Document:

exv10w1

 

Exhibit 10.1

THE MEN’S WEARHOUSE, INC.

1992 NON-EMPLOYEE DIRECTOR STOCK OPTION
PLAN

(As Amended and Restated Effective
January 1, 2004)

     
1. Purpose. This 1992 Non-Employee
Director Stock Option Plan (the “Plan”) of
The Men’s Wearhouse, Inc., a Texas corporation (the
“Company”), as amended and restated effective
January 1, 2004, is adopted, subject to stockholder
approval, for the benefit of the directors of the Company who at
the time of their service are not employees of the Company or
any of its subsidiaries (“Non-Employee
Directors”), and is intended to advance the interests
of the Company by providing the Non-Employee Directors with
additional incentive to serve the Company by increasing their
proprietary interest in the success of the Company.

     
2. Definitions. The terms set forth
below shall have the meaning set out below throughout the Plan,
unless the context in which any such word or phrase appears
reasonably requires a broader, narrower or different meaning:

		
	 	     
    (a) “Award” shall mean,
    individually or collectively, a grant under the Plan of an
    Option, Restricted Stock Award or Stock Appreciation Right, in
    each case subject to the terms and provisions of the Plan.
    
	 
	 	     
    (b) “Award Agreement” shall
    mean an agreement that sets forth the terms and conditions
    applicable to an Award granted under the Plan.
    
	 
	 	     
    (c) “Code” shall mean the
    Internal Revenue Code of 1986, as amended.
    
	 
	 	     
    (d) “Committee” shall mean
    the committee of the Board of Directors of the Company
    established, in accordance with the terms of the Plan, to
    administer the Plan.
    
	 
	 	     
    (e) “Fair Market Value”
    shall have the meaning set forth in Paragraph 6(a).
    
	 
	 	     
    (f) “Final Friday” shall
    mean the last Friday of a Fiscal Year.
    
	 
	 	     
    (g) “Fiscal Year” shall
    mean the fiscal year of the Company.
    
	 
	 	     
    (h) “Holder” shall mean a
    person who has been granted an Award or any person who is
    entitled to receive Stock (and/or cash in the case of a Stock
    Appreciation Right) under an Award.
    
	 
	 	     
    (i) “1934 Act” shall
    mean the Securities Exchange Act of 1934, as amended.
    
	 
	 	     
    (j) “Option” shall mean the
    right to purchase Stock at a price and upon terms as set forth
    in Paragraph 6.
    
	 
	 	     
    (k) “Option Price” shall
    have the meaning set forth in Paragraph 6(a).
    
	 
	 	     
    (l) “Restricted Period”
    shall mean the period during which Restricted Stock is subject
    to a substantial risk of forfeiture and during which Restricted
    Stock may not be sold, assigned, transferred, pledged or
    otherwise encumbered, which period shall end on the later of
    (i) one year after the date on which a Restricted Stock
    Award was awarded under the Plan, or (ii) such date
    established by the Committee.
    
	 
	 	     
    (m) “Restricted Stock”
    shall mean those shares of Stock issued pursuant to a Restricted
    Stock Award which are subject to the restrictions, terms and
    conditions set forth in the related Award Agreement for that
    Restricted Stock Award.
    
	 
	 	     
    (n) “Restricted Stock
    Award” shall mean an award of Restricted Stock pursuant
    to Paragraph 7.
    
	 
	 	     
    (o) “Stock” shall mean the
    Company’s Common Stock, $.01 par value (or such other
    par value as may be designated by act of the Company’s
    stockholders).
    

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    (p) “Stock Appreciation
    Right” or “SAR” shall mean any stock
    appreciation right granted pursuant to Paragraph 8.
    

     
3. Administration. The Plan shall be
administered by the Committee, the members of which shall
consist solely of directors of the Company who are also
employees of the Company. For the purposes of the Plan, a
majority of the members of the Committee shall constitute a
quorum for the transaction of business, and the vote of a
majority of those members present at any meeting shall decide
any question brought before that meeting. In addition, the
Committee may take any action otherwise proper under the Plan by
the affirmative vote, taken without a meeting, of a majority of
its members. No member of the Committee shall be liable for any
act or omission of any other member of the Committee or for any
act or omission on his own part, including but not limited to
the exercise of any power or discretion given to him under the
Plan, except those resulting from his own gross negligence or
willful misconduct. All questions of interpretation and
application of the Plan, or as to the Awards granted under the
Plan, shall be subject to the determination, which shall be
final and binding, of a majority of the whole Committee.
Notwithstanding the above, the selection of Non-Employee
Directors to whom Awards are to be granted, the number of shares
subject to or utilized in connection with any Award, the
exercise price of any Option, the grant price of any SAR, and
the term of any Option shall be as hereinafter provided and the
Committee shall have no discretion as to such matters.

     
4. Dedicated Shares; Maximum Awards.
The stock with respect to which Awards may be granted under the
Plan shall be shares of the Stock. Shares awarded under the Plan
may be treasury shares or authorized but unissued shares. The
aggregate number of shares of Stock with respect to which Awards
may be granted under the Plan is 167,500. The aggregate number
of shares of Stock with respect to which Options may be granted
under the Plan is 167,500. The aggregate number of shares of
Stock with respect to which Restricted Stock Awards may be
granted under the Plan is 83,750. The aggregate number of shares
of Stock with respect to which Stock Appreciation Rights may be
granted under the Plan is 167,500. The maximum number of shares
of Stock with respect to which Options may be granted to a
Non-Employee Director during a Fiscal Year is 2,000. The maximum
number of shares of Stock with respect to which Restricted Stock
Awards may be granted to a Non-Employee Director during a Fiscal
Year is 2,000. The maximum number of shares of Stock with
respect to which Stock Appreciation Rights may be granted to a
Non-Employee Director during a Fiscal Year is 2,000. Each of the
foregoing numerical limits stated in this Paragraph 4 shall
be subject to adjustment in accordance with the provisions of
Paragraph 5. If any outstanding Award expires or terminates
for any reason, is settled in cash in lieu of shares of Stock or
any Award is surrendered, the shares of Stock allocable to the
unexercised portion of that Award may again be subject to an
Award granted under the Plan. If shares of Stock are withheld
from payment of an Award to satisfy tax obligations with respect
to the Award, such shares of Stock will not count against the
aggregate number of shares of Stock with respect to which Awards
may be granted under the Plan. If a Stock Appreciation Right is
exercised, only the number of shares of Stock actually issued
shall be charged against the maximum number of shares of Stock
that may be delivered pursuant to Awards under the Plan.

     
5. Changes in the Company’s Capital
Structure.

     
(a) The existence of outstanding Awards
shall not affect in any way the right or power of the Company or
its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the
Company’s capital structure or its business, any merger or
consolidation of the Company, any issue of bonds, debentures,
preferred or prior preference shares ahead of or affecting the
Stock or Stock rights, the dissolution or liquidation of the
Company, any sale or transfer of all or any part of its assets
or business or any other corporate act or proceeding, whether of
a similar character or otherwise.

     
(b) If the Company shall effect a
subdivision or consolidation of Stock or other capital
readjustment, the payment of a Stock dividend, or other increase
or reduction of the number of shares of Stock outstanding,
without receiving compensation for money, services or property,
then (i) the number, class or series and per share price of
Stock subject to outstanding Options or other Awards under the
Plan shall be appropriately adjusted in such a manner as to
entitle a Holder to receive upon exercise of an Option or other
Award, for the same aggregate cash consideration, the equivalent
total number and class or series of Stock the Holder would

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have received had the Holder exercised his or her
Option or other Award in full immediately prior to the event
requiring the adjustment, and (ii) the number and class or
series of Stock then reserved to be issued under the Plan shall
be adjusted by substituting for the total number and class or
series of Stock then reserved, that number and class or series
of Stock that would have been received by the owner of an equal
number of outstanding shares of Stock of each class or series of
Stock as the result of the event requiring the adjustment.

     
(c) If while unexercised Options or other
Awards remain outstanding under the Plan (i) the Company
shall not be the surviving entity in any merger, consolidation
or other reorganization (or survives only as a subsidiary of an
entity other than an entity that was wholly-owned by the Company
immediately prior to such merger, consolidation or other
reorganization), (ii) the Company sells, leases or
exchanges or agrees to sell, lease or exchange all or
substantially all of its assets to any other person or entity
(other than an entity wholly-owned by the Company),
(iii) the Company is to be dissolved or (iv) the
Company is a party to any other corporate transaction (as
defined under section 424(a) of the Code and applicable
Department of Treasury regulations) that is not described in
clauses (i), (ii) or (iii) of this sentence (each
such event is referred to herein as a “Corporate
Change”), then, except as otherwise provided in an
Award Agreement (provided that such exceptions shall not apply
in the case of a reincorporation merger), or as a result of the
Committee’s effectuation of one or more of the alternatives
described below, there shall be no acceleration of the time at
which any Award then outstanding may be exercised, and no later
than ten days after the approval by the stockholders of the
Company of such Corporate Change, the Committee, acting in its
sole and absolute discretion without the consent or approval of
any Holder, shall act to effect one or more of the following
alternatives, which may vary among individual Holders and which
may vary among Awards held by any individual Holder (provided
that, with respect to a reincorporation merger in which holders
of the Company’s Stock will receive one share of the stock
of the successor corporation for each share of Stock of the
Company, none of such alternatives shall apply and, without
Committee action, each Award shall automatically convert into a
similar award of the successor corporation exercisable for the
same number of shares of the successor as the Award was
exercisable for shares of Stock of the Company):

		
	 	     
    (i) accelerate the time at which some or all
    of the Awards then outstanding may be exercised so that such
    Awards may be exercised in full for a limited period of time on
    or before a specified date (before or after such Corporate
    Change) fixed by the Committee, after which specified date all
    such Awards that remain unexercised and all rights of Holders
    thereunder shall terminate;
    
	 
	 	     
    (ii) require the mandatory surrender to the
    Company by all or selected Holders of some or all of the then
    outstanding Awards held by such Holders (irrespective of whether
    such Awards are then exercisable under the provisions of the
    Plan or the applicable Award Agreement evidencing such Award) as
    of a date, before or after such Corporate Change, specified by
    the Committee, in which event the Committee shall thereupon
    cancel such Award and the Company shall pay to each such Holder
    an amount of cash per share equal to the excess, if any, of the
    per share price offered to stockholders of the Company in
    connection with such Corporate Change over the exercise prices
    under such Award for such shares;
    
	 
	 	     
    (iii) with respect to all or selected
    Holders, have some or all of their then outstanding Awards
    (whether vested or unvested) assumed or have a new award of a
    similar nature substituted for some or all of their then
    outstanding Awards under the Plan (whether vested or unvested)
    by an entity which is a party to the transaction resulting in
    such Corporate Change and which is then employing such Holder or
    which is affiliated or associated with such Holder in the same
    or a substantially similar manner as the Company prior to the
    Corporate Change, or a parent or subsidiary of such entity,
    provided that (A) such assumption or substitution is on a basis
    where the excess of the aggregate fair market value of the Stock
    subject to the Award immediately after the assumption or
    substitution over the aggregate exercise price of such Stock is
    equal to the excess of the aggregate fair market value of all
    Stock subject to the Award immediately before such assumption or
    substitution over the aggregate exercise price of such Stock,
    and (B) the assumed rights under such existing Award or the
    substituted rights under such new Award as the case may be will
    have the same terms and conditions as the rights under the
    existing Award assumed or substituted for, as the case may be;
    

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    (iv) provide that the number and class or
    series of Stock covered by an Award (whether vested or unvested)
    theretofore granted shall be adjusted so that such Award when
    exercised shall thereafter cover the number and class or series
    of Stock or other securities or property (including, without
    limitation, cash) to which the Holder would have been entitled
    pursuant to the terms of the agreement or plan relating to such
    Corporate Change if, immediately prior to such Corporate Change,
    the Holder had been the holder of record of the number of shares
    of Stock then covered by such Award; or
    
	 
	 	     
    (v) make such adjustments to Awards then
    outstanding as the Committee deems appropriate to reflect such
    Corporate Change (provided, however, that the Committee may
    determine in its sole and absolute discretion that no such
    adjustment is necessary).
    

     
In effecting one or more of alternatives in
(iii), (iv) or (v) immediately above, and except as
otherwise may be provided in an Award Agreement, the Committee,
in its sole and absolute discretion and without the consent or
approval of any Holder, may accelerate the time at which some or
all Awards then outstanding may be exercised.

     
(d) In the event of changes in the
outstanding Stock by reason of recapitalizations,
reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring
after the date of the grant of any Award and not otherwise
provided for by this Paragraph 5, any outstanding Award and
any Award Agreements evidencing such Award shall be subject to
adjustment by the Committee in its sole and absolute discretion
as to the number and price of Stock or other consideration
subject to such Award. In the event of any such change in the
outstanding Stock, the aggregate number of shares of Stock
available under the Plan may be appropriately adjusted by the
Committee, whose determination shall be conclusive.

     
(e) After a merger of one or more
corporations into the Company or after a consolidation of the
Company and one or more corporations in which the Company shall
be the surviving corporation, each Holder shall be entitled to
have his Restricted Stock appropriately adjusted based on the
manner in which the shares of Stock were adjusted under the
terms of the agreement of merger or consolidation.

     
(f) The issuance by the Company of stock of
any class or series, or securities convertible into, or
exchangeable for, stock of any class or series, for cash or
property, or for labor or services either upon direct sale or
upon the exercise of rights or warrants to subscribe for them,
or upon conversion or exchange of stock or obligations of the
Company convertible into, or exchangeable for, stock or other
securities, shall not affect, and no adjustment by reason of
such issuance shall be made with respect to, the number, class
or series, or price of shares of Stock then subject to
outstanding Options or other Awards.

     
6. Stock Options.

     
(a) Grant of Options. Subject to the
provisions of Paragraph 14 and the availability under the
Plan of a sufficient number of shares of Stock that may be
issuable upon the exercise of outstanding Options, each person
who becomes a Non-Employee Director shall be granted, on the
date he or she becomes a director of the Company, an Option
under the Plan to purchase 1,000 shares of Stock at a
price per share (the “Option Price”) equal to
the Fair Market Value of the Stock on such date; provided,
however, that in lieu of such Option to
purchase 1,000 shares of Stock the Committee may grant
such Non-Employee Director on the date he or she becomes a
director of the Company 1,000 Stock Appreciation Rights at a
grant price per share equal to the Fair Market Value of the
Stock on such date. In addition, for so long as the Plan is in
effect and shares are available for the grant of Options
hereunder, each Non-Employee Director who is a director of the
Company on a Final Friday shall be granted an Option to
purchase 1,000 shares of the Stock at an Option Price
equal to the Fair Market Value of the Stock on such Final
Friday; provided, however, that in lieu of such Option to
purchase 1,000 shares of Stock the Committee may grant
such Non-Employee Director 1,000 Stock Appreciation Rights at a
grant price per share equal to the Fair Market Value of the
Stock on such Final Friday. For purposes of
Paragraphs 6(a), 6(d), 7(e) and 8, the fair market value of
a share of the Stock (“Fair Market Value”)
shall be the closing price of a share of Stock on the date in
question as reported on the New York Stock Exchange (or
other applicable national securities exchange), provided that if
no closing price for the Stock was so reported on that date,
then the closing price as of the first preceding date for which
such prices are reported.

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(b) Duration of Options. Each Option
granted under the Plan shall be exercisable for a term of ten
years from the date of grant, subject to earlier termination as
provided in Paragraph 6(f).

     
(c) Amount Exercisable. Each Option
may be exercised in whole or in part at any time commencing one
year after the grant thereof.

     
(d) Exercise of Options. An optionee
may exercise such optionee’s Option by the delivery of
written notice in the manner designated by the Committee stating
(i) that such optionee wishes to exercise such Option on
the date such notice is so delivered, (ii) the number of
shares of Stock with respect to which such Option is to be
exercised and (iii) the address to which the certificate
representing such shares of Stock should be mailed. In order to
be effective, such written notice shall be accompanied by
(i) payment of the Option Price of such shares of Stock and
(ii) payment of an amount of money necessary to satisfy any
withholding tax liability that may result from the exercise of
such Option. Each such payment shall be made by cashier’s
check drawn on a national banking association and payable to the
order of the Company in United States dollars.

     
If, at the time of receipt by the Company of such
written notice, (i) the Company has unrestricted surplus in
an amount not less than the Option Price of such shares of
Stock, (ii) all accrued cumulative preferential dividends
and other current preferential dividends on all outstanding
shares of preferred stock of the Company have been fully paid,
(iii) the acquisition by the Company of its own shares of
Stock for the purpose of enabling such optionee to exercise such
Option is otherwise permitted by applicable law and without any
vote or consent of any stockholder of the Company, and
(iv) there shall have been adopted, and there shall be in
full force and effect, a resolution of the Board of Directors of
the Company authorizing the acquisition by the Company of its
own shares of Stock for such purpose, then such optionee may
deliver to the Company, in payment of the Option Price of the
shares of Stock with respect to which such Option is exercised,
(x) certificates registered in the name of such optionee
that represent a number of shares of Stock legally and
beneficially owned by such optionee (free of all liens, claims
and encumbrances of every kind) and having a Fair Market Value
on the date of receipt by the Company of such written notice
that is not greater than the Option Price of the shares of Stock
with respect to which such Option is to be exercised, such
certificates to be accompanied by stock powers duly endorsed in
blank by the record holder of the shares of Stock represented by
such certificates, with the signature of such record holder
guaranteed by a national banking association (or, in lieu of
such certificates, other arrangements for the transfer of such
shares to the Company which are satisfactory to the Company) and
(y) if the Option Price of the shares of Stock with respect
to which such Options are to be exercised exceeds such Fair
Market Value, a cashier’s check drawn on a national banking
association and payable to the order of the Company in an
amount, in United States dollars, equal to the amount of such
excess plus the amount of money necessary to satisfy any
withholding tax liability that may result from the exercise of
such Option. Notwithstanding the provisions of the immediately
preceding sentence, the Committee, in its sole discretion, may
refuse to accept shares of Stock in payment of the Option Price
of the shares of Stock with respect to which such Option is to
be exercised and, in that event, any certificates representing
shares of Stock that were received by the Company with such
written notice shall be returned to such optionee, together with
notice by the Company to such optionee of the refusal of the
Committee to accept such shares of Stock. The Company, at its
option, upon the request of the optionee, may retain shares of
Stock which would otherwise be issued upon exercise of an Option
to satisfy any withholding tax liability that may result from
the exercise of such Option, which shares shall be valued for
such purpose at their then Fair Market Value. If, at the
expiration of seven business days after the delivery to such
optionee of such written notice from the Company, such optionee
shall not have delivered to the Company a cashier’s check
drawn on a national banking association and payable to the order
of the Company in an amount, in United States dollars, equal to
the Option Price of the shares of Stock with respect to which
such Option is to be exercised, such written notice from the
optionee to the Company shall be ineffective to exercise such
Option.

     
As promptly as practicable after the receipt by
the Company of (i) such written notice from the optionee,
(ii) payment, in the form required by the foregoing
provisions of this Paragraph 6(d), of the Option Price of
the shares of Stock with respect to which such Option is to be
exercised, and (iii) payment, in the form required by the
foregoing provisions of this Paragraph 6(d), of an amount
necessary to satisfy any withholding

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tax liability that may result from the exercise
of such Option, a certificate representing the number of shares
of Stock with respect to which such Option has been so
exercised, reduced, to the extent applicable, by the number of
shares retained by the Company to pay any required withholding
tax, such certificate to be registered in the name of such
optionee, shall be delivered to such optionee, provided that
such delivery shall be considered to have been made when such
certificate shall have been mailed, postage prepaid, to such
optionee at the address specified for such purpose in such
written notice from the optionee to the Company.

     
(e) Transferability of Options.
Options shall not be transferable by the optionee otherwise than
by will or under the laws of descent and distribution, and shall
be exercisable, during his lifetime, only by him.

