RC2 CORPORATION STOCK APPRECIATION RIGHT GRANT AGREEMENT
Exhibit 10.10
RC2
CORPORATION
STOCK
APPRECIATION RIGHT GRANT AGREEMENT
THIS
STOCK APPRECIATION RIGHT GRANT AGREEMENT dated as of _____________, 200__ (the
"Grant Date"), is between __________________ ("Grantee") and RC2 CORPORATION,
a
Delaware corporation (the "Company").
RECITALS
A. The
Company adopted the RC2 Corporation 2005 Stock Incentive Plan (the "Plan"),
which was approved by its Board of Directors (the "Board") and
stockholders.
B. The
Board has designated Grantee as a participant in the Plan.
C. Pursuant
to the Plan, Grantee and the Company desire to enter into this Agreement setting
forth the terms and conditions of the following stock appreciation right granted
to Grantee under the Plan.
AGREEMENTS
Grantee
and the Company agree as follows:
1. Grant
of Stock Appreciation
Right. The Company grants to Grantee a stock appreciation
right (hereinafter referred to as the "Stock Appreciation Right") with respect
to a total of _____ shares (the "Shares") of the Company's common stock,
par value $0.01 per share (the "Common Stock "), on the terms and conditions
set
forth below and in the Plan.
2. Exercise
Price. The exercise price of this Stock Appreciation Right
shall be $______ per share, which is equal to or greater than the Fair Market
Value of the Stock on the Grant Date.
3. Period
of
Exercise. Except as provided under the Plan, unless the Stock
Appreciation Right is terminated, Grantee may exercise this Stock Appreciation
Right for up to, but not in excess of, the percent of shares of Stock subject
to
the Stock Appreciation Right during the periods specified below:
Percentage
of Shares
|
||
of
Common Stock
|
On
or After
|
|
Grantee's
right to exercise the Stock Appreciation Right expires ten years from the Grant
Date.
4. Definitions. Unless
provided to the contrary in this Agreement, the definitions contained in the
Plan and any amendments to the Plan shall apply to this Agreement.
5. Change
in Capital
Structure. The number of Shares covered by and the exercise
price of this Stock Appreciation Right will be adjusted in the event of a stock
dividend, stock split, reverse stock split, recapitalization, reorganization,
merger, consolidation, acquisition or other change in the capital structure
of
the Company as determined by the Board in accordance with the Plan.
6. Nontransferability
of Stock
Appreciation Right. This Stock Appreciation Right shall not be
transferable other than by will or the laws of descent or distribution and
shall
be exercisable, during Grantee's lifetime, only by Grantee.
7. Exercise
of Stock
Appreciation Right. Each exercise of this Stock Appreciation
Right shall be in writing (substantially in the form of Exhibit A hereto),
signed by the Grantee, and received by the Company in its principal
office. The Grantee may exercise this Stock Appreciation Right with
respect to less than the total number of Shares covered hereby; provided that
no
partial exercise of this Stock Appreciation Right may be with respect to any
fractional Share. Upon exercise of this Stock Appreciation Right, the
Grantee shall receive from the Company certificate(s) issued in the Grantee's
name (or, if requested by the Grantee, such shares shall be issued to the
Grantee by electronic transfer to the Grantee's broker) for the number of whole
shares of Stock equal to the amount determined by dividing (a) the product
of (i) the difference between the Fair Market Value on the Date of Exercise
over the exercise price of this Stock Appreciation Right, times (ii) the
number of Shares with respect to which this Stock Appreciation Right is
exercised, by (b) the Fair Market Value on the Date of Exercise, rounding
any fractional share to the nearest whole share. If delivery is by mail,
such delivery shall be deemed effected when deposited in the United States
mail,
addressed to Grantee.
8. Nontransferability
of Stock
Appreciation Right. This Stock Appreciation Right shall not be
transferable other than by will or the laws of descent and distribution and
shall be exercisable, during the Grantee's lifetime, only by the
Grantee.
9. Addresses. All
notices or statements required to be given to either party hereto shall be
in
writing and shall be personally delivered or sent, in the case of the Company,
to its principal business office and, in the case of Grantee, to Grantee's
address as is shown on the records of the Company or to such address as Grantee
designates in writing. Notice of any change of address shall be sent
to the other party by registered or certified mail. It shall be
conclusively presumed that any notice or statement properly addressed and mailed
bearing the required postage stamps has been delivered to the party to which
it
is addressed.
10. Restrictions
Imposed by
Law. Notwithstanding any other provision of this Agreement,
Grantee agrees that Grantee shall not exercise this Stock Appreciation Right
and
that the Company will not be obligated to deliver any shares of Common Stock
or
make any cash payment if counsel to the Company determines that such exercise,
delivery or payment would violate any law or regulation of any governmental
authority or any agreement between the Company and any national securities
exchange upon which the Common Stock is listed. The Company shall in
no event be obligated to take any affirmative action in order to cause the
exercise of this Stock Appreciation Right to comply with any law or regulation
of any governmental authority.
11. Service
Provider
Relationship. Nothing in this Agreement or in the Plan shall
limit the right of the Company or any parent or subsidiary of the Company to
terminate Grantee's employment or other form of service relationship or
otherwise impose any obligation to employ and/or retain Grantee as a service
provider.
12. Governing
Law. This Agreement shall be construed, administered and
governed in all respects under and by the laws of the State of
Delaware.
13. Provisions
Consistent with
Plan. This Agreement is intended to be construed to be
consistent with, and is subject to, all applicable provisions of the Plan,
which
is incorporated herein by reference. In the event of a conflict
between the provisions of this Agreement and the Plan, the provisions of the
Plan shall prevail.
_______________________________________
[Name
of
Grantee]
RC2
CORPORATION
BY____________________________________
EXHIBIT
A
Stock
Appreciation Right Exercise
1. I
exercise my Stock Appreciation Right with respect to the number of shares of
RC2
Corporation (the “Company”) common stock shown below pursuant to the Company’s
2005 Stock Incentive Plan.
Grant
Agreement
|
Stock
Appreciation Right
Exercised
|
Date____________________
|
Number____________________
Per
Share
Exercise
Price_________________
|
2. In
connection with this Stock Appreciation Right exercise, I represent the
following:
(a) All
conditions under the above-referenced Grant Agreement have been met with respect
to the Stock Appreciation Right exercised.
(b) I
have had access to and have reviewed all current publicly available reports
filed by the Company with the Securities and Exchange Commission and have based
my purchase on that information and not on any other oral or written information
supplied by the Company.
3. I
understand that before I receive my certificate for the shares referenced above,
the Company requires me to remit to it an amount in cash sufficient to satisfy
any outstanding amounts due the Company and to satisfy any federal, state or
local withholding tax requirements.
Date____________________
|
Name_______________________________
(Please
print name)
|
Signature______________________________
|
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