Form of Stock Appreciation Right Agreement – Marriott International
FORM OF STOCK APPRECIATION RIGHT AGREEMENT
MARRIOTT INTERNATIONAL, INC.
STOCK AND CASH INCENTIVE PLAN
(OFF-CYCLE GRANTS)
THIS AGREEMENT (the “Agreement”) is made on <GRANT
DATE> (the “Award Date”) by MARRIOTT INTERNATIONAL, INC. (the
“Company”) and <PARTICIPANT NAME> (“Employee”).
WITNESSETH:
WHEREAS, the Company maintains the Marriott International, Inc. Stock and
Cash Incentive Plan, as amended (the “Plan”); and
WHEREAS, the Company wishes to award to designated employees certain stock
appreciation right awards (“SARs” or “Awards”) as provided in Article 6 of the
Plan; and
WHEREAS, Employee has been approved by the Compensation Policy Committee (the
“Committee”) of the Company153s Board of Directors (the “Board”) to receive an
award of SARs under the Plan;
NOW, THEREFORE, it is agreed as follows:
1. Prospectus. Employee has been provided
with, and hereby acknowledges receipt of, a Prospectus for the Plan dated
<DATE>, which contains, among other things, a detailed
description of the SAR provisions of the Plan.
2. Interpretation. The provisions of the
Plan are incorporated by reference and form an integral part of this Agreement.
Except as otherwise set forth herein, capitalized terms used herein shall have
the meanings given to them in the Plan. In the event of any inconsistency
between this Agreement and the Plan, the terms of the Plan shall govern. A copy
of the Plan is available from the Compensation Department of the Company upon
request. All decisions and interpretations made by the Committee or its delegate
with regard to any question arising hereunder or under the Plan shall be binding
and conclusive.
3. Grant of SARs. The Company hereby grants to Employee as
of the Grant Date SARs on <QTY GRANTED> shares of the
Company153s Common Stock (the “SAR Shares”), subject to the terms and conditions
of the Plan, Employee153s acceptance of this Agreement and satisfaction of the tax
provisions of the Company153s International Assignment Policy (“IAP”), if
applicable. Under this Agreement, upon satisfying the conditions for exercising
SARs as set forth in paragraphs 5 and 6 below, Employee shall receive a number
of shares of Common Stock of the Company equal to the number of SAR shares that
are being exercised under such SARs multiplied by the quotient of (a) the Final
Value minus the Base Value, divided by (b) the Final Value.
4. Base Value and Final Value. Subject to Paragraph 12
hereof, the Base Value per share of the SAR Shares is <GRANT
PRICE> and the Final Value is the Fair Market Value of a Share of
Common Stock of the Company as of the date the SARs are exercised.
5. Waiting Period and Exercise Dates. The SAR Shares may not
be exercised before <DATE> (the “waiting period”).
Following the waiting period, the SAR Shares may be exercised in accordance with
the following schedule: <PERCENTAGE>% of the SAR Shares
commencing on the <DATES>, respectively. To the extent
that the SARs are not exercised by Employee when they become initially
exercisable, the SARs shall not expire but shall be carried forward and shall be
exercisable at any time thereafter; provided, however, that the SARs shall not
be exercisable after the expiration of ten (10) years from the Grant Date or
sooner as set forth in paragraph 9, if applicable. Exercise of the SARs shall
not be dependent upon the prior or sequential exercise of any other SARs
heretofore granted to Employee by the Company. Except as provided in Article 6
of the Plan and Paragraph 9 below, the SARs may not be exercised at any time
unless Employee shall then be an employee of the Company.
6. Method of Exercising SARs. To exercise the SARs, the
person entitled to exercise the SARs must provide a signed written notice or the
equivalent to the Company or its designee, as prescribed in the administrative
procedures of the Plan, stating the number of SAR Shares with respect to which
the SARs are being exercised. The SARs may be exercised by (a) making provision
for the satisfaction of the applicable withholding taxes, and (b) an undertaking
to furnish and execute such documents as the Company deems necessary (i) to
evidence such exercise, and (ii) to determine whether registration is then
required to comply with the Securities Act of 1933 or any other law. Upon
satisfying the conditions for exercise including the provision for the
satisfaction of the withholding taxes, the Company shall provide confirmation
from the Plan record keeper
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that the transfer agent for the common stock of the Company is holding shares
for the account of such person in a certificateless account. The exercise of the
SARs may be made by any other means that the Committee determines to be
consistent with the Plan153s purpose and applicable law.