     
(f) Termination. Except as may be
otherwise expressly provided herein, each Option, to the extent
it shall not previously have been exercised, shall terminate on
the earlier of the following:

		
	 	     
    (i) On the last day of a one month period
    commencing on the date on which the optionee ceases to be a
    member of the Company’s Board of Directors, for any reason
    other than the death, disability or retirement of the optionee,
    during which period the optionee shall be entitled to exercise
    all Options held by the optionee on the date on which the
    optionee ceased to be a member of the Company’s Board of
    Directors which could have been exercised on such date;
    
	 
	 	     
    (ii) On the last day within the one year
    period commencing on the date on which the optionee ceases to be
    a member of the Company’s Board of Directors because of
    permanent disability, during which period the optionee shall be
    entitled to exercise all Options held by the optionee on the
    date on which the optionee ceased to be a member of the
    Company’s Board of Directors because of such disability
    which could have been exercised on such date;
    
	 
	 	     
    (iii) On the last day within the one year
    period commencing on the date of the optionee’s death while
    serving as a member of the Company’s Board of Directors,
    during which period the executor or administrator of the
    optionee’s estate or the person or persons to whom the
    optionee’s Option shall have been transferred by will or
    the laws of descent or distribution, shall be entitled to
    exercise all Options in respect of the number of shares that the
    optionee would have been entitled to purchase had the optionee
    exercised such Options on the date of his death;
    
	 
	 	     
    (iv) On the last day within the one year
    period commencing on the date the optionee retires from the
    Board of Directors of the Company in accordance with the
    Company’s retirement policy, during which period the
    optionee, or the executor or administrator of the
    optionee’s estate or the person or persons to whom such
    Option shall have been transferred by will or the laws of
    descent or distribution in the event of the optionee’s
    death within such one year period, as the case may be, shall be
    entitled to exercise all Options in respect of the number of
    shares that the optionee would have been entitled to purchase
    had the optionee exercised such Options on the date of such
    retirement; or
    
	 
	 	     
    (v) Ten years after the date of grant of
    such Option.
    

     
(g) No Rights as Stockholder. No
optionee shall have rights as a stockholder with respect to
shares covered by his Option until the date of issuance of a
stock certificate for such shares; and, except as otherwise
provided in Paragraph 5, no adjustment for dividends, or
otherwise, shall be made if the record date therefor is prior to
the date of issuance of such certificate.

     
7. Restricted Stock Awards.

     
(a) Awards. Subject to the provisions
of Paragraph 14 and the availability under the Plan of a
sufficient number of shares of Stock that may be issuable as
Restricted Stock, for so long as the Plan is in effect and
shares are available for the grant of Restricted Stock Awards
hereunder, each person who becomes a Non-Employee Director shall
be granted, on the date he or she becomes a director of the
Company, a Restricted Stock Award for 1,000 shares of the
Stock. In addition, for so long as the Plan is in effect and
shares are available for the grant of Restricted Stock Awards
hereunder, each Non-Employee Director who is a director of the
Company on a Final Friday shall be granted effective as of that
date a Restricted Stock Award for 1,000 shares of the
Stock. The respective terms and conditions of each Restricted
Stock Award shall be determined by the terms of the Plan or the
Committee, in its sole discretion, to the extent such terms or

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conditions are not set out in the Plan. No term
or condition of a Restricted Stock Award shall be inconsistent
with the terms of the Plan.

     
(b) Transferability and Rights with
Respect to Restricted Stock.

		
	 	     
    (i) Except as provided herein, Restricted
    Stock may not be sold, assigned, transferred, pledged, or
    otherwise encumbered during a Restricted Period. Any attempted
    sale, assignment, transfer, pledge or encumbrance of Restricted
    Stock in violation of the Plan shall be void and the Company
    shall not be bound thereby.
    
	 
	 	     
    (ii) During the Restricted Period,
    certificates representing the Restricted Stock shall be
    registered in the Holder’s name and bear a restrictive
    legend to the effect that ownership of such Restricted Stock,
    and the enjoyment of all rights appurtenant thereto, are subject
    to the restrictions, terms, and conditions provided in the Plan
    and the applicable Award Agreement for the Restricted Stock
    Award. Such certificates shall be deposited by the Holder with
    the Secretary of the Company or such other officer of the
    Company as may be designated by the Committee, together with all
    stock powers or other instruments of assignment, each endorsed
    in blank, which will permit transfer to the Company of all or
    any portion of the Restricted Stock which shall be forfeited in
    accordance with the Plan and the applicable Award Agreement.
    During the Restricted Period the Restricted Stock shall not
    constitute issued and outstanding shares of Stock for any
    corporate purposes.
    
	 
	 	     
    (iii) Subject to the terms and conditions of
    the Plan, each recipient of a Restricted Stock Award shall have
    all the rights of a stockholder with respect to the shares of
    Restricted Stock included in the Restricted Stock Award during
    the Restricted Period established for the Restricted Stock
    Award. Dividends paid with respect to Restricted Stock in cash
    or property other than shares of Stock or rights to acquire
    shares of Stock shall be paid to the recipient of the Restricted
    Stock Award currently. Dividends paid in shares of Stock or
    rights to acquire shares of Stock shall be added to and become a
    part of the Restricted Stock..
    

     
(c) Vesting of Restricted Stock. Each
Restricted Stock Award awarded under the Plan shall vest on the
last day of the Restricted Period, provided that the Holder
continues to be a member of the Board of Directors of the
Company on such date. The Restricted Period for a Restricted
Stock Award may not end any earlier than one year after the date
on which that Restricted Stock Award was awarded under the Plan,
provided, however, that the Committee, in its sole discretion,
may establish a later date for the end of the Restricted Period
for a Restricted Stock Award under the Plan. If a Non-Employee
Director ceases to be a member of the Board of Directors of the
Company for any reason before the end of the Restricted Period
applicable to a Restricted Stock Award, including due to the
death or disability of the Non-Employee Director, the forfeiture
restrictions then applicable to the Restricted Stock awarded
under the Restricted Stock Award shall not lapse and all the
Restricted Stock awarded under the Restricted Stock Award shall
be forfeited to the Company.

     
(d) Consequence of Vesting. When
shares of Restricted Stock become vested, the Restricted Period
shall be terminated as to those shares, and, upon satisfaction
of the Company’s required tax withholding obligation, if
any, in the manner specified in Paragraph 7(e), the Company
shall deliver to the Holder of the Restricted Stock Award (or
his estate, if applicable) a Stock certificate representing
those shares.

     
(e) Withholding of Taxes. When shares
of Restricted Stock become vested, the Holder of the Restricted
Stock Award shall pay the Company an amount of money necessary
to satisfy the Company’s tax withholding obligations, if
any, under the Code and applicable state and local laws arising
from the vesting of such Restricted Stock.

     
8. Stock Appreciation Rights.

     
(a) Authority to Grant Stock Appreciation
Rights Awards. Subject to the terms and provisions of the
Plan, the Committee may grant Stock Appreciation Rights under
the Plan to Non-Employee Directors in lieu of Options as set
forth in Paragraph 6(a). Subject to the terms and
conditions of the Plan, the Committee shall have complete
discretion in determining the number of SARs granted to each
Non-Employee Director and, consistent with the provisions of the
Plan, in determining the terms and conditions pertaining to such

7

 

SARs. Subject to the terms and conditions of the
Plan, a SAR granted under the Plan shall confer on the recipient
a right to receive, upon exercise thereof, a cash amount equal
to the excess of (a) the Fair Market Value of one share of
the Stock on the date of exercise over (b) the grant price
of the SAR, which shall be 100 percent of the Fair Market
Value of one share of the Stock on the date of grant of the SAR.

     
(b) Stock Appreciation Right Award
Agreement. Each Award of SARs granted under the Plan shall
be evidenced by an Award Agreement that shall specify (i) the
grant price of the SAR, (ii) the term of the SAR,
(iii) the vesting and termination provisions and
(iv) such other provisions as the Committee shall determine
that are not inconsistent with the terms and provisions of the
Plan. The Award Agreement shall set forth terms and conditions
for vesting and termination similar to those set forth in
Paragraph 6 with respect to Options. The Committee may
impose such additional conditions or restrictions on the
exercise of any SAR as it may deem appropriate.

     
(c) Term of Stock Appreciation
Rights. The term of a SAR granted under the Plan shall be
the same as the term for an Option set forth in
Paragraph 6(f).

     
(d) Payment of SAR Amount. Upon the
exercise of a SAR, a Non-Employee Director shall be entitled to
receive payment from the Company in an amount determined by
multiplying:

		
	 	     
    (i) The excess of the Fair Market Value of a
    share of the Stock on the date of exercise over the grant price
    of the SAR by
    
	 
	 	     
    (ii) The number of shares of Stock with
    respect to which the SAR is exercised.
    

At the discretion of the Committee, the payment
upon SAR exercise may be in cash, in Stock of equivalent value,
in some combination thereof or in any other manner approved by
the Committee in its sole discretion. The Committee’s
determination regarding the form of SAR payout shall be set
forth in the Award Agreement pertaining to the grant of the SAR.

     
(e) Nontransferability of SARs.
Except as otherwise provided in a Holder’s Award Agreement,
no SAR granted under the Plan may be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution. Further, except
as otherwise provided in a Holder’s Award Agreement, all
SARs granted to a Non-Employee Director under the Plan shall be
exercisable during his or her lifetime only by the Holder, and
after that time, by the Holder’s heirs or estate. Any
attempted assignment of a SAR in violation of this
Paragraph 8 shall be null and void.

     
(f) No Rights as Stockholder. A
Holder of a SAR award, as such, shall have no rights as a
stockholder.

     
(g) Restrictions on Stock Received.
The Committee may impose such conditions and/or restrictions on
any shares of Stock received upon exercise of a SAR granted
pursuant to the Plan as it may deem advisable or desirable.
These restrictions may include, but shall not be limited to, a
requirement that the Holder hold the shares of Stock received
upon exercise of a SAR for a specified period of time.

     
9. Requirements of Law. The Company
shall not be required to sell, issue or deliver any shares of
Stock under any Award if the sale, issuance or delivery of such
shares shall constitute or result in a violation by the Holder
of the Award or the Company of any provisions of any law,
statute or regulation of any governmental authority. Each Award
granted under the Plan shall be subject to the requirements
that, if at any time the Board of Directors of the Company or
the Committee shall determine that the listing, registration or
qualification of the shares subject thereto upon any securities
exchange or under any state or federal law of the United States
or of any other country or governmental subdivision thereof, or
the consent or approval of any governmental regulatory body, or
investment or other representations, are necessary or desirable
in connection with the issue or purchase of shares subject
thereto, that Award shall not be exercised in whole or in part
unless such listing, registration, qualification, consent,
approval or representation shall have been effected or obtained
free of any conditions not acceptable to the Board of Directors
of the Company. If required at any time by the Board of
Directors of the Company or the Committee, an Award may not be
exercised until the Holder has delivered an investment letter to
the Company. In addition, specifically in connection with the
Securities Act of 1933 (as now in effect or hereafter amended)
or any other applicable statute or regulation relating to the
registration of securities, upon exercise of any Award, the
Company shall not be required to

8

 

issue any shares of Stock unless the Committee
has received evidence satisfactory to it to the effect that the
Holder of such Award will not transfer the shares of Stock
except in accordance with applicable law, including receipt of
an opinion of counsel satisfactory to the Company to the effect
that any such proposed transfer complies with applicable law.
Any determination on this matter by the Committee shall be
final, binding and conclusive. The Company may, but shall in no
event be obligated to, register any shares of Stock covered by
the Plan pursuant to applicable securities laws of any country
or any political subdivision. In the event the shares of Stock
issuable on exercise of an Option or pursuant to any other Award
are not registered, the Company may imprint on the certificate
evidencing the shares of Stock any legend that counsel for the
Company considers necessary or advisable to comply with
applicable law, or, should the shares of Stock be represented by
book or electronic entry rather than a certificate, the Company
may take such steps to restrict transfer of the shares of Stock
as counsel for the Company considers necessary or advisable to
comply with applicable law. The Company shall not be obligated
to take any other affirmative action in order to cause or enable
the exercise of an Option or any other Award, or the issuance of
shares of Stock pursuant thereto, to comply with any law or
regulation of any governmental authority.

     
10. Amendment or Termination of Plan.
The Board of Directors of the Company may modify, revise or
terminate the Plan at any time and from time to time; provided,
however, that without the further approval of the holders of at
least a majority of the outstanding shares of voting stock, or
if the provisions of the corporate charter, by-laws or
applicable state law prescribes a greater degree of stockholder
approval for this action, without the degree of stockholder
approval thus required, the Board of Directors of the Company
may not (a) change the aggregate number of shares which may
be issued under Awards pursuant to the provisions of the Plan;
(b) reduce the Option Price permitted for the Options or
the grant price permitted for SARs; or (c) extend the term
during which an Option or SAR may be exercised or the
termination date of the Plan unless, in each such case, the
Board of Directors of the Company shall have obtained an opinion
of legal counsel to the effect that stockholder approval of the
amendment is not required (i) by law, (ii) by the
rules and regulations of, or any agreement with, the
New York Stock Exchange (or other applicable national
securities exchange) or (iii) in order to make available to
the Holder with respect to any Award granted under the Plan, the
benefits of Rule 16b-3 of the Rules and Regulations under
1934 Act, or any similar or successor rule. In addition the
Plan may not be amended more than once every six months with
respect to the plan provisions referred to in
Rule 16b-3(c)(2)(ii)(A) of the Rules and Regulations under
the 1934 Act other than to comport with changes in the
Code, the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder.

     
11. Written Award Agreement. Each
Award granted hereunder shall be embodied in a written Award
Agreement, which shall be subject to the terms and conditions
prescribed herein, and shall be signed by the Holder and by the
appropriate officer of the Company for and in the name and on
behalf of the Company. Such an Award Agreement shall contain
such other provisions as the Committee in its discretion shall
deem advisable that are not inconsistent with the terms of the
Plan. Any provision of an Award Agreement that is inconsistent
with the terms of the Plan shall be disregarded and not be given
any effect.

     
12. Indemnification of the Committee.
The Company shall indemnify each past, present and future member
of the Committee against, and each member of the Committee shall
be entitled without further action on his or her part to
indemnity from the Company for, all expenses (including
attorney’s fees, the amount of judgments and the amount of
approved settlements made with a view to the curtailment of
costs of litigation, other than amounts paid to the Company
itself) reasonably incurred by such member in connection with or
arising out of any action, suit or proceeding in which such
member may be involved by reason of such member being or having
been a member of the Committee, whether or not he or she
continues to be a member of the Committee at the time of
incurring the expenses, including, without limitation, matters
as to which such member shall be finally adjudged in any action,
suit or proceeding to have been negligent in the performance of
such member’s duty as a member of the Committee. However,
this indemnity shall not include any expenses incurred by any
member of the Committee in respect of matters as to which such
member shall be finally adjudged in any action, suit or
proceeding to have been guilty of gross negligence or willful
misconduct in the performance of his duty as a member of the
Committee. In addition, no right of indemnification under the
Plan shall be available to or enforceable by any member of the
Committee unless,

9

 

within 60 days after institution of any
action, suit or proceeding, such member shall have offered the
Company, in writing, the opportunity to handle and defend same
at its own expense. This right of indemnification shall inure to
the benefit of the heirs, executors or administrators of each
member of the Committee and shall be in addition to all other
rights to which a member of the Committee may be entitled as a
matter of law, contract or otherwise. Nothing in this
Paragraph 12 shall be construed to limit or otherwise
affect any right to indemnification, or payment of expense, or
any provisions limiting the liability of any officer or director
of the Company or any member of the Committee, provided by law,
the Articles of Incorporation of the Company or otherwise.

     
13. Section 83(b) Elections. No
Holder shall exercise the election permitted under
section 83(b) of the Code with respect to any Award without
the written approval of the Chief Financial Officer of the
Company. Any Holder who makes an election under
section 83(b) of the Code with respect to any Award without
the written approval of the Chief Financial Officer of the
Company may, in the discretion of the Committee, forfeit any or
all Awards granted to him or her under the Plan.

     
14. Effective Date of Plan; Cessation of
Awards. The Plan shall become effective and shall be deemed
to have been adopted on February 24, 1992. No Award shall
be granted pursuant to the Plan after
February 23, 2012.

10

 

STOCK OPTION AGREEMENT

(Non-Statutory Stock Option)

     This STOCK OPTION AGREEMENT (this “Agreement”) is made as of ______(the
“Date of Grant”), between THE MEN’S WEARHOUSE, INC., a Texas corporation (the “Company”), and
______(“Director”).

WITNESSETH

     WHEREAS, the Company considers that its interests will be served by granting its non-employee
directors option to purchase shares of common stock of the Company as an inducement for continued
and effective performance of services to the Company; and

     WHEREAS, the Board of Directors of the Company has adopted, and the shareholders of the
Company have approved, The Men’s Wearhouse, Inc. 1992 Non-Employee Director Stock Option Plan (as
amended, the “Plan”);

     NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereby agree as follows:

	 	1.  	Subject to the terms and conditions set forth in this Agreement and in the
Plan, which is hereby incorporated herein by reference, the Company hereby grants to
Director a Non-Statutory Stock Option (the “Option”) to purchase 1,000 shares of the
common stock, $.01 par value, of the Company at a price of $______per share (The
“Option Price”).
	 
	 	2.  	The Option may be exercised in whole or in part at any time subsequent to
___, but in no event shall the Option be exercisable after the tenth
anniversary of the Date of the Grant.
	 
	 	3.  	Director may exercise the Option by delivering to the Company a written notice
stating (i) that such optionee wishes to exercise such Option on the date such notice
is so delivered, (ii) the number of shares of stock with respect to which the option is
to be exercised and (iii) the address to which the certificate representing such shares
of stock should be mailed. In order to be effective, such written notice shall be
accompanied by (i) payment of the Option Price of such shares of stock and (ii) payment
of an amount of money necessary to satisfy any withholding tax liability that may
result from the exercise of such Option. Each such payment shall be made by cashier’s
check drawn on a national banking association and payable to the order of the Company
in United States dollars.
	 
	 	4.  	If, prior to the exercise of the Option in whole or in part, the Company
subdivides or combines its stock into a greater or small number of shares or
distributes a stock dividend or reclassifies its stock, there shall be deliverable to
Director, on the exercise of the Option, in lieu of each share of stock as to which the
Option is exercisable, but for the same aggregate Option Price, such number of
additional or

 

 

	 	   	new shares as are the equivalent substitute for the present shares covered by the
Option, all as set forth in Paragraph 16 of the Plan.
	 
	 	5.  	The Option granted Director under this Agreement shall not be transferable or
assignable by Director other than by will or the laws of descent and distribution, and
shall be exercisable during Director’s lifetime only by him.
	 
	 	6.  	This Agreement may not be modified or terminated except by an agreement in
writing signed by the party against whom enforcement of any such modification or
termination is sought.
	 
	 	7.  	Director shall not have any rights as a shareholder with respect to any shares
covered by the Option until the date of issuance of the stock certificate or
certificates to him for such shares following his exercise of the Option, in whole or
in part, pursuant to its terms and conditions and payment for the shares. No
adjustment shall be made for dividends or other rights for which the record date is
prior to the date such certificate or certificates are issued.
	 
	 	8.  	As an “affiliate” of the Company (as such term is defined under the Act),
Director consents to the placing on the certificate for any shares acquired upon
exercise of the Option of an appropriate legend restricting resale or other transfer of
such shares, except in accordance with the Act and all applicable rules thereunder.
	 
	 	9.  	In the event of any difference of opinion between Director and the Company
concerning the meaning or effect of the Plan, such difference shall be resolved by the
Committee referred to in Paragraph 2 of the Plan.
	 
	 	10.  	The validity, construction and performance of this Agreement shall be governed
by the laws of the State of Texas. The invalidity of any provision of this Agreement
shall not affect the validity of any other provision.
	 
	 	11.  	All offers, notices, demands, requests, acceptances or other communications
hereunder shall be in writing and shall be deemed to have been duly made or given if
mailed by registered or certified mail, return receipt requested, to the address
reflected below or to such other address as either party may hereafter designate in
writing to the other:

If to the Company:

The Men’s Wearhouse, Inc.

