Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34 Filing Table of Contents
Document/ExhibitDescriptionPagesSize
1: 10-K Annual Report HTML 1.95M
2: EX-10 Exhibit 10.L HTML 120K
3: EX-21 Subsidiaries List HTML 39K
4: EX-23 Exhibit 23.A HTML 40K
5: EX-31 Exhibit 31.A HTML 45K
6: EX-31 Exhibit 31.B HTML 45K
7: EX-32 Exhibit 32.A HTML 40K
8: EX-32 Exhibit 32.B HTML 40K
83: R1 Document And Entity Information HTML 65K
63: R2 Consolidated Balance Sheets HTML 136K
78: R3 Consolidated Balance Sheets (Parentheticals) HTML 50K
87: R4 Consolidated Statements of Income HTML 103K
111: R5 Consolidated Statements of Comprehensive Income HTML 63K
66: R6 Consolidated Statements of Cash Flows HTML 155K
77: R7 Consolidated Statements of Stockholders’ Equity HTML 91K
57: R8 Consolidated Statements of Stockholders’ Equity HTML 40K
(Parentheticals)
45: R9 Note 1 - Description of Business HTML 44K
113: R10 Note 2 - Significant Accounting Policies HTML 94K
89: R11 Note 3 - Accumulated Other Comprehensive Loss HTML 52K
88: R12 Note 4 - Accounts Receivable HTML 65K
95: R13 Note 5 - Inventories HTML 91K
96: R14 Note 6 - Property and Equipment HTML 58K
93: R15 Note 7 - Financial Instruments, Investments and HTML 50K
Fair Value Measurements
97: R16 Note 8 - Income from the Continued Dumping and HTML 41K
Subsidy Offset Act
79: R17 Note 9 - Licensee Acquisitions and Goodwill HTML 133K
84: R18 Note 10 - Unconsolidated Affiliated Companies HTML 76K
91: R19 Note 11 - Income Taxes HTML 192K
121: R20 Note 12 - Real Estate Notes Payable and Bank HTML 64K
Credit Facility
106: R21 Note 13 - Post-Employment Benefit Obligations HTML 134K
72: R22 Note 14 - Capital Stock and Stock Compensation HTML 224K
90: R23 Note 15 - Restructuring, Asset Impairment, and HTML 135K
Other Charges
75: R24 Note 16 - Contingencies HTML 39K
35: R25 Note 17 - Leases and Lease Guarantees HTML 64K
107: R26 Note 18 - Earnings Per Share HTML 96K
117: R27 Note 19 - Segment Information HTML 181K
50: R28 Note 20 - Quarterly Results of Operations HTML 104K
(Unaudited)
49: R29 Schedule II - Analysis of Valuation and Qualifying HTML 223K
Accounts
55: R30 Accounting Policies, by Policy (Policies) HTML 149K
56: R31 Note 2 - Significant Accounting Policies (Tables) HTML 59K
58: R32 Note 3 - Accumulated Other Comprehensive Loss HTML 48K
(Tables)
24: R33 Note 4 - Accounts Receivable (Tables) HTML 63K
104: R34 Note 5 - Inventories (Tables) HTML 89K
70: R35 Note 6 - Property and Equipment (Tables) HTML 56K
73: R36 Note 9 - Licensee Acquisitions and Goodwill HTML 126K
(Tables)
40: R37 Note 10 - Unconsolidated Affiliated Companies HTML 69K
(Tables)
120: R38 Note 11 - Income Taxes (Tables) HTML 193K
15: R39 Note 12 - Real Estate Notes Payable and Bank HTML 60K
Credit Facility (Tables)
60: R40 Note 13 - Post-Employment Benefit Obligations HTML 136K
(Tables)
110: R41 Note 14 - Capital Stock and Stock Compensation HTML 228K
(Tables)
37: R42 Note 15 - Restructuring, Asset Impairment, and HTML 131K
Other Charges (Tables)
48: R43 Note 17 - Leases and Lease Guarantees (Tables) HTML 60K
54: R44 Note 18 - Earnings Per Share (Tables) HTML 94K
64: R45 Note 19 - Segment Information (Tables) HTML 173K
23: R46 Note 20 - Quarterly Results of Operations HTML 99K
(Unaudited) (Tables)
44: R47 Note 1 - Description of Business (Details) HTML 43K
17: R48 Note 2 - Significant Accounting Policies (Details) HTML 96K
109: R49 Note 2 - Significant Accounting Policies (Details) HTML 41K
- Percentages Of Trade Accounts Receivable And
Related Allowance For Doubtful Accounts Due From
Licensees
36: R50 Note 2 - Significant Accounting Policies (Details) HTML 47K
- Aggregate Exposure From Receivables And
Guarantees Related To Customers
