Document:

sbh-ex1021_175.htm

Exhibit 10.21

RESTRICTED STOCK AWARD CERTIFICATE

 

 

Non-transferable

GRANT TO

 

«Full_Name»

 (“Grantee”)

 

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

 

«RSAs» shares of its common stock, $0.01 par value (the “Shares”)

 

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 Shares, Grantee shall be deemed to have agreed to the Terms and Conditions set forth in this Award Certificate and the Plan.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.

 

Unless the expiration of restrictions on the Shares is accelerated as provided herein or otherwise in the discretion of the Committee, the restrictions on these Shares shall expire in accordance with the following schedule, provided that Grantee is providing services to the Company on each of the following dates:  

 

		
	
Vesting Date
	
Percent of Shares Vested

	
November 15, 2020
	
33.33%

	
November 15, 2021
	
33.33%

	
November 15, 2022
	
33.34%

 

 

IN WITNESS WHEREOF, Sally Beauty Holdings, Inc., acting by and through its duly authorized officers, has caused this Award Certificate to be duly executed.

 

 

 

		
	
SALLY BEAUTY HOLDINGS, INC.

 

By: 

Christian A. Brickman

 

Its: President, Chief Executive Officer & Director
	
 

 

Grant Date: November 5, 2019

	
 

 

Acknowledged and Accepted by Grantee:

 

__________________________________

 

 

 

 

 

 

TERMS AND CONDITIONS

 

1. Restrictions. The Shares are subject to each of the following restrictions. “Restricted Shares” mean those Shares that are subject to the restrictions imposed hereunder which restrictions have not then expired or terminated.  Restricted Shares may not be sold, transferred, exchanged, assigned, pledged, hypothecated or otherwise encumbered.  Subject to Section 3 hereof, if Grantee’s service terminates for any reason other than as described in Section 2(c) below, then Grantee shall forfeit all of Grantee’s right, title and interest in and to the Restricted Shares as of the date of termination, and such Restricted Shares shall be reconveyed to the Company without further consideration or any act or action by the Grantee. If any Restricted Shares do not vest pursuant to Section 2(c), then Grantee shall forfeit all of Grantee’s right, title and interest in and to such Restricted Shares as of the date of termination, and such Restricted Shares shall be reconveyed to the Company without further consideration or any act or action by the Grantee. The restrictions imposed under this Section shall apply to all shares of Common Stock or other securities issued with respect to Restricted Shares hereunder in connection with any merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure affecting the Common Stock.

 

2. Expiration and Termination of Restrictions. The restrictions imposed under Section 1 will expire on the earliest to occur of the following (the period prior to such expiration being referred to herein as the “Restricted Period”):

 

(a) as to the percentages of the Shares specified on the cover page hereof, on the respective vesting dates specified on such page, provided Grantee is providing services to the Company on each such vesting date;

 

(b) as to 100% of the Shares, upon the occurrence of a Change in Control, unless the Committee otherwise determines as provided in Section 13.8(b) of the Plan, provided Grantee is providing services to the Company on the date of such Change in Control; or

 

(c) as to that portion of the Shares that would have become vested on the next vesting date following the effective date of Grantee’s termination of service, upon Grantee’s termination of service as a result of Grantee’s death or Disability.

 

3. Retirement. If Grantee’s service with the Company is terminated as a result of his or her Retirement and Grantee agrees to be bound by certain restrictive covenants (including non-competition, non-solicitation, non-disclosure and non-disparagement covenants as determined in the sole discretion of the Company) (“Restrictive Covenants”), for the three-year period following his or her Retirement, then the Restricted Shares will continue to vest for the three-year period following Grantee’s Retirement as if Grantee’s service had not terminated, unless Grantee violates the any of the Restrictive Covenants.  If, in the sole discretion of the Committee, Grantee violates one of the Restrictive Covenants during the three-year period following Grantee’s Retirement, then Grantee shall forfeit all of his or her right, title and interest in and to such Restricted Shares as of the date of such violation, and such Restricted Shares shall be reconveyed to the Company without further consideration or any act or action by the Grantee.  If Grantee’s service with the Company is terminated as a result of his or her Retirement and Grantee does not agree to be bound by Restrictive Covenants, then Grantee shall forfeit all of his or her right, title and interest in and to such Restricted Shares as of the date of termination, and such Restricted Shares shall be reconveyed to the Company without further consideration or any act or action by the Grantee.