40650 Encyclopedia Circle

Firemont, California 94538

Attention: Charles Bresler, Ph.D.

If to Director:

- 2 -

 

	 	12.  	This Agreement shall, except as herein stated to the contrary, inure to the
benefit of and be binding upon the legal representatives, successors and assigns of the
parties hereto.

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year
first above written.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	THE MEN’S WEARHOUSE, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	 	 	DIRECTOR
	 
	 	 	 	 
	 

	 	 	 	

- 3 -

 

RESTRICTED STOCK AWARD AGREEMENT

The Men’s Wearhouse, Inc.

1992 Non-Employee Director Stock Option Plan

     This Restricted Stock Award Agreement (the “Agreement”) is made by and between The
Men’s Wearhouse, Inc., a Texas corporation, (the “Company”) and ___
(the “Director”) effective as of the
___day of ___, 20___( the
“Grant Date”),
pursuant to The Men’s Wearhouse, Inc. 1992 Non-Employee Director Stock Option Plan, as amended and
restated (the “Plan”), which is incorporated by reference herein in its entirety.

Whereas, the Company desires to grant to the Director the shares of equity securities
specified herein (the “Shares”), subject to the terms and conditions of this Agreement; and

Whereas, the Director desires to have the opportunity to hold Shares subject to the terms
and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

	1.  	Definitions. For purposes of this Agreement, the following terms shall have the meanings
indicated:

	 	(a)  	“Forfeiture Restrictions” shall mean any prohibitions and restrictions set forth herein with
respect to the sale or other disposition of Shares issued to the Director hereunder and the
obligation to forfeit and surrender such shares to the Company.
	 
	 	(b)  	“Restricted Shares” shall mean the Shares that are subject to the Forfeiture Restrictions under
this Agreement.

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to
such terms in the Plan.

	2.  	Grant of Restricted Shares. Effective as of the Grant Date, the Company shall cause to be
issued in the Director’s name the following Shares as Restricted Shares: 1,000 shares of the
Company’s common stock, $.01 par value. The Company shall cause certificates evidencing the
Restricted Shares, and any shares of Stock or rights to acquire shares of Stock distributed by
the Company in respect of Restricted Shares during any Restricted Period (the “Retained
Distributions”), to be issued in the Director’s name. During the Restricted Period such
certificates shall bear a restrictive legend to the effect that ownership of such Restricted
Shares (and any Retained Distributions), and the enjoyment of all rights appurtenant thereto,
are subject to the restrictions, terms, and conditions provided in the Plan and this
Agreement. The Director shall have the right to vote the Restricted Shares awarded to the
Director and to receive and retain all regular dividends paid in cash or property (other than
Retained Distributions), and to exercise all other rights, powers and privileges of a holder
of Shares, with respect to such Restricted

 

	   	Shares, with the exception that (a) the Director
shall not be entitled to delivery of the stock certificate or certificates representing such
Restricted Shares until the Forfeiture Restrictions applicable thereto shall have expired, (b)
the Company shall retain custody of all Retained Distributions made or declared with respect
to the Restricted Shares (and such Retained Distributions shall be subject to the same
restrictions, terms and conditions as are applicable to the Restricted Shares) until such
time, if ever, as the Restricted Shares with respect to which such Retained Distributions
shall have been made, paid, or declared shall have become vested, and such Retained
Distributions shall not bear interest or be segregated in separate accounts and (c) the
Director may not sell, assign, transfer, pledge, exchange, encumber, or dispose of the
Restricted Shares or any Retained Distributions during the Restricted Period. Upon issuance
the certificates shall be delivered to such depository as may be designated by the Committee
as a depository for safekeeping until the forfeiture of such Restricted Shares occurs or the
Forfeiture Restrictions lapse, together with stock powers or other instruments of assignment,
each endorsed in blank, which will permit transfer to the Company of all or any portion of the
Restricted Shares and any securities constituting Retained Distributions which shall be
forfeited in accordance with the Plan and this Agreement. In accepting the award of Shares
set forth in this Agreement the Director accepts and agrees to be bound by all the terms and
conditions of the Plan and this Agreement.

	3.  	Transfer Restrictions. The Shares granted hereby may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or disposed of, to the extent
then subject to the Forfeiture Restrictions. Any such attempted sale, assignment, pledge,
exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement
shall be void and the Company shall not be bound thereby. Further, the Shares granted hereby
that are no longer subject to Forfeiture Restrictions may not be sold or otherwise disposed of
in any manner which would constitute a violation of any applicable federal or state securities
laws. The Director also agrees (i) that the Company may refuse to cause the transfer of the
Shares to be registered on the applicable stock transfer records if such proposed transfer
would, in the opinion of counsel satisfactory to the Company, constitute a violation of any
applicable securities law and (ii) that the Company may give related instructions to the
transfer agent, if any, to stop registration of the transfer of the Shares.
	 
	4.  	Vesting. The Shares that are granted hereby shall be subject to Forfeiture Restrictions.
The Forfeiture Restrictions shall lapse as to the Shares that are granted hereby on
___, 20___, provided that the Director continues to be a member of the Board
of Directors of the Company on such date. If the Director ceases to be a member of the Board
of Directors of the Company for any reason before ___, 20___, including due
to the death or disability of the Director, the Forfeiture Restrictions then applicable to the
Restricted Shares shall not lapse and all the Restricted Shares shall be forfeited to the
Company. Upon the lapse of the Forfeiture Restrictions with respect to Shares granted hereby
the Company shall cause to be delivered to the Director a stock certificate representing such
Shares, and such Shares shall be transferable by the Director (except to the extent that any
proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a
violation of applicable securities law). Notwithstanding any other provision of this
Agreement, in no

- 2 -

 

	   	event will the Forfeiture Restrictions expire prior to the satisfaction by
the Director of any obligation to serve as a member of the Board of Directors of the Company.

	5.  	Capital Adjustments and Reorganizations. The existence of the Restricted Shares shall not
affect in any way the right or power of the Company or any company the stock of which is
awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization,
reorganization or other change in its capital structure or its business, engage in any merger
or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease,
exchange or otherwise dispose of all or any part of its assets or business, or engage in any
other corporate act or proceeding.
	 
	6.  	Tax Withholding. To the extent that the receipt of the Restricted Shares or the lapse of any
Forfeiture Restrictions results in income to the Director for federal, state or local income
or employment tax purposes with respect to which the Company has a withholding obligation, the
Director shall deliver to the Company at the time of such receipt or lapse, as the case may
be, such amount of money as the Company may require to meet its obligation under applicable
tax laws or regulations, and, if the Director fails to do so, the Company is authorized to
withhold from the Shares granted hereby or from any cash or stock remuneration then or
thereafter payable to the Director in any capacity any tax required to be withheld by reason
of such resulting income.
	 
	7.  	Section 83(b) Election. The Director shall not exercise the election permitted under section
83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Restricted Shares
without the written approval of the Chief Financial Officer of the Company. If the Chief
Financial Officer of the Company permits the election, the Director shall timely pay the
Company the amount necessary to satisfy the Company’s attendant tax withholding obligations,
if any.
	 
	8.  	No Fractional Shares. All provisions of this Agreement concern whole Shares. If the
application of any provision hereunder would yield a fractional share, such fractional share
shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the
next whole share if it is 0.5 or more.
	 
	9.  	Not an Employment Agreement. This Agreement is not an employment agreement, and no provision
of this Agreement shall be construed or interpreted to create an employment relationship
between the Director and the Company or guarantee the right to remain a member of the Board of
Directors of the Company for any specified term.
	 
	10.  	Legend. The Director consents to the placing on the certificate for the Shares of an
appropriate legend restricting resale or other transfer of the Shares except in accordance
with all applicable securities laws and rules thereunder.
	 
	11.  	Notices. Any notice, instruction, authorization, request or demand required hereunder shall
be in writing, and shall be delivered either by personal delivery, by telegram, telex,
telecopy or similar facsimile means, by certified or registered mail, return receipt
requested, or by courier or delivery service, addressed to the Company at the then current
address of the Company’s Principal Corporate Office, and to the Director at the

- 3 -

 

	   	Director’s residential address indicated beneath the Director’s signature on the execution page of this
Agreement, or at such other address and number as a party shall have previously designated by
written notice given to the other party in the manner hereinabove set forth. Notices shall be
deemed given when received, if sent by facsimile means (confirmation of such receipt by
confirmed facsimile transmission being deemed receipt of communications sent by facsimile
means); and when delivered (or upon the date of attempted delivery where delivery is refused),
if hand-delivered, sent by express courier or delivery service, or sent by certified or
registered mail, return receipt requested.

	12.  	Amendment and Waiver. This Agreement may be amended, modified or superseded only by written
instrument executed by the Company and the Director. Only a written instrument executed and
delivered by the party waiving compliance hereof shall make any waiver of the terms or
conditions. Any waiver granted by the Company shall be effective only if executed and
delivered by a duly authorized executive officer of the Company. The failure of any party at
any time or times to require performance of any provisions hereof shall in no manner effect
the right to enforce the same. No waiver by any party of any term or condition, or the breach
of any term or condition contained in this Agreement, in one or more instances, shall be
construed as a continuing waiver of any such condition or breach, a waiver of any other
condition, or the breach of any other term or condition.
	 
	13.  	Governing Law and Severability. This Agreement shall be governed by the laws of the State of
Texas without regard to its conflicts of law provisions. The invalidity of any provision of
this Agreement shall not affect any other provision of this Agreement, which shall remain in
full force and effect.
	 
	14.  	Successors and Assigns. Subject to the limitations which this Agreement imposes upon the
transferability of the Shares granted hereby, this Agreement shall bind, be enforceable by and
inure to the benefit of the Company and its successors and assigns, and to the Director, the
Director’s permitted assigns, executors, administrators, agents, legal and personal
representatives.
	 
	15.  	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original for all purposes but all of which taken together shall constitute but one
and the same instrument.

- 4 -

 

     In Witness Whereof, the Company has caused this Agreement to be duly executed by an
officer thereunto duly authorized, and the Director has executed this Agreement, all effective as
of the date first above written.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	THE MEN’S WEARHOUSE, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	DIRECTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	Address:exv10w2

 

Exhibit 10.2

THE MEN’S WEARHOUSE, INC.

1996 LONG-TERM INCENTIVE PLAN

(As Amended and Restated

Effective March 29, 2004)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
			Section
			

	
    ARTICLE I — ESTABLISHMENT, PURPOSE
    AND DURATION
    
	
    
    Establishment
    

    	 	 	1.1	 
	
    
    Purpose of the Plan
    

    	 	 	1.2	 
	
    
    Duration of Authority to Make Grants Under the
    Plan
    

    	 	 	1.3	 
	
    ARTICLE II — DEFINITIONS
    
	
    
    Affiliate
    

    	 	 	2.1	 
	
    
    Award
    

    	 	 	2.2	 
	
    
    Award Agreement
    

    	 	 	2.3	 
	
    
    Board
    

    	 	 	2.4	 
	
    
    Cash-Based Award
    

    	 	 	2.5	 
	
    
    Code
    

    	 	 	2.6	 
	
    
    Committee
    

    	 	 	2.7	 
	
    
    Company
    

    	 	 	2.8	 
	
    
    Corporate Change
    

    	 	 	2.9	 
	
    
    Covered Employee
    

    	 	 	2.10	 
	
    
    Deferred Stock Unit
    

    	 	 	2.11	 
	
    
    Deferred Stock Unit Award
    

    	 	 	2.12	 
	
    
    Disability
    

    	 	 	2.13	 
	
    
    Effective Date
    

    	 	 	2.14	 
	
    
    Employee
    

    	 	 	2.15	 
	
    
    Exchange Act
    

    	 	 	2.16	 
	
    
    Fair Market Value
    

    	 	 	2.17	 
	
    
    Fiscal Year
    

    	 	 	2.18	 
	
    
    Freestanding SAR
    

    	 	 	2.19	 
	
    
    Holder
    

    	 	 	2.20	 
	
    
    Incentive Stock Option or ISO
    

    	 	 	2.21	 
	
    
    Mature Shares
    

    	 	 	2.22	 
	
    
    Nonqualified Stock Option or NQSO
    

    	 	 	2.23	 
	
    
    Option
    

    	 	 	2.24	 
	
    
    Option Price
    

    	 	 	2.25	 
	
    
    Optionee
    

    	 	 	2.26	 
	
    
    Option Agreement
    

    	 	 	2.27	 
	
    
    Other Stock-Based Award
    

    	 	 	2.28	 
	
    
    Parent Corporation
    

    	 	 	2.29	 
	
    
    Performance-Based Award
    

    	 	 	2.30	 
	
    
    Performance-Based Compensation
    

    	 	 	2.31	 
	
    
    Performance Goals
    

    	 	 	2.32	 
	
    
    Performance Period
    

    	 	 	2.33	 
	
    
    Performance Stock Award
    

    	 	 	2.34	 
	
    
    Performance Unit Award
    

    	 	 	2.35	 
	
    
    Period of Restriction
    

    	 	 	2.36	 
	
    
    Plan
    

    	 	 	2.37	 
	
    
    Restricted Stock
    

    	 	 	2.38	 
	
    
    Restricted Stock Award
    

    	 	 	2.39	 
	
    
    Retirement
    

    	 	 	2.40	 
	
    
    Stock Appreciation Right or SAR
    

    	 	 	2.41	 
	
    
    Stock
    

    	 	 	2.42	 
	
    
    Subsidiary Corporation
    

    	 	 	2.43	 
	
    
    Tandem SAR
    

    	 	 	2.44	 

i

 

	 	 	 	 	 
			Section
			

	
    
    Ten Percent Stockholder
    

    	 	 	2.45	 
	
    
    Termination of Employment
    

    	 	 	2.46	 
	
    
    TMW Group
    

    	 	 	2.47	 
	
    ARTICLE III — ELIGIBILITY AND
    PARTICIPATION
    
	
    
    Eligibility
    

    	 	 	3.1	 
	
    
    Participation
    

    	 	 	3.2	 
	
    ARTICLE IV — GENERAL PROVISIONS
    RELATING TO AWARDS
    
	
    
    Authority to Grant Awards
    

    	 	 	4.1	 
	
    
    Dedicated Shares; Maximum Awards
    

    	 	 	4.2	 
	
    
    Non-Transferability
    

    	 	 	4.3	 
	
    
    Requirements of Law
    

    	 	 	4.4	 
	
    
    Changes in the Company’s Capital Structure
    

    	 	 	4.5	 
	
    
    Election Under Section 83(b) of the Code
    

    	 	 	4.6	 
	
    
    Forfeiture for Cause
    

    	 	 	4.7	 
	
    
    Forfeiture Events
    

    	 	 	4.8	 
	
    
    ARTICLE V — OPTIONS
    

    	 	 	 	 
	
    
    Authority to Grant Options
    

    	 	 	5.1	 
	
    
    Type of Options Available
    

    	 	 	5.2	 
	
    
    Option Agreement
    

    	 	 	5.3	 
	
    
    Option Price
    

    	 	 	5.4	 
	
    
    Duration of Options
    

    	 	 	5.5	 
	
    
    Amount Exercisable
    

    	 	 	5.6	 
	
    
    Exercise of Options
    

    	 	 	5.7	 
	
    
    Transferability of Options
    

    	 	 	5.8	 
	
    
    Notification of Disqualifying Disposition
    

    	 	 	5.9	 
	
    
    No Rights as Stockholder
    

    	 	 	5.10	 
	
    
    $100,000 Limitation on Incentive Stock Options
    

    	 	 	5.11	 
	
    
    ARTICLE VI — STOCK APPRECIATION RIGHTS
    

    	 	 	 	 
	
    
    Authority to Grant Stock Appreciation Rights
    Awards
    

    	 	 	6.1	 
	
    
    Type of Stock Appreciation Rights Available
    

    	 	 	6.2	 
	
    
    Stock Appreciation Right Agreement
    

    	 	 	6.3	 
	
    
    Term of Stock Appreciation Rights
    

    	 	 	6.4	 
	
    
    Exercise of Freestanding SARs
    

    	 	 	6.5	 
	
    
    Exercise of Tandem SARs
    

    	 	 	6.6	 
	
    
    Payment of SAR Amount
    

    	 	 	6.7	 
	
    
    Termination of Employment
    

    	 	 	6.8	 
	
    
    Nontransferability of SARs
    

    	 	 	6.9	 
	
    
    No Rights as Stockholder
    

    	 	 	6.10	 
	
    
    Restrictions on Stock Received
    

    	 	 	6.11	 
	
    
    ARTICLE VII — RESTRICTED STOCK AWARDS
    

    	 	 	 	 
	
    
    Restricted Stock Awards
    

    	 	 	7.1	 
	
    
    Holder’s Rights as Stockholder
    

    	 	 	7.2	 
	
    
    ARTICLE VIII — DEFERRED STOCK UNIT
    AWARDS
    

    	 	 	 	 
	
    
    Authority to Grant Deferred Stock Unit Awards
    

    	 	 	8.1	 
	
    
    Deferred Stock Unit Awards
    

    	 	 	8.2	 
	
    
    Deferred Stock Unit Award Agreement
    

    	 	 	8.3	 
	
    
    Payments Under Deferred Stock Unit Awards
    

    	 	 	8.4	 
	
    
    Holder’s Rights as Stockholder
    

    	 	 	8.5	 
	
    ARTICLE IX — PERFORMANCE STOCK AND
    PERFORMANCE UNIT AWARDS
    
	
    
    Authority to Grant Performance Stock and
    Performance Unit Awards
    

    	 	 	9.1	 

ii

 

	 	 	 	 	 
			Section
			

	
    
    Rights as Stockholder
    

    	 	 	9.2	 
	
    
    Increases Prohibited
    

    	 	 	9.3	 
	
    
    ARTICLE X — CASH-BASED AWARDS AND OTHER
    STOCK-BASED AWARDS
    

    	 	 	 	 
	
    
    Authority to Grant Cash-Based Awards
    

    	 	 	10.1	 
	
    
    Authority to Grant Other Stock-Based Awards
    

    	 	 	10.2	 
	
    
    Value of Cash-Based Awards and Other Stock-Based
    Awards
    

    	 	 	10.3	 
	
    
    Payment of Cash-Based Awards and Other
    Stock-Based Awards
    

    	 	 	10.4	 
	
    
    Termination of Employment
    

    	 	 	10.5	 
	
    
    Nontransferability
    

    	 	 	10.6	 
	
    
    ARTICLE XI — SUBSTITUTION AWARDS
    

    	 	 	 	 
	
    
    ARTICLE XII — ADMINISTRATION
    

    	 	 	 	 
	
    
    Awards
    

    	 	 	12.1	 
	
    
    Authority of the Committee
    

    	 	 	12.2	 
	
    
    Decisions Binding
    

    	 	 	12.3	 
	
    
    No Liability
    

    	 	 	12.4	 
	
    
    ARTICLE XIII — AMENDMENT OR TERMINATION
    OF PLAN
    

    	 	 	 	 
	
    
    Amendment, Modification, Suspension, and
    Termination
    

    	 	 	13.1	 
	
    
    Awards Previously Granted
    

    	 	 	13.2	 
	
    
    ARTICLE XIV — MISCELLANEOUS
    

    	 	 	 	 
	
    
    Unfunded Plan/ No Establishment of a Trust Fund
    

    	 	 	14.1	 
	
    
    No Employment Obligation
    

    	 	 	14.2	 
	
    
    Tax Withholding
    

    	 	 	14.3	 
	
    
    Written Agreement
    

    	 	 	14.4	 
	
    
    Indemnification of the Committee
    

    	 	 	14.5	 
	
    
    Gender and Number
    

    	 	 	14.6	 
	
    
    Severability
    

    	 	 	14.7	 
	
    
    Headings
    

    	 	 	14.8	 
	
    
    Other Compensation Plans
    

    	 	 	14.9	 
	
    
    Other Awards
    

    	 	 	14.10	 
	
    
    Successors
    

    	 	 	14.11	 
	
    
    Law Limitations/ Governmental Approvals
    

    	 	 	14.12	 
	
    
    Delivery of Title
    

    	 	 	14.13	 
	
    
    Inability to Obtain Authority
    

    	 	 	14.14	 
	
    
    Investment Representations
    

    	 	 	14.15	 
	
    
    Persons Residing Outside of the United States
    

    	 	 	14.16	 
	
    
    No Fractional Shares
    

    	 	 	14.17	 
	
    
    Arbitration of Disputes
    

    	 	 	14.18	 
	
    
    Governing Law
    

    	 	 	14.19	 

iii

 

ARTICLE I

ESTABLISHMENT, PURPOSE AND DURATION

     
1.1     Establishment.
The Company hereby amends and restates in its entirety as set
forth in this document the Company’s incentive compensation
plan originally named “The Men’s Wearhouse, Inc. 1996
Stock Option Plan,” which is hereby renamed “The
Men’s Wearhouse, Inc. 1996 Long-Term Incentive Plan.”
The Plan, as amended and restated, permits the grant of Options
(both Incentive Stock Options and Nonqualified Stock Options),
Stock Appreciation Rights, Restricted Stock, Deferred Stock
Units, Performance Stock Awards, Performance Units, Cash-Based
Awards, and Other Stock-Based Awards. The Plan shall become
effective and shall be deemed to have been adopted on the date
the Plan is approved by the Board if within one year of that
date it shall have been approved by the holders of at least a
majority of the outstanding shares of voting stock of the
Company or if the provisions of the corporate charter, by-laws
or applicable state law prescribes a greater degree of
stockholder approval for this action, the approval by the
holders of that percentage, at a meeting of stockholders (the
“Effective Date”), and shall remain in effect
as provided in Section 1.3.

