RESTRICTED STOCK UNIT AWARD AGREEMENT pursuant to LEXMARK INTERNATIONAL, INC.
Exhibit
10.4
pursuant
to
LEXMARK
INTERNATIONAL, INC.
2005
NONEMPLOYEE DIRECTOR STOCK PLAN
This
RESTRICTED STOCK UNIT AWARD AGREEMENT (the "Agreement") between Lexmark
International, Inc., a Delaware corporation (the "Company"), and the
person
specified on the signature page hereof (the "Grantee") is entered into as
of
the ____ day of _____, _____ (the "Grant Date") pursuant to the
Lexmark International, Inc. 2005 Nonemployee Director Stock Plan, as the
same
may be amended from time to time (the "Plan"). Capitalized terms used and
not
defined herein shall have the meanings assigned to such terms in the
Plan.
WHEREAS,
the Grantee is a member of the Board of Directors of the Company, who is
not
also an officer or employee of the Company or one of its Subsidiaries or
affiliated with any stockholder of the Company holding 5% or more of the
Company’s equity securities, and the Board has determined that it would be to
the advantage and in the interest of the Company to grant the restricted
stock
unit award provided for herein to the Grantee as an inducement to the Grantee
to
remain in the service of the Company and the Subsidiaries and as an incentive
to
the Grantee to devote his or her best efforts and dedication to the performance
of such services and to maximize shareholder value; and
WHEREAS,
the Grantee desires to accept from the Company the grant of the restricted
stock
units evidenced hereby on the terms and subject to the conditions
herein;
NOW,
THEREFORE, in consideration of the premises and subject to the terms and
conditions set forth herein and in the Plan, the parties hereto hereby covenant
and agree as follows:
1.
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Restricted
Stock Unit Award.
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(a)
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Restricted
Stock Unit Award.
The Company hereby grants to the Grantee, effective as of the date
hereof
and on the terms and conditions herein, the number of restricted
stock
units set forth on the signature page hereof, each representing
the
Grantee's right to receive one share of Common Stock at the time
or times
provided for in Section 3 hereof, subject to the terms and conditions
described herein (the "Restricted Stock Units" or "Units").
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(b)
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2005
Nonemployee Director Stock Plan.
This Agreement is subject in all respects to the terms of the Plan,
all of
which terms are made a part of and incorporated in this Agreement
by
reference. In the event of any conflict between the terms of this
Agreement and the terms of the Plan, the terms of the Plan shall
control.
The Grantee hereby acknowledges that copies of the Plan may be
obtained
from the Vice President of Human Resources and agrees to comply
with and
be bound by all of the terms and conditions thereof.
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(c)
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Establishment
of Account.
No shares of Common Stock will be issued on the date of grant of
the
Restricted Stock Units and the Company shall not be required to
set aside
a fund for the payment of any such Units. The Company will establish
a
separate account for the Grantee and will record in such account
the
number of Restricted Stock Units awarded to the Grantee and, to
the extent
applicable, the Dividend Equivalents provided for in Section 3(b)
hereof.
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2. |
Vesting
and Settlement of Restricted Stock Units.
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(a)
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Vesting
and Settlement.
The Restricted Stock Units will become vested in whole on the sixth
anniversary of the date of grant, _____, ____, or such other date
as
determined by the Board (the "Vesting Date"), subject to the Grantee's
continuous service as a member of the Board of Directors of the
Company
from the date hereof to the Vesting Date. After the Restricted
Stock Units
have become vested on the Vesting Date, they shall settle upon
the
termination of Grantee’s status as a member of the Board of Directors of
the Company, or such other date as determined by the Board (“the
Settlement Date”).
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(b)
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Acceleration.
The Board may, in its discretion, accelerate the vesting and/or
settlement
of all or any portion of the Restricted Stock Units or waive any
conditions to the vesting and/or settlement of such Restricted
Stock
Units.
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(c)
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Termination
of Status as a Board Member.
In the event of the Grantee's termination of service as a member
of the
Board of Directors of the Company prior to the Vesting Date, the
Grantee
shall immediately forfeit all rights with respect to any Restricted
Stock
Units (and Dividend Equivalents) which have not yet vested in accordance
with the provisions of Section 2(a) of this
Agreement.
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3.
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Payment
of Restricted Stock Unit Award.
