Document:

EX-10.6

 Exhibit 10.6 
  

 
 RULES 

FOR THE 
 SUPERVISORY
BOARD 
 OF 

LYONDELLBASELL INDUSTRIES N.V. 
  

 

 CONTENTS 
  

					
	CLAUSE	  	PAGE	 
		
	 1. INTRODUCTION
	  	 	3	 
		
	 2. THE SUPERVISORY BOARD
	  	 	4	 
	 2.1 Responsibilities
	  	 	4	 
	 2.2 Composition and term
	  	 	5	 
	 2.3 Appointment and dismissal of Members
	  	 	5	 
	 2.4 Remuneration
	  	 	7	 
	 2.5 Majority and quorum
	  	 	7	 
	 2.6 Meetings
	  	 	7	 
		
	 3. CONFLICT OF INTERESTS
	  	 	8	 
		
	 4. CHAIRMAN AND MEMBERS
	  	 	8	 
	 4.1 General
	  	 	8	 
	 4.2 Tasks and responsibilities
	  	 	9	 
		
	 5. COMMITTEES
	  	 	9	 
		
	 6. GOVERNING LAW
	  	 	9	 

  
 2 

 RULES FOR THE 

SUPERVISORY BOARD 
 OF

 LYONDELLBASELL INDUSTRIES N.V. 
  

	1.	INTRODUCTION 

  

	1.1	Article 16, paragraph 3 of the Articles provides that the Supervisory Board may adopt rules governing its internal affairs. 

  

	1.2	No amendment shall be made to the Rules which adversely affects the rights of Access Industries (and its affiliates) arising from any contractual arrangements between Access or any of its affiliates and the Company
existing as of April 29, 2010 without the prior written approval of such party. 

  

	1.3	The Supervisory Board and each of its Members shall observe and comply with these Rules and action shall be taken by the Supervisory Board and its Members to ensure that each of the Members shall observe and comply with
the principles set out in these Rules. 

  

	1.4	These Rules are complementary to (i) the provisions regarding the Supervisory Board and its Members contained in applicable law and regulations, including, when applicable, the principles of good governance and
best practice provisions as contained in the Dutch Corporate Governance Code and the NYSE listing standards, (ii) the Articles and (iii) the rules pertaining to the relationship between the Supervisory Board and the Management Board,
contained in the rules governing the Management Board’s internal affairs. 

  

	1.5	In these Rules, the following expressions shall have the following respective meanings: 

Affiliate means, with respect to any person, any other person that, directly or indirectly, through one or more
intermediaries, controls, or is controlled by, or is under common control with, such person. For purposes of this definition, the terms “control,” “controlling,” “controlled by” and “under common control
with,” as used with respect to any person, means the possession, directly or indirectly, of the power to direct the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.

Articles means the articles of association of the Company. 

Chairman means the chairman of the Supervisory Board, as referred to in Article 16 paragraph 1 of the Articles. 

Clause means a clause of these Rules. 

Committee means any committee which the Supervisory Board may establish from time to time in accordance with Clause 5. 

  
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 Company means LyondellBasell Industries N.V. 

Deputy Secretary means the deputy secretary of the Supervisory Board, as referred to in Article 16 paragraph 1 of the Articles.

 General Meeting means the Company’s general meeting of shareholders. 

Management Board means the management board of the Company. 

Members means the members of the Supervisory Board and Member means anyone of them. 

Meeting means a meeting of the Supervisory Board. 

Nomination Agreement means that Amended and Restated Nomination Agreement, by and between the Company and AI International
Chemicals S.À R.L., a société à responsabilité limitée or limited liability company organized under the laws of Luxembourg, dated March 10, 2015. 

NYSE means the New York Stock Exchange. 

Rules means these rules governing the Supervisory Board’s internal affairs, including its annexes. 

Secretary means the secretary of the Supervisory Board, as referred to in Article 16 paragraph 1 of the Articles. 

Supervisory Board means the supervisory board of the Company. 

Vice Chairman means the deputy chairman of the Supervisory Board, as referred to in Article 16 paragraph 1 of the Articles. 

 

	2.	THE SUPERVISORY BOARD 

  

	2.1	Responsibilities 

 In addition to the responsibilities that follow from the law and the
Articles, the Members shall be collectively responsible for the supervision of the policy of the management board and of the general course of affairs of the Company and its associated enterprise. In the performance of its duties, the Supervisory
Board and each of its Members shall be guided by the interests of the Company and its associated enterprise. On an annual basis, the Supervisory Board shall review and adopt a five year strategic plan, an annual budget and business plan which shall
be proposed by the Management Board. 