     
1.2     Purpose of
the Plan. The purpose of the Plan is to reward certain
corporate officers and other employees of the Company and its
Affiliates (collectively, the “TMW Group”) by
enabling them to acquire shares of common stock of the Company
and to receive other compensation based on the increase in value
of the common stock of the Company or certain other performance
measures. The Plan is intended to advance the best interests of
the Company, its Affiliates and its stockholders by providing
those persons who have substantial responsibility for the
management and growth of the TMW Group with additional
performance incentives and an opportunity to obtain or increase
their proprietary interest in the Company, thereby encouraging
them to continue in their employment with the TMW Group.

     
1.3     Duration of
Authority to Make Grants Under the Plan. No Awards may be
granted under the Plan on or after the tenth anniversary of the
Effective Date. The applicable provisions of the Plan will
continue in effect with respect to an Award granted under the
Plan for as long as such Award remains outstanding.

ARTICLE II

DEFINITIONS

     
The words and phrases defined in this Article
shall have the meaning set out below throughout the Plan, unless
the context in which any such word or phrase appears reasonably
requires a broader, narrower or different meaning.

     
2.1     “Affiliate”
means any corporation, partnership, limited liability company or
association, trust or other entity or organization which,
directly or indirectly, controls, is controlled by, or is under
common control with, the Company. For purposes of the preceding
sentence, “control” (including, with correlative
meanings, the terms “controlled by” and “under
common control with”), as used with respect to any entity
or organization, shall mean the possession, directly or
indirectly, of the power (a) to vote more than 50 percent
(50%) of the securities having ordinary voting power for the
election of directors of the controlled entity or organization,
or (ii) to direct or cause the direction of the management
and policies of the controlled entity or organization, whether
through the ownership of voting securities or by contract or
otherwise.

     
2.2     “Award”
means, individually or collectively, a grant under the Plan of
Incentive Stock Options, Nonqualified Stock Options, Stock
Appreciation Rights, Restricted Stock, Deferred Stock Units,
Performance Stock Awards, Performance Units, Cash-Based Awards,
and Other Stock-Based Awards, in each case subject to the terms
and provisions of the Plan.

     
2.3     “Award
Agreement” means an agreement that sets forth the terms
and conditions applicable to an Award granted under the Plan.

     
2.4     “Board”
means the board of directors of the Company.

     
2.5     “Cash-Based
Award” means an Award granted to a Holder pursuant to
Article X.

1

 

     
2.6     “Code”
means the United States Internal Revenue Code of 1986, as
amended from time to time.

     
2.7     “Committee”
means a committee of at least two persons, who are members of
the Compensation Committee of the Board and are appointed by the
Compensation Committee of the Board, or, to the extent it
chooses to operate as the Committee, the Compensation Committee
of the Board. Each member of the Committee in respect of his or
her participation in any decision with respect to an Award
intended to satisfy the requirements of section 162(m) of
the Code must satisfy the requirements of “outside
director” status within the meaning of section 162(m)
of the Code; provided, however, that the failure to satisfy such
requirement shall not affect the validity of the action of any
committee otherwise duly authorized and acting in the matter. As
to Awards, grants or other transactions that are authorized by
the Committee and that are intended to be exempt under
Rule 16b-3, the requirements of Rule 16b-3(d)(1) with
respect to committee action must also be satisfied.

     
2.8     “Company”
means The Men’s Wearhouse, Inc., a Texas corporation, or
any successor (by reincorporation, merger or otherwise).

     
2.9     “Corporate
Change” shall have the meaning ascribed to that term in
Section 4.5(c).

     
2.10     “Covered
Employee” means a Holder who is a “covered
employee,” as defined in section 162(m) of the Code
and the regulations promulgated thereunder, or any successor
statute.

     
2.11     “Deferred
Stock Unit” means a unit credited to a Holder’s
ledger account maintained by the Company pursuant to
Article VIII.

     
2.12     “Deferred
Stock Unit Award” means an Award granted pursuant to
Article VIII.

     
2.13     “Disability”
means as determined by the Committee in its discretion exercised
in good faith, a physical or mental condition of the Holder that
would entitle him to payment of disability income payments under
the Company’s long-term disability insurance policy or plan
for employees as then in effect; or in the event that the Holder
is not covered, for whatever reason under the Company’s
long-term disability insurance policy or plan for employees or
in the event the Company does not maintain such a long-term
disability insurance policy, “Disability” means a
permanent and total disability as defined in
section 22(e)(3) of the Code. A determination of Disability
may be made by a physician selected or approved by the Committee
and, in this respect, the Holder shall submit to an examination
by such physician upon request by the Committee.

     
2.14     “Effective
Date” shall have the meaning ascribed to that term in
Section 1.1.

     
2.15     “Employee”
means (a) a person employed by the Company or any Affiliate
as a common law employee or (b) a person who has agreed to
become a common law employee of the Company or any Affiliate and
is expected to become such within six (6) months from the
date of a determination made for purposes of the Plan.

     
2.16     “Exchange
Act” means the United States Securities Exchange Act of
1934, as amended from time to time.

     
2.17     “Fair
Market Value” of the Stock as of any particular date
means, if the Stock is traded on a stock exchange, the closing
sale price of the Stock on that date as reported on the
principal securities exchange on which the Stock is traded, if
the Stock is traded in the over-the-counter market, the average
between the high bid and low asked price on that date as
reported in such over-the-counter market, provided that
(a) if the Stock is not so traded, (b) if no closing
price or bid and asked prices for the stock was so reported on
that date or (c) if, in the discretion of the Committee,
another means of determining the fair market value of a share of
Stock at such date shall be necessary or advisable, the
Committee may provide for another means for determining such
fair market value.

     
2.18     “Fiscal
Year” means the Company’s fiscal year.

     
2.19     “Freestanding
SAR” means a SAR that is granted independently of any
Option pursuant to Article VI.

2

 

     
2.20     “Holder”
means a person who has been granted an Award or any person who
is entitled to receive Shares (and/or cash in the case of a
Stock Appreciation Right) under an Award.

     
2.21     “Incentive
Stock Option” or “ISO” means an option
which is intended, as evidenced by its designation, as an
incentive stock option within the meaning of section 422 of
the Code, the award of which contains such provisions (including
but not limited to the receipt of stockholder approval of the
Plan, if the Award is made prior to such approval) and is made
under such circumstances and to such persons as may be necessary
to comply with that section.

     
2.22     “Mature
Shares” means shares of Stock that the Holder has held
for at least six months.

     
2.23     “Nonqualified
Stock Option” or “NQSO” means an
Option that is designated as a nonqualified stock option. Any
Option granted hereunder that is not designated as an incentive
stock option shall be deemed to be designated a nonqualified
stock option under the Plan and not an incentive stock option
under the Code.

     
2.24     “Option”
means an Incentive Stock Option or a Nonqualified Stock Option
granted pursuant to Article V.

     
2.25     “Option
Price” shall have the meaning ascribed to that term in
Section 5.4.

     
2.26     “Optionee”
means a person who is granted an Option under the Plan.

     
2.27     “Option
Agreement” means a written contract setting forth the
terms and conditions of an Option.

     
2.28     “Other
Stock-Based Award” means an equity-based or
equity-related Award not otherwise described by the terms and
provisions of the Plan that is granted pursuant to
Article X.

     
2.29     “Parent
Corporation” means any corporation (other than the
Company) in an unbroken chain of corporations ending with the
Company if, at the time of the action or transaction, each of
the corporations other than the Company owns stock possessing
50 percent or more of the total combined voting power of
all classes of stock in one of the other corporations in the
chain.

     
2.30     “Performance-Based
Award” means a Performance Stock Award, a Performance
Unit, or a Cash-Based Award granted to a Holder under which the
fulfillment of performance goals determines the degree of payout
or vesting.

     
2.31     “Performance-Based
Compensation” means compensation under an Award that
satisfies the requirements of section 162(m) of the Code
for deductibility of remuneration paid to Covered Employees.

     
2.32     “Performance
Goals” means one or more of the criteria described in
Article IX on which the performance goals applicable to an
Award are based.

     
2.33     “Performance
Period” means the period of time during which the
performance goals applicable to a Performance-Based Award must
be met.

     
2.34     “Performance
Stock Award” means an Award granted to a Holder
pursuant to Article IX.

     
2.35     “Performance
Unit Award” means an Award granted to a Holder pursuant
to Article IX.

     
2.36     “Period
of Restriction” means the period during which
Restricted Stock is subject to a substantial risk of forfeiture
(based on the passage of time, the achievement of performance
goals, or upon the occurrence of other events as determined by
the Committee, in its discretion), as provided in
Article VII.

     
2.37     “Plan”
means The Men’s Wearhouse, Inc. 1996 Long-Term Incentive
Plan, as set forth in this document and as it may be amended
from time to time.

     
2.38     “Restricted
Stock” means shares of restricted Stock issued or
granted under the Plan pursuant to Article VII.

     
2.39     “Restricted
Stock Award” means an authorization by the Committee to
issue or transfer Restricted Stock to a Holder.

3

 

     
2.40     “Retirement”
means retirement in accordance with the terms of a retirement
plan that is qualified under section 401(a) of the Code and
maintained by the Company or an Affiliate in which the Holder is
a participant.

     
2.41     “Stock
Appreciation Right” or “SAR” means any
stock appreciation right granted pursuant to Article VI of
the Plan.

     
2.42     “Stock”
means the common stock of the Company, $.01 par value per
share (or such other par value as may be designated by act of
the Company’s stockholders).

     
2.43     “Subsidiary
Corporation” means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the
Company if, at the time of the action or transaction, each of
the corporations other than the last corporation in an unbroken
chain owns stock possessing 50 percent or more of the total
combined voting power of all classes of stock in one of the
other corporations in the chain.

     
2.44     “Tandem
SAR” means a SAR that is granted in connection with a
related Option pursuant to Article VI, the exercise of
which shall require forfeiture of the right to purchase a share
of the Stock under the related Option (and when a share of the
Stock is purchased under the Option, the Tandem SAR shall
similarly be canceled).

     
2.45     “Ten
Percent Stockholder” means an individual who, at the
time the Option is granted, owns stock possessing more than ten
percent of the total combined voting power of all classes of
stock or series of the Company or of any Parent Corporation or
Subsidiary Corporation. An individual shall be considered as
owning the stock owned, directly or indirectly, by or for his
brothers and sisters (whether by the whole or half blood),
spouse, ancestors and lineal descendants; and stock owned,
directly or indirectly, by or for a corporation, partnership,
estate or trust, shall be considered as being owned
proportionately by or for its stockholders, partners or
beneficiaries.

     
2.46     “Termination
of Employment” means, in the case of an Award other
than an Incentive Stock Option, the termination of the Award
recipient’s employment relationship with the Company and
all Affiliates. “Termination of Employment”
means, in the case of an Incentive Stock Option, the termination
of the Optionee’s employment relationship with all of the
Company, any Parent Corporation, any Subsidiary Corporation and
any parent or subsidiary corporation (within the meaning of
section 422(a)(2) of the Code) of any such corporation that
issues or assumes an Incentive Stock Option in a transaction to
which section 424(a) of the Code applies.

     
2.47     “TMW
Group” shall have the meaning ascribed to that term in
Section 1.2.

ARTICLE III

ELIGIBILITY AND PARTICIPATION

     
3.1     Eligibility.
The persons who are eligible to receive Awards under the Plan
are Employees who have substantial responsibility for or
involvement with the management and growth of one or more
members of the TMW Group; provided that George Zimmer and James
Zimmer shall not be eligible to participate in the Plan.
However, only those persons who are, on the dates of grant, key
employees of the Company or any Parent Corporation or Subsidiary
Corporation are eligible for grants of Incentive Stock Options
under the Plan.

     
3.2     Participation.
Subject to the terms and provisions of the Plan, the Committee
may, from time to time, select from all eligible Employees those
persons to whom Awards shall be granted and shall determine the
nature and amount of each Award.

4

 

ARTICLE IV

GENERAL PROVISIONS RELATING TO AWARDS

     
4.1     Authority to
Grant Awards. The Committee may grant Awards to those
Employees as the Committee shall from time to time determine,
under the terms and conditions of the Plan. Subject only to any
applicable limitations set out in the Plan, the number of shares
of Stock or other value to be covered by any Award to be granted
under the Plan shall be as determined by the Committee in its
sole discretion.

     
4.2     Dedicated
Shares; Maximum Awards. The aggregate number of shares of
Stock with respect to which Awards may be granted under the Plan
is 1,850,000. The aggregate number of shares of Stock with
respect to which Incentive Stock Options may be granted under
the Plan is 1,850,000. The aggregate number of shares of Stock
with respect to which Nonqualified Stock Options may be granted
under the Plan is 1,850,000. The aggregate number of shares of
Stock with respect to which Stock Appreciation Rights may be
granted under the Plan is 1,850,000. The aggregate number of
shares of Stock with respect to which Restricted Stock Awards
may be granted under the Plan is 925,000. The aggregate number
of shares of Stock with respect to which Performance Stock
Awards may be granted under the Plan is 925,000. The maximum
number of shares of Stock with respect to which Incentive Stock
Options may be granted to an Employee during a Fiscal Year is
600,000. The maximum number of shares of Stock with respect to
which Nonqualified Stock Options may be granted to an Employee
during a Fiscal Year is 600,000. The maximum number of shares of
Stock with respect to which Stock Appreciation Rights may be
granted to an Employee during a Fiscal Year is 600,000. The
maximum number of shares of Stock with respect to which
Restricted Stock Awards may be granted to an Employee during a
Fiscal Year is 450,000. The maximum amount with respect to which
Deferred Stock Unit Awards may be granted to an Employee during
a Fiscal Year may not exceed in value the Fair Market Value of
450,000 shares of Stock determined as of the date of grant.
The maximum number of shares of Stock with respect to which
Performance Stock Awards may be granted to an Employee during a
Fiscal Year is 450,000. The maximum number of shares of Stock
with respect to which Performance Unit Awards may be granted to
an Employee during a Fiscal Year is 450,000. The maximum number
of shares of Stock with respect to which Other Stock-Based
Awards may be granted to an Employee during a Fiscal Year is
450,000. The maximum aggregate amount with respect to which
Cash-Based Awards may be awarded or credited to an Employee
during a Fiscal Year may not exceed in value $3,000,000
determined as of the date of grant. The maximum aggregate amount
with respect to which Performance Unit Awards may be awarded or
credited to an Employee during a Fiscal Year may not exceed in
value $3,000,000 determined as of the date of grant. Each of the
foregoing numerical limits stated in this Section 4.2 shall
be subject to adjustment in accordance with the provisions of
Section 4.5. The number of shares of Stock stated in this
Section 4.2 shall also be increased by such number of
shares of Stock as become subject to substitute Awards granted
pursuant to Article XI; provided, however, that such
increase shall be conditioned upon the approval of the
stockholders of the Company to the extent stockholder approval
is required by law or applicable stock exchange rules. If any
outstanding Award expires or terminates for any reason, is
settled in cash in lieu of shares of Stock or any Award is
surrendered, the shares of Stock allocable to the unexercised
portion of that Award may again be subject to an Award granted
under the Plan. If shares of Stock are withheld from payment of
an Award to satisfy tax obligations with respect to the Award,
such shares of Stock will not count against the aggregate number
of shares of Stock with respect to which Awards may be granted
under the Plan. If a Stock Appreciation Right is exercised, only
the number of shares of Stock actually issued shall be charged
against the maximum number of shares of Stock that may be
delivered pursuant to Awards under the Plan.

     
4.3     Non-Transferability.
Except as specified in the applicable Award Agreements or in
domestic relations court orders, Awards shall not be
transferable by the Holder other than by will or under the laws
of descent and distribution, and shall be exercisable, during
the Holder’s lifetime, only by him or her. In the
discretion of the Committee, any attempt to transfer an Award
other than under the terms of the Plan and the applicable Award
Agreement may terminate the Award.

     
4.4     Requirements
of Law. The Company shall not be required to sell or issue
any shares of Stock under any Award if issuing those shares of
Stock would constitute or result in a violation by the Holder or
the Company of any provision of any law, statute or regulation
of any governmental authority. Specifically, in

5

 

connection with any applicable statute or
regulation relating to the registration of securities, upon
exercise of any Option or pursuant to any other Award, the
Company shall not be required to issue any shares of Stock
unless the Committee has received evidence satisfactory to it to
the effect that the Holder will not transfer the shares of Stock
except in accordance with applicable law, including receipt of
an opinion of counsel satisfactory to the Company to the effect
that any proposed transfer complies with applicable law. The
determination by the Committee on this matter shall be final,
binding and conclusive. The Company may, but shall in no event
be obligated to, register any shares of Stock covered by the
Plan pursuant to applicable securities laws of any country or
any political subdivision. In the event the shares of Stock
issuable on exercise of an Option or pursuant to any other Award
are not registered, the Company may imprint on the certificate
evidencing the shares of Stock any legend that counsel for the
Company considers necessary or advisable to comply with
applicable law, or, should the shares of Stock be represented by
book or electronic entry rather than a certificate, the Company
may take such steps to restrict transfer of the shares of Stock
as counsel for the Company considers necessary or advisable to
comply with applicable law. The Company shall not be obligated
to take any other affirmative action in order to cause or enable
the exercise of an Option or any other Award, or the issuance of
shares of Stock pursuant thereto, to comply with any law or
regulation of any governmental authority.

     
4.5     Changes in
the Company’s Capital Structure.

     
(a) The existence of outstanding Awards
shall not affect in any way the right or power of the Company or
its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the
Company’s capital structure or its business, any merger or
consolidation of the Company, any issue of bonds, debentures,
preferred or prior preference shares ahead of or affecting the
Stock or Stock rights, the dissolution or liquidation of the
Company, any sale or transfer of all or any part of its assets
or business or any other corporate act or proceeding, whether of
a similar character or otherwise.

     
(b) If the Company shall effect a
subdivision or consolidation of Stock or other capital
readjustment, the payment of a Stock dividend, or other increase
or reduction of the number of shares of Stock outstanding,
without receiving compensation therefor in money, services or
property, then (1) the number, class or series and per
share price of Stock subject to outstanding Options or other
Awards under the Plan shall be appropriately adjusted in such a
manner as to entitle a Holder to receive upon exercise of an
Option or other Award, for the same aggregate cash
consideration, the equivalent total number and class or series
of Stock the Holder would have received had the Holder exercised
his or her Option or other Award in full immediately prior to
the event requiring the adjustment, and (2) the number and
class or series of Stock then reserved to be issued under the
Plan shall be adjusted by substituting for the total number and
class or series of Stock then reserved, that number and class or
series of Stock that would have been received by the owner of an
equal number of outstanding shares of Stock of each class or
series of Stock as the result of the event requiring the
adjustment.

