Document:

Exhibit 10.3

 

RESTRICTED
STOCK AGREEMENT

 

(Time-Based
Vesting)

 

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of the
     day of
                ,
200   , between Christopher & Banks Corporation, a
Delaware corporation (the “Company”), and                           
(“Employee”).

 

1.             Award.

 

(a)           Shares.  Pursuant to the Christopher & Banks
Corporation 2005 Stock Incentive Plan, as amended (the “Plan”),
                                      
(                    )
shares (the “Restricted Shares”) of the Company’s common stock, par value $0.01
per share (“Common Stock”), shall be issued as hereinafter provided in Employee’s
name subject to certain restrictions thereon.

 

(b)           Issuance of
Restricted Shares.  The Restricted
Shares shall be issued upon acceptance hereof by Employee and upon satisfaction
of the conditions of this Agreement.

 

(c)           Plan Incorporated.  Employee acknowledges receipt of a copy of
the Plan, and agrees that this award of Restricted Shares shall be subject to
all of the terms and conditions set forth in the Plan, including future
amendments thereto, if any, pursuant to the terms thereof, which Plan is
incorporated herein by reference as a part of this Agreement.  Except as otherwise defined herein,
capitalized terms contained in this Agreement shall have the same meaning as
set forth in the Plan.

 

2.             Restricted
Shares.  Employee hereby accepts the
Restricted Shares when issued and agrees with respect thereto as follows:

 

(a)           Forfeiture
Restrictions.  The Restricted Shares
may not be sold, assigned, pledged, exchanged, hypothecated or otherwise
transferred, encumbered or disposed of to the extent then subject to the
Forfeiture Restrictions (as hereinafter defined), and in the event of
termination of Employee’s employment with the Company or employing subsidiary
for any reason other than (i) normal retirement on or after age
sixty-five, (ii) death or (iii) disability, as determined by the
Company or employing subsidiary, or except as otherwise provided in the second
to last sentence of subsection (b) of this Section 2, Employee shall,
for no consideration, forfeit to the Company all Restricted Shares to the
extent then subject to the Forfeiture Restrictions.  The prohibition against transfer and the
obligation to forfeit and surrender Restricted Shares to the Company upon
termination of employment are herein referred to as “Forfeiture Restrictions.”  The Forfeiture Restrictions shall be binding
upon and enforceable against any transferee of Restricted Shares.

 

1

 

(b)           Lapse of
Forfeiture Restrictions.  The
Forfeiture Restrictions shall lapse as to the Restricted Shares in accordance
with the following schedule, provided  that Employee has been
continuously employed by the Company (or any wholly owned or majority owned
subsidiary of the Company) from the date of this Agreement through the lapse
date:

 

	
  Lapse Date or Dates

  	
   

  	
  Percentage of Total Number of

  Restricted Shares as to which Forfeiture

  Restrictions Lapse on such Dates

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
                                       ,
  20  

  	
   

  	
   

  	
  %

  
	
                                       ,
  20  

  	
   

  	
   

  	
  %

  
	
                                       ,
  20  

  	
   

  	
   

  	
  %

  

 

Notwithstanding
the foregoing, the Forfeiture Restrictions shall lapse as to all of the
Restricted Shares on the earlier of (i) the occurrence of a Change in
Control (as such term is defined in Section 10 of the Plan), or (ii) the
date Employee’s employment with the Company is terminated by reason of death,
disability (as determined by the Company or employing subsidiary) or normal
retirement on or after age sixty-five. 
In the event Employee’s employment is terminated for any other reason,
including retirement prior to age sixty-five with the approval of the Company
or the employing subsidiary, the Committee which administers the Plan (the “Committee”)
may, in the Committee’s sole discretion, approve the lapse of Forfeiture
Restrictions as to any or all Restricted Shares still subject to such
restrictions, such lapse to be effective on the date of such approval or
Employee’s termination date, if later. 
If the Employee is not, and was not during any portion of Employee’s
term of employment, obligated to file reports with respect to the Company’s
equity securities pursuant to Section 16(a) of the Securities
Exchange Act of 1934, as amended, the Committee may delegate its authority to
approve the lapse of forfeiture restrictions as set forth in the preceding
sentence to such designee as the Committee deems appropriate in its sole
discretion.

