Document:

EX-10.4

 

Exhibit 10.4

NS
GROUP, INC. NON-EQUITY PLAN

PERFORMANCE UNITS AGREEMENT

     This
Agreement (the “Agreement”) is made as of _______, 20___ (the “Date of Grant”),
by and between NS Group, Inc., a Kentucky corporation (the “Company”), and
_____________ (the “Grantee”).

     1. Grant of Performance Units. Subject to and upon the terms, conditions, and restrictions set
forth in this Agreement, the Company hereby grants to the Grantee
___ Performance Units (the
“Target Performance Units”) subject to the attainment of the criteria described in Section 2(a).
Each Performance Unit represents the contingent right to receive $1.00, subject to the terms and
conditions set forth in this Agreement.

     2. Earning of Performance Units.

          (a) The Grantee’s right to receive payment for any Performance Unit shall be determined on the
basis of the Company’s return on capital employed during each three-year period which commences
January 1, ___ and ends December 31,
___ (the “Performance Period”). Except as provided
in this Section 2, the applicable percentage of the Target Performance Units, if any, earned by the
Grantee shall range from 0% to 150%, based on the Company’s results during the Performance Period
and the performance criteria set forth in Exhibit A.

          (b) If, while in the continuous employ of the Company or a Subsidiary Company, the Grantee
dies, retires at age 62 with at least 5 years of continuous employment or becomes permanently
disabled (as determined by the Committee) prior to the date that the Performance Units are paid as
provided herein, the Grantee shall be entitled to receive a prorated portion of the value of the
Performance Units calculated under Section 2(a), determined by multiplying the value of the
Performance Units by a fraction, the numerator of which is the number of days during the
Performance Period that the Grantee was employed by the Company, or a Subsidiary and the
denominator of which is the total number of days during the Performance Period.

          (c) If a Change in Control occurs prior to the end of the Performance Period and while the
Grantee is in the continuous employ of the Company or a Subsidiary, the Grantee shall be entitled
to receive a prorated portion of the value of the Performance Units calculated under Section 2(a),
determined by multiplying the value of the Performance Units by a fraction, the numerator of which
is the number of days during the Performance Period that the Grantee was employed by the Company or
a Subsidiary and the denominator of which is the total number of days during the Performance
Period. The applicable percentage of the Target Performance Units earned by the Grantee shall be
determined by the Committee, in its discretion, by using a reasonable estimate of Company
performance.

     3. Payment of Performance Units.

          (a) Except as provided in Section 3(b), the value of the Target Performance Units earned as
provided in Section 2 and not forfeited as provided in Section 4 shall be paid to the Grantee (or
his beneficiary in the case of death) in cash as soon as administratively practicable after the
approval of audited financial results for the Performance Period, but in no event later than 75
days after the end of a Performance Period.

Page 1 of 5

 

NS
GROUP, INC. NON-EQUITY PLAN

PERFORMANCE UNITS AGREEMENT

          (b) Notwithstanding anything contained herein to the contrary, if a Change in Control occurs
prior to the date that the Performance Units are paid as provided herein and while the Grantee is
in the continuous employ of the Company or a Subsidiary, the value of the Performance Units earned
as provided in Section 2(a) or 2(c), as the case may be, shall be paid to the Grantee in cash
within 30 days after the date of the Change in Control.

     4. Forfeiture of Target Performance Units.

          (a) Except as provided in Section 3(b) and 4(b), the Performance Units shall be forfeited
automatically without further notice on the date the Grantee ceases to be continuously employed by
the Company or a Subsidiary.

          (b) Notwithstanding the provisions of Section 4(a), the Performance Units shall not be
forfeited upon the Grantee’s ceasing to be continuously employed by the Company or a Subsidiary if
the Grantee dies, retires at age 62 with at least 5 years of continuous employment or becomes
permanently disabled (as determined by the Committee).