     
(c) If while unexercised Options or other
Awards remain outstanding under the Plan (1) the Company
shall not be the surviving entity in any merger, consolidation
or other reorganization (or survives only as a subsidiary of an
entity other than an entity that was wholly-owned by the Company
immediately prior to such merger, consolidation or other
reorganization), (2) the Company sells, leases or exchanges
or agrees to sell, lease or exchange all or substantially all of
its assets to any other person or entity (other than an entity
wholly-owned by the Company), (3) the Company is to be
dissolved or (4) the Company is a party to any other
corporate transaction (as defined under section 424(a) of
the Code and applicable Department of Treasury regulations) that
is not described in clauses (1), (2) or (3) of
this sentence (each such event is referred to herein as a
“Corporate Change”), then, except as otherwise
provided in an Award Agreement (provided that such exceptions
shall not apply in the case of a reincorporation merger), or as
a result of the Committee’s effectuation of one or more of
the alternatives described below, there shall be no acceleration
of the time at which any Award then outstanding may be
exercised, and no later than ten days after the approval by the
stockholders of the Company of such Corporate Change, the
Committee, acting in its sole and absolute discretion without
the consent or approval of any Holder, shall act to effect one
or more of the following alternatives, which may vary among
individual Holders and which may vary among Awards held by any
individual Holder (provided that, with respect to a
reincorporation merger in which Holders of the Company’s

6

 

ordinary shares will receive one ordinary share
of the successor corporation for each ordinary share of the
Company, none of such alternatives shall apply and, without
Committee action, each Award shall automatically convert into a
similar award of the successor corporation exercisable for the
same number of ordinary shares of the successor as the Award was
exercisable for ordinary shares of Stock of the Company):

		
	 	     
    (1) accelerate the time at which some or all
    of the Awards then outstanding may be exercised so that such
    Awards may be exercised in full for a limited period of time on
    or before a specified date (before or after such Corporate
    Change) fixed by the Committee, after which specified date all
    such Awards that remain unexercised and all rights of Holders
    thereunder shall terminate;
    
	 
	 	     
    (2) require the mandatory surrender to the
    Company by all or selected Holders of some or all of the then
    outstanding Awards held by such Holders (irrespective of whether
    such Awards are then exercisable under the provisions of the
    Plan or the applicable Award Agreement evidencing such Award) as
    of a date, before or after such Corporate Change, specified by
    the Committee, in which event the Committee shall thereupon
    cancel such Award and the Company shall pay to each such Holder
    an amount of cash per share equal to the excess, if any, of the
    per share price offered to stockholders of the Company in
    connection with such Corporate Change over the exercise prices
    under such Award for such shares;
    
	 
	 	     
    (3) with respect to all or selected Holders,
    have some or all of their then outstanding Awards (whether
    vested or unvested) assumed or have a new award of a similar
    nature substituted for some or all of their then outstanding
    Awards under the Plan (whether vested or unvested) by an entity
    which is a party to the transaction resulting in such Corporate
    Change and which is then employing such Holder or which is
    affiliated or associated with such Holder in the same or a
    substantially similar manner as the Company prior to the
    Corporate Change, or a parent or subsidiary of such entity,
    provided that (A) such assumption or substitution is on a
    basis where the excess of the aggregate fair market value of the
    Stock subject to the Award immediately after the assumption or
    substitution over the aggregate exercise price of such Stock is
    equal to the excess of the aggregate fair market value of all
    Stock subject to the Award immediately before such assumption or
    substitution over the aggregate exercise price of such Stock,
    and (B) the assumed rights under such existing Award or the
    substituted rights under such new Award as the case may be will
    have the same terms and conditions as the rights under the
    existing Award assumed or substituted for, as the case may be;
    
	 
	 	     
    (4) provide that the number and class or
    series of Stock covered by an Award (whether vested or unvested)
    theretofore granted shall be adjusted so that such Award when
    exercised shall thereafter cover the number and class or series
    of Stock or other securities or property (including, without
    limitation, cash) to which the Holder would have been entitled
    pursuant to the terms of the agreement or plan relating to such
    Corporate Change if, immediately prior to such Corporate Change,
    the Holder had been the holder of record of the number of shares
    of Stock then covered by such Award; or
    
	 
	 	     
    (5) make such adjustments to Awards then
    outstanding as the Committee deems appropriate to reflect such
    Corporate Change (provided, however, that the Committee may
    determine in its sole and absolute discretion that no such
    adjustment is necessary).
    

     
In effecting one or more of alternatives in (3),
(4) or (5) immediately above, and except as otherwise
may be provided in an Award Agreement, the Committee, in its
sole and absolute discretion and without the consent or approval
of any Holder, may accelerate the time at which some or all
Awards then outstanding may be exercised.

     
(d) In the event of changes in the
outstanding Stock by reason of recapitalizations,
reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring
after the date of the grant of any Award and not otherwise
provided for by this Section 4.5, any outstanding Award and
any Award Agreements evidencing such Award shall be subject to
adjustment by the Committee in its sole and absolute discretion
as to the number and price of Stock or other consideration
subject to such Award. In the event of any such change in the
outstanding Stock, the aggregate number of shares of Stock
available under the Plan may be appropriately adjusted by the
Committee, whose determination shall be conclusive.

7

 

     
(e) After a merger of one or more
corporations into the Company or after a consolidation of the
Company and one or more corporations in which the Company shall
be the surviving corporation, each Holder shall be entitled to
have his Restricted Stock appropriately adjusted based on the
manner in which the shares of Stock were adjusted under the
terms of the agreement of merger or consolidation.

     
(f) The issuance by the Company of stock of
any class or series, or securities convertible into, or
exchangeable for, stock of any class or series, for cash or
property, or for labor or services either upon direct sale or
upon the exercise of rights or warrants to subscribe for them,
or upon conversion or exchange of stock or obligations of the
Company convertible into, or exchangeable for, stock or other
securities, shall not affect, and no adjustment by reason of
such issuance shall be made with respect to, the number, class
or series, or price of shares of Stock then subject to
outstanding Options or other Awards.

     
4.6     Election
Under Section 83(b) of the Code. No Holder shall
exercise the election permitted under section 83(b) of the
Code with respect to any Award without the written approval of
the Chief Financial Officer of the Company. Any Holder who makes
an election under section 83(b) of the Code with respect to
any Award without the written approval of the Chief Financial
Officer of the Company may, in the discretion of the Committee,
forfeit any or all Awards granted to him or her under the Plan.

     
4.7     Forfeiture
for Cause. Notwithstanding any other provision of the Plan
or an Award Agreement, if the Committee finds by a majority vote
that a Holder, before or after his Termination of Employment
(a) committed a fraud, embezzlement, theft, felony or an
act of dishonesty in the course of his employment by the Company
or an Affiliate which conduct damaged the Company or an
Affiliate or (b) disclosed trade secrets of the Company or
an Affiliate, then as of the date the Committee makes its
finding, any Awards awarded to the Holder that have not been
exercised by the Holder (including all Awards that have not yet
vested) will be forfeited to the Company. The findings and
decision of the Committee with respect to such matter, including
those regarding the acts of the Holder and the damage done to
the Company, will be final for all purposes. No decision of the
Committee, however, will affect the finality of the discharge of
the individual by the Company or an Affiliate.

     
4.8     Forfeiture
Events. The Committee may specify in an Award Agreement that
the Holder’s rights, payments, and benefits with respect to
an Award shall be subject to reduction, cancellation,
forfeiture, or recoupment upon the occurrence of certain
specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events may
include, but shall not be limited to, Termination of Employment
for cause, termination of the Holder’s provision of
services to the Company or its Affiliates, violation of material
policies of the TMW Group, breach of noncompetition,
confidentiality, or other restrictive covenants that may apply
to the Holder, or other conduct by the Holder that is
detrimental to the business or reputation of the TMW Group.

ARTICLE V

OPTIONS

     
5.1     Authority to
Grant Options. Subject to the terms and provisions of the
Plan, the Committee, at any time, and from time to time, may
grant Options under the Plan to eligible persons in such number
and upon such terms as the Committee shall determine.

     
5.2     Type of
Options Available. Options granted under the Plan may be
Incentive Stock Options intended to satisfy the requirements of
section 422 of the Code or Nonqualified Stock Options that
are not intended to satisfy the requirements of section 422
of the Code.

     
5.3     Option
Agreement. Each Option grant under the Plan shall be
evidenced by an Option Agreement that shall specify
(a) whether the Option is intended to be an ISO or a NQSO,
(b) the Option Price, (c) the duration of the Option,
(d) the number of shares of Stock to which the Option
pertains, (e) the exercise restrictions applicable to the
Option, and (f) such other provisions as the Committee
shall determine that are not inconsistent with the terms and
provisions of the Plan. Notwithstanding the designation of an
Option as an

8

 

ISO in the applicable Option Agreement, to the
extent the limitations of section 422 of the Code are
exceeded with respect to the Option, the portion of the Option
in excess of the limitation shall be treated as a NQSO.

     
5.4     Option
Price. The price at which shares of Stock may be purchased
under an Option (the “Option Price”) shall not
be less than 100 percent (100%) of the Fair Market Value of
the shares of Stock on the date the Option is granted. However,
in the case of a Ten Percent Stockholder, the Option Price for
an Incentive Stock Option shall not be less than
110 percent (110%) of the Fair Market Value of the shares
of Stock on the date the Incentive Stock Option is granted.
Subject to the limitations set forth in the preceding sentences
of this Section 5.4, the Committee shall determine the
Option Price for each grant of an Option under the Plan.

     
5.5     Duration of
Options. An Option shall not be exercisable after the
earlier of (i) the general term of the Option specified in
Section 5.5(a), or (ii) the period of time specified
herein that follows the Optionee’s death, Disability,
Retirement or other Termination of Employment. Unless the
Optionee’s applicable Option Agreement specifies otherwise,
an Option shall not continue to vest after the Optionee’s
Termination of Employment for any reason other than the death or
Disability of the Optionee.

     
(a) General Term of Option. Unless
the Option Agreement specifies a shorter general term, an Option
shall expire on the tenth anniversary of the date the Option is
granted. Notwithstanding the foregoing, unless the Option
Agreement specifies a shorter term, in the case of an Incentive
Stock Option granted to a Ten Percent Stockholder, the Option
shall expire on the fifth anniversary of the date the Option is
granted.

     
(b) Early Termination of Option Due to
Termination of Employment Other Than for Death, Disability or
Retirement. Except as may be otherwise expressly provided by
the Committee in an Option Agreement, an Option shall terminate
on the earlier of (1) the date of the expiration of the
general term of the Option or (2) the date that is one day
less than one month after the date of the Optionee’s
Termination of Employment, whether with or without cause, for
any reason other than the death, Disability or Retirement of the
Optionee, during which period the Optionee shall be entitled to
exercise the Option in respect of the number of shares of Stock
that the Optionee would have been entitled to purchase had the
Optionee exercised the Option on the date of such Termination of
Employment. The Committee shall determine whether an authorized
leave of absence, absence on military or government service, or
any other absence from service shall constitute a termination of
the employment relationship between the Optionee and the Company
and all Affiliates. Notwithstanding the foregoing, in the case
of an Incentive Stock Option, if an Optionee has an authorized
leave of absence from employment with the Company, a Parent
Corporation or a Subsidiary Corporation that exceeds
90 days and the Optionee’s right to reemployment is
not guaranteed by either statute or contract, the Optionee will
be deemed to incur a Termination of Employment on the
91st day of such leave.

     
(c) Early Termination of Option Due to
Death. Unless the Committee specifies otherwise in the
applicable Option Agreement, in the event of the Optionee’s
Termination of Employment due to death before the date of
expiration of the general term of the Option, the
Optionee’s Option shall terminate on the earlier of the
date of expiration of the general term of the Option or the
first anniversary of the date of the Optionee’s death,
during which period the Optionee’s executors or
administrators or such persons to whom such Options were
transferred by will or by the laws of descent and distribution,
shall be entitled to exercise the Option in respect of the
number of shares of Stock that the Optionee would have been
entitled to purchase had the Optionee exercised the Option on
the date of his death.

     
(d) Early Termination of Option Due to
Disability. Unless the Committee specifies otherwise in the
applicable Option Agreement, in the event of the Termination of
Employment due to Disability before the date of the expiration
of the general term of the Option, the Optionee’s Option
shall terminate on the earlier of the expiration of the general
term of the Option or the first anniversary of the date of the
Termination of Employment due to Disability, during which period
the Optionee shall be entitled to exercise the Option in respect
of the number of shares of Stock that the Optionee would have
been entitled to purchase had the Optionee exercised the Option
on the date of such Termination of Employment.

     
(e) Early Termination of Option Due to
Retirement. Unless the Committee specifies otherwise in the
applicable Option Agreement, in the event of the Optionee’s
Termination of Employment due to Retirement before the date of
the expiration of the general term of the Option, the
Optionee’s Option shall terminate on

9

 

the earlier of the expiration of the general term
of the Option or the first anniversary of the date of the
Termination of Employment due to Retirement, during which period
the Optionee shall be entitled to exercise the Option in respect
of the number of shares of Stock that the Optionee would have
been entitled to purchase had the Optionee exercised the Option
on the date of such Termination of Employment.

     
After the death of the Optionee, the
Optionee’s executors, administrators or any person or
persons to whom the Optionee’s Option may be transferred by
will or by the laws of descent and distribution, shall have the
right, at any time prior to the termination of the Option to
exercise the Option, in respect to the number of all of the
remaining unexercised and unexpired shares of Stock subject to
the Option.

     
5.6     Amount
Exercisable. Each Option may be exercised at the time, in
the manner and subject to the conditions the Committee specifies
in the Option Agreement in its sole discretion. Unless the
Committee specifies otherwise in an applicable Option Agreement,
an Option Agreement shall set forth the following terms
regarding the exercise of the Option covered by the Option
Agreement:

		
	 	     
    (a) No Option granted under the Plan may be
    exercised until an Optionee has completed one year of continuous
    employment with the Company or any subsidiary of the Company
    following the date of grant;
    
	 
	 	     
    (b) Beginning on the day after the first
    anniversary of the date of grant, an Option may be exercised up
    to 1/3 of the shares subject to the Option;
    
	 
	 	     
    (c) After the expiration of each succeeding
    anniversary date of the date of grant, the Option may be
    exercised up to an additional 1/3 of the shares initially
    subject to the Option, so that after the expiration of the third
    anniversary of the date of grant, the Option shall be
    exercisable in full;
    
	 
	 	     
    (d) To the extent not exercised,
    installments shall be cumulative and may be exercised in whole
    or in part until the Option expires on the tenth anniversary of
    the date of grant.
    

     
However, the Committee, in its discretion, may
change the terms of exercise so that any Option may be exercised
so long as it is valid and outstanding from time to time in part
or as a whole in such manner and subject to such conditions as
the Committee may set. In addition, the Committee, in its
discretion, may accelerate the time in which any outstanding
Option may be exercised. However, in no event shall any Option
be exercisable on or after the tenth anniversary of the date of
the grant of the Option.

     
5.7     Exercise of
Options.

     
(a) General Method of Exercise.
Subject to the terms and provisions of the Plan and an
Optionee’s Option Agreement, Options may be exercised in
whole or in part from time to time by the delivery of written
notice in the manner designated by the Committee stating
(1) that the Optionee wishes to exercise such option on the
date such notice is so delivered, (2) the number of shares
of Stock with respect to which the Option is to be exercised and
(3) the address to which the certificate representing such
shares of Stock should be mailed. Except in the case of exercise
by a third party broker as provided below, in order for the
notice to be effective the notice must be accompanied by payment
of the Option Price and any applicable tax withholding amounts
which must be made at the time of exercise by any combination of
the following: (a) cash, certified check, bank draft or
postal or express money order for an amount equal to the Option
Price under the Option, (b) Mature Shares with a Fair
Market Value on the date of exercise equal to the Option Price
under the Option (if approved in advance by the Committee or an
executive officer of the Company), (c) an election to make
a cashless exercise through a registered broker-dealer (if
approved in advance by the Committee or an executive officer of
the Company) or (d) except as specified below, any other
form of payment which is acceptable to the Committee. If Mature
Shares are used for payment by the Optionee, the aggregate Fair
Market Value of the shares of Stock tendered must be equal to or
less than the aggregate Option Price of the shares of Stock
being purchased upon exercise of the Option, and any difference
must be paid by cash, certified check, bank draft or postal or
express money order payable to the order of the Company.

     
If, at the time of receipt by the Company or its
delegate of such written notice, (i) the Company has
unrestricted surplus in an amount not less than the Option Price
of such shares of Stock, (ii) all accrued cumulative
preferential dividends and other current preferential dividends
on all outstanding shares of

10

 

preferred stock of the Company have been fully
paid, (iii) the acquisition by the Company of its own
shares of Stock for the purpose of enabling such Optionee to
exercise such Option is otherwise permitted by applicable law,
does not require any vote or consent of any stockholder of the
Company and does not violate the terms of any agreement to which
the Company is a party or by which it is bound, and
(iv) there shall have been adopted, and there shall be in
full force and effect, a resolution of the Board authorizing the
acquisition by the Company of its own shares of stock for such
purpose, then such Optionee may deliver to the Company, in
payment of the Option Price of the shares of Stock with respect
to which such Option is exercised, (x) certificates
registered in the name of such Optionee that represent a number
of shares of stock legally and beneficially owned by such
Optionee (free of all liens, claims and encumbrances of every
kind) and having a Fair Market Value on the date of receipt by
the Company or its delegate of such written notice that is not
greater than the Option Price of the shares of Stock with
respect to which such Option is to be exercised, such
certificates to be accompanied by stock powers duly endorsed in
blank by the record holder of the shares of Stock represented by
such certificates, with the signature of such record holder
guaranteed by a national banking association, and (y) if
the Option Price of the shares of Stock with respect to which
such Option is to be exercised exceeds such Fair Market Value, a
cashier’s check drawn on a national banking association and
payable to the order of the Company, in an amount, in United
States dollars, equal to the amount of such excess.
Notwithstanding the provisions of the immediately preceding
sentence, the Committee, in its sole discretion, may refuse to
accept shares of Stock in payment of the Option Price of the
shares of Stock with respect to which such Option is to be
exercised and, in that event, any certificates representing
shares of Stock that were received by the Company or its
delegate with such written notice shall be returned to such
Optionee, together with notice by the Company or its delegate to
such Optionee of the refusal of the Committee to accept such
shares of Stock. If, at the expiration of seven business days
after the delivery to such Optionee of such written notice from
the Company or its delegate, such Optionee shall not have
delivered to the Company or its delegate a cashier’s check
drawn on a national banking association and payable to the order
of the Company in an amount, in United States dollars, equal to
the Option Price of the shares of Stock with respect to which
such Option is to be exercised, such written notice from the
Optionee to the Company or its delegate shall be ineffective to
exercise such Option.

     
Whenever an Option is exercised by exchanging
shares of Stock owned by the Optionee, the Optionee shall
deliver to the Company or its delegate certificates registered
in the name of the Optionee representing a number of shares of
Stock legally and beneficially owned by the Optionee, free of
all liens, claims, and encumbrances of every kind, accompanied
by stock powers duly endorsed in blank by the record holder of
the shares represented by the certificates, (with signature
guaranteed by a commercial bank or trust company or by a
brokerage firm having a membership on a registered national
stock exchange). The delivery of certificates upon the exercise
of Option is subject to the condition that the person exercising
the Option provide the Company with the information the Company
might reasonably request pertaining to exercise, sale or other
disposition of an Option.

     
(b) Issuance of Shares. Subject to
Section 4.4 and Section 5.7(c), as promptly as
practicable after receipt of written notification and payment,
in the form required by Section 5.7(a), of an amount of
money necessary to satisfy any withholding tax liability that
may result from the exercise of such Option, the Company shall
deliver to the Optionee certificates for the number of shares
with respect to which the Option has been exercised, issued in
the Optionee’s name. Delivery of the shares shall be deemed
effected for all purposes when a stock transfer agent of the
Company shall have deposited the certificates in the United
States mail, addressed to the Optionee, at the address specified
by the Optionee.