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(a)
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Payment.
On, or as soon as reasonably practicable after, the Settlement
Date,
subject to Section 4 hereof, the Company shall direct its stock
transfer
agent to make (or to cause to be made) an appropriate book entry
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2
in
the Company's stock transfer books and records reflecting the transfer
to
the Grantee, and the Grantee's ownership, of one share of Common
Stock for
each Restricted Stock Unit that shall have become vested and settled
on
such Settlement Date. Upon the Grantee's request, subject to Section
4
hereof, the Company shall deliver to the Grantee a stock certificate
registered in the Grantee's name and representing such number of
shares of
Common Stock free and clear of all restrictions except any that
may be
imposed by law. No payment will be required to be made by the Grantee
upon
the delivery of such shares of Common Stock, except as otherwise
provided
in Section 4 of this Agreement.
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(b)
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Dividend
Equivalents.
Unless otherwise determined by the Board, the Company will credit
to the
account of the Grantee an amount equal to any dividends or dividend
equivalents and other distributions paid by the Company with respect
to
the number of shares of Common Stock corresponding to the number
of
Restricted Stock Units ("Dividend Equivalents"). Dividend Equivalents
in
respect of Restricted Stock Units that shall have become vested
on the
Vesting Date shall be payable to the Grantee on the Settlement
Date.
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(c)
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Restrictions
on Sale upon Public Offering. The Grantee hereby agrees that,
notwithstanding the vesting of the Restricted Stock Units pursuant
to
Section 2(a) of this Agreement or the transfer of the shares of
Common
Stock covered thereby to the Grantee pursuant to Section 3(a) hereof,
the
Grantee will not effect any public sale or distribution of any
of such
shares of Common Stock during the 20 day period prior to and the
180 days
following the effective date of any registration statement hereinafter
filed by the Company under the Securities Act of 1933, as amended,
with
respect to any underwritten public offering of any shares of the
Company's
capital stock (other than as part of such underwritten public
offering).
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4.
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Tax
Withholding.
The delivery of any directions to the Company's stock transfer
agent or
any certificates for shares of Common Stock pursuant to Section
3 shall
not be made unless and until the Grantee, or, if applicable, the
Grantee's
beneficiary or estate, has made appropriate arrangements for the
payment
to the Company of an amount sufficient to satisfy any applicable
U.S.
federal, state and local and non-U.S. tax withholding or other
tax
requirements, as determined by the Company. To satisfy the Grantee's
applicable withholding and other tax requirements, the Company
may, in its
sole discretion, (i) withhold a number of shares of Common Stock
having an
aggregate Fair Market Value on the Settlement Date equal to the
applicable
amount of such withholding and other tax requirements or (ii) require
the
Grantee to sell a number of shares of Common Stock having at least
a value
sufficient to meet the applicable amount of such withholding and
other tax
requirements to account for rounding and market fluctuations, subject
to
any rules adopted by the Board or required to ensure compliance
with
applicable
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law,
including, but not limited to, Section 16 of the Securities Exchange
Act
of 1934, as amended. Shares required to be sold to satisfy the
Grantee’s
applicable withholding and other tax requirements may be sold as
part of a
block trade with the Grantee receiving an average price. Any cash
payment
made pursuant to Section 3 shall be made net of any amounts required
to be
withheld or paid with respect thereto (and with respect to any
shares of
Common Stock delivered contemporaneously therewith) under any applicable
U.S. federal, state and local and non-U.S. tax withholding and
other tax
requirements.
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5.
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Transferability.
Unless otherwise provided in accordance with the provisions of
the Plan,
the Restricted Stock Units may not be sold, transferred, pledged,
assigned
or otherwise alienated or hypothecated by the Grantee, other than
by will
or the laws of descent and distribution. The term "Grantee" as
used in
this Agreement shall include any permitted transferee of the Restricted
Stock Units.
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6.
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Adjustment
in Capitalization.
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(a)
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The
aggregate number of shares of Common Stock covered by the Restricted
Stock
Units granted hereunder shall be proportionately adjusted to reflect,
as
deemed equitable and appropriate by the Board, an Adjustment
Event.
