Document:

ex10-3.htm

Exhibit 10.3

 

[LOGO]

Constellation Brands, Inc.

 

MEMORANDUM

TERMS AND CONDITIONS OF STOCK OPTIONS

CLASS 1 COMMON STOCK

[Date]

The CONSTELLATION BRANDS, INC. Long-Term Stock Incentive Plan, as amended from time to time (the “Plan”), enables Constellation Brands, Inc. (the “Company”) to grant stock options to purchase Class 1 Common Stock, par value $.01 per share, of the Company (a “Share” or the “Shares”) to employees and directors of the Company (each, when granted a stock option, an “Optionee”).  The stock options represented by this Memorandum and the accompanying award letter (respectively, the “Options” and the Memorandum and accompanying award letter, together, the “Documents”) are subject to all of the terms and conditions contained in the Documents.  By accepting delivery of the Documents, the Optionee agrees to be bound by the terms and conditions of the Documents.

	
1.

	
Term of Options.  The Options, granted on _____________ (the “Date of Grant”), will terminate and expire, to the extent not previously exercised, at 5:00 p.m. Eastern Time on ______________, or such earlier date upon which the Options, or portion thereof, terminate or expire pursuant to the terms of the Plan or the Documents (the “Expiration Date”).

2.         Exercise of Options.

	
  

	
(a)

	
The Options may be exercised in whole or in part at any time on or after __________ but no Options may be exercisable after the Expiration Date.

	
  

	
(b)

	
The Optionee can exercise Options by complying with the provisions of the Plan and by following instructions provided in materials distributed by the Company.  The exercise price, $______ per share (the “Exercise Price”), for the number of shares subject to the Option (the “Option Shares”) being purchased and any related withholding tax obligations may be paid by the Optionee by (i) delivery of cash, money order or a certified or cashier’s check; (ii) tendering previously acquired Shares or shares of Class A Common Stock, par value $.01 per share, of the Company (“Class A Shares”), as provided for in the Plan; (iii) delivery of a conversion notice or other conversion instructions acceptable to the Company irrevocably electing to convert a sufficient number of Shares received under the Option into Class A Shares (“Conversion Shares”) together with delivery of irrevocable instructions to a broker or other agent acceptable to the Company to 

 

  

  

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promptly sell the Conversion Shares and to deliver to the Company the appropriate amount of proceeds; and/or (iv) any other payment method that is established by the Company (which payment method may be restricted or eliminated from time to time by the Company, in its sole discretion).

 

	
  

	
(c)

	
The Company will, without transfer or issue tax to the Optionee, issue and cause to be delivered to the Optionee the number of Option Shares purchased as soon as reasonably practicable after the Optionee has appropriately exercised any Options.  The Company is not required to issue Shares to the Optionee until all obligations to withhold taxes and similar charges have been resolved to the satisfaction of the Company.

3.         Termination of Relationship.  As long as the Optionee continues to be a director of the Company, the Options may be exercised once they have vested and prior to their expiration.  If the Optionee ceases to be a director of the Company as a result of the Optionee’s death or disability, the Options shall all immediately vest.  For this purpose, “disability” means a long-lasting physical or mental impairment that prevents the Optionee from performing his/her duties as a director, as solely determined by the Board of Directors.  In addition, subject to Section 4 below, Options which have vested prior to the termination of the Optionee’s relationship with the Company (or which have vested as a result of the Optionee’s death or disability as set forth above) may be exercised by the Optionee, his designated beneficiary or legal representative or permitted transferee within one (1) year after the last day on which the Optionee was a member of the Board of Directors of the Company (the last day on which the Optionee is a member of the Board of Directors of the Company is referred to as the “Termination Date”).

4.         Limitations on Exercise Following Termination of Relationship.

	
  

	
(a)

	
The time period set forth in Section 3 above is subject to the restriction that Options may not be exercised after their Expiration Date.

	
  

	
(b)

	
The time period set forth in Section 3 above is also subject to the restriction that no Option may be exercised by any person if the Optionee’s relationship with the Company has been terminated for Cause, as defined in the Plan.

	
  

	
(c)

	
Except as otherwise provided by the Committee administering the Plan, (i) the only Options that may be exercised after the Termination Date are those Options that were exercisable by the Optionee on the Termination Date; and (ii) any Options which are not exercisable on the Termination Date will automatically terminate on the Termination Date.

	
  

	
(d)

	
Any Options which are exercisable on the Termination Date, but which are not exercised within the one (1) year period specified in Section 3 above, will automatically terminate at the end of that period.

 

 

  

  

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5.

	
Adjustments for Certain Events.  The number and kind of unexercised Options and the Exercise Price of such Options are subject to adjustment in the event that certain transactions are taken by the Company which affect the Company’s capital stock.

	
6.

	
Type of Options.  The Options are nonqualified stock options granted pursuant to Section 5 of the Plan.

	
7.

