JABIL CIRCUIT, INC. RESTRICTED STOCK AWARD AGREEMENT
Exhibit 10.5f
JABIL CIRCUIT, INC.
RESTRICTED STOCK AWARD AGREEMENT
RESTRICTED STOCK AWARD AGREEMENT
This RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) is made as of (the “Grant Date”)
between JABIL CIRCUIT, INC. a Delaware corporation (the “Company”) and (the
“Grantee”).
Background Information
A. The Board of Directors (the “Board”) and shareholders of the Company previously adopted the
Jabil Circuit, Inc. 2002 Stock Incentive Plan (the “Plan”).
B. Section 8 of the Plan provides that the Administrator shall have the discretion and right
to grant Stock Awards to any Employees or Consultants of the Company, subject to the terms and
conditions of the Plan and any additional terms provided by the Administrator. The Administrator
has made a Stock Award grant to the Grantee as of the Grant Date pursuant to the terms of the Plan
and this Agreement.
C. The Grantee desires to accept the Stock Award grant and agrees to be bound by the terms and
conditions of the Plan and this Agreement.
D. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined
meanings in this Agreement.
Agreement
1. Restricted Stock. Subject to the terms and conditions provided in this Agreement
and the Plan, the Company hereby grants to the Grantee
___ shares of Common Stock (the
“Restricted Stock”) as of the Grant Date. The extent to which the Grantee’s rights and interest in
the Restricted Stock becomes vested and non-forfeitable shall be determined in accordance with the
provisions of Sections 2 and 3 of this Agreement.
2. Vesting. Except as may be otherwise provided in Section 3 of this Agreement, the
vesting of the Grantee’s rights and interest in the Restricted Stock shall be determined in
accordance with this Section 2. [Describe time-based or performance-based vesting restrictions].
3. Change in Control. In the event of a Change in Control, any portion of the
Restricted Stock that is not yet vested on the date such Change in Control is determined to have
occurred:
(a) shall become fully vested on the first anniversary of the date of such Change in Control
(the “Change in Control Anniversary”) if the Grantee’s Continuous Status as an Employee or
Consultant does not terminate prior to the Change in Control Anniversary;
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(b) shall become fully vested on the Date of Termination if the Grantee’s Continuous Status as
an Employee or Consultant terminates prior to the Change in Control Anniversary as a result of
termination by the Company without Cause or resignation by the Grantee for Good Reason; or
(c) shall not become fully vested if the Grantee’s Continuous Status as an Employee or
Consultant terminates prior to the Change in Control Anniversary as a result of termination by the
Company for Cause or resignation by the Grantee without Good Reason.
For purposes of this Section 3, the following definitions shall apply:
(d) “Cause” means:
(i) The Grantee’s conviction of a crime involving fraud or dishonesty; or
(ii) The Grantee’s continued willful or reckless material misconduct in the performance of the
Grantee’s duties after receipt of written notice from the Company concerning such misconduct;
provided, however, that for purposes of Section 3(d)(ii), Cause shall not include any one or more
of the following: bad judgment, negligence or any act or omission believed by the Grantee in good
faith to have been in or not opposed to the interest of the Company (without intent of the Grantee
to gain, directly or indirectly, a profit to which the Grantee was not legally entitled).
(e) “Good Reason” means:
(i) The assignment to the Grantee of any duties inconsistent in any respect with the Grantee’s
position (including status, titles and reporting requirement), authority, duties or
responsibilities, or any other action by the Company that results in a diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and
inadvertent action that is not taken in bad faith and that is remedied by the Company promptly
after receipt of written notice thereof given by the Grantee within 30 days following the
assignment or other action by the Company;
(ii) Any reduction in compensation; or
(iii) Change in location of office of more than 35 miles without prior consent of the Grantee.
4. Restrictions on Transfer. Until such time as any share of Restricted Stock becomes
vested pursuant to Section 2 or Section 3 of this Agreement, the Grantee shall not have the right
to make or permit to occur any transfer, pledge or hypothecation of all or any portion of the
Restricted Stock, whether outright or as security, with or without consideration, voluntary or
involuntary. Any transfer, pledge or hypothecation not made in accordance with this Agreement
shall be deemed null and void.
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5. Forfeiture. The Grantee shall forfeit all of his rights and interest in the
Restricted Stock if his Continuous Status as an Employee or Consultant terminates for any reason
before the Restricted Stock becomes vested in accordance with Section 2 or Section 3 of this
Agreement.
6. Shares Held by Custodian. The Grantee hereby authorizes and directs the Company to
deliver any share certificate issued by the Company to evidence the award of Restricted Stock to
the Secretary of the Company or such other officer of the Company as may be designated by the
Company’s Chief Executive Officer (the “Share Custodian”) to be held by the Share Custodian until
the Restricted Stock becomes vested in accordance with Section 2 or Section 3 of this Agreement.