105: R51 Note 3 - Accumulated Other Comprehensive Loss HTML 49K
(Details) - The Activity In Accumulated Other
Comprehensive Loss
41: R52 Note 4 - Accounts Receivable (Details) - Accounts HTML 45K
Receivable
61: R53 Note 4 - Accounts Receivable (Details) - Activity HTML 46K
In Allowance For Doubtful Accounts
16: R54 Note 5 - Inventories (Details) HTML 38K
20: R55 Note 5 - Inventories (Details) - Inventories HTML 58K
53: R56 Note 5 - Inventories (Details) - Activity In HTML 49K
Reserves For Excess Quantities And Obsolete
Inventory By Segment
28: R57 Note 6 - Property and Equipment (Details) HTML 43K
114: R58 Note 6 - Property and Equipment (Details) - HTML 54K
Property and Equipment
68: R59 Note 7 - Financial Instruments, Investments and HTML 53K
Fair Value Measurements (Details)
94: R60 Note 8 - Income from the Continued Dumping and HTML 39K
Subsidy Offset Act (Details)
43: R61 Note 9 - Licensee Acquisitions and Goodwill HTML 54K
(Details)
46: R62 Note 9 - Licensee Acquisitions and Goodwill HTML 59K
(Details) - Net Assets Acquired And Consideration
Given
102: R63 Note 9 - Licensee Acquisitions and Goodwill HTML 52K
(Details) - Net Sales And Operating Loss Generated
Subsequent To Acquisition
98: R64 Note 9 - Licensee Acquisitions and Goodwill HTML 49K
(Details) - Carrying Value Of Goodwill
71: R65 Note 10 - Unconsolidated Affiliated Companies HTML 73K
(Details)
100: R66 Note 10 - Unconsolidated Affiliated Companies HTML 42K
(Details) - Income
42: R67 Note 10 - Unconsolidated Affiliated Companies HTML 57K
(Details) - Consideration Received, Balance Of
Investment In IHFC At Time Of Sale And Gain From
Sale
76: R68 Note 10 - Unconsolidated Affiliated Companies HTML 44K
(Details) - Summarized Financial Information For
IHFC
116: R69 Note 11 - Income Taxes (Details) HTML 75K
19: R70 Note 11 - Income Taxes (Details) - Components Of HTML 61K
Income Tax Provision (Benefit)
34: R71 Note 11 - Income Taxes (Details) - Reconciliation HTML 61K
Of Statutory Federal Income Tax Rate And Effective
Income Tax Rate
62: R72 Note 11 - Income Taxes (Details) - Income Tax HTML 79K
Effects Of Temporary Differences And Carryforwards
26: R73 Note 11 - Income Taxes (Details) - Summary Of HTML 48K
Valuation Allowances Against Deferred Tax Assets
119: R74 Note 11 - Income Taxes (Details) - Activity HTML 44K
Related To Gross Unrecognized Tax Benefits
38: R75 Note 12 - Real Estate Notes Payable and Bank HTML 64K
Credit Facility (Details)
29: R76 Note 12 - Real Estate Notes Payable and Bank HTML 45K
Credit Facility (Details) - Real Estate Notes
Payable And Bank Debt
33: R77 Note 12 - Real Estate Notes Payable and Bank HTML 54K
Credit Facility (Details) - Maturities Of Real
Estate Notes Payable
21: R78 Note 13 - Post-Employment Benefit Obligations HTML 68K
(Details)
25: R79 Note 13 - Post-Employment Benefit Obligations HTML 86K
(Details) - Plan Summary
85: R80 Note 13 - Post-Employment Benefit Obligations HTML 50K
(Details) - Components Of Net Periodic Pension
Cost
31: R81 Note 13 - Post-Employment Benefit Obligations HTML 42K
(Details) - Assumptions Used To Determine Net
Periodic Pension Cost
115: R82 Note 13 - Post-Employment Benefit Obligations HTML 50K
(Details) - Estimated Future Benefit Payments
59: R83 Note 14 - Capital Stock and Stock Compensation HTML 86K
(Details)
92: R84 Note 14 - Capital Stock and Stock Compensation HTML 40K
(Details) - Compensation Expense Related To
Restricted Stock And Stock Options Included In
Selling, General And Administrative Expenses
99: R85 Note 14 - Capital Stock and Stock Compensation HTML 52K
(Details) - Stock Option Valuation Assumptions
30: R86 Note 14 - Capital Stock and Stock Compensation HTML 59K
