Exhibit 10.43
ePresence, Inc.
Corporate Officer Restricted Stock Agreement
Granted Under 1992 Stock Incentive Plan
This Restricted Stock Agreement (this "Agreement") is made this 21st day
of December, 2000 between ePresence, Inc., a Massachusetts corporation (the
"Company"), and Xxxxxxx X. Xxxxx (the "Participant").
WHEREAS, the issuance of 120,000 shares of restricted stock to the
Participant was approved at the November 16, 2000 ("Grant Date") meeting of the
Compensation Committee of the Company's Board of Directors.
NOW, THEREFORE, for valuable consideration, receipt of which is
acknowledged, the Company and the Participant (each, a "Party" and together, the
"Parties") each agree as follows:
1. Purchase of Shares.
The Company shall issue and sell to the Participant, and the Participant
shall purchase from the Company, subject to the terms and conditions set forth
in this Agreement and in the Company's 1992 Stock Incentive Plan, as amended
(the "Plan"), 120,000 shares (the "Shares") of common stock, $0.01 par value per
share, of the Company ("Common Stock"), at a purchase price of $0.01 per share.
The aggregate purchase price for the Shares shall be paid by the Participant by
check payable to the order of the Company or such other method as may be
acceptable to the Company. Upon receipt by the Company of payment for the
Shares, the Company shall issue to the Participant one or more certificates in
the name of the Participant for that number of Shares purchased by the
Participant. The Participant agrees that the Shares shall be held by an escrow
agent pursuant to the terms and conditions in Section 6 of this Agreement and
the Joint Escrow Instructions (the form of which is attached hereto as Appendix
A), subject to the Purchase Option set forth in Section 2 of this Agreement and
the restrictions on transfer set forth in Section 4 of this Agreement.
2. Purchase Option.
(a) In the event that the Participant ceases to be employed by the
Company for any reason or no reason, other than a change in control, with or
without cause, or the Participant announces his intention to terminate his
employment with the Company, the Company shall have the right and option (the
"Purchase Option") to purchase from the Participant, for a sum of $0.01 per
share (the "Option Price"), any or all of the Unvested Shares (as defined
below).
"Unvested Shares" means the total number of Shares multiplied
by the Applicable Percentage at the time the Purchase Option becomes exercisable
by the Company. The "Applicable Percentage" shall be (i) 100% during the period
beginning on the Grant Date and ending on April 14, 2001, (ii) 75% during the
period beginning on April 15, 2001 and ending on October 14, 2001, (iii) 50%
during the period beginning on October 15, 2001 and ending on April 14, 2002,
(iv) 25% during the period beginning on April 15, 2002 and ending on October 14,
2002, and (v) zero percent after October 14, 2002.
(b) In the event that the Participant's employment with the
Company is terminated by reason of death or disability on or before the third
anniversary of the Grant Date, the number of the Shares for which the Purchase
Option becomes exercisable shall be fifty percent (50%) of the number of
Unvested Shares for which the Purchase Option would otherwise become
exercisable. For this purpose, "disability" shall mean the Participant's absence
from the full-time performance of the Participant's duties with the Company for
180 consecutive calendar days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and reasonably acceptable to the
Participant or the Participant's legal representative.
(c) For purposes of this Agreement, employment with the Company
shall include employment with a parent or subsidiary of the Company.
3. Exercise of Purchase Option and Closing.
(a) The Company may exercise the Purchase Option by delivering or mailing
to the Participant (or the Participant's estate), within 60 days after the
termination of the employment of the Participant with the Company, a written
notice of exercise of the Purchase Option. Such notice shall specify the number
of Shares to be purchased. If and to the extent the Purchase Option is not so
exercised by the giving of such a notice within such 60-day period, the Purchase
Option shall automatically expire and terminate effective upon the expiration of
such 60-day period.
