with the “short-term deferral” exemption from Section 409A (as defined below)), the Company shall pay to Holder (or any transferee permitted under Section 3.3 hereof) a cash amount equal to the Fair Market Value of a number of shares of Common Stock equal to the number of Restricted Stock Units subject to this Award that vest on the vesting date, unless such Restricted Stock Units are forfeited prior to the vesting date pursuant to Section 2.2(a) hereof.

 

(b)                                 Notwithstanding any other provision of this Agreement, no payment shall be delivered to Holder or Holder’s legal representative unless and until Holder or Holder’s legal representative shall have paid to the Company the full amount of all federal and state withholding or other taxes applicable to the taxable income of Holder and/or Director, as applicable, resulting from the grant, vesting or settlement of the Restricted Stock Units, if any.  Each of Director and Holder understands that he, she or it may suffer adverse tax consequences as a result of the grant, vesting and/or settlement of the Restricted Stock Units and each of Director and Holder represents that he, she or it is not relying on the Company for any tax advice.

 

2.4                               Consideration to the Company.  In consideration of the grant of the Award by the Company, Director agrees to render faithful and efficient services to the Company and the Subsidiaries.  Nothing in this Agreement shall confer upon Director any right to continue in the service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of Director at any time for any reason whatsoever, with or without cause.

 

ARTICLE III.
 OTHER PROVISIONS

 

3.1                               Administration.  The Board shall administer this Agreement (except as otherwise permitted herein).  The Administrator shall have the power to interpret this Agreement and the Grant Notice and to adopt such rules for the administration, interpretation and application of this Agreement as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon Director, Holder, the Company and all other interested persons.  No member of the Administrator shall be personally liable for any action, determination or interpretation made in good faith with respect to this Agreement or the Restricted Stock Units. Each member of the Administrator is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s independent certified public accountants, or any compensation consultant or other professional retained by the Company to assist in the administration of this Agreement.

 

3.2                               Tax Withholding. The Company shall be entitled to require a cash payment by or on behalf of Director or Holder and/or to deduct from compensation payable to Director or Holder (including, without limitation, any payment under this Agreement) any sums required by federal, state or local tax law to be withheld with respect to the grant, vesting or settlement of the Award.

 

3.3                               Transferability.  The Restricted Stock Units may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution.  Neither the Restricted Stock Units nor any interest or right therein shall be liable for the debts, contracts or engagements of Director or Holder or his, her or its successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment,

 

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garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 3.2 notwithstanding, with the consent of the Adminstrator, the Restricted Stock Units may be transferred to other persons or entities, pursuant to any such conditions and procedures as the Administrator may require.

 

3.4                               Binding Agreement.  Subject to the limitation on the transferability of the Restricted Stock Units contained herein, this Agreement will be binding upon and inure to the benefit of the legal representatives, successors and assigns of the parties hereto.

 

3.5                               No Rights as Stockholder.  Director and Holder shall not be, nor have any of the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of the Restricted Stock Units.  No adjustment to the Restricted Stock Units will be made for a dividend or other right, except as provided in Section 3.15.

 

3.6                               Not a Contract of Service.  Nothing in this Agreement shall confer upon Director or Holder any right to continue to serve as a service provider of the Company or any of its Subsidiaries.

 

3.7                               Governing Law.  This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof or of any other jurisdiction.

 

3.8                               Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

3.9                               Amendment, Suspension and Termination.  This Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board; provided, that, except as may otherwise be provided herein, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Award in any material way without the prior written consent of Holder.

 

3.10                        Notices.  Notices required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, addressed to Director or Holder, as applicable, to his, her or its address shown in the Company records, and to the Company at its principal executive office.  By a notice given pursuant to this Section 3.10, either party may hereafter designate a different address for notices to be given to that party.  Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

 

3.11                        Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Director and Holder and his, her and its heirs, executors, administrators, successors and assigns.

 

3.12                        Entire Agreement.  The Grant Notice and this Agreement constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company, Director and Holder with respect to the subject matter hereof.

 

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3.13                        Section 409A.  The Restricted Stock Units are not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”).  However, notwithstanding any other provision of the Grant Notice or this Agreement, if at any time the Administrator determines that the Restricted Stock Units (or any portion thereof) may be subject to Section 409A, the Administrator shall have the right in its sole discretion (without any obligation to do so or to indemnify Director or Holder or any other person for failure to do so) to adopt such amendments to the Grant Notice or this Agreement, or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate either for the Restricted Stock Units to be exempt from the application of Section 409A or to comply with the requirements of Section 409A.  Notwithstanding anything herein to the contrary, in no event shall any liability for failure to comply with the requirements of Section 409A be transferred from Director, Holder or any other individual to the Company or any of its Affiliates, employees or agents pursuant to the terms of this Agreement or otherwise.

