FORM OF PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT – MARKET CAPITALIZATION GROWTH] BROCADE COMMUNICATIONS SYSTEMS, INC. PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT
Exhibit 10.2
[FORM OF PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT –
MARKET CAPITALIZATION GROWTH]
MARKET CAPITALIZATION GROWTH]
BROCADE COMMUNICATIONS SYSTEMS, INC.
PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT
PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT
NOTICE OF GRANT
[GRANTEE NAME]
[GRANTEE ADDRESS]
[GRANTEE ADDRESS]
You (“Grantee”) have been granted an award of Restricted Stock Units under the Company’s
Amended and Restated 1999 Stock Plan (the “Plan”). The date of this Restricted Stock Unit
Agreement (the “Agreement”) is the Grant Date defined below. Subject to the provisions of Appendix
A, any appendix to the Agreement for Grantee’s country of residence (for non-US employees) and the
Plan, all of which are attached hereto and incorporated herein in their entirety, the principal
features of this Award are as follows:
Grant Date:
|
[ ] (the “Grant Date”) | |
Maximum Number
of Restricted Stock Units:
|
[ ] (the “Maximum Number of Restricted Stock Units”) | |
Pool Percentage: |
[ ] | |
Grantee Percentage of
Restricted Stock Unit Pool:
|
[ ]% | |
Performance Period:
|
[PERFORMANCE PERIOD BEGIN DATE] through [PERFORMANCE PERIOD END DATE] (subject to Section 4(c) of Appendix A) (the “Performance Period”). | |
Performance Matrix:
|
The number of Restricted Stock Units in which you may vest in accordance with the Vesting Schedule will depend upon the Company’s Market Capitalization Growth Rate as compared to the QQQQ Growth Rate for the Performance Period and will be determined in accordance with Section 1 of Appendix A. | |
For this purpose, “Market Capitalization Growth Rate” means the percentage growth in the Market Capitalization of the Company during the Performance Period determined by comparing the Market Capitalization of the Company as of the day immediately preceding the commencement of the Performance Period with the Market Capitalization of the Company as of the last day of the Performance Period. | ||
For this purpose, “QQQQ Growth Rate” means, as to the Performance Period, the total return (change in share price plus reinvestment of any dividends) of a share of Nasdaq-100 Index Tracking Stock issued by |
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the PowerShares QQQ Trust, Series 1 (or any successor fund), denominated as a percentage. For purposes of the preceding sentence, the “change in share price” will be determined by comparing the 10-day trading average of Nasdaq-100 Index Tracking Stock as of the day immediately preceding the commencement of the Performance Period with the 10-day trading average of Nasdaq-100 Index Tracking Stock as of the last day of the Performance Period. For this purpose, the “10-day trading average of Nasdaq-100 Index Tracking Stock” will mean the average closing sales price of one share of Nasdaq-100 Index Tracking Stock for the 10 most recent trading days ending on, and including, the relevant date, as reported on the established stock exchange or national market system on which Nasdaq-100 Index Tracking Stock is listed. | ||
For additional definitions of terms used in this Agreement, please see Section 1(c) of Appendix A. | ||
The Grantee will vest on the date the Administrator determines the number of Restricted Stock Units earned in accordance with the Performance Matrix and Section 1 of Appendix A (the “Vesting Date”), provided that such determination will be made within 30 days after the end of the Performance Period. Except as otherwise provided in Appendix A, the Grantee will not vest in the Restricted Stock Units unless he or she remains a Service Provider through the Vesting Date. |
Your signature below indicates your agreement and understanding that this award is subject to
all of the terms and conditions contained in Appendix A, Appendix B, if any, and the Plan. For
example, important additional information on vesting and forfeiture of the Restricted Stock Units
is contained in Sections 3 through 5 and Section 7 of Appendix A. PLEASE BE SURE TO READ ALL OF
APPENDIX A, APPENDIX B, IF ANY, AND THE PLAN, WHICH CONTAIN THE SPECIFIC TERMS AND CONDITIONS OF
THIS AWARD.