 

(c)           Certificates.  A certificate evidencing the Restricted
Shares shall be issued by the Company in Employee’s name, or at the option of
the Company, in the name of a nominee of the Company, pursuant to which
Employee shall have voting rights and shall be entitled to receive all
dividends unless and until the Restricted Shares are forfeited pursuant to the
provisions of this Agreement.  The
certificate shall bear a legend evidencing the nature of the Restricted Shares,
and the Company may cause the certificate to be delivered upon issuance to the
Secretary of the Company or to such other depository as may be designated by
the Company as a depository for safekeeping until the forfeiture occurs or the
Forfeiture Restrictions lapse pursuant to the terms of the Plan and this
Agreement.  Upon request of the Committee
or its delegate, Employee shall deliver to the Company a stock power, endorsed
in blank, relating to the Restricted Shares then subject to the Forfeiture
Restrictions.  Upon the lapse of the Forfeiture
Restrictions without forfeiture, the Company shall cause a new certificate or
certificates to be issued without a legend regarding the Forfeiture
Restrictions in the name of Employee for the shares upon which Forfeiture
Restrictions lapsed.  Notwithstanding any
other provisions of this Agreement, the issuance or delivery of any shares of
Common Stock (whether subject to restrictions or unrestricted) may be postponed
for such period as may be required to comply with applicable requirements of
any national securities exchange or any requirements under any law 

 

2

 

or
regulation applicable to the issuance or delivery of such shares.  The Company shall not be obligated to issue
or deliver any shares of Common Stock if the issuance or delivery thereof shall
constitute a violation of any provision of any law or of any regulation of any
governmental authority or any national securities exchange.

 

3.             Income Tax
Matters.  In order to comply with all
applicable federal or state income tax laws or regulations, the Company may
take such action as it deems appropriate to ensure that all applicable federal
or state payroll, withholding, income or other taxes, which are the sole and
absolute responsibility of Employee, are withheld or collected from Employee.  In accordance with the terms of the Plan, and
such rules as may be adopted by the Committee under the Plan, the Employee
may elect to satisfy the Employee’s federal and state income tax withholding
obligations arising from the receipt of, or the lapse of restrictions relating
to, the Restricted Shares, by (i) delivering cash, a check (bank check,
certified check or personal check) or a money order payable to the Company, (ii) having
the Company withhold a portion of the Restricted Shares otherwise to be delivered
having a Fair Market Value equal to the amount of such taxes, (iii) delivering
to the Company shares of Common Stock already owned by the Employee having a
Fair Market Value equal to the amount of such taxes, or (iv) a combination
of the methods described above, as determined by the Committee.  The Company will not deliver any fractional
Restricted Shares but will pay, in lieu thereof, the Fair Market Value of such
fractional Restricted Shares.  The
Employee’s election regarding satisfaction of federal and state income tax
withholding obligations must be made on or before the date that the amount of
tax to be withheld is determined.

 

4.             Status of
Restricted Shares.  Employee agrees
that the Restricted Shares will not be sold or otherwise disposed of in any
manner which would constitute a violation of any applicable federal or state
securities laws.  Employee also agrees
that (i) the certificates representing the Restricted Shares may bear such
legend or legends as the Company deems appropriate in order to assure
compliance with applicable securities laws, (ii the Company may refuse to
register the transfer of the Restricted Shares on the stock transfer records of
the Company if such proposed transfer would, in the opinion of counsel to the
Company, constitute a violation of any applicable securities law and (iii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the Restricted Shares.

 

5.             Employment
Relationship.  Nothing in this
Agreement shall be construed as constituting a commitment, guaranty, agreement,
or understanding of any kind or nature that the Company or its subsidiaries
shall continue to employ the Employee, and this Agreement shall not affect in
any way the right of the Company or its subsidiaries to terminate the
employment of the Employee.  For purposes
of this Agreement, Employee shall be considered to be in the employment of the
Company as long as Employee remains an employee of either the Company, any
successor corporation or a parent or subsidiary corporation of the Company or
any successor corporation.  Any question
as to whether and when there has been a termination of such employment, and the
cause of such termination, shall be determined by the Committee, or its
delegate, as appropriate, and its determination shall be final.

 

6.             Committee’s
Powers.  No provision contained in
this Agreement shall in any way terminate, modify or alter, or be construed or
interpreted as terminating, modifying or altering 

 

3

 

any
of the powers, rights or authority vested in the Committee or, to a delegate to
the extent of such delegation, pursuant to the terms of the Plan or resolutions
adopted in furtherance of the Plan, including, without limitation, the right to
make certain determinations and elections with respect to the Restricted
Shares.