(Details) - Changes In Outstanding Options
32: R87 Note 14 - Capital Stock and Stock Compensation HTML 55K
(Details) - Changes In Non-vested Options
112: R88 Note 14 - Capital Stock and Stock Compensation HTML 79K
(Details) - Additional Information Regarding
Outstanding Stock Options
27: R89 Note 14 - Capital Stock and Stock Compensation HTML 50K
(Details) - Additional Information Regarding
Activity In Stock Options
86: R90 Note 14 - Capital Stock and Stock Compensation HTML 46K
(Details) - Restricted Stock Awards
82: R91 Note 15 - Restructuring, Asset Impairment, and HTML 77K
Other Charges (Details)
103: R92 Note 15 - Restructuring, Asset Impairment, and HTML 60K
Other Charges (Details) - Restructuring, Asset
Impairment And Other Charges
81: R93 Note 15 - Restructuring, Asset Impairment, and HTML 41K
Other Charges (Details) - Total Restructuring And
Asset Impairment Charges By Segment
67: R94 Note 15 - Restructuring, Asset Impairment, and HTML 51K
Other Charges (Details) - Activity Related To
Accrued Lease Exit Costs
108: R95 Note 17 - Leases and Lease Guarantees (Details) HTML 52K
65: R96 Note 17 - Leases and Lease Guarantees (Details) - HTML 56K
Future Minimum Lease Payments Under Non-cancelable
Operating Leases
39: R97 Note 17 - Leases and Lease Guarantees (Details) - HTML 52K
Minimum Future Rental Income
74: R98 Note 18 - Earnings Per Share (Details) - HTML 86K
Reconciliation Of Basic And Diluted Loss Per Share
69: R99 Note 19 - Segment Information (Details) HTML 38K
51: R100 Note 19 - Segment Information (Details) - Segment HTML 115K
Information For Each Of Last Three Fiscal Years
122: R101 Note 19 - Segment Information (Details) - HTML 43K
Breakdown Of Wholesale Sales By Product Category
101: R102 Note 20 - Quarterly Results of Operations HTML 56K
(Unaudited) (Details)
80: R103 Note 20 - Quarterly Results of Operations HTML 64K
(Unaudited) (Details) - Quarterly Results Of
Operations (Unaudited)
22: R104 Schedule II - Analysis of Valuation and Qualifying HTML 61K
Accounts (Details) - Analysis Of Valuation And
Qualifying Accounts
118: XML IDEA XML File -- Filing Summary XML 196K
18: EXCEL IDEA Workbook of Financial Reports XLSX 263K
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This Performance Share Award Agreement (this “Agreement”) is made between Bassett Furniture Industries, Incorporated, a Virginia corporation (“Bassett”), and you, an employee of Bassett or one of its Subsidiaries, pursuant to the Bassett Furniture Industries, Incorporated Stock Incentive Plan (the “Plan”). A Prospectus describing the Plan is attached as Exhibit A. When used herein, the terms which are defined in the Plan shall have the meanings given to them in the Plan.
In recognition of the value of your contributions to Bassett, you and Bassett mutually covenant and agree as follows:
1.
Subject to the terms and conditions of the Plan and this Agreement, Bassett grants to you the right to receive shares of Common Stock subject to the terms of this Agreement (the “Performance Shares”). The Performance Shares, if any, will be issued based on the achievement of the performance goals in Paragraph 2 below. After issuance until such time as the Performance Shares may vest pursuant to Paragraph 3 below, the Performance Shares are forfeitable and nontransferable.
2.
The achievement of the Performance Goal during the Performance Period will determine the percentage of the Target Number of Performance Shares that will be issued, subject to vesting and the other terms and conditions of this award. The percentage of the Target Number that will be issued, if any, is based on the following table:
Performance
Percentage of Target Number to be Issued
3.