 

4. Delivery of Shares. The Shares will be registered in the name of Grantee as of the Grant Date and may be held by the Company during the Restricted Period in certificated or uncertificated form. If a certificate for Restricted Shares is issued during the Restricted Period, such certificate shall be registered in the name of Grantee and shall bear a legend in substantially the following form (in addition to any legend 

 

 

required under applicable state securities laws): “This certificate and the shares of stock represented hereby are subject to the terms and conditions contained in a Restricted Stock Award Certificate between the registered owner and Sally Beauty Holdings, Inc.  Release from such terms and conditions shall be made only in accordance with the provisions of such Award Certificate, copies of which are on file in the offices of Sally Beauty Holdings, Inc.”  Stock certificates for the Shares, without the above legend, shall be delivered to Grantee or Grantee’s designee upon request of Grantee after the expiration of the Restricted Period, but delivery may be postponed for such period as may be required for the Company with reasonable diligence to comply, if deemed advisable by the Company, with registration requirements under the 1933 Act, listing requirements of any national securities exchange, and requirements under any other law or regulation applicable to the issuance or transfer of the Shares.

 

5. Voting and Dividend Rights. 

 

(a) Grantee shall have full voting rights with respect to the Shares during and after the Restricted Period.  

 

(b) During the Restricted Period, any dividends accrued on the Restricted Shares shall be credited by the Company to an account for Grantee and accumulated without interest until the date upon which the Restricted Shares become vested, and any dividends accrued with respect to forfeited Restricted Shares will be reconveyed to the Company without further consideration or any act or action by Grantee.  In no event shall dividends be paid or distributed until the vesting restrictions of the Restricted Shares lapse.

 

6. Post-Employment Non-Solicitation. Grantee agrees that for a period of one year following Grantee’s termination of service with the Company for any reason, Grantee will not either directly or indirectly solicit for employment or otherwise interfere with the relationship of the Company or any Affiliate of the Company with any natural person who is then-currently employed by or otherwise engaged to perform services for the Company or any Affiliate of the Company.  Grantee further agrees that Grantee will not interfere with the business relationship between the Company and any Affiliate of the Company and one of its customers, suppliers or vendors by soliciting, inducing, or otherwise encouraging the customer, supplier or vendor to reduce or stop doing business with the Company and any Affiliate of the Company.  In the event Grantee’s service with the Company is terminated as a result of his or her Retirement, the provisions of this Section 6 shall apply regardless of whether Grantee agrees to be bound to Restrictive Covenants set forth in Section 3.

 

7. Payment of Taxes.  

 

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

 

(b)Upon issuance of the Shares hereunder, Grantee may make an election to be taxed upon such award under Section 83(b) of the Code.  To effect such election, Grantee may file an appropriate election with the Internal Revenue Service within thirty (30) days after award of the Shares and otherwise in accordance with applicable Treasury Regulations.  Grantee will, no later than the date as of which any amount related to the Shares first becomes includable in Grantee’s gross income for federal income tax purposes, pay to the Company or any employer Affiliate, or make other arrangements satisfactory to the Board regarding payment of, any federal, state and local taxes (including Grantee’s FICA obligation) 

 

 

required by law to be withheld with respect to such amount.  The obligations of the Company under this Award Certificate will be conditional on such payment or arrangements, and the Company and, where applicable, an employer Affiliate, will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to Grantee. The withholding requirement shall be satisfied by withholding from the Award shares of Common Stock having a Fair Market Value on the date of withholding equal to the amount required to be withheld for tax purposes, all in accordance with such procedures as the Company establishes.

 

8. Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Award Certificate and this Award Certificate 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 Certificate, the provisions of the Plan shall be controlling and determinative.  

 

9. No Right to Continued Service. Nothing in this Award Certificate shall interfere with or limit in any way the right of the Company or any Affiliate to terminate Grantee’s service at any time, nor confer upon Grantee any right to continue providing services to the Company or any Affiliate.

 

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

 

11. 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 Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.

 

12. 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 Award Certificate in any manner that is either (i) not adverse to Grantee, or (ii) consented to by Grantee. 