 

3.14                        Limitation on Holder’s Rights.  This Agreement confers no rights or interests other than as herein provided.  This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust.  Holder shall have only the rights of a general unsecured creditor of the Company with respect to amounts credited and benefits payable, if any, with respect to the Restricted Stock Units issued hereunder.

 

3.15                                    Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events.

 

(a)                                 In the event of any stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the shares of Common Stock or the share price of the Common Stock other than an Equity Restructuring, the Administrator may make equitable adjustments, if any, to reflect such change with respect to (i) the number and kind of shares of Common Stock (or other securities or property) with respect to which the cash amount payable under this Agreement is determined; and (ii) the terms and conditions of this Agreement.

 

(b)                                 In the event of any transaction or event described in Section 3.15(a) or any unusual or nonrecurring transactions or events affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations or accounting principles, the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of this Agreement or by action taken prior to the occurrence of such transaction or event and either automatically or upon Holder’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Agreement or with respect to the Restricted Stock Units, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles:

 

(i)                                     To provide for either (A) termination of the Restricted Stock Units in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the realization of Holder’s rights (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction or event described in this Section 3.15 the Administrator determines in good faith that no amount would have been attained upon the realization of Holder’s rights, then the Restricted Stock Units may be terminated by the Company without payment) or (B) the replacement of the Restricted Stock Units with other rights or property selected by the Administrator, in its sole discretion, having an

 

A-4

 

aggregate value not exceeding the amount that could have been attained upon the realization of Holder’s rights had the Restricted Stock Units been fully vested;

 

(ii)                                  To provide that the Restricted Stock Units be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares with respect to which the value of the Restricted Stock Units is determined;

 

(iii)                               To make adjustments in the number and type of shares of the Company’s stock (or other securities or property) subject to the Restricted Stock Units and/or in the terms and conditions of this Agreement;

 

(iv)                              To provide that the Restricted Stock Units shall be fully vested with respect to all shares with respect to which the value of the Restricted Stock Units is determined, notwithstanding anything to the contrary in this Agreement; and

 

(v)                                 To provide that the Restricted Stock Units cannot vest or become payable after such event.

 

(c)                                  In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in Sections 3.15(a) and 3.15(b), the number and type of securities subject to this Agreement shall be equitably adjusted.  The adjustments provided under this Section 3.15(c) shall be nondiscretionary and shall be final and binding on Participant and the Company.

 

(d)                                 The existence of this Agreement and the Restricted Stock Units granted hereunder shall not affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

(e)                                  No action shall be taken under this Section 3.15 which shall cause the Restricted Stock Units to fail to comply with Section 409A.

 

3.16                        Compliance with Laws.  This Agreement, the granting and vesting of the Restricted Stock Units and the delivery of cash under this Agreement are subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations, the rules of any securities exchange or automated quotation system on which the shares of Common Stock are listed, quoted or traded, and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

3.17                        Relationship to Other Benefits.  No payment pursuant to this Agreement shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Affiliate except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

 

A-5

 

Annex A

 

Definitions

 

1.              “Administrator” shall mean the entity that conducts the general administration of this Agreement as provided in Section 3.1.

 

2.              “Affiliate” shall mean (a) any Subsidiary; (b) any Parent; and (b) any domestic eligible entity that is disregarded, under Treasury Regulation Section 301.7701-3, as an entity separate from either (i) the Company, (ii) any Subsidiary, or (iii) any Parent.

 

3.              “Board” shall mean the Board of Directors of the Company.

 

4.              “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, together with the regulations and official guidance promulgated thereunder.

 

5.              “Common Stock” shall mean the common stock of the Company, par value $0.01 per share, and such other securities as may be substituted for Common Stock pursuant to Section 3.15.

 

6.              “Equity Restructuring” shall mean a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other securities) and causes a change in the per share value of the Common Stock with respect to which the cash amount payable under this Agreement is determined.