 

7.             Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all lawful successors
to Employee permitted under the terms of the Plan.

 

8.             Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware, without
reference to the principles of conflicts of laws.

 

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

 

 

	
   

  	
  CHRISTOPHER &
  BANKS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
					

 

4

 

Please
Check the Appropriate Item (One of the lines must be checked):

 

              I do not desire the alternative tax treatment provided for
in the Internal Revenue Code Section 83(b).

 

              I
do desire the alternative tax treatment provided for in Internal Revenue
Code Section 83(b) and desire that forms for such purpose be
forwarded to me.

 

* I acknowledge that the Company has urged me to
consult with a tax consultant or advisor of my choice before the above block is
checked.

 

Please
furnish the following information for shareholder records:

 

	
   

  	
   

  	
   

  
	
  (Given
  name and middle initial must

  	
   

  	
  Social
  Security Number

  
	
  be
  used for stock registry)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address
  (Street)

  	
   

  	
  Birth
  Date

  
	
   

  	
   

  	
  Month/Day/Year

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address
  (City)

  	
   

  	
  Day
  phone number

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address
  (Zip Code)

  	
   

  	
   

  

 

United
States Citizen: 
Yes       No

 

PROMPTLY NOTIFY THIS OFFICE OF
ANY CHANGE IN ADDRESS.

 

5Exhibit 10.4

 

RESTRICTED
STOCK AGREEMENT

 

(Performance-Based Vesting)

 

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of the
     day of
                ,
200   (the “Effective Date”), between Christopher & Banks
Corporation, a Delaware corporation (the “Company”), and
                          
(“Employee”).

 

1.             Award.

 

(a)           Shares.  Pursuant to the Christopher & Banks
Corporation 2005 Stock Incentive Plan, as amended (the “Plan”), the number of
shares of the Company’s common stock, par value $0.01 per share (“Common Stock”),
equal to the number of Restricted Shares at the Maximum Award Level specified
in Exhibit A (the “Restricted Shares”) shall be issued as hereinafter
provided in Employee’s name subject to certain restrictions thereon.

 

(b)           Issuance of
Restricted Shares.  The Restricted
Shares shall be issued upon acceptance hereof by Employee and upon satisfaction
of the conditions of this Agreement.

 

(c)           Plan Incorporated.  Employee acknowledges receipt of a copy of
the Plan, and agrees that this award of Restricted Shares shall be subject to
all of the terms and conditions set forth in the Plan, including future
amendments thereto, if any, pursuant to the terms thereof, which Plan is
incorporated herein by reference as a part of this Agreement.  Except as otherwise defined herein,
capitalized terms contained in this Agreement shall have the same meaning as
set forth in the Plan.

 

2.             Restricted
Shares.  Employee hereby accepts the
Restricted Shares when issued and agrees with respect thereto as follows:

 

(a)           Performance-Based
Forfeiture Restrictions.  Unless or
until the performance criteria described in Exhibit A are met, the
Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated
or otherwise transferred, encumbered or disposed of.  Employee shall, for no consideration, forfeit
to the Company all Restricted Shares subject to the Performance-Based
Forfeiture Restrictions (as hereinafter defined) that do not vest in accordance
with Exhibit A.  The prohibition
against transfer and the obligation to forfeit and surrender Restricted Shares
to the Company upon failure to meet the performance criteria in Exhibit A
are herein referred to as “Performance-Based Forfeiture Restrictions.”  The Performance-Based Forfeiture Restrictions
shall be binding upon and enforceable against any transferee of Restricted
Shares.

 

(b)           Time-Based
Forfeiture Restrictions.  The
Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated
or otherwise transferred, encumbered or disposed of to the extent then subject
to the Time-Based Forfeiture Restrictions (as hereinafter 

 

1

 

defined)
and, in the event of termination of Employee’s employment with the Company or
employing subsidiary for any reason other than (i) normal retirement on or
after age sixty-five, (ii) death or (iii) disability, as determined
by the Company or the employing subsidiary, or except as otherwise provided in
the second to last sentence of subsection (c) of this Section 2,
Employee shall, for no consideration, forfeit to the Company all Restricted
Shares to the extent then subject to the Time-Based Forfeiture
Restrictions.  The prohibition against
transfer and the obligation to forfeit and surrender Restricted Shares to the
Company upon termination of employment are herein referred to as “Time-Based
Forfeiture Restrictions.”  The
Performance-Based Forfeiture Restrictions and the Time-Based Forfeiture
Restricted are collectively referred to herein as the “Forfeiture Restrictions.”  The Time-Based Forfeiture Restrictions shall
be binding upon and enforceable against any transferee of Restricted Shares.