When all or any portion of the Restricted Stock becomes vested, the Share Custodian shall deliver
to the Grantee (or his beneficiary in the event of death) a certificate representing the vested
Restricted Stock (which then will be unrestricted). The Grantee hereby irrevocably appoints the
Share Custodian, and any successor thereto, as the true and lawful attorney-in-fact of the Grantee
with full power and authority to execute any stock transfer power or other instrument necessary to
transfer the Restricted Stock to the Company, or to transfer a portion of the Restricted Stock to
the Grantee on an unrestricted basis upon vesting, pursuant to this Agreement, in the name, place,
and stead of the Grantee. The term of such appointment shall commence on the Grant Date and shall
continue until all the Restricted Stock becomes vested or is forfeited. During the period that the
Share Custodian holds any of the shares of Restricted Stock subject to this Section 6, the Grantee
shall have the right to vote such shares of Restricted Stock. The Grantee will cease to have the
right to vote any of the shares of Restricted Stock that are forfeited if and when such shares are
forfeited. The number of shares of Restricted Stock set forth in Section 1 of this Agreement shall
be the maximum number of shares of Restricted Stock to which the voting rights described in this
Section 6 shall be applicable. The Grantee shall not receive any dividends with respect to the
Restricted Stock unless and until such time as the Restricted Stock becomes vested in accordance
with Section 2 or Section 3 of this Agreement. As soon as is administratively practicable
following each vesting date, the Grantee shall receive a cash payment equal to the cumulative
dividends (without interest) payable on the shares of Restricted Stock that become vested on such
vesting date for the period beginning on the Date of Grant and ending on the vesting date. The
number of shares of Restricted Stock set forth in Section 1 of this Agreement shall be the maximum
number of shares of Restricted Stock to which the dividend rights described in this Section 6 shall
be applicable. No dividends shall be paid to the Grantee with respect to any shares of Restricted
Stock that are forfeited. In the event the number of shares of Restricted Stock is increased or
reduced in accordance with Section 11 of the Plan, and in the event of any distribution of common
stock or other securities of the Company in respect of such shares of common stock, the Grantee
agrees that any certificate representing shares of such additional common stock or other securities
of the Company issued as a result of any of the foregoing shall be delivered to the Share Custodian
and shall be subject to all of the provisions of this Agreement as if initially received hereunder.
7. Tax Consequences.
(a) Upon the occurrence of a vesting event specified in Section 2 or Section 3 above, the
Grantee must satisfy the federal, state, local or foreign income and social insurance withholding
taxes imposed by reason of the vesting of the Restricted Stock. The Grantee shall make an election
with respect to the method of satisfaction of such tax withholding obligation in accordance with
procedures established by the Administrator. Unless the Grantee delivers to the
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Company or its designee within ten (10) days after the occurrence of the vesting event
specified in Section 2 or Section 3 above a certified check payable in the amount of all tax
withholding obligations imposed on the Grantee and the Company by reason of the vesting of the
Restricted Stock, the Grantee’s actual number of vested Shares of Restricted Stock shall be reduced
by the smallest number of whole Shares which, when multiplied by the Fair Market Value of the
Common Stock on the vesting date, is sufficient to satisfy the amount of such tax withholding
obligations.
(b) The Grantee understands that the Grantee may elect to be taxed at the Grant Date rather
than when the Restricted Stock becomes vested by filing with the Internal Revenue Service an
election under section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), within
thirty (30) days from the Grant Date. The Grantee acknowledges that it is the Grantee’s sole
responsibility and not the Company’s responsibility to timely file the Code section 83(b) election
with the Internal Revenue Service if the Grantee intends to make such an election. Grantee agrees
to provide written notification to the Company if the Grantee files a Code section 83(b) election.
8. No Effect on Employment or Rights under Plan. Nothing in the Plan or this
Agreement shall confer upon the Grantee the right to continue in the employment of the Company or
affect any right which the Company may have to terminate the employment of the Grantee regardless
of the effect of such termination of employment on the rights of the Grantee under the Plan or this
Agreement. If the Grantee’s employment is terminated for any reason whatsoever (and whether lawful
or otherwise), he will not be entitled to claim any compensation for or in respect of any
consequent diminution or extinction of his rights or benefits (actual or prospective) under this
Agreement or any Award or otherwise in connection with the Plan. The rights and obligations of the
Grantee under the terms of his employment with the Company or any Subsidiary will not be affected
by his participation in the Plan or this Agreement, and neither the Plan nor this Agreement form
part of any contract of employment between the Grantee and the Company or any Subsidiary. The
granting of Awards under the Plan is entirely at the discretion of the Administrator, and the
Grantee shall not in any circumstances have any right to be granted an Award.
9. Governing Laws. This Agreement shall be construed and enforced in accordance with
the laws of the State of Florida.
10. Successors. This Agreement shall inure to the benefit of, and be binding upon,
the Company and the Grantee and their heirs, legal representatives, successors and permitted
assigns.
11. Severability. In the event that any one or more of the provisions or portion
thereof contained in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, the same shall not invalidate or otherwise affect any other
provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or
unenforceable provision or portion thereof had never been contained herein.
12. Entire Agreement. Subject to the terms and conditions of the Plan, which are
incorporated herein by reference, this Agreement expresses the entire understanding and agreement
of the parties hereto with respect to such terms, restrictions and limitations.
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13. Headings. Section headings used herein are for convenience of reference only and
shall not be considered in construing this Agreement.
14. Additional Acknowledgements. By their signatures below (including electronic
signatures), the Grantee and the Company agree that the Restricted Stock is granted under and
governed by the terms and conditions of the Plan and this Agreement. Grantee has reviewed in their
entirety the prospectus that summarizes the terms of the Plan and this Agreement, has had an
opportunity to request a copy of the Plan in accordance with the procedure described in the
prospectus, has had an opportunity to obtain the advice of counsel prior to executing this
Agreement and fully understands all provisions of the Plan and this Agreement. Grantee hereby
agrees to accept as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions relating to the Plan and this Agreement.
IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the Grant
Date set forth above.
| GRANTEE: | JABIL CIRCUIT, INC. |
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| By: | |||||
| Signature | XXXXXXX X. MAIN | ||||
| Title: | PRESIDENT | ||||
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