Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34 Filing Table of Contents
Document/ExhibitDescriptionPagesSize
1: 10-K Annual Report HTML 461K
2: EX-10.(D) Amended and Restated 2004 Associate Stock Purchase HTML 126K Plan
3: EX-10.(E) Amended and Restated Stock Incentive Plan of 2015 HTML 129K
4: EX-10.(I).1 Amended Schedule Executing Post-Termination HTML 37K
Agreement
5: EX-10.(J) Amended and Restated Walmart Deferred Compensation HTML 156K
Matching Plan
6: EX-10.(O) Form of Stock Incentive Plan - Share-Settled HTML 118K
Performance Unit
7: EX-10.(P) Form of Stock Incentive Plan - Share-Settled HTML 118K
Performance Unit (Wmt Canada)
8: EX-10.(Q) Form of Stock Incentive Plan - Restricted Stock HTML 70K
Award
9: EX-10.(R) Form of Stock Incentive Plan - Performance-Based HTML 71K
Restricted Stock Award
10: EX-10.(S) Form of Stock Incentive Plan - Share-Settled HTML 106K
Restricted Stock Unit (Wmt Canada)
12: EX-13 Portions of Our Annual Report to Shareholders HTML 1.01M
13: EX-21 List of the Company's Significant Subsidiaries HTML 36K
14: EX-23 Consent of Independent Registered Public HTML 38K
Accounting Firm
11: EX-12.1 Statement Regarding Computation of the Earnings to HTML 43K
Fixed Charges Ratios
15: EX-31.1 Chief Executive Officer Section 302 Certification HTML 35K
16: EX-31.2 Chief Financial Officer Section 302 Certification HTML 35K
17: EX-32.1 Chief Executive Officer Section 906 Certification HTML 30K
18: EX-32.2 Chief Financial Officer Section 906 Certification HTML 30K
25: R1 Document And Entity Information HTML 56K
26: R2 Consolidated Statements of Income HTML 123K
27: R3 Consolidated Statements of Comprehensive Income HTML 77K
28: R4 Consolidated Balance Sheets HTML 125K
29: R5 Consolidated Statement Of Shareholders' Equity and HTML 91K
Redeemable Noncontrolling Interest
30: R6 Consolidated Statement Of Shareholders' Equity and HTML 31K
Redeemable Noncontrolling Interest (Parenthetical)
31: R7 Consolidated Statements of Cash Flows HTML 120K
32: R8 Summary of Significant Accounting Policies HTML 145K
33: R9 Net Income Per Common Share HTML 63K
34: R10 Shareholders' Equity HTML 107K
35: R11 Accumulated Other Comprehensive Income (Loss) HTML 74K
36: R12 Accrued Liabilities HTML 44K
37: R13 Short-term Borrowings and Long-term Debt HTML 206K
38: R14 Fair Value Measurements HTML 67K
39: R15 Derivative Financial Instruments HTML 113K
40: R16 Taxes HTML 157K
41: R17 Contingencies HTML 62K
42: R18 Commitments HTML 57K
43: R19 Retirement-Related Benefits HTML 51K
44: R20 Acquisitions, Disposals, and Related Items HTML 34K
45: R21 Segments HTML 150K
46: R22 Subsequent Event HTML 36K
47: R23 Quarterly Financial Data (Unaudited) HTML 122K
48: R24 Summary of Significant Accounting Policies HTML 203K
(Policies)
49: R25 Summary of Significant Accounting Policies HTML 97K
(Tables)
50: R26 Net Income Per Common Share (Tables) HTML 61K
51: R27 Shareholders' Equity (Tables) HTML 98K
52: R28 Accumulated Other Comprehensive Income (Loss) HTML 70K
(Tables)
53: R29 Accrued Liabilities (Tables) HTML 43K
54: R30 Short-term Borrowings and Long-term Debt (Tables) HTML 212K
55: R31 Fair Value Measurements (Tables) HTML 62K
56: R32 Derivative Financial Instruments (Tables) HTML 90K
57: R33 Taxes (Tables) HTML 153K
58: R34 Contingencies Schedule of FCPA Expenses (Tables) HTML 41K
59: R35 Commitments (Tables) HTML 54K
60: R36 Retirement-Related Benefits (Tables) HTML 45K
61: R37 Segments (Tables) HTML 145K
62: R38 Subsequent Event (Tables) HTML 35K
63: R39 Quarterly Financial Data (Unaudited) (Tables) HTML 120K
64: R40 Summary of Significant Accounting Policies HTML 58K
(Details)
65: R41 Summary of Significant Accounting Policies HTML 58K
(Schedule of Property, Plant and Equipment)
(Details)
66: R42 Summary of Significant Accounting Policies HTML 45K
(Schedule of Goodwill) (Details)
67: R43 Significant Accounting Policies (Schedule of HTML 37K
Deferred Membership Fee) (Details)
68: R44 Net Income Per Common Share (Details) HTML 58K
69: R45 Shareholders' Equity (Narrative)(Details) HTML 81K
70: R46 Shareholders' Equity (Schedule of share-based HTML 39K
compensation expense) (Details)
71: R47 Shareholders' Equity (Schedule of Activity) HTML 55K
(Details)
72: R48 Shareholders' Equity (Schedule of Fair Value of HTML 41K
Restricted Stock) (Details)
73: R49 Shareholders' Equity (Schedule of share HTML 36K
repurchases) (Details)
74: R50 Accumulated Other Comprehensive Income (Loss) HTML 52K
(Details)
75: R51 Accrued Liabilities (Details) HTML 42K
76: R52 Short-term Borrowings and Long-term Debt (Details) HTML 54K
77: R53 Schedule of Short-Term Borrowings (Details) HTML 35K
78: R54 Schedule of Lines of Credit (Details) HTML 46K
79: R55 Schedule of Long-Term Debt (Details) HTML 70K
80: R56 Schedule of Debt Maturities (Details) HTML 48K
81: R57 Schedule of 2015 Debt Issuances (Details) HTML 57K
82: R58 Schedule of Fiscal Year 2016 and 2015 Debt HTML 94K
Maturities (Details)
83: R59 Fair Value Measurements (Notional Amounts And Fair HTML 53K
Values Of Interest Rate Swaps) (Details)
84: R60 Fair Value Measurements (Carrying Value And Fair HTML 39K
Value Of Long-Term Debt) (Details)
85: R61 Derivative Financial Instruments (Narrative) HTML 43K
(Details)
86: R62 Derivative Financial Instruments (Balance Sheet HTML 59K
Classification Of Financial Instruments) (Details)
87: R63 Taxes (Details) HTML 60K
88: R64 Taxes Schedule of Income from Continuing HTML 36K
Operations (Details)
89: R65 Taxes Schedule of Income Tax Provision (Details) HTML 59K
90: R66 Taxes Schedule of Income Tax Rate (Details) HTML 47K
91: R67 Taxes Schedule of Deferred Tax Balances (Details) HTML 61K
92: R68 Taxes Schedule of Deferred Taxes in the Balance HTML 58K
Sheet (Details)
93: R69 Taxes Schedule of Tax Reconciliation (Details) HTML 44K
94: R70 Contingencies (Details) HTML 40K
95: R71 Contingencies Schedule of FCPA Expenses (Details) HTML 35K
96: R72 Commitments (Details) HTML 45K
97: R73 Commitments Aggregate minimum rentals under HTML 75K
non-cancelable leases (Details)
98: R74 Retirement-Related Benefits (Details) HTML 47K
99: R75 Retirement-Related Benefits Schedule of HTML 41K
Compensation Expense (Details)
100: R76 Acquisitions, Disposals, and Related Items HTML 48K
Acquisitions, Disposals, and Related Items
(Details)
101: R77 Segment Reconciliation (Details) HTML 72K
102: R78 Segment Revenues and Long-Lived Assets (Details) HTML 43K
103: R79 Subsequent Event (Details) HTML 36K
104: R80 Quarterly Financial Data (Unaudited) (Details) HTML 74K
106: XML IDEA XML File -- Filing Summary XML 176K
105: EXCEL IDEA Workbook of Financial Reports XLSX 111K
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‘EX-10.(D)’ — Amended and Restated 2004 Associate Stock Purchase Plan
By Termination of Employment Other Than Due to Death of Participant
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5.3.
By
Transferring Employment from the Company or a Participating Employer to an Affiliate
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5.4.
Termination Due to Death of Participant
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VI.
AWARD
PROGRAM
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6.1.
Scope of the Award Program
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6.2.
Great Job Component
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6.3.
Outstanding
Performance Component
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VII.
ADMINISTRATION
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7.1.
Committee
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7.2.
Powers
of the Committee
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VIII.
AMENDMENT & TERMINATION
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8.1.
Right
to Amend or Terminate
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8.2.
Limitation on Right to Amend or Terminate
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IX.
MISCELLANEOUS
PROVISIONS
12
9.1.
Successors
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9.2.
Severability
12
9.3.
Requirements
of Law
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9.4.
Securities Law Compliance
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9.5.
No Rights as a Stockholder
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9.6.
Nature
of Payments
13
9.7.
Non-Exclusivity of the Plan
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9.8.
Military Service
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9.9.
Construction
13
9.10.
Headings
13
9.11.
Stockholder Approval
13
9.12.
Taxes
13
9.13.
Company-Associate Relationships
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9.14.
Governing Law
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iii
WAL-MART
STORES, INC.
2004 ASSOCIATE STOCK PURCHASE PLAN
I. DEFINITIONS
1.1. “Account” shall mean a Participant’s account which holds his or her shares of Stock pursuant to the Plan.
1.2. “Account Administrator” shall mean the third party administrator for the Accounts as may be from time to time appointed by the Committee.
1.3. “Account Closure” shall mean the closing of a Participant’s Account by one of the following means:
(a)“Automatic
Account Closure” shall mean the closure of a Participant’s Account by the Committee (or the Account Administrator if applicable) at the time such Participant’s Account balance contains no shares (or fractional shares) of Stock on or after his or her termination of employment with the Employer.