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(b)
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Any
shares of stock (whether Common Stock, shares of stock into which
shares
of Common Stock are converted or for which shares of Common Stock
are
exchanged or shares of stock distributed with respect to Common
Stock) or
cash or other property received or credited to the account of the
Grantee
with respect to the Restricted Stock Units as a result of any Adjustment
Event, any distribution of property or any merger, consolidation,
reorganization, liquidation, dissolution or other similar transaction
shall, except as otherwise provided by the Board, be subject to
the same
terms and conditions, including restrictions on transfer, as are
applicable to the Restricted Stock Units with respect to which
such
shares, cash or other property is received or so credited and stock
certificate(s), if any, representing or evidencing any shares of
stock or
other property so received shall be legended as
appropriate.
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7.
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Preemption
by Applicable Laws and Regulations.
Notwithstanding anything in the Plan or this Agreement to the contrary,
the issuance of shares of Common Stock hereunder shall be subject
to
compliance with all applicable U.S. federal, state and non-U.S.
securities
laws. Without limiting the foregoing, if any law, regulation or
requirement of any governmental authority having jurisdiction shall
require either the Company or the Grantee (or the Grantee's beneficiary
or
estate) to take any action in connection with the issuance of any
shares
of Common Stock hereunder, the issuance of such
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shares
shall be deferred until such action shall have been taken to the
satisfaction of the Company.
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8.
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Interpretation;
Construction.
All of the powers and authority conferred upon the Board pursuant
to any
term of the Plan or the Agreement shall be exercised by the Board,
in its
sole discretion. All determinations, interpretations or other actions
made
or taken by the Board pursuant to the provisions of the Plan or
the
Agreement shall be final, binding and conclusive for all purposes
and upon
all persons and, in the event of any judicial review thereof, shall
be
overturned only if arbitrary and capricious. The Board may consult
with
legal counsel, who may be counsel to the Company, and shall not
incur any
liability for any action taken in good faith in reliance upon the
advice
of counsel.
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9.
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Amendment.
The Board shall have the right, in its sole discretion, to alter
or amend
this Agreement, from time to time, as provided in the Plan in any
manner
for the purpose of promoting the objectives of the Plan, provided
that no
such amendment shall impair the Grantee's rights under this Agreement
without the Grantee's consent. Subject to the preceding sentence,
any
alteration or amendment of this Agreement by the Board shall, upon
adoption thereof by the Board, become and be binding and conclusive
on all
persons affected thereby without requirement for consent or other
action
with respect thereto by any such person. The Company shall give
written
notice to the Grantee of any such alteration or amendment of this
Agreement as promptly as practicable after the adoption thereof.
This
Agreement may also be amended by a writing signed by both the Company
and
the Grantee.
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10.
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No
Rights as a Stockholder.
Except as provided by the Plan, the Grantee shall have no rights
as a
stockholder with respect to the Restricted Stock Units prior to
the date
as of which the shares of Common Stock covered thereby are transferred
to
the Grantee in accordance with Section 3(a) hereof.
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11.
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Miscellaneous.
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(a)
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Notices.
All notices and other communications required or permitted to be
given
under this Agreement shall be in writing and shall be deemed to
have been
given if mailed by regular United States mail, first-class and
prepaid, or
by any recognized international equivalent of such delivery, to
the
Company or the Grantee, as the case may be, at the following addresses
or
to such other address as the Company or the Grantee, as the case
may be,
shall specify by notice to the others delivered in accordance with
this
Section 11(a):
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(i)
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if
to the Company, to it at:
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One
Lexmark Centre Drive
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000
Xxxx Xxx Xxxxxx Xxxx
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Xxxxxxxxx,
XX 00000
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Attention:
Secretary
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(ii)
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if
to the Grantee, to the Grantee at the address set forth on the
signature
page hereof.
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All
such
notices and communications shall be deemed to have been received on the date
of
delivery or on the third business day after the mailing thereof.
(b)
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Binding
Effect; Benefits.
This Agreement shall be binding upon and inure to the benefit of
the
parties to this Agreement and their respective successors and assigns.
Nothing in this Agreement, express or implied, is intended or shall
be
construed to give any person other than the parties to this Agreement
or
their respective successors or assigns any legal or equitable right,
remedy or claim under or in respect of any agreement or any provision
contained herein.
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(c)
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Waiver.
