Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34 Filing Table of Contents
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1: 10-K Annual Report HTML 250K
2: EX-4.F Instrument Defining the Rights of Security Holders HTML 38K
3: EX-10.J Material Contract HTML 84K
4: EX-10.K Material Contract HTML 76K
5: EX-10.L Material Contract HTML 58K
6: EX-10.M Material Contract HTML 71K
7: EX-10.O Material Contract HTML 82K
8: EX-13 Annual or Quarterly Report to Security Holders HTML 1.65M
9: EX-21 Subsidiaries List HTML 34K
10: EX-23 Consent of Experts or Counsel HTML 33K
11: EX-31.A Certification -- §302 - SOA'02 HTML 38K
12: EX-31.B Certification -- §302 - SOA'02 HTML 38K
13: EX-32.A Certification -- §906 - SOA'02 HTML 32K
14: EX-32.B Certification -- §906 - SOA'02 HTML 32K
21: R1 Document and Entity Information HTML 58K
22: R2 Consolidated Statements of Comprehensive Income HTML 121K
23: R3 Consolidated Balance Sheets HTML 161K
24: R4 Consolidated Balance Sheets (Parenthetical) HTML 41K
25: R5 Consolidated Statements of Cash Flows HTML 138K
26: R6 Consolidated Statements of Shareholders' Deficit HTML 90K
27: R7 Consolidated Statements of Shareholders' Deficit HTML 31K
(Parenthetical)
28: R8 Nature of Operations and Summary of Significant HTML 133K
Accounting Policies
29: R9 Revenue Recognition HTML 232K
30: R10 Sale Leaseback Transactions Sale Leaseback HTML 43K
Transactions
31: R11 Equity Method Investment HTML 39K
32: R12 Other Gains and Charges HTML 103K
33: R13 Goodwill and Intangibles HTML 104K
34: R14 Accrued and Other Liabilities HTML 76K
35: R15 Income Taxes HTML 139K
36: R16 Debt HTML 66K
37: R17 Leases HTML 68K
38: R18 Fair Value Measurements HTML 55K
39: R19 Stock-Based Compensation HTML 74K
40: R20 Savings Plans HTML 36K
41: R21 Supplemental Cash Flow Information HTML 52K
42: R22 Commitments and Contingencies HTML 49K
43: R23 Segment Information HTML 189K
44: R24 Quarterly Results of Operations (Unaudited) HTML 107K
45: R25 Effect of New Accounting Standards HTML 41K
46: R26 Subsequent Events HTML 37K
47: R27 Nature of Operations and Summary of Significant HTML 169K
Accounting Policies (Policies)
48: R28 Nature of Operations and Summary of Significant HTML 63K
Accounting Policies (Tables)
49: R29 Revenue Recognition (Tables) HTML 236K
50: R30 Other Gains and Charges (Tables) HTML 65K
51: R31 Goodwill and Intangibles (Tables) HTML 105K
52: R32 Accrued and Other Liabilities (Tables) HTML 78K
53: R33 Income Taxes (Tables) HTML 138K
54: R34 Debt (Tables) HTML 61K
55: R35 Leases (Tables) HTML 63K
56: R36 Fair Value Measurements (Tables) HTML 42K
57: R37 Stock-Based Compensation (Tables) HTML 62K
58: R38 Supplemental Cash Flow Information (Tables) HTML 55K
59: R39 Segment Information (Tables) HTML 186K
60: R40 Quarterly Results of Operations (Unaudited) HTML 82K
(Tables)
61: R41 Nature of Operations and Summary of Significant HTML 127K
Accounting Policies (Narrative) (Details)
62: R42 Nature of Operations and Summary of Significant HTML 42K
Accounting Policies (Fair Value Assumptions Using
Black-Scholes Option-Pricing Model) (Details)
63: R43 Nature of Operations and Summary of Significant HTML 54K
Accounting Policies Schedule of Weighted Average
Number of Shares (Details)
64: R44 Revenue Recognition - Deferred Development and HTML 41K
Franchise Fees (Details)
65: R45 Revenue Recognition - Remaining Performance HTML 50K
Obligation, Expected Timing of Satisfaction
(Details)
66: R46 Revenue Recognition - Financial Statement Impact HTML 70K
of Transition to ASC 606 (Details)
