Document:

sbh-ex102_85.htm

 

 

Exhibit 10.2

 

 
RESTRICTED STOCK UNIT AWARD AGREEMENT
for Independent Directors

 

Non-transferable

GRANT TO

 

«Full Name»

(“Director”)

 

by Sally Beauty Holdings, Inc. (the “Company”) of

 

«RSU» restricted stock units convertible into shares of its common stock, par value $0.01 (the “RSUs ”)

 

pursuant to and subject to the provisions of the Sally Beauty Holdings, Inc. 2019 Omnibus Incentive Plan (the “Plan”) and to the terms and conditions set forth on the following page (the “Terms and Conditions”).  By accepting the RSUs, Grantee shall be deemed to have agreed to the Terms and Conditions set forth in this Award Agreement and the Plan.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.

 

IN WITNESS WHEREOF, Sally Beauty Holdings, Inc. has caused this Award Agreement to be executed as of the Grant Date, as indicated below.

 

 

SALLY BEAUTY HOLDINGS, INC.

 

 

By: ______________________________

Christian Brickman

 

Its: President & Chief Executive Officer, Sally Beauty Holdings, Inc. 

 

Grant Date:  

 

 

 

TERMS AND CONDITIONS

 

	
 
	
1.
	
 Vesting of RSUs.

 

(a)Vesting Date.  The RSUs have been credited to a bookkeeping account on behalf of Director.  Except as otherwise provided in this Section 1, if Director provides continuous, eligible service to the Company and its Subsidiaries, as determined by the Committee or its designee, in the Committee’s or the designee’s sole and absolute discretion, as applicable, from the Grant Date until September 30, 2019 (the “Vesting Date”), Director shall vest as to one hundred percent (100%) of the RSUs on the Vesting Date.

 

(b)Forfeiture of RSUs.  If Director terminates service with the Company and its Subsidiaries prior to the Vesting Date for any reason other than Director’s death or Disability, then Director (or Director’s estate, as applicable) shall, for no consideration, forfeit all RSUs.

 

(c)Death or Disability.  If, as a result of Director’s death or Disability, Director terminates service with the Company and its Subsidiaries prior to the Vesting Date, then, provided Director has provided continuous, eligible service to the Company from the Grant Date until Director’s death or Disability, Director shall vest in and have a non-forfeitable right to a pro-rata portion of the RSUs determined by multiplying the total number of RSUs awarded under this Agreement by a fraction the numerator of which is the number of whole months Director served as a member of the Board after the Grant Date, and the denominator of which is 12.

 

(d)Change in Control.  Unless the Committee otherwise determines as provided in Section 13.8(b) of the Plan, upon the occurrence of a Change in Control prior to the Vesting Date, the Director shall vest as to one hundred percent (100%) of the RSUs, provided Director has provided continuous, eligible service to the Company from the Grant Date until the effective date of such Change in Control.

 

2.Restrictions on Transfer and Pledge.  Unless otherwise determined by the Committee and provided in this Agreement or the Plan, the RSUs shall not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred except by will or the laws of descent and distribution.  Any attempted assignment of an RSU in violation of this Agreement shall be null and void.  The Company shall not be required to honor the transfer of any RSUs that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or the Plan.

 

3. Rights.  RSUs represent an unsecured promise of the Company to issue shares of Common Stock of the Company as otherwise provided in this Agreement.  Other than the rights provided in this Agreement, Director shall have no rights of a stockholder of the Company with respect to the RSUs awarded under this Agreement until such RSUs have vested and the related shares of Common Stock have been issued pursuant to the terms of this Agreement.  Upon conversion of the RSUs into shares of Common Stock, Director will obtain full voting and other rights as a stockholder of the Company.

 

4.Dividend Equivalents.  Unless otherwise determined by the Committee, (i) any cash dividends or distributions credited to Director’s account shall be deemed to have been invested in additional restricted stock units on the record date established for the related dividend or distribution in an amount equal to the greatest whole number which may be obtained by dividing (A) the value of such dividend or distribution on the record date by (B) the Fair Market Value of one share of Common Stock on such date, and such additional restricted stock units shall be subject to the same terms and conditions as are applicable in respect of RSUs with respect to which such dividends or distributions were payable, 

 

 

and (ii) if any such dividends or distributions are paid in shares of Common Stock or other securities, such shares and other securities shall be subject to the same restrictions as apply to the RSUs with respect to which they were paid.