     
(c) Exercise Through Third-Party
Broker. The Committee may permit an Optionee to elect to pay
the Option Price and any applicable tax withholding resulting
from such exercise by authorizing a third-party broker to sell
all or a portion of the shares of Stock acquired upon exercise
of the Option and remit to the Company a sufficient portion of
the sale proceeds to pay the Option Price and any applicable tax
withholding resulting from such exercise.

     
(d) Limitations on Exercise
Alternatives. The Committee shall not permit an Optionee to
pay such Optionee’s Option Price upon the exercise of an
Option by having the Company reduce the number of shares of
Stock that will be delivered pursuant to the exercise of the
Option. In addition, the Committee shall not

11

 

permit an Optionee to pay such Optionee’s
Option Price upon the exercise of an Option by using shares of
Stock other than Mature Shares. An Option may not be exercised
for a fraction of a share of Stock.

     
5.8     Transferability
of Options.

     
(a) Incentive Stock Options. No ISO
granted under the Plan may be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution. Further, all
ISOs granted to an Optionee under the Plan shall be exercisable
during his or her lifetime only by the Optionee, and after that
time, by the Optionee’s heirs or estate.

     
(b) Nonqualified Stock Options.
Except as otherwise provided in an Optionee’s Option
Agreement, no NQSO granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and
distribution. Further, except as otherwise provided in an
Optionee’s Option Agreement, all NQSOs granted to an
Optionee under the Plan shall be exercisable during his or her
lifetime only by such Optionee.

     
Any attempted assignment of an Option in
violation of this Section 5.8 shall be null and void.

     
5.9     Notification
of Disqualifying Disposition. If any Optionee shall make any
disposition of shares of Stock issued pursuant to the exercise
of an ISO under the circumstances described in
section 421(b) of the Code (relating to certain
disqualifying dispositions), such Optionee shall notify the
Company of such disposition within ten (10) days thereof.

     
5.10     No Rights as
Stockholder. An Optionee shall not have any rights as a
stockholder with respect to Stock covered by an Option until the
date a stock certificate for such Stock is issued by the
Company; and, except as otherwise provided in Section 4.5,
no adjustment for dividends, or otherwise, shall be made if the
record date therefor is prior to the date of issuance of such
certificate.

     
5.11     $100,000
Limitation on Incentive Stock Options. To the extent that
the aggregate Fair Market Value of Stock with respect to which
Incentive Stock Options first become exercisable by a Holder in
any calendar year exceeds $100,000, taking into account both
shares of Stock subject to Incentive Stock Options under the
Plan and Stock subject to incentive stock options under all
other plans of the Company, such Options shall be treated as
Nonqualified Stock Options. For this purpose, the “Fair
Market Value” of the Stock subject to Options shall be
determined as of the date the Options were awarded. In reducing
the number of Options treated as Incentive Stock Options to meet
the $100,000 limit, the most recently granted Options shall be
reduced first. To the extent a reduction of simultaneously
granted Options is necessary to meet the $100,000 limit, the
Committee may, in the manner and to the extent permitted by law,
designate which shares of Stock are to be treated as shares
acquired pursuant to the exercise of an Incentive Stock Option.

ARTICLE VI

STOCK APPRECIATION RIGHTS

     
6.1     Authority to
Grant Stock Appreciation Rights Awards. Subject to the terms
and provisions of the Plan, the Committee, at any time, and from
time to time, may grant Stock Appreciation Rights under the Plan
to eligible persons in such number and upon such terms as the
Committee shall determine. Subject to the terms and conditions
of the Plan, the Committee shall have complete discretion in
determining the number of SARs granted to each Employee and,
consistent with the provisions of the Plan, in determining the
terms and conditions pertaining to such SARs.

     
6.2     Type of Stock
Appreciation Rights Available. SARs granted under the Plan
may be Freestanding SARs, Tandem SARs or any combination of
these forms of SARs. Subject to the terms and conditions of the
Plan, a SAR granted under the Plan shall confer on the recipient
a right to receive, upon exercise thereof, a cash amount equal
to the excess of (a) the Fair Market Value of one share of
the Stock on the date of exercise over (b) the grant price
of the SAR, which shall not be less than 100 percent of the
Fair Market Value of one share of the Stock on the date of grant
of the SAR and in no event less than par value of one share of
the Stock. The grant price of a Freestanding SAR shall not be
less than the Fair Market Value of a share of the

12

 

Stock on the date of grant of the SAR. The grant
price of a Tandem SAR shall equal the Option Price of the Option
which is related to the Tandem SAR.

     
6.3     Stock
Appreciation Right Agreement. Each Award of SARs granted
under the Plan shall be evidenced by an Award Agreement that
shall specify (a) whether the SAR is intended to be a
Freestanding SAR or a Tandem SAR, (b) the grant price of
the SAR, (c) the term of the SAR, (d) the vesting and
termination provisions and (e) such other provisions as the
Committee shall determine that are not inconsistent with the
terms and provisions of the Plan. The Committee may impose such
additional conditions or restrictions on the exercise of any SAR
as it may deem appropriate.

     
6.4     Term of Stock
Appreciation Rights. The term of a SAR granted under the
Plan shall be determined by the Committee, in its sole
discretion; provided that no SAR shall be exercisable on or
after the tenth anniversary date of its grant.

     
6.5     Exercise of
Freestanding SARs. Freestanding SARs may be exercised upon
whatever terms and conditions the Committee, in its sole
discretion, imposes.

     
6.6     Exercise of
Tandem SARs.

     
(a) Tandem SARs may be exercised for all or
part of the shares of Stock subject to the related Option upon
the surrender of the right to exercise the equivalent portion of
the related Option. A Tandem SAR may be exercised only with
respect to the shares of Stock for which its related Option is
then exercisable.

     
(b) Notwithstanding any other provision of
the Plan to the contrary, with respect to a Tandem SAR granted
in connection with an ISO: (1) the Tandem SAR will expire
no later than the expiration of the underlying ISO; (2) the
value of the payout with respect to the Tandem SAR may be for no
more than 100 percent (100%) of the excess of the Fair
Market Value of the shares of Stock subject to the underlying
ISO at the time the Tandem SAR is exercised over the Option
Price of the underlying ISO; and (3) the Tandem SAR may be
exercised only when the Fair Market Value of the shares of Stock
subject to the ISO exceeds the Option Price of the ISO.

     
6.7     Payment of
SAR Amount. Upon the exercise of a SAR, an Employee shall be
entitled to receive payment from the Company in an amount
determined by multiplying:

		
	 	     
    (a) The excess of the Fair Market Value of a
    share of the Stock on the date of exercise over the grant price
    of the SAR by
    
	 
	 	     
    (b) The number of shares of Stock with
    respect to which the SAR is exercised.
    

At the discretion of the Committee, the payment
upon SAR exercise may be in cash, in Stock of equivalent value,
in some combination thereof or in any other manner approved by
the Committee in its sole discretion. The Committee’s
determination regarding the form of SAR payout shall be set
forth in the Award Agreement pertaining to the grant of the SAR.

     
6.8     Termination
of Employment. Each Award Agreement shall set forth the
extent to which the grantee of a SAR shall have the right to
exercise the SAR following the grantee’s Termination of
Employment. Such provisions hall be determined in the sole
discretion of the Committee, may be included in the Award
Agreement entered into with the grantee, and need not be uniform
among all SARs issued pursuant to the Plan and may reflect
distinctions based on the reasons for termination.

     
6.9     Nontransferability
of SARs. Except as otherwise provided in a Holder’s
Award Agreement, no SAR granted under the Plan may be sold,
transferred, pledged, assigned or otherwise alienated or
hypothecated, other than by will or by the laws of descent and
distribution. Further, except as otherwise provided in a
Holder’s Award Agreement, all SARs granted to a Holder
under the Plan shall be exercisable during his or her lifetime
only by the Holder, and after that time, by the Holder’s
heirs or estate. Any attempted assignment of a SAR in violation
of this Section 6.9 shall be null and void.

     
6.10     No Rights as
Stockholder. A grantee of a SAR award, as such, shall have
no rights as a stockholder.

13

 

     
6.11     Restrictions
on Stock Received. The Committee may impose such conditions
and/or restrictions on any shares of Stock received upon
exercise of a SAR granted pursuant to the Plan as it may deem
advisable or desirable. These restrictions may include, but
shall not be limited to, a requirement that the Holder hold the
shares of Stock received upon exercise of a SAR for a specified
period of time.

ARTICLE VII

RESTRICTED STOCK AWARDS

     
7.1     Restricted
Stock Awards. The Committee may make Awards of Restricted
Stock to eligible persons selected by it. The amount of, the
vesting and the transferability restrictions applicable to any
Restricted Stock Award shall be determined by the Committee in
its sole discretion. If the Committee imposes vesting or
transferability restrictions on a Holder’s rights with
respect to Restricted Stock, the Committee may issue such
instructions to the Company’s share transfer agent in
connection therewith as it deems appropriate. The Committee may
also cause the certificate for Shares issued pursuant to a
Restricted Stock Award to be imprinted with any legend which
counsel for the Company considers advisable with respect to the
restrictions or, should the Shares be represented by book or
electronic entry rather than a certificate, the Company may take
such steps to restrict transfer of the Shares as counsel for the
Company considers necessary or advisable to comply with
applicable law.

     
Each Restricted Stock Award shall be evidenced by
an Award Agreement that contains any vesting, transferability
restrictions and other provisions not inconsistent with the Plan
as the Committee may specify.

     
7.2     Holder’s
Rights as Stockholder. Subject to the terms and conditions
of the Plan, each recipient of a Restricted Stock Award shall
have all the rights of a stockholder with respect to the shares
of Restricted Stock included in the Restricted Stock Award
during the Period of Restriction established for the Restricted
Stock Award. Dividends paid with respect to Restricted Stock in
cash or property other than shares of Stock or rights to acquire
shares of Stock shall be paid to the recipient of the Restricted
Stock Award currently. Dividends paid in shares of Stock or
rights to acquire shares of Stock shall be added to and become a
part of the Restricted Stock. During the Period of Restriction,
certificates representing the Restricted Stock shall be
registered in the recipient’s name and bear a restrictive
legend to the effect that ownership of such Restricted Stock,
and the enjoyment of all rights appurtenant thereto, are subject
to the restrictions, terms, and conditions provided in the Plan
and the applicable Restricted Stock Award Agreement. Such
certificates shall be deposited by the recipient with the
Secretary of the Company or such other officer of the Company as
may be designated by the Committee, together with all stock
powers or other instruments of assignment, each endorsed in
blank, which will permit transfer to the Company of all or any
portion of the Restricted Stock which shall be forfeited in
accordance with the Plan and the applicable Restricted Stock
Award Agreement.

ARTICLE VIII

DEFERRED STOCK UNIT AWARDS

     
8.1     Authority to
Grant Deferred Stock Unit Awards. Subject to the terms and
provisions of the Plan, the Committee, at any time, and from
time to time, may grant Deferred Stock Units under the Plan to
eligible persons in such amounts and upon such terms as the
Committee shall determine. The amount of, the vesting and the
transferability restrictions applicable to any Deferred Stock
Unit Award shall be determined by the Committee in its sole
discretion. The Committee shall maintain a bookkeeping ledger
account which reflects the number of Deferred Stock Units
credited under the Plan for the benefit of a Holder.

     
8.2     Deferred
Stock Unit Awards. A Deferred Stock Unit shall be similar in
nature to Restricted Stock except that no shares of Stock are
actually transferred to the Holder until a later date specified
in the applicable Award Agreement. Each Deferred Stock Unit
shall have a value equal to the Fair Market Value of a share of
Stock.

14

 

     
8.3     Deferred
Stock Unit Award Agreement. Each Deferred Stock Unit Award
shall be evidenced by an Award Agreement that contains any
vesting, transferability restrictions and other provisions not
inconsistent with the Plan as the Committee may specify.

     
8.4     Payments
Under Deferred Stock Unit Awards. Payments pursuant to a
Deferred Stock Unit Award shall be made at such time as the
Committee specifies in the Holder’s Award Agreement.
Payment under a Deferred Stock Unit Award shall be made in
shares of Stock that have an aggregate Fair Market Value equal
to the value of the Deferred Stock Units.

     
8.5     Holder’s
Rights as Stockholder. Each recipient of Deferred Stock
Units shall have no rights of a stockholder with respect to the
Holder’s Deferred Stock Units. A Holder shall have no
voting rights with respect to any Deferred Stock Unit Awards.

ARTICLE IX

PERFORMANCE STOCK AND PERFORMANCE UNIT AWARDS

     
9.1     Authority to
Grant Performance Stock and Performance Unit Awards. Subject
to the terms and provisions of the Plan, the Committee, at any
time, and from time to time, may grant Performance Stock and
Performance Unit Awards under the Plan to eligible persons in
such amounts and upon such terms as the Committee shall
determine. The amount of, the vesting and the transferability
restrictions applicable to any Performance Stock or Performance
Unit Award shall be based upon the attainment of such
Performance Goals as the Committee may determine. A Performance
Goal for a particular Performance Stock or Performance Unit
Award must be established by the Committee prior to the earlier
to occur of (a) 90 days after the commencement of the
period of service to which the Performance Goal relates or
(b) the lapse of 25 percent of the period of service,
and in any event while the outcome is substantially uncertain. A
Performance Goal must be objective such that a third party
having knowledge of the relevant facts could determine whether
the goal is met. Such a Performance Goal may be based on one or
more business criteria that apply to the Employee, one or more
business units of the Company, or the Company as a whole, with
reference to one or more of the following: earnings per share,
earnings per share growth, total shareholder return, economic
value added, cash return on capitalization, increased revenue,
revenue ratios (per employee or per customer), net income, stock
price, market share, return on equity, return on assets, return
on capital, return on capital compared to cost of capital,
return on capital employed, return on invested capital,
shareholder value, net cash flow, operating income, earnings
before interest and taxes, cash flow, cash flow from operations,
cost reductions, cost ratios (per employee or per customer),
proceeds from dispositions, project completion time and budget
goals, net cash flow before financing activities, customer
growth and total market value. Goals may also be based on
performance relative to a peer group of companies. Unless
otherwise stated, such a Performance Goal need not be based upon
an increase or positive result under a particular business
criterion and could include, for example, maintaining the status
quo or limiting economic losses (measured, in each case, by
reference to specific business criteria). In interpreting Plan
provisions applicable to Performance Goals and Performance Stock
or Performance Unit Awards, it is intended that the Plan will
conform with the standards of section 162(m) of the Code
and Treasury Regulations § 1.162-27(e)(2)(i), and the
Committee in establishing such goals and interpreting the Plan
shall be guided by such provisions. Prior to the payment of any
compensation based on the achievement of Performance Goals, the
Committee must certify in writing that applicable Performance
Goals and any of the material terms thereof were, in fact,
satisfied. Subject to the foregoing provisions, the terms,
conditions and limitations applicable to any Performance Stock
or Performance Unit Awards made pursuant to the Plan shall be
determined by the Committee. If the Committee imposes vesting or
transferability restrictions on a recipient’s rights with
respect to Performance Stock or Performance Unit Awards, the
Committee may issue such instructions to the Company’s
share transfer agent in connection therewith as it deems
appropriate. The Committee may also cause the certificate for
shares of Stock issued pursuant to a Performance Stock or
Performance Unit Award to be imprinted with any legend which
counsel for the Company considers advisable with respect to the
restrictions or, should the shares of Stock be represented by
book or electronic entry rather than a certificate,

15

 

the Company may take such steps to restrict
transfer of the shares of Stock as counsel for the Company
considers necessary or advisable to comply with applicable law.

     
Each Performance Stock or Performance Unit Award
shall be evidenced by an Award Agreement that contains any
vesting, transferability restrictions and other provisions not
inconsistent with the Plan as the Committee may specify.

     
9.2     Rights as
Stockholder. Subject to the terms and conditions of the
Plan, each Holder of Performance Stock or Performance Unit Award
shall have all the rights of a stockholder with respect to the
shares of Stock included in the Award during any period in which
such shares of Stock are subject to forfeiture and restrictions
on transfer, including without limitation, the right to vote
such shares of Stock, if unrestricted shares of Stock of the
same class have the right to vote. Dividends paid with respect
to Performance Stock Awards in cash or property other than
shares of Stock or rights to acquire shares of Stock shall be
paid to the Holder currently. Dividends paid in shares of Stock
or rights to acquire shares of Stock shall be added to and
become a part of the Performance Stock Award.

     
9.3     Increases
Prohibited. None of the Committee or the Board of the
Company may increase the amount of compensation payable under a
Performance Stock or Performance Unit Award. If the time at
which a Performance Stock or Performance Unit Award will vest is
accelerated for any reason, the number of shares of Stock
subject to the Performance Stock or Performance Unit Award shall
be reduced pursuant to Department of Treasury Regulation
section 1.162-27(e)(2)(iii) to reasonably reflect the time
value of money.

ARTICLE X

CASH-BASED AWARDS AND OTHER STOCK-BASED AWARDS

     
10.1     Authority to
Grant Cash-Based Awards. Subject to the terms and provisions
of the Plan, the Committee, at any time, and from time to time,
may grant Cash-Based Awards under the Plan to Employees in such
amounts and upon such terms, including the achievement of
specific performance goals, as the Committee shall determine.

     
10.2     Authority to
Grant Other Stock-Based Awards. The Committee may grant
other types of equity-based or equity-related Awards not
otherwise described by the terms and provisions of the Plan
(including the grant or offer for sale of unrestricted shares of
Stock) in such amounts and subject to such terms and conditions,
as the Committee shall determine. Such Awards may involve the
transfer of actual shares of Stock to Holders, or payment in
cash or otherwise of amounts based on the value of shares of
Stock and may include, without limitation, Awards designed to
comply with or take advantage of the applicable local laws of
jurisdictions other than the United States.

     
10.3     Value of
Cash-Based and Other Stock-Based Awards. Each Cash-Based
Award shall specify a payment amount or payment range as
determined by the Committee. Each Other Stock-Based Award shall
be expressed in terms of shares of Stock or units based on
shares of Stock, as determined by the Committee. The Committee
may establish performance goals in its discretion for Cash-Based
Awards and Other Stock-Based Awards. If the Committee exercises
its discretion to establish performance goals, the number and/or
value of Cash-Based Awards or Other Stock-Based Awards that will
be paid out to the Holder will depend on the extent to which the
performance goals are met.

     
10.4     Payment of
Cash-Based Awards and Other Stock-Based Awards. Payment, if
any, with respect to a Cash-Based Award or an Other Stock-Based
Award shall be made in accordance with the terms of the Award,
in cash or shares of Stock as the Committee determines.

     
10.5     Termination
of Employment. The Committee shall determine the extent to
which a grantee’s rights with respect to Cash-Based Awards
and Other Stock-Based Awards shall be affected by the
grantee’s Termination of Employment. Such provisions shall
be determined in the sole discretion of the Committee and need
not be uniform among all Awards of Cash-Based Awards and Other
Stock-Based Awards issued pursuant to the Plan.

16

 

     
10.6     Nontransferability.
Except as otherwise determined by the Committee, neither
Cash-Based Awards nor Other Stock-Based Awards may be sold,
transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and
distribution. Further, except as otherwise provided by the
Committee, a Holder’s rights under the Plan, if
exercisable, shall be exercisable during his or her lifetime
only by such Holder.

ARTICLE XI

SUBSTITUTION AWARDS

     
Awards may be granted under the Plan from time to
time in substitution for stock options and other awards held by
employees of other corporations who are about to become
Employees, or whose employer is about to become a parent or
subsidiary corporation as contemplated in Section 3.1,
conditioned in the case of an Incentive Stock Option upon the
employee becoming an employee of the Company or a parent or
subsidiary corporation of the Company, as the result of a merger
of consolidation of the Company with another corporation, or the
acquisition by the Company of substantially all the assets of
another corporation, or the acquisition by the Company of at
least 50 percent (50%) of the issued and outstanding stock
of another corporation as the result of which it becomes a
subsidiary of the Company. The terms and conditions of the
substitute Awards so granted may vary from the terms and
conditions set forth in the Plan to such extent as the Board at
the time of grant may deem appropriate to conform, in whole or
in part, to the provisions of the Award in substitution for
which they are granted, but with respect to Options that are
Incentive Stock Options, no such variation shall be such as to
affect the status of any such substitute Option as an incentive
stock option under section 422 of the Code.