  
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	2.2	Composition and term 

  

	2.2.1	The Supervisory Board shall, in its sole discretion, determine the size of the Supervisory Board in accordance with and in order to comply with (i) the Articles, (ii) the terms of the Nomination Agreement, and
(iii) applicable law or regulation, including the NYSE listing standards, provided that the Supervisory Board shall have no fewer than nine (9) and no more than twelve (12) Members unless required to effectuate one of the items
set forth in (i)-(iii) hereof. 

  

	2.2.2	The members of the Supervisory Board shall be nominated for election to one-year terms, beginning with the annual general meeting of shareholders in 2017. 

 

	2.2.3	The Members shall be natural persons. 

  

	2.2.4	The Supervisory Board shall appoint a Chairman and, if necessary, a Vice Chairman from its number. 

  

	2.2.5	The Supervisory Board shall appoint a Secretary and, if necessary, a Deputy Secretary whether or not from its number. 

  

	2.2.6	The Supervisory Board shall adopt a profile of its size and composition, taking account of the nature of the business, its activities and the desired expertise and background of the Members; provided that the
composition of the Supervisory Board shall comply with applicable listing standards and at least one member of the Supervisory Board who is deemed to be independent under NYSE Rule 303A.02 shall also be a “financial expert” pursuant to
Section 407 of the Sarbanes-Oxley Act of 2002. 

  

	2.3	Appointment and dismissal of Members 

  

	2.3.1	Except as provided in Clause 2.3.7 and Article 12.4 of the Articles, the Members are appointed by the General Meeting. The appointment of a Member nominated pursuant to the Nomination Agreement shall take place by way
of a binding nomination and shall be prepared by the Supervisory Board within three (3) months after the vacancy has arisen or as soon as practicable, in which event the Supervisory Board shall submit to the General Meeting the nomination
received by it in accordance with the terms of the Nomination Agreement. To the extent the nomination for any vacancy is not submitted to the Supervisory Board pursuant to the Nomination Agreement, the Supervisory Board shall provide notice to the
party having such nominations rights, and, no earlier than twenty (20) days after providing such notice and the continued failure by such party to identify the nominee, shall select an appropriate nominee based on candidates’
qualifications and profile, taking into due consideration the desired profile laid out in advance by the Supervisory Board in accordance with Clause 2.2.6, in which event the Supervisory Board shall submit a
non-binding nomination to the General Meeting. 

 A resolution by the General Meeting
on the proposal shall result in such person being appointed, unless the General Meeting renders the nomination non-binding by means of a resolution adopted by at least
two-thirds of the valid votes cast and the valid votes cast represent more than half of the Company’s issued capital. 

  
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 Notwithstanding anything in this Clause 2.3.1 to the contrary, the provisions relating to the
appointment of Members contained in the Nomination Agreement shall supplement the provisions of the Articles relating to the appointment of Members. 
  

	2.3.2	The binding nominations referred to in Clause 2.3.1 shall be made in accordance with article 2:142(3) of the Netherlands Civil Code and with due observance of Clause 2.5 and the terms and conditions agreed upon in the
Nomination Agreement. 

  

	2.3.3	Except with respect to Members appointed in accordance with Clause 2.3.7, and unless the General Meeting, on the proposal of the Supervisory Board, determines that a Member shall be appointed for a longer period, a
Member will be appointed for a maximum period of three (3) years, provided however that unless such Member has resigned at an earlier date, his term of office shall lapse at the end of the first annual General Meeting of shareholders, to be
held after lapse of his term of appointment. A Member may be re-appointed with due observance of the preceding sentence. There is no limit to the number of times a Member can be reappointed; provided,
however, a Member shall not be renominated following his 75th birthday. 

  

	2.3.4	The Supervisory Board may draw up a retirement schedule for the Members. Periodical resignation will take place per the date of the annual General Meeting of shareholders. 

 

	2.3.5	The Members are suspended and dismissed by the General Meeting in the manner as described in Article 12 paragraphs 5, 6 and 7 of the Articles. If a Member is suspended and the General Meeting does not resolve to dismiss
him or to terminate or continue the suspension within three (3) months from the date of suspension, the suspension shall lapse. A suspended Member shall be given an opportunity to account for his actions at the General Meeting and to be
assisted by an adviser in doing so. 