 

13. Compensation Recoupment Policy. This Award Certificate 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.sbh-ex1025_176.htm

 

 

Exhibit 10.25

SALLY BEAUTY HOLDINGS ANNUAL INCENTIVE PLAN

 

 

SECTION 1

Purpose

 

The purpose of the Sally Beauty Holdings Annual Incentive Plan is to permit Sally Beauty Holdings, Inc., and its consolidated subsidiaries (the “Company”), through awards of annual cash incentive compensation, to attract and retain executive officers and other key employees and to motivate these employees to promote the profitability and growth of the Company.

 

SECTION 2

Definitions

 

“Award” shall mean the amount earned and paid to a Participant under the Plan for a Performance Period.

 

“Board” shall mean the Board of Directors of the Company, or the successor thereto.

 

“Committee” shall mean the Compensation Committee of the Board.

 

“Eligible Employee” shall mean (i) any employee of the Company or any of its subsidiaries; or (ii) any single-member limited liability company or single-shareholder corporation providing executive management services to the Company or its Subsidiaries through its sole member or shareholder.

 

“Participant” shall mean, for each Performance Period, an Eligible Employee who has been selected to participate in the Plan for that Performance Period.

 

“Performance Objectives” shall mean the financial, operational and/or individual performance objectives established by or under the direction of the Committee with respect to a given Performance Period.

 

“Performance Period” shall mean the Company’s fiscal year or any other period designated by the Committee with respect to which an Award may be granted.

 

“Plan” shall mean this Sally Beauty Holdings Annual Incentive Plan, as amended from time to time.

 

“Scheduled Payment Date” for any Performance Period has the meaning assigned such term in Section 6(a) hereof.

 

“Stock Plans” shall mean the Sally Beauty Holdings Amended and Restated 2010 Omnibus Incentive Plan and any future equity compensation plans approved by the shareholders of the Company.

 

“Target Award” shall mean the amount of an Award, expressed as a percentage of base salary, that will be earned by a Participant for a Performance Period if designated Performance Objectives are achieved at the target level.

 

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SECTION 3

Administration

 

The Committee shall administer the Plan and shall have full authority to interpret the Plan, to establish rules and regulations relating to the operation of the Plan, to select Participants, to determine the amounts of any Awards and to make all determinations and take all other actions necessary or appropriate for the proper administration of the Plan. The Committee’s interpretation of the Plan, and all actions taken within the scope of its authority, shall be final and binding on the Company, its stockholders and Participants, former Participants, and their respective successors and assigns. No member of the Committee shall be eligible to participate in the Plan.

 

The Committee may delegate to the Chief Executive Officer some or all of its authority with respect to Eligible Employees who are not executive officers of the Company, including the authority to select Participants, establish or approve Performance Objectives, establish or approve Target Awards, or determine the amounts of Awards to Participants under the Plan.

 

SECTION 4

Eligibility and Participation

 

The Committee shall determine the Participants in the Plan for each Performance Period.

With respect to non-executive officers, the Chief Executive Officer shall recommend to the Committee a list of Eligible Employees (and/or job classifications or categories of Eligible Employees) proposed to be Participants in the Plan for each Performance Period. Within 90 days after the beginning of each Performance Period, the Committee shall review and approve the Eligible Employees and/or job classifications or categories of Eligible Employees who will be Participants in the Plan for that Performance Period. The Chief Executive Officer may add or delete non-executive officer Participants and/or job classifications or categories of Participants during a Performance Period, subject to Committee approval.

 

SECTION 5

Operation of the Plan

 

	
(a)
	
Establishment of Target Awards. Within 90 days after the beginning of each Performance Period, the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers) shall approve the percentage of each Participant’s base salary that will be awarded to the Participant if designated Performance Objectives are achieved at the target performance level (the “Target Award”). Each Participant’s Target Award percentage will be communicated in writing to the Participant. The actual Award to a Participant may be greater or less than his or her Target Award, depending on the level of achievement of Performance Objectives and depending on whether the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers) exercises discretion to increase or reduce a resulting Award as provided herein.  If a Participant’s Target Award is based on his or her managerial level, and if his or her managerial level changes during the Performance Period, the Target Award percentages for such managerial levels will be prorated based on the number of days the Participant was employed in the applicable managerial levels during the Performance Period.
	
 

 

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(b)
	
Performance Objectives. Within 90 days after the beginning of each Performance Period, the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers) shall establish or approve financial, operational and/or individual performance objectives relative to each Participant for a Performance Period, which may vary depending on the business unit, managerial level or role of the Participant. Such Performance Objectives may be expressed in terms of threshold, target and maximum performance levels, the achievement of which will affect the amount of the Awards earned, with or without interpolation between points. The applicable Performance Objectives for each Participant shall be communicated in writing to the Participant as soon as practicable after they are established.
	
