Exhibit 10.3(i)
MARVEL ENTERPRISES, INC.
RESTRICTED STOCK AGREEMENT
THIS AGREEMENT, made as of the [__] day of [_________] (the "Grant
Date"), between Marvel Enterprises, Inc. (the "Company"), and
[________________________] ("Participant"), is entered into pursuant to the
Marvel Enterprises, Inc. 1998 Stock Incentive Plan (the "Plan"). Capitalized
terms used herein, but not defined herein, shall have the meanings ascribed to
them in the Plan.
WHEREAS, the Company has adopted the Plan in order to provide additional
incentive to certain officers, employees, consultants and directors of the
Company and its Subsidiaries; and
WHEREAS, the Committee responsible for administration of the Plan has
determined to grant restricted stock to Participant as provided herein.
NOW, THEREFORE, the parties hereto agree as follows:
1. Grant of Restricted Stock. Pursuant to and subject to the terms and
conditions set forth herein and in the Plan, the Committee hereby confirms the
grant to Participant of [_____] shares, subject to the restrictions set forth
herein (the "Restricted Stock"), of the Company's common stock, par value $0.01
per share. The Restricted Stock is an award of Shares granted under Section 7 of
the Plan and is subject to the risk of forfeiture and other restrictions
specified in this Agreement.
2. Grant Date. The Grant Date of the Restricted Stock is defined in the
first paragraph of this Agreement.
3. Incorporation of Plan by Reference. All terms, conditions and
restrictions of the Plan are incorporated herein and made part hereof as if
stated herein. If there is any conflict between the terms and conditions of the
Plan and this Agreement, the terms and conditions of the Plan as interpreted by
the Committee shall govern.
4. Vesting of Restricted Stock.
(a) Vesting Schedule. [One-half of the Restricted Stock granted
hereunder shall become vested and non-forfeitable on the second
anniversary of the Grant Date and an additional one-half of the
Restricted Stock granted hereunder shall become vested and
non-forfeitable on the third anniversary of the Grant Date][or insert
other vesting schedule determined by the Committee]; provided, that the
Restricted Stock shall become vested and non-forfeitable in full
immediately upon (i) a Third-Party Change of Control, as defined in
subsection (b) below, or (ii) the termination of Participant's
employment with or service to the Company because of Participant's
death.
(b) Definition of Third-Party Change of Control. For purposes of
this Agreement, a Third-Party Change in Control shall be deemed to have
occurred if (i) any "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")), other than an Excluded Person or Excluded
Group (as defined below) (hereinafter, a "Third Party"), is or becomes
the "beneficial owner" (as defined in Rule 13d-3 promulgated under the
Exchange Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the combined voting power of
the Company's then outstanding securities entitled to vote in the
election of directors of the Company, (ii) the Company is a party to any
merger, consolidation or similar transaction as a result of which the
stockholders of the Company immediately prior to such transaction
beneficially own securities of the surviving entity representing less
than fifty percent (50%) of the combined voting power of the surviving
entity's outstanding securities entitled to vote in the election of
directors of the surviving entity or (iii) all or substantially all of
the assets of the Company are acquired by a Third Party. "Excluded
Group" means a "group" (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act) that includes one or more
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Excluded Persons; provided that the voting power of the voting stock of
the Company "beneficially owned" (as such term is used in Rule 13d-3
promulgated under the Exchange Act) by such Excluded Persons (without
attribution to such Excluded Persons of the ownership by other members
of the "group") represents a majority of the voting power of the voting
stock "beneficially owned" (as such term is used in Rule 13d-3
promulgated under the Exchange Act) by such group. "Excluded Person"
means Xxxxx Xxxxxxxxxx and Xxx Xxxx or any of their affiliates, any
spouse or any lineal descendants of Messrs. Xxxxxxxxxx or Arad, and any
trust established solely for the benefit of, and any charitable trust or
foundation established by, Messrs. Xxxxxxxxxx or Arad or their spouses
or lineal descendants and each of their respective affiliates.
