EXHIBIT 10.34
STOCK OPTION AGREEMENT
This Stock Option Agreement (this "Agreement") dated February 26, 1999 is
made by and between World Color Press, Inc., a Delaware corporation ("WCP"),
and Xxxxxx X. Xxxxxx, an individual with a residence at 000 Xxxxxxxxx Xxxxx
Xxxx, Xxxxxxxxx, XX 00000 (the "Optionholder"). WCP and the Optionholder are
sometimes herein referred to collectively as the "Parties."
RECITALS
A. The Optionholder is a senior management employee of WCP.
B. WCP has established the 1995 Senior Management Stock Option Plan of
World Color Press, Inc. (the "Option Plan"), and, pursuant to the Option Plan,
WCP wishes to afford the Optionholder the opportunity to purchase shares of its
common stock, par value $.01 per share (the "Common Stock"). The term
"Options" as used in this Agreement shall include all Options granted to the
Optionholder pursuant to this Agreement. Upon exercise of Options granted
hereunder in accordance with the terms hereof and issuance of Common Stock upon
such exercise the Optionholder will become the holder of "Option Shares."
C. The Compensation Committee (the "Committee") of the Board of
Directors of WCP (the "Board") has determined that it would be to the advantage
and best interest of WCP and its stockholders to grant the Options provided for
herein to the Optionholder as an inducement to continue to perform services for
the Company (as hereinafter defined) and as an incentive for increased efforts
during such service, and has advised WCP thereof and instructed the undersigned
officer to issue said Options. For the purposes of this Agreement, the
"Company" shall mean WCP, together with its subsidiaries.
D. This Agreement is one of several agreements ("Other Stock Option
Agreements") which have been, or which in the future will be, entered into
between WCP and other holders of Options granted pursuant to the Option Plan
(collectively, the "Other Optionholders").
AGREEMENTS
1. GRANT OF OPTIONS. In consideration of the Optionholder's agreement
to provide services to the Company and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
WCP irrevocably grants to the Optionholder on the date hereof an aggregate of
125,000 Options, each to purchase initially one share of Common Stock (shares
issuable upon exercise of the Options are collectively referred to herein as
the "Option Shares"), upon the terms and conditions set forth in this
Agreement. This Agreement and the grant of the Options herein are subject to
all of the terms and provisions of the Option Plan attached hereto as Exhibit A
(which terms and provisions are incorporated herein by reference and are
expressly made part of this Agreement). In the event of any conflict between
the provisions of this Agreement and the Option Plan, the terms of the Option
Plan shall govern. All capitalized terms used herein without definition and
defined in the Option Plan have the meanings ascribed to such terms in the
Option Plan. The Options granted hereby are designated non-qualified stock
options and are nontransferable except as otherwise expressly set forth in the
Option Plan.
2. EXERCISE PRICE. The purchase price of the Option Shares upon
exercise of any of the Options (the "Exercise Price" or "Option Price Per
Share") shall initially be $24.33 per share, without commission or other
charge.
3. EXERCISABILITY. (a) The Options shall become exercisable as follows:
DATE OPTIONS BECOME EXERCISABLE EXERCISABLE PERCENTAGE
OF OPTIONS
From February 3, 1999 ("Vesting 0%
Date") until the first anniversary of
the Vesting Date
On and after the first anniversary of 20%
the Vesting date until the second
anniversary of the Vesting date
On and after the second anniversary 40%
of the Vesting date until the third
anniversary of the Vesting date
On and after the third anniversary of 60%
the Vesting date until the fourth
anniversary of the Vesting date
On and after the fourth anniversary 80%
of the Vesting date until the fifth
anniversary of the Vesting date
On and after the fifth anniversary of 100%
the Vesting date
(b) Notwithstanding the foregoing, all Options that are not exercisable
at the time of the termination of employment of the Optionholder for any reason
other than by reason of the Optionholder's death, Permanent Disability or
Permitted Retirement (each as hereinafter defined) shall be automatically and
immediately cancelled without any payment or other action by the Company. In
the event of and upon the termination of the Optionholder's employment because
of the Optionholder's death, Permanent Disability or Permitted Retirement, all
of the Optionholder's Options granted hereunder shall immediately become
exercisable.
(c) For purposes of this Agreement the following definitions shall apply:
"Cause" shall mean (i) the Optionholder's failure to render services to the
Company, which failure amounts to a material and flagrant neglect of such
duties, (ii) the Optionholder's willful engagement in conduct that is, or that
he or she intends to be, materially injurious to the Company, (iii) the
Optionholder's commission of an act of fraud, conversion, misappropriation
(including, but not limited to, the unauthorized use or disclosure of
confidential or proprietary information of the Company), embezzlement or
felony, (iv) a conviction of or guilty plea or his or her confession to any
fraud, conversion, misappropriation, embezzlement or felony or (v) the
Optionholder's repeated taking of any action prohibited by the Board, PROVIDED
that he or she has received at least one written notice of having taken an
action so prohibited; "Good Reason" shall mean, in each case without the
Optionholder's consent, (i) a material adverse change, when viewed in the
aggregate, in the Optionholder's duties, responsibilities, base compensation,
bonus eligibility and/or other material matters directly related to his or her
employment with the Company or (ii) the Optionholder's relocation by the
Company to a location more than 100 miles from the Optionholder's immediately
prior location.
(d) For purposes of this Agreement, the Optionholder shall be deemed to
have a "Permanent Disability" if he or she is unable to engage in the
activities required by employment by reason of any medically determined
physical or mental impairment which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not less than
12 months, as reasonably determined by the Board in good faith and in its
discretion.
4. MANNER OF EXERCISE
(a) PARTIAL EXERCISE. An exercisable Option may be exercised at any time
prior to the time when the Option becomes unexercisable under Section 10;
PROVIDED that each exercise shall be for not less than 50 Option Shares and
shall be for whole Option Shares only.
