Document:

EXHIBIT 10.12

 

Form of

John Deere Restricted Stock Unit Grant

 

	
  

  	
  Deere & Company

  
	
  One John Deere Place, Moline, Illinois 61265
  USA

  

 

 

[Date]

 

 

Participant
Name

Address

City,
State, Zip Code

 

Dear
Name:

 

I am pleased to advise
you that on [Date] you were awarded X,XXX Restricted
Stock Units (RSU’s) pursuant to the John Deere Omnibus Equity and Incentive
Plan (Plan). Since this letter agreement, together with the Plan, contain the
terms of your grant you should read this letter carefully. Please note that your
signature is required at the bottom of page three.

 

RSU’s are an element of
total executive compensation designed as a long-term incentive to encourage
ownership and focus thinking on stockholder value.

 

RSU’s are common stock equivalents and represent the right to
receive an equivalent number of shares of Deere & Company (Company) $1 par
common stock (Common Stock) if and when certain vesting and retention
requirements, as detailed below, are satisfied.

 

Individual awards are
determined by the Deere & Company Board of Directors Compensation Committee
(Committee).

 

Your RSU’s are subject to
the following provisions:

 

(1)                      Restriction Period. Except as provided in paragraph (5)
below, your RSU’s will vest on [the third anniversary of the grant date]. In
addition, you are required to hold your RSU’s until the earlier of: (i) [the
fifth anniversary of the grant date]; or (ii) the first business day in January following
your retirement or termination of employment. When the vesting and retention
restrictions on your RSU’s lapse, you will receive a certificate for the shares
of common stock represented by your RSU’s (net of any shares withheld for
taxes) and your RSU’s will terminate.

 

You
may not sell, transfer, gift, pledge, assign or otherwise alienate the RSU’s
while they are subject to the vesting or retention restrictions. Any attempt to
do so contrary to the provisions hereof shall be null and void.

 

(2)                      Deferral Election. On or prior to the
fourth anniversary of the date of grant of the RSU’s, you may irrevocably elect
to defer until your retirement or termination the delivery of the shares of
Common Stock that would otherwise be due by virtue of the lapse of the five
year retention restriction set forth in paragraph (1) above. If such deferral
election is made, the RSU’s shall be retained by you and shall be
non-transferable until the first business day in January following your
retirement or termination.  Upon your
retirement or termination, the RSU’s will be converted to shares of Common
Stock and the share certificate (net of any shares withheld for taxes) will be
delivered to you as soon as practicable thereafter.

 

 

(3)                      Voting Rights. You have no voting rights with respect to the
RSU’s.

 

(4)                      Dividends and Other Distributions. You are entitled to
receive cash payments on the RSU’s equal to any cash dividends paid during the
restriction period with respect to the corresponding number of shares of Common
Stock. If any stock dividends are paid in shares of Common Stock during the
restriction period, you will receive additional RSU’s equal to the number of
Common Stock shares paid with respect to the corresponding number of shares of
Common Stock.

 

(5)                      Termination of Employment. If you terminate employment
during the vesting period due to disability or retirement pursuant to the John
Deere Pension Plan for Salaried Employees or any successor plan, subject to
paragraph (5) below, the RSU’s will continue to vest over the three year period
from the date of grant.

 

If
your employment terminates during the vesting period due to death, a prorated
number of the RSU’s will vest based on the number of full months employed after
the grant date divided by 36 months. The remaining invested RSU’s will be
forfeited. The retention restrictions will lapse on the first business day in January following
your death.

 

If
your employment terminates for cause, or for any other reasons not specifically
mentioned herein, all unvested RSU’s held by you at that time shall be
forfeited by you.

 

The
Committee may, at its sole discretion, waive any automatic forfeiture
provisions or apply new restrictions to the RSU’s.