7. Rights as a Shareholder. Employee shall have no rights as
a shareholder with respect to any SAR Shares covered by the SARs granted hereby
until the date of acquisition by Employee of such SAR Shares. No adjustment
shall be made for dividends or other rights for which the record date is prior
to such date.
8. Non-Assignability. The SARs shall not be assignable or
transferable by Employee except by will or by the laws of descent and
distribution. During Employee153s lifetime, the SARs may be exercised only by
Employee or, in the event of incompetence, by Employee153s legally appointed
guardian.
9. Effect of Termination of Employment or Death. If Employee
goes on leave of absence for a period of greater than twelve months (except a
leave of absence approved by the Board of Directors or the Committee) or ceases
to be an employee of the Company for any reason except death, the portion of the
SARs which is unexercisable on the date on which Employee ceased to be an
Employee or has been on a leave of absence for over twelve months (except a
leave of absence approved by the Board or Committee) shall expire on such date
and any unexercised portion of the SARs which was otherwise exercisable on such
date shall expire at the earlier of (i) the expiration of the SARs in accordance
with the term for which the SARs were granted, or (ii) three months from such
date, except in the case of an Employee who is an “Approved Retiree” as defined
below. If Employee is an Approved Retiree, then the SARs shall expire at the
sooner to occur of (i) the expiration of such SARs in accordance with their
original term, or (ii) the expiration of five years from the date of retirement.
Notwithstanding the preceding sentence, if an Approved Retiree retires before
<DATE>, the Approved Retiree153s SARs granted hereunder
shall expire immediately with respect to the number of such MI Shares granted
under this Agreement multiplied by the ratio of (a) the number of days after the
Approved Retiree153s retirement date and before <DATE>,
over (b) the number of days on and after the Grant Date and before
<DATE>. In the event of the death of Employee without
Approved Retiree status during the three (3) month period following termination
of employment or a leave of absence over twelve (12) months (except a leave of
absence approved by the Board or Committee), the SARs shall be exercisable by
Employee153s personal representative, heirs or legatees to the same extent and
during the same period that Employee could have exercised the SAR if Employee
had not died. In the event of the death of Employee while an employee of the
Company or while an Approved Retiree, the SAR (if the waiting period has
elapsed) shall be exercisable in its entirety by Employee153s personal
representatives, heirs or legatees at any time prior to the expiration of one
year from the date of the death of Employee, but in no event after the term for
which the SAR was granted. For purposes of this Agreement, an “Approved Retiree”
is any SAR holder who (i) terminates employment by reason of a Disability, or
(ii) (A) retires from employment with the Company with the specific approval of
the Committee on or after such date on which the SAR holder has attained age 55
and completed 10 Years of Service, and (B) has entered into and has not breached
an agreement to refrain from Engaging in Competition in form and substance
satisfactory to the Committee; and if the Committee subsequently determines, in
its sole discretion, that an Approved Retiree has violated the provisions of the
Agreement to refrain from Engaging in Competition, or has engaged in willful
acts or omissions or acts or omissions of gross negligence that are or
potentially are injurious to the Company153s operations, financial condition or
business reputation, such Approved Retiree shall have ninety (90) days from the
date of such finding within which to exercise any SARs or portions thereof which
are exercisable on such date, and any SARs or portions thereof which are not
exercised within such ninety (90) day period shall expire and any SARs or
portion thereof which are not exercisable on such date shall be cancelled on
such date.
10. Consent. By executing this Agreement, Employee consents
to the collection, maintenance and processing of Employee153s personal information
(such as Employee153s name, home address, home telephone number and email address,
social security number, assets and income information, birth date, hire date,
termination date, other employment information, citizenship, marital status) by
the Company and the Company153s service providers for the purposes of (i)
administering the Plan (including ensuring that the conditions of transfer are
satisfied from the Award Date through the Exercise Date), (ii) providing
Employee with services in connection with Employee153s participation in the Plan,
(iii) meeting legal and regulatory requirements and (iv) for any other purpose
to which Employee may consent (“Permitted Purposes”). Employee153s personal
information will not be processed for longer than is necessary for such
Permitted Purposes. Employee153s personal information is collected from the
following sources:
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(a) |
from this Agreement, investor questionnaires or other forms that Employee |
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(b) |
from Employee153s transactions with the Company, the Company153s affiliates and |
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(c) |
from Employee153s employment records with the Company; and |
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(d) |
from meetings, telephone conversations and other communications with |
In addition, Employee further consents to the Company disclosing Employee153s
personal information to the Company153s third party service providers and
affiliates and other entities in connection with the services the Company
provides related to Employee153s participation in the Plan, including:
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(a) |
financial service providers, such as broker-dealers, custodians, banks and |
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(b) |
other service providers to the Plan, such as accounting, legal, or tax |
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(c) |
regulatory authorities; and |
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(d) |
transfer agents, portfolio companies, brokerage firms and the like, in |
Where Employee153s personal information is provided to such third parties the
Company requires (to the extent permitted by applicable law) that such parties,
agree to process Employee153s personal information in accordance with the
Company153s instructions.
