Document:

Exhibit

EXHIBIT 10.3

Summary of Terms of the Annual Restricted Stock Unit Grants made and to be made to the Non-Associate Directors of Abercrombie & Fitch Co. under the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Directors in Fiscal 2018

Non-Associate Directors

For the fiscal year ending February 2, 2019 (“Fiscal 2018”), directors of Abercrombie & Fitch Co. (the “Company”) who are not employees, or as referred to by the Company, “associates”, of the Company or of a subsidiary of the Company (“non-associate directors”) are eligible to receive an annual grant of restricted stock units (“RSUs”) as part of their compensation.  Each RSU represents the right to receive one share of Class A Common Stock, $0.01 par value, of the Company (the “Common Stock”), upon vesting.  The market value of the shares of Common Stock underlying the RSUs on the grant date is to be $150,000 (the “Non-Associate Director RSU Retainer”).

The annual Non-Associate Director RSU Retainer has been and will continue to be subject to the following provisions:

		
	•
	RSUs are to be granted annually on the date of the annual meeting of stockholders of the Company (if the non-associate directors continue to serve after the annual meeting of stockholders) pursuant to the Abercrombie & Fitch Co. 2016 Long-Term Incentive Plan for Directors (or any successor plan approved by the Company’s stockholders); and

		
	•
	RSUs will vest on the earlier of (i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders of the Company after the grant date, subject to earlier vesting in the event of a non-associate director’s death or total disability or upon termination of service in connection with a change of control of the Company.

Arthur C. Martinez

In his capacity as Executive Chairman of the Board of the Company, Arthur C. Martinez was to receive, as equity compensation for the fiscal year ended February 3, 2018 (“Fiscal 2017”), an annual grant of RSUs, with the market value of the shares of Common Stock underlying the annual grant equal to $1,000,000 on the grant date (the “Executive Chairman RSU Retainer”).  

Effective April 3, 2017, Mr. Martinez was granted a pro-rated Executive Chairman RSU Retainer that:

		
	•
	was based on the portion of a full year that the period of time between February 1, 2017 and June 15, 2017 represented (or 32,318 RSUs with a market value of $367,132); and

		
	•
	vested on the June 15, 2017 date of the 2017 Annual Meeting.

Beginning with the date of the 2017 Annual Meeting, unless the Board were to determine otherwise, the full amount of the annual Executive Chairman Cash Retainer was to be paid to Mr. Martinez (quarterly in arrears) and the annual grant of the Executive Chairman RSU Retainer was to be subject to the following provisions: 

		
	•
	RSUs representing the full amount of the Executive Chairman RSU Retainer were to be granted on the date of the annual meeting of stockholders of the Company (if Mr. Martinez continued to serve after the annual meeting of stockholders); and

		
	•
	RSUs were to vest on the earlier of (i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders of the Company after the grant date; in each case, subject to earlier vesting in the event of Mr. Martinez’s death or total disability or upon termination of service in connection with a change of control of the Company.

On January 19, 2018, Mr. Martinez notified the Company of his intention to retire from the Board, effective upon the expiration of his current term as a director immediately prior to the 2018 Annual Meeting.  As such, Mr. Martinez ceased to serve in the capacity as the Company’s Executive Chairman of the Board and Chair of the Executive Committee of the Board (although he remained a member of the Executive Committee) on February 3, 2018.

In connection with Mr. Martinez’s resignation from the role of Executive Chairman of the Board of the Company, effective April 2, 2018 (the execution date by Mr. Martinez), the Company and Mr. Martinez entered into an agreement which set forth the terms of Mr. Martinez’s equity compensation for his service as Executive Chairman of the Board of the Company for the period from June 15, 2017 through February 3, 2018 and of his equity compensation for his service as a non-associate director of the Company for the period from February 4, 2018 through the date of the 2018 Annual Meeting.

Mr. Martinez received a pro-rated portion of the Executive Chairman RSU Retainer to cover the period from June 15, 2017 through February 3, 2018 and a pro-rated portion of the Non-Associate Director RSU Retainer for the period from February 4, 2018 through June 14, 2018.  The pro-rated portions of the RSU grants cover a total of 55,396 shares consisting of (i) 51,087 shares underlying the portion of the Executive Chairman RSU Retainer for the period from June 15, 2017 through February 3, 2018 and (ii) a pro-rated portion covering 4,309 shares underlying the Non-Associate Director RSU Retainer for the period from February 4, 2018 through June 14, 2018.  Mr. Martinez’s RSUs vest on the earlier of the date of the 2018 Annual Meeting or the one-year anniversary of the grant date, subject to earlier vesting in the event of Mr. Martinez’s death or total disability or upon termination of service in connection with a change of control of the Company.  A pro-rated portion of the Executive Chairman RSU Retainer, covering 24,413 shares, for the period between February 4, 2018 and June 14, 2018, was forfeited.