Subject to the terms described below, after issuance pursuant to Paragraph 2 above, the Performance Shares shall vest and become transferable as described in the following schedule:
Vesting Date
Cumulative Percentage Vested
Except as provided below, (i) you must remain continuously employed with Bassett or a Subsidiary through each Vesting Date for the applicable portion of the Performance Shares to vest, and (ii) to the extent you terminate employment for any reason prior to a Vesting Date, any portion of the Performance Shares that have not yet vested on the date you terminate employment shall be immediately forfeited on such date.
1
In the case of your termination of employment prior to a Vesting Date due to your death or Disability, the Performance Shares shall become fully vested and transferable on the date of such event.
In the case your employment with Bassett or a Subsidiary is terminated for Cause, all of the Performance Shares (including both any vested and unvested portions) shall be immediately forfeited on the date you terminate employment. For purposes of this Agreement, “Cause” shall have the meaning set forth in any employment agreement between you and Bassett or a Subsidiary, or if none exists, Cause shall mean your (a) fraud or material misappropriation with respect to the business or assets of Bassett or any Subsidiary, (b) persistent refusal or willful failure to perform substantially your duties and responsibilities to Bassett or any Subsidiary, which continues after you receive notice of such refusal or failure, (c) conviction of a felony or crime involving moral turpitude, or (d) use of drugs or alcohol that interferes materially with your performance of your duties.
Subject to and in accordance with Section 16 of the Plan, in the case of a Change in Control prior to a Vesting Date, the Performance Shares shall become fully vested and transferable on the occurrence of the Change in Control, provided you have remained continuously employed with Bassett or a Subsidiary from the Grant Date above through the date of the Change in Control.
For purposes of this Agreement, “termination of employment” (and variations thereof) shall mean your ceasing to serve as a full time employee of Bassett or a Subsidiary in good standing, except that an approved leave of absence or approved employment on a less than full time basis may constitute employment with Bassett’s consent.
4.
You shall have all of the rights as a shareholder of Bassett with respect to the Performance Shares (both the vested and unvested portions) from and after their issuance under Paragraph 2 above, including the right to vote such shares and to receive any dividends or other distributions paid thereon. Dividend equivalents will be accrued based on the number of Performance Shares for the period from the Grant Date of this award until the issuance of Performance Shares and paid to you upon the issuance of the Performance Shares.
5.
Until such time as the Performance Shares may vest pursuant to Paragraph 3 above, the Performance Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. You agree as a condition to receiving this award to comply with the ownership requirements and other conditions of the Company’s Stock Ownership Guidelines (the “Guidelines”) with respect to the total number of shares of Common Stock you receive in payment upon vesting of this award. xxxx
6.
As a condition of accepting this award, you hereby assign and transfer the Performance Shares issued pursuant to this Agreement to Bassett, and hereby irrevocably appoint the Corporate Secretary of Bassett as your attorney-in-fact to transfer said shares on its books with full power of substitution. Bassett will retain custody of the Performance Shares. As soon as practicable following the date on which the Performance Shares become vested and transferable pursuant to Paragraph 3 above, Bassett will transfer the Performance Shares to you. Fractional shares of Common Stock will not be issued and any fractional share resulting from a change in capital structure pursuant to Paragraph 9 below or otherwise shall be eliminated. Bassett shall not be obligated to issue or deliver any Performance Shares or release any Performance Shares from the restrictions described herein during any period when Bassett
determines that such action would violate any federal, state or other applicable laws.
2
7.
You agree to make arrangements satisfactory to Bassett for the payment of applicable withholding taxes in connection with the issuance or vesting of the Performance Shares, or the payment of any dividends thereon, in any manner permitted under the Plan. Bassett shall not be obligated to issue or deliver any Performance Shares or release any Performance Shares from the restrictions described herein until such arrangements have been made. You hereby agree to give Bassett prompt notice of any election you make under Section 83(b) of the Code with respect to the Performance Shares. If you fail to give Bassett prompt notice, you will be liable to Bassett for any loss of deduction, any penalty imposed, and any other financial loss incurred by Bassett as a result of your failure to give prompt notice.
8.
You agree that, upon request, you will furnish a letter agreement providing (i) that you will not distribute or resell in violation of the Securities Act of 1933, as amended, any of the Performance Shares if and when they become transferable pursuant hereto, (ii) that you indemnify and hold Bassett harmless against all liability for any such violation and (iii) that you will accept all liability for any such violation.
9.
The number of Performance Shares issuable under this Agreement is subject to adjustment in the event of a stock split or other similar change in capital structure of Bassett as provided in the Plan. The existence of these Performance Shares shall not affect in any way the right or power of Bassett or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in Bassett’s capital structure or its business, or any merger or consolidation of Bassett, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the dissolution or liquidation of Bassett, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
10.
Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, by fax or by mail, postage prepaid, to such address and directed to such person as Bassett may notify you from time to time; and to you at your address as shown on the records of Bassett from time to time, or at such other address as you, by notice to Bassett, may designate in writing from time to time.
11.
The terms and provisions of the Plan are incorporated into this Agreement by reference. In the case of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.
12.
Neither the Performance Shares nor this Agreement constitutes an employment contract between you and Bassett or any Subsidiary, nor do either the Performance Shares or this Agreement guarantee you employment with Bassett or any Subsidiary for any length of time.
13.
This Agreement shall be governed by the laws of the Commonwealth of Virginia without regard to the conflict of law principles of any jurisdiction.
14.
This Agreement shall be binding upon and inure to the benefit of your legatees, distributees, and personal representatives and any successors of Bassett.
15.
By signing this Agreement you acknowledge having received a copy of the Prospectus and the Plan and agree to be bound by all of the terms and conditions thereof.
3
IN WITNESS WHEREOF, Bassett has caused this Performance Share Award Agreement to be executed by its duly authorized officer, and you have hereunto set your hand and seal, all effective as of the Grant Date stated above.
BASSETT FURNITURE INDUSTRIES, INCORPORATED
EMPLOYEE
[SEAL]
By:
Name:
Title:
4
BASSETT FURNITURE INDUSTRIES, INCORPORATED
2010 EMPLOYEE STOCK PLAN – Exhibit A
PROSPECTUS
5
BASSETT FURNITURE INDUSTRIES, INCORPORATED
2010 EMPLOYEE STOCK PLAN
FORM RESTRICTED STOCK AWARD AGREEMENT
GRANTED TO:
GRANT DATE:
NUMBER OF SHARES:
This Restricted Stock Award Agreement (this “Agreement”) is made between Bassett Furniture Industries, Incorporated, a Virginia corporation (“Bassett”), and you, an employee of Bassett or one of its Subsidiaries, pursuant to the Bassett Furniture Industries, Incorporated 2010 Employee Stock Plan (the “Plan”). A Prospectus describing the Plan is attached as Exhibit A. When used herein, the terms which are defined in the Plan shall have the meanings given to them in the Plan.
In recognition of the value of your contributions to Bassett, you and Bassett mutually covenant and agree as follows:
1.
Subject to the terms and conditions of the Plan and this Agreement, Bassett grants to you the number of shares of Common Stock stated above (the “Restricted Shares”). Until such time as the Restricted Shares may vest pursuant to Paragraph 2 below, the Restricted Shares are forfeitable and nontransferable.
2.
Subject to the terms described below, the Restricted Shares shall vest and become transferable as described in the following schedule:
Vesting Date
Cumulative Percentage Vested
Except as provided below, (i) you must remain continuously employed with Bassett or a Subsidiary through each Vesting Date for the applicable portion of the Restricted Shares to vest, and (ii) to the extent you terminate employment for any reason prior to a Vesting Date, any portion of the Restricted Shares that have not yet vested on the date you terminate employment shall be immediately forfeited on such date.
In the case of your termination of employment prior to a Vesting Date due to your death or Disability, the Restricted Shares shall become fully vested and transferable on the date of such event.
In the case your employment with Bassett or a Subsidiary is terminated for Cause, all of the Restricted Shares (including both any vested and unvested portions) shall be immediately forfeited on the date you terminate employment. For purposes of this Agreement, “Cause” shall have the meaning set forth in any employment agreement between you and Bassett or a Subsidiary, or if none exists, Cause shall mean your (a) fraud or material misappropriation with respect to the business or assets of Bassett or any Subsidiary, (b) persistent refusal or willful failure to perform substantially your duties and responsibilities to Bassett or any Subsidiary, which continues after you receive notice of such refusal or failure, (c) conviction of a felony or crime involving moral turpitude, or (d) use of drugs or alcohol that interferes materially with your performance of your duties.
6
Subject to and in accordance with Section 16 of the Plan, in the case of a Change in Control prior to a Vesting Date, the Restricted Shares shall become fully vested and transferable on the occurrence of the Change in Control, provided you have remained continuously employed with Bassett or a Subsidiary from the Grant Date above through the date of the Change in Control.
