Document:

exv10w1

 

Exhibit 10.1

VF CORPORATION 1996 STOCK COMPENSATION PLAN

NON-QUALIFIED STOCK OPTION CERTIFICATE

	 	 	 	 	 
	 

	 	Optionee:
	 	«Name»
	 

	 	Date of Grant:
	 	«         »
	 

	 	Number of Shares:
	 	«Shares»
	 

	 	Option Price Per Share:
	 	«$        »

THIS IS TO CERTIFY that on the above Date of Grant, VF CORPORATION, a Pennsylvania
corporation (the “Corporation”), granted to the named Optionee a Non-Qualified Stock Option,
subject to the terms and conditions of the 1996 Stock Compensation Plan (the “Plan”), which is
incorporated herein by reference. This Option shall not be treated as an Incentive Stock Option.
The Optionee may purchase from the Corporation the Number of Shares of its Common Stock at the
Option Price Per Share identified above, subject, however, to the following terms and conditions.

1. Subject to paragraph 2 below:

	 	(a)	 	Unless the exercise date of this Option is accelerated in accordance with
Article XI of the Plan, this Option shall vest as follows:

	 	•	 	one-third (1/3) of the shares of this Option (rounded up to the nearest
whole share) shall only be exercisable for a period of nine (9) years,
commencing on the first anniversary of the Date of Grant;
	 
	 	•	 	one-third (1/3) of the shares of this Option (rounded to the nearest whole
share) shall only be exercisable for a period of eight (8) years, commencing on
the second anniversary of the Date of Grant; and
	 
	 	•	 	one-third (1/3) of the shares of this Option (rounded down to the nearest
whole share) shall only be exercisable for a period of seven (7) years,
commencing on the third anniversary of the Date of Grant; and all rights to
exercise all or any part of this Option will end upon the expiration of ten
years from the Date of Grant;

	 	(b)	 	This Option shall only be exercisable so long as the Optionee remains an
employee of the Corporation or a Subsidiary (as defined in the Plan); and
	 
	 	(c)	 	In the event that the Optionee’s employment is terminated at any time prior to
the exercise of this Option for any reason, all of the Optionee’s rights, if any then
remain, under this Option shall be forfeited and this Option shall terminate
immediately.

2. The provisions of paragraph 1 of this Certificate to the contrary notwithstanding, upon the
termination of the Optionee’s employment with the Corporation (including its Subsidiaries) at any
time prior to the expiration of ten years from the Date of Grant of this Option by reason of
Retirement (as defined in the Plan), permanent and total disability, death, or involuntary
separation of employment with the Optionee receiving severance pay in installments, the Optionee or
his estate may exercise the Option to the extent specified in this Section 2 during the applicable
period: (a) the 36 month period following the date of Retirement, permanent and total disability,
or the Optionee’s death, or (b) until the end of the period of the Optionee’s receipt of
installments of severance pay in the event of involuntary separation of employment. If an Optionee
dies during the 36 month period following such termination of employment by reason of Retirement or
permanent and total disability, then the Optionee’s estate may exercise any outstanding options
during the balance of the 36 month period; and if an Optionee dies during the period of such
receipt of installments of severance pay following an involuntary separation of employment, then
the Optionee’s estate may exercise any outstanding options during the balance of the period of
receipt of installments of severance pay. If an Optionee retires (in accordance with the
definition of Retirement in the Plan) prior to the payment of the final installment of severance
pay following an involuntary separation of employment, the Optionee may exercise any outstanding
options for the 36 month period beginning on the date of such involuntary separation of employment.
Upon the termination of the Optionee’s

 

 

employment with the Corporation due to death or permanent
and total disability, any unvested portion of the Option will vest and become immediately
exercisable in full and will remain exercisable as described in the preceding sentence. Upon
termination of the Optionee’s employment with the Corporation due to Retirement or involuntary
separation of employment with the Optionee receiving severance pay in installments, the Option
shall be or become exercisable during the post-termination exercise period only at such times as it
would have been exercisable under Section 1(a) had Optionee’s employment not terminated (thus, (a)
in the case of Retirement, any portion of the Option that would not have vested before the
expiration of the 36-month period following termination will be forfeited and (b) in the case of
involuntary separation of employment, any portion of the Option that would not have vested before
expiration of the period of the Optionee’s receipt of installments of severance pay will be
forfeited). Notwithstanding anything in this Certificate to the contrary, in no event, however,
shall this Option be exercisable after the expiration of ten years from the Date of Grant.

3. During the life of the Optionee, this Option may only be exercised by the Optionee, except as
otherwise provided in the Plan. The Optionee is responsible for all applicable taxes. The
exercise of this Option is subject to the Corporation’s policies regulating trading by employees,
including any applicable “blackout” periods when trading is not permitted.

4. This Option shall be exercised by written notice to the Corporation stating the number of
shares with respect to which it is being exercised and accompanied by payment of the full amount of
the Option Price for the number of shares desired by a check payable to the order of the
Corporation, or, if acceptable to the Committee which administers the Plan, by delivery of a cash
equivalent or surrender or delivery to the Corporation of shares of its Common Stock or by a
combination of a check and shares of Common Stock. The exercise date of this Option shall be the
date upon which the notice of exercise is received by the Corporation with full payment of the
Option Price. In addition, this Option may be exercised on behalf of the Optionee by a designated
brokerage firm in accordance with the terms of the Plan and the rules of the Committee.

5. This Option may only be exercised if all personal income tax and applicable social security tax
liabilities are borne by the Optionee. This includes the satisfaction of any applicable tax which
the Corporation and/or the Subsidiary employing such Optionee may in its judgment be required to
withhold. To enable the withholding of such tax, the Corporation or the Subsidiary employing the
Optionee may receive and retain the option exercise proceeds (in the form of shares, remitting the
fair market value of such shares to the appropriate taxing authorities) or the proceeds of any sale
of Option shares (in the form of cash) on behalf of the Optionee. In the event that the tax
withheld is not sufficient to cover the Optionee’s total tax liability arising directly or
indirectly from the grant of the Option, the Optionee accepts full responsibility of such tax
liability.

6. The grant of this Option:

	 	(a)	 	is made at the discretion of the Corporation which retains certain rights
pursuant to the Plan to amend the terms of the Option or the Plan;
	 
	 	(b)	 	shall not be construed as entitling the Optionee to future option grants and/or
continued employment with the Corporation (including its Subsidiaries); and
	 
	 	(c)	 	shall not be considered as part of the Optionee’s salary for purposes of
calculating severance in the event of the Optionee’s voluntary or involuntary
termination of employment.

7. This Option is subject to the Corporation’s Forfeiture Policy for Equity and Incentive Awards in
the Event of Restatement of Financial Results as in effect at the date of this Option. Such Policy
imposes conditions that may result in forfeiture of the Option or the proceeds to you resulting
from the Option (a so-called “clawback”) in certain circumstances if the Corporation’s financial
statements are required to be restated as a result of misconduct.

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8. The Corporation (including the Subsidiary employing the Optionee) is hereby authorized to
transmit any personal information that it deems necessary to facilitate the administration of the
Option grant.

9. This Certificate, including the rights and obligations of the Optionee and the Corporation
hereunder, is subject in all respects to the Plan, which shall be controlling in the event of any
inconsistency with or omission from this Certificate.

By accepting the grant of this Option, the Optionee acknowledges that he or she understands and
agrees to its terms.

V. F. CORPORATION

Eric C. Wiseman

President and Chief Executive Officer

3exv10w2

 

Exhibit 10.2

VF CORPORATION

AWARD CERTIFICATE

Performance-Based Restricted Stock Units (“PRSUs”) for

Three-Year Performance Cycle           -           under the

Mid-Term Incentive Plan

Target PRSUs Awarded:                                        

To: [Name of Participant]

I am pleased to advise you that you have been awarded the opportunity to earn from 0% to 200% of
the number of Performance-Based Restricted Stock Units set forth above under VF Corporation’s
Mid-Term Incentive Plan for the Performance Cycle commencing at the beginning of fiscal            and
ending on the final day of VF Corporation’s            fiscal year under the terms and conditions set
forth in the attached Appendix. The actual number of shares of VF Common Stock that you may
receive at the end of the Performance Cycle will depend, among other things as described in the
Appendix, on the level of achievement over the Performance Cycle of specified performance goals set
by the Compensation Committee of the VF Board of Directors.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	VF CORPORATION  
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	     Eric C. Wiseman	 	 
	 

	 	 	 	 	 	     President and Chief Executive Officer	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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VF CORPORATION

APPENDIX TO

PRSUs AWARD CERTIFICATE

Terms and Conditions Relating to

Performance-Based Restricted Stock Units (“PRSUs”)

1. Opportunity to Earn PRSUs.

          Participant has been designated as having the opportunity to earn Performance-Based Restricted
Stock Units (“PRSUs”) under VF Corporation’s (the “Company’s”) Mid-Term Incentive Plan (the
“Mid-Term Plan”) for the three-year Performance Cycle specified in the Award Certificate (the
“Performance Cycle”). Subject to the terms and conditions of the Mid-Term Plan and this Agreement,
Participant will have the opportunity to earn from 0% to 200% of the targeted number of PRSUs (the
“Target PRSUs”) for the Performance Cycle. The number of Target PRSUs shall be number set forth on
the Award Certificate plus additional PRSUs resulting from Dividend Equivalents and adjustments, as
specified in Section 3(c).

2. Incorporation of Plans by Reference; Certain Restrictions.

          (a) PRSUs which may be earned by the Participant represent Stock Units under the Company’s
Mid-Term Plan and 1996 Stock Compensation Plan, as amended (the “1996 Plan”), copies of which have
been provided to Participant. All of the terms, conditions, and other provisions of the Mid-Term
Plan and the 1996 Plan (together, the “Plans”) are hereby incorporated by reference into this
document. Capitalized terms used in this document but not defined herein shall have the same
meanings as in the Mid-Term Plan. If there is any conflict between the provisions of this document
and the provisions of the Plans, the provisions of the Plans shall govern.

          (b) Until PRSUs have become earned in accordance with Section 4, PRSUs shall be subject to a
risk of forfeiture as provided in the Plans and this document. Until such time as the PRSUs have
become settled by delivery of shares in accordance with Section 6, PRSUs will be nontransferable,
as provided in the Plans and Section 3(d). Participant is subject to the VF Code of Business
Conduct and related policies on insider trading restricting Participant’s ability to sell shares of
the Company’s Common Stock received in settlement of PRSUs, which may include “blackout” periods
during which Participant may not engage in such sales.

3. General Terms of PRSUs

          (a) Each PRSU represents a conditional right of the Participant to receive, and a conditional
obligation of the Company to deliver, one share of the Company’s Common Stock, at the times
specified hereunder and subject to the terms and conditions of the Mid-Term Plan and this document.

          (b) PRSUs will be earned for a given Performance Cycle at the “Earning Date” for that
Performance Cycle, which will be the date the Committee makes a final determination of the extent
to which the performance goals for that Performance Cycle were achieved and the number of PRSUs
earned for that Performance Cycle.

          (c) An account will be maintained for Participant for purposes of the Mid-Term Plan, to which
the initial number of Target PRSUs for each Performance Cycle shall be credited. Dividend
Equivalents will be

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credited on the Target PRSUs in accordance with Section 7(b) of the Mid-Term Plan. The Committee
may vary the manner and terms of crediting Dividend Equivalents during the Performance Cycle, for
administrative convenience or any other reason, provided that the Committee determines that any
alternative manner and terms result in equitable treatment of Participant. The number of Target
PRSUs and the terms of PRSUs will be subject to adjustment upon the occurrence of certain
extraordinary corporate events specified in Section 7(b) of the Mid-Term Plan and otherwise in
accordance with Section 6(b) of the Mid-Term Plan, such adjustments to be made by the Committee in
order to prevent dilution or enlargement of Participant’s opportunity to earn incentive
compensation under this Agreement. Thus, the percentage of Target PRSUs earned under Section 4
will include the additional PRSUs resulting from the crediting of Dividend Equivalents.

          (d) PRSUs are non-transferable to the extent specified in Section 9(h) of the Mid-Term Plan.

4. Earning of PRSUs.

          (a) PRSUs for the Performance Cycle will be earned in accordance with Sections 6(a) and 6(c)
of the Mid-Term Plan as follows:

               (i) If Participant has been designated a “Covered Employee” for the Performance Cycle, a
required condition in order for Participant to earn PRSUs for the Performance Cycle will be that
the “Pre-Set Goal” has been achieved (in addition to achievement of the Challenge Goal, as
specified below). The Pre-Set Goal will be achieved if the Company’s aggregate earnings per share
(diluted) for the three fiscal years in the Performance Cycle, excluding the effects of
extraordinary and non-recurring items and changes in accounting principles, shall be positive. For
purposes of compliance with requirements of Code Section 162(m), so that PRSUs earned by
Participant shall qualify as performance-based compensation, the achievement of the Pre-Set Goal
shall be a condition that qualifies Participant to earn the maximum number of PRSUs, with any
reduction from such maximum based on the level of achievement of the Challenge Goal or as a result
of any exercise of the discretion of the Committee to constitute an exercise of negative discretion
for purposes of Section 162(m).

               (ii) If Participant has not been designated a “Covered Employee” for the Performance Cycle,
the applicable performance goal for Participant shall be the Challenge Goal specified below.

               (iii) The Challenge Goal set forth herein must be achieved at the levels specified herein in
order for PRSUs to be earned for the Performance Cycle. The Challenge Goal shall be the average,
over the three fiscal years in the Performance Cycle, of the levels of achievement of the Executive
Incentive Compensation Plan (the “EIC Plan”) goal set by the Committee for each of the fiscal years
in the Performance Cycle. For this purpose, the designation of target performance, which shall
result in the earning of the Target PRSUs, and threshold and maximum performance, shall be the
average of the target, threshold and maximum levels, respectively, specified by the Committee under
the EIC Plan for the three fiscal years in the Performance Cycle. Performance and the percentage
of Target PRSUs earned will be interpolated, if the performance achieved is between threshold and
target or between target and maximum. The Committee retains complete discretion in setting the EIC
Plan goals and related terms which are incorporated into this Challenge Goal; the setting of such
EIC Plan goals and related terms may occur at any time during the Performance Cycle (subject to
applicable provisions of the EIC Plan). In addition, if in the second or third year of the
Performance Cycle the EIC Plan performance objective is based on business criteria different from
those used in the prior year, or otherwise departs from the format that corresponds to the Plans
and this Agreement, the Committee may specify a different Challenge Goal.

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          (b) At the Earning Date, at which time the Committee will have determined whether and the
extent to which the Performance Goals specified in this Section 4 have been achieved and made other
determinations authorized hereunder, any PRSUs that are determined to have not been earned shall
cease to be earnable and shall be cancelled.

5. Effect of Termination of Employment.

          Upon Participant’s Termination of Employment prior to the Earning Date for a given Performance
Cycle, the Participant’s unearned PRSUs relating to that Performance Cycle shall cease to be
earnable and shall be cancelled, except to the extent provided in Section 8 of the Mid-Term Plan
(which provides for settlement of a specified portion of the PRSUs in certain cases of death,
disability, Retirement, termination by the Company not for Cause, and certain other circumstances,
including certain terminations following a Change in Control).

6. Settlement of PRSUs

          (a) PRSUs that are earned will be settled by delivery of one share of Common Stock for each
PRSU. Such settlement will occur as of the Earning Date, with delivery of shares to take place as
promptly as practicable thereafter (and in no event more than 60 days thereafter), in accordance
with Section 9 of the Mid-Term Plan. Participant may not elect to defer receipt of Common Stock
issuable in settlement of PRSUs.

          (b) Whenever Common Stock is to be delivered hereunder, the Company shall deliver to the
Participant or the Participant’s Beneficiary one or more certificates representing the shares of
Common Stock, registered in the name of the Participant, the Beneficiary, or in such other form of
registration as instructed by the Participant, except that the Committee may provide for
alternative methods of delivery for administrative convenience. The obligation of the Company to
deliver Common Stock hereunder is conditioned upon compliance by the Participant and by the Company
with all applicable federal and state securities and other laws and regulations.

7. Tax Withholding.

          In furtherance of the tax withholding obligations imposed under Section 9(g) of the Mid-Term
Plan, the Company shall withhold from the shares deliverable in settlement of PRSUs the number of
shares having an aggregate Fair Market Value equal to the mandatory Federal and state withholding
requirements, including FICA, but rounded down to the nearest whole share, unless Participant has
made other arrangements approved by the Human Resources Department in advance of settlement to make
payment of such withholding amounts.

8. Binding Effect; Integration.

          The terms and conditions set forth in this document shall be binding upon the heirs,
executors, administrators and successors of the parties. The Award Certificate, this document, and
the Mid-Term Plan constitutes the entire agreement between the parties with respect to the PRSUs
and supersedes any prior agreements or documents with respect thereto. No amendment, alteration,
suspension, discontinuation or termination of this document which may impose any additional
obligation upon the Company or materially impair the rights of the Participant with respect to the
PRSUs shall be valid unless in each instance such amendment, alteration, suspension,
discontinuation or termination is expressed in a written instrument duly executed in the name and
on behalf of the Company and, if Participant’s rights are materially impaired thereby, by
Participant.

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9. PRSUs subject to Forfeiture Policy for Equity and Incentive Awards in the Event of Restatement of Financial Results. 

     The PRSUs subject to this Award Certificate are subject to the Company’s Forfeiture Policy
for Equity and Incentive Awards in the Event of Restatement of Financial Results as in effect at
the date of this Award Certificate. Such Policy imposes conditions that may result in
forfeiture of such PRSUs or the proceeds to you resulting from such PRSUs (a so-called
“clawback”) in certain circumstances if the Company’s financial statements are required to be
restated as a result of misconduct.

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