Terry L. Burman

Effective February 3, 2018, the Board elected Terry L. Burman to serve as Non-Executive Chairman of the Board of the Company and also appointed Mr. Burman to serve as Chair of the Executive Committee of the Board.  

In his capacity as Non-Executive Chairman of the Board of the Company, Mr. Burman is to receive the following equity compensation for Fiscal 2018:

		
	•
	an additional annual grant of RSUs, with the market value of the shares of Common Stock underlying this annual grant being equal to $100,000 on the grant date (the “Non-Executive Chairman RSU Retainer”), pro-rated for the period from February 3, 2018 through the date of the 2018 Annual Meeting.  These RSUs, with an approximate market value of $35,989, will vest on the earlier of the date of the 2018 Annual Meeting or the first anniversary of the grant date, subject to earlier vesting in the event of Mr. Burman’s death or total disability or upon termination of service in connection with a change of control of the Company; and

		
	•
	if Mr. Burman’s service as Non-Executive Chairman of the Board of the Company ends for any reason other than his death or total disability, a pro-rata portion of unvested RSUs subject to the Non-Executive Chairman RSU Retainer will vest to reflect the portion of the period that has elapsed between the grant date and the date on which his service as Non-Executive Chairman of the Board of the Company ends. 

Beginning with the date of the 2018 Annual Meeting, unless the Board were to determine otherwise, and subject to Mr. Burman continuing in the role of Non-Executive Chairman of the Board of the Company, the annual grant of the Non-Executive Chairman RSU Retainer will be subject to the following provisions: 

		
	•
	RSUs representing the full amount of the Non-Executive Chairman RSU Retainer will be granted on the date of the annual meeting of stockholders of the Company (if Mr. Burman continues to serve after the annual meeting of stockholders); 

2

		
	•
	RSUs will vest on the earlier of (i) the first anniversary of the grant date or (ii) the date of the next regularly scheduled annual meeting of stockholders of the Company after the grant date; in each case, subject to earlier vesting in the event of Mr. Burman’s death or total disability or upon termination of service in connection with a change of control of the Company; and

		
	•
	if Mr. Burman’s service as Non-Executive Chairman of the Board of the Company ends for any reason other than his death or total disability, a pro-rata portion of unvested RSUs subject to the Non-Executive Chairman RSU Retainer will vest to reflect the portion of the year that has elapsed between the grant date and the date on which his service as Non-Executive Chairman of the Board of the Company ends.

3Exhibit

EXHIBIT 10.4

AGREEMENT

This AGREEMENT (this "Agreement"), is entered into between Abercrombie & Fitch Co., a Delaware corporation (the "Company"), and Arthur C. Martinez ("Martinez") as of the execution date by Martinez below (the "Effective Date").

WHEREAS, as Executive Chairman of the Board, Martinez was to receive an annual cash retainer in the amount of Five Hundred Thousand and 00/100 Dollars ($500,000) (the “Executive Chairman Cash Retainer”), and an annual grant of restricted stock units (“RSUs”) with the market value of the shares of Common Stock underlying the annual grant to be One Million and 00/100 Dollars ($1,000,000), which on the June 15, 2017 annual grant date equaled 79,809 shares (the “Executive Chairman RSU Retainer”); and

WHEREAS, a Director of the Company is entitled to receive an annual cash retainer in the amount of Sixty-Five Thousand and 00/100 Dollars ($65,000) (the “Standard Cash Retainer”), additional compensation for Committee membership and Chairmanship, and an annual grant of RSUs with the market value of the shares of Common Stock underlying the annual grant to be One Hundred Fifty Thousand and 00/100 Dollars ($150,000) (the “Standard RSU Retainer”) which on the June 15, 2017 annual grant date equaled 11,972 shares; and 

WHEREAS, Martinez served as Executive Chairman of the Board from June 15, 2017 through February 3, 2018 and will serve as a Director of the Company from February 4, 2018 through the date of the next regularly scheduled annual meeting of stockholders of the Company, currently scheduled for June 14, 2018; and   

WHEREAS, the Company and Martinez desire to enter into this Agreement to set forth the terms of Martinez’s compensation as Executive Chairman of the Board for the period from June 15, 2017 through February 3, 2018 and as a Director for the period from February 4, 2018 through the next regularly scheduled annual meeting of stockholders of the Company, currently scheduled for June 14, 2018.   

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Company and Martinez hereby agree as follows:

1.    Cash Compensation:

a)    Martinez will receive a pro-rated amount of the Executive Chairman Cash Retainer for the period June 15, 2017 through February 3, 2018, in the amount of approximately $320,055, less any portion previously paid.  The remaining portion of the Executive Chairman Cash Retainer, which would have been paid for the period from February 4, 2018 through June 14, 2018 will be forfeited.   

b)    Martinez will receive a pro-rated amount of the Standard Cash Retainer for the period February 4, 2018 through the next regularly scheduled annual meeting of stockholders of the Company, currently scheduled for June 14, 2018, in the amount of approximately $23,392.86. 

c)    Martinez will receive a pro-rated amount of the annual Executive Committee membership retainer for the period February 4, 2018 through June 14, 2018, in the amount of approximately $4,498.63.