(b) Within 10 days after delivery to the Participant of the Company's
notice of the exercise of the Purchase Option pursuant to subsection (a) above,
the Participant (or the Participant's estate) shall, pursuant to the provisions
of the Joint Escrow Instructions referred to in Section 6, tender to the Company
at its principal offices the certificate or certificates representing the Shares
which the Company has elected to purchase in accordance with the terms of this
Agreement, duly endorsed in blank or with duly endorsed stock powers attached
thereto, all in form suitable for the transfer of such Shares to the Company.
Promptly following its receipt of such certificate or certificates, the Company
shall pay to the Participant the aggregate Option Price for such Shares
(provided that any delay in making such payment shall not invalidate the
Company's exercise of the Purchase Option with respect to such Shares).
(c) After the time at which any Shares are required to be delivered to
the Company for transfer to the Company pursuant to subsection (b) above, the
Company shall not pay any dividend to the Participant on account of such Shares
or permit the Participant to exercise any of the privileges or rights of a
stockholder with respect to such Shares, but shall, insofar as permitted by law,
treat the Company as the owner of such Shares.
(d) The Option Price may be payable, at the option of the Company, in
cancellation of all or a portion of any outstanding indebtedness of the
Participant to the Company or in cash or both.
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(e) The Company shall not purchase any fraction of a Share upon exercise
of the Purchase Option, and any fraction of a Share resulting from a computation
made pursuant to Section 2 of this Agreement shall be rounded to the nearest
whole Share (with any one-half Share being rounded upward).
(f) The Company may assign its Purchase Option to one or more persons or
entities.
4. Restrictions on Transfer.
The Participant shall not sell, assign, transfer, pledge, hypothecate or
otherwise dispose of, by operation of law or otherwise (collectively "transfer")
any Shares, or any interest therein, that are subject to the Purchase Option,
except that the Participant may transfer such Shares to or for the benefit of
any spouse, child or grandchild, or to a trust for their benefit, provided that
such Shares shall remain subject to this Agreement (including without limitation
the restrictions on transfer set forth in this Section 4 and the Purchase
Option), and such permitted transferee shall, as a condition to such transfer,
deliver to the Company a written instrument confirming that such transferee
shall be bound by all of the terms and conditions of this Agreement.
5. Effect of Prohibited Transfer.
The Company shall not be required (a) to transfer on its books any of the
Shares which shall have been sold or transferred in violation of any of the
provisions set forth in this Agreement, or (b) to treat as owner of such Shares
or to pay dividends to any transferee to whom any such Shares shall have been so
sold or transferred.
6. Escrow.
The Participant shall, upon the execution of this Agreement, execute Joint
Escrow Instructions in the form attached to this Agreement as Appendix A. The
Joint Escrow Instructions shall be delivered to the escrow agent thereunder.
The Participant shall deliver to such escrow agent a stock assignment duly
endorsed in blank and hereby instructs the Company to deliver to such escrow
agent, on behalf of the Participant, the certificate(s) evidencing the Shares
issued hereunder. Such materials shall be held by such escrow agent pursuant to
the terms of such Joint Escrow Instructions.
7. Restrictive Legend.
All certificates representing Shares shall have affixed thereto a legend in
substantially the following form, in addition to any other legends that may be
required under federal or state securities laws:
"The shares of stock represented by this certificate are subject to
restrictions on transfer and an option to purchase set forth in a
certain Restricted Stock Agreement between the corporation and the
registered owner of these shares (or his predecessor in interest), and
such Agreement is available for inspection without charge at the
office of the Secretary of the corporation."
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8. Provisions of the Plan.
This Agreement is subject to the provisions of the Plan, a copy of which
the Participant acknowledges he has been furnished with.
9. Withholding Taxes; Section 83(b) Election.
(a) The Participant acknowledges and agrees that the Company has the
right to deduct from payments of any kind otherwise due to the Participant any
federal, state or local taxes of any kind required by law to be withheld with
respect to the purchase of the Shares by the Participant or the lapse of the
Purchase Option.