(b)“Participant Account Closure” shall mean the closure of a Participant’s Account pursuant to a request by the Participant to have his or her Account closed and to have all Stock or proceeds from the sale thereof distributed.
1.4. “Affiliate” shall mean any entity that is more than 50% owned or controlled, directly or indirectly, by the
Company.
1.5. “Associate” shall mean any common law employee of an Employer, but shall not include independent contractors. An individual classified by the Employer as either an independent contractor or an individual who provides services to the Employer through another entity shall not be eligible to participate in this Plan during the period that the individual is so classified, even if such individual is later retroactively reclassified as an Associate during all or any part of such period pursuant to applicable law or otherwise.
1.6. “Award Program” shall mean a program established by the Company or
a Participating Employer that results in its Associates receiving shares of Stock as an award for job performance.
1.7. “Board” shall mean the Board of Directors of the Company.
1.8. “Committee” shall mean the Stock Option Committee of the Board, or such other committee as may be appointed by the Board.
1.9. “Company” shall mean Wal-Mart Stores, Inc., a Delaware corporation.
1.10.
“Contribution” shall mean any of the types of contributions that may be made to a Participant’s Account under the Plan, either by the Company, a Participating Employer or a Participant as set forth in Section III.
1.11. “Employer” shall mean the Company and its Affiliates.
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1.12. “Participant” shall mean any Associate of the
Company or a Participating Employer who satisfies the eligibility requirements in Section II and who has an Account established under the Plan, and Participant shall also include any former Associate of the Company or a Participating Employer who was a Participant in the Plan at the time of his or her termination of employment until such time as an Account Closure occurs.
1.13. “Participating Employer” shall mean an Affiliate whose participation in the Plan has been approved by the Committee. The Committee may require the Participating Employer to make corresponding contributions under the Plan in accordance with rules and procedures established by the Committee. The Committee, in its sole discretion, may terminate any such Affiliate’s Participating
Employer status at any time and the Participants’ Accounts will be treated as if such Participants had transferred employment to an Affiliate that is not a Participating Employer as described in Section 5.3 of the Plan.
1.14. “Payroll Deduction” shall mean the payroll deduction from a Participant’s biweekly or weekly regular compensation (including from vacation pay and any paid leave of absence) of an amount authorized by the Participant as a Payroll Deduction Contribution.
1.15. “Plan” shall mean the Wal-Mart Stores, Inc. 2004 Associate Stock Purchase Plan (formerly known as the Wal-Mart Stores, Inc. 1996 Associate Stock Purchase Plan), as amended, restated and renamed herein, or as it may
be further amended from time to time.
1.16. “Plan Year” shall mean April 1 of a calendar year to March 31 of the following calendar year, or such other period as set by the Committee.
1.17. “Section 16 Officers” shall mean those officers of the Company who are subject to subsection 16(a) of the Securities Exchange Act of 1934, as amended.
1.18. “Stock” shall mean the common stock, $.10 par value per share, of the
Company.
II. ELIGIBILITY
2.1. In General. All Associates (including Section 16 Officers) of the Company or a Participating Employer are eligible to participate in the Plan, subject to the following limitations:
(a)Associates who are restricted or prohibited from participating in the Plan under the applicable law of their state or country of residence may not participate in the Plan, except as may be provided in accordance with rules and procedures established by the Committee.
(b)Associates
of the Company and its affiliates who are members of a collective bargaining unit whose benefits were the subject of good faith collective bargaining are excluded from participation in the Plan.
(c)Participation by Associates of non-U.S. Participating Employers shall only be permitted upon approval by the Committee, which approval may be limited to groups or categories of Associates designated by the non-U.S. Participating Employer.
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(d)Section 16 Officers may be restricted in their ability to acquire or sell shares of Stock in order to comply with Section 16
of the Securities Exchange Act of 1934, as amended, in accordance with rules and procedures adopted by the Committee.
2.2. Leaves of Absence. Participants continue to be eligible to participate in the Plan while on a bona fide leave of absence from the Company or a Participating Employer in accordance with applicable policies of the Company or Participating Employer, or under such other circumstances with the approval of the Committee.
III. PLAN CONTRIBUTIONS
3.1. Shares
Available for Contributions. Subject to stockholder approval, as of February 1, 2004, 142,624,272 shares of Stock will be available for issuance under the Plan.
3.2. Plan Contributions. The definitions of the types of Contributions which may be made pursuant to the Plan are as follows (subject to the limits provided in Section 3.3 as applicable):
(a)“Award Contribution” means a contribution under the Plan on behalf of a Participant by the Company or a Participating Employer, as applicable, made pursuant to the Award
Program in the sole discretion of the Committee.
(b)“Matching Contribution” means a cash contribution to the Plan on behalf of a Participant by the Company or a Participating Employer, as applicable, which is equal to fifteen percent (15%) of the amount of the Participant’s Payroll Deduction (up to a maximum dollar limit).