 

7.              “Fair Market Value” shall mean, as of any given date, the value of a share of Common Stock determined as follows:

 

a.              If the Common Stock is listed on any (i) established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market), (ii) national market system or (iii) automated quotation system on which the shares of Common Stock are listed, quoted or traded, its Fair Market Value shall be the closing sales price for a share of Common Stock as quoted on such exchange or system for such date or, if there is no closing sales price for a share of Common Stock on the date in question, the closing sales price for a share of Common Stock on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

b.              If the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, but the Common Stock is regularly quoted by a recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices for such date or, if there are no high bid and low asked prices for a share of Common Stock on such date, the high bid and low asked prices for a share of Common Stock on the last preceding date for which such information exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

c.               If the Common Stock is neither listed on an established securities exchange, national market system or automated quotation system nor regularly quoted by a recognized securities dealer, its Fair Market Value shall be established by the Administrator in good faith.

 

A-6

 

8.              “Subsidiary” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

 

9.              “Termination of Service” shall mean the time when Director ceases to be a member of the Board for any reason, including, without limitation, a termination by resignation, failure to be elected, death or retirement, but excluding terminations where Director simultaneously commences or remains in employment or service with the Company or any Affiliate.

 

A-7

 

EXHIBIT B
 TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE

CONSENT OF SPOUSE

 

I,                                         , spouse of                               , have read and approve the foregoing Agreement.  In consideration of issuing to my spouse restricted stock units set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or cash payment pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement.

 

 

	
Dated:                                 ,
    	
 
    	
 
    
	
 
    	
 
    	
Signature   of Spouse
    

 

B-1COLM2013.12.3110KExhibit 10.2(l)

FORM OF PERFORMANCE-BASED RESTRICTED STOCK UNIT
 AWARD AGREEMENT

This Award Agreement (the "Agreement") is entered into as of          (the "Award Date") by and between Columbia Sportswear Company, an Oregon corporation (the "Company"), and          (the "Recipient"), for the award of restricted stock units with respect to the Company's Common Stock ("Common Stock").

The award of restricted stock units to the Recipient is made pursuant to Section 9 of the 1997 Stock Incentive Plan, as amended (the "Plan") and the Recipient desires to accept the award subject to the terms and conditions of this Agreement.

IN CONSIDERATION of the mutual covenants and agreements set forth in this Agreement, the parties agree to the following.

1.  Award and Terms of Restricted Stock Units. The Company awards to the Recipient under the Plan          restricted stock units (the "Award"), subject to forfeiture or increase as provided in Section 1(c) of this Agreement and to the restrictions, terms and conditions set forth in this Agreement.

(a)    Rights under Restricted Stock Units. A restricted stock unit (a "RSU") represents the unfunded, unsecured right to require the Company to deliver to the Recipient one share of Common Stock for each RSU. The number of shares of Common Stock deliverable with respect to each RSU is subject to adjustment (1) as provided in Section 1(c) of this Agreement and (2) as determined by the Board of Directors of the Company as to the number and kind of shares of stock deliverable upon any merger, reorganization, consolidation, recapitalization, stock dividend, spin-off or other change in the corporate structure affecting the Common Stock generally.

(b)    Vesting Date. The RSUs awarded under this Agreement shall initially be 100% unvested and subject to forfeiture.  The RSUs not forfeited pursuant to Section 1(c) of this Agreement shall vest on the date (the "Vesting Date") on which the Compensation Committee of the Board of Directors (the "Compensation Committee") confirms the Cumulative Operating Income, Average ROIC and Average Operating Margin, in each case as defined below (collectively, the "Performance Results"), for the Performance Period, as defined below; provided, however, that the Recipient has been employed by the Company continuously from the Award Date to the Vesting Date. If the Vesting Date falls on a weekend or any other day on which the Nasdaq Stock Market ("NSM") or any national securities exchange on which the Common Stock then is principally traded (the "Exchange") is not open, affected RSUs shall vest on the next following NSM or Exchange business day, as the case may be.

(c)    Adjustment of RSUs.

(1)    Forfeiture of RSUs on Termination of Service. If the Recipient ceases to be an employee of the Company for any reason prior to the Vesting Date, the Recipient shall immediately forfeit all outstanding RSUs awarded pursuant to this Agreement and the Recipient shall have no right to receive the related Common Stock. Absence on leave approved by the Company (or, if the Recipient is an executive officer of the Company, by the Board of Directors), shall not be deemed a termination or interruption of employment or service.  Unless otherwise determined by the Company or the Board of Directors in its sole discretion, (i) vesting of RSUs shall continue during a medical, family or military leave of absence, whether paid or unpaid, and (ii) vesting of RSUs shall be suspended during, and the number of shares deliverable at the Vesting Date shall be proportionately reduced as a result of, any other unpaid leave of absence.