(b) The Participant acknowledges that the Participant has been informed
of the availability of making an election in accordance with Section 83(b) of
the Internal Revenue Code of 1986, as amended (attached hereto as Appendix B is
the 83(b) Election Form); that such election must be filed with the Internal
Revenue Service within 30 days of the date of this Agreement; and that the
Participant is solely responsible for making such election
(c) The Company agrees to make a loan or loans to the Participant equal
to the amount of taxes owed by the Participant as a result of the Section 83(b)
election referred to above or, in the event no such election is made, as a
result of the vesting of the Shares hereunder, in each case in accordance with
the terms of the Company's LTI Loan Provision Program, as such program may be in
effect from time to time.
10. Severability.
The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this
Agreement, and each other provision of this Agreement shall be severable and
enforceable to the extent permitted by law.
11. Waiver.
Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the
Compensation Committee of the Company's Board of Directors.
12. Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the
Company and the Participant and their respective heirs, executors,
administrators, legal representatives, successors and assigns, subject to the
restrictions on transfer set forth in Section 4 of this Agreement.
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13. Notice.
All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or
communication shall be sent either (i) by registered or certified mail, return
receipt requested, postage prepaid, or (ii) prepaid via a reputable nationwide
overnight courier service, in each case addressed to the Company at: Corporate
Counsel, ePresence, Inc., 000 Xxxxxxxx Xxxx, X.X. Xxx 0000, Xxxxxxxx,
Xxxxxxxxxxxxx 00000-0000, and to the Participant at: X.X. Xxx 000, Xxxxxxx, XX
00000-0000 (or to such other address as either the Company or the Participant
may have furnished to the other in writing in accordance herewith). Any such
notice, instruction or communication shall be deemed to have been delivered five
business days after it is sent by registered or certified mail, return receipt
requested, postage prepaid, or one business day after it is sent via a reputable
nationwide overnight courier service. Either Party may give any notice,
instruction or other communication hereunder using any other means, but no such
notice, instruction or other communication shall be deemed to have been duly
delivered unless and until it actually is received by the Party for whom it is
intended.
14. Pronouns.
Whenever the context may require, any pronouns used in this Agreement shall
include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns and pronouns shall include the plural, and vice versa.
15. Entire Agreement.
This Agreement and the Plan constitute the entire agreement between the
Parties, and supersede all prior agreements and understandings, relating to the
subject matter of this Agreement.
16. Amendment.
This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.
17. Governing Law.
This Agreement shall be construed, interpreted and enforced in accordance
with the internal laws of the Commonwealth of Massachusetts without regard to
any applicable conflicts of laws.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day
and year first above written.
EPRESENCE, INC.
By: /s/ Xxxxxxx X. Xxxxxxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: Senior Vice President & CFO
PARTICIPANT
/s/ Xxxxxxx X. Xxxxx
------------------------------------
Xxxxxxx X. Xxxxx
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Appendix A
ePresence, Inc.
Joint Escrow Instructions
December 21, 2000
Xxxxx X. Xxxxxx
Assistant Clerk
ePresence, Inc.
000 Xxxxxxxx Xxxx
X.X. Xxx 0000
Xxxxxxxx, Xxxxxxxxxxxxx 00000-0000
Dear Sir:
As Escrow Agent for ePresence, Inc., a Massachusetts corporation (the
"Company"), and the undersigned person ("Holder"), you are hereby authorized and
directed to hold the documents delivered to you pursuant to the terms of that
certain Restricted Stock Agreement (the "Agreement") of even date herewith, to
which a copy of these Joint Escrow Instructions is attached, in accordance with
the following instructions:
1. Appointment. Holder irrevocably authorizes the Company to deposit
with you any certificates evidencing Shares (as defined in the Agreement) to be
held by you hereunder and any additions and substitutions to said Shares.
