Exhibit 10(j)
LONG TERM INCENTIVE Plan
RESTRICTED STOCK UNIT Agreement
THIS <award_date> RESTRICTED STOCK UNIT AGREEMENT (the "Agreement"), is entered into as of this <award_date> (the "Award Date") between PACCAR Inc, a Delaware corporation (the "Company"), and <first_name> <last_name> (the "Recipient").
WHEREAS, The Company has established the PACCAR Inc Long Term Incentive Plan (the "LTIP") in order to provide key employees of the Company and its subsidiaries with an opportunity to acquire shares of the Company's common stock, par value $1 per share (the "Common Shares"); and
WHEREAS, the committee of the Board of Directors charged with administering the LTIP (the "Committee") has determined that it would be in the best interests of the Company and its stockholders to grant the Restricted Stock Units described in this Agreement to the Recipient as an inducement to enter into or remain in the service of the Company and as an incentive for extraordinary efforts during such service;
NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed as follows:
1.Award. The Company hereby grants the Recipient <stock units_ awarded> stock units (the "Restricted Stock Units"), subject to the terms and conditions of the LTIP and this Agreement (the "Award"). The provisions of the LTIP are incorporated into this Agreement by this reference. The Recipient acknowledges having received a copy of the LTIP, read it, and understood its provisions. Each Restricted Stock Unit constitutes the right, subject to the satisfaction of the terms and conditions of the Plan and this Agreement, to the issuance to the Recipient of one (1) vested Common Share.
2.Rights as Stockholder. Prior to the issuance of Common Shares to the Recipient following the satisfaction of the terms and conditions of the Plan and this Agreement, the Recipient has none of the rights and privileges of a stockholder with respect to the Award and has no right to vote or to receive dividends (but may be eligible to receive dividend equivalents as described in Section 4 hereof). A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company.
(a)Conditions. The Award of Restricted Stock Units shall vest according to the schedule set forth below provided that the Recipient has been continuously employed in an LTIP-eligible position through the applicable vesting date:
One-fourth shall vest in the calendar year of the Award Date on the first day of the month following certification of the performance goal, and an additional one-fourth on each succeeding first of January, so as to be 100% vested on the third January 1 following the certification.
(b)Retirement; Death. If Recipient’s employment in an LTIP-eligible position terminates by reason of (i) retirement on or after age 62, (ii) retirement on or after age 55 with 15 years of service (with years of service determined under the terms of the Company’s