	
No Transfer of Options.   Unless transferability is authorized by the Option grant or otherwise permitted by the Committee, Options are not transferable by the Optionee other than (i) by will or the laws of descent and distribution, or (ii) pursuant to a domestic relations order.  Because of laws affecting the transferability of the Option Shares, the Optionee should understand the securities laws and other implications of any transfer of Options.

	
8.

	
General Restriction on Issuance of Shares.  The Company may require information or documents which enable it to insure compliance with any law or Rules (as defined in the Plan) of the Securities and Exchange Commission or any other governmental authority having jurisdiction under the Plan before it issues any Shares upon the exercise of any Options.  If at any time the Committee administering the Plan shall determine that the listing, registration or qualification of the Option Shares under any state or federal law or other applicable Rule, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of the granting of the Options or the issue or purchase of Shares thereunder, such Options may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

	
9.

	
Limitation on Sale or Disposition of Option Shares.  If the Committee determines that the ability of the Optionee to sell or transfer Option Shares is restricted, then the Company may place a restrictive legend or stop transfer notation on its books with respect to such Option Shares.  If a legend or stop transfer notation is placed on the Company’s books with respect to an Optionee’s Option Shares, the Optionee may only sell such Option Shares in compliance with such legend or notation.

	
10.

	
No Listing of Option Shares; Conversion.  The Company has not listed the Option Shares for trading on the New York Stock Exchange and does not intend to effect such a listing.  Pursuant to the Certificate of Incorporation of the Company, Option Shares may be converted into Class A Shares, but only if the Class A Shares received upon the conversion are sold or transferred immediately following the conversion in a market transaction or qualifying private transaction as such terms are defined in the Company’s Certificate of Incorporation.  The Class A Shares into which Option Shares may be converted have been or will, prior to issuance, be listed for trading on the New York Stock Exchange.

	
11.

	
Incorporation of Plan.  The Options are subject to the terms and conditions of the Plan, which are incorporated herein by reference.  The Company, upon request, will provide a

 

  

  

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copy of the Plan to the Optionee.  To the extent that the terms and conditions of the Documents are inconsistent with the Plan, the provisions of the Plan shall control.

 

	
12.

	
Applicable Times and Dates.  All references to times and dates in the Plan and in documents relating to the Plan refer, respectively, to Eastern Standard Time (or Eastern Daylight Savings Time, as appropriate) in the United States of America and to dates in New York State based on such Eastern Standard Time (or Eastern Daylight Savings Time, as appropriate).ex10-4.htm

 

Exhibit 10.4

RESTRICTED STOCK AGREEMENT

Pursuant to

CONSTELLATION BRANDS, INC.

LONG-TERM STOCK INCENTIVE PLAN

Name of Participant:

 

Date of Grant:

 

Number of Shares:

 

Value of Each Share on Date of Grant:         $

 

 

This RESTRICTED STOCK AGREEMENT (the "Agreement"), dated as of ______________, is made between Constellation Brands, Inc. (the "Company") and ______________ (the "Participant") to record the granting of Restricted Stock on _____________ (the "Date of Grant") to the Participant pursuant to the Company's Long-Term Stock Incentive Plan, as amended from time to time (the "Plan").

The Company and the Participant hereby agree as follows:

1.         Grant of Shares.  The Company hereby grants to the Participant, as of the Date of Grant, subject to and in accordance with the terms and conditions of the Plan and this Agreement, _______ shares of the Company's Class A Common Stock, par value $.01 per share (the "Class A Stock").  (The grant of shares of Class A Stock to the Participant, evidenced by this Agreement, is an award of Restricted Stock (as defined in the Plan) and such shares of Restricted Stock are referred to herein as the "Shares".)

2.         Vesting of Shares.

(a)           Service.  Ownership of 100% of the Shares shall vest on __________, provided that the Participant continues as a member of the Company’s Board of Directors until such date.

(b)           Death or Disability.  If the Participant ceases being a member of the Company’s Board of Directors as a result of the Participant’s death or disability, the Shares shall immediately vest.  For this purpose, “disability” means a long-lasting physical or mental impairment that prevents the Participant from performing his/her duties as a member of the Company’s Board of Directors, as solely determined by the Board of Directors.

 

  

  

 

 

(c)           Termination.  If the Board of Directors decides not to nominate the Participant for an additional term as a member of the Company’s Board of Directors, unless such decision is for Cause, the Shares shall vest on the date of the Company’s next Annual Meeting of Stockholders, at which directors are elected; provided that the Participant continues as a member of the Company’s Board of Directors until such date.

(d)           Change in Control. The Shares are subject to the provisions of the Plan pertaining to a Change in Control of the Company.

3.         Forfeiture.  Shares that do not become vested in accordance with the vesting criteria set forth in Section 2 above (and any dividends or other distributions related to such Shares) shall be forfeited to the Company.