     5. Transferability. The Performance Units may not be sold, exchanged, assigned, transferred,
pledged, encumbered or otherwise disposed of by the Grantee; provided, however,
that the Grantee’s rights with respect to such Performance Units may be transferred by will or
pursuant to the laws of descent and distribution. Any purported transfer or encumbrance in
violation of the provisions of this Section 5 shall be void, and the other party to any such
purported transaction shall not obtain any rights to or interest in such Performance Units.

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

     7. Taxes and Withholding. To the extent that the Company shall be required to withhold any
federal, state, local or other taxes in connection with the payment of the value of the Performance
Units, the Grantee hereby authorizes the necessary withholding by the Company to satisfy such tax
withholding obligations prior to payment.

     8. Compliance with Section 409A of the Code. To the extent applicable, it is intended that
this Agreement comply with the provisions of Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”). This Agreement shall be administered in a manner consistent with this intent,
and any provision that would cause the Agreement to fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with
Section 409A of the Code (which amendment may be retroactive to the extent permitted by Section
409A of the Code and may be made by the Company without the consent of the Grantee).

     9. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable laws; provided, however, that notwithstanding any other provision of this Agreement, the
Performance Units shall not be paid if the payment thereof would result in a violation of any such
law.

Page 2 of 5

 

NS
GROUP, INC. NON-EQUITY PLAN

PERFORMANCE UNITS AGREEMENT

     10. Continuous Employment. For purposes of this Agreement, the continuous employment of the
Grantee with the Company or a Subsidiary shall not be deemed to have been interrupted, and the
Grantee shall not be deemed to have ceased to be an employee of the Company or a Subsidiary, by
reason of the transfer of his employment among the Company or a Subsidiary or a leave of absence
approved by the Committee.

     11. Amendments. The Committee may modify this Agreement upon written notice to the Grantee.
Notwithstanding the foregoing and except as provided in Section 8 hereof, no amendment of this
Agreement shall adversely affect the rights of the Grantee under this Agreement without the
Grantee’s consent.

     12. 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.

     13. Administration; Entire Agreement. This Agreement contains the entire agreement and
understanding of the parties with respect to the subject matter contained in this Agreement, and
supersedes all prior written or oral communications, representations and negotiations in respect
thereto. The Committee, 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 the
grant or settlement of the Performance Units. The interpretation and construction by the Committee
of any provision of this Agreement and any determination by the Committee pursuant to any provision
of this Agreement shall be final and conclusive. No member of the Committee shall be liable for any
such action or determination made in good faith.

     14. Successors and Assigns. Without limiting Section 5 hereof, 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.

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

     16. Notices. Any notice to the Company provided for herein shall be in writing to the Company
and any notice to the Grantee shall be addressed to the Grantee at his or her address 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
certified or registered mail, postage and fees prepaid, return receipt requested, 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).

Page 3 of 5

 

NS
GROUP, INC. NON-EQUITY PLAN

PERFORMANCE UNITS AGREEMENT

     17. Unsecured Creditor. The Grantee acknowledges that no assets of the Company shall be
segregated for the purpose of payment under this Agreement or shall be held (or deemed to be held)
in trust for the benefit of the Grantee. It is the intention of the Grantee and the Company that
all payment obligations under this Agreement shall constitute at all times general unsecured
obligations of the Company.

     18. Definitions. Capitalized terms not otherwise defined herein shall have the following
meanings: (i) “Change in Control” shall have the meaning provided such term in the NS Group, Inc.
Equity Plan; (ii) “Committee” means the Compensation Committee of the Board of Directors of the
Company; and (iii) “Subsidiary” means a corporation, company or other entity which is designated by
the Committee and in which the Company has a direct or indirect ownership or other equity interest.