 A resolution to continue the suspension as referred to above may be adopted only once.
In such event the suspension may be continued for a maximum period of three (3) months commencing on the day the General Meeting has adopted the resolution to continue the suspension. If within the period of continued suspension the General
Meeting has not resolved either to dismiss such Member or to terminate the suspension, the suspension shall lapse. 
  

	2.3.6	In case the number of Members will be less than nine (9), the Supervisory Board will remain competent. 

  

	2.3.7	In the event a party is entitled to submit the nomination of a Member pursuant to the terms of the Nomination Agreement, the Supervisory Board shall, subject to applicable law and regulation, as soon as practicable
effect the appointment of such nominee in accordance with Article 12.4 of the Articles and Article 2:143 of the Civil Code, which appointment shall terminate on the date of the next General Meeting. 

  
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	2.4	Remuneration 

 Each Member shall be paid a fee at such rate as may from time to time be
determined by the Supervisory Board upon recommendation of the Nominating and Governance Committee provided that the aggregate of all fees so paid per annum to the Members shall not exceed the amount per annum decided by the General Meeting. 

 

	2.5	Majority and quorum 

  

	2.5.1	Each Member shall have the right to cast one vote in a Meeting. 

  

	2.5.2	The Supervisory Board shall pass resolutions by an absolute majority of the votes cast. Abstentions will be regarded as votes not cast. In the event of a tie vote, the proposal will have been rejected.

 In the event of a tie vote on persons, the resolution will be postponed until the next following Meeting provided that if
there is a tie vote again, no resolution will be passed. 
  

	2.5.3	The determination of the Chairman with regard to the results of a vote, and, where there has been a vote about a proposal which has not been put in writing, his determination as to the contents of the resolution passed,
shall be decisive. However, where the accuracy of the determination referred to in the previous sentence is contested promptly after it has been made, a new vote shall take place if so required by a majority of the votes or, where the first vote did
not take place by response to a roll call or in writing, if one person present with the right to vote so requires. The legal consequences of the original vote shall become void as a result of the new vote. The Chairman does not hold a casting vote.

  

	2.5.4	In order to hold a valid Supervisory Board Meeting a quorum constituting a majority of the number of Members holding office is required. 

 

	2.6	Meetings 

  

	2.6.1	The Supervisory Board will hold a Meeting whenever deemed desirable by the Chairman or the other Members. The Supervisory Board shall conduct at least four (4) regularly scheduled Meetings per year.

  

	2.6.2	The Chairman shall chair the meetings of the Supervisory Board. If the Chairman is absent, the Vice Chairman, if appointed, shall chair the Meeting. If no chairman has been appointed, the Member present at the Meeting
who has held that office longest shall chair the Meeting. If two or more Members have equal seniority, the eldest of them shall chair the Meeting. 

  

	2.6.3	A Member may be represented at a Meeting by a fellow Member, authorized in writing, only. 

  

	2.6.4	 The notice of the Meeting shall be given by the Chairman, or in his absence the Vice Chairman, or in the event no
Vice Chairman has been appointed, the Member referred to in 2.6.2, and shall set out an agenda identifying in reasonable detail the matters to be discussed at the meeting and shall be accompanied by copies of any relevant papers to be discussed at
the meeting. Any matter which is to be submitted to the Supervisory Board for a decision which is not identified in reasonable detail as aforesaid may, notwithstanding the foregoing, be

  
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decided upon at the applicable Meeting, unless any Member, acting reasonably, requests reasonable detail in which case the meeting shall be adjourned, for fourteen (14) days maximum in which
time the Member or Members having submitted the matter to the Supervisory Board shall supply reasonable detail to the others. 

  

	2.6.5	Meetings of the Supervisory Board generally shall be held in the United Kingdom. There shall be at least seven (7) days between the date on which notice is given to each of the Members and the date on which such
Meeting is held, unless the person giving notice of the Meeting determines a shorter notice period is necessary. 

  

	2.6.6	Minutes of the proceedings at the meetings will be kept by the Secretary. The minutes will be confirmed and signed by the Chairman and Secretary, or in their absence, by the persons who will have acted as chairman and
secretary, respectively, at the meeting. 