 

(c)           Lapse of
Forfeiture Restrictions.  The
Performance-Based Forfeiture Restrictions shall lapse as to the Restricted Shares
in accordance with, and to the extent provided in, Exhibit A.  The Time-Based Forfeiture Restrictions shall
lapse as to the Issued Restricted Shares (as defined in Exhibit A) in
accordance with the following schedule, provided  that Employee
has been continuously employed by the Company (or any wholly owned or majority
owned subsidiary of the Company) from the date of this Agreement through the
lapse date:

 

	
  Lapse Dates

  	
   

  	
  Fraction of Total Number of

  Issued Restricted Shares as to which

  Time-Based Forfeiture Restrictions

  Lapse on such Dates

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date the number of Issued Restricted Shares is first determined in
  accordance with Exhibit A

  	
   

  	
  1/3

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Second anniversary of the Effective Date

  	
   

  	
  1/3

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Third anniversary of the Effective Date

  	
   

  	
  1/3

  	
   

  

 

Notwithstanding the
foregoing, the Forfeiture Restrictions shall lapse as to all of the Restricted
Shares or the Issued Restricted Shares (once determined) on the earlier of (i) the
occurrence of a Change in Control (as such term is defined in Section 10
of  the Plan), or (ii) the date
Employee’s employment with the Company is terminated by reason of death,
disability (as determined by the Company or employing subsidiary) or normal
retirement on or after age sixty-five. 
In the event Employee’s employment is terminated for any other reason,
including retirement prior to age sixty-five with the approval of the Company
or employing subsidiary, the Committee which administers the Plan (the “Committee”)
may, in the Committee’s sole discretion, approve the lapse of Time-Based
Forfeiture Restrictions as to any or all Issued Restricted Shares still subject
to such restrictions, such lapse to be effective on the date of such approval
or Employee’s termination date, if later. 
If the Employee is not, and was not during any portion of Employee’s
term of employment, obligated to file reports with respect to the Company’s
equity securities pursuant to Section 16(a) of the Securities
Exchange Act of 1934, as amended, the Committee may delegate its authority to
approve the lapse of Time-Based Forfeiture Restrictions as set forth in the
preceding sentence to such designee as the Committee deems appropriate in its
sole discretion.

 

2

 

(d)           Certificates.  A certificate evidencing the Restricted
Shares shall be issued by the Company in Employee’s name, or at the option of
the Company, in the name of a nominee of the Company, pursuant to which
Employee shall not have voting rights and shall not be entitled to receive
dividends.  Employee shall not have any
voting rights and shall not be entitled to receive any dividends paid by the
Company with respect to the Restricted Shares unless and until they are
designated as Issued Restricted Shares (as defined in Exhibit A); provided
that, Employee shall forfeit such rights at such time, if at all, as the
Issued Restricted Shares are forfeited pursuant to the provisions of this
Agreement.  The certificate shall bear a
legend evidencing the nature of the Restricted Shares, and the Company may cause
the certificate to be delivered upon issuance to the Secretary of the Company
or to such other depository as may be designated by the Company as a depository
for safekeeping until the forfeiture occurs or the Forfeiture Restrictions
lapse pursuant to the terms of the Plan and this Agreement.  Upon request of the Committee or its
delegate, Employee shall deliver to the Company a stock power, endorsed in
blank, relating to the Restricted Shares then subject to the Forfeiture
Restrictions.  Upon the lapse of the
Forfeiture Restrictions without forfeiture, the Company shall cause a new
certificate or certificates to be issued without a legend regarding the
Forfeiture Restrictions in the name of Employee for the shares upon which
Forfeiture Restrictions lapsed. 
Notwithstanding any other provisions of this Agreement, the issuance or
delivery of any shares of Common Stock (whether subject to restrictions or
unrestricted) may be postponed for such period as may be required to comply
with applicable requirements of any national securities exchange or any
requirements under any law or regulation applicable to the issuance or delivery
of such shares.  The Company shall not be
obligated to issue or deliver any shares of Common Stock if the issuance or
delivery thereof shall constitute a violation of any provision of any law or of
any regulation of any governmental authority or any national securities
exchange.