ARTICLE XII

ADMINISTRATION

     
12.1     Awards.
The Plan shall be administered by the Committee or, in the
absence of the Committee, the Plan shall be administered by the
Board. The members of the Committee shall serve at the
discretion of the Board. The Committee shall have full and
exclusive power and authority to administer the Plan and to take
all actions that the Plan expressly contemplates or are
necessary or appropriate in connection with the administration
of the Plan with respect to Awards granted under the Plan.

     
12.2     Authority of
the Committee. The Committee shall have full and exclusive
power to interpret and apply the terms and provisions of the
Plan and Awards made under the Plan, and to adopt such rules,
regulations and guidelines for implementing the Plan as the
Committee may deem necessary or proper, all of which powers
shall be exercised in the best interests of the Company and in
keeping with the objectives of the Plan. A majority of the
members of the Committee shall constitute a quorum for the
transaction of business, and the vote of a majority of those
members present at any meeting shall decide any question brought
before that meeting. Any decision or determination reduced to
writing and signed by a majority of the members shall be as
effective as if it had been made by a majority vote at a meeting
properly called and held. All questions of interpretation and
application of the Plan, or as to award granted under the Plan,
shall be subject to the determination, which shall be final and
binding, of a majority of the whole Committee. When appropriate,
the Plan shall be administered in order to qualify certain of
the Options granted hereunder as Incentive Stock Options. No
member of the Committee shall be liable for any act or omission
of any other member of the Committee or for any act or omission
on his own part, including but not limited to the exercise of
any power or discretion given to him under the Plan, except
those resulting from his own gross negligence or willful
misconduct. In carrying out its authority under the Plan, the
Committee shall have full and final authority and discretion,
including but not limited to the following rights, powers and
authorities, to:

		
	 	     
    (a) determine the persons to whom and the
    time or times at which Awards will be made;
    
	 
	 	     
    (b) determine the number and exercise price
    of shares of Stock covered in each Award, subject to the terms
    and provisions of the Plan;
    

17

 

		
	 	     
    (c) determine the terms, provisions and
    conditions of each Award, which need not be identical and need
    not match the default terms set forth in the Plan;
    
	 
	 	     
    (d) accelerate the time at which any
    outstanding Award will vest;
    
	 
	 	     
    (e) prescribe, amend and rescind rules and
    regulations relating to administration of the Plan; and
    
	 
	 	     
    (f) make all other determinations and take
    all other actions deemed necessary, appropriate or advisable for
    the proper administration of the Plan.
    

     
The Committee may make an Award to an individual
who the Company expects to become an Employee of the Company or
any of its Affiliates within six (6) months after the date
of grant of the Award, with the Award being subject to and
conditioned on the individual actually becoming an Employee
within that time period and subject to other terms and
conditions as the Committee may establish. The Committee may
correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Award to a Holder in the
manner and to the extent the Committee deems necessary or
desirable to further the Plan’s objectives. Further, the
Committee shall make all other determinations that may be
necessary or advisable for the administration of the Plan. As
permitted by law and the terms and provisions of the Plan, the
Committee may delegate its authority as identified in
Section 12.3.

     
The actions of the Committee in exercising all of
the rights, powers, and authorities set out in this
Article XII and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be
final, conclusive and binding on all persons. The Committee may
employ attorneys, consultants, accountants, agents, and other
persons, any of whom may be an Employee, and the Committee, the
Company, and its officers and Board shall be entitled to rely
upon the advice, opinions, or valuations of any such persons.

     
12.3     Decisions
Binding. All determinations and decisions made by the
Committee and the Board pursuant to the provisions of the Plan
and all related orders and resolutions of the Committee and the
Board shall be final, conclusive and binding on all persons,
including the Company, its stockholders, Employees, Holders and
the estates and beneficiaries of Employees and Holders.

     
12.4     No
Liability. Under no circumstances shall the Company, the
Board or the Committee incur liability for any indirect,
incidental, consequential or special damages (including lost
profits) of any form incurred by any person, whether or not
foreseeable and regardless of the form of the act in which such
a claim may be brought, with respect to the Plan or the
Company’s or the Committee’s roles in connection with
the Plan.

ARTICLE XIII

AMENDMENT OR TERMINATION OF PLAN

     
13.1     Amendment,
Modification, Suspension, and Termination. Subject to
Section 13.2 the Committee may, at any time and from time
to time, alter, amend, modify, suspend, or terminate the Plan
and any Award Agreement in whole or in part; provided, however,
that, without the prior approval of the Company’s
stockholders and except as provided in Section 4.5, the
Committee shall not directly or indirectly lower the exercise
price of a previously granted Option or the grant price of a
previously granted SAR issued under the Plan, and no amendment
of the Plan shall be made without stockholder approval if
stockholder approval is required by applicable law or stock
exchange rules.

     
13.2     Awards
Previously Granted. Notwithstanding any other provision of
the Plan to the contrary, no termination, amendment, suspension,
or modification of the Plan or an Award Agreement shall
adversely affect in any material way any Award previously
granted under the Plan, without the written consent of the
Holder holding such Award.

18

 

ARTICLE XIV

MISCELLANEOUS

     
14.1     Unfunded
Plan/ No Establishment of a Trust Fund. Holders shall have
no right, title, or interest whatsoever in or to any investments
that the Company or any of its Affiliates may make to aid in
meeting obligations under the Plan. Nothing contained in the
Plan, and no action taken pursuant to its provisions, shall
create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any Holder,
beneficiary, legal representative, or any other person. To the
extent that any person acquires a right to receive payments from
the Company under the Plan, such right shall be no greater than
the right of an unsecured general creditor of the Company. All
payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be
established and no segregation of assets shall be made to assure
payment of such amounts, except as expressly set forth in the
Plan. No property shall be set aside nor shall a trust fund of
any kind be established to secure the rights of any Holder under
the Plan. All Holders shall at all times rely solely upon the
general credit of the Company for the payment of any benefit
which becomes payable under the Plan. The Plan is not intended
to be subject to the Employee Retirement Income Security Act of
1974, as amended.

     
14.2     No
Employment Obligation. The granting of any Award shall not
constitute an employment contract, express or implied, nor
impose upon the Company or any Affiliate any obligation to
employ or continue to employ, or utilize the services of, any
Holder. The right of the Company or any Affiliate to terminate
the employment of any person shall not be diminished or affected
by reason of the fact that an Award has been granted to him, and
nothing in the Plan or an Award Agreement shall interfere with
or limit in any way the right of the Company or its Affiliates
to terminate any Holder’s employment at any time or for any
reason not prohibited by law.

     
14.3     Tax
Withholding. The Company or any Affiliate shall be entitled
to deduct from other compensation payable to each Holder any
sums required by federal, state or local tax law to be withheld
with respect to the vesting or exercise of an Award or lapse of
restrictions on an Award. In the alternative, the Company may
require the Holder (or other person validly exercising the
Award) to pay such sums for taxes directly to the Company or any
Affiliate in cash or by check within ten days after the date of
vesting, exercise or lapse of restrictions. In the discretion of
the Committee, and with the consent of the Holder, the Company
may reduce the number of shares of Stock issued to the Holder
upon such Holder’s exercise of an Option to satisfy the tax
withholding obligations of the Company or an Affiliate; provided
that the Fair Market Value of the shares of Stock held back
shall not exceed the Company’s or the Affiliate’s
minimum statutory withholding tax obligations. The Committee
may, in its discretion, permit a Holder to satisfy any minimum
tax withholding obligations arising upon the vesting of
Restricted Stock by delivering to the Holder of the Restricted
Stock Award a reduced number of shares of Stock in the manner
specified herein. If permitted by the Committee and acceptable
to the Holder, at the time of vesting of shares of Restricted
Stock, the Company shall (a) calculate the amount of the
Company’s or an Affiliate’s minimum statutory tax
withholding obligation on the assumption that all such shares of
vested Restricted Stock are made available for delivery,
(b) reduce the number of such shares of Stock made
available for delivery so that the Fair Market Value of the
shares of Stock withheld on the vesting date approximates the
minimum amount of tax the Company or an Affiliate is obliged to
withhold and (c) in lieu of the withheld shares of Stock,
remit cash to the United States Treasury and other applicable
governmental authorities, on behalf of the Holder, in the amount
of the minimum withholding tax due. The Company shall withhold
only whole shares of Stock to satisfy its minimum withholding
obligation. Where the Fair Market Value of the withheld shares
of Stock does not equal the Company’s minimum withholding
tax obligation, the Company shall withhold shares of Stock with
a Fair Market Value slightly less than the amount of its minimum
withholding obligation and the Holder must satisfy the remaining
minimum withholding obligation in some other manner permitted
under this Section 14.3. The withheld shares of Stock not
made available for delivery by the Company shall be retained as
treasury shares or will be cancelled and, in either case, the
Holder’s right, title and interest in such shares of Stock
shall terminate. The Company shall have no obligation upon
vesting or exercise of any Award or lapse of restrictions on
Restricted Stock until the Company or an Affiliate has received
payment sufficient to cover all minimum tax withholding amounts
due with respect to that vesting, exercise or lapse of

19

 

restrictions. Neither the Company nor any
Affiliate shall be obligated to advise a Holder of the existence
of the tax or the amount which it will be required to withhold.

     
14.4     Written
Agreement. Each Award shall be embodied in a written
agreement or statement which shall be subject to the terms and
conditions of the Plan. The Award Agreement shall be signed by a
member of the Committee on behalf of the Committee and the
Company or by an executive officer of the Company, other than
the Holder, on behalf of the Company, and may be signed by the
Holder to the extent required by the Committee. The Award
Agreement may contain any other provisions that the Committee in
its discretion shall deem advisable which are not inconsistent
with the terms and provisions of the Plan.

     
14.5     Indemnification
of the Committee. The Company shall indemnify each present
and future member of the Committee against, and each member of
the Committee shall be entitled without further action on his or
her part to indemnity from the Company for, all expenses
(including attorney’s fees, the amount of judgments and the
amount of approved settlements made with a view to the
curtailment of costs of litigation, other than amounts paid to
the Company itself) reasonably incurred by such member in
connection with or arising out of any action, suit or proceeding
in which such member may be involved by reason of such member
being or having been a member of the Committee, whether or not
he or she continues to be a member of the Committee at the time
of incurring the expenses, including, without limitation,
matters as to which such member shall be finally adjudged in any
action, suit or proceeding to have been negligent in the
performance of such member’s duty as a member of the
Committee. However, this indemnity shall not include any
expenses incurred by any member of the Committee in respect of
matters as to which such member shall be finally adjudged in any
action, suit or proceeding to have been guilty of gross
negligence or willful misconduct in the performance of his duty
as a member of the Committee. In addition, no right of
indemnification under the Plan shall be available to or
enforceable by any member of the Committee unless, within
60 days after institution of any action, suit or
proceeding, such member shall have offered the Company, in
writing, the opportunity to handle and defend same at its own
expense. This right of indemnification shall inure to the
benefit of the heirs, executors or administrators of each member
of the Committee and shall be in addition to all other rights to
which a member of the Committee may be entitled as a matter of
law, contract or otherwise.

     
14.6     Gender and
Number. If the context requires, words of one gender when
used in the Plan shall include the other and words used in the
singular or plural shall include the other.

     
14.7     Severability.
In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be
construed and enforced as if the illegal or invalid provision
had not been included.

     
14.8     Headings.
Headings of Articles and Sections are included for convenience
of reference only and do not constitute part of the Plan and
shall not be used in construing the terms and provisions of the
Plan.

     
14.9     Other
Compensation Plans. The adoption of the Plan shall not
affect any other option, incentive or other compensation or
benefit plans in effect for the Company or any Affiliate, nor
shall the Plan preclude the Company from establishing any other
forms of incentive compensation arrangements for Employees.

     
14.10     Other
Awards. The grant of an Award shall not confer upon the
Holder the right to receive any future or other Awards under the
Plan, whether or not Awards may be granted to similarly situated
Holders, or the right to receive future Awards upon the same
terms or conditions as previously granted.

     
14.11     Successors.
All obligations of the Company under the Plan with respect to
Awards granted hereunder shall be binding on any successor to
the Company, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation,
or otherwise, of all or substantially all of the business and/or
assets of the Company.

     
14.12     Law
Limitations/ Governmental Approvals. The granting of Awards
and the issuance of Shares under the Plan shall be subject to
all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities
exchanges as may be required.

20

 

     
14.13     Delivery of
Title. The Company shall have no obligation to issue or
deliver evidence of title for shares of Stock issued under the
Plan prior to:

		
	 	     
    (a) obtaining any approvals from
    governmental agencies that the Company determines are necessary
    or advisable; and
    
	 
	 	     
    (b) completion of any registration or other
    qualification of the Stock under any applicable national or
    foreign law or ruling of any governmental body that the Company
    determines to be necessary or advisable.
    

     
14.14     Inability
to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any shares of Stock
hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such shares of Stock as to which
such requisite authority shall not have been obtained.

     
14.15     Investment
Representations. The Committee may require any person
receiving Stock pursuant to an Award under the Plan to represent
and warrant in writing that the person is acquiring the Shares
for investment and without any present intention to sell or
distribute such Stock.

     
14.16     Persons
Residing Outside of the United States. Notwithstanding any
provision of the Plan to the contrary, in order to comply with
the laws in other countries in which the TMW Group operates or
has Employees, the Committee, in its sole discretion, shall have
the power and authority to:

		
	 	     
    (a) determine which Affiliates shall be
    covered by the Plan;
    
	 
	 	     
    (b) determine which persons employed outside
    the United States are eligible to participate in the Plan;
    
	 
	 	     
    (c) amend or vary the terms and provisions
    of the Plan and the terms and conditions of any Award granted to
    persons who reside outside the United States;
    
	 
	 	     
    (d) establish subplans and modify exercise
    procedures and other terms and procedures to the extent such
    actions may be necessary or advisable — any subplans
    and modifications to Plan terms and procedures established under
    this Section 14.16 by the Committee shall be attached to
    the Plan document as Appendices; and
    
	 
	 	     
    (e) take any action, before or after an
    Award is made, that it deems advisable to obtain or comply with
    any necessary local government regulatory exemptions or
    approvals.
    

     
Notwithstanding the above, the Committee may not
take any actions hereunder, and no Awards shall be granted, that
would violate the Exchange Act, the Code, any securities law or
governing statute or any other applicable law.

     
14.17     No
Fractional Shares. No fractional shares of Stock shall be
issued or delivered pursuant to the Plan or any Award. The
Committee shall determine whether cash, additional Awards, or
other property shall be issued or paid in lieu of fractional
shares of Stock or whether such fractional shares or any rights
thereto shall be forfeited or otherwise eliminated.

     
14.18     Arbitration
of Disputes. Any controversy arising out of or relating to
the Plan or an Option Agreement shall be resolved by arbitration
conducted pursuant to the arbitration rules of the American
Arbitration Association. The arbitration shall be final and
binding on the parties.

     
14.19     Governing
Law. The provisions of the Plan and the rights of all
persons claiming thereunder shall be construed, administered and
governed under the laws of the State of Texas.

21

 

STOCK OPTION AGREEMENT

(Non-Statutory Stock Option)

     This STOCK OPTION AGREEMENT (this “Agreement”) is effective ___(the “Date of
Grant”), between THE MEN’S WEARHOUSE, INC., a Texas corporation (the “Company”), and
___(“Employee”).

WITNESSETH:

     WHEREAS, the Board of Directors of the Company has adopted, and the shareholders of the
Company have approved, The Men’s Wearhouse, Inc. 1996 Long Term Incentive Plan (the “Plan”);

     WHEREAS, the Company considers that its interests will be served by granting Employee an
option to purchase shares of common stock of the Company as an inducement for his continued and
effective performance of services to the Company;

     NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereby agree as follows:

	 	1.  	Subject to the terms and conditions set forth in this Agreement and in the
Plan, which is hereby incorporated herein by reference, the Company hereby grants to
Employee a Non-Statutory Stock Option (the “Option”) to purchase ___shares of the
common stock, $.01 par value, of the Company at a price of $___per share (The
“Option Price”).
	 
	 	2.  	The Option may be exercised in whole or in part as follows:

	 	(a)  	The Option may not be exercised until Employee has completed
one-year of continuous employment with the Company or any subsidiary or
wholly-owned affiliate of the Company following the Date of Grant;

	 	 	 	 	 
	Exercise

Date
	 	Shares Available

to Exercise
	 	Vesting

Percentage

	 	(b)  	To the extent not exercised, installments shall be cumulative
and may be exercised in whole or in part until expires on the tenth anniversary
of the Date of Grant.

But in no event shall the option be exercisable after the tenth anniversary of the Date of Grant.

	 	3.  	Employee may exercise the Option by delivering to the Company a written notice
stating (i) that such optionee wishes to exercise such Option on the date such
notice is so delivered, (ii) the number of shares of stock with respect to which the
option is to be exercised and (iii) the address to which the certificate
representing

 

 

	 	   	such shares of stock should be mailed. In order to be effective, such
written notice shall be accompanied by (i) payment of the Option Price of such
 shares of stock and (ii) payment of an amount of money necessary to satisfy any
withholding tax liability that may result from the exercise of such Option. Each
such payment shall be made by cashier’s check drawn on a national banking
association and payable to the order of the Company in United States dollars.

	 	4.  	If, prior to the exercise of the Option in whole or in part, the Company
subdivides or combines its stock into a greater or small number of shares or
distributes a stock dividend or reclassifies its stock, there shall be deliverable to
Employee, on the exercise of the Option, in lieu of each share of stock as to which the
Option is exercisable, but for the same aggregate Option Price, such number of
additional or new shares as are the equivalent substitute for the present shares
covered by the Option, all as set forth in Paragraph 16 of the Plan.
	 
	 	5.  	The Option granted Employee under this Agreement shall not be transferable or
assignable by Employee other than by will or the laws of descent and distribution, and
shall be exercisable during Employee’s lifetime only by him.
	 
	 	6.  	The Option shall not be exercisable until (a) the effective registration under
the Securities Act of 1933 as amended (the “Act”), or the shares to be received
pursuant to this Agreement (unless in the opinion of counsel for the Company such
offering is exempt from registration under the act); and (b) compliance with all other
applicable laws.
	 
	 	7.  	This Agreement may not be modified or terminated except by an agreement in
writing signed by the party against whom enforcement of any such modification or
termination is sought.
	 
	 	8.  	The grant of the Option imposes no obligation on the Company to employ Employee
for any period.
	 
	 	9.  	Employee shall not have any rights as a shareholder with respect to any shares
covered by the Option until the date of issuance of the stock certificate or
certificates to him for such shares following his exercise of the Option, in whole or
in part, pursuant to its terms and conditions and payment for the shares. No
adjustment shall be made for dividends or other rights for which the record date is
prior to the date such certificate or certificates are issued.
	 
	 	10.  	If Employee is an officer or “affiliate” of the Company (as such term is
defined under the Act), Director consents to the placing of the certificate for any
 shares acquired upon exercise of the Option of an appropriate legend restricting resale
or other transfer of such shares, except in accordance with the Act and all applicable
rules thereunder.
	 
	 	11.  	In the event of any difference of opinion between Employee and the Company
concerning the meaning or effect of the Plan, such difference shall be resolved by the
Committee referred to in Paragraph 2 of the Plan.

- 2 -

 

	12.  	The validity, construction and performance of this Agreement shall be governed
by the laws of the State of Texas. The invalidity of any provision of this Agreement
shall not affect the validity of any other provision.
	 
	13.  	All offers, notices, demands, requests, acceptances or other communications
hereunder shall be in writing and shall be deemed to have been duly made or given if
mailed by registered or certified mail, return receipt requested, to the address
reflected below or to such other address as either party may hereafter designate in
writing to the other:

If to the Company:

The Men’s Wearhouse, Inc.