  

	3.	CONFLICTS OF INTEREST 

  

	3.1	A Member shall not participate in the decision-making process on a subject or transaction in relation to which he has a direct or indirect personal interest (including through his relationship with the entity that is
proposed to be a party to the transaction) which is in conflict with the interests of the Company and its associated enterprise. In the event that - as a result of such conflict of interest - no resolution of the Supervisory Board can be adopted in
respect of a certain subject or transaction, the General Meeting shall decide on the matter concerned. 

  

	3.2	Without prejudice to Clause 3.1, and subject to the Supervisory Board Director Confidentiality Policy, Members shall not have any duty to refrain, directly or indirectly, from (a) pursuing a corporate opportunity
in the same or similar business activities or lines of business in which the Company or any of its Affiliates now engages or proposes to engage or (b) otherwise competing with the Company or any of its Affiliates. The Members do not have any
duty to offer to the Company an opportunity to participate in, any business opportunity which may be a corporate opportunity for the Company or any of its Affiliates. 

 

	3.3	In the event that a Member acquires knowledge of a potential transaction or other business opportunity which may be a corporate opportunity for the Company or any of its Affiliates, such Member shall have no duty to
communicate or offer such transaction or other business opportunity to the Company or any of its Affiliates. 

  

	4.	CHAIRMAN AND MEMBERS 

  

	4.1	General 

  

	4.1.1	The Chairman and the Members are equally responsible for the supervision of the policy of the management board and of the general course of affairs of the Company and its associated enterprise. 

  
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	4.2	Tasks and Responsibilities 

  

	4.2.1	The Chairman shall act as chairman of the General Meeting. 

  

	4.2.2	If the Chairman is permanently incapacitated or prevented from acting, the Vice Chairman, or in the event no Vice Chairman has been appointed, the Member referred to in Clause 2.6.2 shall be temporarily charged with his
tasks. 

  

	5.	COMMITTEES 

  

	5.1	The Supervisory Board shall have the following standing committees: an Audit Committee, a Nominating and Governance Committee, a Compensation Committee, a Health Safety Environmental and Operations Committee, a Finance
Committee and an Executive Committee. The responsibilities for these Committees are set forth in written charters. 

  

	5.2	The Supervisory Board may establish one or more other additional committees from among its Members as it deems fit, subject to Clause 5.3 and provided that the composition and responsibilities for any such committee
shall comply with applicable listing standards including the NYSE listing standards. The Supervisory Board may also delegate certain of its tasks to a Committee. The delegation of certain tasks to a Committee does not negate the joint responsibility
of all Members. The Supervisory Board may reverse a delegation at any time 

  

	5.3	Each Committee may adopt internal rules as it deems fit provided that the adoption of internal rules by a Committee, as well as any amendment to the internal rules of a Committee, are subject to approval as referred to
in Clause 1.2. The internal rules of each Committee will form an integral part of these Rules. 

  

	5.4	At least one Member of the Supervisory Board nominated by AI International Chemicals S.À R.L. (to the extent AI International is entitled to nominate three members of the Supervisory Board pursuant to the
Nomination Agreement) shall be entitled to serve on each Committee, except as may be prohibited by law or regulation including the NYSE listing standards. Each member of the Supervisory Board nominated to serve on any Committee shall disclose any
conflict of interest (as set forth under Clause 3) to the other members of such Committee and with respect to any matter in which such member has or reasonably could be expected to have a conflict of interest (as determined by the other members of
such Committee or the other members of the Supervisory Board in their sole discretion) the member shall be recused and not receive information or participate in discussions, deliberations, or decision-making processes related to such matter.

  

	6.	MISCELLANEOUS 

  

	6.1	Governing Law. 

 These Rules shall be governed by, and be construed in accordance with,
the laws of The Netherlands. 

  
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	6.2	Arbitration. 

 All disputes arising in connection with these Rules shall be finally
settled in accordance with the arbitration rules of the Netherlands Arbitration Institute (NAI). The arbitral tribunal shall be composed of 3 (three) arbitrators: two selected by the Supervisory Board and the third agreed upon by the first two
selected arbitrators. The place of arbitration shall be Amsterdam. The arbitral procedures shall be conducted in the English language. Consolidation of the arbitral proceedings with other arbitral proceedings pending in The Netherlands, as provided
in article 1046 of the Netherlands Code of Civil Procedure, is excluded. 
 These Rules, as amended and restated, are adopted on February 16, 2017
in accordance with Article 16.3 of the Articles. 

