Document:

ex10-33.htm

Exhibit 10.33

 

 

CPI AEROSTRUCTURES, INC. 

 

RESTRICTED STOCK UNIT AGREEMENT

 

This Restricted Stock Unit Agreement (this “Agreement”) is made and entered into as of [DATE] (the “Grant Date”) by and between CPI Aerostructures, Inc., a New York corporation (the “Company”) and [DIRECTOR NAME] (the “Director”).

 

WHEREAS, the Company has adopted the Performance Equity Plan 2009 (the "Plan") pursuant to which awards of Restricted Stock Units may be granted (capitalized terms that are used but not defined herein have the meaning ascribed to them in the Plan); and

 

WHEREAS, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Stock Units provided for herein.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

1.     Grant of Restricted Stock Units.

 

1.1     Pursuant to Section 8 of the Plan, the Company hereby issues to the Director on the Grant Date an Award consisting of [NUMBER] Restricted Stock Units (the “Restricted Stock Units”). Each Restricted Stock Unit represents the right to receive one share of Common Stock, subject to the terms and conditions set forth in this Agreement and the Plan. 

 

1.2     The Restricted Stock Units shall be credited to a separate account maintained for the Director on the books and records of the Company (the “Account”). All amounts credited to the Account shall continue for all purposes to be part of the general assets of the Company.

 

2.     Consideration. The grant of the Restricted Stock Units is made in consideration of the services to be rendered by the Director to the Company. 

 

3.     Vesting.

 

3.1     Except as otherwise provided herein, provided that the Director remains a director on the Board or is otherwise engaged employed with the Company through the applicable vesting date (“Continuous Service”), the Restricted Stock Units will vest in accordance with the following schedule: 

 

	
 

Vesting Date
	
Number of Restricted

Stock Units That Vest

	
Immediately
	
[25% of Restricted Stock Units]

	
April 1, 20__
	
[25% of Restricted Stock Units]

	
July 1, 20__
	
[25% of Restricted Stock Units]

	
October 1, 20__
	
[25% of Restricted Stock Units]

 

 

 

 

 

 

The period over which the Restricted Stock vests is referred to as the “Restricted Period.” Once vested, the Restricted Stock Units become “Vested Units.”

 

3.2     If the Director’s Continuous Service terminates for any reason other than the Director’s death, or Disability, at any time before all of his or her Restricted Stock Units have vested, the Director’s unvested Restricted Stock Units shall be automatically forfeited upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Director under this Agreement. If the Director’s Continuous Service terminates prior to the Vesting Date as a result of the Director’s death or Disability, 100% of the unvested Restricted Stock Units shall immediately vest on the date of the Director’s termination of Continuous Service.

 

4.     Restrictions. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period and until such time as the Restricted Stock Units are settled in accordance with Section 6, the Restricted Stock Units or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Director. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Stock Units or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Restricted Stock Units will be forfeited by the Director and all of the Director’s rights to such units shall immediately terminate without any payment or consideration by the Company.

 

5.     Rights as Shareholder.

 

5.1     The Director shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the Restricted Stock Units, such as rights to vote or to receive dividends or other distributions, unless and until the Restricted Stock Units vest and are settled by the issuance of such shares of Common Stock. 

 

5.2     Upon and following the settlement of the Restricted Stock Units, the Director shall be the record owner of the shares of Common Stock underlying the Restricted Stock Units unless and until such shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a shareholder of the Company (including voting rights). 

 

6.     Settlement of Restricted Stock Units.

 

6.1     Subject to Section 9 hereof, promptly following the vesting date, the Company shall issue and deliver to the Director the number of shares of Common Stock equal to the number of Vested Units. The shares of Common Stock shall be issued in certificate form or book-entry form in the records of the Company’s transfer agent.

 

7.     No Right to Continued Service on the Board. Neither the Plan nor this Agreement shall confer upon the Director any right to be retained as a Director of the Company or in any other capacity. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Director’s Continuous Service at any time, with or without Cause. 

 

 

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8.     Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the Restricted Stock Units shall be adjusted or terminated in any manner as contemplated by Section 3.2 of the Plan.

 

9.     Tax Liability and Withholding.

 

9.1     As a condition to the issuance of any Restricted Stock Units, the Company may withhold, or require the Director to pay or reimburse the Company for any taxes which the Company determines are required to be withheld under federal, state or local law in connection with the grant or vesting of the Restricted Stock Units.

 

9.2     Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding (“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Director’s responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting or settlement of the Restricted Stock Units or the subsequent sale of any shares; and (b) does not commit to structure the Restricted Stock Units to reduce or eliminate the Director’s liability for Tax-Related Items.

 

10.     Legends.  A legend may be placed on any certificate(s) or other document(s) delivered to the Director indicating restrictions on transferability of the shares of Common Stock pursuant to this Agreement or any other restrictions that the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the shares of Common Stock are then listed or quoted.

 

11.     Compliance with Law. The issuance and transfer of shares of Common Stock shall be subject to compliance by the Company and the Director with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s shares of Common Stock may be listed. No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. 

 

12.     Notices. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Chief Executive Officer of the Company at the Company’s principal corporate offices. Any notice required to be delivered to the Director under this Agreement shall be in writing and addressed to the Director at the Director’s address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

 

 

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13.     Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of New York without regard to conflict of law principles.

 

14.     Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by the Director or the Company to the Committee (excluding the Director if the Director serves on the Committee) for review. The resolution of such dispute by the Committee shall be final and binding on the Director and the Company.

 

15.     Restricted Stock Units Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

16.     Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Director and the Director’s beneficiaries, executors, administrators and the person(s) to whom the Restricted Stock Units may be transferred by will or the laws of descent or distribution.

 

17.     Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

 

18.     Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Restricted Stock Units in this Agreement does not create any contractual right or other right to receive any Restricted Stock Units or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Director’s membership on the Board.

 

19.     Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Restricted Stock Units, prospectively or retroactively; provided, that, no such amendment shall adversely affect the Director’s material rights under this Agreement without the Director’s consent. 

 

20.     Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Director on account of non-compliance with Section 409A of the Code. 

 

 

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21.     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

22.     Acceptance. The Director hereby acknowledges receipt of a copy of the Plan and this Agreement. The Director has read and understands the terms and provisions thereof, and accepts the Restricted Stock Units subject to all of the terms and conditions of the Plan and this Agreement. The Director acknowledges that there may be adverse tax consequences upon the vesting or settlement of the Restricted Stock Units or disposition of the underlying shares and that the Director has been advised to consult a tax advisor prior to such vesting, settlement or disposition.

 

[SIGNATURE PAGE FOLLOWS]

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	  	
CPI Aerostructures, Inc.

	 	 
	 	 
	 	 
	  	
By: _____________________

 

 

Name:

 

Title:

 

 

 

	  	
[DIRECTOR NAME]

	 	 
	 	 
	 	 
	  	
By: _____________________

 

 

Name:

 

 

 

 6ex10-34.htm

Exhibit 10.34

 

CPI AEROSTRUCTURES, INC.

 

Non-Employee Director Compensation

Adopted December 2013, Effective as of January 1, 2014

(Amended June 2014 and December 2014)

 

Annual compensation for non-employee directors of CPI Aerostructures, Inc. (the “Company”) will be paid as a combination of cash and restricted stock units (RSU) as follows: Chairman of the Board, $250,000 (cash payment, $102,575); Chairman of each of the Audit and Compensation Committees, $180,000 (cash payment, $66,950) and all other non-employee directors, $75,000 (cash payment, $24,750). The number of RSUs granted is calculated based on the closing price of a share of the Company’s common stock on the date immediately prior to grant (with a maximum of 60,000 shares).

 

	 	
1.
	
RSUs are granted to non-employee directors serving on January 1st and vest in equal installments on the first day of January, April, July and October each year. 

 

	 	
2.
	
Equity compensation of a non-employee director starting his service at the beginning of a quarter (other than January 1st) will be prorated for the number of days remaining in the year. The director will be granted RSUs that vest in equal installments on the first day of April, July and/or October, as appropriate for the balance of the year beginning on the day of grant. Cash and equity compensation for a new director elected at the Company’s annual meeting will commence the ensuing quarter (July 1st).

 

	 	
3.
	
Quarterly cash compensation of a new non-employee director starting service during a quarter will be prorated for the number of days remaining in the quarter he starts; equity compensation will be prorated for the number of days remaining in the year. The director will be granted RSUs that vest on the day of grant with respect to the number of shares equal to the daily prorated amount of shares multiplied by the number of days remaining in the quarter he/she starts, with the remainder of the RSUs vesting in equal installments for the balance of the year on the first day of April, July and/or October, as appropriate. For example, if a new director starts his/her service March 1st, assuming annual equity compensation of 5,000 RSUs, the new director would receive 4,192 RSUs,1 with 4252 shares being fully vested and the balance of 3,767 shares vesting in installments of 1,255 shares on the first day of April, July and October.

 

	 	
4.
	
Any non-vested portion of non-employee director RSUs will automatically be cancelled if a director’s service terminates during the year.

 

 

 

1 5,000 shares/365 = 13.6986/day x 306 days = 4,192 shares (rounded to the nearest whole share). 

2 5,000 shares/365 = 13.6986/day x 31 days = 425 shares (rounded to the nearest whole share).

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