5 Effect of Termination of Employment or Service. Except as otherwise
provided in Section 4(a)(ii) hereof or in an employment agreement between
Participant and the Company, if Participant's employment with or service to the
Company is terminated for any reason, any portion of the Restricted Stock that
has not become vested and non-forfeitable prior to such termination shall be
immediately forfeited.
6. Restriction on Transfer of Restricted Stock. Until such time as the
Restricted Stock has become vested and non-forfeitable, Participant shall have
no right to sell, transfer, assign, pledge, or otherwise encumber or dispose of
the shares of Restricted Stock (except for forfeitures to the Company).
7. Dividends and Adjustments.
(a) Dividends. In the event of dividends or distributions on
Restricted Stock, the following terms and conditions shall apply except
as provided in Section 7(b) below:
(i) In the event of a cash dividend or distribution on
Restricted Stock, such dividend or distribution shall be paid in
cash to Participant and shall be non-forfeitable.
(ii) In the event of any non-cash dividend or distribution
in the form of property other than the Company's common stock,
par value $0.01 per share ("Common Stock") payable on Restricted
Stock (including shares of a subsidiary of the Company
distributed in a spin-off), the Company shall retain in its
custody the property so distributed in respect of Participant's
Restricted Stock, which property thereafter will become vested
and non-forfeitable if and to the same extent as the original
Restricted Stock with respect to which the property was
distributed becomes vested and non-forfeitable and, to the
greatest extent practicable, shall, along with any dividends or
distributions paid thereon, be subject to all other terms and
conditions as applied to the original Restricted Stock, including
with respect to the placement of any legend on certificate(s) or
documents representing such property; provided, however, that any
dividend or distributed rights that expire before the latest
Vesting Date will be unrestricted and exercisable by Participant
in accordance with their terms.
(iii) In the event of a dividend or distribution in the
form of Common Stock or a split-up of shares, the Common Stock
issued or delivered as such dividend or distribution or resulting
from such split-up will be deemed to be additional Restricted
Stock and will become vested and non-forfeitable if and to the
same extent as the Restricted Stock with respect to which the
dividend or distribution was payable becomes vested and
non-forfeitable, and shall be subject to all other terms and
conditions as applied to the original Restricted Stock.
(b) Adjustments. The Committee shall conclusively determine the
appropriate adjustments, if any, to the number and kind of shares of
Restricted Stock, the number of such shares to be vested and
non-forfeitable, and other terms and conditions of the Restricted Stock
or otherwise contained in this Agreement, in order to prevent dilution
or enlargement of Participant's rights hereunder and to reflect any
changes in the number of outstanding shares of Common Stock resulting
from any Change in Capitalization, taking into account any Restricted
Stock or other amounts paid or credited to Participant in connection
with such event under Section 7(a) hereof. In addition, the Committee
may vary the treatment of any dividend or distribution as specified
under Section 7(a), in its discretion. The Committee may determine how
to treat or settle any fractional share resulting under this Agreement.
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8. Other Terms of Restricted Stock.
(a) Voting and Other Stockholder Rights. Participant shall be
entitled to vote Restricted Stock on any matter submitted to a vote of
holders of Common Stock, and shall have all other rights of a
stockholder of the Company except as expressly limited by this Agreement
and the Plan.
(b) Consideration for Grant of Restricted Stock. Participant
shall be required to pay no cash consideration for the grant of the
Restricted Stock, but Participant's performance of services to the
Company prior to the vesting of the Restricted Stock shall be deemed to
be consideration for this grant of Restricted Stock. Participant's
services performed on the Grant Date are hereby determined to have a
value at least equal to the aggregate par value of the shares being
newly issued in connection with the grant of Restricted Stock.
(c) Xxxxxxx Xxxxxxx Policy Applicable. Participant acknowledges
that sales of shares resulting from Restricted Stock that has become
vested and non-forfeitable will be subject to the Company's Trading
Policy as defined in Section 4(c) hereof.