For purposes of this Agreement, “termination of employment” (and variations thereof) shall mean your ceasing to serve as a full time employee of Bassett or a Subsidiary in good standing, except that an approved leave of absence or approved employment on a less than full time basis may constitute employment with Bassett’s consent.
3.
You shall have all of the rights as a shareholder of Bassett with respect to the Restricted Shares (both the vested and unvested portions) from and after the Grant Date, including the right to vote such shares and to receive any dividends or other distributions paid thereon.
4.
Until such time as the Restricted Shares may vest pursuant to Paragraph 2 above, the Restricted Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. You agree as a condition to receiving this award to comply with the ownership requirements and other conditions of the Company’s Stock Ownership Guidelines (the “Guidelines”) with respect to the total number of shares of Common Stock you receive in payment upon vesting of this award.
5.
As a condition of accepting this award, you hereby assign and transfer the Restricted Shares granted pursuant to this Agreement to Bassett, and hereby irrevocably appoint the Corporate Secretary of Bassett as your attorney-in-fact to transfer said shares on its books with full power of substitution.
6.
Bassett shall, as soon as administratively practicable after the Grant Date, direct Bassett’s transfer agent for Common Stock to make a book entry record showing ownership for the Restricted Shares in your name (or, in accordance with your instructions and subject to the consent of Bassett with shall not be unreasonably withheld, in your and your spouse’s names as community property or as joint tenants with right of survivorship). As soon as practicable following the date on which the Restricted Shares become vested and transferable pursuant to Paragraph 2 above, Bassett will issue appropriate instructions to that effect to the transfer agent for Common Stock. Fractional shares of Common Stock will not be issued and any fractional share resulting from a change in capital structure pursuant to Paragraph 9 below or otherwise shall be eliminated. Bassett shall not be obligated to issue or deliver
any Restricted Shares or release any Restricted Shares from the restrictions described herein during any period when Bassett determines that such action would violate any federal, state or other applicable laws.
7.
You agree to make arrangements satisfactory to Bassett for the payment of applicable withholding taxes in connection with the grant or vesting of the Restricted Shares, or the payment of any dividends thereon, in any manner permitted under the Plan. Bassett shall not be obligated to issue or deliver any Restricted Shares or release any Restricted Shares from the restrictions described herein until such arrangements have been made. You hereby agree to give Bassett prompt notice of any election you make under Section 83(b) of the Code with respect to the Restricted Shares. If you fail to give Bassett prompt notice, you will be liable to Bassett for any loss of deduction, any penalty imposed, and any other financial loss incurred by Bassett as a result of your failure to give prompt notice.
7
8.
You agree that, upon request, you will furnish a letter agreement providing (i) that you will not distribute or resell in violation of the Securities Act of 1933, as amended, any of the Restricted Shares if and when they become transferable pursuant hereto, (ii) that you indemnify and hold Bassett harmless against all liability for any such violation and (iii) that you will accept all liability for any such violation.
9.
The number of Restricted Shares is subject to adjustment in the event of a stock split or other similar change in capital structure of Bassett as provided in the Plan. The existence of these Restricted Shares shall not affect in any way the right or power of Bassett or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in Bassett’s capital structure or its business, or any merger or consolidation of Bassett, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the dissolution or liquidation of Bassett, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
10.
Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, by fax or by mail, postage prepaid, to such address and directed to such person as Bassett may notify you from time to time; and to you at your address as shown on the records of Bassett from time to time, or at such other address as you, by notice to Bassett, may designate in writing from time to time.
11.
The terms and provisions of the Plan are incorporated into this Agreement by reference. In the case of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.
12.
Neither the Restricted Shares nor this Agreement constitutes an employment contract between you and Bassett or any Subsidiary, nor do either the Restricted Shares or this Agreement guarantee you employment with Bassett or any Subsidiary for any length of time.
13.
This Agreement shall be governed by the laws of the Commonwealth of Virginia without regard to the conflict of law principles of any jurisdiction.
14.
This Agreement shall be binding upon and inure to the benefit of your legatees, distributees, and personal representatives and any successors of Bassett.
15.
By signing this Agreement you acknowledge having received a copy of the Prospectus and the Plan and agree to be bound by all of the terms and conditions thereof.
IN WITNESS WHEREOF, Bassett has caused this Restricted Stock Award Agreement to be executed by its duly authorized officer, and you have hereunto set your hand and seal, all effective as of the Grant Date stated above.
