DEALERTRACK HOLDINGS, INC. 2005 INCENTIVE AWARD PLAN FORM OF RESTRICTED STOCK AWARD GRANT NOTICE AND RESTRICTED STOCK AWARD AGREEMENT
Exhibit 10.2
DEALERTRACK HOLDINGS, INC.
2005 INCENTIVE AWARD PLAN
2005 INCENTIVE AWARD PLAN
FORM OF RESTRICTED STOCK AWARD GRANT NOTICE AND
RESTRICTED STOCK AWARD AGREEMENT
RESTRICTED STOCK AWARD AGREEMENT
DealerTrack Holdings, Inc., a Delaware corporation, (the “Company”), pursuant to its 2005
Incentive Award Plan (the “Plan”), hereby grants to the individual listed below (“Participant”),
the number of shares of the Company’s Common Stock set forth below (the “Shares”). This Restricted
Stock Award is subject to all of the terms and conditions as set forth herein and in the Restricted
Stock Award Agreement attached hereto as Exhibit A (the “Restricted Stock Agreement”)
(including without limitation the Restrictions on the Shares set forth in the Restricted Stock
Agreement) and the Plan, each of which are incorporated herein by reference. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant
Notice and the Restricted Stock Agreement.
Participant: |
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Grant Date: |
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Total Number of
Shares of Restricted Stock: |
shares | |||
Vesting
Commencement Date: |
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Vesting Schedule:
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Subject to Sections 2.2(a) and 2.2(c) of the Restricted Stock Agreement, the Award shall vest and Restrictions shall lapse with respect to 25% of the shares of Restricted Stock subject to the Award (rounded down to the next whole number of shares) on each of the first four anniversaries of the Vesting Commencement Date, provided in each case that the Participant remains continuously employed in active service by the Company or any of its Subsidiaries from the Grant Date through such date. |
By his or her signature and the Company’s signature below, Participant agrees to be bound by
the terms and conditions of the Plan, the Restricted Stock Agreement and this Grant Notice.
Participant has reviewed the Restricted Stock Agreement, the Plan and this Grant Notice in their
entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant
Notice and fully understands all provisions of this Grant Notice, the Restricted Stock Agreement
and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator of the Plan upon any questions arising under the Plan, this
Grant Notice or the Restricted Stock Agreement. If Participant is married, his or her spouse has
signed the Consent of Spouse attached to this Grant Notice as Exhibit B.
By execution of this Agreement, the Participant agrees to comply with the terms and conditions
of the Company’s Stock Ownership and Retention Program, as in effect from time to time, and
acknowledges that failure to comply with the Stock Ownership and Retention Program may result in
penalties to the Participant.
| DEALERTRACK HOLDINGS, INC.: | PARTICIPANT: | |||||||||
By:
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By: | |||||||||
Print Name:
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Xxxx X. X’Xxxx | Print Name: | ||||||||
Title:
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Chairman, President and CEO | |||||||||
Address:
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0000 Xxxxxx Xxxxxx, Xxxxx X00 | |||||||||
| Lake Success, NY 11042 | ||||||||||
EXHIBIT A
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
Pursuant to the Restricted Stock Award Grant Notice (the “Grant Notice”) to which this
Restricted Stock Award Agreement (the “Agreement”) is attached, DealerTrack Holdings, Inc., a
Delaware corporation (the “Company”) has granted to Participant the right to purchase the number of
shares of Restricted Stock under the 2005 Incentive Award Plan, as amended from time to time (the
"Plan”), as set forth in the Grant Notice.
ARTICLE I.
GENERAL
1.1 Definitions. All capitalized terms used in this Agreement without definition
shall have the meanings ascribed in the Plan and the Grant Notice.
1.2 Incorporation of Terms of Plan. The Award is subject to the terms and conditions
of the Plan which are incorporated herein by reference. In the event of any inconsistency between
the Plan and this Agreement, the terms of the Plan shall control.
ARTICLE II.
AWARD OF RESTRICTED STOCK
AWARD OF RESTRICTED STOCK
2.1 Award of Restricted Stock.
(a) Award. In consideration of the Participant’s agreement to remain in the service
or employ of the Company or one of its Subsidiaries, and for other good and valuable consideration
which the Committee has determined exceeds the aggregate par value of the Stock subject to the
Award (as defined below), as of the Grant Date, the Company issues to the Participant the Award
described in this Agreement (the “Award”). The number of shares of Restricted Stock (the “Shares”)
subject to the Award is set forth in the Grant Notice. The Participant is an Employee, Director or
other Service Provider.