 

 

	
(c)
	
Determination of Awards. As soon as practicable after the end of each Performance Period, the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers) will review the level of achievement of Performance Objectives for the Performance Period. While the achievement of Performance Objectives shall in all cases be taken under consideration by the Committee (or the Chief Executive Officer if so authorized by the Committee to determine Awards with respect to Participants who are not executive officers), the final Award for each Participant is within the sole discretion of the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers), based on such factors as it or he shall deem relevant. The Committee (or the Chief Executive Officer, as the case may be) shall review and approve all Awards, based upon the assumption that the Participant will be an employee on the Scheduled Payment Date (defined below).
	
 

 

SECTION 6

Payment of Awards

 

	
(a)
	
Awards will be paid to Participants within 30 days after the amount of such Awards for a Performance Period have been determined, but no later than March 15 of the calendar year following the end of the Performance Period for which the Awards, if any, were earned (the “Scheduled Payment Date”).
	
 

 

	
(b)
	
Unless otherwise provided in Section 7 or determined by the Committee, a Participant must be employed by the Company or one of its subsidiaries on the Scheduled Payment Date for a Performance Period to be eligible for an Award.
	
 

 

	
(c)
	
Awards made to Participants who are participating in the Plan for less than the entire Performance Period shall be prorated based on the number of days of participation.
	
 

 

	
(d)
	
Any Participant may be removed from consideration for an Award (or have the Award amount reduced) at the discretion of the Committee or its designee. Performance-related and ethics-related personnel actions are particularly likely to lead to removal from consideration.
	
 

 

	
(e)
	
Payment of Awards may be made in cash, stock, restricted stock, options, other stock-based or stock-denominated units or any combination thereof determined by the Committee. Equity or equity-based awards shall be granted under the terms and conditions of one or more of the Company’s Stock Plans. If so authorized by the Committee, payment of Awards may be deferred in accordance with a written election by the Participant pursuant to procedures established by the Committee.
	
 

 

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SECTION 7

Effect of Employment Status

 

	
(a)
	
Unless otherwise provided in this Section 7 or determined by the Committee, a Participant must be employed by the Company or one of its subsidiaries on the Scheduled Payment Date for a Performance Period to be eligible for an Award.
	
 

 

	
(b)
	
A Participant whose death or retirement occurs after the end of the Performance Period but before the Scheduled Payment Date shall be eligible for a payment on the Scheduled Payment Date on same terms as if he/she had been employed as of the Scheduled Payment Date.
	
 

 

	
(c)
	
A Participant who has been an active employee for at least three months of the Performance Period and is terminated as a result of disability before the end of the Performance Period shall be eligible for a prorated payment based upon the number of completed months of active employment during the Performance Period. A Participant whose employment is terminated by reason of disability after the end of the Performance Period but before the Scheduled Payment Date shall be eligible for a payment on the Scheduled Payment Date on the same terms as if he/she had been employed as of the Scheduled Payment Date.
	
 

 

	
(d)
	
In the event a Participant is transferred between the Company and one or more of its subsidiaries or to an unaffiliated company, the effect of the transfer on the Award shall be determined by the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers of the Company).
	
 

 

	
(e)
	
If a Participant begins employment or is promoted to an eligible position after the beginning of a Performance Period, the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers), in its or his discretion, may determine whether such employee may participate in the Plan and if so, the terms of such participation. Any Award earned by such Participant will be prorated based on the number of days such person participated in the Plan during the Performance Period, unless the Committee or the Chief Executive Officer, as the case may be, determines otherwise.
	
 

 

	
(f)
	
If a Participant is demoted during a Performance Period, the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers) will determine whether Plan participation ends at that time, or is continued, perhaps at a reduced level. If participation ends, any Award earned during the time of participation will be prorated based on the number of days such person participated in the Plan during the Performance Period and the level of participation.
	
 

 

	
(g)
	
If a Participant takes a leave of absence during the Performance Period for any reason, any Award earned by such Participant will be prorated based on the number of days such person participated in the Plan during the Performance Period, unless the Committee or the Chief Executive Officer, as the case may be, determines otherwise.
	