BROCADE COMMUNICATIONS SYSTEMS, INC.
|
GRANTEE | |||
Signature
|
Signature | |||
Print Name
|
Print Name | |||
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APPENDIX A
TERMS AND CONDITIONS OF PERFORMANCE-BASED RESTRICTED STOCK UNITS
Unless otherwise defined herein, capitalized terms used herein shall have the meanings
ascribed to them in the Plan.
(a) The Company hereby grants to the Grantee under the Plan an award of Restricted Stock
Units, subject to all of the terms and conditions in this Agreement, Appendix B, if any, and the
Plan. For each Restricted Stock Unit that vests, the Grantee will be entitled to receive one (1)
Share (subject to automatic adjustment for stock splits, combinations and the like pursuant to
Section 14 of the Plan).
(b) The number of Restricted Stock Units in which the Grantee may vest will depend upon the
Company’s Market Capitalization Growth Rate as compared to the QQQQ Growth Rate for the Performance
Period and will be determined following the end of the Performance Period as follows:
(i) The QQQQ Growth Rate for the Performance Period will be compared to the Company’s Market
Capitalization Growth Rate for the Performance Period;
(ii) If the QQQQ Growth Rate for the Performance Period equals or exceeds the Company’s Market
Capitalization Growth Rate for the Performance Period, this Restricted Stock Unit award will
immediately terminate and the Restricted Stock Units granted hereunder will be forfeited and
automatically transferred to and reacquired by the Company at no cost to the Company;
(iii) To the extent the Company’s Market Capitalization Growth Rate for the Performance Period
exceeds the QQQQ Growth Rate for the Performance Period (the “Excess Growth Rate”), the Company’s
Market Capitalization as of the day immediately preceding the commencement of the Performance
Period will be multiplied by the Excess Growth Rate. For the avoidance of doubt, if both rates are
negative, the Company’s Market Capitalization Growth Rate will exceed the QQQQ Growth Rate for
purposes of the previous sentence to the extent that the Company’s Market Capitalization Growth
Rate is a larger number than the QQQQ Growth Rate, and the Excess Growth Rate will be the
difference between the two rates. For example, if the Company’s Market Capitalization Growth Rate
is -10% and the QQQQ Growth Rate is -20%, the Company’s Market Capitalization Growth Rate is higher
than the QQQQ Growth Rate, and the Excess Growth Rate is 10%. The resulting dollar value (rounded
down to the nearest whole dollar) will be referred to herein as the “Market Capitalization Gain”;
(iv) The Market Capitalization Gain will be multiplied by the Pool Percentage set forth on the
Notice of Grant. The resulting dollar value (rounded down to the nearest whole dollar) will be
referred to herein as the “Restricted Stock Unit Pool”;
(v) The Restricted Stock Unit Pool will be multiplied by the Grantee Percentage of Restricted
Stock Unit Pool set forth on the Notice of Grant and rounded down to the nearest whole dollar; and
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(vi) The dollar value determined in accordance with Section 1(b)(v) above will be divided by
the 10-Day Trading Average of the Company’s Common Stock as of the last day of the Performance
Period (rounded down to the nearest whole number), resulting in a preliminary number of Restricted
Stock Units.
The number of Restricted Stock Units in which the Grantee may vest in accordance with the
Vesting Schedule set forth on the Notice of Grant will be the lesser of (A) the preliminary number
of Restricted Stock Units determined in accordance with Section 1(b)(vi) above or (B) the Maximum
Number of Restricted Stock Units; provided, however, that the Administrator, in its sole
discretion, may, within 30 days after the end of the Performance Period, eliminate or reduce the
number of Restricted Stock Units determined in accordance with this Section 1. For the avoidance
of doubt, once the number of Restricted Stock Units have been determined in accordance with the
preceding sentence, the Grantee will vest in such number of Restricted Stock Units in accordance
with the Vesting Schedule and the Administrator may not further eliminate or reduce such number of
Restricted Stock Units. In any event, the Administrator shall not be entitled to eliminate or
reduce the number of Restricted Stock Units determined in accordance with this Section 1 following
a Change of Control.