 

3.             Income Tax Matters.  In order to comply with all applicable
federal or state income tax laws or regulations, the Company may take such
action as it deems appropriate to ensure that all applicable federal or state
payroll, withholding, income or other taxes, which are the sole and absolute
responsibility of Employee, are withheld or collected from Employee.  In accordance with the terms of the Plan, and
such rules as may be adopted by the Committee under the Plan, the Employee
may elect to satisfy the Employee’s federal and state income tax withholding
obligations arising from the receipt of, or the lapse of restrictions relating
to, the Restricted Shares, by (i) delivering cash, a check (bank check,
certified check or personal check) or a money order payable to the Company, (ii) having
the Company withhold a portion of the Restricted Shares otherwise to be delivered
having a Fair Market Value equal to the amount of such taxes, (iii) delivering
to the Company shares of Common Stock already owned by the Employee having a
Fair Market Value equal to the amount of such taxes, or (iv) a combination
of the methods described above, as determined by the Committee.  The Company will not deliver any fractional
Restricted Shares but will pay, in lieu thereof, the Fair Market Value of such
fractional Restricted Shares.  The
Employee’s election regarding satisfaction of federal and state income tax
withholding obligations must be made on or before the date that the amount of
tax to be withheld is determined.

 

4.             Status of Restricted Shares.  Employee agrees that the Restricted Shares
will not be sold or otherwise disposed of in any manner which would constitute
a violation of any applicable federal or state securities laws.  Employee also agrees that (i) the
certificates 

 

3

 

representing the
Restricted Shares may bear such legend or legends as the Company deems
appropriate in order to assure compliance with applicable securities laws, (ii) the
Company may refuse to register the transfer of the Restricted Shares on the
stock transfer records of the Company if such proposed transfer would, in the
opinion of counsel to the Company, constitute a violation of any applicable
securities law and (iii) the Company may give related instructions to its
transfer agent, if any, to stop registration of the transfer of the Restricted
Shares.

 

5.             Employment Relationship.  Nothing in this Agreement shall be construed
as constituting a commitment, guaranty, agreement, or understanding of any kind
or nature that the Company or its subsidiaries shall continue to employ the
Employee, and this Agreement shall not affect in any way the right of the
Company or its subsidiaries to terminate the employment of the Employee.  For purposes of this Agreement, Employee
shall be considered to be in the employment of the Company as long as Employee
remains an employee of either the Company, any successor corporation or a
parent or subsidiary corporation of the Company or any successor
corporation.  Any question as to whether
and when there has been a termination of such employment, and the cause of such
termination, shall be determined by the Committee, or its delegate, as
appropriate, and its determination shall be final.

 

6.             Committee’s Powers.  No provision contained in this Agreement
shall in any way terminate, modify or alter, or be construed or interpreted as
terminating, modifying or altering any of the powers, rights or authority
vested in the Committee or, to a delegate to the extent of such delegation,
pursuant to the terms of the Plan or resolutions adopted in furtherance of the
Plan, including, without limitation, the right to make certain determinations
and elections with respect to the Restricted Shares.

 

7.             Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all lawful successors
to Employee permitted under the terms of the Plan.

 

8.             Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware, without
reference to the principles of conflicts of laws.

 

4

 

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

 

	
   

  	
   

  
	
   

  	
  CHRISTOPHER & BANKS
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
					

 

5

 

Please Check the
Appropriate Item (One of the lines must be checked):

 

              I do not
desire the alternative tax treatment provided for in the Internal Revenue Code Section 83(b).

 

              I do desire
the alternative tax treatment provided for in Internal Revenue Code Section 83(b) and
desire that forms for such purpose be forwarded to me.

 

* I acknowledge that the
Company has urged me to consult with a tax consultant or advisor of my choice
before the above block is checked.