 

(6)                      Non-Compete Condition. In the event that your employment
terminates during the 36 month vesting period of the RSU’s with the consent of
the Committee or by reason of retirement or disability, your rights to the
continued vesting of the RSU’s shall be subject to the conditions that until
the RSU’s vest, you shall (a) not engage, either directly or indirectly, in any
manner or capacity as advisor, principal, agent, partner, officer, director,
employee, member of any association or otherwise, in any business or activity
which is at the time competitive with any business or activity conducted by the
Company and (b) be available, except in the event of your death, at reasonable times
for consultations (which shall not require substantial time or effort) at the
request of the Company’s management with respect to phases of the business with
which you were actively connected during employment, but such consultations
shall not (except if your place of active service was outside of the United
States) be required to be performed at any place or places outside of the
United States of America or during usual vacation periods or periods of illness
or other incapacity. In the event that either of the above conditions is not
fulfilled, you shall forfeit all rights to any unvested RSU’s, held on the date
of the breach of the condition. Any determination by the Committee, which shall
act upon the recommendation of the Chairman, that you are, or have, engaged in
a competitive business or activity as aforesaid or have not been available for
consultations as aforesaid shall be conclusive.

 

(7)                      Conformity with Plan. Your RSU’s award is issued pursuant to
Section 5.1 (Other Awards) of the Plan and is intended to conform in all
respects with the Plan. Inconsistencies between this letter and the Plan shall
be resolved in accordance with the terms of the Plan. By executing and
returning the enclosed copy of this letter, you agree to be bound by all the terms
of the Plan and restrictions contained in this letter. All definitions stated
in the Plan shall be fully applicable to this letter.

 

2

 

(8)                      Amendment. This Agreement may be amended
only by a writing executed by the Company and you which specifically states
that it is amending this Agreement. Notwithstanding the foregoing, this
Agreement may be amended solely by the Committee by a writing which
specifically states that it is amending this Agreement, so long as a copy of
such amendment is delivered to you, and provided that no such amendment
adversely affecting your rights hereunder may be made without your written
consent. Without limiting the foregoing, the Committee reserves the right to
change, by written notice to you, the provisions of the RSU’s or this Agreement
in any way it may deem necessary or advisable to carry out the purpose of the
grant as a result of any change in applicable laws or regulations or any future
law, regulation, ruling, or judicial decision, provided that any such change
shall be applicable only to RSU’s which are then subject to restrictions as
provided herein.

 

(9)                      Severability. If all or any part of this
Agreement or the Plan is declared by any court or governmental authority to be
unlawful or invalid, such unlawfulness or invalidity shall not invalidate any
portion of this Agreement or the Plan not declared to be unlawful or invalid.
Any part of this Agreement so declared to be unlawful or invalid shall, if
possible, be construed in a manner which will give effect to the terms thereof
to the fullest extent possible while remaining lawful and valid.

 

(10)                No Employment Rights. Nothing herein
confers any right or obligation on you to continue in the employ of the Company
or any Subsidiary, nor shall this document affect in any way your right or the
right of the Company or any Subsidiary, as the case may be, to terminate your
employment at any time.

 

Please
execute this letter in the space provided to confirm your understanding and
acceptance of this letter agreement. You may make a photocopy for your records
if you wish.

 

	
   

  	
   

  	
  DEERE
  & COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  President, Global Financial Services and

  
	
   

  	
   

  	
  Corporate Human Resources

  

 

 

The undersigned hereby
acknowledges having read the Plan and this letter, and hereby agrees to be
bound by all the provisions set forth in the Plan and this letter.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Participant Name

  

 

3EXHIBIT 10.13

 

Form of

Nonemployee Director Restricted Stock Grant

 

	
   

  	
  Deere
  & Company

  
	
  One John Deere Place, Moline,
  Illinois 61265 USA

  

 

 

[Date]

 

Nonemployee
Director Name

Address

City,
State, Zip Code

 

Dear [Name]:

 

I am pleased to advise
you that on [Date] you were awarded [Number] shares of Restricted Stock
pursuant to the Deere & Company Nonemployee Director Stock Ownership Plan
(Plan). This award consists of the regular annual award of Restricted Stock
equivalent to $65,000 with the number of shares based on the mean of the high
and low price of Deere stock on [Date].