 

5.Conversion to Common Stock.  Unless the RSUs are forfeited prior to the Vesting Date as provided in Section 1(b) of this Agreement, the vested RSUs will convert to shares of Common Stock on the Vesting Date or on such later date(s) irrevocably selected by Director in writing and timely filed with the Company.  Evidence of the issuance of the shares of Common Stock pursuant to this Agreement may be accomplished in such manner as the Company or its authorized representatives shall deem appropriate including, without limitation, electronic registration, book-entry registration or issuance of a certificate or certificates in the name of Director or in the name of such other party or parties as the Company and its authorized representatives shall deem appropriate. In the event the shares of Common Stock issued pursuant to this Agreement remain subject to any additional restrictions, the Company and its authorized representatives shall ensure that Director is prohibited from entering into any transaction that would violate any such restrictions, until such restrictions lapse.

 

6.Community Interest of Spouse.  The community interest, if any, of any spouse of Director in any of the RSUs shall be subject to all of the terms, conditions and restrictions of this Agreement and the Plan, and shall be forfeited and surrendered to the Company upon the occurrence of any of the events requiring Director’s interest in such RSUs to be so forfeited and surrendered pursuant to this Agreement.

 

7.Tax Matters.  Director acknowledges that the tax consequences associated with the Award are complex and that the Company has urged Director to review with Director’s own tax advisors the federal, state, and local tax consequences of this Award.  Director is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  Director understands that Director (and not the Company) shall be responsible for Director’s own tax liability that may arise as a result of this Agreement.

 

8.Restrictions on Issuance of Shares of Common Stock.  If at any time the Committee shall determine in its discretion, that registration, listing or qualification of the shares of Common Stock covered by the RSUs upon any securities exchange or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to the settlement of the RSUs, the RSUs may not be settled in whole or in part unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

 

9.Plan Controls.  The terms contained in the Plan are incorporated into and made a part of this Award Agreement and this Award Agreement shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Agreement, the provisions of the Plan shall be controlling and determinative.

 

10.No Right to Continued Service.  Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company to terminate Director’s service as a director at any time, nor confer upon Director any right to continue as a director of the Company.

 

11.Successors.  This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Award Agreement and the Plan.

 

12.Notice.  Notices hereunder must be in writing, delivered personally or sent by registered or certified U.S. mail, return receipt requested, postage prepaid. Notices to the Company must be 

 

 

addressed to Sally Beauty Holdings, Inc., 3001 Colorado Boulevard, Denton, TX 76210, Attn: Secretary, or any other address designated by the Company in a written notice to Director. Notices to Director will be directed to the address of Director then currently on file with the Company, or at any other address given by Director in a written notice to the Company.

 

13.Amendments and Modifications.   The Committee or its designee may, in the Committee’s or the designee’s sole and absolute discretion, as applicable, amend or modify this Agreement in any manner that is either (i) not adverse to Director, or (ii) consented to by Director.

 

14.Compensation Recoupment Policy.  This Award Agreement shall be subject to the terms and conditions of any compensation recoupment policy adopted from time to time by the Board or any committee of the Board, to the extent such policy is applicable.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an authorized officer and Director has executed this Agreement, all as of the date first above written.

 

	
 
	
SALLY BEAUTY HOLDINGS, INC.

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Title:
	
President & Chief Executive Officer, Sally Beauty Holdings, Inc.

 

DIRECTOR ACKNOWLEDGES AND AGREES THAT THE RSUs SUBJECT TO THIS AWARD SHALL VEST AND THE RESTRICTIONS RESULTING IN THE FORFEITURE OF THE RSUs SHALL LAPSE, IF AT ALL, ONLY DURING THE PERIOD OF DIRECTOR’S SERVICE TO THE COMPANY OR AS OTHERWISE PROVIDED IN THIS AGREEMENT (NOT THROUGH THE ACT OF BEING GRANTED THE RSUs).  DIRECTOR FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT OR THE PLAN SHALL CONFER UPON DIRECTOR ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF DIRECTOR’S SERVICE TO THE COMPANY.  DIRECTOR ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN, REPRESENTS THAT HE OR SHE IS FAMILIAR WITH THE TERMS AND PROVISIONS THEREOF, AND HEREBY ACCEPTS THE RSUs SUBJECT TO ALL OF THE TERMS AND PROVISIONS HEREOF AND THEREOF, INCLUDING THE MANDATORY DISPUTE RESOLUTION PROVISIONS.  DIRECTOR HAS REVIEWED THIS AGREEMENT AND THE PLAN IN THEIR ENTIRETY, HAS HAD AN OPPORTUNITY TO OBTAIN THE ADVICE OF COUNSEL PRIOR TO EXECUTING THIS AGREEMENT, AND FULLY UNDERSTANDS ALL PROVISIONS OF THIS AGREEMENT AND THE PLAN.