 

Please furnish the
following information for shareholder records:

 

	
   

  	
   

  	
   

  
	
  (Given name and middle
  initial must

  	
  Social Security Number

  
	
  be used for stock
  registry)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address (Street)

  	
  Birth Date

  
	
   

  	
  Month/Day/Year

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address (City)

  	
  Day phone number

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address (Zip Code)

  	
   

  

 

United States
Citizen: 
Yes       No

 

PROMPTLY NOTIFY THIS OFFICE OF ANY CHANGE IN
ADDRESS.

 

6

 

EXHIBIT A

 

Performance
Vesting

 

This Exhibit A to
the Restricted Stock Agreement (the “Agreement”) contains the performance
criteria for the Performance-Based Forfeiture Restrictions to lapse with
respect to the Restricted Shares. 
Capitalized terms used but not defined herein shall have the same
meanings assigned to them in the Plan and the Agreement.

 

Number of Restricted Shares at
Threshold, Target and Maximum Award Levels

 

	
  Award Level

  	
   

  	
  Number of Restricted Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
  [#
  of shares at Threshold]

  	
   

  
	
  Target

  	
   

  	
  [#
  of shares at Target]

  	
   

  
	
  Maximum

  	
   

  	
  [#
  of shares at Maximum]

  	
   

  

 

Lapse of Performance-Based
Forfeiture Restrictions

 

Except as otherwise
provided in Section 2(c) of the Agreement, the Performance-Based
Forfeiture Restrictions will lapse as follows:

 

·                  If Operating Income (as defined below)
equals
$              
(the “Operating Income Target”): (1) the Performance-Based Forfeiture
Restrictions will lapse with respect to the number of Restricted Shares equal
to the Target Award Level and (2) the number of Restricted Shares equal to
the difference between the Maximum Award Level and the Target Award Level will
be forfeited.

 

·                  If Operating Income equals 80% of the
Operating Income Target: (1) the Performance-Based Forfeiture Restrictions
will lapse with respect to the number of Restricted Shares equal to the
Threshold Award Level and (2) the number of Restricted Shares equal to the
difference between the Maximum Award Level and the Threshold Award Level will
be forfeited.

 

·                  If Operating Income equals 120% or more
of the Operating Income Target, the Performance-Based Forfeiture Restrictions
will lapse with respect to the number of Restricted Shares equal to the Maximum
Award Level.

 

·                  If Operating Income is below 80% of the
Operating Income Target: (1) no Performance-Based Forfeiture Restrictions
will lapse with respect to any Restricted Shares and (2) the number of
Restricted Shares equal to the Maximum Award Level will be forfeited

 

·                  If Operating Income is more than 80% but
less than 100% of the Operating Income Target, then (1) the
Performance-Based Forfeiture Restrictions will lapse with respect to the number
of Restricted Shares that is linearly interpolated between the Threshold Award
Level and the Target Award Level based on Operating Income as compared to 

 

7

 

Operating Income
Target and (2) the number of Restricted Shares equal to the difference
between the Maximum Award Level and the interpolated share number will be
forfeited.

 

·                  If Operating Income is more than 100% but
less than 120% of the Operating Income Target, then (1) the
Performance-Based Forfeiture Restrictions will lapse with respect to the number
of Restricted Shares that is linearly interpolated between the Target Award
Level and the Maximum Award Level based on Operating Income as compared to
Operating Income Target and (2) the number of Restricted Shares equal to
the difference between the Maximum Award Level and the interpolated share
number will be forfeited.

 

The number of Restricted
Shares for which the Performance-Based Forfeiture Restrictions lapse in
accordance with the performance criteria described above shall be referred to
in the Agreement as the “Issued Restricted Shares.”

 

As used herein, “Operating
Income” shall mean income before interest and taxes determined in accordance
with Generally Accepted Accounting Principles (“GAAP”) but prior to accruing
expense for any Awards paid under the 2006 Senior Executive Incentive Plan or
any other bonuses paid by the Company during the fiscal year and excluding the
impact (whether positive or negative) thereon of any change in accounting
standards or extraordinary items.

 

Chief
Financial Officer Certification Required as Condition to Vesting

 

The Chief Financial Officer
shall certify in writing to the Committee the Operating Income for the fiscal
year ended February 28, 2009.

 

No
Fractional Shares

 

To the extent the
Performance-Based Forfeiture Restrictions lapse pursuant to this Exhibit A
with respect to a number of shares of Common Stock that is not a whole number,
then the number of Issued Restricted Shares shall be rounded down to the
nearest whole number.

 

8

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