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

	 	 	 	 	 
	 	NS GROUP, INC.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

     The undersigned hereby acknowledges receipt of an executed original of this Agreement and
accepts the award of Target Performance Units granted thereunder on the terms and conditions set
forth herein.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	Grantee	 	 
	 
	 

	 	Date:	 	 	 	 

Page 4 of 5

 

NS
GROUP, INC. NON-EQUITY PLAN

PERFORMANCE UNITS AGREEMENT

Exhibit A

The performance goals used to determine the performance units earned under this Agreement is the
Company’s return on capital employed (“ROCE”). For purposes of this Agreement, ROCE shall equal
earnings before interest and taxes, divided by average capital employed for the applicable period.
Performance goals shall be calculated based on generally accepted accounting principles in effect
at the time the goals are established without regard to any change in accounting standards that may
be required by the Financial Accounting Standards Board after the goals are established.

In order to earn the performance award, ROCE for the Performance Period must:

	 	•	 	average 10% over the Performance Period; and
	 
	 	•	 	be at least 4% in the final year of the Performance Period; otherwise, the cash is
forfeited.

If earned, the performance award is paid in the following percentages:

	 	•	 	“Threshold” performance pays 50% of the target performance award amount
	 
	 	•	 	“Target” performance pays 100% of the target performance award amount, and
	 
	 	•	 	“Maximum” performance pays 150% of the target performance award amount

Points between “threshold” and “target” performance and between “target” and “maximum” will be
interpolated on a straight line basis. Upon achievement of performance goals, the cash award is
paid at the end of the Performance Period, subject to other provisions of the LTIP.

Page 5 of 5EX-10.5

 

Exhibit 10.5

NS GROUP, INC. NON-EMPLOYEE DIRECTOR EQUITY PLAN

(Amended and Restated Effective February 17, 2005)

RESTRICTED SHARES AGREEMENT

Notice of Restricted Share Grant

     NS Group, Inc., a Kentucky corporation (the “Company”), grants to the Grantee named below, in
accordance with the terms of the NS Group, Inc. Non-Employee Director Equity Plan (the “Plan”) and
this Restricted Shares Agreement (the “Agreement”), the following number of Restricted Shares, on
the Date of Grant set forth below:

     Name of Grantee:

     Number of Restricted Shares:

     Date of Grant:

Terms of Agreement

     1. Grant of Restricted Shares. Subject to and upon the terms, conditions, and restrictions set
forth in this Agreement and in the Plan, the Company hereby grants to the Grantee as of the Date of
Grant, the total number of Restricted Shares set forth above. The Restricted Shares shall be fully
paid and nonassessable.

     2. Vesting of Restricted Shares.

          (a) The Restricted Shares covered by this Agreement shall vest and become nonforfeitable if
the Grantee shall have continued to serve on the Board through the vesting dates set forth below
with respect to the portion of Restricted Shares set forth next to such date:

	 	 	 	 	 
	 	 	Portion of Restricted Shares
	Vesting Date	 	Vesting on such Vesting Date
	 
	The earlier of (i) May 9, 2009, or
(ii) the annual meeting of the
Company’s stockholders in 2009
	 	 	100	%

          (b) Notwithstanding the provisions of Section 2(a), all of the Restricted Shares covered by
this Agreement shall immediately become vested and nonforfeitable if, during the vesting period (i)
the Grantee dies or becomes permanently disabled (as determined by the Board) while serving on the
Board, (ii) a Change in Control occurs, or (iii) the Grantee retires from the Board after having
attained the mandatory retirement age for Non-Employee Directors under the Company’s corporate
governance guidelines in effect on the date of such retirement.