BASSETT FURNITURE INDUSTRIES, INCORPORATED
EMPLOYEE
[SEAL]
By:
Name:
Title:
8
BASSETT FURNITURE INDUSTRIES, INCORPORATED
2010 EMPLOYEE STOCK PLAN
FORM STOCK OPTION AWARD AGREEMENT
GRANTED TO:
GRANT DATE:
NUMBER OF SHARES:
OPTION PRICE PER SHARE:
EXPIRATION DATE:
This Stock Option Award Agreement (this “Agreement”) is made between Bassett Furniture Industries, Incorporated, a Virginia corporation (“Bassett”), and you, an employee of Bassett or one of its Subsidiaries, pursuant to the Bassett Furniture Industries, Incorporated 2010 Employee Stock Plan (the “Plan”). A Prospectus describing the Plan is attached as Exhibit A. When used herein, the terms which are defined in the Plan shall have the meanings given to them in the Plan.
In recognition of the value of your contributions to Bassett, you and Bassett mutually covenant and agree as follows:
1.
Subject to the terms and conditions of the Plan and this Agreement, Bassett grants to you the Option to purchase from Bassett the above-stated number of shares of Common Stock (the “Shares”) at the Option Price per Share stated above. This Option is not intended to be an Incentive Stock Option.
2.
Subject to the terms described below, this Option shall vest and become exercisable as described in the following schedule:
Vesting Date
Cumulative Percentage Vested
Except as provided below, (i) you must remain continuously employed with Bassett or a Subsidiary through each Vesting Date for the applicable portion of the Option to vest, and (ii) to the extent you terminate employment for any reason prior to a Vesting Date, any portion of the Option that is not yet vested on the date you terminate employment shall be immediately terminated and forfeited on such date.
In the case of your termination of employment prior to a Vesting Date due to your death, Disability or Retirement, the Option shall become fully vested and exercisable on the date of such event, and shall remain exercisable for the applicable period set forth in Paragraph 3 below. For purposes of this Agreement, “Retirement” means termination of your employment (other than due to death or Disability) after you attain age sixty-five (65), or earlier if you retire early with Bassett’s consent.
9
In the case your employment with Bassett or a Subsidiary is terminated for Cause, the entire Option (including both any vested and unvested portions) shall be immediately terminated and forfeited on the date you terminate employment. For purposes of this Agreement, “Cause” shall have the meaning set forth in any employment agreement between you and Bassett or a Subsidiary, or if none exists, Cause shall mean your (a) fraud or material misappropriation with respect to the business or assets of Bassett or any Subsidiary, (b) persistent refusal or willful failure to perform substantially your duties and responsibilities to Bassett or any Subsidiary, which continues after you receive notice of such refusal or failure, (c) conviction of a felony or crime involving moral turpitude, or (d) use of drugs or alcohol that interferes materially with your performance of your duties.
Subject to and in accordance with Section 16 of the Plan, in the case of a Change in Control prior to a Vesting Date, the Option shall become fully vested and exercisable on the occurrence of the Change in Control, provided you have remained continuously employed with Bassett or a Subsidiary from the Grant Date above through the date of the Change in Control.
For purposes of this Agreement, “termination of employment” (and variations thereof) shall mean your ceasing to serve as a full time employee of Bassett or a Subsidiary in good standing, except that an approved leave of absence or approved employment on a less than full time basis may constitute employment with Bassett’s consent.
3.
Except as otherwise provided below, the Option is exercisable only during your employment with Bassett or a Subsidiary. The Option shall expire on the earlier of the Expiration Date stated above or the following Cancellation Date depending on the reason for your termination of employment with Bassett and its Subsidiaries:
Reason for Termination of Employment
Cancellation Date
Death or Disability
12 months after termination date
Retirement
36 months after Retirement date
Voluntary termination by you (other than Retirement) with written consent of Bassett
90 days after termination date
Any other termination
Termination date
If you terminate employment due to Retirement and die within three years thereafter, or if you terminate employment due to Disability and die within one year thereafter, or if you voluntarily terminate (other than Retirement) with the consent of Bassett and die within 90 days thereafter, your beneficiary or estate (as provided below) may exercise the Option until the earliest of (i) the third anniversary of your Retirement date or the first anniversary of the date on which you terminated employment due to Disability or the 90th day following your voluntary termination with the consent of Bassett (whichever is applicable), or (ii) the Expiration Date.