(2)    Forfeiture of RSUs on Violation of Code of Business Conduct and Ethics. Recipient acknowledges that compliance with the Company's Code of Business Conduct and Ethics is a condition to the receipt and vesting of the RSUs. If, during the term of this Agreement, the Board of Directors (or a committee of directors designated by the Board of Directors) determines in good faith that the Recipient's conduct is or has been in violation of the Company's Code of Business Conduct and Ethics, then the Board of Directors or committee may cause the Recipient to immediately forfeit all or a portion of the unvested RSUs granted pursuant to this Agreement and the Recipient shall have no right to receive the related Common Stock.

(3)    Forfeiture or Increase of RSUs Based on Performance. For the period beginning          and ending          (the "Performance Period"), the Award shall be adjusted as follows.

(i)    Adjustment Based on Operating Income and ROIC.  100% of the Award (the "Operating Income and ROIC Component") is subject to increase or forfeiture (and if forfeited the Recipient shall have no right to receive the related Common Stock) based on the Cumulative Operating Income and the Average ROIC of the Company in the Performance Period, in each case as defined below. The Operating Income and ROIC Component will be adjusted by multiplying it by the percentage set forth at the intersection of the Cumulative Operating Income and Average ROIC in the following matrix. If results are between data points, the percentage of the Award payable shall be determined by interpolation between data points.

	
							
	 
	 
	Cumulative Operating Income (YYYY – YYYY)
($ millions)

	

Average ROIC (YYYY – YYYY)
	At least
	$
	$
	$
	%
	$

	%
	%
	%
	%
	%
	%

	%
	%
	%
	%
	%
	%

	%
	%
	%
	%
	%
	%

	%
	%
	%
	%
	%
	%

	%
	%
	%
	%
	%
	%

          "Cumulative Operating Income" means the sum of the annual income from operations for each of the fiscal years in the Performance Period as set forth in the audited consolidated financial statements of the Company, excluding the following items [omitted] (collectively, the "Excluded Effects"), for the Performance Period:

          "Average ROIC" means the average annual percentage return on invested capital in the Performance Period, excluding the Excluded Effects. The return on invested capital is calculated as follows.

	
					
	 
	 
	 
	 
	 

	ROIC
	 
	=
	 
	(net operating profit after taxes)

	 
	 
	 
	 
	 

	 
	 
	 
	 
	(total assets) — (excess cash) — (non-interest- bearing current liabilities)

Notwithstanding the foregoing, the Compensation Committee may, in its sole discretion, disregard all or any part of any Excluded Effect when determining the Performance Results for the Performance Period.

(ii)    Adjustment Based on Operating Margin.  If adjustment of the Operating Income and ROIC Component pursuant to Section 1(c)(3)(i) results in forfeiture of 100% of the Award, notwithstanding the forfeiture, 100% of the Award shall be subject to increase or forfeiture (and if forfeited the Recipient shall have no right to receive the related Common Stock) based on the Average Operating Margin of the Company relative to the Average Operating Margin of companies in the Company's peer group in the Performance Period.  The peer group has been determined by the Company for the Performance Period.  The number of shares available under the Award that vest on the Vesting Date will be determined by the rank of the Company's Average Operating Margin within its peer group at the conclusion of the Performance Period, as follows:  

	
			
	Percentile Rank
	Percent Vesting
	Number Vesting

	XX-XX
	-%
	 

	XX-XX
	-%
	 

	XX-XX
	-%
	 

	XX-XX
	-%
	 

	+
	-%
	 

"Average Operating Margin" means the average annual percentage of operating margin in the Performance Period.  The operating margin is calculated as follows.

	
					
	 
	 
	 
	 
	 

	OM
	 
	=
	 
	(income from operations)

	 
	 
	 
	 
	 

	 
	 
	 
	 
	(net sales)

where income from operations and net sales are each as set forth in the audited consolidated financial statements of the Company.

(d)    Restrictions on Transfer and Delivery on Death. The Recipient may not sell, transfer, assign, pledge or otherwise encumber or dispose of the RSUs subject to this Agreement.  If the Recipient dies before the delivery date, the shares will be delivered to the Recipient's estate.