2.    Equity Compensation:

a)    Martinez will receive a pro-rated portion of the Executive Chairman RSU Retainer covering 55,396 shares consisting of (i) 51,087 shares underlying the portion of the Executive Chairman RSU Retainer for the period June 15, 2017 through February 3, 2018 and (ii) a pro-rated portion covering 4,309 shares underlying the 

portion of the Standard RSU Retainer for the period February 4, 2018 through June 14, 2018.  RSUs will continue to vest on the earlier of the 2018 annual meeting, currently scheduled for June 14, 2018, or the one-year anniversary of the grant date, subject to earlier vesting in the event of Mr. Martinez’s death or total disability or upon a change of control of the Company.

b)    A pro-rated portion of the Executive Chairman RSU Retainer, covering 24,413 shares, for the period February 4, 2018 through June 14, 2018 will be forfeited.   

c)    Martinez will execute the attached First Amendment to Restricted Stock Unit Award Agreement to reflect the share amounts set forth in 2(a) above.

3.    Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without giving effect to the conflict of law principles thereof.  Any actions or proceedings instituted under this Agreement with respect to any matters arising under or related to this Agreement shall be brought and tried only in the Court of Common Pleas, Franklin County, Ohio.

	
			
	/s/ Arthur C. Martinez
	 
	/s/ Terry Burman

	Arthur C. Martinez
	 
	Abercrombie & Fitch Co.

	 
	 
	Terry L. Burman, Non-Executive Chairman of the Board

	4/2/18
	 
	4/3/18

	Date
	 
	Date

FIRST AMENDMENT TO 
RESTRICTED STOCK UNIT AWARD AGREEMENT
(2016 Long-Term Incentive Plan for Directors)

This FIRST AMENDMENT (this “AMENDMENT”) to the RESTRICTED STOCK UNIT AWARD AGREEMENT, dated as of June 15, 2017 (the “ORIGINAL AWARD AGREEMENT”), by and between Abercrombie & Fitch Co., a Delaware corporation (the “COMPANY”), and Arthur C. Martinez, a non-employee director of the COMPANY (“PARTICIPANT”) is made to be effective as of February 3, 2018 (the “EFFECTIVE DATE”).

WITNESSETH:
WHEREAS, on June 15, 2017, PARTICIPANT was awarded 79,809 restricted stock units representing the right to receive 79,809 shares of Class A Common Stock, $0.01 par value, of the COMPANY (such 79,809 restricted stock units, the “ORIGINAL RSUs”), subject to the restrictions, conditions and other terms set forth in the ORIGINAL AWARD AGREEMENT; and

WHEREAS, in connection with PARTICIPANT’s cessation of service as the COMPANY’s Executive Chairman of the Board effective February 3, 2018 and PARTICIPANT’s continued service as a non-employee director of the COMPANY, the COMPANY and PARTICIPANT agree to amend the ORIGINAL AWARD AGREEMENT to evidence the forfeiture by PARTICIPANT of 24,413 of the ORIGINAL RSUs and instead provide the PARTICIPANT with 55,396 restricted stock units representing the right to receive 55,396 shares of Class A Common Stock, $0.01 par value, of the COMPANY (such 55,396 restricted stock units, the “RESTRICTED STOCK UNITS”), subject to the restrictions, conditions and other terms set forth in the ORIGINAL AWARD AGREEMENT; 

NOW, THEREFORE, in consideration of the premises, the parties hereto make the following agreement, intending to be legally bound thereby:

1.    The number of RESTRICTED STOCK UNITS of the COMPANY subject to the AWARD evidenced by the ORIGINAL AWARD AGREEMENT shall be reduced from 79,809 to 55,396, subject to the restrictions, conditions and other terms set forth in the ORIGINAL AWARD AGREEMENT, as amended by this AMENDMENT.  

2.    Except as expressly amended by this AMENDMENT, the terms, conditions and other provisions set forth in the ORIGINAL AWARD AGREEMENT shall remain in full force and effect. 

3.    This AMENDMENT may be executed in one or more counterparts, each of which shall be an original, and all of which shall constitute one and the same First Amendment to Restricted Stock Unit Award Agreement.  

[Remainder of page intentionally left blank; signature page follows]

IN WITNESS WHEREOF, the COMPANY has caused this AMENDMENT to be executed by its duly authorized officer, and PARTICIPANT has executed this AMENDMENT to be effective as of the EFFECTIVE DATE.

	
	
	COMPANY:

	 

	ABERCROMBIE & FITCH CO.

	 

	By: /s/ John Gabrielli

	John Gabrielli

	Senior Vice President, Chief Human Resources Officer

	 

	4/9/18

	Date:

	 

	PARTICIPANT:

	 

	/s/ Arthur C. Martinez

	Arthur C. Martinez

	 

	4/2/18

	Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00284-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00284-of-00352.parquet"}]]