4.         Legend. Each share certificate representing the Shares shall bear a legend indicating that such Shares are "Restricted Stock" and are subject to the provisions of this Agreement and the Plan.

5.         Transferability; Restricted Share Certificates to be Held by the Company.  The Shares shall become transferable only when they become vested in accordance with Section 2 of this Agreement.  Share certificates representing all unvested Shares shall be held by the Company until such Shares have become vested.  As the Shares vest, and as all other restrictions and conditions set forth in this Agreement and under the Plan (as they apply to Restricted Stock) are satisfied, certificates representing the Shares (along with any dividends and other distributions relating to those Shares) shall be released to the Participant.  At that time, the Company shall take such steps as may be appropriate to delete the legend on the certificate which identifies the Shares as Restricted Stock.

6.         Section 83(b) Election.  The Participant may elect, within 30 days of the Date of Grant pursuant to Section 83(b) of the Internal Revenue Code, to include in his or her gross income the fair market value of the Shares covered by this Agreement in the taxable year of grant.  If the Participant makes this election, he shall promptly notify the Company by submitting to the Company a copy of the statement filed with the Internal Revenue Service in which the Participant makes such election.

7.         General Restrictions on Issuance of Stock Certificates.  The Company shall not be required to deliver any certificate representing the Shares until it has been furnished with such opinions, representations or other documents as it may deem necessary or desirable, in its discretion, to insure compliance with any law or Rules of the Securities and Exchange Commission or any other governmental authority having jurisdiction under the Plan or over the Company, the Participant, or the Shares or any interests granted thereunder.  This award of Restricted Stock is also subject to the condition that, if at any time the Committee administering the Plan shall determine, in its discretion, that the listing, registration or qualification of the Shares (or any capital stock distributed thereon) upon the  New York Stock Exchange, any other securities exchange, the NASDAQ Stock Market or under any state or Federal law or other applicable Rule, or the consent or approval of any 

 

  

  

  

 

governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of this award of Restricted Stock or the issue of the Shares (or the issue of any dividends or other distributions related to the Shares), the Shares (and any dividends or other distributions related thereto) may not be transferred unless such listing, registration, qualification, consent or approval shall have been effected or obtained to the complete satisfaction of the Committee and free of any conditions not acceptable to the Committee.

8.         Rights as Shareholder.  Except for the dividend and distribution restrictions described below, and the transfer and other restrictions set forth elsewhere in this Agreement and in the Plan, the Participant, as record holder of the Shares, shall possess all the rights of a holder of the Company's Class A Stock, including voting, dividend and other distribution rights, provided, however, that prior to vesting, the certificates representing the Shares, as well as any dividends or other distributions with respect to such Shares, shall be held by the Company for the benefit of the Participant.  Any distributions with respect to the Shares in the form of capital stock shall be treated as Restricted Stock in the same manner as the Shares.  If the underlying Shares do not vest, then any capital stock distributed with respect to the Shares, as well as any other dividends or other distributions with respect to such Shares, shall be forfeited to the Company.  The Participant agrees to deliver to the Company a stock power executed in blank covering the Shares (and covering any capital stock distributed with respect to such Shares) which shall be returned to Participant with the appropriate stock certificate when the Shares represented thereby vest.  The stock power with respect to any certificate representing Shares which do not vest shall be completed in the name of the Company by an officer of the Company and returned to the treasury.

9.         Adjustment of Shares.  As provided by the Plan, in the event of any change in the capital stock of the Company by reason of any stock dividend, stock split, recapitalization, reorganization, merger, consolidation, split-up, combination, or exchange of shares, or rights offering to purchase capital stock at a price substantially below fair market value, or of any similar change affecting the capital stock, the Shares shall be adjusted automatically consistent with such change to prevent substantial dilution or enlargement of the rights granted to, or available for, the Participant hereunder.

10.       Coordination With Plan.  The Participant acknowledges that he has previously received a copy of the Plan and agrees to be bound by all of the terms and provisions thereof, including any which may conflict with those contained in this Agreement.  Capitalized terms used in this Agreement and not otherwise defined shall have the meaning given to such terms under the Plan.

11.       Notices.  All notices to the Company shall be in writing and sent to the Company's General Counsel at the Company's offices located at 207 High Point Drive, Building 100, Victor, New York 14564.  Notices to the Participant shall be addressed to the Participant at ________________________.

  

  

  

IN WITNESS WHEREOF, the Company and the Participant have caused this Restricted Stock Agreement to be executed on the date set forth opposite their respective signatures, it being further understood that the Date of Grant may differ from the date of signature.

	
Dated:

	  	
_____________________

	  	
CONSTELLATION BRANDS, INC.

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	
By:

	
___________________________

	  	  	  	  	  	  
	  	  	  	  	
Its:

	
___________________________

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	
Dated:

	  	
_____________________

	  	
PARTICIPANT

	  	  	  	  	  
	  	  	  	  	______________________________________

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