Any portion of the Option that has not been exercised as of the earlier of the Expiration Date or the applicable Cancellation Date above shall be immediately terminated and forfeited on such date.
If the event of your death, the Option shall be exercisable for the applicable period set forth above by such person empowered to do so under your will, or if you fail to make a testamentary disposition of the Option or shall have died intestate, by your executor or other legal representative.
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4.
Any person entitled to exercise the Option may do so by delivering to Bassett a written notice signed by such person stating such person’s intention of thereby exercising the Option and the number of Shares as to which the Option is being exercised, together with payment in full of the Option Price. Such written notice must be substantially the same in content as the form letter attached hereto as Exhibit B, or in such other form as Bassett may prescribe. The Option may not be exercisable for less than 100 Shares at any time unless such lesser number is the total number of Shares for which the Option is exercisable at such time. The full aggregate Option Price of the Shares covered by the exercise of this Option shall be paid in cash or equivalent or, subject to Bassett’s consent, in any other manner permitted under the Plan. Arrangements satisfactory to Bassett for the payment of applicable
withholding taxes upon exercise of the Option must also be made at the time of exercise in any manner that is permitted under the Plan. The Option may not be exercised for fractional Shares and no fractional Share shall be issued.
5.
No person entitled to exercise the Option shall have any rights as a shareholder of Bassett with respect to the Shares covered by the Option except to the extent that Shares are issued to such person upon the due exercise of the Option and all conditions (including compliance with all applicable securities laws) with respect to the issuance of such Shares have been met.
6.
The Option may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and may be exercised during your lifetime only by you. You agree as a condition to receiving this award to comply with the ownership requirements and other conditions of the Company’s Stock Ownership Guidelines (the “Guidelines”) with respect to the total number of shares of Common Stock you acquire upon exercising this Option after vesting of this award. xxxx
7.
You agree that, upon request, you will furnish a letter agreement providing (i) that you will not distribute or resell in violation of the Securities Act of 1933, as amended, any of the Shares acquired upon your exercise of the Option, (ii) that you indemnify and hold Bassett harmless against all liability for any such violation and (iii) that you will accept all liability for any such violation.
8.
The Option (including the Option Price and number of Shares covered by the Option) is subject to adjustment in the event of a stock split or other similar change in capital structure of Bassett as provided in the Plan. The existence of this Option shall not affect in any way the right or power of Bassett or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in Bassett’s capital structure or its business, or any merger or consolidation of Bassett, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the dissolution or liquidation of Bassett, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
9.
Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, by fax or by mail, postage prepaid, to such address and directed to such person as Bassett may notify you from time to time; and to you at your address as shown on the records of Bassett from time to time, or at such other address as you, by notice to Bassett, may designate in writing from time to time.
10.
The terms and provisions of the Plan are incorporated into this Agreement by reference. In the case of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.
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11.
Neither the Option nor this Agreement constitutes an employment contract between you and Bassett or any Subsidiary, nor does either the Option or this Agreement guarantee you employment with Bassett or any Subsidiary for any length of time.
12.
This Agreement shall be governed by the laws of the Commonwealth of Virginia without regard to the conflict of law principles of any jurisdiction.
13.
This Agreement shall be binding upon and inure to the benefit of your legatees, distributees, and personal representatives and any successors of Bassett.
14.
By signing this Agreement you acknowledge having received a copy of the Prospectus and the Plan and agree to be bound by all of the terms and conditions thereof.
IN WITNESS WHEREOF, Bassett has caused this Stock Option Award Agreement to be executed by its duly authorized officer, and you have hereunto set your hand and seal, all effective as of the Grant Date stated above.
Pursuant to the Bassett Furniture Industries, Incorporated 2010 Employee Stock Plan and the Stock Option Award Agreement dated July 13, 2011, I hereby elect to exercise my option to the extent required to purchase shares of $5.00 par value Common Stock of Bassett Furniture Industries, Incorporated, at and for the price of $8.02 per share.
I enclose herewith a check in the sum of $ which is payment in full for the shares of Common Stock and for the applicable withholding taxes associated with the exercise. You are requested to direct your transfer agent for Common Stock to make a book entry record showing ownership of the shares in my name or in the name of me and my spouse in accordance with the following instructions:
I hereby represent that I have received a copy of the Annual Report of the Company for its most recent fiscal year.
Very truly yours,
Dated:
Optionee’s signature
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Dates Referenced Herein and Documents Incorporated by Reference