(b) MANNER OF EXERCISE. An exercisable Option shall be deemed exercised
upon delivery of all of the following to the Secretary of the Company or his or
her office:
(i) A written notice complying with the applicable rules established
by the Committee stating that the Option is exercised. The Optionholder
shall sign the notice or other person then entitled and authorized to
exercise the Option;
(ii) Such representations and documents as the Committee, in its
discretion, deems necessary, appropriate or advisable to effect compliance
with all applicable provisions of the Securities Act of 1933, as amended
(the "Act"), and any other federal or state securities laws, rules or
regulations. The Committee may, in its discretion, also take whatever
additional actions it deems necessary, appropriate or advisable to effect
such compliance, including, without limitation, placing legends on share
certificates and issuing stop-transfer notices to transfer agents and
registrars;
(iii) In the event that the Option shall be exercised by any
person or persons other than the Optionholder, appropriate proof of the
right of such person or persons to exercise the Option; and
(iv) Full payment (by certified or bank check or by wire transfer of
immediately available funds) to the Secretary of the Company for the
Option Shares with respect to which Options are exercised and any
applicable withholding taxes. In its discretion, however, the Committee
may (A) allow a delay in payment up to thirty (30) days from the date the
Option is exercised; (B) allow payment, in whole or in part, through the
delivery of shares of Common Stock owned by the Optionholder (including,
subject to Section 4(c), Option Shares issuable upon such exercise), duly
endorsed for transfer to WCP, having an Aggregate Market Value (as
hereinafter defined) on the date of delivery equal to the aggregate
Exercise Price of the Options; (C) allow payment, in whole or in part,
through the delivery of property of any kind which constitutes good and
valuable consideration; (D) allow payment, in whole or in part, through
the delivery of a full recourse promissory note bearing interest (at no
less than such rate as shall then preclude the imputation of interest
under the Code) and payable upon such terms as may be prescribed by the
Committee; or (E) allow payment through any combination of the
consideration provided in the foregoing subparagraphs (B), (C) and (D).
In the case of a promissory note, the Committee may also prescribe the
form of such note and the security to be given for such note. No Option
may be exercised, however, by delivery of a promissory note or by a loan
from the Company when or where such loan or other extension of credit is
prohibited by law.
(c) CERTAIN TIMING REQUIREMENTS. At the discretion of the Committee,
shares of Common Stock issuable to the Optionholder upon exercise of the Option
may be used to satisfy the Option Exercise Price or the tax withholding
consequences of such exercise, but in the case of persons subject to Section 16
of the Securities Exchange Act of 1934, as amended (the "Exchange Act") shares
of Common Stock maybe so used only (i) during the period beginning on the third
business day following the date of release of the quarterly or annual summary
statement of sales and earnings of the Company and ending on the twelfth
business day following such date or (ii) pursuant to an irrevocable written
election by the Optionholder to use shares of Common Stock issuable to the
Optionholder upon exercise of the Option to pay all or part of the Option
Exercise Price or the withholding taxes made at least six months prior to the
payment of such Option Exercise Price or withholding taxes.
(d) RIGHTS AS STOCKHOLDERS. The holders of Options shall not be, nor
have any of the rights or privileges of, stockholders of WCP in respect of any
shares purchasable upon the exercise of any Option unless and until
certificates representing such shares have been issued by the Company to such
holders.
(e) CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES. WCP may postpone the
time of delivery of the certificates for Option Shares for such additional time
as WCP shall deem necessary or desirable to enable it to comply with the
listing requirements of any securities exchange with which the Common Stock may
be listed or the requirements of the Act or the Exchange Act, or any rules and
regulations of the Securities and Exchange Commission promulgated thereunder,
or the requirements of applicable state laws relating to the authorization,
issuance or sale of securities.
5. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE OPTIONHOLDER
(a) The Optionholder hereby represents and warrants that he or she is
acquiring the Options and any Option Shares issued upon exercise thereof for
investment for his or her own account and not with a view to, or for resale in
connection with, the distribution or other disposition thereof. The
Optionholder acknowledges and affirms Section 7.1 of the Option Plan. The
Optionholder further agrees and acknowledges that he or she will not, directly
or indirectly, offer, transfer, sell, assign, pledge, hypothecate or otherwise
dispose of (any such act being referred to herein as a "transfer") any Option
Shares unless such transfer complies with Section 6 of this Agreement and such
transfer is pursuant to (i) an effective registration statement under the Act
and the rules and regulations thereunder and in compliance with any applicable
state securities or "blue sky" laws, or (ii) (A) an opinion of counsel to the
Optionholder (which counsel shall be reasonably acceptable to WCP) furnished to
WCP and satisfactory in form and substance to WCP that no such registration is
required because of the availability of an exemption from registration under
the Act and (B) if the Optionholder is a citizen or resident of any country
other than the United States, or the Optionholder desires to effect any
Transfer in any such country, counsel for the Optionholder (which counsel shall
be reasonably satisfactory to WCP) shall have furnished WCP with an opinion or
other advice satisfactory in form and substance to WCP to the effect that such
Transfer will comply with the securities laws of such jurisdiction.
(b) Notwithstanding the foregoing, WCP acknowledges and agrees that any
of the following transfers of Option Shares are deemed to be in compliance with
the Act and this Agreement and no opinion of counsel is required in connection
therewith:
(i) A transfer of Option Shares made pursuant to Sections 7 or 8 of
this Agreement;
(ii) A transfer of Option Shares upon the death of the Optionholder
to his or her executors, administrators, testamentary trustees, legatees
or beneficiaries (the "Optionholder's Estate") or a transfer to the
executors, administrators, testamentary trustees, legatees or
beneficiaries of a person who has become a holder of Option Shares in
accordance with the terms of this Agreement; PROVIDED that such transfer
is made expressly subject to this Agreement and that the transferee agrees
in writing to be bound by the terms and conditions of this Agreement as if
such transferee were the Optionholder;
(iii) A transfer of Option Shares made in compliance with the
federal securities laws to a trust or custodianship the beneficiaries of
which, a partnership (general or limited) the partners of which, or a
limited liability company the members of which, may include only the
Optionholder, his or her spouse or his or her lineal descendants by blood
or adoption (the "Optionholder's Trust") or a transfer of Option Shares
made after the third anniversary of the Vesting date to such a trust,
partnership or limited liability corporation by a person who has become a
holder of such Option Shares in accordance with the terms of this
Agreement; PROVIDED that such transfer is made expressly subject to this
Agreement and that the transferee agrees in writing to be bound by the
terms and conditions of this Agreement as if such transferee were the
Optionholder; and
(iv) A pledge or hypothecation by the Optionholder or the
Optionholder's Trust of the Option Shares or his or her or its interest
therein to a bank or other financial institution (a "Pledgee") reasonably
satisfactory to WCP to secure a loan by such Pledgee to the Optionholder
or the Optionholder's Trust, as the case may be, for the purchase of the
Option Shares or the refinancing of any indebtedness incurred for the
purchase of the Option Shares; PROVIDED that (A) such Pledgee agrees in
writing to accept the Option Shares or interest therein subject to all of
the terms and conditions of this Agreement as if such Pledgee were the
Optionholder and to notify WCP upon the happening of any default or event
of default under the terms of the agreement with the Optionholder or the
Optionholder's Trust, as the case may be, relating to such pledge or
hypothecation and (B) the Optionholder or the Optionholder's Trust, as the
case may be, delivers to the Board a copy of all proposed documentation
relating to such pledge or hypothecation at least ten days before the
scheduled date of such pledge or hypothecation, and prior to such scheduled
date WCP has confirmed that such documentation is reasonably satisfactory
to it in form and substance.