 

	
 
	
 
	
 
	
DIRECTOR

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
DATED:
	
 
	
 
	
SIGNED:
	
 

Full NameExhibit

RETIREMENT AGREEMENT

This Retirement Agreement ("Agreement") is entered into on February 1, 2019 by and between John O. Lucks ("Lucks"), and Heritage-Crystal Clean, Inc. ("HCCI").

In consideration of the foregoing and the following mutual undertakings, and subject to the terms and conditions of this Agreement, Lucks and HCCI agree as follows:

1.Lucks's Retirement: Lucks hereby agrees to retire from his position as Senior Vice President, Sales and Marketing of HCCI, effective February 1, 2019 (“Retirement Date”).

		
	2.
	Severance Benefits: 

2.1    HCCI will provide Lucks with severance and certain other benefits contained in his Executive Employment Agreement dated March 1, 2000 ("the Employment Agreement") and as set forth in Exhibit A. 

2.2    Except for the benefits set forth in this Agreement and its Exhibit A, Lucks acknowledges that HCCI will have paid him all wages and other compensation to which he is entitled in connection with his employment with HCCI, including any and all wages and other compensation due under the Employment Agreement, and that he is not entitled to any additional compensation under the Employment Agreement or otherwise with respect to his employment with HCCI.

		
	3.
	Release:

3.1    To the fullest extent permitted by applicable laws, Lucks hereby releases HCCI, all of its parents, subsidiaries and affiliates, and all of its and their current and/or former employees, officers, members, managers, shareholders, owners, directors, trustees, representatives, agents, attorneys, employee benefit plans and their fiduciaries and administrators, (collectively, "Released Parties") from any and all claims, demands, liabilities, obligations, injuries, actions or rights of action of any nature whatsoever (including without limitation claims for damages, attorneys' fees, interest and costs) based upon, arising out of or in any manner connected with Lucks's employment with HCCI, his service as an officer for HCCI, or the termination of his employment with HCCI, whether known or unknown, disclosed or undisclosed, administrative or judicial, suspected or unsuspected, that exist as of the date Lucks signs this Agreement, including, but not limited to claims: (a) arising out of Lucks's employment with HCCI, his service as an officer for HCCI, or the termination of his employment with HCCI; (b) arising under the Age Discrimination In Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act), 29 U.S.C. § 621 et seq.; (c) arising under all other federal, state and local laws; (d) based on contract, tort, common law or other theories of recovery; and (e) based upon, arising out of or in any manner connected with any acts, events or omissions occurring on or before the date Lucks signs this Agreement; provided, however, Lucks and HCCI acknowledge and agree that the foregoing release/covenant not to sue does not release or affect: any claim for Base Salary (as defined in the Employment Agreement) or accrued but untaken vacation benefits earned or accrued by Lucks prior to the Retirement Date, (ii) any claims for reimbursement of business expenses incurred prior to the Retirement Date, (iii) any rights with respect to any vested benefits under any employee benefit plans of HCCI, including his right to elect to continue coverage under HCCI's group health plan for himself and any covered dependents for a limited period of time at his own expense after the Retirement Date pursuant to COBRA, (iv) any rights Lucks may have with respect to his ownership of HCCI securities or otherwise related to his status as a HCCI shareholder, (v) any indemnification, advancement, reimbursement or similar rights under the Employment Agreement, HCCI's charter documents or other contract between Lucks and HCCI or under applicable insurance policies for the benefit of HCCI's officers and directors (all of which rights shall be unaffected by Lucks's retirement, and none of which rights or policies may be amended, terminated or otherwise changed after the date hereof to treat Lucks differently with respect to his period of officer service than other similarly situated officers); (vi) any right Lucks may have to enforce the terms of this Agreement or the Consulting Agreement, and (vii) any other rights Lucks may have that cannot be waived as a matter of law.

3.2    Lucks has been advised by HCCI that this Agreement does not prohibit Lucks from (x) filing an administrative charge of discrimination with a governmental agency, such as the United States Equal Employment Opportunity Commission ("EEOC"), relating to Lucks's employment with any of the Released Parties; or (y) participating in any investigation by the EEOC or other governmental agency. However, by this Agreement, Lucks is waiving and releasing, to the fullest extent permitted by applicable law, any and all entitlement to any form of personal relief arising from such charge or any legal action relating to any such charge. If the EEOC, any other administrative agency or other person brings a complaint, charge or legal action on Lucks' s behalf against any of the Released Parties based on any acts, events or omissions occurring on or before the date Lucks signs this Agreement, Lucks hereby waives any rights to, and will not accept, any remedy obtained through the efforts of such agency or person.