(e)    Voting Rights and Dividend Equivalents. The Recipient shall have no rights as a shareholder with respect to the RSUs or the Common Stock underlying the RSUs until the Vesting Date for the relevant RSUs.  The Recipient will not be entitled to receive a cash payment equal to any cash dividends paid with respect to the Common Stock underlying the RSUs awarded under this Agreement that are declared prior to the particular Vesting Date for the relevant RSUs.

(f)    Physical Delivery of Share Certificates. As soon as practicable following the Vesting Date, provided that the Recipient has satisfied its tax withholding obligations as specified under Section 1(g) and the Recipient has completed, signed and returned any documents and taken any additional action the Company deems appropriate, the Company shall deliver the shares of Common Stock represented by vested RSUs to the Recipient (the date of delivery of such shares is referred to as a "delivery date"), rounded to the nearest whole share. No fractional shares of Common Stock shall be issued.  The shares of Common Stock will be issued in the Recipient’s name or, in the event of the Recipient’s death or total disability, to the Recipient’s beneficiary or executor.

Notwithstanding the foregoing, (i) the Company shall not be obligated to vest or deliver any shares of Common Stock during any period when the Company determines that the conversion of a RSU or the delivery of shares hereunder would violate any federal, state or other applicable laws and may issue shares with any restrictive legend that, as determined by the Company, is necessary to comply with securities laws or other regulatory requirements, and (ii) a delivery date may be delayed in order to provide the Company such time as it determines appropriate to determine tax withholding and other administrative matters; provided, however, that in any event the shares shall be delivered not later than the later to occur of the date that is 2 1/2 months from the end of (i) the Recipient's tax year that includes the Vesting Date, or (ii) the Company's tax year that includes the Vesting Date.

(g)    Taxes and Tax Withholding.

(i)    The Recipient acknowledges that under United States federal tax laws in effect on the Award Date, the Recipient will have taxable compensation income at the time of vesting based on the Market Value (as defined below) of the Common Stock on the Vesting Date. The Recipient shall be responsible for all taxes imposed in connection with the Award, regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection with the Award. The Company makes no representation or undertaking regarding the adequacy of any tax withholding in connection with the grant or vesting of the Award.

(ii)    The Company shall have the right, but not the obligation, to deduct from any and all payments made under the Plan, or to withhold from any delivery of Common Stock hereunder all domestic or foreign income, employment or other tax withholding obligations, whether national, federal, state or local (the "Tax Withholding Obligation"), arising as a result of any grant, vesting or delivery of Common Stock pursuant to this Award, in amounts determined by the Company. Unless otherwise determined by the Company, the Tax Withholding Obligation will be satisfied by the Company withholding from the vested shares of Common Stock a number of whole shares of Common Stock with an aggregate Market Value (as defined below) equal to the required minimum tax withholding.  The Recipient shall pay to the Company in cash, upon demand, the amount of any Tax Withholding Obligation that is not satisfied by the withholding of shares described above, and authorizes the Company to withhold from other amounts payable by the Company to the Recipient, including through additional payroll withholding, any amount not so paid.  The Company has no obligation to deliver shares of Common Stock pursuant to this Award until the Company's tax withholding obligations have been satisfied by the Recipient.

(h)    No Solicitation. The Recipient agrees that for 18 months after the Recipient's employment with the Company terminates for any reason, with or without cause, whether by the Company or the Recipient, the Recipient shall not recruit, attempt to hire, solicit, or assist others in recruiting or hiring, any person who is an employee of the Company, or any of its subsidiaries. In addition to other remedies that may be available to the Company, the Recipient shall pay to the Company in cash, upon demand, the net value of any shares of Common Stock, valued as of the Vesting Date, delivered under this Agreement if the Recipient violates this Section 1(h).

(i)    Not a Contract of Employment. This Agreement shall not be construed as a contract of employment between the Company and the Recipient and nothing contained in this Agreement or in the Plan shall confer upon the Recipient any right to be continued in the employment of the Company or any subsidiary or to interfere in any way with the right of the Company or any subsidiary by whom the Recipient is employed to terminate the Recipient's employment at any time for any reason, with or without cause, or to decrease the Recipient's compensation or benefits.

2.     Miscellaneous.

(a)    Entire Agreement. This Agreement constitutes the entire agreement of the parties with regard to the subjects hereof.