  
 10flo-ex1025_1520.htm

 

Exhibit 10.25

RESTRICTED STOCK AGREEMENT

This AGREEMENT (the “Agreement”) is made as of ____________ (the “Date of Grant”) by and between FLOWERS FOODS, INC., a Georgia corporation (the “Company” or “Flowers”), and ____________ (the “Grantee”).

	
1.
	
Grant of Restricted Stock.  Subject to and upon the terms, conditions, and restrictions set forth in this Agreement and in the Company’s 2001 Equity and Performance Incentive Plan, as amended (the “Plan”), the Company hereby grants to the Grantee as of the Date of Grant ________ Shares of Restricted Stock.  The Restricted Stock shall be fully paid and nonassessable and shall be represented by a certificate registered in the name of the Grantee and bearing a legend referring to the restrictions hereinafter set forth.

	
2.
	
Restrictions on Transfer of Restricted Stock.  The Restricted Stock may not be transferred, sold, pledged, exchanged, assigned or otherwise encumbered or disposed of by the Grantee, except to the Company, until it has become nonforfeitable in accordance with Section 3.  Any purported transfer, encumbrance or other disposition of the Restricted Stock that is in violation of this Section 2 shall be null and void, and the other party to any such purported transaction shall not obtain any rights to or interest in the Restricted Stock.

	
3.
	
Vesting of Restricted Stock.  (a)  On the fourth anniversary of the Date of Grant, the Restricted Stock shall become nonforfeitable, subject to the Grantee remaining in the continuous employ of the Company until said date; provided that,such number of vested shares shall be reduced if and as necessary to equal one dollar ($1) less than an amount equal to 0.5% of the cummulative earnings before interest, taxes, depreciation and amortization as determined under generally accepted accounting principles (EBITDA) for the three year period including 2014, 2015 and 2016, inclusive. For purposes of this Agreement, Grantee’s employment with the Company will be deemed to have ceased as of his “Separation from Service” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  In the case of a Grantee’s receiving short term disability benefits, employment will be deemed to have ceased on the last day for which such short term benefits are paid.

	
 
	
(b)
	
Notwithstanding the provisions of Section 3(a) above or the terms of the Plan, all of the Restricted Stock shall immediately become nonforfeitable in the event:

	
 
	
(i)
	
of a Change in Control.  “Change of Control” means the consummation of any Change of Control of Flowers of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as determined by the Flowers Board of Directors (the “Board”), in its sole discretion; provided that, without limitation, such a Change of Control shall be deemed to have occurred if:

NAI-102548137v2 

 

	
 
	
(A)
	
any “Person” (as such term is defined in Sections 13(d) or 14(d)(2) of the Exchange Act; hereafter, a “Person”) is on the date hereof or becomes the beneficial owner, directly or indirectly, of securities of Flowers representing 35% or more of the combined voting power of the then outstanding “voting stock” the owners of which are entitled to vote on the elections of directors of the Board (“Voting Stock”) of Flowers; provided, however, that for purposes of this Section (A), the following acquisitions shall not constitute a Change of Control:

	
 
	
(1)
	
(a) any acquisition of Voting Stock of Flowers directly from Flowers that is approved by a majority of those persons serving as directors of the Company on the date of this Plan (the “Original Directors”) or their Successors (as defined below), (b) any acquisition of Voting Stock of Flowers by Flowers, or any Subsidiary, and (c) any acquisition of Voting Stock of Flowers by the trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by Flowers, or any Subsidiary (the term “Successors” shall mean those directors whose election or nomination for election by shareholders has been approved by the vote of at least two-thirds of the Original Directors and previously qualified Successors serving as directors of Flowers as the case may be, at the time of such election or nomination for election);

	
 
	
(2)
	
if any Person is or becomes the beneficial owner of 35% or more of the combined voting power of the then-outstanding Voting Stock of Flowers as a result of a transaction described in clause (A) of this Section (A)(1) above and such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock of Flowers representing 1% or more of the then-outstanding Voting Stock of Flowers other than in an acquisition directly from Flowers that is approved by a majority of the Original Directors or their Successors or other than as a result of a stock dividend, stock split or similar transaction effected by Flowers in which all holders of Voting Stock of Flowers are treated equally, such subsequent acquisition shall be treated as a Change of Control;

	
 
	
(3)
	
a Change of Control will not be deemed to have occurred if a Person is or becomes the beneficial owner of 35% or more of the Voting Stock of Flowers as a result of a reduction in the number of shares of Voting Stock of Flowers outstanding pursuant to a transaction or series of 

2

 

 

	
 
		
transactions that is approved by a majority of the Original Directors or their Successors unless and until such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock of Flowers representing 1% or more of the then-outstanding Voting Stock of Flowers other than as a result of a stock dividend, stock split or similar transaction effected by Flowers in which all holders of Voting Stock are treated equally; or

	
 
	
(4)
	
if at least a majority of the Original Directors or their Successors determine in good faith that a Person has acquired beneficial ownership of 35% or more of the Voting Stock of Flowers inadvertently, and such Person divests as promptly as practicable but no later than the date, if any, set by the Original Directors or their Successors a sufficient number of shares so that such Person beneficially owns less than 35% of the Voting Stock of Flowers then no Change of Control shall have occurred as a result of such Person’s acquisition.

	
 
	
(B)
	
Flowers consummates a merger or consolidation in which shareholders of Flowers immediately prior to entering into such agreement will beneficially own immediately after the effective time of the merger or consolidation securities of Flowers or any surviving or new corporation, as the case may be, having less than 60% of the “voting power” of Flowers or any surviving or new corporation, as the case may be, including “voting power” exercisable on a contingent or deferred basis as well as immediately exercisable “voting power,” excluding any merger or combination of a wholly owned Subsidiary into Flowers, or of Flowers into a wholly owned Subsidiary; or

	
 
	
(C)
	
Flowers consummates a sale, lease, exchange or other transfer or disposition of all or substantially all of its assets to any Person other than to a wholly owned Subsidiary, but not including (i) a mortgage or pledge of assets granted in connection with a financing or (ii) a spin-off or sale of assets if Flowers continues in existence and its common shares are listed on a national securities exchange, quoted on the automated quotation system of a national securities association or traded in the over-the-counter market; or

	
 
	
(D)
	
the Original Directors and/or their Successors as defined above in Section (A)(1)(a) of this definition do not constitute a majority of the whole Board as the case may be; or

	
 
	
(E)
	
approval by the shareholders of Flowers of a complete liquidation or dissolution of Flowers as the case may be; and,

3

 

 

	
 
	
(ii)
	
that Grantee Separates from Service with the Company prior to the fourth anniversary of the Date of Grant because of:

	
 
	
(A)
	
disability which is determined by the Committee to be permanent and total with respect to services rendered by the Grantee immediately prior to incurring said disability; or

	
 
	
(B)
	
death.

	
 
	
(iii)
	
For purposes of this Section 3, the term “Subsidiary” means a corporation, partnership, joint venture, unincorporated association or other entity in which the Company has a direct or indirect majority ownership or other equity interest, or such other ownership interest amount determined by this Agreement or the Board.

	
4.
	
Delivery of Restricted Shares.  Provided Grantee has vested in his Restricted Shares, such shall be delivered to the Grantee (or the Grantee’s designated Beneficiary, in the event of death) no later than thirty (30) days following the earliest of the applicable date described below:

	
 
	
(a)
	
The fourth anniversary of the Date of Grant as provided in Section 3(a); or

	
 
	
(b)
	
The Restricted Shares shall be delivered to Grantee upon the Grantee’s Separation from Service as an employee of the Company if on such date the Grantee is vested under Section 3(b) above;

provided, however, where (i) delivery is to be made within thirty (30) days following Separation from Service, (ii) this Agreement is governed by Section 409A of the Code and (iii) on the date of such Separation from Service Grantee is a “Specified Employee” (within the meaning of Code Section 409A), then such delivery shall be delayed in all events until the first business day of the seventh month following the date of the Grantee’s Separation from Service.  

	
5.
	
Forfeiture of Restricted Stock.  Subject to Section 3, the Restricted Stock that does not fully vest shall be forfeited if the Grantee ceases to be continuously employed by the Company at any time prior to the applicable vesting date.  

	
6.
	
Dividend, Voting and Other Rights.  Except as otherwise provided in this Agreement, the Grantee shall not have the rights of a stockholder with respect to the Restricted Stock prior to vesting in accordance with Section 3 hereof.  For the avoidance of doubt, the Grantee will not have the right to vote such Restricted Stock, and if any dividends are paid thereon, such dividends will be deferred until vested in accordance with Section 3 and paid in accordance with Section 4.  Additionally, Flowers Common Stock or other securities that the Grantee may become entitled to receive pursuant to a stock dividend, stock split, combination of Stock, recapitalization, merger, consolidation, separation or reorganization or any other change in the capital structure of the Company shall be subject to the same vesting and payment timing restrictions as the Restricted Stock.

4

 

 

	
7.
	
Retention of Stock Certificate(s) by the Company.  The certificate(s) representing the Restricted Stock shall be issued in book entry form and held in a separate restricted account from all other shares registered in the name of the Grantee by the Company’s stock transfer agent or shall be held in custody by the Secretary of the Company, together with a stock power endorsed in blank by the Grantee with respect thereto, until the Restricted Stock has become nonforfeitable in accordance with Section 3.  In order for the Grant under this Agreement to be effective, the Grantee must sign and return the attached stock powers to the attention of the Secretary of the Company.

	
8.
	
No Employment Contract.  Nothing contained in this Agreement shall confer upon the Grantee any right with respect to continuance of employment by the Company, nor limit or affect in any manner the right of the Company to terminate the employment or adjust the compensation of the Grantee.

	
9.
	
Taxes and Withholding.  If the Company shall be required to withhold any federal, state, local or foreign tax in connection with the issuance or vesting of any Restricted Stock or other amounts pursuant to this Agreement, the Grantee shall pay the tax or make provisions that are satisfactory to the Company for the payment thereof.  The Grantee may elect to satisfy all or any part of any such withholding obligation by surrendering to the Company a portion of the nonforfeitable shares of Common Stock that are issued or transferred to the Grantee hereunder, and the shares of Common Stock so surrendered by the Grantee shall be credited against any such withholding obligation at the Market Value per Share of such shares on the date of such surrender.

	
10.
	
Compliance with Law.  The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any restricted or nonrestricted shares of Common Stock or other securities pursuant to this Agreement if the issuance thereof would result in a violation of any such law.

	
11.
	
Relation to Other Benefits.  Any economic or other benefit to the Grantee under this Agreement shall not be taken into account in determining any benefits to which the Grantee may be entitled under any profit‐sharing, retirement or other benefit or compensation plan maintained by the Company and shall not affect the amount of any life insurance coverage or any other group insurance coverage available to any beneficiary under any insurance plan covering employees of the Company. 

	
12.
	
Amendments.  Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect the rights of the Grantee under this Agreement without the Grantee’s written consent.

	
13.
	
Severability.  In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

5

 

 

	
14.
	
Relation to Plan.  This Agreement is subject to the terms and conditions of the Plan.  In the event of any inconsistent provisions between this Agreement and the Plan, the Plan shall govern.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan.  The Compensation Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein, have the right to determine any questions which arise in connection with this grant.

	
15.
	
Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and assigns of the Company.  

	
16.
	
Governing Law.  The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Georgia, without giving effect to the principles of conflict of laws thereof.  

	
17.
	
Notices.  Any notice to the Company provided for herein shall be in writing to the Company, marked Attention: Corporate Secretary, and any notice to the Grantee shall be addressed to said Grantee at his or her address currently on file with the Company.  Except as otherwise provided herein, any written notice shall be deemed to be duly given if and when delivered personally or deposited in the United States mail, first class registered mail, postage and fees prepaid, and addressed as aforesaid.  Any party may change the address to which notices are to be given hereunder by written notice to the other party as herein specified (provided that for this purpose any mailed notice shall be deemed given on the third business day following deposit of the same in the United States mail).

	
18.
	
Compliance with Section 409A of the Code.  To the extent applicable, it is intended that this Agreement and the Plan comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) do not apply to the Grantee. This Agreement and the Plan shall be administered and construed in a manner consistent with this intent.

	
19.
	
Data Protection.  By signing below, the Grantee consents that the Company may process the Grantee’s personal data, including name, Social Security number, address and number of Restricted Shares (“Data”) exclusively for the purpose of performing this Agreement, in particular in connection with the Restricted Shares awarded to the Grantee. For this purpose the Data may also be disclosed to and processed by companies outside the Company, e.g., banks involved.

6

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer and Grantee has also executed this Agreement in duplicate, as of the day and year first above written.

 

	
 
	
 
	
FLOWERS FOODS, INC.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
R. Steve Kinsey

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ R. Steve Kinsey

	
 
	
 
	
Title:
	
Executive Vice President & Chief

	
 
	
 
	
 
	
Financial Officer

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Grantee

 

7

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