67: R47 Revenue Recognition - Pro Forma Adjustments to HTML 148K
Condensed Consolidated Statement Statement of
Income (Unaudited) (Details)
68: R48 Revenue Recognition - Pro Forma Adjustment to HTML 147K
Condensed Consildated Balance Sheet (Unaudited)
(Details)
69: R49 Revenue Recognition - Pro Forma Adjustments to HTML 119K
Cash flows from Operating Activities (Unaudited)
(Details)
70: R50 SALE LEASEBACK TRANSACTIONS Sale Leaseback HTML 102K
Transactions - Additional Information (Details)
71: R51 Equity Method Investment (Narrative) (Details) HTML 52K
72: R52 OTHER GAINS AND CHARGES - Schedule Of Other Gains HTML 80K
And Charges (Details)
73: R53 Other Gains and Charges - Additional Information HTML 125K
(Details)
74: R54 Goodwill (Changes In Carrying Amount Of Goodwill) HTML 50K
(Details)
75: R55 Goodwill AND INTANGIBLES Schedule of Intangibles HTML 68K
(Details)
76: R56 GOODWILL AND INTANGIBLES Schedule of Intangibles HTML 53K
(Narrative) (Details)
77: R57 ACCRUED AND OTHER LIABILITIES - Schedule of Other HTML 86K
Accrued Liabilities (Details)
78: R58 Accrued and Other Liabilities (Other Liabilities) HTML 64K
(Details)
79: R59 Income Taxes (Income Before Provision For Income HTML 41K
Taxes) (Details)
80: R60 Income Taxes (Provision For Income Taxes From HTML 65K
Continuing Operations) (Details)
81: R61 Income Taxes (Reconciliation Between Reported HTML 52K
Provision For Income Taxes And Amount Computed By
Statutory Federal Income Tax Rate) (Details)
82: R62 Income Taxes (Deferred Income Tax Assets And HTML 88K
Liabilities) (Details)
83: R63 Income Taxes (Narrative for Deferred Income Taxes HTML 48K
and Tax Reform) (Details)
84: R64 Income Taxes (Reconciliation Of Unrecognized Tax HTML 43K
Benefits) (Details)
85: R65 Income Taxes Income Taxes (Narrative Details for HTML 39K
Unrecognized Tax Benefits) (Details)
86: R66 Debt (Long-Term Debt) (Details) HTML 58K
87: R67 Debt (Long-Term Debt Maturities Excluding Capital HTML 52K
Lease Obligations) (Details)
88: R68 Debt (Narrative) (Details) HTML 103K
89: R69 Leases (Narrative) (Details) HTML 43K
90: R70 Leases (Rent Expense Detail) (Details) HTML 42K
91: R71 Leases (Future Minimum Lease Payments) (Details) HTML 85K
92: R72 Leases Leases - Phantom (Details) HTML 32K
93: R73 Fair Value Measurements (Assets Measured At Fair HTML 56K
Value On Non-Recurring Basis) (Details)
94: R74 Fair Value Measurements (Other Financial HTML 49K
Instruments) (Details)
95: R75 Stock-Based Compensation (Narrative) (Details) HTML 70K
96: R76 Stock-Based Compensation (Transactions During HTML 93K
Fiscal 2019-Stock Options) (Details)
97: R77 Stock-Based Compensation (Transactions During HTML 66K
Fiscal 2019-Restricted Share Awards) (Details)
98: R78 Savings Plans (Narrative) (Details) HTML 51K
99: R79 Supplemental Cash Flow Information (Cash Paid For HTML 36K
Interest And Income Taxes) (Details)
100: R80 Supplemental Cash Flow Information (Non-Cash HTML 44K
Investing and Financing Activities) (Details)
101: R81 COMMITMENTS AND CONTINGENCIES Commitments and HTML 46K
Guarantees (Details)
102: R82 COMMITMENTS AND CONTINGENCIES COMMITMENTS AND HTML 46K
CONTINGENCIES Loss Contingencies (Details)
103: R83 COMMITMENTS AND CONTINGENCIES COMMITMENTS AND HTML 35K
CONTINGENCIES Phantom Information (Details)
104: R84 Segment Information (Schedule of Segment Reporting HTML 184K
Information, by Segment) (Details)
105: R85 Quarterly Results of Operations (Unaudited) HTML 63K
(Unaudited Consolidated Quarterly Results Of
Operations) (Details)
106: R86 Quarterly Results of Operations (Unaudited) HTML 72K
(Narrative) (Details)