(c)“Payroll Deduction Contribution” means a contribution to the Plan by a Participant pursuant to a valid authorization for a Payroll Deduction.
(d)“Voluntary
Contribution” means a contribution, if and to the extent permitted by the Committee from time to time, of shares of Stock or cash by the Participant to the Participant’s Account which is not made by Payroll Deduction.
3.3. Maximum Limits on Contributions.
(a)Matching Contributions and “Outstanding Performance” awards under the Award Program are subject to a maximum dollar limit for the Plan Year as set by the Committee from time to time in its discretion.
(b)During any Plan Year, the combination of Payroll Deduction Contributions and Voluntary Contributions made in cash (not Stock)
by a Participant shall not exceed $125,000.
3.4. Payroll Deductions.
(a)Subject to the Committee’s authority to adjust the following amounts, a Participant’s authorization for Payroll Deduction shall be for a minimum amount of $2.00 per
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biweekly pay period or $1.00 per weekly pay period, as applicable to the Participant, and such Payroll Deduction shall be in even multiples of $.50.
(b)A Participant’s request for
Payroll Deduction (or a request for a revision thereto) will become effective as soon as practicable after receipt of such request by the Company or the Participating Employer, as applicable.
(c)A Participant’s Payroll Deduction authorization may be revised or terminated at any time by the Participant’s request to the Company or the Participating Employer, as applicable.
(d)A Participant’s authorization for Payroll Deduction shall remain effective until the earlier of the Participant’s (1) request to revise or terminate the Payroll Deduction authorization or (2) termination of
employment with the Company or a Participating Employer, subject to Section 8 of the Plan.
(e)All requests to initiate, revise or terminate an authorization for Payroll Deduction as described in this Section 3.4 shall be made in writing or in such other form acceptable to the Committee or its delegate from time to time.
(f)The Vice President, Retirement Savings Plans, in his or her discretion, may prohibit associate stock purchase deductions from the final paycheck of a Participant. This Section applies to the Participant’s final paycheck even if the Participant made a valid deduction election applicable to prior paychecks.
3.5. Matching
Contributions. The Company or Participating Employer, as applicable, shall make Matching Contributions as provided under the Plan and subject to the limits set forth in Section 3.3.
3.6. Award Contributions. Award Contributions shall be made, in the Committee’s sole discretion, by either (1) the Company or the Participating Employer, as applicable, remitting to the Account Administrator on behalf of the Participant funds sufficient to purchase any shares or fractional shares of Stock that have been granted to such Participant under the Award Program or (2) the Participant receiving the Award Contribution directly as a certificate for a share
or shares (as applicable) of Stock.
3.7. Voluntary Contributions. Participants may make Voluntary Contributions to the Plan subject to the terms and limitations described herein or that may be prescribed by the Committee from time to time.
3.8. Remittance of Contributions.
(a)The Company or a Participating Employer, as applicable, will forward the total of all Payroll Deductions for the applicable payroll period along with the corresponding Matching Contributions, a list of Participants for whom
the Contributions are being made and the amount allocable to each such Participant’s Account to the Account Administrator as soon as practicable.
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(b)Voluntary Contributions, whether made in cash or shares of Stock, shall be remitted to the Account Administrator directly by the Participant.
(c)As soon as practicable following a grant of an Award Contribution (for purposes of the “Great Job” component of the Award Program, a “grant” shall refer to the date on which the Associate tenders his or her four Great Job buttons to the Company in exchange
for a share of Stock), an Award Contribution shall be made in the Committee’s sole discretion as described in Section 3.6 of the Plan.
(d)Prior to the time a Participant’s Payroll Deduction and corresponding Matching Contribution is distributed to the Account Administrator, such amounts are considered general assets of the Company or Participating Employer (as applicable) and, as such, are subject to the claims of the Company’s or Participating Employer’s (as applicable) creditors in the event of insolvency or bankruptcy. In addition, no interest shall be paid on such amounts and all Participants assume the risk of fluctuations in the value or market price of Stock.
IV. ACCOUNT
PURCHASES, MAINTENANCE & SALES
4.1. Account Establishment. The Account Administrator shall establish an Account in accordance with the Plan for any Associate who becomes a Participant. Upon the Committee’s (or its delegate’s) request, the Account Administrator shall establish an Account for an Associate who is to be awarded shares under an Award Program and who is not then a Participant.
4.2. Share Purchases. No later than five business days after the Account Administrator receives the remittance of funds for Contributions (including Voluntary Contributions made in cash) made to the Plan, the Account Administrator shall purchase shares of Stock from the
Company, a national stock exchange or in a combination of the foregoing. Notwithstanding the foregoing, the Committee may from time to time provide instructions to the Account Administrator with respect to the purchase of such shares of Stock but, absent such instructions, the Account Administrator shall determine the source of such Stock purchases in its discretion.
(a)In the case of purchases from the Company of authorized but unissued or treasury shares of Stock, the price of such shares is equal to the Volume Weighted Average Price (VWAP) as reported on the New York Stock Exchange - Composite Transactions on the relevant date of purchase; provided, however, that the Committee may, in its discretion, designate some other methodology for determining the fair market
value of such shares of Stock purchased from the Company.
(b)The Account Administrator’s purchase of shares of Stock from a national stock exchange and the price per share shall be in accordance with rules and procedures established by the Committee from time to time.
(c)As determined in the discretion of the Account Administrator (in accordance with any applicable rules and procedures of the Committee), funds received as Voluntary Contributions may be bundled into a group for the purpose of purchasing shares of Stock and such shares may be purchased over a time period that is greater than one day. If such shares of Stock are purchased as part of a bundled group,
a Participant’s purchase price for each
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share of Stock shall be the average price of all shares of Stock purchased within that group as determined by the Account Administrator.
(d)No provision of this Plan shall limit the ability of the Committee to implement a real-time trading (or other) mechanism for the purchase or sale of shares of Stock under the Plan and, to the extent determined by the Committee, shall replace any other methodology for valuing and allocating shares of Stock purchased or sold under the Plan.
4.3. Share Purchases for Non-U.S.
Participants. With respect to non-U.S. Participants, the amounts (1) withheld from such a Participant’s compensation pursuant to an authorization for Payroll Deduction or (2) contributed as either a Matching Contribution or an Award Contribution made directly to a Participant’s Account shall be converted from the applicable foreign currency to U.S. dollars for the purpose of purchasing shares of Stock, and such conversion shall be pursuant to the exchange rate published in The Wall Street Journal on a date as soon as practicable prior to the effective date of the cash transfer from the Company or the Participating Employer, as applicable, to the Account Administrator. All such Participants assume the risk of fluctuations in the value or market price of shares of Stock and applicable currency exchange rates. With respect to non-U.S. Participants making Voluntary
Contributions in cash, such amounts must be tendered to the Account Administrator in U.S. dollars unless otherwise determined by the Committee.
4.4. Allocation to Accounts. The number of shares (whole and fractional shares) of Stock shall depend upon the purchase price as described in Section 4.2 at the time such purchases are made. Purchases of Stock will be allocated by the Account Administrator based upon the applicable purchase price to each applicable Participant’s Account in proportion to the respective amount of Contributions received for each Participant’s Account. Allocations of Stock will be made in full shares and in fractional interests in shares to the thousandths of a share.
4.5. Share Ownership. At
the time shares of Stock are credited to a Participant’s Account, he or she will acquire full ownership of all such shares (as well as any fractional interests) of Stock.
(a)All shares of Stock will be registered in the name of the Account Administrator and will remain so registered until delivery is requested by the Participant. The Participant may request from the Account Administrator that a certificate for any or all full shares of Stock be delivered to the Participant at no cost to such Participant at any time.
(b)The Account Administrator shall cause to be delivered at no cost to each Participant as promptly as practicable, by mail or otherwise, all notices of meetings, proxy statements and other material distributed by the
Company to its stockholders. The full shares of Stock in each Participant’s Account shall be voted in accordance with the Participant’s signed proxy instructions timely delivered to the Account Administrator. In the event that a Participant does not timely provide the Account Administrator with proxy voting instructions, the Account Administrator may direct the voting of such shares of Stock held in an Account to the extent such action or direction would comply with applicable law and any applicable listing standards of a national stock exchange.
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(c)A Participant may not assign or hypothecate any interest in the Plan; provided, however, that upon purchase of shares under the Plan, such shares may be
sold, assigned, pledged, hypothecated or otherwise dealt with as would be the case with respect to any other shares of Stock the Participant might otherwise own.
(d)Neither the Company nor any Participating Employer may make any deductions from amounts properly credited to a Participant’s Account. Neither the Company nor any Participating Employer shall have any security interest on the shares of Stock held in a Participant’s Account. Notwithstanding the foregoing, a lender may have a security interest on the shares of Stock held in a Participant’s Account if the Participant has pledged such Stock as collateral in connection with a line of credit that may be obtained by certain Participants
(other than Section 16 Officers) through the Stock Secured Line of Credit Program.
4.6. Account Statements. Each Participant will be sent at least an annual statement reflecting all Account activity during the period covered by the statement.
4.7. Risk of Loss. There is no guarantee of the value or market price of shares of Stock acquired pursuant to the Plan. In seeking potential benefits of Stock ownership, each Participant bears the risks associated with Plan participation and ownership of Stock, including the risk of any decrease in the value of market price of shares of Stock acquired pursuant to the Plan.
4.8. Commission
& Maintenance Charges.
(a)No brokerage commissions are charged to Participants for purchases of Stock under the Plan, however, brokerage commissions and other applicable fees shall be charged to the Participant for all sales of Stock from his or her Account. Such commissions and other applicable fees for sales of Stock held in a Participant’s Account shall be at the rates posted by the Account Administrator, which may be changed from time to time by the Account Administrator with approval of the Committee (or its delegate).
(b)The Company or Participating Employer, as applicable, shall pay the applicable annual maintenance fees (if
any) for the Participant’s Account until the earlier of (1) a Participant Account Closure occurs or (2) the Participant incurs a termination of employment with the Company or Participating Employer, as applicable, subject to Section 5.3. Any services requested of the Account Administrator by the Participant that are not covered by the Company’s arrangement with the Account Administrator shall be paid for solely by the Participant.
(c)At such time as the Company or Participating Employer, as applicable, ceases to pay the applicable Account maintenance fees as set forth subsection (b) above, the Participant
shall become responsible for any applicable Account maintenance fees. In this case, annual maintenance fees and other applicable charges to the Account shall be paid from time to time to the Account Administrator automatically from the proceeds of a sale of a sufficient number of shares of Stock held in the Participant’s Account until the earlier of a Participant Account Closure or an Automatic Account Closure occurring.
4.9. Account Sales. The Participant may instruct the Account Administrator in writing (or any other method acceptable to the Committee or its delegate) at any time to sell any portion or all of his or her full shares of Stock and the fractional interest in any shares of Stock allocable
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to
his or her Account, and the timing for such sale of Stock shall be in accordance with rules and procedures established by the Committee from time to time.
(a)The sale price for a share of Stock under the Plan shall be the average price of all shares of Stock sold by the Account Administrator on the date of the Participant’s sale transaction; provided, however, that the Committee reserves the right to implement a real‑time trading or similar mechanism for Participants’ sales of shares of Stock from their respective Accounts under the Plan and the valuation of shares of Stock would be in accordance with any such mechanism.
(b)Upon such sale, the Account Administrator shall mail to the Participant a check (or such method of payment as approved
by the Committee or its delegate) for the proceeds, less the brokerage commission, and other normal charges such as sales fees, which are payable by the Participant.
(c)Such instruction to the Account Administrator, or a request for delivery of Stock certificates held in the Participant’s Account, will not affect the Participant’s status as a Participant under the Plan unless an Account Closure occurs.
(d)With respect to non-U.S. Participants, shares of Stock are sold or traded in U.S. dollars and such amounts can be converted for the purpose of remitting the proceeds to the non-U.S. Participant. If the proceeds from the sale of shares of Stock held in the Participant’s Account are converted, such conversion shall be made pursuant to the exchange
rate published in The Wall Street Journal on the date such transaction is executed. All such Participants assume the risk of fluctuations in the value or market price of shares of Stock and applicable currency exchange rates.
V. ACCOUNT CLOSURE & TERMINATION OF EMPLOYMENT
5.1. Account Closure. A Participant who elects to discontinue Payroll Deductions under the Plan shall continue to be a Participant until the earlier of a Participant Account Closure or an Automatic Account Closure occurring. In connection with a Participant Account Closure, the Participant must elect to have his or her Account fully distributed in either (1) Stock (except that the value of any fractional shares of Stock
will be distributed in cash less any applicable fees) or (2) cash by directing all full shares (and fractional interests) of Stock to be sold with the proceeds, less applicable brokerage commissions and other applicable fees, being distributed.
5.2. By Termination of Employment Other Than Due to Death of Participant. The Account of a Participant who incurs a termination of employment (other than by reason of death) with the Company or a Participating Employer will continue to be maintained with the annual fees and any other applicable charges being paid by the Participant in accordance with Section 4.8(c) of the Plan.
5.3. By Transferring
Employment from the Company or a Participating Employer to an Affiliate. A Participant who transfers employment from the Company or a Participating Employer to an Affiliate who does not sponsor or participate in the Plan may continue to have his or her Account maintained at the expense of the Company while still employed with an Affiliate until the earlier of a Participant Account Closure or an Automatic Account Closure occurring (provided that such Automatic Account Closure can only occur following termination
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of
employment with such Affiliate). In connection with a Participant Account Closure, the Participant must elect to have his or her Account fully distributed in either (1) Stock (except that the value of any fractional shares of Stock will be distributed in cash less any applicable fees) or (2) cash by directing all full shares (and fractional interests) of Stock to be sold with the proceeds, less applicable brokerage commissions and other applicable fees, being distributed. Such Participant shall no longer be eligible to make or receive Contributions to the Plan (including by Payroll Deduction or Voluntary Contribution).
5.4. Termination Due to Death of Participant. Following a Participant’s death, the Company or Participating Employer, as applicable,
shall cease making Payroll Deductions and Matching Contributions to such Participant’s Account as soon as practicable. In addition, as soon as practicable following the Participant’s death, the Account Administrator will distribute the proceeds of the deceased Participant’s Account less any applicable fees in accordance with rules and procedures established by the Committee (which may include a designation by a Participant of a beneficiary or a joint tenant with respect to a Participant’s Account) and, in the absence of applicable rules and procedures (or such designations), to the Participant’s estate.
VI. AWARD PROGRAM
6.1. Scope of the Award Program. The Award Program is designed to provide an incentive to Associates of the
Company and Participating Employers who provide exceptional customer service and job performance. Awards under the Award Program are not intended to be given to those who satisfy, but do not exceed, expectations. The Award Program includes a “Great Job” component and an “Outstanding Performance” component.
6.2. Great Job Component. Awards under the Great Job component consist of “Great Job” buttons, which can be worn by Associates while at work.
(a)Great Job buttons are awarded by management of the Company or Participating Employers, as applicable.
(b)Once
an Associate earns four “Great Job” buttons, he or she is eligible to receive one (1) share of Stock and such Participant will be given a new button signifying that he or she is a “Great Job Stockholder” Associate. As described in Section 3.6 of the Plan, the Committee may, in its discretion, issue the award of Stock under the Award Program to a Participant’s Account under the Plan instead of issuing the Stock certificate directly.
(c)Notwithstanding anything herein to the contrary, the Great Job component of the Award Program is discontinued effective March 9, 2007, with respect to associates in the United States and effective May 1, 2007, with respect to associates in Canada, and no additional Great Job buttons shall be awarded from and after
such date; provided, however, that the Stock Option Committee is authorized to discontinue the issuance of the Great Job buttons to associates in Canada as of any earlier appropriate date. Associates may voluntarily surrender Great Job buttons at any time during the period March 9, 2007 through August 31, 2008 and shall receive one (1) share of Stock for each four (4) Great Job buttons surrendered, or a proportionate fractional share of Stock for surrender of less than four (4) Great Job buttons. Any Great Job buttons not voluntarily surrendered during this period shall be cancelled on September 1, 2008,
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and no additional Stock
shall be issued under this Section 6.2 of the Award Program on or after such date.
6.3. Outstanding Performance Component. An “Outstanding Performance” award is an award of Stock to an Associate in recognition of the individual’s consistently outstanding performance in his or her specific job-related roles over a month, a quarter, or a year.
(a)Associates who receive “Outstanding Performance” awards may either be issued certificates for shares of Stock or, at the discretion of the Committee, the Company (or Participating Employer) may have the Account Administrator purchase shares of Stock to be credited to the Participant’s
Account as described in Section 3.6 of the Plan.
(b)“Outstanding Performance” awards are either approved directly by the Committee or by its delegate in accordance with rules and procedures established by the Committee, and are subject to individual maximum dollar limitations as set by the Committee from time to time.
VII. ADMINISTRATION
7.1. Committee.
(a)Subject to Section 7.2, the Plan shall be administered by the Committee.
(b)The
Committee may delegate to officers or managers of the Company or any Affiliate the authority, subject to such terms as the Committee shall determine, to perform specified functions under the Plan. The Committee also may revoke any such delegation of authority at any time.
7.2. Powers of the Committee. Subject to and consistent with the provisions of the Plan, the Committee has full and final authority and sole discretion as follows:
(a)to determine when, to whom and in what types and amounts Contributions should be made;
(b)to
make Contributions to eligible Associates in any number, and to determine the terms and conditions applicable to each Contribution;
(c)to determine whether any terms and conditions applicable to a Contribution have been satisfied;
(d)to set minimum and maximum dollar, share or other limitations on the various types of Contributions under the Plan;
(e)to determine whether an Affiliate should be designated as a Participating Employer and whether an Affiliate’s Participating Employer status should be terminated;
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(f)to
determine whether Associates of non-U.S. Participating Employers should be eligible to participate in the Plan;
(g)to construe and interpret the Plan and to make all determinations, including factual determinations, necessary or advisable for the administration of the Plan;
(h)to make, amend, suspend, waive and rescind rules and regulations relating to the Plan (including, but not limited to, such rules and regulations that would allow designations for beneficiaries and/or joint tenants to be made by Participants in connection with Accounts under the Plan);
(i)to appoint such agents as the Committee may deem necessary or advisable
to administer the Plan;
(j)to correct any defect or supply any omission or reconcile any inconsistency, and to construe and interpret the Plan, the rules and regulations, and award agreements or any other instrument entered into or relating to a Contribution under the Plan; and
(k)to take any other action with respect to any matters relating to the Plan for which it is responsible and to make all other decisions and determinations as may be required under the terms of the Plan or as the Committee may deem necessary or advisable for the administration of the Plan.
Any action of the Committee with respect to the Plan shall be final, conclusive and binding
on all persons, including the Company, its Affiliates, any Associate, any person claiming any rights under the Plan from or through any Participant, and stockholders, except to the extent the Committee may subsequently modify, or take further action not consistent with, its prior action. If not specified in the Plan, the time at which the Committee must or may make any determination shall be determined by the Committee, and any such determination may thereafter be modified by the Committee. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee.
VIII. AMENDMENT & TERMINATION
8.1. Right to Amend
or Terminate. The Board, or a duly authorized committee thereof, reserves the right to amend, modify, suspend or discontinue the Plan at any time in its sole discretion without the approval of the Company’s stockholders, except that (a) any amendment or modification shall be subject to the approval of the Company’s stockholders if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the shares of Stock may then be listed or quoted, and (b) the Board may otherwise, in its discretion, determine to submit other such amendments or modifications to stockholders for approval.