          (c) Notwithstanding the provisions of Sections 2(a) and 2(b), if the Grantee ceases to serve
on the Board as a result of his Retirement during the vesting period, then the Restricted Shares
shall vest and become nonforfeitable as set forth below with respect to the portion of Restricted
Shares set forth next to such termination date:

Page 1 of 5

 

NS GROUP, INC. NON-EMPLOYEE DIRECTOR EQUITY PLAN

(Amended and Restated Effective February 17, 2005)

RESTRICTED SHARES AGREEMENT

	 	 	 	 	 
	 	 	Portion of Restricted
	Termination of Service Occurs	 	Shares Vesting
	 
	On or after May 9, 2007 (or, if earlier,
the annual meeting of the Company’s
stockholders in 2007) but before May 9,
2008 (or, if earlier, the annual meeting
of the Company’s stockholders in 2008)
	 	 	1/3	 
	 
	 	 	 	 
	On or after May 9, 2008 (or, if earlier,
the annual meeting of the Company’s
stockholders in 2008) but before May 9,
2009 (or, if earlier, the annual meeting
of the Company’s stockholders in 2009)
	 	 	2/3	 
	 
	 	 	 	 
	On or after May 9, 2009 (or, if earlier,
the annual meeting of the Company’s
stockholders in 2009)
	 	 	3/3	 

     For purposes of this Section 2(c), the term Retirement shall mean a voluntary resignation from
the Board by the Grantee at any time after at least five years of service as a Non-Employee
Director.

     3. Forfeiture of Shares. The Restricted Shares that have not yet vested pursuant to Section 2
shall be forfeited automatically without further notice if the Grantee ceases to be a Non-Employee
Director other than as provided in Section 2(b) or 2(c). In the event of a forfeiture of the
Restricted Shares, the stock book entry account representing the Restricted Shares covered by this
Agreement shall be cancelled and all Restricted Shares shall be returned to the Company.

     4. Transferability. The Restricted Shares may not be sold, exchanged, assigned, transferred,
pledged, encumbered or otherwise disposed of by the Grantee, except to the Company, until the
Restricted Shares have become nonforfeitable as provided in Section 2. Any purported transfer or
encumbrance in violation of the provisions of this Section 4 shall be void, and the other party to
any such purported transaction shall not obtain any rights to or interest in such Restricted
Shares. The Board, in its sole discretion, when and as is permitted by the Plan, may waive the
restrictions on transferability with respect to all or a portion of the Restricted Shares, provided
that any permitted transferee (other than the Company) shall remain subject to all the terms and
conditions applicable to the Restricted Shares prior to such transfer.

     5. Dividend, Voting and Other Rights. Except as otherwise provided herein, from and after the
Date of Grant, the Grantee shall have all of the rights of a shareholder with respect to the
Restricted Shares, including the right to vote the Restricted Shares and receive any cash dividends
that may be paid thereon (which such dividends shall be paid no later than the end of the calendar
year in which the dividends are paid to the holders of the Common Shares or, if later, the 15th day
of the third month following the date the dividends are paid to the holders of the Common Shares);
provided, however, that any additional Common Shares or other securities that
the Grantee may become entitled to receive pursuant to a stock dividend, stock split, combination
of shares, recapitalization, merger, consolidation, separation or reorganization or any other
change in the

Page 2 of 5

 

NS GROUP, INC. NON-EMPLOYEE DIRECTOR EQUITY PLAN

(Amended and Restated Effective February 17, 2005)

RESTRICTED SHARES AGREEMENT

capital structure of the Company shall be considered Restricted Shares and shall be
subject to the same restrictions as the Restricted Shares covered by this Agreement.

     6. Custody of Restricted Shares. Until the Restricted Shares have become vested and
nonforfeitable as provided in Section 2, the Restricted Shares shall be issued in book-entry only
form and shall not be represented by a certificate. The restrictions set forth in this Agreement
shall be reflected on the stock transfer records maintained by or on behalf of the Company.
Effective until the Restricted Shares have become vested and nonforfeitable as provided in Section
2, the Grantee hereby irrevocably constitutes and appoints the Chief Executive Officer of the
Company, the Chief Financial Officer of the Company and the Secretary of the Company, or any of
them, as attorneys-in-fact to transfer to the Company or its designee, without further action, all
or any portion of the Restricted Shares that are forfeited in accordance with this Agreement. The
Grantee agrees to take any and all other actions (including without limitation executing,
delivering, performing and filing such other agreements, instruments and documents) as the Company
may deem necessary or appropriate to carry out and give effect to such transfer.