107: R87 Effect of New Accounting Standards (Details) HTML 50K
108: R88 Subsequent Events (Details) HTML 64K
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Brinker International, Inc. (the “Company”), acting pursuant to Section 3 of the Brinker International, Inc. Stock Option and Incentive Plan (as amended, the “Plan”), hereby awards to you (the “Participant”) a grant of such number of Restricted Stock Units as specified in your award letter (the “Award”). For purposes of the Award, a “Restricted Stock Unit” means the right to receive a share of Stock, subject
to the satisfaction of all applicable terms and conditions. The Award is in all respects subject to the provisions of the Plan (the terms of which are incorporated herein by reference), these Award terms (the “Award Terms”) and your award letter.
1.Definitions. For purposes of the Award, the terms listed below are defined as follows:
a.Cause. The term “Cause” means one or more of the following:
(i)An act of fraud, misappropriation or embezzlement by the Participant in connection with the Company or a Related Company as determined by the affirmative vote of at least a majority
of the Board or executive committee thereof;
(ii)Gross mismanagement or gross neglect of the Participant’s duties to the Company or a Related Company and its policies, procedures or guidelines as determined by the affirmative vote of at least a majority of the Board or executive committee thereof; or
(iii)Conviction of the Participant by a court of competent jurisdiction of a felony.
b.Change in Control. The term “Change in Control” means:
(i)a sale, transfer or other conveyance of all or substantially all of the assets of the
Company on a consolidated basis; or
(ii)the acquisition of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) by any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company, directly or indirectly, of securities representing 50% or more of the total number of votes that may be cast for the election of directors of the Company; or
(iii)the failure at any annual or special meetings of the Company’s shareholders held during the three-year period following a “solicitation in opposition”
as defined in Rule 14a-6 promulgated under the Exchange Act, of a majority of the persons nominated by the Company in the proxy material mailed to shareholders by the management of the Company to win election to seats on the Board (such majority calculated based upon the total number of persons nominated by the Company failing to win election to seats on the Board divided by the total number of Board members of the Board as of the beginning of such three‑year period), excluding only those who die, retire voluntarily, are disabled or are otherwise disqualified in the interim between their nomination and the date of the meeting.
c.Code
Section 409A. The term “Code Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and all Treasury Regulations and guidance promulgated thereunder.
d.Disability. Except as otherwise provided by the Committee, the Participant will be considered to have a “Disability” during the period in which the Participant is unable, by reason of a medically determinable physical or mental impairment, to engage in any substantial gainful activity, which condition is expected to have a duration of not less than 120 days.
e.Executive Participant. The term “Executive Participant” means a Participant who is the Chief Executive Officer of the Company or
a member of the Brinker Leadership Team at the time an Award is granted to such Participant.
f.Good Reason. The term “Good Reason” means the satisfaction of all of the following requirements:
(i)One or more of the following facts and circumstances exist: (A) a reduction in the Executive Participant’s then current base salary other than a general reduction in base salary that affects all similarly situated executives in substantially the same proportions; (B) a reduction in the Executive Participant’s target annual bonus opportunity; (C) a relocation of the principal location at which the Executive Participant is required to provide services by more than fifty (50) miles; (D) the Company’s failure to obtain an agreement from
any successor to the Company to assume and agree to perform the obligations under this Award in the same manner and to the same extent that the Company would be required to perform, except where such assumption occurs by operations of law; (E) a material, adverse change in the Executive Participant’s title, reporting relationship, authority, duties or responsibilities; or (F) in the case of an Executive Participant who is the Chief Executive Officer of the Company only, a failure of any successor to the Company to nominate the Executive Participant for election by shareholders to the successor company’s board of directors; and
(ii)the
Executive Participant shall have provided the Company written notice within thirty (30) days of his or her knowledge or reason to know of the existence of any fact or circumstance constituting Good Reason, the Company shall have failed to cure or eliminate such fact(s) or circumstance(s) within thirty (30) days of its receipt of such notice, and the resulting termination of employment must occur within thirty (30) days following expiration of such cure period.
g.Rule of 70. The term “Rule of 70” means that the sum of the Participant’s age and the Participant’s years of service with the Company or a Related Company equals
or exceeds 70.
h.Plan Definitions. Except where the context clearly implies or indicates the contrary, a word, term, or phrase used but not defined in these Award Terms will have the meaning set forth in the Plan.
2.Term of Restricted Stock Units. The “Restricted Period” for the Award is the period beginning on [Award Date] (the “Award Date”) and ending on the three year anniversary of the Award Date. The Participant will have no voting rights with respect to the Restricted Stock Units or any shares of Stock underlying the Restricted Stock Units until the shares of Stock are issued in settlement of the vested Restricted Stock Units.
3.Vesting.
a.General
Rule. The Restricted Stock Units subject to the Award will become fully vested on the last day of the Restricted Period, provided the Participant has remained continuously employed by the Company or a Related Company through such date, except as otherwise specifically provided in this Award.
b.Death or Disability. Notwithstanding Section 3(a), if a Participant terminates employment with the Company and the Related Companies prior to the last day of the Restricted Period due to the Participant’s death or Disability, then all of the Restricted Stock Units subject to the Participant’s Award will become fully vested as of the date of such termination.
c.Retirement
Before Age 60. Notwithstanding Section 3(a), if a Participant ceases to be employed with the Company and the Related Companies prior to the last day of the Restricted Period, and as of the date of the termination the Participant (i) has satisfied the Rule of 70 and (ii) is at least age 55 but not yet age 60, the Participant will vest, as of the date of termination, in a pro-rata number of the Restricted Stock Units subject to the Participant’s Award based on the number of complete months the Participant was employed by the Company or a Related Company during the Restricted Period, divided by the total number of complete months in the Restricted Period.
d.Retirement
At or After Age 60. Notwithstanding Section 3(a), if a Participant ceases to be employed with the Company and the Related Companies prior to the last day of the Restricted Period, and as of the date of the termination the Participant (i) has satisfied the Rule of 70 and is at least age 60, or (ii) is at least age 65 regardless of satisfaction of the Rule of 70, then all of the Restricted Stock Units subject to the Participant’s Award will become fully vested as of the date of such termination.
e.Involuntary Termination.
(i)Involuntary Termination Without Cause Not Following a Change in Control. Notwithstanding the provisions of Section
3(a), if the Participant is involuntarily terminated for a reason other than for Cause prior to the last day of the Restricted Period, the Participant will vest, as of the date of such termination, in a pro-rata number of the Restricted Stock Units subject to the Participant’s Award based on the number of complete months that the Participant was employed by the Company or a Related Company during the Restricted Period, divided by the total number of complete months in the Restricted Period.
(ii)Involuntary Termination Without Cause or Termination (by Executive Participants only) for Good Reason Following a Change in
Control. Notwithstanding the provisions of Sections 3(a) and 3(e)(i), in the event there has been a Change in Control during the Restricted Period and the Awards were not vested in connection with the Change in Control pursuant to Section 3(f), then if a Participant is involuntarily terminated for a reason other than Cause or if an Executive Participant terminates for Good Reason following the Change in Control and prior to the last day of the Restricted Period, all of the Restricted Stock Units subject to the Participant’s Award will become fully vested as of the date of such termination.
f.Change in Control. Notwithstanding
the provisions of Section 3(a), in the event of a Change in Control, if the Awards are not assumed or replaced with awards of substantially equal value by the acquiring entity in such a Change in Control and/or cease to remain outstanding immediately following the Change in Control, all of the Restricted Stock Units subject to a Participant’s Award will become fully vested as of the date immediately preceding such Change in Control, provided the Participant has remained continuously employed by the Company or a Related Company through such date. After a Change in Control, references to the “Company” as they relate to the Award shall refer to the successor entity.
g.Most Favorable Provision Applies. For the avoidance of doubt, if two or more of
Sections 3(a) through 3(f) above apply, then the applicable Section that results in the Participant vesting in the greatest number of Restricted Stock Units shall control.
4.Forfeiture. Except as otherwise provided in Section 3, if the Participant ceases to be employed prior to the end of the Restricted Period, the Participant will immediately forfeit any Restricted Stock Units remaining unvested as of the date of the Participant’s termination, and the Participant will not be entitled to any payment with respect to such Restricted Stock Units. Notwithstanding any provision of the Plan or these Award Terms to the contrary, the Participant will forfeit any Restricted Stock Units (including any vested portion) immediately and without notice upon
(A) the termination of the Participant’s employment for Cause, (B) the Participant’s breach of any confidentiality agreement or similar agreement pertaining to the confidentiality and nondisclosure of proprietary information, including but not limited to trade secrets, of the Company or any Related Company, or (C) the Participant’s commission of any act of malfeasance or wrongdoing affecting the Company or any Related Company. Furthermore, and notwithstanding Section 3, if subsequent to the Participant’s termination of employment with the Company or any Related Company
(other
than due to a termination following a Change in Control without Cause or for Good Reason, if applicable), and within one year following such date the Participant becomes employed by, consults with, and/or participates as an officer, director, employee, independent contractor, adviser, consultant, partner, principal, or shareholder (with more than five percent (5%) equity) with any entity which owns and/or operates (either directly or indirectly) or is engaged, or planning to be engaged (either directly or indirectly) in the ownership and/or operation of any of the “Competitive Restaurants” listed below or any successor thereto, then the Participant’s Award (including any vested portion) will be immediately forfeited and, to the extent Stock or other applicable consideration has been issued to the Participant in settlement of the Award, to the extent permissible under applicable law, the Participant shall be required to immediately return such consideration to
the Company.
1
Ale House Restaurant
29
Landry's Seafood
2
Applebee's
30
Legal Sea Foods
3
Beef
O'Brady's
31
Longhorn Steakhouse
4
Bennigan's Tavern
32
McCormick & Schmick's
5
BJ's Restaurant and Brewhouse
33
McDonald's
6
Bonefish Grill
34
Miller's
Ale House Restaurant
7
BRAVO! Cucina Italiana
35
Morton's of Chicago
8
Brio Tuscan Grille
36
O'Charleys
9
Buca di Beppo
37
Olive Garden
10
Buffalo
Wild Wings
38
On The Border
11
California Pizza Kitchen
39
Outback Steakhouse
12
Carino's Italian Grill
40
Palm Restaurant
13
Carraba's Italian Grill
41
Panera
14
Champps
Americana
42
Pappadeaux Seafood Kitchen
15
Cheddar's Casual Café
43
PF Chang's China Bistro
16
Cheesecake Factory
44
Pizza Hut
17
Chipotle Mexican Grill
45
Red
Robin
18
Chuy's
46
Romano's Macaroni Grill
19
Cracker Barrel
47
Ruby Tuesday
20
Dave & Busters
48
Ruth's Chris Steak House
21
Fogo
De Chao
49
Seasons 52
22
Fuddruckers
50
Taco Bell
23
Hooters
51
Texas Roadhouse
24
Houlihans
52
TGI
Fridays
25
Houston's/Hillstone
53
Uno Chicago Grill
26
Il Fornaio Restaurant
54
Wendy's
27
J Alexanders
55
Yard House
28
KFC
5.Payment. Each
vested Restricted Stock Unit will entitle the Participant to receive one share of Stock (or other consideration of equal value, as determined by the Committee, in the event payment is made following a Change in Control). Subject to Section 6, shares of Stock (or other consideration, as applicable) will be issued to the Participant in full settlement of vested Restricted Stock Units during the 60‑day period immediately following the date on which such Restricted Stock Units first became vested pursuant to Section 3. At no other time prior to the end of the Restricted Period will any Stock (or other consideration, as applicable) be issued for Restricted Stock Units pursuant to the Award. After the issuance of Stock (or other consideration, as applicable) to the Participant, the Participant will own such Stock (or other consideration, as applicable)
free of all restrictions described herein. The Participant will not have the right to designate the taxable year of payment.
6.Section 409A.
a.Although the Company does not guarantee the tax treatment of any payments or benefits under this Award, the intent of the Company is that the payments and benefits under this Award be exempt from, or comply with, Code Section 409A and to the maximum extent permitted the Award Terms and the award letter shall be limited, construed and interpreted
in accordance with such intent. In no event whatsoever shall the Company, the Related Companies, their affiliates or their respective officers, directors, employees or agents be liable for any additional tax, interest or penalties that may be imposed on a Participant by Code Section 409A or damages for failing to comply with Code Section 409A.
b.Notwithstanding the foregoing or any other provision of this Award to the contrary, if at the time of a Participant's “separation from service” (within the meaning of Code Section 409A), the Participant is a "Specified Employee," then the Company will defer the payment of any nonqualified deferred compensation subject to Code Section 409A payable upon separation from service (without
any reduction in such payments or benefits ultimately paid or provided to the Participant) until the date that is six (6) months following separation from service or, if earlier, the earliest other date as is permitted under Code Section 409A (and any amounts that otherwise would have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six (6) month period or such shorter period, if applicable). A Participant will be a "Specified Employee" for purposes of this Award if, on the date of the Participant's separation from service, the Participant is an individual who is, under the method of determination adopted by the Company designated as, or within the category of employees deemed to be, a "Specified Employee" within the meaning and in accordance with Treasury Regulation Section 1.409A-1(i). The
Company shall determine in its sole discretion all matters relating to who is a "Specified Employee" and the application of and effects of the change in such determination.
c.Notwithstanding anything in these Award Terms, the award letter or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Award providing for the payment of any amounts or benefits that constitute “non-qualified deferred compensation” within the meaning of Code Section 409A upon or following a termination of a Participant’s employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Award, references to a “termination,”“termination of employment” or like terms shall mean “separation from service” and the date of
such separation from service shall be the date of termination for purposes of any such payment or benefits.
7.Dividends. The Participant will not be entitled to receive any cash dividends or dividend equivalents with respect to the Restricted Stock Units before they are settled pursuant to Section 5. However, to the extent that, and at the same time as, shares of Stock are issued under Section 5, the Participant (or the Participant’s beneficiary) will also receive a lump sum cash payment equal to the amount of cash dividends that are paid or declared by the Company during the Restricted Period (but prior to the date of payment of the Award pursuant to Section 5)
on the number of shares of Stock (if any) issued to the Participant (or the Participant’s beneficiary).
8.Capital Adjustments and Reorganizations. The number of Restricted Stock Units covered by the Award will be subject to equitable adjustment, as determined by the Committee, to reflect any stock dividend, stock split, share combination, separation, reorganization, liquidation or the like, of or by the Company. In the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for the Award such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection with such substitution the surrender of the Award so replaced.
9.Clawback
Provisions. If the Participant is an officer of the Company (“Officer”) and the Board, or an appropriate committee thereof, has determined that any fraud, negligence, or intentional misconduct by the Officer was a significant contributing factor to the Company having to restate all or a portion of its financial statement(s), the Board or committee shall take, in its discretion, such action as it deems necessary to remedy the misconduct and prevent its recurrence. In determining what remedies to pursue, the Board or committee will take into account all relevant factors, including whether the restatement
was
the result of fraud, negligence, or intentional misconduct. The Board will, to the extent permitted by applicable law, in all appropriate cases, require reimbursement of any bonus or incentive compensation paid to the Officer, cause the cancellation of restricted or deferred stock awards and outstanding stock options, and seek reimbursement of any gains realized on the exercise of stock options attributable to such awards, if and to the extent that (a) the amount of incentive compensation was calculated based upon the achievement of certain financial results that were subsequently reduced due to a restatement, (b) the Officer engaged in any fraud or misconduct that caused or contributed to the need for the restatement, and (c) the amount of the bonus or incentive compensation that would have been awarded to the Officer had the financial results been properly reported would have been lower than the amount actually awarded. In addition, the Board may dismiss the Officer,
authorize legal action, or take such other action to enforce the Officer’s obligations to the Company as it may deem appropriate in view of all the facts surrounding the particular case. The Company will not seek to recover bonuses or other compensation as detailed above paid more than three years prior to the date the applicable restatement is disclosed.
10.Heirs and Successors. These Award Terms will be binding upon, and will inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the
Company’s assets and business. Subject to the terms of the Plan, any benefits distributable to a deceased Participant will be distributed to the beneficiary designated by the Participant in writing filed with the Committee in such form as the Committee will require. If a deceased Participant has failed to designate a beneficiary, or if the designated beneficiary of the deceased Participant dies before the Participant or before complete distribution of benefits due under the Plan, the amounts to be distributed under the Plan will be distributed to the legal representative or representatives of the estate of the last to die of the Participant and the beneficiary.
11.Taxes, Transaction Costs and Withholding. The Participant will be solely responsible for the payment of all taxes and transaction costs relating to the granting, vesting and payment of the Award. It will be a condition
to the obligation of the Company to issue or transfer shares of Stock or other applicable consideration that the Participant pay to the Company, upon its demand, such amount as may be requested by the Company for the purpose of satisfying its liability to withhold federal, state or local income or other taxes incurred in connection with the Award. If the amount requested is not paid, the Company may refuse to issue or transfer shares of Stock or other applicable consideration to the Participant (or to the Participant’s beneficiary).
12.Administration.
The authority to interpret and administer the terms and conditions of this Award will be vested in the Committee, and the Committee will have all powers with respect thereto as it has with respect to the Plan. Any interpretation of these Award Terms by the Committee and any decision made by it with respect to the Award is final and binding.
13.Relation to Plan. Notwithstanding anything in these Award Terms to the contrary, the Award will be subject to the terms of the Plan, a copy of which may be obtained by the Participant from the office of the Secretary of the Company. Any amendment to the Plan will be deemed to be an amendment to these Award Terms to the extent that the amendment is applicable hereto.
14.No Employment Contract. Nothing
contained in these Award Terms will (a) confer upon the Participant any right to be employed by or remain employed by the Company or any Related Company, or (b) limit or affect in any manner the right of the Company or any Related Company to terminate the employment or adjust the compensation of the Participant.
15.Governing Law. The interpretation, performance, and enforcement of these Award Terms will be governed by the laws of the State of Texas, without giving effect to the principles of conflict of laws thereof and all parties, including their successors and assigns, consent to the jurisdiction of the state and federal courts of Texas.
[End
of document.]
Dates Referenced Herein and Documents Incorporated by Reference