(b)    Interpretation of the Plan and the Agreement. The Board of Directors, or a committee of the Board of Directors responsible for administering the Plan (the "Administrator"), shall have the sole authority to interpret the provisions of this Agreement and the Plan, and all determinations by it shall be final and conclusive.

(c)    Section 409A. The Award made pursuant to this Agreement is intended not to constitute a "nonqualified deferred compensation plan" within the meaning of Section 409A the Internal Revenue Code of 1986, as amended, and instead is intended to be exempt from the application of Section 409A. To the extent that the Award is nevertheless deemed to be subject to Section 409A, the Award shall be interpreted in accordance with Section 409A and Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance issued after the grant of the Award. Notwithstanding any provision of the Award to the contrary, in the event that the Administrator determines that the Award is or may be subject to Section 409A, the Administrator may adopt such amendments to the Award or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (i) exempt the Award from the application of Section 409A or preserve the intended tax treatment of the benefits provided with respect to the Award, or (ii) comply with the requirements of Section 409A.

(d)    Market Value. "Market Value" as of a particular date shall mean (i) the closing sales price per share of Common Stock as reported by the NSM on that date, or (ii) if the shares of Common Stock are not listed or admitted to trading on the NSM, the closing price on the national securities exchange on which such stock is principally traded on that date, or (iii) if the shares of Common Stock are not then listed on the NSM or on another national securities exchange, the average of the highest reported bid and lowest reported asked prices for the shares of Common Stock on that date or (iv) if the shares of Common Stock are not then listed on any securities exchange and prices therefor are not reported, such value as determined in good faith by the Board of Directors (or any duly authorized committee thereof) as of that date.

(e)    Electronic Delivery. The Recipient consents to the electronic delivery of any prospectus and any other documents relating to this Award in lieu of mailing or other form of delivery.

(f)    Rights and Benefits. The rights and benefits of this Agreement shall inure to the benefit of and be enforceable by the Company's successors and assigns and, subject to the restrictions on transfer of this Agreement, be binding upon the Recipient's heirs, executors, administrators, successors and assigns.

(g)    Further Action. The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

(h)    Governing Law, Venue and Jurisdiction; Attorneys' Fees. This Agreement and the Plan will be interpreted under the laws of the state of Oregon, exclusive of choice of law rules. Venue and jurisdiction will be in the state or federal courts in Washington County, Oregon, and nowhere else. In the event either party institutes litigation hereunder, the prevailing party shall be entitled to reasonable attorneys' fees to be set by the trial court and, upon any appeal, the appellate court.

(i)    Consent to Transfer Personal Data. By signing this Agreement, the Recipient voluntarily acknowledges and consents to the collection, use, processing and transfer of personal data as described in this paragraph. The Recipient is not obliged to consent to such collection, use, processing and transfer of personal data. However, failure to provide the consent may affect the Recipient's ability to participate in the Plan. The Company and its subsidiaries hold certain personal information about the Recipient, including name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all entitlement to shares of stock awarded, canceled, purchased, vested, unvested or outstanding in the Recipient's favor, for the purpose of managing and administering the Plan ("Data").  The Company and/or its subsidiaries will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Plan, and the Company and/or any of its subsidiaries may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan. These recipients may be located in the European Economic Area, or elsewhere throughout the world, including the United States. The Recipient authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Recipient's participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and/or the subsequent holding of shares of stock on the Recipient's behalf to a broker or other third party with whom the Recipient may elect to deposit any shares of stock acquired pursuant to the Plan. The Recipient may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company; however, withdrawing consent may affect the Recipient's ability to participate in the Plan.

(j)    Acknowledgment of Discretionary Nature of the Plan; No Vested Rights. The Recipient acknowledges and agrees that the Plan is discretionary in nature and limited in duration, and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time.  The award of RSUs under the Plan is a one-time benefit and does not create any contractual or other right to receive a grant of RSUs or benefits in lieu of RSUs in the future. Future awards, if any, will be at the sole discretion of the Company, including, but not limited to, the timing of any award, the number of RSUs and vesting provisions.

(k)    Character of Award. Participation in the Plan is voluntary. The value of the Award is an extraordinary item of compensation outside the scope of the Recipient's employment contract, if any. As such, the Award is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments.

(l)    Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original.

	
									
	 
	 
	 
	 
	 

	 
	COLUMBIA SPORTSWEAR COMPANY
  
	 

	 
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	RECIPIENT
  
	 

	 
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64071-0002/LEGAL23332709.1

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