EXHIBIT 10.3
WEC ENERGY GROUP, INC.
RESTRICTED STOCK AWARD TERMS AND CONDITIONS
2022
1.AWARD
Subject to the terms, conditions and restrictions provided in the Notice of Restricted Stock Award (the “Notice”), this Stock Award and the Plan, WEC Energy Group, Inc. (the “Company”) grants to the Employee a restricted stock award pursuant to the WEC Energy Group Omnibus Stock Incentive Plan as amended and restated effective as of May 6, 2021 (the “Plan”). The Stock Award covers a number of shares of the common stock of the Company, as set forth in the Notice, effective as of the date set forth in the Notice (the “Award Date”). The shares granted under the Stock Award shall be referred to as “Restricted Stock.”
2.RESTRICTED PERIOD; VESTING
(a)Restricted Period. During the period beginning on the Award Date and ending on the day before the third anniversary of the Award Date (the “Restricted Period”), to the extent that all or any portion of the Stock Award is not vested, the Employee may not sell, transfer, pledge, assign, or otherwise alienate or hypothecate, voluntarily or involuntarily, shares covered by the non-vested portion of the Stock Award, except by will or the laws of descent and distribution. As the Stock Award vests in accordance with subsection 2(b), the vested portion of the Stock Award shall be free of the foregoing restrictions.
(b)Vesting. As long as the Employee remains an employee of the Company or its subsidiaries, the Stock Award will vest over the Restricted Period in accordance with the following schedule (provided, however, if a vesting date falls on a weekend or any other day which is not a business day, the applicable portion of the Stock Award shall vest on the next following business day):
| Years of Service from the Award Date | % of Shares Becoming Vested (rounded to the nearest whole share) | ||||
| Less than 1 | 0% | ||||
| At least 1, but less than 2 | 33.33% | ||||
| At least 2, but less than 3 | 33.33% | ||||
| At least 3 | 33.34% | ||||
For purposes of the foregoing, “Years of Service” shall commence as of the Award Date and mean years of service completed with the Company or a subsidiary. No termination of employment shall be deemed to have occurred by reason of a transfer of the Employee between the Company and a subsidiary or between two subsidiaries.
(c)Notwithstanding subsection 2(b), the following provisions shall govern:
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(i)Termination due to Death or Disability.
If, during the Restricted Period, the Employee’s employment with the Company and its subsidiaries terminates by reason of the Employee’s disability or death, any unvested portion of the Stock Award shall become fully vested with respect to all shares covered by the Stock Award and all transfer restrictions shall lapse. For purposes of the foregoing, “disability” shall mean separation from the service of the Company or a subsidiary because of such illness or injury as renders the Employee unable to perform the material duties of the Employee’s job.
(ii)Termination without Cause or for Good Reason Following Occurrence of Change in Control. If, during the Restricted Period, the Employee's employment with the Company and its subsidiaries terminates by the Company without cause or by the Employee for good reason, in each case within twenty-four (24) months following the occurrence of a change in control of the Company, any unvested portion of the Stock Award shall become fully vested with respect to all shares covered by the Stock Award and all transfer restrictions shall lapse. For purposes of the foregoing, "cause", "good reason" and "change in control" shall have the meanings provided in paragraph 14 of the Plan.
(iii)Other Termination. If the Employee’s employment terminates for any reason other than those described in subparagraph (i) or subparagraph (ii) above during the Restricted Period (excluding transfers as noted under subsection 2(b)), the Employee shall forfeit all shares covered by the unvested portion of the Stock Award (determined above in subsection 2(b)) as of the date of such termination, without any further obligation of the Company to the Employee and all rights of the Employee with respect to such Restricted Stock shall terminate. Notwithstanding the foregoing, the Compensation Committee may, in its discretion, vest shares upon the Employee’s termination from employment.
3.RIGHTS DURING RESTRICTED PERIOD
The Employee, during the Restricted Period, shall have the right to vote the Restricted Stock and receive any dividends on the Restricted Stock. Any dividends declared on the Restricted Stock shall be paid to Employee through payroll. Such dividends shall not be subject to the vesting schedule or any other restrictions that exist regarding the original shares of Restricted Stock.
4.CUSTODY
The Restricted Stock may be credited to the Employee in book entry form and shall be held in custody by the Company or an agent for the Company until the applicable restrictions have expired. If any certificates are issued for shares of Restricted Stock during the Restricted Period, such certificates shall bear an appropriate legend as determined by the Company referring to the applicable terms, conditions and restrictions and the Employee shall deliver a signed, blank stock power to the Company relating thereto.