(b) Book Entry Form. The Shares will be issued in uncertificated form. At the sole
discretion of the Committee, the Shares will be issued in either (i) uncertificated form, with the
Shares recorded in the name of the Participant in the books and records of the Company’s transfer
agent with appropriate notations regarding the restrictions on transfer imposed pursuant to this
Agreement, and upon vesting and the satisfaction of all conditions set forth in Section 2.2(d), the
Company shall cause certificates representing the Shares to be issued to the Participant; or (ii)
certificate form pursuant to the terms of Sections 2.1(c) and (d).
(c) Legend. Certificates representing Shares issued pursuant to this Agreement shall,
until all restrictions on transfer imposed pursuant to this Agreement lapse or shall have been
removed and new certificates are issued, bear the following legend (or such other legend as shall
be determined by the Committee):
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING
REQUIREMENTS AND MAY BE SUBJECT TO FORFEITURE
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UNDER THE TERMS OF THAT CERTAIN RESTRICTED STOCK AWARD AGREEMENT BY AND BETWEEN
DEALERTRACK HOLDINGS, INC. AND THE REGISTERED OWNER OF SUCH SHARES, AND SUCH SHARES
MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO
THE PROVISIONS OF SUCH AGREEMENT.”
(d) Escrow. The Secretary of the Company or such other escrow holder as the Committee
may appoint may retain physical custody of the certificates representing the Shares until all of
the restrictions on transfer imposed pursuant to this Agreement lapse or shall have been removed;
in such event the Participant shall not retain physical custody of any certificates representing
unvested Shares issued to him.
2.2 Restrictions.
(a) Forfeiture. Any Award which is not vested as of the date the Participant ceases
to be an employee of the Company or one of its Subsidiaries or other Service Provider shall
thereupon be forfeited immediately and without any further action by the Company. For purposes of
this Agreement, “Restrictions” shall mean the restrictions on sale or other transfer set forth in
Section 3.2 and the exposure to forfeiture set forth in this Section 2.2(a).
(b) Vesting and Lapse of Restrictions. Subject to Sections 2.2(a) and 2.2(c), the
Award shall vest and Restrictions shall lapse in accordance with the vesting schedule set forth on
the Grant Notice or any other written agreement between the Company or any of its Subsidiaries, on
the one hand, and Participant, on the other hand.
(c) Acceleration of Vesting. Notwithstanding Sections 2.2(a) and 2.2(b), pursuant to
Section 11.3 of the Plan, the Award shall become fully vested and all Restrictions applicable to
such Award shall lapse in the event of a Change in Control, in connection with which the successor
corporation does not assume the Award or substitute an equivalent right for the Award. Should the
successor corporation assume the Award or substitute an equivalent right, then no such acceleration
shall apply (unless otherwise determined by the Committee pursuant to the terms of the Plan).
(d) Tax Withholding; Conditions to Issuance of Certificates. Notwithstanding any
other provision of this Agreement (including without limitation Section 2.1(b)):
(i) No new certificate shall be delivered to the Participant or his legal representative
unless and until the Participant or his legal representative shall have paid to the Company the
full amount of all federal and state withholding or other taxes applicable to the taxable income of
Participant resulting from the grant of Shares or the lapse or removal of the Restrictions.
(ii) The Company shall not be required to issue or deliver any certificate or certificates for
any Shares prior to the fulfillment of all of the following conditions: (A) the admission of the
Shares to listing on all stock exchanges on which such Common Stock is then listed, (B) the
completion of any registration or other qualification of the Shares under any state or federal law
or under rulings or regulations of the Securities and Exchange Commission or other governmental
regulatory body, which the Committee shall, in its sole and absolute discretion, deem necessary and
advisable, (C) the obtaining of any approval or other clearance from any state or federal
governmental agency that the Committee shall, in its absolute discretion, determine to be necessary
or advisable and (D) the lapse of
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any such reasonable period of time following the date the Restrictions lapse as the Committee
may from time to time establish for reasons of administrative convenience.
ARTICLE III.
OTHER PROVISIONS
3.1 Section 83(b) Election. Participant understands that Section 83(a) of the Code
taxes as ordinary income the difference between the amount, if any, paid for the shares of Common
Stock and the Fair Market Value of such shares at the time the Restrictions on such shares lapse.