4.    Advisements:

4.1    Because the arrangements discussed in this Agreement affect important rights and obligations, HCCI advises Lucks to consult with an attorney before he agrees to the terms of this Agreement, and Lucks acknowledges that he has been so advised by this writing.

4.2    Lucks is advised that he has up to twenty-one (21) days from the date he receives this Agreement within which to consider it, and the Lucks may take as much of that time as he wishes before signing. If Lucks decides to accept this Agreement, he must sign this Agreement and return it to the Chair of the Compensation Committee at HCCI on or before the expiration of the twenty-one (21) days.

4.3    Lucks is advised that, if he signs this Agreement thereby accepting its terms and conditions, Lucks will have a period of seven (7) days following the date Lucks signs this Agreement to change his mind and revoke this Agreement. To revoke this Agreement, Lucks must deliver written notice of revocation to the Chair of the Compensation Committee at HCCI within the 7-day revocation period. This Agreement will not become binding and enforceable until the 7-day revocation period has expired.

5.    Non-Reliance: Lucks acknowledges that in entering this Agreement he has not relied on any representations or statements made by HCCI or any of the Released Parties other than those specifically stated in this Agreement.

6.    Lucks Acknowledgments: Lucks acknowledges that HCCI provided him ample time to review this Agreement and consult with an attorney before signing the Agreement. He further acknowledges and agrees that he understands the meaning of this Agreement, including the fact that he is releasing the Released Parties from any and all claims that exist as of the date he signs this Agreement. The Lucks also acknowledges and agrees that he is voluntarily entering into this Agreement.

7.    Non-Admission: Neither this Agreement nor any action pursuant to it constitutes an admission by any of the Released Parties of any wrongdoing or of any liability to Lucks arising under any law, including the Age Act.

8.    Successors and Assigns: This Agreement shall be binding upon Lucks and HCCI, and upon their heirs, administrators, representatives, executors, successors and assigns, and shall inure to the benefit of Lucks and HCCI, and to their heirs, administrators, representatives, executors, successors and assigns.

10.    Applicable Law: This Agreement shall be construed and enforced in accordance with the laws of the State of Illinois.

11.    Compliance with Section 409A of the Code: The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Internal Revenue Code ("Code Section 409A"), to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and be administered to be in compliance therewith. Any payments described in this Agreement that are due within the "short-term deferral period" (as defined in Code Section 409A) shall not be treated as deferred compensation unless applicable law requires otherwise. Each amount to be paid or benefit to be provided to Lucks pursuant to this Agreement that constitutes deferred compensation subject to Code Section 409A shall be construed as a separate identified payment for purposes of Code Section 409A.  Notwithstanding anything to the contrary in this Agreement, to the extent that any payments to be made in connection with Lucks's separation from service would result in the imposition of any individual excise tax and late interest charges imposed under Code Section 409A, the payment shall instead be made on the first business day after the earlier of (a) the date that is six (6) months following such separation from service or (b) the date of Lucks' s death.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the date first appearing above.

	
		
	Heritage-Crystal Clean, LLC
	John O. Lucks

	

	

	By: Brian Recatto
	 

	Its: President/CEO
	 

EXHIBIT A

		
	1.
	HCCI will pay to Lucks or any heirs, administrators, representatives, executors, successors and assigns two (2) years of Base Salary (as defined in the Employment Agreement) in bi-weekly installments consistent with Heritage-Crystal Clean, LLC payroll practices commencing on the Retirement Date.

		
	2.
	HCCI will pay to Lucks or any heirs, administrators, representatives, executors, successors and assigns any Management Incentive Plan (MIP) in cash awarded for calendar year 2018, payable in 2019, as though Lucks remained employed on the same terms as other executives receive. 

		
	3.
	HCCI will reimburse Lucks for the cost of maintaining COBRA continuation coverage under HCCI's group health plan for the greater of 12 months or until Lucks is fully covered by a subsequent health care plan, and for Medicare program premiums.

		
	4.
	Lucks will sign a letter resigning from all positions with HCCI effective on January __, 2019.

		
	5.
	The following previously granted and earned Long Term Incentive Plan (LTIP) stock grants will continue to vest as provided in the Stock Award plan, without regard to whether Lucks remains employed by HCCI:

	
			
	Grant Date Year
	Vest Date Year
	Amount

	2016 LTIP
	2020
	4,394

Lucks agrees that HCCI shall withhold shares from any vested amount to pay taxes associated with their payment and distribution.

1

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