5.TAX WITHHOLDING
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The Company shall be entitled to withhold the amount of any tax attributable to the Stock Award by withholding a portion of shares to defray all or a portion of any applicable taxes, withholding the required amounts from other compensation payable to the Employee, or by such other method determined by the Committee (including, but not limited to, requiring a cash payment by Employee to the Company), in its discretion.
6.STOCK HOLDING PERIOD
If the Employee is an officer subject to Section 16 of the Exchange Act (as defined in the Plan), Restricted Stock acquired pursuant to this Stock Award shall be subject to a minimum holding period of at least one year following the applicable vesting date (as determined above in subsection 2(b)); provided, however, such minimum holding period shall terminate upon the Employee's termination of employment with the Company and its subsidiaries and shall not apply with respect to any shares of Restricted Stock that the Employee tenders for purposes of the payment of all or a portion of taxes arising in connection with the vesting of such award.
7.IMPACT ON OTHER BENEFITS
The value of the Restricted Stock awarded hereunder, either on the Award Date or at the time such shares become vested, shall not be includable as compensation or earnings for purposes of any other benefit plan or program offered by the Company or its subsidiaries.
8.REGISTRATION
(a)Any shares issued pursuant to the Stock Award hereunder shall be shares that are listed for trading on a national securities exchange and registered under the Securities Act of 1933, as amended. The Company does not have an obligation to sell or issue shares that are not so registered. In the event that shares are not effectively registered, but can be issued by virtue of an exemption under the Securities Act of 1933, as amended, the Company may issue shares to the Employee if the Employee represents that such shares are being acquired as an investment and not with a view to, or for sale in connection with, the distribution of any such shares. Certificates for shares issued under the circumstances of the preceding sentence shall bear an appropriate legend reciting such representation.
(b)In no event shall the Company be required to sell, issue or deliver shares pursuant to this Stock Award if, in the opinion of the Committee, the issuance thereof would constitute a violation by either the Employee or the Company of any provision of any law or regulation of any governmental authority or any securities exchange. As a condition of any sale or issuance of shares deliverable under the Stock Award, the Company may place legends on the shares, issue stop-transfer orders and require such agreements or undertakings from the Employee as the Company may deem necessary or advisable to assure compliance with any such law or regulation.
9.PLAN GOVERNS
Notwithstanding anything in this Stock Award, the terms of this Stock Award shall be subject to the provisions of the Plan, a copy of which is available electronically through the website
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of the broker servicing the Plan or may otherwise be obtained from a member of the Executive Compensation & Benefits staff. This Award is subject to all interpretations, amendments, rules and regulations established by the Compensation Committee from time to time pursuant to the Plan. In the event of an express conflict between any term, provision or condition of this Stock Award and those of the Plan, the terms, provisions or conditions of the Plan shall control. Any term, condition or provision on which the Award is silent shall be governed and administered in accordance with the terms, conditions or provisions of the Plan.
10.NO EMPLOYMENT RIGHTS
Nothing in this Stock Award shall confer upon the Employee the right to continue in the employ of the Company or any of its subsidiaries, or to interfere with or limit the right of the
Company or of such subsidiary to terminate the Employee’s employment at any time.
11.UNDERTAKING BY EMPLOYEE
The Employee hereby agrees to take whatever additional actions and execute whatever additional documents the Compensation Committee may, in its discretion, deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Employee pursuant to the express provisions of this Stock Award and the Plan.
12.BINDING EFFECT
This Award shall be binding upon, and inure to the benefit of, the successors and assigns of the Company and upon persons who acquire the right to receive shares covered by the Stock Award hereunder by will or through the laws of descent and distribution.
13.HEADINGS
Headings of the paragraphs contained in this Stock Award are inserted for convenience and reference and shall not be used in interpreting or construing the terms and provisions of the Award.
14.ENTIRE AWARD; MODIFICATION
This Award and the Plan constitutes the entire agreement between the parties with respect to the terms and supersede all prior or written or oral negotiations, commitments, representations and agreements with respect thereto. The terms and conditions set forth in this Stock Award may only be modified or amended in a writing, signed by both parties.
15.SEVERABILITY
In the event any one or more of the provisions of this Stock Award shall be held invalid, illegal or unenforceable in any respect in any jurisdiction, such provision or provisions shall be automatically deemed amended, but only to the extent necessary to render such provision or provisions valid, legal and enforceable in such jurisdiction, and the validity, legality and enforceability of the remaining provisions of this Stock Award shall not in any way be affected or impaired thereby.
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