     7. No Right to Reelection. Nothing contained in this Agreement shall confer upon the Grantee
any right to be nominated for reelection by the Company’s stockholders, or any right to remain a
member of the Board for any period of time, or at any particular rate of compensation.

     8. Taxes and Withholding. If the Company is required to withhold any federal, state, local or
other taxes in connection with the delivery or vesting of the Restricted Shares (including in the
event of the Grantee making an election under Section 83(b) of the Code with respect to the
Restricted Shares), the Grantee shall pay the tax or make provisions that are satisfactory to the
Company for the payment thereof. The Grantee shall promptly notify the Company of any election made
by the Grantee pursuant to Section 83(b) of the Code.

     9. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable federal and state securities laws and listing requirements of the New York Stock
Exchange or any national securities exchange with respect to the Restricted Shares;
provided, however, notwithstanding any other provision of this Agreement, the
Restricted Shares shall not be delivered or become vested if the delivery or vesting thereof would
result in a violation of any such law or listing requirement.

     10. Amendments. Subject to the terms of the Plan, the Board may modify this Agreement upon
written notice to the Grantee. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto. Notwithstanding the foregoing, no
amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee under this
Agreement without the Grantee’s consent.

     11. 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.

Page 3 of 5

 

NS GROUP, INC. NON-EMPLOYEE DIRECTOR EQUITY PLAN

(Amended and Restated Effective February 17, 2005)

RESTRICTED SHARES AGREEMENT

     12. Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. This
Agreement and the Plan contain the entire agreement and understanding of the parties with respect
to the subject matter contained in this Agreement, and supersede all prior written or oral
communications, representations and negotiations in respect thereto. In the event of any
inconsistency between the provisions of 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 Board 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 the grant of the Restricted Shares.

     13. Successors and Assigns. Without limiting Section 4 hereof, 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.

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

     15. Electronic Delivery. The Grantee hereby consents and agrees to electronic delivery of any
documents that the Company may elect to deliver (including, but not limited to, prospectuses,
prospectus supplements, grant or award notifications and agreements, account statements, annual and
quarterly reports, and all other forms of communications) in connection with this and any other
award made or offered under the Plan. The Grantee understands that, unless earlier revoked by the
Grantee by giving written notice to the Secretary of the Company, this consent shall be effective
for the duration of the Agreement. The Grantee also understands that he or she shall have the right
at any time to request that the Company deliver written copies of any and all materials referred to
above at no charge. The Grantee hereby consents to any and all procedures the Company has
established or may establish for an electronic signature system for delivery and acceptance of any
such documents that the Company may elect to deliver, and agrees that his or her electronic
signature is the same as, and shall have the same force and effect as, his or her manual signature.
The Grantee consents and agrees that any such procedures and delivery may be effected by a third
party engaged by the Company to provide administrative services related to the Plan.

Page 4 of 5

 

NS GROUP, INC. NON-EMPLOYEE DIRECTOR EQUITY PLAN

(Amended and Restated Effective February 17, 2005)

RESTRICTED SHARES AGREEMENT

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and the Grantee has also executed this Agreement, as of the Date of Grant.

	 	 	 	 	 
	 	NS GROUP, INC.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

     The undersigned hereby acknowledges receipt of a copy of the Plan Summary and Prospectus, and
the Company’s most recent Annual Report and Proxy Statement (the “Prospectus Information”). The
Grantee represents that he or she is familiar with the terms and provisions of the Prospectus
Information and hereby accepts the award of Restricted Shares on the terms and conditions set forth
herein and in the Plan.

	 	 	 	 	 
	 
	 	Grantee 	 
	 
	 	Date:  	 	 

Page 5 of 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]