(d) Certificates Evidencing Restricted Stock. Restricted Stock
shall be evidenced by issuance of one or more certificates in the name
of Participant, bearing an appropriate legend referring to the terms,
conditions, and restrictions applicable hereunder, and shall remain in
the physical custody of the Secretary of the Company or his designee
until such time as such shares of Restricted Stock shall have become
vested and non-forfeitable and the restrictions hereunder shall have
therefore lapsed. In addition, Restricted Stock shall be subject to such
stop-transfer orders and other restrictive measures as the General
Counsel of the Company shall deem advisable under federal or state
securities laws, and the rules and regulations thereunder, and the rules
of the New York Stock Exchange, or to implement the terms, conditions
and restrictions hereunder, and the General Counsel may cause a legend
or legends to be placed on any such certificates to make appropriate
reference to the terms, conditions and restrictions hereunder.
(e) Stock Powers. In order to effect the provisions of Section 5
hereof, Participant agrees, upon reasonable request of the General
Counsel, to execute and deliver to the Company such stock powers or
other documents of transfer as may be specified by the General Counsel,
authorizing the transfer of the Restricted Stock to the Company.
(f) Compliance Matters. The Company shall have no obligation to
issue or deliver Restricted Stock to Participant until such time as
counsel to the Company shall have determined that such actions by the
Company are in compliance with all applicable laws and regulations of
governmental authorities and the requirements of any securities exchange
on which shares of Common Stock are traded.
9. No Right to Continued Employment. Nothing in this Agreement or the
Plan shall be interpreted or construed to confer upon Participant any right with
respect to continuance of employment by the Company or any subsidiary, nor shall
this Agreement or the Plan interfere in any way with the right of the Company to
terminate Participant's employment at any time.
10. Withholding of Taxes. The Company shall have the right to deduct
from any distribution of cash to Participant an amount equal to the federal,
state and local income taxes and other amounts as may be required by law to be
withheld (the "Withholding Taxes") with respect to the Restricted Stock and any
distribution relating thereto. In connection with any vesting of the Restricted
Stock, unless, prior to vesting, other arrangements have been made by
Participant satisfactory to the Committee providing for payment of Withholding
Taxes, the Company shall withhold from the Shares deliverable upon vesting a
number of Shares having an aggregate Fair Market Value equal to the Withholding
Taxes then due.
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11. Receipt of Plan. Participant hereby acknowledges receipt of a copy
of the Plan. Participant hereby acknowledges that all decisions, determinations
and interpretations of the Committee in respect of the Plan, this Agreement and
the Restricted Stock shall be final and conclusive.
12. Modification of Agreement. This Agreement may be modified, amended,
suspended or terminated, and any terms or conditions may be waived, but only by
a written instrument executed by the Company and, if such change is materially
adverse to or imposes any additional obligation on Participant, by Participant.
13. Severability. Should any provision of this Agreement be held by a
court of competent jurisdiction to be unenforceable or invalid for any reason,
the remaining provisions of this Agreement shall not be affected by such holding
and shall continue in full force in accordance with their terms.
14. Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of New
York without giving effect to the conflicts of laws principles thereof.
15. Successors in Interest. This Agreement shall inure to the benefit of
and be binding upon any successor corporation to the Company. This Agreement
shall inure to the benefit of Participant's legal representatives. All
conditions and other terms imposed upon Participant and all rights granted to
the Company under this Agreement shall be final, binding and conclusive upon
Participant's heirs, executors, administrators and successors.
16. Entire Agreement. This Agreement contains the entire understanding
between the parties hereto with respect to the subject matter hereof and
supersedes all other prior agreements and understandings, both written and oral,
between the parties hereto with respect to the subject matter hereof.
17. Resolution of Disputes. Any dispute or disagreement which may arise
under, or as a result of, or in any way relate to, the interpretation,
construction or application of this Agreement shall be determined by the
Committee. Any determination made hereunder shall be final, binding and
conclusive on Participant and the Company for all purposes.
COMPANY:
MARVEL ENTERPRISES, INC.
By:
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Name:
Title:
PARTICIPANT:
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