Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
(e) On
Under the terms of the awards, each Executive has an opportunity to earn certain
amounts (shown at target award levels for each Performance Period):
Such RSUs will vest on the Vesting Date, subject to the Executive's continued employment with the Company through the Vesting Date except in the event of death, disability or a qualifying termination (without cause or for good reason) within two years following a change in control (in circumstances in which the awards are assumed by the acquiror in the transaction). Any amounts earned for completed Performance Periods prior to death or disability will not be forfeited and the Executive (or his or her estate) will be entitled to the related RSUs (but any remaining balance of such awards attributable to current or future Performance Periods will be cancelled and forfeited). In the event of a qualifying termination associated with a change in control, or in the event of a change in control in which the Special Performance Awards are not assumed by the acquiror, the amounts earned will be determined as follows: (i) for any completed Performance Periods, the amount earned will be based on actual AOP performance for such periods and (ii) for current and future Performance Periods, such amounts will be deemed earned at target.
Consistent with the Company's other equity awards, the Special Performance Awards are subject to (i) forfeiture in the event of a breach of the Executive's non-competition, non-solicitation, and confidentiality obligations to the Company, and (ii) the Company's clawback policy.
The foregoing description of the Special Performance Awards does not purport to be complete and is qualified in its entirety by reference to the form of Special Performance Award Agreement, a copy of which is attached hereto as Exhibit 10.1, and the terms of which are incorporated herein by reference.
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Item 7.01 Regulation FD
The Special Performance Awards were put in place to incentivize our senior
management to achieve stretch targets for AOP. The Target AOP goals are not
intended to be financial guidance for any of the years covered by the Special
Performance Awards, but rather represent significant, challenging but achievable
upside to the business, based on historical results. The Company's operating
profit outlook for 2023 remains at
This Current Report contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that are subject
to risks and uncertainties. The factors that could cause actual results to
differ materially from the forward-looking statements made by the Company
include those factors discussed herein, as well as the items discussed in the
Company's periodic filings with the
The information furnished pursuant to this Item 7.01, together with any information incorporated by reference herein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits Exhibit No. Exhibit Description 10.1 Form of Special Performance Award Agreement 104 Cover Page Interactive Data File (embedded within Inline XBRL document)
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