Employee153s personal information is maintained on the Company153s networks and
the networks of the Company153s service providers, which may be in the United
States or other countries other than the country in which this Award was
granted. Employee acknowledges and agrees that the transfer of Employee153s
personal information to the United States or other countries other than the
country in which this Award was granted is necessary for the Permitted Purposes.
To the extent (if any) that the provisions of the European Union153s Data
Protection Directive (Directive 95/46/EC of the European Parliament and of the
Council) and/or applicable national legislation derived from such Directive
apply, then by executing this Agreement Employee expressly consents to the
transfer of Employee153s personal information outside of the European Economic
Area. Employee may access Employee153s personal information to verify its
accuracy, update Employee153s personal information and/or request a copy of
Employee153s personal information by contacting Employee153s local Human Resources
representative. Employee may obtain account transaction information online or by
contacting the Plan record keeper as described in the Plan enrollment materials.
By accepting the terms of this Agreement, Employee further agrees to the same
terms with respect to other Awards Employee received in any prior year under the
Plan.
11. No Additional Rights. Benefits under this Plan are not
guaranteed. The grant of Awards is a one-time benefit and does not create any
contractual or other right or claim to any future grants of Awards under the
Plan, nor does a grant of Awards guarantee future participation in the Plan. The
value of Employee153s Awards is an extraordinary item outside the scope of
Employee153s employment contract, if any. Employee153s Awards are not part of normal
or expected compensation for purposes of calculating any severance, resignation,
redundancy, end-of-service payments, bonuses, long-term service awards, pension
or retirement benefits (except as otherwise provided by the terms of any
U.S.-qualified retirement or pension plan maintained by the Company or any of
its subsidiaries), or similar payments. By accepting the terms of this
Agreement, Employee further agrees to these same terms and conditions with
respect to any other Awards Employee received in any prior year under the Plan.
12. Recapitalization or Reorganization. Certain events
affecting the Common Stock of the Company and mergers, consolidations and
reorganizations affecting the Company may affect the number or type of
securities deliverable upon exercise of the SAR or limit the remaining term over
which the SAR may be exercised.
13. General Restriction. In accordance with the terms of the
Plan, the Company may limit or suspend the exercisability of the SARs or the
purchase or issuance of SAR Shares thereunder under certain circumstances. Any
delay caused thereby shall in no way affect the date of termination of the SARs.
14. Amendment of This Agreement. The Board of Directors may
at any time amend, suspend or terminate the Plan; provided, however, that no
amendment, suspension or termination of the Plan or the SARs shall adversely
affect in any material way the SARs without the written consent of Employee.
15. Notices. Notices hereunder shall be in writing, and if
to the Company, may be delivered personally to the Compensation Department or
such other party as designated by the Company or mailed to its principal office
at 10400 Fernwood Road, Bethesda, Maryland 20817, addressed to the attention of
the SAR Administrator (Department 935.40), and if to Employee, may be delivered
personally or mailed to Employee at his or her address on the records of the
Company.
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16. Successors and Assigns. This Agreement shall bind and
inure to the benefit of the parties hereto and the successors and assigns of the
Company and, to the extent provided in Paragraph 9 above and the provisions of
the Plan, to the personal representatives, legatees and heirs of Employee.
17. No Effect on Employment. Nothing contained in this
Agreement shall be construed to limit or restrict the right of the Company to
terminate Employee153s employment at any time, with or without cause, or to
increase or decrease Employee153s compensation from the rate of compensation in
existence at the time this Agreement is executed.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement to be effective as of the Grant Date.
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MARRIOTT INTERNATIONAL, INC. |
EMPLOYEE |
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<PARTICIPANT NAME> |
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<EMPLOYEE ID> |
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Executive Vice President, Global Human Resources |
Signed Electronically |
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