Any party hereto may by written notice to the other party (i)
extend the time for the performance of any of the obligations or
other
actions of the other party under this Agreement, (ii)
waive compliance with any of the conditions or covenants of the
other
party contained in this Agreement and (iii)
waive or modify performance of any of the obligations of the other
party
under this Agreement. Except as provided in the preceding sentence,
no
action taken pursuant to this Agreement, including, without limitation,
any investigation by or on behalf of any party, shall be deemed
to
constitute a waiver by the party taking such action of compliance
with any
representations, warranties, covenants or agreements contained
herein. The
waiver by any party hereto of a breach of any provision of this
Agreement
shall not operate or be construed as a waiver of any preceding
or
succeeding breach and no failure by a party to exercise any right
or
privilege hereunder shall be deemed a waiver of such party's rights
or
privileges hereunder or shall be deemed a waiver of such party's
rights to
exercise the same at any subsequent time or times
hereunder.
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(d)
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Assignability.
Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable by the
Company
or the Grantee without the prior written consent of the other
party.
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(e)
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Applicable
Law.
This Agreement shall be governed by and construed in accordance
with the
laws of the State of Delaware, regardless of the law that might
be applied
under principles of conflict of laws and excluding any conflict
or choice
of law rule or principle that may otherwise refer construction
or
interpretation of the Plan or this Agreement to the substantive
law of
another jurisdiction.
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(f)
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Jurisdiction.
The Grantee hereby irrevocably and unconditionally submits to the
jurisdiction and venue of the state courts of the Commonwealth
of Kentucky
and of the United States District Court of the Eastern District
of
Kentucky located in Fayette County, Kentucky, and any appellate
court from
any thereof, in any action or proceeding arising out of or relating
to
this Agreement, or for recognition or enforcement of any judgment,
and
each of the parties hereby irrevocably agree that all claims in
respect of
any such action or proceeding may be heard and determined in such
Kentucky
state or United States federal courts located in such jurisdiction.
Each
of the parties hereto agrees that a final judgment in any such
action or
proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law.
The
parties hereby irrevocably waive, to the fullest extent permitted
by
applicable law, any objection which they may now or hereafter have
to the
laying of venue of any such proceeding brought in such a court
and any
claim that any such proceeding brought in such a court has been
brought in
an inconvenient forum. Grantee further agrees that any action related
to,
or arising out of, this Agreement shall only be brought by Grantee
exclusively in the federal and state courts located in Fayette
County,
Kentucky. Nothing in this Agreement shall affect any right that
the
Company may otherwise have to bring any action or proceeding relating
to
this Agreement in the courts of any
jurisdiction.
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(g)
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Severability.
If any provision of this Agreement or the Plan shall be held invalid
or
unenforceable, such invalidity or unenforceability shall not affect
any
other provisions of this Agreement or the Plan, and the Agreement
and the
Plan shall be construed and enforced as if such provision had not
been
included.
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(h)
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Survival.
Any provision of this Agreement which contemplates performance
or
observance subsequent to any termination or expiration of this
Agreement
shall survive any termination or expiration of this Agreement and
continue
in full force and effect.
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(i)
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Internal
Revenue Code Section 409A.
The Company intends for this Agreement to comply with the provisions
of
Section 409A of the Code and the guidance issued thereunder.
Notwithstanding Section 9 hereof, the Company intends to amend
this
Agreement, and hereby reserves the right to do so without the Grantee’s
consent, in the future as required to
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conform
to the provisions of Section 409A of the Code with respect to amounts
subject to Section 409A of the
Code.
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(j)
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Section
and Other Headings, Etc.
The section and other headings contained in this Agreement are
for
reference purposes only and shall not affect the meaning or interpretation
of this Agreement. In this Agreement all references to "dollars"
or "$"
are to United States dollars.
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(k)
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Counterparts.
This Agreement may be executed in any number of counterparts, each
of
which shall be deemed to be an original and all of which together
shall
constitute one and the same
instrument.
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IN
WITNESS WHEREOF, the Company and the Grantee have executed this Agreement
as of
the date first above written.
LEXMARK
INTERNATIONAL, INC.
Name: Xxxx.
I
Xxxxxxxxxx
Title: Vice
President of Human Resources
GRANTEE:
By:
______________________________
(Sign
Here)
Name:
Address
of the Grantee:
Number
of
Restricted Stock Units
Granted
on: