UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 10, 2014

 

The Men’s Wearhouse, Inc.

(Exact name of registrant as specified in its charter)

 

Texas

 

1-16097

 

74-1790172

(State or other jurisdiction

of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

6380 Rogerdale Road

Houston, Texas

 

77072

(Address of principal executive offices)

 

(Zip Code)

 

281-776-7000

(Registrant’s telephone number,
including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 5.02   Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

Effective as of September 10, 2014, Mary Beth Blake has been promoted to President and Chief Merchandising Officer of The Men’s Wearhouse, Inc. (the “Company”).  Prior to her promotion, Ms. Blake served as Executive Vice President and Chief Merchandising Officer of the Company.  Doug Ewert will continue as Chief Executive Officer of the Company.

 

Mary Beth Blake, age 47, joined the Company in May 2008 as Chief Merchandising Officer of K&G Men’s Company Inc., a wholly-owned subsidiary of the Company.   In November 2008, Ms. Blake was named President of K&G.  In 2013, Ms. Blake was named Executive Vice President and Chief Merchandising Officer.

 

In connection with her appointment as President, Ms. Blake will receive (1) an increase in annual base salary to $600,000, (2) a potential annual incentive bonus of up to $300,000 pursuant to the Company’s current performance-based annual cash bonus program, and (3) equity grants with an aggregate value as of the close of business on September 12, 2014 of $1,000,000, comprised of  40% performance units (as described below), 30% stock options and 30% time-vesting deferred stock units.  Ms. Blake has an existing Change in Control Agreement with the Company, consistent with the form of agreement filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on May 20, 2009.

 

In addition, the Board of Directors of the Company approved a modified equity compensation structure for senior executive officers, including certain of the named executive officers, as part of an overall compensation structure that is designed to be reflective of the increased size of the Company and includes performance criteria aligned with the performance expectations communicated by the Company in its Analyst Day presentation on July 29, 2014 (a copy of which was furnished as Exhibit 99.1 to Current Report on Form 8-K filed with the SEC on July 29, 2014).  As a result, the Board of Directors also approved changes in the form of award agreements to be issued for equity grants to senior executive officers, including certain named executive officers, under the Company’s 2004 Long-Term Incentive Plan.  As revised, the senior executive officer award agreements for time-vesting deferred stock units, performance units and stock option awards will contain “double-trigger” change in control provisions in the event of a change in control of the Company.  In addition, the performance unit award agreements, which underlying awards are scheduled to vest in April 2018, have been further revised in part to include performance-based vesting conditions based on certain adjusted earnings per share targets being met for fiscal 2017, subject to adjustment as to the number of shares which shall actually vest based upon certain adjusted earnings per share targets for fiscal 2017 and relative total shareholder return of the Company as compared to the companies in the S&P Apparel Index.

 

The Compensation Committee approved the grant of certain equity awards to the Company’s senior executive officers, including certain named executive officers, as of the close of business on September 12, 2014, to be issued pursuant to the terms of the respective award agreements described in the preceding paragraph.  The forms of award agreements for time-vesting deferred stock units, performance units and stock option awards under the Company’s 2004 Long-Term

 

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Incentive Plan are attached hereto as Exhibits 10.1, 10.2 and 10.3, respectively, and are incorporated herein by reference.

 

Item 8.01              Other Events.

 

On September 16, 2014, the Company issued a press release announcing the promotion of Mary Beth Blake to President and Chief Merchandising Officer of the Company as discussed under Item 5.02 above.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01              Financial Statements and Exhibits.

 

(d)           Exhibits .  The following exhibits are included in this Form 8-K:

 

Exhibit
Number

 

Description

 

 

 

10.1

 

Form of Deferred Stock Unit Award Agreement (for senior executive officers, including named executive officers) under The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan.

 

 

 

10.2

 

Form of Performance Unit Award Agreement (for senior executive officers, including named executive officers) under The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan.

 

 

 

10.3

 

Form of Nonqualified Stock Option Award Agreement (for senior executive officers, including named executive officers) under The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan.

 

 

 

99.1

 

Press Release of the Company dated September 16, 2014.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Date:      September 16, 2014

 

 

 

THE MEN’S WEARHOUSE, INC.

 

 

 

 

 

 

 

By:

/s/ BRIAN T. VACLAVIK

 

 

Brian T. Vaclavik

 

 

Senior Vice President and Chief Accounting Officer

 

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EXHIBIT INDEX

 

Exhibit

 

 

 

Number

 

 

Description

 

 

 

 

10.1

 

 

Form of Deferred Stock Unit Award Agreement (for senior executive officers, including named executive officers) under The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan.

 

 

 

 

10.2

 

 

Form of Performance Unit Award Agreement (for senior executive officers, including named executive officers) under The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan.

 

 

 

 

10.3

 

 

Form of Nonqualified Stock Option Award Agreement (for senior executive officers, including named executive officers) under The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan.

 

 

 

 

99.1

 

 

Press Release of the Company dated September 16, 2014.

 

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Exhibit 10.1

 

Senior Executive Officer

 

DEFERRED STOCK UNIT AWARD AGREEMENT
The Men’s Wearhouse, Inc.
2004 Long-Term Incentive Plan

 

This DEFERRED STOCK UNIT AWARD AGREEMENT (this “ Agreement ”) is made by and between The Men’s Wearhouse, Inc., a Texas corporation (the “ Company ”), and                                                                    (the “ Executive ”) effective as of the              day of                                     , 20       ( the “Grant Date” ), pursuant to The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan, as amended and restated (the “ Plan ”), a copy of which previously has been made available to the Executive and the terms and provisions of which are incorporated by reference herein.

 

WHEREAS , the Company desires to grant to the Executive the Deferred Stock Units specified herein, subject to the terms and conditions of this Agreement; and

 

WHEREAS , the Executive desires to have the opportunity to receive from the Company an award of Deferred Stock Units subject to the terms and conditions of this Agreement;

 

NOW, THEREFORE , in consideration of the premises, mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.                                       Definitions .   For purposes of this Agreement, the following terms shall have the meanings indicated:

 

(a)                                  Change in Control ” shall have the meaning set forth in the Change in Control Agreement.

 

(b)                                  Change in Control Agreement ” shall mean that Change in Control Agreement between The Men’s Wearhouse, Inc. and the Executive dated effective May 15, [2009].

 

(c)                                   Common Stock ” shall mean the common stock of the Company, $.01 par value per share (or such other par value as may be designated by act of the Company’s shareholders).

 

(d)                                  Deferred Stock Unit ” shall mean a Deferred Stock Unit issued under the Plan that is subject to the Forfeiture Restrictions.

 

(e)                                   Event of Termination for Cause ” shall have the meaning set forth in the Change in Control Agreement.

 

(f)                                    Event of Termination for Good Reason ” shall have the meaning set forth in the Change in Control Agreement.

 

(g)                                   Forfeiture Restrictions ” shall mean the prohibitions and restrictions set forth herein with respect to the sale or other disposition of the Deferred Stock Units issued to the Executive hereunder and the obligation to forfeit and surrender such Deferred Stock Units to the Company.

 



 

(h)                                  Person ” shall have the meaning set forth in the Change in Control Agreement.

 

(i)                                      Section 409A ” means section 409A of the Internal Revenue Code of 1986, as amended, and the Department of Treasury rules and regulations issued thereunder.

 

(j)                                     Separation From Service ” has the meaning ascribed to that term under Section 409A.

 

(k)                                  Specified Employee ” has the meaning ascribed to that term under Section 409A.

 

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to such terms in the Plan.

 

2.                                       Grant of Deferred Stock Units .   Effective as of the Grant Date, the Company hereby grants to the Executive                          Deferred Stock Units. In accepting the award of Deferred Stock Units granted in this Agreement the Executive accepts and agrees to be bound by all the terms and conditions of the Plan and this Agreement.  The Company shall cause to be delivered to the Executive in electronic or certificated form any shares of the Common Stock that are to be issued under the terms of this Agreement in exchange for Deferred Stock Units awarded hereby, and such shares of the Common Stock shall be transferable by the Executive as provided herein (except to the extent that any proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of applicable securities law).

 

3.                                       Deferred Stock Units Do Not Award Any Rights Of A Shareholder .  The Executive shall not have the voting rights or any of the other rights, powers or privileges of a holder of the Common Stock with respect to the Deferred Stock Units that are awarded hereby.  Only after a share of the Common Stock is issued in exchange for a Deferred Stock Unit will the Executive have all of the rights of a shareholder with respect to such share of Common Stock issued in exchange for a Deferred Stock Unit.

 

4.                                       Dividend Equivalent Payments.

 

(a)                                  If, on the date the Company pays a dividend in cash with respect to the outstanding shares of the Common Stock (a “ Cash Dividend ”), the Executive (i) is employed by the Company or a subsidiary of the Company as a common law employee and (ii) holds any Deferred Stock Units granted under this Agreement, then the Company will credit to the Executive’s bookkeeping ledger account an amount equal to the product of (x) the Deferred Stock Units awarded hereby that on the date the Company pays such Cash Dividend have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock and (y) the amount of the Cash Dividend paid per share of the Common Stock (the “ Dividend Equivalents ”).  Such Dividend Equivalents will vest and become payable upon the same terms and at the same time as the Deferred Stock Units to which they relate.  The Company shall pay to the Executive, in cash, an amount equal to the accrued Dividend Equivalents with respect to the Executive’s Deferred Stock Units, which payment shall be included in the Executive’s regular payroll check for the period covering the date the Forfeiture Restrictions applicable to that Deferred Stock Unit lapse or such later date described in Section 6(c) and (d) of this Agreement.  Dividend Equivalent payments will be subject to tax withholding as further described in Section 8 below.

 

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(b)                                  If during the period the Executive holds any Deferred Stock Units granted under this Agreement the Company pays a dividend in shares of the Common Stock with respect to the outstanding shares of the Common Stock, then the Company will increase the Deferred Stock Units awarded hereby that have not then been forfeited to or exchanged by the Company for shares of the Common Stock by an amount equal to the product of (i) the Deferred Stock Units awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock and (ii) the number of shares of the Common Stock paid by the Company per share of the Common Stock (collectively, the “ Stock Dividend Deferred Stock Units ”).  Each Stock Dividend Deferred Stock Unit will be subject to same Forfeiture Restrictions and other restrictions, limitations and conditions applicable to the Deferred Stock Unit for which such Stock Dividend Deferred Stock Unit was awarded and will be exchanged for shares of the Common Stock at the same time and on the same basis as such Deferred Stock Unit.

 

5.                                       Transfer Restrictions .   The Deferred Stock Units granted hereby may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by will or the applicable laws of descent and distribution).  Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement shall be void and the Company shall not be bound thereby.  Further, any shares of the Common Stock issued to the Executive in exchange for Deferred Stock Units awarded hereby may not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable securities laws.  The Executive also agrees that the Company may (a) refuse to cause the transfer of any such shares of the Common Stock to be registered on the applicable stock transfer records of the Company if such proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of any applicable securities law and (b) give related instructions to the transfer agent, if any, to stop registration of the transfer of such shares of the Common Stock.  The shares of Common Stock that may be issued under the Plan are registered with the Securities and Exchange Commission under a Registration Statement on Form S-8.  A Prospectus describing the Plan and the shares of Common Stock is available from the Company.

 

6.                                       Vesting and Payment .

 

(a)                                  Except as otherwise provided in Section 6(c) and (d) of this Agreement, upon the lapse of the Forfeiture Restrictions applicable to a Deferred Stock Unit that is awarded hereby the Company shall issue to the Executive one share of the Common Stock in exchange for such Deferred Stock Unit and pay the Dividend Equivalents as provided in Section 4(a), and thereafter the Executive shall have no further rights with respect to such Deferred Stock Unit.

 

(b)                                  The Deferred Stock Units that are granted hereby shall be subject to the Forfeiture Restrictions.  Except as otherwise provided in Section 6(c) and (d) of this Agreement, the Forfeiture Restrictions shall lapse as to the Deferred Stock Units that are awarded hereby in accordance with the following schedule, provided that the Executive’s employment with the Company and its subsidiaries has not terminated prior to the applicable lapse date:

 

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The Executive shall have no vested interest in the Deferred Stock Units credited to his or her bookkeeping ledger account except as set forth in this Section 6.

 

(c)                                   Notwithstanding any other provision of this Agreement to the contrary, if, during the term of the Change in Control Agreement, and on or before the latest date set forth in Section 6(b), a Change in Control occurs and the Executive’s employment by the Company is terminated (x) by the Company otherwise than as a result of the occurrence of an Event of Termination for Cause or (y) by the Executive after the occurrence of an Event of Termination for Good Reason such that the Executive shall be entitled to receive the benefits set forth under Section 7(a)(iv) of the Change in Control Agreement, then all remaining Forfeiture Restrictions shall immediately lapse on the date of the Executive’s Separation From Service and the Company shall issue to the Executive one share of the Common Stock in exchange for such Deferred Stock Unit, and pay the Dividend Equivalents, (x) on the date of the Executive’s Separation From Service if the Executive is not a Specified Employee or (y) on the date that is six months following the Executive’s Separation From Service if the Executive is a Specified Employee, and thereafter the Executive shall have no further rights with respect to such Deferred Stock Unit.

 

(d)                                  Notwithstanding any other provision of this Agreement to the contrary, if, during the term of the Change in Control Agreement and on or before the latest date set forth in Section 6(b) (i) the Company and all subsidiaries of the Company terminate the Executive’s employment prior to a Change in Control (whether or not a Change in Control ever occurs) otherwise than as a result of the occurrence of an event that would constitute an Event of Termination for Cause if it occurred after a Change in Control and such termination is at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs) or (ii) the Executive terminates his employment with the Company and all subsidiaries of the Company prior to a Change in Control (whether or not a Change in Control ever occurs) after the occurrence of an event that would constitute an Event of Termination for Good Reason if it occurred after a Change in Control, and such termination or the circumstance or event which constitutes an Event of Termination for Good Reason occurs at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs), then all remaining Forfeiture Restrictions shall immediately lapse on the date of the Executive’s Separation From Service and the Company shall issue to the Executive one share of the Common Stock in exchange for such Deferred Stock Unit, and pay the Dividend Equivalents, (x) on the date of the Executive’s Separation From Service if the Executive is not a Specified Employee or (y) on the date that is six months following the Executive’s Separation From Service if the Executive is a Specified Employee, and thereafter the Executive shall have no further rights with respect to such Deferred Stock Unit.

 

(e)                                   Except as otherwise provided in Section 6(c) and (d), if the Executive’s employment with the Company and all of its subsidiaries terminates prior to the lapse date for any reason other than the death or permanent disability of the Executive, the Forfeiture Restrictions then applicable to the Deferred Stock Units shall not lapse and the number of

 

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Deferred Stock Units then subject to the Forfeiture Restrictions shall be forfeited to the Company on the date the Executive’s employment terminates.  Notwithstanding any other provision of this Agreement to the contrary, if the Executive dies or incurs a permanent disability before the lapse date and while in the active employ of the Company and/or one or more of its subsidiaries, all remaining Forfeiture Restrictions shall immediately lapse on the date of the termination of the Executive’s employment due to death or permanent disability.  For purposes of this Section 6, the Executive will incur a “permanent disability” if the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company.

 

7.                                       Capital Adjustments and Reorganizations .   The existence of the Deferred Stock Units shall not affect in any way the right or power of the Company or any company the stock of which is awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding.

 

8.                                       Tax Withholding .   To the extent that the receipt of the Deferred Stock Units, any payment in cash or shares of Common Stock or the lapse of any Forfeiture Restrictions results in income to the Executive for federal, state or local income, employment or other tax purposes with respect to which the Company or any Affiliate has a withholding obligation, the Executive shall deliver to the Company at the time of such receipt, payment or lapse, as the case may be, such amount of money as the Company or any Affiliate may require to meet its obligation under applicable tax laws or regulations, and, if the Executive fails to do so, the Company is authorized to withhold from the shares of Common Stock issued in exchange for the Deferred Stock Units, any payment in cash or shares of Common Stock under this Agreement or from any cash or stock remuneration then or thereafter payable to the Executive in any capacity any tax required to be withheld by reason of such resulting income, including (without limitation) shares of the Common Stock sufficient to satisfy the withholding obligation based on the Fair Market Value of the Common Stock on the date that the withholding obligation arises.

 

9.                                       Nontransferability . This Agreement is not transferable by the Executive otherwise than by will or by the laws of descent and distribution.

 

10.                                Employment Relationship .   For purposes of this Agreement, the Executive shall be considered to be in the employment of the Company and its Affiliates as long as the Executive has an employment relationship with the Company and its Affiliates.  The Committee shall determine any questions as to whether and when there has been a termination of such employment relationship, and the cause of such termination, under the Plan and the Committee’s determination shall be final and binding on all persons.

 

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11.                                Not an Employment Agreement .   This Agreement is not an employment agreement, and no provision of this Agreement shall be construed or interpreted to create an employment relationship between the Executive and the Company or any Affiliate, to guarantee the right to remain employed by the Company or any Affiliate for any specified term or require the Company or any Affiliate to employ the Executive for any period of time.

 

12.                                Legend .  The Executive consents to the placing on the certificate for any shares of Common Stock issued under this Agreement in certificated form an appropriate legend restricting resale or other transfer of such shares except in accordance with the Securities Act of 1933 and all applicable rules thereunder.

 

13.                                Notices .   Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, by telegram, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the then current address of the Company’s Principal Corporate Office, and to the Executive at the Executive’s residential address indicated beneath the Executive’s signature on the execution page of this Agreement, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

 

14.                                Amendment and Waiver .   Except as otherwise provided herein or in the Plan or as necessary to implement the provisions of the Plan, this Agreement may be amended, modified or superseded only by written instrument executed by the Company and the Executive.  Only a written instrument executed and delivered by the party waiving compliance hereof shall make any waiver of the terms or conditions.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than the Executive.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner effect the right to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement, in one or more instances, shall be construed as a continuing waiver of any such condition or breach, a waiver of any other condition, or the breach of any other term or condition.

 

15.                                Arbitration .  In the event of any difference of opinion concerning the meaning or effect of the Plan or this Agreement, such difference shall be resolved by the Committee.  Any controversy arising out of or relating to the Plan or this Agreement shall be resolved by arbitration conducted in accordance with the terms of the Plan.  The arbitration shall be final and binding on the parties.

 

16.                                Governing Law and Severability .   The validity, construction and performance of this Agreement shall be governed by the laws of the State of Texas, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this

 

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Agreement to the substantive law of another jurisdiction.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

 

17.                                Successors and Assigns .   Subject to the limitations which this Agreement imposes upon the transferability of the Deferred Stock Units granted hereby and any shares of the Common Stock issued hereunder, this Agreement shall bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and to the Executive, the Executive’s permitted assigns, executors, administrators, agents, legal and personal representatives.

 

18.                                Counterparts .   This Agreement may be executed in two or more counterparts, each of which shall be an original for all purposes but all of which taken together shall constitute but one and the same instrument.

 

19.                                Forfeiture for Cause .

 

(a)                                  Notwithstanding any other provision of this Agreement, if a determination is made as provided in Section 19(b) of this Agreement (a “ Forfeiture Determination ”) that (i) the Executive, before or after the termination of the Executive’s employment with the Company and all Affiliates, (A) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate, (B) knowingly caused or assisted in causing the publicly released financial statements of the Company to be misstated or the Company or a subsidiary of the Company to engage in criminal misconduct, (C) disclosed trade secrets of the Company or an Affiliate or (D) violated the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Executive is a party; and (ii) in the case of the actions described in clause (A), (B) and (D), such action materially and adversely affected the Company, then at or after the time such Forfeiture Determination is made the Board, in its sole discretion, if such Forfeiture Determination is made prior to a Change in Control, or, as determined by a final, non-appealable order of a court of competent jurisdiction, if such Forfeiture Determination is made after a Change in Control, as a fair and equitable forfeiture to reflect the harm done to the Company and a reduction of the benefit bestowed on the Executive had the facts existing at the time the benefit was bestowed that led to the Forfeiture Determination been known to the Company at the time the benefit was bestowed, may determine that:  (x) some or all of the Deferred Stock Units awarded under this Agreement (including vested Deferred Stock Units that have not been exchanged for shares of the Common Stock and Deferred Stock Units that have not yet vested), (y) some or all of the Dividend Equivalents that are payable or have been paid under this Agreement and (z) some or all shares of Common Stock exchanged for Deferred Stock Units and some or all net proceeds realized with respect to any shares of the Common Stock received by the Executive in payment of Deferred Stock Units, will be forfeited to the Company on such terms as determined by the Board or the final, non-appealable order of a court of competent jurisdiction.

 

(b)                                  A Forfeiture Determination for purposes of Section 19(a) of this Agreement shall be made (i) before the occurrence of a Change in Control, by a majority vote of the Board and (ii) on or after the occurrence of a Change in Control, by the final, nonappealable order of a court of competent jurisdiction.  The findings and decision of the Board with respect to a Forfeiture Determination made before the occurrence of a Change in Control, including those regarding the

 

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acts of the Executive and the damage done to the Company, will be final for all purposes absent a showing by clear and convincing evidence of manifest error by the Board.  No decision of the Board, however, will affect the finality of the discharge of the Executive by the Company or an Affiliate.

 

20.                                Effect on Other Agreements .  THE PARTIES ACKNOWLEDGE AND AGREE THAT THE DEFERRED STOCK UNITS GRANTED IN THIS AGREEMENT ARE SUBJECT TO THE PROVISIONS OF SECTION 7(e) OF THE CHANGE IN CONTROL AGREEMENT.  The parties acknowledge and agree that the provisions of this Agreement shall supersede any and all other agreements and rights that the Executive has under any employment or other agreements or arrangements between the Executive and the Company, whether in writing or otherwise, with respect to the matters set forth herein.

 

21.                                Holding Requirements .   If at the time of the lapse date set forth in Section 6 of this Agreement for any Forfeiture Restrictions applicable with respect to any of the Deferred Stock Units hereunder the Executive is not then in compliance with the equity ownership guidelines for executive officers of the Company established from time to time by the Company’s Board of Directors or any committee thereof (the “ Ownership Guidelines ”), then 50% of the shares of Common Stock that are received in exchange for such Deferred Stock Units in accordance with Section 6 of this Agreement must be retained by the Executive until the earlier of the date the Executive (i) otherwise satisfies such then applicable Ownership Guidelines or (ii) is no longer subject to such guidelines.

 

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IN WITNESS WHEREOF , the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Executive has executed this Agreement, all effective as of the date first above written.

 

 

THE MEN’S WEARHOUSE, INC.

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

EXECUTIVE:

 

 

 

 

 

 

 

Name:

 

 

 

 

Address:

 

 

 

 

 

 

 

 


Exhibit 10.2

 

Senior Executive Officer

 

PERFORMANCE UNIT AWARD AGREEMENT
The Men’s Wearhouse, Inc.
2004 Long-Term Incentive Plan

 

This PERFORMANCE UNIT AWARD AGREEMENT (this “ Agreement ”) is made by and between The Men’s Wearhouse, Inc., a Texas corporation (the “ Company ”), and                                                                    (the “ Executive ”) effective as of the            day of                         , 20     ( the “Grant Date” ), pursuant to The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan, as amended and restated (the “ Plan ”), a copy of which previously has been made available to the Executive and the terms and provisions of which are incorporated by reference herein.

 

WHEREAS , the Company desires to grant to the Executive the Performance Units specified herein, subject to the terms and conditions of this Agreement; and

 

WHEREAS , the Executive desires to have the opportunity to receive from the Company an award of Performance Units subject to the terms and conditions of this Agreement;

 

NOW, THEREFORE , in consideration of the premises, mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.                                            Definitions .   For purposes of this Agreement, the following terms shall have the meanings indicated:

 

(a)                                  Adjusted EPS ” shall mean diluted net earnings per share of Common Stock attributable to common shareholders for the fiscal year ending                     , 20     (the “ 20     Fiscal Year ”); provided, that all items of gain, loss, or expense for the 20     Fiscal Year determined by the Committee to be extraordinary, unusual in nature, infrequent in occurrence, related to the acquisition or disposal of a business, or related to a change in accounting principle, all as determined in accordance with standards established by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 225-20, Income Statement, Extraordinary and Unusual Items, and FASB ASC 830-10, Foreign Currency Matters, overall, other applicable accounting rules, or consistent with the Company’s policies and practices on the Grant Date may be included or excluded in calculating such diluted net earnings per share of Common Stock attributable to common shareholders. In addition, in determining diluted net earnings per share of Common Stock attributable to common shareholders for the 20     Fiscal Year, the shares of Common Stock outstanding used in such determination shall not be reduced for any shares of Common Stock repurchased by the Company during the period from the Grant Date through the last day of the 20     Fiscal Year under any share repurchase authorization by the Board.

 

(b)                                  Change in Control ” shall have the meaning set forth in the Change in Control Agreement.

 

(c)                                   Change in Control Agreement ” shall mean that Change in Control Agreement between The Men’s Wearhouse, Inc. and the Executive dated effective [May 15, 2009].

 



 

(d)                                  Common Stock ” shall mean the common stock of the Company, $.01 par value per share (or such other par value as may be designated by act of the Company’s shareholders).

 

(e)                                   Event of Termination for Cause ” shall have the meaning set forth in the Change in Control Agreement.

 

(f)                                    Event of Termination for Good Reason ” shall have the meaning set forth in the Change in Control Agreement.

 

(g)                                   Forfeiture Restrictions ” shall mean the prohibitions and restrictions set forth herein with respect to the sale or other disposition of the Performance Units issued to the Executive hereunder and the obligation to forfeit and surrender such Performance Units to the Company.

 

(h)                                  Performance Unit ” shall mean a Performance Unit issued under Article XI of the Plan that is subject to the Forfeiture Restrictions.

 

(i)                                      Person ” shall have the meaning set forth in the Change in Control Agreement.

 

(j)                                     Relative TSR ” shall mean the rank order of the Company’s total shareholder return for the three-year period ending                     , 20     as compared to the total shareholder return of each of the other companies then included in the S&P Apparel Index (or such successor index or, if the S&P Apparel Index is discontinued, comparable index determined by the Committee) for a reasonably comparable three-year period.  For this purpose, “ total shareholder return ” of the Company and each other relevant company shall be determined by dividing (i) the sum of (A) the cumulative amount of dividends or similar equity distributions during the three-year period described above, assuming dividend/distribution reinvestment, and (B) the difference between the common equity price of such company at the end and the beginning of such three-year period by (ii) the common equity price of such company at the beginning of such three-year period, with such amount determined expressed as a percentage so that each of the companies may be ranked in order from the highest total shareholder return to the lowest total shareholder return and the relative ranking of the Company within that order may be determined (references to rank herein are determined from the lowest return so that, for example, the            percentile is the            percentile from the lowest total shareholder return).

 

(k)                                  Section 409A ” means section 409A of the Internal Revenue Code of 1986, as amended, and the Department of Treasury rules and regulations issued thereunder.

 

(l)                                      Separation From Service ” has the meaning ascribed to that term under Section 409A.

 

(m)                              Specified Employee ” has the meaning ascribed to that term under Section 409A.

 

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to such terms in the Plan.

 

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2.                                            Grant of Performance Units .   Effective as of the Grant Date, the Company hereby grants to the Executive                          Performance Units (the “ Target Shares ”). In accepting the award of Performance Units granted in this Agreement the Executive accepts and agrees to be bound by all the terms and conditions of the Plan and this Agreement.  The Company shall cause to be delivered to the Executive in electronic or certificated form any shares of Common Stock that are to be issued under the terms of this Agreement in exchange for Performance Units awarded hereby, and such shares of Common Stock shall be transferable by the Executive as provided herein (except to the extent that any proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of applicable securities law).

 

3.                                            Performance Units Do Not Award Any Rights Of A Shareholder .  The Executive shall not have the voting rights or any of the other rights, powers or privileges of a holder of Common Stock with respect to the Performance Units that are awarded hereby.  Only after a share of Common Stock is issued in exchange for a Performance Unit will the Executive have all of the rights of a shareholder with respect to such share of Common Stock issued in exchange for a Performance Unit.

 

4.                                            Dividend Equivalent Payments.

 

(a)                                  If, during the period beginning on the Grant Date and ending on April 13, 20    , the Company pays any dividends in cash with respect to the outstanding shares of Common Stock (a “ Cash Dividend ”), and on the payment date of any such dividend the Executive (i) is employed by the Company or a subsidiary of the Company as a common law employee and (ii) holds any Performance Units granted under this Agreement and such Performance Units have not been forfeited to the Company or exchanged by the Company for shares of Common Stock, then when the Forfeiture Restrictions related to such Performance Units shall lapse in accordance with the terms of Section 6 of this Agreement, the Executive shall also be entitled to receive an amount equal to the product of (x) the number of shares of Common Stock to be issued in exchange for the Performance Units awarded hereby (calculated in accordance with the terms of Section 6 of this Agreement) and (y) the aggregate amount of the Cash Dividends paid per share of Common Stock during the period beginning on the Grant Date and ending on April 13, 20     (the “ Dividend Equivalents ”).  Such Dividend Equivalents will vest and become payable upon the same terms and at the same time as the Performance Units to which they relate.  The Company shall pay to the Executive, in cash, an amount equal to the accrued Dividend Equivalents with respect to the Executive’s Performance Units, which payment shall be included in the Executive’s regular payroll check for the period covering the date any Forfeiture Restrictions applicable to that Performance Unit lapse or such later date described in Section 6(d) and (f) of this Agreement.  Dividend Equivalent payments will be subject to tax withholding as further described in Section 8 below.

 

(b)                                  If during the period the Executive holds any Performance Units granted under this Agreement the Company pays a dividend in shares of Common Stock with respect to the outstanding shares of Common Stock, then the Company will increase the number of shares of Common Stock to be issued in exchange for the Performance Units awarded hereby that have not then been forfeited to or exchanged by the Company for shares of Common Stock by an amount equal to the product of (i) the number of shares of Common Stock to be issued in exchange for the Performance Units awarded hereby (calculated in accordance with the terms of Section 6 of this Agreement) and (ii) the number of shares of Common Stock paid by the Company per share of Common Stock (collectively, the “ Stock Dividend Performance Units ”).  Each Stock Dividend

 

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Performance Unit will be subject to same Forfeiture Restrictions and other restrictions, limitations and conditions applicable to the Performance Unit for which such Stock Dividend Performance Unit was awarded and will be exchanged for shares of Common Stock at the same time and on the same basis as such Performance Unit.

 

5.                                            Transfer Restrictions .   The Performance Units granted hereby may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by will or the applicable laws of descent and distribution).  Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement shall be void and the Company shall not be bound thereby.  Further, any shares of Common Stock issued to the Executive in exchange for Performance Units awarded hereby may not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable securities laws.  The Executive also agrees that the Company may (a) refuse to cause the transfer of any such shares of Common Stock to be registered on the applicable stock transfer records of the Company if such proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of any applicable securities law and (b) give related instructions to the transfer agent, if any, to stop registration of the transfer of such shares of Common Stock.  The shares of Common Stock that may be issued under the Plan are registered with the Securities and Exchange Commission under a Registration Statement on Form S-8.  A Prospectus describing the Plan and the shares of Common Stock is available from the Company.

 

6.                                            Vesting and Payment .

 

(a)                                  The Performance Units that are granted hereby shall be subject to the Forfeiture Restrictions.  The Executive shall have no vested interest in the Performance Units credited to his or her bookkeeping ledger account except as set forth in this Section 6.  Upon the lapse of the Forfeiture Restrictions applicable to a Performance Unit that is awarded hereby or such later date provided in Section 6(d) or (f), the Company shall issue to the Executive that number of shares of Common Stock calculated pursuant to Section 6(b) through (j) below, as applicable, in exchange for such Performance Unit and pay the Dividend Equivalents, with respect to that number of shares of Common Stock issued, as provided in Section 4(a), and thereafter the Executive shall have no further rights with respect to such Performance Unit.

 

(b)                                  If the Executive’s employment with the Company and its subsidiaries has not terminated prior to April 13, 20    , then on such date the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive that number of shares of Common Stock equal to the Adjusted Number of Target Shares multiplied by the applicable Percentage Target Earned Factor (each as further described below):

 

(i)                                      The “ Adjusted Number of Target Shares ” shall be calculated as follows: (A) if Adjusted EPS is less than $          , the Target Shares shall be multiplied by 0%, (B) if Adjusted EPS is $          , the Target Shares shall be multiplied by 50%, (C) if Adjusted EPS is $          , the Target Shares shall be multiplied by 100%, (D) if Adjusted EPS is $           or more, the Target Shares shall be multiplied by 150%, and (E) if Adjusted EPS is between $           and $           the Target Shares shall be multiplied by a percentage pro-rated based upon the foregoing range as indicated on Exhibit A .  In no event will the Target Shares be multiplied by a percentage that exceeds 150%.

 

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(ii)                                   The applicable “ Percentage Target Earned Factor ” shall be determined as follows: (A) if Relative TSR is at or below the            percentile (counting up from the lowest percentile), then the Percentage Target Earned Factor shall be 50%, (B) if Relative TSR is at the            percentile, then the Percentage Target Earned Factor shall be 100%, (C) if Relative TSR is at or above the            percentile, then the Percentage Target Earned Factor shall be 150%, and (D) if Relative TSR is between the            percentile and the            percentile, then the Percentage Target Earned Factor shall be a percentage pro-rated based upon the foregoing range as indicated on Exhibit B ; provided, however, notwithstanding the above, that in the event that Relative TSR exceeds the            percentile but the Company’s total shareholder return for the three-year period ending                     , 20     (calculated as set forth in the definition of Relative TSR) is less than zero the Percentage Target Earned Factor shall be only 100%.

 

If Adjusted EPS is below $          , then the Forfeiture Restrictions on the Performance Units covered hereby shall not lapse and the Performance Units awarded hereby shall be forfeited as of the close of business on April 13, 20    .  The Committee shall make such adjustments to the definition of Adjusted Number of Target Shares as the Committee deems appropriate to reflect changes in the Common Stock made by the Company after the Grant Date.

 

(c)                                   Notwithstanding any other provision of this Agreement to the contrary, if the Executive remains employed by the Company or a subsidiary until April 13, 20    , and, during the term of the Change in Control Agreement, a Change in Control occurs (i) on or before                     , 20     [the next to last day of the fiscal year], then the Performance Units awarded hereby shall no longer be subject to the adjustments set forth in Section 6(b) above, and on April 13, 20    , the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares equal to the Target Shares or (ii) on or after                     , 20     [the last day of the fiscal year], then on April 13, 20    , the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares of Common Stock calculated in accordance Section 6(b) of this Agreement (and the Company will undertake to require the acquirer to preserve and maintain the Company’s business and accounting in all manner necessary so that all factors needed to prepare the calculations in Section 6(b) will then be available).

 

(d)                                  Notwithstanding any other provision of this Agreement to the contrary, if the Executive’s employment with the Company and its subsidiaries terminates before April 13, 20    , and during the term of the Change in Control Agreement, and on or before                     , 20     [the next to last day of the fiscal year], a Change in Control occurs and on or thereafter such date the Executive’s employment by the Company and its subsidiaries is terminated (A) by the Company and all subsidiaries of the Company otherwise than as a result of the occurrence of an Event of Termination for Cause or (B) by the Executive after the occurrence of an Event of Termination for Good Reason such that the Executive shall be entitled to receive the benefits set forth under Section 7(a)(iv) of the Change in Control Agreement, then all remaining Forfeiture Restrictions shall immediately lapse on the date of the Executive’s Separation From Service and the Executive shall be entitled to receive a number of shares of Common Stock equal to equal to the Target Shares in exchange for such Performance Units (x) on the date of the Executive’s Separation From Service if the Executive is not a Specified Employee or (y) on the date that is six months following the Executive’s Separation From Service if the Executive is a Specified Employee, and thereafter the Executive shall have no further rights with respect to such Performance Unit.

 

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(e)                                   Notwithstanding any other provision of this Agreement to the contrary, if the Executive’s employment with the Company and its subsidiaries terminates before April 13, 20    , and during the term of the Change in Control Agreement, and on or after                     , 20     [the last day of the fiscal year], a Change in Control occurs and on or thereafter such date the Executive’s employment by the Company and its subsidiaries is terminated (A) by the Company and all subsidiaries of the Company otherwise than as a result of the occurrence of an Event of Termination for Cause or (B) by the Executive after the occurrence of an Event of Termination for Good Reason such that the Executive shall be entitled to receive the benefits set forth under Section 7(a)(iv) of the Change in Control Agreement, then on April 13, 20    , the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares of Common Stock calculated in accordance Section 6(b) of this Agreement (and the Company will undertake to require the acquirer to preserve and maintain the Company’s business and accounting in all manner necessary so that all factors needed to prepare the calculations in Section 6(b) will then be available).

 

(f)                                    Notwithstanding any other provision of this Agreement to the contrary, if, during the term of the Change in Control Agreement and on or before                     , 20     [the next to last day of the fiscal year], (i) the Company and all subsidiaries of the Company terminate the Executive’s employment prior to a Change in Control (whether or not a Change in Control ever occurs) otherwise than as a result of the occurrence of an event that would constitute an Event of Termination for Cause if it occurred after a Change in Control and such termination is at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs) or (ii) the Executive terminates his employment with the Company and all subsidiaries of the Company prior to a Change in Control (whether or not a Change in Control ever occurs) after the occurrence of an event that would constitute an Event of Termination for Good Reason if it occurred after a Change in Control, and such termination or the circumstance or event which constitutes an Event of Termination for Good Reason occurs at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs), then all remaining Forfeiture Restrictions shall immediately lapse on the date of the Executive’s Separation From Service and the Executive shall be entitled to receive a number of shares equal to the Target Shares in exchange for such Performance Units (x) on the date of the Executive’s Separation From Service if the Executive is not a Specified Employee or (y) on the date that is six months following the Executive’s Separation From Service if the Executive is a Specified Employee, and thereafter the Executive shall have no further rights with respect to such Performance Unit.

 

(g)                                   Notwithstanding any other provision of this Agreement to the contrary, if, during the term of the Change in Control Agreement and on or after                       , 20     [the last day of the fiscal year], (i) the Company and all subsidiaries of the Company terminate the Executive’s employment prior to a Change in Control (whether or not a Change in Control ever occurs) otherwise than as a result of the occurrence of an event that would constitute an Event of

 

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Termination for Cause if it occurred after a Change in Control and such termination is at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs) or (ii) the Executive terminates his employment with the Company and all subsidiaries of the Company prior to a Change in Control (whether or not a Change in Control ever occurs) after the occurrence of an event that would constitute an Event of Termination for Good Reason if it occurred after a Change in Control, and such termination or the circumstance or event which constitutes an Event of Termination for Good Reason occurs at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs), then on April 13, 20    , the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares of Common Stock calculated in accordance Section 6(b) of this Agreement (and the Company will undertake to require the acquirer to preserve and maintain the Company’s business and accounting in all manner necessary so that all factors needed to prepare the calculations in Section 6(b) will then be available).

 

(h)                                  In the event the Executive’s employment with the Company and its subsidiaries terminates before April 13, 20     as a result of the Executive’s Retirement (as defined in the Plan), then on April 13, 20    , (i) provided that the Executive does not compete with the business of the Company and its subsidiaries (as discussed further below) through such date, the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares of Common Stock calculated in accordance with Section 6(b) and pro-rated from the Grant Date through the date the Executive’s employment terminated upon such Retirement or (ii) if the Executive does compete with the business of the Company and its subsidiaries prior to such date, the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares of Common Stock equal to the Target Shares pro-rated from the Grant Date through the date the Executive’s employment terminated upon such Retirement.  For purposes of this Agreement, the term “ compete with the business of the Company and its subsidiaries ” shall include the Executive’s participation in any operations that compete with any business now conducted by the Company or its subsidiaries, including the sale of menswear or shoes at retail, the sale or rental of men’s formal wear, the sale or rental of occupational uniforms or other corporate wear merchandise or any material line of business proposed to be conducted by the Company or one or more of its subsidiaries known to the Executive and with respect to which the Executive devoted time as part of his employment on behalf of the Company or one or more of its subsidiaries, including but not limited to the business of dry cleaning, whether such participation is individually or as an officer, director, joint venturer, agent or holder of an interest (except as a holder of a less than 1% interest in a publicly traded entity or mutual fund) of any individual, corporation, association, partnership, joint venture or other business entity so engaged and shall be applicable with respect to the United States, Canada, the United Kingdom and any other country in which the Executive would be competing with the business of the Company or its subsidiaries as set forth in this Section 6(e).

 

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(i)                                      In the event that the Executive’s employment is terminated by the Company and all of its subsidiaries for any reason other than for Cause before April 13, 20     and the provisions of Section 6(d) through (g) are not applicable with respect to such termination of employment, then on April 13, 20     the Forfeiture Restrictions on the Performance Units shall lapse and the Executive shall be entitled to receive a number of shares of Common Stock calculated in accordance with Section 6(b) and pro-rated from the Grant Date through the date the Executive’s employment is terminated.  For purposes of this Section 6(f), “ Cause ” shall be limited to the occurrence of the following events: (i) conviction of or a plea of nolo contendere to the charge of a felony (which, through lapse of time or otherwise, is not subject to appeal); (ii) willful refusal without proper legal cause to perform, or gross negligence in performing, the Executive’s duties and responsibilities; (iii) material breach of fiduciary duty to the Company and its subsidiaries through the misappropriation of Company or subsidiary funds or property or through fraud; (iv) material breach or default of his obligations or agreements under any agreement with the Company or any of its subsidiaries containing restrictive covenants; (v) willful failure to follow in any material respect the lawful directions or policies of the Board; or (vi) the unauthorized absence of the Executive from work (other than for sick leave or personal disability) for a period of 60 working days or more during a period of 90 working days.

 

(j)                                     Except as otherwise provided in Sections 6(c)-(i), if the Executive’s employment with the Company and all of its subsidiaries terminates prior to April 13, 20    , for any reason other than the death or permanent disability of the Executive, the Forfeiture Restrictions then applicable to the Performance Units shall not lapse and the number of Performance Units then subject to the Forfeiture Restrictions shall be forfeited to the Company on the date the Executive’s employment terminates.  Notwithstanding any other provision of this Agreement to the contrary, if the Executive dies or incurs a permanent disability before April 13, 20    , and while in the active employ of the Company and/or one or more of its subsidiaries, the Executive (or in the event of Executor’s death, the Executive’s executors, administrators or any person or persons to whom the his estate may be transferred by will or by the laws of descent and distribution) shall be entitled to receive on April 13, 20    , a number of shares of Common Stock calculated in accordance with Section 6(b) and pro-rated from the Grant Date through the date of the termination of the Executive’s employment due to death or permanent disability.  For purposes of this Section 6(g), the Executive will incur a “ permanent disability ” if the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company.

 

7.                                            Capital Adjustments and Reorganizations .   The existence of the Performance Units shall not affect in any way the right or power of the Company or any company the stock of which is awarded pursuant to this Agreement to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding.

 

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8.                                            Tax Withholding .   To the extent that the receipt of the Performance Units, any payment in cash or shares of Common Stock or the lapse of any Forfeiture Restrictions results in income to the Executive for federal, state or local income, employment or other tax purposes with respect to which the Company or any Affiliate has a withholding obligation, the Executive shall deliver to the Company at the time of such receipt, payment or lapse, as the case may be, such amount of money as the Company or any Affiliate may require to meet its obligation under applicable tax laws or regulations, and, if the Executive fails to do so, the Company is authorized to withhold from the shares of Common Stock issued in exchange for the Performance Units, any payment in cash or shares of Common Stock under this Agreement or from any cash or stock remuneration then or thereafter payable to the Executive in any capacity any tax required to be withheld by reason of such resulting income, including (without limitation) shares of Common Stock sufficient to satisfy the withholding obligation based on the Fair Market Value of the Common Stock on the date that the withholding obligation arises.

 

9.                                            Nontransferability . This Agreement is not transferable by the Executive otherwise than by will or by the laws of descent and distribution.

 

10.                                     Employment Relationship .   For purposes of this Agreement, the Executive shall be considered to be in the employment of the Company and its Affiliates as long as the Executive has an employment relationship with the Company and its Affiliates.  The Committee shall determine any questions as to whether and when there has been a termination of such employment relationship, and the cause of such termination, under the Plan and the Committee’s determination shall be final and binding on all persons.

 

11.                                     Not an Employment Agreement .   This Agreement is not an employment agreement, and no provision of this Agreement shall be construed or interpreted to create an employment relationship between the Executive and the Company or any Affiliate, to guarantee the right to remain employed by the Company or any Affiliate for any specified term or require the Company or any Affiliate to employ the Executive for any period of time.

 

12.                                     Legend .  The Executive consents to the placing on the certificate for any shares of Common Stock issued under this Agreement in certificated form an appropriate legend restricting resale or other transfer of such shares except in accordance with the Securities Act of 1933 and all applicable rules thereunder.

 

13.                                     Notices .   Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, by telegram, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the then current address of the Company’s Principal Corporate Office, and to the Executive at the Executive’s residential address indicated beneath the Executive’s signature on the execution page of this Agreement, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

 

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14.                                     Amendment and Waiver .   Except as otherwise provided herein or in the Plan or as necessary to implement the provisions of the Plan, this Agreement may be amended, modified or superseded only by written instrument executed by the Company and the Executive.  Only a written instrument executed and delivered by the party waiving compliance hereof shall make any waiver of the terms or conditions.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than the Executive.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner effect the right to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement, in one or more instances, shall be construed as a continuing waiver of any such condition or breach, a waiver of any other condition, or the breach of any other term or condition.

 

15.                                     Arbitration .  In the event of any difference of opinion concerning the meaning or effect of the Plan or this Agreement, such difference shall be resolved by the Committee.  Any controversy arising out of or relating to the Plan or this Agreement shall be resolved by arbitration conducted in accordance with the terms of the Plan.  The arbitration shall be final and binding on the parties.

 

16.                                     Governing Law and Severability .   The validity, construction and performance of this Agreement shall be governed by the laws of the State of Texas, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

 

17.                                     Successors and Assigns .   Subject to the limitations which this Agreement imposes upon the transferability of the Performance Units granted hereby and any shares of Common Stock issued hereunder, this Agreement shall bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and to the Executive, the Executive’s permitted assigns, executors, administrators, agents, legal and personal representatives.

 

18.                                     Counterparts .   This Agreement may be executed in two or more counterparts, each of which shall be an original for all purposes but all of which taken together shall constitute but one and the same instrument.

 

19.                                     Forfeiture for Cause .

 

(a)                                  Notwithstanding any other provision of this Agreement, if a determination is made as provided in Section 19(b) of this Agreement (a “ Forfeiture Determination ”) that (i) the Executive, before or after the termination of the Executive’s employment with the Company and all Affiliates, (A) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate, (B) knowingly caused or assisted in causing the publicly released financial statements of the Company to be misstated or the Company or a subsidiary of the Company to engage in criminal misconduct, (C) disclosed trade secrets of the Company or an Affiliate or (D) violated the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Executive is a party; and (ii) in the case of the actions described in clause (A), (B) and (D), such

 

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action materially and adversely affected the Company, then at or after the time such Forfeiture Determination is made the Board, in its sole discretion, if such Forfeiture Determination is made prior to a Change in Control, or, as determined by a final, non-appealable order of a court of competent jurisdiction, if such Forfeiture Determination is made after a Change in Control, as a fair and equitable forfeiture to reflect the harm done to the Company and a reduction of the benefit bestowed on the Executive had the facts existing at the time the benefit was bestowed that led to the Forfeiture Determination been known to the Company at the time the benefit was bestowed, may determine that:  (x) some or all of the Performance Units awarded under this Agreement (including vested Performance Units that have not been exchanged for shares of Common Stock and Performance Units that have not yet vested), (y) some or all of the Dividend Equivalents that are payable or have been paid under this Agreement and (z) some or all shares of Common Stock exchanged for or otherwise received with respect to the Performance Units and some or all net proceeds realized with respect to any shares of Common Stock received by the Executive in payment of Performance Units, will be forfeited to the Company on such terms as determined by the Board or the final, non-appealable order of a court of competent jurisdiction.

 

(b)                                  A Forfeiture Determination for purposes of Section 19(a) of this Agreement shall be made (i) before the occurrence of a Change in Control, by a majority vote of the Board and (ii) on or after the occurrence of a Change in Control, by the final, nonappealable order of a court of competent jurisdiction.  The findings and decision of the Board with respect to a Forfeiture Determination made before the occurrence of a Change in Control, including those regarding the acts of the Executive and the damage done to the Company, will be final for all purposes absent a showing by clear and convincing evidence of manifest error by the Board.  No decision of the Board, however, will affect the finality of the discharge of the Executive by the Company or an Affiliate.

 

20.                                     Effect on Other Agreements .  THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PERFORMANCE UNITS GRANTED IN THIS AGREEMENT ARE SUBJECT TO THE PROVISIONS OF SECTION 7(e) OF THE CHANGE IN CONTROL AGREEMENT.  The parties acknowledge and agree that the provisions of this Agreement shall supersede any and all other agreements and rights that the Executive has under any employment or other agreements or arrangements between the Executive and the Company, whether in writing or otherwise, with respect to the matters set forth herein.

 

21.                                     Holding Requirements .   If at the time of the lapse date set forth in Section 6 of this Agreement for any Forfeiture Restrictions applicable with respect to any of the Performance Units hereunder the Executive is not then in compliance with the equity ownership guidelines for executive officers of the Company established from time to time by the Company’s Board of Directors or any committee thereof (the “ Ownership Guidelines ”), then 50% of the shares of Common Stock that are received in exchange for such Performance Units in accordance with Section 6 of this Agreement must be retained by the Executive until the earlier of the date the Executive (i) otherwise satisfies such then applicable Ownership Guidelines or (ii) is no longer subject to such guidelines.

 

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IN WITNESS WHEREOF , the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Executive has executed this Agreement, all effective as of the date first above written.

 

 

THE MEN’S WEARHOUSE, INC.

 

 

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

 

EXECUTIVE:

 

 

 

 

 

 

 

 

 

 

Name:

 

 

 

 

 

Address:

 

 

 

 

 



 

EXHIBIT A

 

Pro-rated Percentage By Which Target Shares Multiplied To Determine Adjusted Number of Target Shares If Adjusted EPS Is Between $           and $

 

Adjusted EPS

 

Percentage by Which
Target Shares Multiplied

 

Adjusted EPS

 

Percentage by Which
Target Shares Multiplied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

EXHIBIT B

 

Percentage Target Earned Factor
If Relative TSR Is Between            Percentile And            Percentile

 

Relative TSR Percentile

 

Percentage Target Earned Factor

 

 

 

 

 

 

 

 

 

 


Exhibit 10.3

 

Senior Executive Officer

 

NONQUALIFIED STOCK OPTION AGREEMENT

 

The Men’s Wearhouse, Inc.
2004 Long-Term Incentive Plan

 

This NONQUALIFIED STOCK OPTION AGREEMENT (this “ Agreement ”) is made between The Men’s Wearhouse, Inc., a Texas corporation (the “ Company ”), and                                                                  (the “ Executive ”) effective as of the              day of                                     , 20       ( the “Grant Date” ), pursuant to The Men’s Wearhouse, Inc. 2004 Long-Term Incentive Plan, as amended and restated (the “ Plan ”), a copy of which previously has been made available to the Executive and the terms and provisions of which are incorporated by reference herein.  The Company considers that the Company’s interests will be served by granting the Executive an option to purchase shares of common stock of the Company as an inducement for the Executive’s continued and effective performance of services for the Company or an Affiliate.  Capitalized terms that are not specifically defined in this Agreement shall have the meanings ascribed to them in the Plan or that Change in Control Agreement between the Company and the Executive, dated effective [May 15, 2009] (the “ Change in Control Agreement ”).

 

IT IS AGREED THAT :

 

1.                                       Grant of the Option .  Subject to the terms of the Plan and this Agreement, on the Grant Date the Company has granted to the Executive an option to purchase                                shares of the common stock, $.01 par value per share, of the Company (the “ Common Stock ”) at a price of $                     per share, subject to adjustment as provided in the Plan (the “ Option ”).  The Option shall vest and become exercisable as set forth below:

 

(a)                                  Except as otherwise provided in Section 1(c) and Section 1(d) of this Agreement, no portion of the Option may be exercised until the Executive has completed one (1) year of continuous employment with the Company or any Affiliate following the Grant Date;

 

(b)                                  The Option shall vest and may be exercised in accordance with the following schedule:

 

Date On and After Which
Portion of Option May Be
Exercised

 

Additional Percentage
of Option Vested and
Exercisable

 

Additional Number of Shares
With Respect to Which
Option May Be Exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(c)                                   Notwithstanding any other provision of this Agreement to the contrary, if, during the term of the Change in Control Agreement, and on or before the latest date set forth in Section 1(b), a Change in Control occurs and the Executive’s employment by the Company is terminated (x) by the Company otherwise than as a result of the occurrence of an Event of Termination for Cause or (y) by the Executive after the occurrence of an Event of Termination for Good Reason, such that the Executive shall be entitled to receive the benefits set forth under Section 7(a)(iv) of the Change in Control Agreement, then the Option shall become fully exercisable on the date of the Executive’s Separation From Service.

 



 

(d)                                  Notwithstanding any other provision of this Agreement to the contrary, if, during the term of the Change in Control Agreement and on or before the latest date set forth in Section 1(b), (i) the Company and all subsidiaries of the Company terminate the Executive’s employment prior to a Change in Control (whether or not a Change in Control ever occurs) otherwise than as a result of the occurrence of an event that would constitute an Event of Termination for Cause if it occurred after a Change in Control and such termination is at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs) or (ii) the Executive terminates his employment with the Company and all subsidiaries of the Company prior to a Change in Control (whether or not a Change in Control ever occurs) after the occurrence of an event that would constitute an Event of Termination for Good Reason if it occurred after a Change in Control, and such termination or the circumstance or event which constitutes an Event of Termination for Good Reason occurs at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control or is otherwise in connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs), then the Option shall become fully exercisable on date of the Executive’s Separation From Service.

 

(e)                                   To the extent not exercised, installments shall be cumulative and may be exercised in whole or in part until the Option expires and terminates as provided in Section 4 of this Agreement.

 

(f)                                    In no event shall the Option be exercisable on or after the tenth anniversary of the Grant Date.

 

2.                                       Nontransferability .  Except as specified below, the Option shall not be transferable or assignable by the Executive other than by will or the laws of descent and distribution, and shall be exercisable during the Executive’s lifetime only by the Executive.

 

3.                                       No Vesting After Termination of Employment .  In the event the Executive’s employment with the Company and all Affiliates terminates for any reason, the Option shall not continue to vest after such termination of employment.

 

4.                                       Expiration and Termination of the Option .  The Option shall expire, terminate and become null and void as provided in this Section 4.

 

(a)                                  The Option shall expire and terminate on the earlier of (i) the last day of the 10-year period commencing on the Grant Date (the “ Option General Expiration Date ”) or (ii) one day less than one month after the termination of the Executive’s employment with the Company and all Affiliates for any reason other than death, Disability (as that term is defined in the Plan) or Retirement.

 

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(b)                                  In the event the Executive’s employment with the Company and all Affiliates terminates as a result of the Executive’s death while the Executive is employed by the Company or any Affiliate and before the Option otherwise terminates as provided in Section 4(a) of this Agreement, the Option shall expire and terminate on the earlier of (i) the Option General Expiration Date or (ii) one year following the date of the Executive’s death, during which one year period the Executive’s executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, shall be entitled to exercise the Option in respect of the number of shares that the Executive would have been entitled to purchase had the Executive exercised the Option on the date the Executive’s employment with the Company and all Affiliates terminated as a result of the Executive’s death.

 

(c)                                   In the event the Executive’s employment with the Company and all Affiliates terminates as a result of the Executive incurring a Disability while the Executive is employed by the Company or any Affiliate and before the Option otherwise terminates as provided in Section 4(a) of this Agreement, the Option shall expire and terminate on the earlier of (i) the Option General Expiration Date or (ii) one year following the date on which the Executive’s employment with the Company and all Affiliates terminates as a result of the Executive incurring a Disability, during which one year period the Executive shall be entitled to exercise the Option in respect of the number of shares that the Executive would have been entitled to purchase had the Executive exercised the Option on the date the Executive’s employment with the Company and all Affiliates terminated as a result of the Executive incurring a Disability.

 

(d)                                  In the event the Executive’s employment with the Company and all Affiliates terminates as a result of the Executive’s Retirement before the Option otherwise terminates as provided in Section 4(a) of this Agreement, the Option shall expire and terminate on the earlier of (i) the Option General Expiration Date or (ii) one year following the date of the Executive’s Retirement, during which one year period the Executive shall be entitled to exercise the Option in respect of the number of shares that the Executive would have been entitled to purchase had the Executive exercised the Option on the date of the Executive’s Retirement and if the Executive dies within that one year period, any rights the Executive may have had to exercise the Option shall be exercisable by the Executive’s executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, as appropriate, for the remainder of such one year period.

 

5.                                       Amendment and Waiver .   Except as otherwise provided herein or in the Plan or as necessary to implement the provisions of the Plan, this Agreement may be amended, modified or superseded only by written instrument executed by the Company and the Executive.  Only a written instrument executed and delivered by the party waiving compliance hereof shall make any waiver of the terms or conditions.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than the Executive.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner effect the right to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement, in one or more instances, shall be construed as a continuing waiver of any such condition or breach, a waiver of any other condition, or the breach of any other term or condition.

 

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6.                                       Not an Employment Agreement .   The grant of the Option imposes no obligation on the Company or any Affiliate to employ the Executive for any period.  This Agreement is not an employment agreement, and no provision of this Agreement shall be construed or interpreted to create an employment relationship between the Executive and the Company or any Affiliate or to guarantee the right to remain employed by the Company or any Affiliate for any specified term.

 

7.                                       No Rights of a Stockholder .  The Executive shall not have any rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of the stock certificate or certificates to the Executive for such shares following the Executive’s exercise of the Option, in whole or in part, pursuant to its terms and conditions of this Agreement and the Plan and payment for such shares and all withholding tax obligations with respect thereto.  No adjustment shall be made for dividends or other rights for which the record date is prior to the date such certificate or certificates are issued.

 

8.                                       Limits on Exercisability .  The Option shall not be exercisable until (a) the effective registration under the Securities Act of 1933, as amended (the “ Act ”), of the shares to be received pursuant to this Agreement (unless in the opinion of counsel for the Company such offering is exempt from registration under the Act); and (b) compliance with all other applicable laws.  If the Executive is an officer or “affiliate” of the Company (as such term is defined under the Act), the Executive consents to the placing on the certificate for any shares acquired upon exercise of the Option of an appropriate legend restricting resale or other transfer of such shares, except in accordance with the Act and all applicable rules thereunder.

 

9.                                       Tax Withholding .   To the extent that the receipt or exercise of the Option results in income to the Executive for federal, state or local income, employment or other tax purposes with respect to which the Company or any Affiliate has a withholding obligation, the Executive shall deliver to the Company at the time of such receipt or exercise, as the case may be, such amount of money as the Company or any Affiliate may require to meet its obligation under applicable tax laws or regulations, and, if the Executive fails to do so, the Company is authorized to withhold from the shares of the Common Stock issued under this Agreement or from any cash or stock remuneration then or thereafter payable to the Executive in any capacity any tax required to be withheld by reason of such resulting income, including (without limitation) the shares of the Common Stock, sufficient to satisfy the withholding obligation based on the Fair Market Value of the Common Stock on the date that the withholding obligation arises.

 

10.                                Arbitration .  In the event of any difference of opinion concerning the meaning or effect of the Plan or this Agreement, such difference shall be resolved by the Committee.  Any controversy arising out of or relating to the Plan or this Agreement shall be resolved by arbitration conducted in accordance with the terms of the Plan.  The arbitration shall be final and binding on the parties.

 

11.                                Governing Law and Severability .   The validity, construction and performance of this Agreement shall be governed by the laws of the State of Texas, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

 

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12.                                Notices .   Any offer, notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, by telegram, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the then current address of the Company’s Principal Corporate Office, and to the Executive at the Executive’s residential address indicated beneath the Executive’s signature on the execution page of this Agreement, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

 

13.                                Successors and Assigns .   This Agreement shall, except as herein stated to the contrary, bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and to the Executive, the Executive’s permitted assigns, executors, administrators, agents, legal and personal representatives.

 

14.                                Type of Option .  The Option is a nonqualified stock option which is not intended to be governed by section 422 of the Internal Revenue Code of 1986, as amended.

 

15.                                Acceptance of Plan Terms .  In accepting the Option and this Agreement, the Executive accepts and agrees to be bound by all the terms and conditions of the Plan.

 

16.                                Forfeiture for Cause .

 

(a)                                  Notwithstanding any other provision of this Agreement, if a determination is made as provided in Section 16(b) of this Agreement (a “ Forfeiture Determination ”) that (i) the Executive, before or after the termination of the Executive’s employment with the Company and all Affiliates, (A) committed fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate, (B) knowingly caused or assisted in causing the publicly released financial statements of the Company to be misstated or the Company or a subsidiary of the Company to engage in criminal misconduct, (C) disclosed trade secrets of the Company or an Affiliate or (D) violated the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Executive is a party; and (ii) in the case of the actions described in clause (A), (B) and (D), such action materially and adversely affected the Company, then at or after the time such Forfeiture Determination is made the Board, in its sole discretion, if such Forfeiture Determination is made prior to a Change in Control, or, as determined by a final, non-appealable order of a court of competent jurisdiction, if such Forfeiture Determination is made after a Change in Control, as a fair and equitable forfeiture to reflect the harm done to the Company and a reduction of the benefit bestowed on the Executive had the facts existing at the time the benefit was bestowed that led to the Forfeiture Determination been known to the Company at the time

 

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the benefit was bestowed, may determine that:  (x) some or all of the Executive’s rights to shares of the Common Stock covered by the Option under this Agreement (including vested rights that have been exercised, vested rights that have not been exercised and rights that have not yet vested), (y) some or all of the dividends that have been paid with respect to shares of the Common Stock covered by the Option under this Agreement, and (z) some or all shares of the Common Stock received as a result of the Executive’s exercise of the Option and some or all net proceeds realized with respect to any shares of the Common Stock received as a result of the Executive’s exercise of the Option in excess of the price paid for such shares under this Agreement, will be forfeited to the Company on such terms as determined by the Board or the final, non-appealable order of a court of competent jurisdiction.

 

(b)                                  A Forfeiture Determination for purposes of Section 16(a) of this Agreement shall be made (i) before the occurrence of a Change in Control, by a majority vote of the Board and (ii) on or after the occurrence of a Change in Control, by the final, nonappealable order of a court of competent jurisdiction.  The findings and decision of the Board with respect to a Forfeiture Determination made before the occurrence of a Change in Control, including those regarding the acts of the Executive and the damage done to the Company, will be final for all purposes absent a showing by clear and convincing evidence of manifest error by the Board.  No decision of the Board, however, will affect the finality of the discharge of the Executive by the Company or an Affiliate.

 

17.                                Counterparts .   This Agreement may be executed in two or more counterparts, each of which shall be an original for all purposes but all of which taken together shall constitute but one and the same instrument.

 

18.                                Effect on Other Agreements THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PROVISIONS OF SECTION 1(c) AND SECTION 1(d) OF THIS AGREEMENT AMEND AND SUPERSEDE THE PROVISIONS OF SECTION 7(d)(i) OF THE CHANGE IN CONTROL AGREEMENT WITH RESPECT TO THE OPTION.  THE PARTIES ACKNOWLEDGE AND AGREE THAT THE OPTION REMAINS SUBJECT TO THE PROVISIONS OF SECTION 7(e) OF THE CHANGE IN CONTROL AGREEMENT.  THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PROVISIONS OF THIS AGREEMENT SHALL AMEND AND SUPERSEDE ANY AND ALL OTHER AGREEMENTS AND RIGHTS THAT THE EXECUTIVE HAS UNDER ANY EMPLOYMENT OR OTHER AGREEMENTS OR ARRANGEMENTS WITH THE COMPANY, WHETHER IN WRITING OR OTHERWISE, WITH RESPECT TO THE MATTERS SET FORTH HEREIN.

 

19.                                Holding Requirements .   If at the time of any exercise of the Option the Executive is not then in compliance with the equity ownership guidelines for executive officers of the Company established from time to time by the Company’s Board of Directors or any committee thereof (the “ Ownership Guidelines ”), then 50% of the shares of the Common Stock that are received by the Executive upon exercise of the Option in accordance with this Agreement must be retained by the Executive until the earlier of the date the Executive (i) otherwise satisfies such then applicable Ownership Guidelines or (ii) is no longer subject to such guidelines.

 

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IN WITNESS WHEREOF , the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Executive has executed this Agreement, all effective as of the date first above written.

 

 

THE MEN’S WEARHOUSE, INC.

 

 

 

 

 

By:

 

 

 

Name:

 

Title:

 

 

 

 

 

EXECUTIVE:

 

 

 

 

 

 

 

Name:

 

 

 

 

 

Address:

 

 

 

 

 

 

 

 


Exhibit 99.1

 

 

For Immediate Release

 

 

News Release

 

Contact:

Kelly Dilts, SVP, Finance & IR

(281) 776-7239

 

Ken Dennard

Dennard · Lascar Associates

(713) 529-6600

 

MEN’S WEARHOUSE BOARD PROMOTES BLAKE TO PRESIDENT

 

FREMONT, CA — September 16, 2014 — Men’s Wearhouse (NYSE: MW) today announced that its Board of Directors has named Mary Beth Blake as the Company’s President and Chief Merchandising Officer, effective September 10, 2014.  She was previously Executive Vice President and Chief Merchandising Officer.  She will continue reporting to Doug Ewert, Men’s Wearhouse CEO.

 

Commenting on Ms. Blake’s appointment, Ewert stated, “Mary Beth has been an integral part of our management team since 2008 and has spent her entire career developing creative initiatives to drive sales, expand gross margins and build successful teams.”

 

From 2013 to 2014, Blake was Executive Vice President and Chief Merchandising Officer and from 2008 to 2013 she was the President of K&G. Before joining K&G, she was with Macy’s Midwest Division as Senior Vice President, General Merchandise Manager for Men’s and Children’s. Blake began her career in merchandising in 1989 with May Department Stores, Famous Barr Division, in St. Louis and successfully worked her way up through that organization, starting as an Assistant Buyer to being appointed Senior Vice President, General Merchandise Manager in September 2002.

 

Founded in 1973, Men’s Wearhouse is one of North America’s largest specialty retailers of men’s apparel with 1,756 stores.  The Men’s Wearhouse, Jos. A. Bank, Moores and K&G stores carry a full selection of suits, sport coats, furnishings and accessories in exclusive and non-exclusive merchandise brands and Men’s Wearhouse and Tux stores carry a limited selection.  Most K&G stores carry a full selection of women’s apparel.  Tuxedo rentals are available in the Men’s Wearhouse, Jos. A. Bank, Moores and Men’s Wearhouse and Tux stores.  Additionally, Men’s Wearhouse operates a global corporate apparel and workwear group consisting of Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.

 

For additional information on Men’s Wearhouse, please visit the Company’s websites at www.menswearhouse.com, www.josbank.com, www.mooresclothing.com, www.kgstores.com, www.twinhill.com, www.dimensions.co.uk and www.alexandra.co.uk.

 

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