Holder does hereby irrevocably constitute and appoint you as his attorney-in-
fact and agent for the term of this escrow to execute with respect to such
Shares all documents necessary or appropriate to make such Shares negotiable and
to complete any transaction herein contemplated. Subject to the provisions of
this paragraph 1 and the terms of the Agreement, Holder shall exercise all
rights and privileges of a stockholder of the Company while the Shares are held
by you.
2. Closing of Purchase.
(a) Upon any purchase by the Company of the Shares pursuant to the
Agreement, the Company shall give to Holder and you a written notice specifying
the purchase price for the Shares, as determined pursuant to the Agreement, and
the time for a closing hereunder (the "Closing") at the principal office of the
Company. Holder and the Company hereby irrevocably authorize and direct you to
close the transaction contemplated by such notice in accordance with the terms
of said notice.
(b) At the Closing, you are directed (a) to date the stock assignment
form or forms necessary for the transfer of the Shares, (b) to fill in on such
form or forms the number of Shares being transferred, and (c) to deliver same,
together with the certificate or certificates evidencing the Shares to be
transferred, to the Company against the simultaneous delivery to you of the
purchase price for the Shares being purchased pursuant to the Agreement.
3. Withdrawal. The Holder shall have the right to withdraw from this
escrow any Shares as to which the Purchase Option (as defined in the Agreement)
has terminated or expired.
4. Duties of Escrow Agent.
(a) Your duties hereunder may be altered, amended, modified or revoked
only by a writing signed by all of the parties hereto.
(b) You shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by you to be
genuine and to have been signed or presented by the proper party or parties. You
shall not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact of Holder while acting in good faith and in
the exercise of your own good judgment, and any act done or omitted by you
pursuant to the advice of your own attorneys shall be conclusive evidence of
such good faith.
(c) You are hereby expressly authorized to disregard any and all warnings
given by any of the parties hereto or by any other person or Company, excepting
only orders or process of courts of law, and are hereby expressly authorized to
comply with and obey orders, judgments or decrees of any court. In case you
obey or comply with any such order, judgment or decree of any court, you shall
not be liable to any of the parties hereto or to any other person, firm or
Company by reason of such compliance, notwithstanding any such order, judgment
or decree being subsequently reversed, modified, annulled, set aside, vacated or
found to have been entered without jurisdiction.
(d) You shall not be liable in any respect on account of the identity,
authority or rights of the parties executing or delivering or purporting to
execute or deliver the Agreement or any documents or papers deposited or called
for hereunder.
(e) You shall be entitled to employ such legal counsel and other experts
as you may deem necessary to properly advise you in connection with your
obligations hereunder and may rely upon the advice of such counsel.
(f) Your rights and responsibilities as Escrow Agent hereunder shall
terminate if (i) you cease to be Assistant Clerk of the Company or (ii) you
resign by written notice to each party. In the event of a termination under
clause (i), your successor as Assistant Clerk shall become Escrow Agent
hereunder; in the event of a termination under clause (ii), the Company shall
appoint a successor Escrow Agent hereunder.
(g) If you reasonably require other or further instruments in connection
with these Joint Escrow Instructions or obligations in respect hereto, the
necessary parties hereto shall join in furnishing such instruments.
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(h) It is understood and agreed that should any dispute arise with
respect to the delivery and/or ownership or right of possession of the
securities held by you hereunder, you are authorized and directed to retain in
your possession without liability to anyone all or any part of said securities
until such dispute shall have been settled either by mutual written agreement of
the parties concerned or by a final order, decree or judgment of a court of
competent jurisdiction after the time for appeal has expired and no appeal has
been perfected, but you shall be under no duty whatsoever to institute or defend
any such proceedings.
(i) These Joint Escrow Instructions set forth your sole duties with
respect to any and all matters pertinent hereto and no implied duties or
obligations shall be read into these Joint Escrow Instructions against you.