 

 

	
(h)
	
Except as may be required by law, a Participant must be an active employee for three months of a Performance Period to be eligible for an Award for that Performance Period, unless the Committee (or the Chief Executive Officer if so authorized by the Committee with respect to Participants who are not executive officers of the Company) determines otherwise.
	
 

 

	
(i)
	
(Applies to Canadian and United Kingdom/European Union Eligible Employees Only) - The date of termination of employment under the Plan shall be determined to be:
	
 

 

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1.
	
In the case of a Participant’s resignation or retirement, the day on which the Participant ceases to be an employee of the Company.
	
 

 

	
 
	
2.
	
In the case of the dismissal of the Participant or any other termination of employment not otherwise addressed, whether for cause or otherwise, the earlier of the date on which the Participant receives notice of termination of employment or the day on which the Participant ceases to be an employee of the Company.
	
 

 

	
 
	
3.
	
In the case of any single-member limited liability company or single-shareholder corporation providing executive management services to the Company or its Subsidiaries through its sole member or shareholder, the day that provision of executive management services ceases.
	
 

 

SECTION 8

Amendment and Termination

 

The Committee may amend the Plan at any time and from time to time. The Committee may terminate the Plan at any time.

 

SECTION 9

Other Provisions

 

	
(a)
	
No Eligible Employee or other person shall have any claim or right to be granted an Award under the Plan. Neither the establishment of this Plan, nor any action taken hereunder, shall be construed as giving any Eligible Employee any right to be retained in the employ of the Company or any of its subsidiaries. Nothing contained in the Plan shall limit the ability of the Company to make payments or awards to Eligible Employees under any other plan, agreement or arrangement.
	
 

 

	
(b)
	
The rights and benefits of a Participant hereunder are personal to the Participant and, except for payments made following a Participant’s death, shall not be subject to any voluntary or involuntary alienation, assignment, pledge, transfer, encumbrance, attachment, garnishment or other disposition.
	
 

 

	
(c)
	
Awards under the Plan shall not constitute compensation for the purpose of determining participation or benefits under any other plan of the Company unless specifically included as compensation in such plan.
	
 

 

	
(d)
	
The Company (or the Participant’s employing company) shall have the right to deduct from Awards any taxes or other amounts required to be withheld by law.
	
 

 

	
(e)
	
Nothing contained in the Plan shall be construed to prevent the Company or any of its subsidiaries from taking any corporate action which is deemed by it to be appropriate or in its best interest, whether or not such action would have an adverse effect on any Awards made under the Plan and nothing in the Plan shall be deemed to limit or restrict the ability of the Company or any of its subsidiaries from establishing any compensation plan or arrangement, or making any payment, or granting any Award to any Eligible Employee or other person. No employee, beneficiary or other person shall have any claim against the Company or any of its subsidiaries as a result of any such action.
	
 

 

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(f)
	
All questions pertaining to the construction, regulation, validity and effect of the provisions of the Plan shall be determined in accordance with the laws of the State of Texas without regard to principles of conflict of laws.
	
 

 

	
(g)
	
No member of the Committee or the Board, and no officer, employee or agent of the Company shall be liable for any act or action hereunder, whether of commission or omission, taken by any other member, or by any officer, agent, or employee, or, except in circumstances involving bad faith, for anything done or omitted to be done in the administration of the Plan.
	
 

 

	
(h)
	
(Applies to United States Eligible Employees Only) - Nothing in the Plan is intended to or shall change the nature of any Participant’s employment from being “at will,” terminable by the employer or employee at any time, with or without notice.
	
 

 

	
(i)
	
(Applies to Canadian and United Kingdom/European Union Eligible Employees Only) - Nothing in the Plan is intended to or shall change the nature of any Participant’s contract of employment with the Company or affect the Company’s right to terminate the employment of the Participant.
	
 

 

	
(j)
	
Nothing in this Plan is intended to change the nature of the contract to provide executive management services or affect any right to terminate such contract, in the case of any single-member limited liability company or single-shareholder corporation providing executive management services to the Company or its Subsidiaries through its sole member or shareholder.
	
 

 

	
(k)
	
Awards granted under this Plan shall be subject to any compensation recoupment policy that the Company may adopt from time to time that is applicable by its terms to the recipient of such award.”
	
 

 

SECTION 10

Effective Date

 

The Plan shall be effective as of October 1, 2018.

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