5803 Glenmont Drive

Houston, TX 77081-1701

Attention: Gary G. Ckodre

If to Employer:

	14.  	This Agreement shall, except as herein stated to the contrary, inure to the
benefit of and be binding upon the legal representatives, “successors” and assigns of
the parties hereto.

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year
first above written.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	THE MEN’S WEARHOUSE, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	 
	 

- 3 -

 

RESTRICTED STOCK AWARD AGREEMENT

The Men’s Wearhouse, Inc.

1996 Long-Term Incentive Plan

     This Restricted Stock Award Agreement (the “Agreement”) is made by and between The
Men’s Wearhouse, Inc., a Texas corporation, (the
“Company”) and
_________(the
“Employee”) effective as of the
______day of ___,
20___( the “Grant Date”),
pursuant to The Men’s Wearhouse, Inc. 1996 Long-Term Incentive Plan, as amended and restated (the
“Plan”), which is incorporated by reference herein in its entirety.

Whereas, the Company desires to grant to the Employee the shares of equity securities
specified herein (the “Shares”), subject to the terms and conditions of this Agreement; and

Whereas, the Employee desires to have the opportunity to hold Shares subject to the terms
and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

	1.  	Definitions. For purposes of this Agreement, the following terms shall have the meanings
indicated:

	 	(a)  	“Forfeiture Restrictions” shall mean any prohibitions and restrictions set forth herein with
respect to the sale or other disposition of Shares issued to the Employee hereunder and the
obligation to forfeit and surrender such shares to the Company.
	 
	 	(b)  	“Restricted Shares” shall mean the Shares that are subject to the Forfeiture Restrictions under
this Agreement.

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to
such terms in the Plan.

	2.  	Grant of Restricted Shares. Effective as of the Grant Date, the Company shall cause to be
issued in the Employee’s name the following Shares as Restricted Shares: ___shares
of the Company’s common stock, $.01 par value. The Company shall cause certificates
evidencing the Restricted Shares, and any shares of Stock or rights to acquire shares of Stock
distributed by the Company in respect of Restricted Shares during any Period of Restriction
(the “Retained Distributions”), to be issued in the Employee’s name. During the Period of
Restriction such certificates shall bear a restrictive legend to the effect that ownership of
such Restricted Shares (and any Retained Distributions), and the enjoyment of all rights
appurtenant thereto, are subject to the restrictions, terms, and conditions provided in the
Plan and this Agreement. The Employee shall have the right to vote the Restricted Shares
awarded to the Employee and to receive and retain all regular dividends paid in cash or
property (other than Retained

 

 

	   	Distributions), and to exercise all other rights, powers and privileges of a holder of
Shares, with respect to such Restricted Shares, with the exception that (a) the Employee
shall not be entitled to delivery of the stock certificate or certificates representing such
Restricted Shares until the Forfeiture Restrictions applicable thereto shall have expired,
(b) the Company shall retain custody of all Retained Distributions made or declared with
respect to the Restricted Shares (and such Retained Distributions shall be subject to the
same restrictions, terms and conditions as are applicable to the Restricted Shares) until
such time, if ever, as the Restricted Shares with respect to which such Retained
Distributions shall have been made, paid, or declared shall have become vested, and such
Retained Distributions shall not bear interest or be segregated in separate accounts and (c)
the Employee may not sell, assign, transfer, pledge, exchange, encumber, or dispose of the
Restricted Shares or any Retained Distributions during the Period of Restriction. Upon
issuance the shares shall be delivered to such depository as may be designated by the
Committee as a depository for safekeeping until the forfeiture of such Restricted Shares
occurs or the Forfeiture Restrictions lapse, together with stock powers or other instruments
of assignment, each endorsed in blank, which will permit transfer to the Company of all or
any portion of the Restricted Shares and any securities constituting Retained Distributions
which shall be forfeited in accordance with the Plan and this Agreement. In accepting the
award of Shares set forth in this Agreement the Employee accepts and agrees to be bound by
all the terms and conditions of the Plan and this Agreement.

	3.  	Transfer Restrictions. The Shares granted hereby may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or disposed of, to the extent
then subject to the Forfeiture Restrictions. Any such attempted sale, assignment, pledge,
exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement
shall be void and the Company shall not be bound thereby. Further, the Shares granted hereby
that are no longer subject to Forfeiture Restrictions may not be sold or otherwise disposed of
in any manner which would constitute a violation of any applicable federal or state securities
laws. The Employee also agrees (i) that the Company may refuse to cause the transfer of the
Shares to be registered on the applicable stock transfer records if such proposed transfer
would, in the opinion of counsel satisfactory to the Company, constitute a violation of any
applicable securities law and (ii) that the Company may give related instructions to the
transfer agent, if any, to stop registration of the transfer of the Shares.
	 
	4.  	Vesting. [To Be Determined by the Committee]
	 
	5.  	Capital Adjustments and Reorganizations. The existence of the Restricted Shares shall not
affect in any way the right or power of the Company or any company the stock of which is
awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization,
reorganization or other change in its capital structure or its business, engage in any merger
or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease,
exchange or otherwise dispose of all or any part of its assets or business, or engage in any
other corporate act or proceeding.

- 2 -

 

	6.  	Tax Withholding. To the extent that the receipt of the Restricted Shares or the lapse of any
Forfeiture Restrictions results in income to the Employee for federal, state or local income
or employment tax purposes with respect to which the Company has a withholding obligation, the
Employee shall deliver to the Company at the time of such receipt or lapse, as the case may
be, such amount of money as the Company may require to meet its obligation under applicable
tax laws or regulations, and, if the Employee fails to do so, the Company is authorized to
withhold from the Shares granted hereby or from any cash or stock remuneration then or
thereafter payable to the Employee in any capacity any tax required to be withheld by reason
of such resulting income.
	 
	7.  	Employment Relationship. For purposes of this Agreement, the Employee shall be considered to
be in the employment of the Company and its Affiliates as long as the Employee has an
employment relationship with the Company and its Affiliates. The Committee shall determine
any questions as to whether and when there has been a termination of such employment
relationship, and the cause of such termination, under the Plan and the Committee’s
determination shall be final and binding on all persons.
	 
	8.  	Section 83(b) Election. The Employee shall not exercise the election permitted under section
83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Restricted Shares
without the written approval of the Chief Financial Officer of the Company. If the Chief
Financial Officer of the Company permits the election, the Employee shall timely pay the
Company the amount necessary to satisfy the Company’s attendant tax withholding obligations,
if any.
	 
	9.  	No Fractional Shares. All provisions of this Agreement concern whole Shares. If the
application of any provision hereunder would yield a fractional share, such fractional share
shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the
next whole share if it is 0.5 or more.
	 
	10.  	Not an Employment Agreement. This Agreement is not an employment agreement, and no provision
of this Agreement shall be construed or interpreted to create an employment relationship
between the Employee and the Company and its Affiliates or guarantee the right to remain
employed by the Company and its Affiliates for any specified term.
	 
	11.  	Legend. If the Employee is an officer or affiliate of the Company under the Securities Act
of 1933, the Employee consents to the placing on the certificate for the Shares of an
appropriate legend restricting resale or other transfer of the Shares except in accordance
with such Act and all applicable rules thereunder.
	 
	12.  	Notices. Any notice, instruction, authorization, request or demand required hereunder shall
be in writing, and shall be delivered either by personal delivery, by telegram, telex,
telecopy or similar facsimile means, by certified or registered mail, return receipt
requested, or by courier or delivery service, addressed to the Company at the then current
address of the Company’s Principal Corporate Office, and to the Employee at the Employee’s
residential address indicated beneath the Employee’s signature on the execution page of this
Agreement, or at such other address and number as a party shall have previously designated by
written notice given to the other party in the manner

- 3 -

 

	   	hereinabove set forth. Notices shall be deemed given when received, if sent by facsimile
means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt
of communications sent by facsimile means); and when delivered (or upon the date of
attempted delivery where delivery is refused), if hand-delivered, sent by express courier or
delivery service, or sent by certified or registered mail, return receipt requested.

	13.  	Amendment and Waiver. This Agreement may be amended, modified or superseded only by written
instrument executed by the Company and the Employee. Only a written instrument executed and
delivered by the party waiving compliance hereof shall make any waiver of the terms or
conditions. Any waiver granted by the Company shall be effective only if executed and
delivered by a duly authorized executive officer of the Company other than the Employee. The
failure of any party at any time or times to require performance of any provisions hereof
shall in no manner effect the right to enforce the same. No waiver by any party of any term
or condition, or the breach of any term or condition contained in this Agreement, in one or
more instances, shall be construed as a continuing waiver of any such condition or breach, a
waiver of any other condition, or the breach of any other term or condition.
	 
	14.  	Governing Law and Severability. This Agreement shall be governed by the laws of the State of
Texas without regard to its conflicts of law provisions. The invalidity of any provision of
this Agreement shall not affect any other provision of this Agreement, which shall remain in
full force and effect.
	 
	15.  	Successors and Assigns. Subject to the limitations which this Agreement imposes upon the
transferability of the Shares granted hereby, this Agreement shall bind, be enforceable by and
inure to the benefit of the Company and its successors and assigns, and to the Employee, the
Employee’s permitted assigns, executors, administrators, agents, legal and personal
representatives.
	 
	16.  	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original for all purposes but all of which taken together shall constitute but one
and the same instrument.

- 4 -

 

     In Witness Whereof, the Company has caused this Agreement to be duly executed by an
officer thereunto duly authorized, and the Employee has executed this Agreement, all effective as
of the date first above written.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	THE MEN’S WEARHOUSE, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	Address:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 

 

 

DEFERRED STOCK UNIT AWARD AGREEMENT

The Men’s Wearhouse, Inc.

1996 Long-Term Incentive Plan

     This Deferred Stock Unit Award Agreement (the “Agreement”) is made by and between The
Men’s Wearhouse, Inc., a Texas corporation (the “Company”), and ___
(the “Employee”) effective as of the
___day of ___, 20___( the
“Grant Date”),
pursuant to The Men’s Wearhouse, Inc. 1996 Long-Term Incentive Plan, as amended and restated (the
“Plan”), which is incorporated by reference herein in its entirety.

Whereas, the Company desires to grant to the Employee the Deferred Stock Units specified
herein, subject to the terms and conditions of this Agreement; and

Whereas, the Employee desires to have the opportunity to receive from the Company an award
of Deferred Stock Units subject to the terms and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

	1.  	Definitions. For purposes of this Agreement, the following terms shall have the meanings
indicated:

	 	(a)  	“Common Stock” shall mean the common stock of the Company, $.01 par value per share (or such
other par value as may be designated by act of the Company’s shareholders).
	 
	 	(b)  	“Forfeiture Restrictions” shall mean the prohibitions and restrictions set forth herein with
respect to the sale or other disposition of the Deferred Stock Units issued to the Employee
hereunder and the obligation to forfeit and surrender such Deferred Stock Units to the Company.
	 
	 	(c)  	“Deferred Stock Unit” shall mean a Deferred Stock Unit issued under the Plan that is subject to
the Forfeiture Restrictions.

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to
such terms in the Plan.

	2.  	Grant of Deferred Stock Units. Effective as of the Grant Date, the Company hereby grants to
the Employee ______ Deferred Stock Units. In accepting the award of Deferred Stock Units
granted in this Agreement the Employee accepts and agrees to be bound by all the terms and
conditions of the Plan and this Agreement. Upon the lapse of the Forfeiture Restrictions
applicable to a Deferred Stock Unit that is awarded hereby, the Company shall issue to the
Employee one share of the Common Stock in exchange for such Deferred Stock Unit and thereafter
the Employee shall have no further rights with respect to such Deferred Stock Unit. The
Company shall cause to be delivered to the Employee in electronic or certificated form any
 shares of the Common Stock that are to

 

 

	   	be issued under the terms of this Agreement in exchange for Deferred Stock Units awarded
hereby, and such shares of the Common Stock shall be transferable by the Employee as
provided herein (except to the extent that any proposed transfer would, in the opinion of
counsel satisfactory to the Company, constitute a violation of applicable securities law).

	3.  	Deferred Stock Units Do Not Award Any Rights Of A Shareholder. The Employee shall not have
the voting rights or any of the other rights, powers or privileges of a holder of the Common
Stock with respect to the Deferred Stock Units that are awarded hereby. Only after a share of
the Common Stock is issued in exchange for a Deferred Stock Unit will the Employee have all of
the rights of a shareholder with respect to such share of Common Stock issued in exchange for
a Deferred Stock Unit.
	 
	4.  	Dividend Equivalent Payments. If during the period the Employee holds any Deferred Stock
Units granted under this Agreement the Company pays a dividend in cash with respect to the
outstanding shares of the Common Stock (a “Cash Dividend”), then the Company will pay in cash
to the Employee, as soon as administratively practicable after the payment of such Cash
Dividend, an amount equal to the product of (a) the Deferred Stock Units awarded hereby that
have not been forfeited to the Company or exchanged by the Company for shares of the Common
Stock and (b) the amount of the Cash Dividend paid per share of the Common Stock. If during
the period the Employee holds any Deferred Stock Units granted under this Agreement the
Company pays a dividend in shares of the Common Stock with respect to the outstanding shares
of the Common Stock, then the Company will increase the Deferred Stock Units awarded hereby
that have not then been forfeited to or exchanged by the Company for shares of the Common
Stock by an amount equal to the product of (a) the Deferred Stock Units awarded hereby that
have not been forfeited to the Company or exchanged by the Company for shares of the Common
Stock and (b) the number of shares of the Common Stock paid by the Company per share of the
Common Stock (collectively, the “Stock Dividend Deferred Stock Units”). Each Stock Dividend
Deferred Stock Unit will be subject to same Forfeiture Restrictions and other restrictions,
limitations and conditions applicable to the Deferred Stock Unit for which such Stock Dividend
Deferred Stock Unit was awarded and will be exchanged for shares of the Common Stock at the
same time and on the same basis as such Deferred Stock Unit.
	 
	5.  	Transfer Restrictions. The Deferred Stock Units granted hereby may not be sold, assigned,
pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other
than by will or the applicable laws of descent and distribution). Any such attempted sale,
assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation
of this Agreement shall be void and the Company shall not be bound thereby. Further, any
 shares of the Common Stock issued to the Employee in exchange for Deferred Stock Units awarded
hereby may not be sold or otherwise disposed of in any manner that would constitute a
violation of any applicable securities laws. The Employee also agree that (a) the Company may
refuse to cause the transfer of any such shares of the Common Stock to be registered on the
stock register of the Company if such proposed transfer would in the opinion of counsel
satisfactory to the Company constitute a violation of any applicable securities law and (b)
the Company

- 2 -

 

	   	may give related instructions to the transfer agent, if any, to stop registration of the
transfer of such shares of the Common Stock. The shares of Common Stock that may be issued
under the Plan are registered with the Securities and Exchange Commission under a
Registration Statement on Form S-8. A Prospectus describing the Plan and the shares of
Common Stock is available from the Company.

	6.  	Vesting. [To Be Determined By the Committee]
	 
	7.  	Capital Adjustments and Reorganizations. The existence of the Deferred Stock Units shall not
affect in any way the right or power of the Company or any company the stock of which is
awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization,
reorganization or other change in its capital structure or its business, engage in any merger
or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease,
exchange or otherwise dispose of all or any part of its assets or business, or engage in any
other corporate act or proceeding.
	 
	8.  	Tax Withholding. To the extent that the receipt of the Deferred Stock Units, any payment in
cash or the lapse of any Forfeiture Restrictions results in income to the Employee for
federal, state or local income, employment or other tax purposes with respect to which the
Company has a withholding obligation, the Employee shall deliver to the Company at the time of
such receipt or lapse, as the case may be, such amount of money as the Company may require to
meet its obligation under applicable tax laws or regulations, and, if the Employee fails to do
so, the Company is authorized to withhold from the shares of Common Stock issued in exchange
for the Deferred Stock Units, any payment in cash under the Agreement or from any cash or
stock remuneration then or thereafter payable to the Employee in any capacity any tax required
to be withheld by reason of such resulting income, including (without limitation) shares of
the Common Stock sufficient to satisfy the withholding obligation based on the Fair Market
Value of the Common Stock for the trading day immediately preceding the date that the
withholding obligation arises.
	 
	9.  	Nontransferability. The Agreement is not transferable by the Employee otherwise than by will
or by the laws of descent and distribution.
	 
	10.  	Employment Relationship. For purposes of this Agreement, the Employee shall be considered to
be in the employment of the Company and its Affiliates as long as the Employee has an
employment relationship with the Company and its Affiliates. The Committee shall determine
any questions as to whether and when there has been a termination of such employment
relationship, and the cause of such termination, under the Plan and the Committee’s
determination shall be final and binding on all persons.
	 
	11.  	No Fractional Shares. All provisions of this Agreement concern whole Shares. If the
application of any provision hereunder would yield a fractional share, such fractional share
shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the
next whole share if it is 0.5 or more.
	 
	12.  	Not an Employment Agreement. This Agreement is not an employment agreement, and no provision
of this Agreement shall be construed or interpreted to create an employment

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	   	relationship between the Employee and the Company and its Affiliates or guarantee the right
to remain employed by the Company and its Affiliates for any specified term.

	13.  	Legend. If the Employee is an officer or affiliate of the Company under the Securities Act
of 1933, the Employee consents to the placing on the certificate for any shares of Common
Stock issued under the Agreement in certificated form an appropriate legend restricting resale
or other transfer of such shares except in accordance with such act and all applicable rules
thereunder.
	 
	14.  	Notices. Any notice, instruction, authorization, request or demand required hereunder shall
be in writing, and shall be delivered either by personal delivery, by telegram, telex,
telecopy or similar facsimile means, by certified or registered mail, return receipt
requested, or by courier or delivery service, addressed to the Company at the then current
address of the Company’s Principal Corporate Office, and to the Employee at the Employee’s
residential address indicated beneath the Employee’s signature on the execution page of this
Agreement, or at such other address and number as a party shall have previously designated by
written notice given to the other party in the manner hereinabove set forth. Notices shall be
deemed given when received, if sent by facsimile means (confirmation of such receipt by
confirmed facsimile transmission being deemed receipt of communications sent by facsimile
means); and when delivered (or upon the date of attempted delivery where delivery is refused),
if hand-delivered, sent by courier or delivery service, or sent by certified or registered
mail, return receipt requested.
	 
	15.  	Amendment and Waiver. This Agreement may be amended, modified or superseded only by written
instrument executed by the Company and the Employee. Only a written instrument executed and
delivered by the party waiving compliance hereof shall make any waiver of the terms or
conditions. Any waiver granted by the Company shall be effective only if executed and
delivered by a duly authorized executive officer of the Company other than the Employee. The
failure of any party at any time or times to require performance of any provisions hereof
shall in no manner effect the right to enforce the same. No waiver by any party of any term
or condition, or the breach of any term or condition contained in this Agreement, in one or
more instances, shall be construed as a continuing waiver of any such condition or breach, a
waiver of any other condition, or the breach of any other term or condition.
	 
	16.  	Governing Law and Severability. This Agreement shall be governed by the laws of the State of
Texas without regard to its conflicts of law provisions. The invalidity of any provision of
this Agreement shall not affect any other provision of this Agreement, which shall remain in
full force and effect.
	 
	17.  	Successors and Assigns. Subject to the limitations which this Agreement imposes upon the
transferability of the Deferred Stock Units granted hereby and any shares of the Common Stock
issued hereunder, this Agreement shall bind, be enforceable by and inure to the benefit of the
Company and its successors and assigns, and to the Employee, the Employee’s permitted assigns,
executors, administrators, agents, legal and personal representatives.

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	18.  	Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original for all purposes but all of which taken together shall constitute but one
and the same instrument.

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     In Witness Whereof, the Company has caused this Agreement to be duly executed by an
officer thereunto duly authorized, and the Employee has executed this Agreement, all effective as
of the date first above written.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	THE MEN’S WEARHOUSE, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 EMPLOYEE:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	Address:

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