(j) The Company shall indemnify you and hold you harmless against any and
all damages, losses, liabilities, costs, and expenses, including attorneys' fees
and disbursements, for anything done or omitted to be done by you as Escrow
Agent in connection with this Agreement or the performance of your duties
hereunder, except such as shall result from your gross negligence or willful
misconduct.
5. Notice. All notices, instructions and other communications given
hereunder or in connection herewith shall be in writing. Any such notice,
instruction or communication shall be sent to each of the other parties
thereunto entitled either (i) by registered or certified mail, return receipt
requested, postage prepaid, or (ii) prepaid via a reputable nationwide overnight
courier service, in each case addressed to the Company at: Senior Vice
President and Chief Financial Officer, ePresence, 000 Xxxxxxxx Xxxx, X.X. Xxx
0000, Xxxxxxxx, Xxxxxxxxxxxxx 00000-0000, to the Participant at: X.X. Xxx 000,
Xxxxxxx, XX 00000-0000 and to you at: Assistant Clerk, ePresence, Inc., 000
Xxxxxxxx Xxxx, X.X. Xxx 0000, Xxxxxxxx, Xxxxxxxxxxxxx 00000-0000 (or to such
other address as a party may have furnished to the other parties in writing in
accordance herewith). Any such notice, instruction or communication shall be
deemed to have been delivered five business days after it is sent by registered
or certified mail, return receipt requested, postage prepaid, or one business
day after it is sent via a reputable nationwide overnight courier service. Any
party may give any notice, instruction or other communication hereunder using
any other means, but no such notice, instruction or other communication shall be
deemed to have been duly delivered unless and until it actually is received by
the party for whom it is intended.
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6. Miscellaneous.
(a) By signing these Joint Escrow Instructions, you become a party hereto
only for the purpose of said Joint Escrow Instructions, and you do not become a
party to the Agreement.
(b) This instrument shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.
Very truly yours,
EPRESENCE, INC.
By: /s/ Xxxxxxx X. Xxxxxxxxx
--------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: Senior Vice President & CFO
HOLDER
/s/ Xxxxxxx X. Xxxxx
------------------------------------
Xxxxxxx X. Xxxxx
ESCROW AGENT
/s/ Xxxxx X. Xxxxxx
---------------------------------
Xxxxx X. Xxxxxx
Assistant Clerk
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Appendix B
Election to Include Value of Restricted Property in Gross Income inYear of
Transfer Pursuant to Section 83(b) of the Internal Revenue Code
The undersigned hereby makes an election pursuant to Section 83(b) of the
Internal Revenue Code of 1986, as amended, with respect to the property
described below and supplies the following information in accordance with Treas.
Reg. (S) 1.83-2:
The name, address, and taxpayer identification number of the undersigned are:
----------------------------------
----------------------------------
----------------------------------
Taxpayer identification number: ____________________
A description of the property with respect to which this election is being made
is as follows:
______ shares of common stock, $_______ par value per share, of ePresence,
Inc., a Massachusetts corporation (the "Company")
The date on which the property was transferred and the taxable year for which
this election is being made are as follows:
Date of transfer: _________, 2000
Taxable year: calendar year 2000
The nature of the restrictions to which the property is subject is as follows:
The property is subject to vesting provisions and may be forfeited under the
terms of a stock restriction agreement executed between the undersigned and
the Company.
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The fair market value of the property at the time of the transfer (determined
without regard to any lapse restriction, as defined in
Treas. Reg. (S) 1.83-3(i)) is:
$_____________, equal to a fair market value of $__________ per share
The amount paid for the property by the undersigned is:
$_____________, equal to a purchase price of $__________ per share
In accordance with Treas. Reg. (S) 1.83-2(d) & (e)(7), a copy of this statement
has been furnished to the Company.
Dated:_____________________ _____________________________________
Name:________________________
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