Participant understands that, notwithstanding the preceding sentence, Participant may elect to be
taxed at the time of the Grant Date, rather that at the time the Restrictions lapse, by filing an
election under Section 83(b) of the Code (an “83(b) Election”) with the Internal Revenue Service
within 30 days of the Grant Date. In the event Participant files an 83(b) Election, Participant
will recognize ordinary income in an amount equal to the difference between the amount, if any,
paid for the shares of Common Stock and the Fair Market Value of such shares as of the Grant Date.
Participant further understands that an additional copy of such 83(b) Election form should be filed
with his or her federal income tax return for the calendar year in which the date of this Agreement
falls. Participant acknowledges that the foregoing is only a summary of the effect of United
States federal income taxation with respect to the award of Restricted Stock hereunder, and does
not purport to be complete. PARTICIPANT FURTHER ACKNOWLEDGES THAT THE COMPANY IS NOT RESPONSIBLE
FOR FILING THE PARTICIPANT’S 83(b) ELECTION, AND THE COMPANY HAS DIRECTED PARTICIPANT TO SEEK
INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF THE INTERNAL REVENUE CODE, THE INCOME TAX
LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY IN WHICH PARTICIPANT MAY RESIDE, AND THE TAX
CONSEQUENCES OF PARTICIPANT’S DEATH.
3.2 Restricted Stock Not Transferable. No Shares or any interest or right therein or
part thereof shall be liable for the debts, contracts or engagements of the Participant or his
successors in interest or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be voluntary or
involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null
and void and of no effect; provided, however, that this Section 3.2 notwithstanding, with the
consent of the Committee, the Shares may be transferred to certain persons or entities related to
Participant, including but not limited to members of Participant’s family, charitable institutions
or trusts or other entities whose beneficiaries or beneficial owners are members of Participant’s
family or to such other persons or entities as may be expressly approved by the Committee, pursuant
to any such conditions and procedures the Committee may require.
3.3 Rights as Stockholder. Except as otherwise provided herein, upon the Grant Date
the Participant shall have all the rights of a stockholder with respect to the Shares, subject to
the Restrictions herein, including the right to vote the Shares and the right to receive any cash
or stock dividends paid to or made with respect to the Shares; provided, however, that at the
discretion of the Company, and prior to the delivery of Shares, the Participant may be required to
execute a stockholders agreement in such form as shall be determined by the Company.
3.4 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall
confer upon the Participant any right to continue to serve as an employee or other service provider
of the Company or any of its Subsidiaries.
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3.5 Governing Law. The laws of the State of Delaware shall govern the
interpretation, validity, administration, enforcement and performance of the terms of this
Agreement regardless of the law that might be applied under principles of conflicts of laws.
3.6 Conformity to Securities Laws. The Participant acknowledges that the Plan and
this Agreement are intended to conform to the extent necessary with all provisions of the
Securities Act of 1933, as amended, and the Exchange Act, and any and all regulations and rules
promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule
16b-3 under the Exchange Act. Notwithstanding anything herein to the contrary, the Plan shall be
administered, and the Awards are granted, only in such a manner as to conform to such laws, rules
and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.
3.7 Amendment, Suspension and Termination. To the extent permitted by the Plan, this
Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any
time or from time to time by the Committee or the Board, provided, that, except as may otherwise be
provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall
adversely effect the Award in any material way without the prior written consent of the
Participant.
3.8 Notices. Notices required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery or upon deposit in the United States mail
by certified mail, with postage and fees prepaid, addressed to the Participant to his address shown
in the Company records, and to the Company at its principal executive office.
3.9 Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Participant and his or her heirs, executors, administrators,
successors and assigns.
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EXHIBIT B
TO RESTRICTED STOCK AWARD GRANT NOTICE
TO RESTRICTED STOCK AWARD GRANT NOTICE
CONSENT OF SPOUSE
I, , spouse of , have read and approve the foregoing
Agreement. In consideration of issuing to my spouse the shares of the common stock of DealerTrack
Holdings, Inc. set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in
respect to the exercise of any rights under the Agreement and agree to be bound by the provisions
of the Agreement insofar as I may have any rights in said Agreement or any shares of the common
stock of DealerTrack Holdings, Inc. issued pursuant thereto under the community property laws or
similar laws relating to marital property in effect in the state of our residence as of the date of
the signing of the foregoing Agreement.
Dated: , |
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| Signature of Spouse |
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