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8.2. Limitation
on Right to Amend or Terminate. Any such amendment, modification, suspension or termination will not result in the forfeiture of (1) any funds contributed but not yet invested in the Participant’s Account, (2) any shares (or fractional interests) of Stock purchased on behalf of the Participant under the Plan, or (3) any dividends or other distributions in respect of such shares of that are declared subsequent to a Participant’s Contribution but prior to the effective date of the amendment, modification, suspension or termination of the Plan.
IX. MISCELLANEOUS PROVISIONS
9.1. Successors. All obligations of the Company under the Plan
with respect to Contributions made hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise of all or substantially all of the business and/or assets of the Company.
9.2. Severability. If any part of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any other part of the Plan. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part
of a Section to the fullest extent possible while remaining lawful and valid.
9.3. Requirements of Law. The granting of awards, the making of Contributions, and the delivery of shares of Stock under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any provision of the Plan, Participants shall not be entitled to receive benefits under the Plan, and the Company (and any Affiliate) shall not be obligated to deliver any shares of Stock or deliver benefits to a Participant, if such delivery would constitute a violation by the Participant or the
Company or any of its Affiliates of any applicable law or regulation.
9.4. Securities Law Compliance.
(a)If the Committee deems it necessary to comply with any applicable securities law, or the requirements of any stock exchange upon which shares of Stock may be listed, the Committee may impose any restriction on Contributions or shares of Stock acquired pursuant to Contributions under the Plan as it may deem advisable. All certificates for shares of Stock delivered under the Plan pursuant to any Contribution shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock
exchange upon which shares of Stock are then listed, any applicable securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. If so requested by the Company, the Participant shall make a written representation to the Company that he or she will not sell or offer to sell any shares of Stock unless a registration statement shall be in effect with respect to such shares of Stock under the Securities Act of 1993, as amended, and any applicable state securities law or unless he or she shall have furnished to the Company, in form and substance satisfactory to the
Company, that such registration is not required.
(b)If the Committee determines that the nonforfeitability of, or delivery of benefits pursuant to, any Contribution would violate any applicable provision of securities laws or
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the listing requirements of any national securities exchange or national market system on which are listed any of the Company’s equity securities, then the Committee may postpone any such nonforfeitability or delivery, as applicable, but the Company shall use all reasonable
efforts to cause such nonforfeitability or delivery to comply with all such provisions at the earliest practicable date.
9.5. No Rights as a Stockholder. No Participant shall have any rights as a stockholder of the Company with respect to the shares of Stock which may be deliverable to the Participant’s Account in connection with a Contribution (other than a Voluntary Contribution of previously‑owned shares of Stock) under the Plan until such shares of Stock have been credited to his or her Account or have been delivered to him or her.
9.6. Nature of Payments. Matching Contributions and Award Contributions
shall be special incentive payments to the Participant and shall not be taken into account in computing the amount of salary or compensation of the Participant for purposes of determining any pension, retirement, death or other benefit under (a) any pension, retirement, profit‑sharing, bonus, insurance or other employee benefit plan of the Company or any Affiliate, except as such plan shall otherwise expressly provide, or (b) any agreement between (i) the Company or any Affiliate and (ii) the Participant, except as such agreement shall otherwise expressly provide.
9.7. Non-Exclusivity of the Plan. Neither the adoption of the Plan by the Board nor its submission
to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other compensatory arrangements for Associates as it may deem desirable.
9.8. Military Service. The Plan shall be administered in accordance with Section 414(u) of the Internal Revenue Code and the Uniformed Services Employment and Reemployment Rights Act of 1994.
9.9. Construction. The following rules of construction will apply to the Plan: (a) the word “or” is disjunctive but not necessarily exclusive, and (b) words in the singular include the plural, words in the
plural include the singular, and words in the neuter gender include the masculine and feminine genders and words in the masculine or feminine gender include the other neuter genders.
9.10. Headings. The headings of articles and sections are included solely for convenience of reference, and if there is any conflict between such headings and the text of this Plan, the text shall control.
9.11. Stockholder Approval. All Contributions made on or after the effective date of the amended and restated Plan and prior to the date the Company’s stockholders approve the amended and restated Plan are expressly conditioned
upon and subject to approval of the amended and restated Plan by the Company’s stockholders.
9.12. Taxes. All Matching Contributions and Award Contributions are subject to withholding for applicable federal, state and local income taxes and will be reported as wage income by the Company. When a Participant authorizes a Payroll Deduction of a specific
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amount, more than that amount will actually be withheld from his or her compensation to cover the withholding taxes due
on the Matching Contribution. The distribution of shares of Stock to Participants will not be a taxable event.
9.13. Company-Associate Relationships. Nothing contained in this Plan shall in any way affect the rights of the Company in its relationship with any Associate or affect the Company’s right to discharge any Associate or increase or reduce any Associate’s compensation.
9.14. Governing Law. This Plan shall be governed by the laws of the State of Arkansas, except to the extent it is governed by the federal securities
laws or the choice of laws provision contained in the Company’s agreement with the Account Administrator.
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Dates Referenced Herein and Documents Incorporated by Reference