(c) The certificate (or certificates) representing the Option Shares
shall bear the following legend:
"THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS
SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER
DISPOSITION COMPLIES WITH THE PROVISIONS OF STOCK OPTION AGREEMENT
DATED DECEMBER 18, 1998 BETWEEN WORLD COLOR PRESS, INC. ("WCP") AND
THE OPTIONHOLDER NAMED ON THE FACE HEREOF (A COPY OF WHICH IS ON FILE
AT THE PRINCIPAL OFFICE OF WCP). EXCEPT AS OTHERWISE PROVIDED IN
SUCH AGREEMENT, NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION
OR OTHER DISPOSITION OF THE SHARES REPRESENTED BY THIS CERTIFICATE
MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES OR "BLUE SKY"
LAWS OR (B) (I) IF WCP HAS BEEN FURNISHED WITH A SATISFACTORY OPINION
OF COUNSEL FOR THE HOLDER THAT SUCH TRANSFER, SALE, ASSIGNMENT,
PLEDGE, HYPOTHECATION OR OTHER DISPOSITION IS EXEMPT FROM THE
PROVISIONS OF SECTION 5 OF THE ACT AND THE RULES AND REGULATIONS IN
EFFECT THEREUNDER, AND IN COMPLIANCE WITH APPLICABLE PROVISIONS OF
STATE SECURITIES LAWS, AND (II) IF THE HOLDER IS A CITIZEN OR
RESIDENT OF ANY COUNTRY OTHER THAN THE UNITED STATES, OR THE HOLDER
DESIRES TO EFFECT ANY SUCH TRANSACTION IN ANY SUCH COUNTRY, THE
COMPANY HAS BEEN FURNISHED WITH A SATISFACTORY OPINION OR OTHER
ADVICE OF COUNSEL FOR THE HOLDER THAT SUCH TRANSACTION WILL NOT
VIOLATE THE LAWS OF SUCH COUNTRY."
(d) The Optionholder acknowledges that he or she has been advised that
(i) the issuance of the Option Shares upon exercise of the Options will not
have been registered under the Act, (ii) the Option Shares must be held
indefinitely and the Optionholder must continue to bear the economic risk of
the investment in the Option Shares unless they are subsequently registered
under the Act or an exemption from such registration is available, (iii) no
assurance can be given that there will be any public market for the Option
Shares, (iv) no assurance can be given that Rule 144 promulgated under the Act
will be available with respect to the sales of any securities of WCP, and WCP
has made no covenant to make such Rule available, (v) when and if any of the
Option Shares may be disposed of without registration in reliance on Rule 144,
such disposition can be made only in limited amounts in accordance with the
terms and conditions of such Rule, (vi) if the Rule 144 exemption is not
available, public sale without registration will require compliance with some
other exemption under the Act, (vii) a restrictive legend in the form
heretofore set forth shall be placed on the certificates representing the
Option Shares and (viii) a notation shall be made in the appropriate records of
WCP and/or the transfer agent for the Common Stock indicating that the Option
Shares are subject to restriction on transfer and appropriate stop transfer
restrictions will be issued to WCP's stock transfer agent with respect to the
Option Shares.
(e) If any of the Option Shares are to be disposed of in accordance with
Rule 144 under the Act or otherwise, the Optionholder shall promptly notify WCP
of such intended disposition and shall deliver to WCP at or prior to the time
of such disposition such documentation as WCP may reasonably request in
connection with such sale and, in the case of a disposition pursuant to Rule
144, shall deliver to WCP an executed copy of any notice on Form 144 required
to be filed with the Securities and Exchange Commission ("SEC").
(f) The Optionholder agrees that, if any securities of WCP are offered to
the public pursuant to an effective registration statement under the Act, the
Optionholder will not effect any public sale or distribution of any Option
Shares not covered by such registration statement within seven days prior to,
or within 180 days (or in an underwritten public offering, any such lesser
period as the underwriters may agree to) after, the effective date of such
registration statement, unless otherwise agreed to in writing by WCP; PROVIDED
that the Optionholder shall have been notified in writing of such offering.
6. RESTRICTION ON TRANSFER OF OPTION SHARES
(a) Except for transfers otherwise permitted by this Agreement, the
Optionholder agrees that he or she will not transfer, sell, assign, pledge,
hypothecate or otherwise dispose of any Option Shares at any time prior to the
fifth anniversary of the Vesting date. The restrictions on transfer provided
in this Section 6 shall not apply as of any date (the "Calculation Date") to a
number of Option Shares (the "Unrestricted Shares") held in the aggregate by
the Optionholder, the Optionholder's Trust, the Optionholder's Estate and all
Pledgees equal to the excess, if any, of (i) the product of (A) the total
number of Option Shares covered by all Options received by the Optionholder on
the Vesting date and (B) the Vested Percentage as of such date over (ii) the
total number of Option Shares transferred by the Optionholder, the
Optionholder's Trust, the Optionholder's Estate and all Pledgees after the date
hereof, other than pursuant to transfers permitted by clauses (ii), (iii) and
(iv) of Section 5(b) hereof. No transfer of any such shares in violation
hereof shall be made or recorded on the books of WCP (or any transfer agent or
registrar therefor) and any such transfer shall be null and void and of no
force or effect.
(b) For purposes of this Agreement, the "Vested Percentage" with respect
to Option Shares shall be determined as follows:
CALCULATION DATE VESTED PERCENTAGE
From Vesting date until the first 0%
anniversary of the Vesting date
On and after the first anniversary of 20%
the Vesting date until the second
anniversary of the Vesting date
On and after the second anniversary 40%
of the Vesting date until the third
anniversary of the Vesting date
On and after the third anniversary of 60%
the Vesting date until the fourth
anniversary of the Vesting date
On and after the fourth anniversary 80%
of the Vesting date until the fifth
anniversary of the Vesting date
On and after the fifth anniversary of 100%
the Vesting date
7. OPTIONHOLDER'S RIGHT TO RESELL OPTION SHARES AND OPTIONS TO WCP UPON
DEATH OR DISABILITY
(a) Except as otherwise provided herein, if on or before the fifth
anniversary of the Vesting date, (i) the Optionholder dies or becomes
Permanently Disabled (as hereinafter defined) and (ii) at the time of his or
her death or Permanent Disability, the Optionholder (A) was still in the employ
of the Company, (B) had retired from the Company at age 65 or over (or such
other age as may be approved by the Board) after having been employed by the
Company continuously for at least three years after the Vesting date (a
"Permitted Retirement"), or (C) had terminated employment with Good Reason (as
hereinafter defined), then the Optionholder, the Optionholder's Estate and/or
the Optionholder's Trust, as the case may be, shall have the right for six
months from the date of death or Permanent Disability to elect on one occasion
(x) to sell to WCP, and WCP shall be required to purchase all or any portion of
the Option Shares then held by the Optionholder, the Optionholder's Estate
and/or the Optionholder's Trust, as the case may be, at the Section 7
Repurchase Price, as determined in accordance with Section 9 and/or (y) to
require WCP to pay to the Optionholder an amount equal to the Option Excess
Price (as defined in Section 10(a)) determined on the basis of the Section 7
Repurchase Price as provided in Section 9 with respect to the termination of
all or any portion of outstanding Options held by the Optionholder.
(b) The Optionholder, the Optionholder's Estate and/or the Optionholder's
Trust, as the case may be, shall send written notice to WCP of his, her or its
election to sell such Option Shares and/or to terminate such Options in
exchange for the payment referred to in the preceding subsection (a) (the
"Redemption Notice") within the six-month period referred to in Section 7(a).
The completion of the purchase shall take place at the principal office of WCP
on the 15th business day after the receipt by WCP of a properly given
Redemption Notice. The Section 7 Repurchase Price and any payment with respect
to the Options as described above shall be paid by delivery to the
Optionholder, the Optionholder's Estate or the Optionholder's Trust, as the
case may be, of a certified or bank check or checks in the appropriate amount
payable to the order of the Optionholder, the Optionholder's Estate or the
Optionholder's Trust, as the case may be, against delivery of certificates or
other instruments representing the Option Shares so purchased and appropriate
documents canceling the Options so terminated, appropriately endorsed or
executed by the Optionholder, the Optionholder's Estate or the Optionholder's
Trust, or his, her or its duly authorized representative.
(c) Notwithstanding any other provision of this Section 7 and subject to
Section 13, if there exists and is continuing a default or any event which
after a notice or lapse of time or both would cause a default under any loan,
guarantee or other agreement under which WCP or any of its Subsidiaries has
borrowed money or such repurchase would result in any default or event of
default on the part of the WCP or any of its Subsidiaries under any such
agreement or if the capital of WCP or any of its Subsidiaries is then impaired
or would be impaired as a result of such repurchase or such repurchase would
otherwise violate the General Corporation Law of the State of Delaware (each
such occurrence being an "Event"), WCP shall not be obligated to repurchase any
of the Option Shares from, or to make any payment with respect to the Options
to, the Optionholder, the Optionholder's Estate and/or the Optionholder's
Trust, as the case may be until the first business day which is five business
days after all of the foregoing Events have ceased to exist (the "Repurchase
Eligibility Date"), PROVIDED that (i) the Section 7 Repurchase Price shall be
calculated as of the time of the delivery of a Redemption Notice in accordance
with Section 7(b) and (ii) the number of Option Shares subject to repurchase
under this Section 7(c) and the number of Exercisable Option Shares (as defined
in Section 10(a)) for purposes of calculating the Option Excess Price payable
under Section 7(a), shall be that number of Option Shares and Exercisable
Option Shares, respectively, held by the Optionholder, the Optionholder's
Estate or the Optionholder's Trust, as the case may be, at the time of the
delivery of a Redemption Notice in accordance with Section 7(b). All Options
exercisable as of the date of a Redemption Notice shall continue to be
exercisable until the repurchase pursuant to such Redemption Notice.
(d) Notwithstanding any other provision of this Section 7 to the
contrary, the Optionholder, the Optionholder's Estate or the Optionholder's
Trust, as the case may be, shall have the right to withdraw any Redemption
Notice which has been pending for 120 or more days and which has remained
unsatisfied because of the provisions of Section 7(c).
8. WCP'S RIGHT TO REPURCHASE OPTION SHARES AND TERMINATE OPTIONS OF
OPTIONHOLDER
(a) If on or prior to the fifth anniversary of the Vesting date, (i) the
Optionholder's employment with WCP (and, if applicable, its Subsidiaries) is
voluntarily or involuntarily terminated for any reason whatsoever, with or
without Cause or Good Reason, (ii) the beneficiaries of an Optionholder's Trust
shall include any person or entity other than the Optionholder, his or her
spouse or his or her lineal descendants by blood or adoption, (iii) the
Optionholder shall effect a transfer of any of the Option Shares other than as
permitted by this Agreement or (iv) there shall occur a transfer of Option
Shares then held by the Optionholder pursuant to a bankruptcy proceeding, levy,
property settlement or disposition pursuant to law incident to marital
separation or divorce (alternatively, a "Call Event"), then WCP shall have the
right to purchase all, but not less than all, of the Option Shares then held by
the Optionholder, the Optionholder's Estate, the Optionholder's Trust and all
Pledgees at the Section 8 Repurchase Price determined in accordance with
Section 9 hereof; PROVIDED that the Call Event described in clause (iv) of this
Section 8 shall entitle WCP to repurchase only the number of Option Shares that
are the subject of the transfer resulting in the Call Event; and PROVIDED,
FURTHER, that if the Call Event results from the death, Permanent Disability or
Permitted Retirement of the Optionholder, or the termination of the
Optionholder's employment by the Optionholder with Good Reason or by the
Company without Cause, WCP shall have the right to purchase all, but not less
than all, of the Option Shares held by the Optionholder, the Optionholder's
Estate, the Optionholder's Trust and any Pledgee at the Section 7 Repurchase
Price. WCP shall have a period of 75 days after the date of a Call Event (or
the date of WCP's knowledge that a Call Event described in clause (ii) or (iii)
above has occurred) in which to give notice in writing to the Optionholder of
WCP's exercise of such repurchase election (the "Call Notice"). If (X) the
Optionholder holds Option Shares and Options and WCP exercises its right to
repurchase Option Shares pursuant to this Section 8 or (Y) the Optionholder
holds only Options and WCP elects (in accordance with the requirements of the
Call Notice), WCP shall also pay the Optionholder an amount equal to the Option
Excess Price determined on the basis of the Section 8 Repurchase Price or
Section 7 Repurchase Price, as applicable, with respect to the termination of
(A) if the Call Event is described in clause (i), (ii) or (iii) above, all, but
not less than all, of the then exercisable outstanding Options held by the
Optionholder and (B) if the Call Event is described in clause (iv) above, a pro
rata portion (based on the number of Option Shares that are the subject of the
transfer) of the then exercisable outstanding Options held by the Optionholder.
(b) Subject to Section 13 hereof, the completion of the purchases pursuant
to Section 8 (a) shall take place at the principal office of WCP on the 15th
business day after the giving of notice of the exercise by WCP of its right to
purchase Option Shares and/or to terminate Options. All payments as described
above shall be made by delivery to the Optionholder, the Optionholder's Estate,
the Optionholder's Trust and/or the Pledgee, as the case may be, of a certified
or bank check or checks in the appropriate amounts payable to the order of the
Optionholder, the Optionholder's Estate, the Optionholder's Trust and/or the
Pledgee, as the case may be, against delivery of certificates or other
instruments representing the Option Shares so purchased and appropriate
documents canceling the Options so terminated, in each case appropriately
endorsed or executed by the Optionholder, the Optionholder's Estate, the
Optionholder's Trust, the Pledgee or his or her or its duly authorized
representatives.
(c) Notwithstanding any other provision of this Section 8 to the contrary
and subject to Section 13, if there exists and is continuing any Event, WCP
shall delay the repurchase of any of the Option Shares or the Options (pursuant
to a Call Notice timely given in accordance with Section 8(a) hereof) from the
Optionholder, the Optionholder's Estate or the Optionholder's Trust, as the
case may be, until the Repurchase Eligibility Date; PROVIDED that (i) the
Section 8 Repurchase Price or the Section 7 Repurchase Price, as the case may
be, shall be calculated as of the time of the delivery of a Call Notice in
accordance with Section 8(a) and (ii) the number of Option Shares subject to
repurchase under this Section 8 and the number of Exercisable Option Shares for
purposes of calculating the Option Excess Price payable under this Section 8,
shall be the number of Option Shares and Exercisable Option Shares,
respectively, held by the Optionholder, the Optionholder's Estate or the
Optionholder's Trust, as the case may be, at the time of the delivery of a Call
Notice in accordance with Section 8(a). All Options exercisable as of the date
of a Call Notice shall continue to be exercisable until the repurchase pursuant
to such Call Notice.
(d) Notwithstanding any other provision of this Section 8 to the
contrary, WCP's right to purchase Option Shares and cancel Options pursuant to
this Section 8 shall terminate with respect to any Option Shares and Options
that have not been so repurchased or cancelled on or before the 120th day after
the date of the Call Notice.
9. DETERMINATION OF REPURCHASE PRICE
(a) The Section 7 Repurchase Price and the Section 8 Repurchase Price are
hereinafter collectively referred to as the "Repurchase Price." The Repurchase
Price shall be calculated on the basis of the unaudited financial statements of
the Company or the Market Price Per Share (as defined in Section 9(e)) as of
the last day of the month preceding the month in which the event giving rise to
the repurchase occurs (the "Repurchase Calculation Date"). The event giving
rise to the repurchase shall be the transfer, death, Permanent Disability,
Permitted Retirement or termination of employment, or other event, as the case
may be, not the giving of any notice required pursuant to Section 7 or 8.
(b) The Section 7 Repurchase Price per Option Share shall be equal to the
greater of the Market Price Per Share and the Option Price Per Share.
(c) (i) If the Call Event results from the occurrence of an event
described in clauses (ii), (iii) or (iv) of Section 8(a), the Section 8
Repurchase Price per Option Share shall be equal to the lesser of (x) the
Market Price Per Share and (y) the Option Price Per Share plus the product
of (I) the Vested Percentage (as defined in Section 6) and (II) the amount,
if any, by which the Market Price Per Share exceeds the Option Price Per
Share.
(ii) If the Call Event results from the Optionholder's voluntary
termination of employment other than for Good Reason, the Section 8
Repurchase Price per Option Share shall be equal to the Market Price Per
Share.
(iii) If the Call Event results from the Optionholder's
termination of employment by the Company with Cause, the Section 8
Repurchase Price per Option Share shall be equal to the lesser of the
Market Price Per Share and the Option Price Per Share.
(d) As used herein the term "Public Offering" shall mean the sale of
shares of Common Stock to the public pursuant to a registration statement under
the Act which has been declared effective by the Securities and Exchange
Commission (other than a registration statement on Form S-8 or any other
similar form) immediately after which sale an active trading market in the
Common Stock exists; PROVIDED that an active trading market in the Common Stock
shall be deemed to exist if the Common Stock is listed on the New York Stock
Exchange, the American Stock Exchange or the NASDAQ National Market System, but
the failure of the Common Stock to be so listed shall not PER SE be
determinative as to whether an active trading market does not exist.
(e) As used herein the term "Market Price Per Share" shall mean the price
per share equal to the average of the last sale price of the Common Stock on
each of the ten trading days prior to the Repurchase Calculation Date on each
exchange on which the Common Stock may at the time be listed and on which the
Common Stock traded on such date or, if there shall have been no sales on any
of such exchanges on any such trading day, the average of the closing bid and
asked prices on each such exchange at the end of each such trading day or, if
there is no such bid and asked price on such trading day, on the next preceding
date when such bid and asked price occurred or, if the Common Stock shall not
be so listed, the average of the closing sales prices as reported by NASDAQ at
the end of each of the ten trading days prior to the Repurchase Calculation
Date in the over-the-counter market. If the Common Stock is not so listed or
reported by NASDAQ, then the Market Price Per Share shall be the fair market
value established by the Board acting in good faith.
(f) As used herein the term "Aggregate Market Value" shall mean the
product of (i) the number of shares of Common Stock to be applied as payment of
the Exercise Price pursuant to Section 4(b)(iv)(B) and (ii) the Market Value
Per Share as of the payment date.
(g) In determining the Repurchase Price, appropriate adjustments shall be
made for any future issuances of rights to acquire and securities convertible
into Common Stock and any stock dividends, splits, combinations,
recapitalizations or any other adjustment in the number of shares of
outstanding shares of Common Stock.
10. SHARES ISSUED TO OPTIONHOLDER UPON EXERCISE OF OPTIONS; TERMINATION
OF OPTIONS
(a) All Options, whether or not then exercisable, shall be automatically
terminated to the extent that, pursuant to the provisions of this Agreement,
WCP shall pay the Optionholder an amount equal to the Option Excess Price with
respect to such Options. If the Option Excess Price is zero or a negative
number, all outstanding Options granted to the Optionholder, whether or not then
exercisable, shall be automatically terminated upon the repurchase of any Option
Shares pursuant to Section 7 or Section 8. For purposes hereof, "Option Excess
Price" shall mean the excess, if any, of the Section 7 Repurchase Price or
the Section 8 Repurchase Price, depending on which Repurchase Price is (or
would be) used to repurchase the Option Shares, over the exercise price
applicable to such Options multiplied by the number of Exercisable Option
Shares. For purposes hereof, "Exercisable Option Shares" shall mean the shares
of Common Stock which, at the time of determination, could be purchased by the
Optionholder upon exercise of his or her outstanding exercisable Options.
(b) Except as otherwise provided herein or in the Option Plan, the
Options shall expire and cease to be exercisable to any extent after the first
to occur of the following events:
(i) the tenth anniversary of the Vesting date; or
(ii) the date that is six months after the Optionholder's termination
of employment by reason of death, Permanent Disability or Permitted Retirement;
or
(iii) the first business day which is fifteen calendar days after
the earlier of (A) 75 days after the Optionholder's termination of employment
for any reason other than for Cause, Good Reason, death, Permanent Disability
or Permitted Retirement, or (B) the delivery of notice by WCP that it does not
intend to exercise its call right under Section 8; PROVIDED that in any event
the Options shall remain exercisable under this Section 10 until at least 45
days after termination of the Optionholder's employment for any reason other
than death, Permanent Disability, or Permitted Retirement; or
(iv) upon the occurrence of a Transfer Event (as hereinafter defined)
and upon payment to the Optionholder of an amount in cash equal to the
difference between (i) the product of (A) the Per Share Consideration (as
hereinafter defined) received in such Transfer Event by a holder of Common
Stock multiplied by (B) the number of Option Shares for which the unexercised
Options are then exercisable and (ii) the aggregate Option Price Per Share for
such unexercised Options which are then exercisable. For the purposes of this
Section 10, the term "Per Share Consideration" shall mean the quotient of (x)
the aggregate consideration paid or to be paid (but only as and when received)
in respect of the Transfer Event to the holders of Common Stock of WCP, as
applicable, divided by (y) the number of outstanding shares of Common Stock on
a fully diluted basis (after giving effect to the exercise of all outstanding
options to acquire Common Stock to the extent then exercisable); and the term
"Transfer Event" shall mean any of a merger or consolidation involving WCP, a
sale or exchange of all or substantially all of the assets of WCP, an
acquisition by another corporation or other entity of 80% or more of WCP's
outstanding shares of voting stock or the liquidation or dissolution of WCP.
11. WCP'S REPRESENTATIONS AND WARRANTIES
(a) WCP represents and warrants to the Optionholder that (i) this
Agreement has been duly authorized, executed and delivered by WCP and (ii) the
Option Shares, when issued and delivered in accordance with the terms hereof,
will be duly and validly issued, fully paid and nonassessable.
(b) WCP shall file the reports required to be filed by it under the Act
and the Exchange Act to the extent required from time to time to enable the
Optionholder to sell Option Shares without registration under the Act within
the limitations of the exemptions provided by (i) Rule 144 under the Act, as
such Rule may be amended from time to time, or (ii) any similar rule or
regulation hereafter adopted by the SEC. Notwithstanding anything contained in
this Section 11(b), WCP may deregister under Section 12 of the Exchange Act if
it is then permitted to do so pursuant to the Exchange Act and the rules and
regulations thereunder, and, upon such deregistration, shall be relieved of its
obligations to file reports pursuant to this Section 11(b). Nothing in this
Section 11(b) shall be deemed to limit in any manner the restrictions on sales
of Option Shares contained in this Agreement.
12. "PIGGYBACK" REGISTRATION RIGHTS
(a) If WCP, in connection with any Public Offering, plans to register any
shares of Common Stock held by WCP Associates, L.P., APC Associates, L.P., GR
Associates, L.P., KKR Partners II, L.P. or any other KKR Affiliate (as defined
below) (the "Institutional Investors") for public offering pursuant to the Act,
WCP will promptly notify the Optionholder in writing (a "Registration Notice")
of such proposed registration (the "Proposed Registration"). If within ten
business days of the receipt by the Optionholder of such Registration Notice
(and, in any event, within 15 business days after such Registration Notice is
sent by WCP), WCP receives from the Optionholder, the Optionholder's Estate or
the Optionholder's Trust a written request (a "Registration Request") to
register Option Shares held by the Optionholder, the Optionholder's Estate or
the Optionholder's Trust (which Registration Request will be irrevocable unless
otherwise mutually agreed to in writing by the Optionholder and WCP), Option
Shares will be so registered as provided in this Section 12; PROVIDED that for
each such Proposed Registration only one Registration Request, which shall be
executed by the Optionholder, the Optionholder's Estate or the Optionholder's
Trust, as the case may be, may be submitted for all Registrable Securities held
by the Optionholder, the Optionholder's Estate and the Optionholder's Trust,
respectively. All Option Shares acquired by the Optionholder pursuant to the
exercise of Options granted pursuant to this Agreement and held by the
Optionholder, the Optionholder's Estate or the Optionholder's Trust, including
shares purchased upon the exercise of Options, shall be deemed to be
Registrable Securities.
(b) The maximum number of Option Shares which will be registered pursuant
to a Registration Request will be the lowest of (i) the number of Option Shares
then held by the Optionholder (which for purposes of this subparagraph (b)
shall include shares held by the Optionholder's Estate or a Optionholder's
Trust), including all Option Shares which the Optionholder is then entitled to
acquire under an unexercised Option to the extent then exercisable (the
"Maximum Shares"), (ii) the Maximum Shares then held by the Optionholder
multiplied by the ratio of (A) the number of shares of Common Stock to be
registered by the Institutional Investors in the Proposed Registration to (B)
the total number of shares of Common Stock beneficially owned by all
Institutional Investors and (iii) the maximum number of shares which the
Optionholder can register in the public offering pursuant to any limits set by
the managing underwriter for inclusion in such public offering and agreed to in
good faith by WCP.
(c) Except as may otherwise be provided in this Section 12, Option Shares
will be registered by WCP and offered to the public pursuant to this Section 12
on the same terms and subject to the same conditions applicable to registration
in the Proposed registration of shares held by an Institutional Investor. Such
terms and conditions shall include, without limitation: the public offering
price; the payment of fees, commissions and expenses; the provision of, and
representation and warranty as to, information requested by WCP; and the
provision of requisite indemnifications.
(d) Upon delivering a Registration Request, the Optionholder will, if
requested by WCP, execute and deliver a Custody Agreement and Power of Attorney
in form and substance satisfactory to WCP with respect to the Option Shares to
be registered pursuant to this Section 12 (a "Custody Agreement and Power of
Attorney"). The Custody Agreement and Power of Attorney will provide, among
other things, that the Optionholder, the Optionholder's Estate or the
Optionholder's Trust, as the case may be, will deliver to and deposit in
custody with the custodian and attorney-in-fact named therein a certificate or
certificates representing such Option Shares (duly endorsed in blank by the
registered owner or owners thereof or accompanied by duly executed stock powers
in blank) and irrevocably appoint said custodian and attorney-in-fact as the
Optionholder, the Optionholder's Estate's or the Optionholder's Trust's, as the
case may be, agent and attorney-in-fact with full power and authority to act
under the Custody Agreement and Power of Attorney on behalf of the
Optionholder, the Optionholder's Estate or the Optionholder's Trust, as the
case may be, with respect to the matters specified therein. The Optionholder
agrees that he will execute such other agreements as WCP may reasonably request
to further evidence the provisions of this Section 12.
13. CONTINUED EXERCISABILITY OF WCP'S RIGHT OR OBLIGATION TO REPURCHASE.
Notwithstanding anything to the contrary contained in Sections 7 and 8 hereof,
if at any time consummation of all purchases and payments to be made by the
Company pursuant to this Agreement and the Other Stock Option Agreements would
result in an Event, then the Company shall make purchases from, and payments
to, the Optionholder and Other Optionholders pro rata (on the basis of the
proportion of the number of Option Shares and the number of Options each such
Optionholder and all Other Optionholders have elected or are required to sell
to the Company) for the maximum number of Option Shares and shall pay the
Option Excess Price for the maximum number of Options permitted without
resulting in an Event (the "Maximum Repurchase Amount"). The provisions of
Section 7(d) and 8(c) shall apply in their entirety to payments and repurchases
with respect to Options and Option Shares which may not be made due to the
limits imposed by the Maximum Repurchase Amount under this Section 13. Until
all of such Options and Option Shares are purchased and paid for by the
Company, the Optionholder and the Other Optionholders whose Options and Option
Shares are not purchased in accordance with this Section 13 shall have
priority, on a pro rata basis, over other purchases of Options and Option
Shares by the Company pursuant to this Agreement and Other Stock Option
Agreements.
14. RIGHT TO NEGOTIATE PURCHASE PRICE. Nothing contained in this
Agreement shall be deemed to restrict or prohibit WCP from purchasing Option
Shares and the Options from the Optionholder, the Optionholder's Estate or the
Optionholder's Trust, at any time, for such price upon such other terms and
conditions as may be mutually agreed upon between such parties, whether or not
at the time of such purchase circumstances exist which specifically grant WCP
the right to purchase, or the Optionholder, the Optionholder's Estate or the
Optionholder's Trust to sell, Option Shares and the Options under the terms of
this Agreement, and all such purchases shall be deemed to be in accordance with
the terms of this Agreement.
15. COVENANT REGARDING 83(B) ELECTION. EXCEPT AS WCP MAY OTHERWISE AGREE
IN WRITING, THE OPTIONHOLDER HEREBY COVENANTS AND AGREES THAT HE OR SHE WILL
MAKE AN ELECTION UNDER SECTION 83(B) OF THE CODE PURSUANT TO TREASURY
REGULATION SECTION 1.83-2 WITH RESPECT TO ANY OPTION SHARES ISSUED UPON
EXERCISE OF THE OPTIONS. THE OPTIONHOLDER FURTHER COVENANTS AND AGREES THAT HE
OR SHE WILL FURNISH WCP WITH COPIES OF THE FORM OF ELECTION THE OPTIONHOLDER
FILES WITHIN 30 DAYS AFTER EACH EXERCISE OF ANY OF THE OPTIONS AND WITH
EVIDENCE THAT EACH SUCH ELECTION HAS BEEN FILED IN A TIMELY MANNER.
16. NOTICE OF CHANGE OF BENEFICIARY. Immediately prior to any transfer
of Option Shares to the Optionholder's Trust, the Optionholder shall provide
WCP with a copy of the instruments creating the Optionholder's Trust and with
the identity of the beneficiaries of the Optionholder's Trust. The
Optionholder shall notify WCP immediately prior to any change in the identity
of any beneficiary of the Optionholder's Trust.
17. EXPIRATION OF CERTAIN PROVISIONS
(a) The provisions contained in Sections 7 and 8 of this Agreement, and
the portions of other provisions of this Agreement which incorporates the
provisions of Sections 7 and 8, shall terminate and be of no further force or
effect with respect to any Option Shares which are permitted to be sold by the
Optionholder pursuant to this Agreement and which are sold by the Optionholder
(i) pursuant to an effective registration statement filed by the Company under
the Act or (ii) pursuant to Rule 144, as amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.
(b) The provisions contained in Sections 5(f), 6, 7, 8 and 15 of this
Agreement, and the portion of any other provisions of this Agreement which
incorporate the provisions of any of such Sections, shall terminate and be of
no further force or effect upon the consummation of a Change of Control. For
purposes of this Section, "Change of Control" means the occurrence of any of
the following: (i) the sale, lease, transfer conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the assets of the Company taken as
a whole to any "person" or "group" (as such terms are used in Sections 13(d)
and 14(d) of the Exchange Act) other than the "KKR Affiliates" (as hereinafter
defined), (ii) the adoption of a plan relating to the liquidation or
dissolution of WCP, (iii) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that
any "person" (as defined above), other than the KKR Affiliates, becomes the
"beneficial owner" (as such term is defined in Rule 13d-3 and Rule 13d-5 under
the Exchange Act), directly or indirectly, of more than 50% of the voting stock
of WCP, (iv) the consummation of the first transaction (including, without
limitation, any merger or consolidation) the result of which is that any
"person" (as defined above) becomes the "beneficial owner" (as defined above),
directly or indirectly, of more of the voting stock of WCP than is at the time
"beneficially owned" (as defined above) by the KKR Affiliates. For purposes of
this Agreement, "KKR Affiliate" shall mean any other Person directly or
indirectly controlling, controlled by, or under common control with, Kohlberg
Kravis Xxxxxxx & Co., L.L.P., its successors or assigns; "Person" means an
individual, partnership, corporation, business trust, joint stock company,
trust, unincorporated association, joint venture, governmental authority or
other entity of whatever nature, and "control" shall have the meaning given
such term under Rule 405 of the Act.
18. RECAPITALIZATION. Except to the extent otherwise provided by Section
17 hereof, the provisions of this Agreement shall apply, to the full extent set
forth herein with respect to the Option Shares and the Options, to any and all
capital stock of WCP and any partnership units, capital stock or other security
evidencing ownership interests in any successor or assign of WCP (whether by
merger, consolidation, sale of assets or otherwise) which may be issued in
respect of, in exchange for or in substitution of Option Shares and the
Options, by reason of any dividend, distribution, split, reverse split,
combination, recapitalization, liquidation, reclassification, merger,
consolidation or otherwise.
19. OPTIONHOLDER'S EMPLOYMENT BY THE COMPANY. Nothing contained in this
Agreement or in any other agreement entered into by the Company and the
Optionholder in connection with the execution of this Agreement (i) obligates
the Company to employ the Optionholder in any capacity whatsoever or (ii)
prohibits or restricts the Company from terminating the employment, if any, of
the Optionholder at any time or for any reason whatsoever, with or without
cause, and the Optionholder hereby acknowledges and agrees that neither the
Company nor any other person has made any representations or promises
whatsoever to the Optionholder concerning the Optionholder's employment or
continued employment by the Company except as otherwise set forth in a separate
written agreement between the Company and the Optionholder.
20. STATE SECURITIES LAWS. WCP hereby agrees to use all reasonable
efforts to comply with all state securities or "blue sky" laws, which might be
applicable to the issuance of the Option Shares to the Optionholder.
21. BINDING EFFECT. The provisions of this Agreement shall be binding
upon and accrue to the benefit of the parties hereto and their respective
heirs, legal representatives, successors and assigns. In the case of a
transferee permitted under Section 5(b) hereof, such transferee shall be deemed
to be the Optionholder hereunder; PROVIDED that no transferee (including,
without limitation, any transferee referred to in Section 5(b) hereof) shall
derive any rights under this Agreement unless and until such transferee has
delivered to WCP a valid undertaking and becomes bound by the terms of this
Agreement.
22. AMENDMENT. This Agreement may be amended only by a written agreement
or instrument signed by the Parties hereto; PROVIDED that WCP may, in its
discretion, amend this Agreement by a written agreement or instrument signed
only by WCP to reduce or eliminate any restriction on the sale, transfer or
other disposition of Option Shares.
23. CLOSING. Except as otherwise provided herein, the closing of each
purchase and sale of Option Shares and any outstanding Options pursuant to this
Agreement shall take place at the principal office of WCP on the 15th business
day following delivery of the notice by either Party to the other of its
exercise of the right to purchase or sell hereunder.
24. APPLICABLE LAW. The laws of the State of Delaware shall govern the
interpretation, validity and performance of the terms of this Agreement,
regardless of the law that might be applied under principles of conflicts of
law.
25. ASSIGNABILITY OF CERTAIN RIGHTS BY WCP. WCP shall have the right to
assign any or all of its rights or obligations to purchase Option Shares and
any outstanding Options pursuant to Sections 7 and 8 hereof.
26. PAYMENT BY WCP. If at any time WCP purchases Option Shares or any
outstanding Options from the Optionholder hereunder, and the Optionholder is
indebted to WCP in any amount whatsoever, WCP, in its sole discretion, may
apply all or any part of such indebtedness to the purchase price.
27. NOTICES. All notices and other communications necessary or
contemplated under this Agreement shall be in writing and shall be delivered in
the manner specified herein or, in the absence of such specification, shall be
deemed delivered when delivered in person or sent by first-class mail
(certified or registered mail, return receipt requested, postage prepaid),
facsimile or overnight air courier guaranteeing next day delivery, addressed as
follows:
(a) If to WCP, to it at the following address:
World Color Press, Inc.
The Mill
000 Xxxxxxxxxx Xxxx
Xxxxxxxxx, Xxxxxxxxxxx 00000
Facsimile No.: (000) 000-0000
Attn: Chief Legal Officer
(b) If to the Optionholder, to him or her at the following address:
000 Xxxxxxxxx Xxxxx Xxxx
Xxxxxxxxx, XX 00000
28. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.
29. SECTION HEADINGS. The section headings in this Agreement are for
convenience of reference only and shall not be deemed to alter or affect any
provision hereof.
30. REMEDIES FOR VIOLATIONS. The Parties agree that they would be
irreparably damaged and that money damages would not be a sufficient remedy in
the event that the Parties do not follow this Agreement. In the event of any
such breach, the non-breaching Party shall be entitled, without being required
to post a bond or other security, to equitable relief (including, without
limitation, injunction and specific performance) as a remedy for such breach.
Such remedies shall not be deemed to be the exclusive remedies for any such
breach but shall be in addition to all other remedies available at law or
equity to the non-breaching Party.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first above written.
WORLD COLOR PRESS, INC.
/s/ Xxxxxxxx X. Xxxxx
By: --------------------------------------------
Xxxxxxxx X. Xxxxx
Vice Chairman
/s/ Xxxxxx X. Xxxxxx
--------------------------------------------
Xxxxxx X. Xxxxxx
