Document:

exv10w20

 

Exhibit 10.20

DIRECTOR NONQUALIFIED

STOCK OPTION AGREEMENT

UNDER THE AMENDED AND RESTATED

RENT-A-CENTER, INC.

LONG-TERM INCENTIVE PLAN

      Rent-A-Center, Inc. (the “Company”) hereby grants, effective as of                     , 20    , to
[NAME] (the “Optionee”), a nonemployee Director of the Company, the Nonqualified Option
(the “Option”) to purchase from the Company up to but not exceeding in the aggregate
                    
shares of the Company’s common stock, par value $.01 per share (the “Common
Stock”), at a price of                      and       Dollars ($26.54) per share (the “Exercise
Price”), such number of shares and such price per share being subject to adjustment as provided
in paragraph 15(b) of the Amended and Restated Rent-A-Center, Inc. Long-Term Incentive Plan, as
amended from time to time (the “Plan”), and further subject to the following terms and
conditions:

      1. Relationship to Plan. This Option is issued in accordance with and subject to all of the
terms, conditions and provisions of the Plan and administrative interpretations thereunder, if any,
which have been adopted by the Compensation Committee thereunder and are in effect on the date
hereof. Except as defined herein, capitalized terms shall have the same meanings ascribed to them
under the Plan. A copy of the Plan is being provided to Optionee herewith and is attached hereto
as Appendix A.

      2. Exercise Schedule. This Option shall be exercisable immediately upon its grant and shall
remain exercisable, in whole or in part, until terminated pursuant to the provisions of Section 3
hereof.

      3. Termination of Option. This Option shall terminate and be of no force and effect with
respect to any shares not previously purchased by the Optionee on January 3, 20___(the tenth
anniversary of the date of grant).

      4. Exercise of Option. Subject to the limitations set forth herein and in the Plan, this
Option may be exercised by written notice provided to the Company as set forth in Section 5, which
written notice shall state the number of shares with respect to which the Option is being
exercised. The Optionee shall deliver to the Secretary of the Company a cashier’s check payable in
United States currency (unless a personal check shall be acceptable to such office) to the order of
the Company for an amount equal to the Exercise Price times the number of shares with respect to
which the Option is being exercised. The check shall be accompanied by such other instruments or
agreements duly signed by the Optionee as in the opinion of counsel for the Company may be
necessary or advisable in order that the issuance of such number of shares comply with applicable
rules and regulations under the Securities Act of 1933, as amended (the “Act”), any
appropriate state securities laws or any requirement of any national securities exchange on which
such Common Stock may be traded. As soon as practicable after any such exercise of the Option in
whole or in part by the Optionee, the Company will deliver to the Optionee a certificate for the
number of shares with respect to which the Option shall have been so exercised, issued in the
Optionee’s name. Such Common Stock certificate shall carry such appropriate legend, and such
written instructions shall be

Director Option Agreement

 

 

given to the Company’s transfer agent, as may be deemed necessary or advisable by counsel to
the Company to satisfy the requirements of the Act or any state securities laws.

If any law or regulation requires the Company to take any action with respect to the shares
specified in such notice, the time for delivery thereof, which would otherwise be promptly as
possible, shall be postponed for the period of time necessary to take such action.

      5. Notice of Exercise. Notice of exercise of the Option must be made in the following manner,
using such forms as the Company may from time to time provide:

      (a) by registered or certified United States mail, postage prepaid, to Rent-A-Center,
Inc., Attention: General Counsel and Secretary, 5700 Tennyson Parkway, Suite 100, Plano,
Texas 75024, in which case the date of exercise shall be the date of mailing; or

      (b) by hand delivery or otherwise to Rent-A-Center, Inc., Attention: General Counsel
and Secretary, 5700 Tennyson Parkway, Suite 100, Plano, Texas 75024, in which case the date
of exercise shall be the date when receipt is acknowledged by the Company.

Notwithstanding the foregoing, in the event that the location of the corporate offices of the
Company is changed prior to the date of any exercise of this Option, notice of exercise shall
instead be made pursuant to the foregoing provisions at the address of the corporate offices of the
Company as of the date of the exercise.

      6. Assignment of Option. The Optionee’s rights under the Plan and this Nonqualified Stock
Option Agreement are personal. No assignment or transfer of the Optionee’s rights under and
interest in this Option may be made by the Optionee otherwise than by will or by the laws of
descent and distribution. This Option is exercisable only by the Optionee during the Optionee’s
lifetime.

      7. Stockholder Rights. The Optionee shall have no rights of a stockholder with respect to
shares of Common Stock subject to the Option, whether or not vested, unless and until such time as
the Option has been exercised and ownership of such shares of Common Stock has been transferred to
the Optionee.

      8. Governing Law. This Agreement shall be governed by, construed and enforced in accordance
with the laws of the State of Texas.

[The remainder of this page is intentionally left blank]

-2-

 

	 	 	 	 	 
	 	RENT-A-CENTER, INC.

 	 
	Dated:                     , 20     	By:  	 	 
	 	 	Robert D. Davis 	 
	 	 	Senior Vice President — Finance,
Chief Financial Officer and Treasurer 	 
	 

This Option has been accepted as of the date set forth above by the undersigned, subject to the
terms and provisions of the Plan and administrative interpretations thereof referred to above.

	 	 	 	 	 
	 	 	 
	 	Optionee 	 
	 	 	 
	 	 	 
	 

-3-exv10w21

 

Exhibit 10.21

EMPLOYEE NONQUALIFIED STOCK OPTION AGREEMENT

UNDER THE AMENDED AND RESTATED RENT-A-CENTER, INC.

LONG-TERM INCENTIVE PLAN

      This STOCK OPTION AGREEMENT (the “Agreement”) is made and entered into as of the ___
day of ___, 20___, by and between RENT-A-CENTER, INC., a Delaware corporation (herein called
the “Company”), and ___(herein called the “Employee”).

W I T N E S S E T H:

      WHEREAS, the Board of Directors of the Company (the “Board”) has resolved that the
interests of the Company will be advanced by encouraging and enabling certain selected employees of
the Company and its Subsidiaries (as such term is defined in the Amended and Restated
Rent-A-Center, Inc. Long-Term Incentive Plan) who are mainly responsible for the management, growth
and success of the Company and the Subsidiaries to acquire proprietary shares in the Company, thus
providing them with a more direct concern in the welfare of the Company and the Subsidiaries and
assuring a closer identification of their interests with those of the Company and the Subsidiaries;
and

      WHEREAS, the Board believes that the acquisition of such an interest in the Company will
stimulate the endeavors of such employees on behalf of the Company and its Subsidiaries and
strengthen their desire to remain with the Company and its Subsidiaries; and

      WHEREAS, the individual above named is one of such employees.

      NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and
other good and valuable consideration, the parties hereto agree as follows:

      1. Subject to the terms of Paragraph 17 hereof, the Company hereby grants to the Employee as a
matter of separate inducement and agreement in connection with his employment by the Company or a
Subsidiary, and not in lieu of any salary or other compensation for his services, the right and
option to purchase, at the time and on the terms and conditions hereinafter set forth, ___shares
of the presently authorized common stock, par value $0.01 per share, of the Company (the
“Common Stock”) at the purchase price of ___and ___Dollars ($___) per share.

      2. The option provided for in this Agreement is granted pursuant to the Amended and Restated
Rent-A-Center, Inc. Long-Term Incentive Plan (hereinafter referred to as the “Plan”). The
terms and provisions of such Plan are incorporated herein by reference and, in the event of any
conflict between the terms and provisions of this Agreement and those of such Plan, the terms and
provisions of the Plan, including, without limitation, those with respect to the powers of the
administrative committee appointed thereunder (hereinafter referred to as the “Committee”),
shall prevail and be controlling.

      3. This option shall continue for ten (10) years from the date hereof, except and to the
extent that such term may be reduced as provided in Paragraphs 6, 7, 8, 9, 14 and 17 hereof;
provided, however, that if any termination date provided for herein shall fall on a Saturday,
Sunday or legal holiday, then such termination date shall be deemed to be the first normal business
day of the Company, at its office specified in Paragraph 20 hereof, before such Saturday, Sunday or legal holiday.

 

 

      4. Except as otherwise provided herein, this option shall be exercisable not later than ten
(10) years from the date hereof, and only to the extent of shares that have vested in accordance
with the following schedule:

	 	 	 	 	 
	 	 	Portion of Shares That is Vested
	Vesting Date	 	On or After Such Vesting Date
	Grant Date

	 	 	0	%
	First Anniversary of
Date of Grant

	 	 	25	%
	Second Anniversary of
Date of Grant

	 	 	50	%
	Third Anniversary of
Date of Grant

	 	 	75	%
	Fourth Anniversary of
Date of Grant

	 	 	100	%

The Employee’s right to exercise the option granted hereunder accrues only in accordance with the
preceding sentence and, except as otherwise provided herein, only to the extent that he or she
remains in the continuous employ of the Company or a Subsidiary. This option shall be exercisable
during the lifetime of the Employee only by him or her. In no event may the Employee or any person
exercising this option pursuant to Paragraph 7 hereof exercise this option (before or after any
adjustment or substitution pursuant to Paragraph 13 or 14 hereof) for a fraction of a share.

      5. The option granted hereby shall be exercisable upon and subject to the following terms and
conditions:

     (a) The option granted hereby may be exercised by delivering to the Secretary of the
Company from time to time within the time period specified in Paragraph 4 hereof a written
notice specifying the number of vested shares the Employee then desires to purchase.

     (b) Upon receipt of the Employee’s written notice of exercise and full compliance with
all other obligations under this Agreement, the Company shall allow the Employee to
consummate the purchase of the number of shares indicated in the notice of exercise in
accordance with the terms of this Agreement.

     (c) The Employee shall have delivered to the Secretary of the Company a cashier’s check
payable in United States currency (unless a personal check shall be acceptable to such
offer) to the order of the Company for an amount equal to the option price for such number
of shares; or, with the prior consent of the Committee, and upon receipt of all regulatory
approvals, the Employee shall have tendered Common Stock or surrendered all

2

 

or part of any other Employee Award (as such term is defined in the Plan), valued at
the Fair Market Value (as such term is defined in the Plan) of such Common Stock or other
Employee Award on the date of exercise of this option, as payment of all or any portion of
the option price for such number of shares. The check or, if applicable, the certificates
for Common Stock, or instruments evidencing the surrender of all or any portion of any other
Employee Award, shall be accompanied by such other instruments or agreements duly signed by
the Employee as in the opinion of counsel for the Company may be necessary or advisable in
order that the issuance of such number of shares comply with applicable rules and
regulations under the Securities Act of 1933, as amended (the “Act”), any
appropriate state securities laws or any requirement of any national securities exchange on
which such stock may be traded. As soon as practicable after any such exercise of the
option in whole or in part by the Employee, the Company will deliver to the Employee a
certificate for the number of shares with respect to which the option shall have been so
exercised, issued in the Employee’s name. Such stock certificate shall carry such
appropriate legend, and such written instructions shall be given to the Company’s transfer
agent, as may be deemed necessary or advisable by counsel to the Company to satisfy the
requirements of the Act or any state securities laws.

      6. If the employment of the Employee is terminated by reason of Disability (as hereinafter
defined) of the Employee, then the Employee shall have the right at any time WITHIN TWELVE (12)
MONTHS after the termination of such employment or, if shorter, during the unexpired term of this
option, to exercise this option for the full number of shares or any portion thereof, except as to
the issuance of fractional shares, BUT ONLY TO THE EXTENT THIS OPTION WAS OTHERWISE EXERCISABLE in
accordance with Paragraph 4 hereof on the date of such cessation of employment.

      As used herein, the term “Disability” shall mean the inability to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected to last for a
continuous period of not less than twelve (12) months. The determination of whether or not an
Employee’s employment is terminated by reason of Disability shall be in the sole and absolute
discretion of the Committee. An individual shall not be considered Disabled unless he furnishes
proof of the existence thereof in such form and manner, and at such times, as the Committee may
require.

      7. If the Employee dies while in the employ of the Company or a Subsidiary, this option may be
exercised for the full number of shares, or any portion thereof, except as to the issuance of
fractional shares, BUT ONLY TO THE EXTENT THIS OPTION WAS OTHERWISE EXERCISABLE in accordance with
Paragraph 4 hereof on the date of the Employee’s death, at any time WITHIN TWELVE (12) MONTHS from
the date of death of the Employee or within the unexpired term of this option, whichever is
shorter, by the person or persons to whom the Employee’s rights under this option shall pass by the
Employee’s will or by the laws of descent and distribution, whichever is applicable.

      8. If the employment of the Employee is terminated for cause (which determination shall be
made in the sole and absolute discretion of the Committee), this option shall automatically
terminate as of the date of such cessation of employment.

3

 

      9. If the employment of the Employee is terminated for any reason other than Disability, death
or for cause, then the Employee shall have the right at any time WITHIN THREE (3) MONTHS after the
termination of such employment or, if shorter, during the unexpired term of this option, to
exercise this option for the full number of shares or any portion thereof, except as to the
issuance of fractional shares, BUT ONLY TO THE EXTENT THIS OPTION WAS OTHERWISE EXERCISABLE in
accordance with Paragraph 4 hereof on the date of such cessation of employment.

      10. Shares to be issued on the exercise of this option may, at the election of the Company, be
either authorized and unissued shares, or shares previously issued and reacquired by the Company.

      11. The Company shall not be required to issue or deliver any certificates for shares
purchased upon the exercise of this option prior to: (i) the obtaining of any approval from any
governmental agency which the Company shall, in its sole discretion, determine to be necessary or
advisable; (ii) the completion of any registration or other qualification of such shares under any
state or federal law or ruling or regulation of any governmental body which the Company shall, in
its sole discretion, determine to be necessary or advisable; and (iii) the determination by the
Committee that the Employee has tendered to the Company the full purchase price plus any federal,
state or local tax owed by the Employee as a result of exercising this option when the Company has
a legal liability to satisfy such tax. In addition, if shares reserved for issuance upon the
exercise of this option shall not then be registered under the Act, the Company may, upon the
Employee’s exercise of this option, require the Employee or his permitted transferee to represent
in writing that the shares being acquired are for investment and not with a view to distribution,
and may mark the certificate for the shares with a legend restricting transfer and may issue stop
transfer orders relating to such certificate to the Company’s transfer agent.

      12. In connection with the exercise of the option by the Employee, and as a condition to the
Company’s obligation to deliver shares upon exercise of the option, the Employee shall make
arrangements satisfactory to the Committee, including, with the prior approval of the Committee,
the withholding of an appropriate amount of cash or number of shares of Common Stock or a
combination thereof, or the transfer to the Company of shares of Common Stock theretofore owned by
the Employee, to ensure that the amount of federal, state or local withholding tax, if any,
required to be withheld with respect to delivery of the shares is made available by the Employee
for timely payment of the tax by the Company to the appropriate taxing authority.

      13. If, prior to the delivery of all the shares in respect to which this option is granted,
there shall be any subdivision or consolidation of outstanding shares of Common Stock or
declaration of a dividend payable in shares of Common Stock or capital reorganization or
reclassification or other transaction involving an increase or reduction in the number of
outstanding shares of Common Stock, the Committee may adjust proportionally (i) the number of
shares of Common Stock reserved under the Plan and covered by outstanding options denominated in
Common Stock or units of Common Stock; (ii) the exercise or other price in respect of such options;
and (iii) the appropriate Fair Market Value and other price determinations for such options.

