Deferred Stock Unit Award Agreement «Participant_Name» «Grant_Date»
Exhibit 10.50
Deferred Stock Unit
Award Agreement
Award Agreement
«Participant_Name»
«Grant_Date»
Tractor Supply Company
Deferred Stock Unit Award Agreement
Deferred Stock Unit Award Agreement
THIS AGREEMENT, effective «Grant_Date», represents the grant of Deferred Stock Units by Tractor
Supply Company (the “Company”), to «Participant_Name», Director, pursuant to the provisions of the
2006 Stock Incentive Plan (the “Plan”).
The Plan provides a complete description of the terms and conditions governing the Deferred Stock
Units. If there is any inconsistency between the terms of this Agreement and the terms of the Plan,
the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement.
All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set
forth otherwise herein. The parties hereto agree as follows:
Overview of the Director’s Award
| 1. | Date of Grant. «Grant_Date» |
| 2. | Grant of Deferred Stock Units. The Company hereby grants the Director «Shares_Granted»
Deferred Stock Units pursuant to the terms and conditions contained herein. |
| 3. | Vesting Period. One hundred percent (100%) of the Deferred Stock Units will vest over the
subject Term as director, provided the Director has continued in the service of the Company
through such date. |
| 4. | Termination of Service. Subject to the requirements set forth in Paragraph 8, and unless
otherwise determined by the Committee at the time of the Director’s termination of service,
all unvested Deferred Stock Units held by the Director upon termination of service shall be
forfeited to the Company. |
| 5. | Payment of Deferred Stock Units. The Director shall be entitled to receive Shares for
Deferred Stock Units whose restrictions have lapsed pursuant to Paragraphs 3 or 8 herein. The
Director will receive a number of Shares equal to the number of vested Deferred Stock Units.
The Shares will be distributed to the Director one year following the date on which the
Director’s service on the Board terminates. Notwithstanding the foregoing, if the Director’s
service is terminated due to a Change in Control, the Shares (or the value of the Shares)
shall be distributed to the Director 30 days following the Change in Control; provided
however, if the change in control does not qualify for a Change in Control as defined under
Code Section 409A the Shares (or the value of the Shares) shall not be distributed until one
year following the date in which the Director’s service on the Board terminates. |
| 6. | Dividends. Currently the Company does not pay dividends on its Shares; however, the Director
shall be entitled to receive dividend equivalents, which represent the right to receive cash
payments or Shares, measured by the dividend payable with respect to the corresponding number
of Deferred Stock Units, if the Company begins paying dividends
during the mandatory deferral period. Such dividend equivalents shall be paid in cash or
Shares 30 days following the date in which the dividend is distributed to the shareholders. |
«Participant_Name»
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| 7. | Rights as Stockholder. The Director shall not have voting or any other rights as a
shareholder of the Company with respect to Deferred Stock Units. The Director will obtain full
voting and other rights as a shareholder of the Company upon the settlement of Deferred Stock
Units in Shares. |
| 8. | Change in Control. In the event of a Change in Control of the Company, all then-outstanding
Deferred Stock Units shall vest in full and the Shares (or value of such Shares) shall be
distributed to the Director as provided in Paragraph 5 of this Agreement. |
| 9. | Non-transferability. The Deferred Stock Units awarded pursuant to this Agreement may not be
sold, transferred, pledged, assigned or otherwise alienated or hypothecated (“Transfer”) other
than by will or by the laws of descent and distribution, except as provided in the Plan. If
any Transfer, whether voluntary or involuntary, of Deferred Stock Units is made, or if any
attachment, execution, garnishment, or lien shall be issued against or placed upon the
Deferred Stock Units, the Director’s right to such Deferred Stock Units shall be immediately
forfeited to the Company, and this Agreement shall lapse. |
| 10. | Requirements of Law. The granting of Deferred Stock Units under the Plan shall be subject to
all applicable laws, rules, and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. |
| 11. | Administration. This Agreement and the Director’s rights hereunder are subject to all the
terms and conditions of the Plan, as the same may be amended from time to time, as well as to
such rules and regulations as the Committee may adopt for administration of the Plan. It is
expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan and this Agreement,
all of which shall be binding upon the Director. |
| 12. | Continuation of Directorship. This Agreement shall not confer upon the Director any right to
continuation of service with the Company nor shall this Agreement interfere in any way with
the Board’s right to terminate the Director’s service at any time. |
| 13. | Amendment to the Plan and/or this Agreement. The Plan is discretionary in nature and the
Committee may terminate, amend, or modify the Plan; provided, however, that no such
termination, amendment, or modification of the Plan may in any way adversely affect the
Director’s rights under this Agreement, without the Director’s written approval. Any amendment
and/or termination of this Agreement will not accelerate a payment date if such amendment or
termination would subject such amounts to taxation under Code Section 409A. |
| 14. | Successor. All obligations of the Company under the Plan and this Agreement, with respect to
the Deferred Stock Units, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or
assets of the Company. |
«Participant_Name»
2
| 15. | Severability. The provisions of this Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable. |
| 16. | Applicable Laws and Consent to Jurisdiction. The validity, construction, interpretation, and
enforceability of this Agreement shall be determined and governed by the laws of the state of
Tennessee without giving effect to the principles of conflicts of law. For the purpose of
litigating any dispute that arises under this Agreement, the parties hereby consent to
exclusive jurisdiction and agree that such litigation shall be conducted in the federal or
state courts of the state of Tennessee. |
| 17. | Voiding of Agreement Provision. If a provision under this Agreement causes an amount to
become subject to taxes and penalties under Code Section 409A, such amount shall be deemed
null and void and the Committee has the ability to take whatever steps required to accomplish
the objectives of the Agreement without causing such amount to be subject to tax and
penalties, and without the Company incurring additional cost or liability. |
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of
«Grant_Date».
Tractor Supply Company:
By: |
||||
| Director: | ||||
| «Participant_Name» | ||||
| Signature | ||||
«Participant_Name»
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