 

Please note that your
signature is required at the bottom of page two of this letter agreement.

 

Participation in the Plan
is limited to members of the Deere & Company Board of Directors who are not
currently employees of the Company. It is designed to encourage your personal
interest in Company growth and focus on stockholder value.

 

Restricted Stock is Deere
& Company (Company) common stock subject to certain restrictions, which are
summarized below. Prior to the lapse of restrictions, the Company will hold the
Restricted Stock for you.

 

Your Restricted Stock is
subject to the following provisions:

 

(1)                        Restrictions.
You may not sell, pledge, assign, transfer, gift, otherwise alienate, or
hypothecate the Restricted Shares while they are subject to the restrictions.
The Plan describes other restrictions that the Company may impose.

 

(2)                        Restriction
Period. All restrictions will lapse at the time of your retirement from the
Board, upon your death or upon a Change in Control. When the restrictions
lapse, you will receive a stock certificate for the shares. Termination of
Board membership for cause or for reasons other than normal retirement,
disability or death will result in forfeiture of all Restricted Shares.

 

(3)                        Voting
Rights. You have full voting rights with respect to the Restricted Shares
held for you by the Company during the restriction period.

 

(4)                        Dividends
and other Distributions. You will receive all cash dividends on the Restricted
Shares held for you by the Company during the restriction period. If any stock
dividends are declared, they will be held for you by the Company, and will be
subject to the same restrictions regarding transferability as the Restricted
Stock upon which the stock dividends were paid.

 

 

(5)                        Conformity
with Plan. Your Restricted Stock award is intended to conform in all
respects with the Plan. Inconsistencies between this letter and the Plan will
be resolved in accordance with the terms of the Plan. By executing and
returning this letter, you agree to be bound by all the terms of the Plan and
this letter.

 

Paragraphs (6) and (7) may affect your United States
tax liability.

 

(6)                        Tax
Consequences. Under Section 83 of the Internal Revenue Code, a
recipient of a Restricted Stock Award under the Nonemployee Director Restricted
Stock Ownership Plan will be taxed on the difference between the fair market
value of the Deere & Company common stock and the amount paid for such
stock (zero) when restrictions on the Award expire. Restrictions on the Award
will lapse (subject to all provisions of the Plan) on the date you terminate
your service as a Director by reason of death, disability, or retirement from
the Board (hereinafter referred to as the “Vesting Date”). The Award will
become taxable to you as ordinary income on the Vesting Date, and you will
receive a Form 1099MISC at the end of the year in which vesting occurred.
Dividends paid on the Restricted Stock are taxable income to you in the year
paid. You will receive a Form 1099DIV at the end of each year in which
dividends were paid.

 

(7)                        Tax Election. IRS regulations do allow you to elect
to be taxed on this stock grant immediately. If you wish to file such election,
you should contact Deere & Company’s Director of Taxes, [Name], within 30
days of receiving this letter to discuss the procedure. Most participants do
not file this election since they are required to pay immediate tax on the
stock without the benefit of immediate ownership.

 

Please execute this
letter in the space provided to confirm your understanding and acceptance of
this agreement. After this original letter is signed and returned in the
enclosed envelope, your Award certificate will be sent by return mail.

 

	
   

  	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEERE &
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  [Name]

  
	
   

  	
   

  	
  President,
  Global Financial Services and

  
	
   

  	
   

  	
  Corporate Human
  Resources

  

 

The undersigned hereby
acknowledges having read the Plan and this letter, and hereby agrees to be
bound by all the provisions set forth in the Plan and this letter.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name]

  

 

Enclosures:                                  Plan Booklet

Beneficiary Form

Return envelope

 

2

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