4

 

      14. If, prior to the delivery of all the shares in respect to which this option is granted,
there shall be a consolidation or merger of the Company with another corporation or entity or the
adoption by the Company of a plan of exchange affecting the Common Stock or any distribution to
holders of Common Stock of securities or property (other than normal cash dividends or dividends
payable in Common Stock), the Committee shall make such adjustments or other provisions as it may
deem equitable, including adjustments to avoid fractional shares, to give proper effect to such
event. In the event of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation, the Committee shall be authorized to issue or assume
options, regardless of whether in a transaction to which Section 424(a) of the Code applies, by
means of substitution of new options for previously issued options or an assumption of previously
issued options, or to make provision for the acceleration of the exercisability of, or lapse of
restrictions with respect to, options and the termination of unexercised options in connection with
such transaction.

      15. Neither the Employee nor his legal representative shall be or have any of the rights or
privileges of a stockholder of the Company in respect to any of the shares issuable upon the
exercise of this option unless and until certificates representing such shares shall have been
issued and delivered to the Employee.

      16. Neither the granting of this option, the exercise of any part hereof, nor any provision of
this Agreement shall constitute or be evidence of any understanding, express or implied, on the
part of the Company or a Subsidiary, to employ the Employee for any specified period.

      17. This Agreement shall be null and void and no options shall be granted hereby in the event
the Employee shall fail to execute and return a counterpart hereof to the Company, at the address
set forth in Paragraph 20 hereof, within sixty (60) days from the date hereof.

      18. Except as otherwise herein provided, this option and the rights and privileges conferred
hereby may not be transferred, assigned, pledged or hypothecated in any way (whether by operation
of law or otherwise) and shall not be subject to execution, attachment or similar process. Upon
any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this option or any
right or privilege conferred hereby, contrary to the provisions hereof, this option and the rights
and privileges conferred hereby shall immediately become null and void.

      19. The Committee shall have authority to make reasonable constructions of this option and to
correct any defect or supply any omission or reconcile any inconsistency in this option, and to
prescribe reasonable rules and regulations relating to the administration of this option and other
similar options granted under the Plan.

      20. Any notice relating to this Agreement shall be in writing and delivered in person or by
registered mail to the Company at the Company’s main office, 5700 Tennyson Parkway, Suite 100,
Plano, TX 75024, or to such other address as may be hereafter specified by the Company, to the
attention of its Secretary. All notices to the Employee or other person or persons then entitled
to exercise the option shall be delivered to the Employee or such other person or persons at the
Employee’s address specified below.

5

 

      21. Any payment or any issuance or transfer of shares of the Common Stock to the Employee or
his legal representative, heir, legatee or distributee, in accordance with the provisions hereof,
shall, to the extent thereof, be in full satisfaction of all claims of such persons hereunder. The
Committee may require the Employee, legal representative, heir, legatee or distributee, as a
condition precedent to such payment, to execute a release and receipt therefor in such form as it
shall determine.

      22. This option is not intended to qualify as an “incentive stock option” within the meaning
of Section 422 of the Internal Revenue Code of 1986, as amended.

[Remainder of Page Intentionally Left Blank]

6

 

      IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name by its
Senior Vice President – Finance and Chief Financial Officer and its corporate seal to be hereunto
affixed and attested by its Secretary on the date and year first above written, and the Employee
has hereunto set his or her hand on the day and year specified above.

	 	 	 	 	 	 	 
	 	 	 
	 	RENT-A-CENTER, INC.
	 
	 	 
	 	 	 	 
	 
	 	 
	 	 	 	 
	ATTEST:
	 
	 	 
	 	 	 	 
	By:
	 	

	 	By:	 	 
	 	 	 

	 	 	 	 
	 	 	Christopher A. Korst

	 	 	 	Robert D. Davis
	 	 	Secretary Vice President — General

	 	 	 	Senior Vice President — Finance and
	 	 	Counsel and Secretary

	 	 	 	Chief Financial Officer
	 
	 	 
	 	 	 	 
	 
	 	 
	 	 	 	 
	 	 	 
	 	 
	 	 	 
	 	Employee Signature
	 
	 	 
	 	 	 	 
	 
	 	 
	 	 	 	 
	 	 	 
	 	 
	 	 	 
	 	Street Address (No P.O. Box please)
	 
	 	 
	 	 	 	 
	 
	 	 
	 	 	 	 
	 	 	 
	 	 
	 	 	 
	 	City, State and Zip Code

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}]]