Example for illustration purposes only:
A | Market Capitalization as of the day immediately
preceding the commencement of the Performance
Period
|
$4,118,055,000 | ||
B | Pool Percentage
|
2% | ||
C | Grantee Percentage of Restricted Stock Unit Pool
|
5% | ||
D | Market Capitalization Growth Rate for the Performance Period |
20% | ||
E | QQQQ Growth Rate for the Performance Period
|
10% | ||
F | Excess Growth Rate (D – E)
|
10% | ||
G | Market Capitalization Gain determined by
multiplying the Market Capitalization as of the
day immediately preceding the commencement of
the Performance Period by the Excess Growth
Rate (A x F)
|
$ 411,805,500 | ||
H | Restricted Stock Unit Pool determined by
multiplying the Market Capitalization Gain by
the Pool Percentage (B x G)
|
$ 8,236,110 | ||
I | Dollar value of the Grantee’s award determined
by multiplying the Restricted Stock Unit Pool
by the Grantee’s Percentage of Restricted Stock
Unit Pool (C x H)
|
$ 411,805 | ||
J | 10-Day Trading Average of the Company’s Common
Stock as of the last day of the Performance
Period
|
$ 11.72 | ||
K | Number of Restricted Stock Units in which the
Grantee may vest, subject to the
Administrator’s discretion to eliminate or
reduce this number (I ÷ J)
|
35,136 |
(c) Definitions.
(i) “Market Capitalization” will mean, as of any date, the value equal to
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the 10-Day Trading Average of the Company’s Common Stock multiplied by the number of Shares
outstanding as of market close on such date. Market Capitalization will be appropriately
adjusted by the Administrator for the effects of any stock acquisitions, other than acquisitions of
private companies with a purchase price equal to or less than $100 million, made during the
Performance Period by subtracting (A) the Company’s purchase price for the acquired company as of
the date of the initial, public announcement by the Company of the entry into a definitive
agreement by and between the acquired company and the Company (the “Press Release”), from (B) the
Market Capitalization of the Company as of the end of the Performance Period. For purposes of the
preceding sentence, the “Company’s purchase price” will mean the estimated value of the total
consideration to be paid by the Company to the acquired company’s stockholders (in their capacity
as stockholders), as set forth in the Company’s Press Release, less any cash consideration. If the
Company’s Press Release does not set forth the estimated value of the consideration to be paid by
the Company to the acquired company’s stockholders, the “Company’s purchase price” will mean the
value, as of the date of the Press Release, equal to the product of (i) the actual number of shares
of the Company’s Common Stock issued in exchange for the shares of the acquired company’s stock
multiplied by (ii) the Fair Market Value of the Company’s Common Stock as of the market close on
the last market trading day immediately prior to the date of the Press Release.
(ii) “10-Day Trading Average of the Company’s Common Stock” will mean the average closing
sales price of one share of the Company’s Common Stock for the 10 most recent trading days ending
on, and including, the relevant date, as reported on the established stock exchange or national
market system on which the Company’s Common Stock is listed (or, in the absence of an established
market, as determined in good faith by the Administrator).
(d) When Shares are paid to the Grantee in payment for the Restricted Stock Units, par value
will be deemed paid by the Grantee for each Restricted Stock Unit by past services rendered by the
Grantee, and will be subject to the appropriate tax withholdings.
(a) Vesting upon Leave of Absence. In the event that the Grantee takes an authorized leave of
absence (“LOA”), the Restricted Stock Units awarded by this Agreement that are eligible to be
earned shall either: (i) not be affected, or (ii) be deferred for a period of time equal to the
duration of such LOA, based on the Company’s LOA policy in effect at such time as determined by the
Company in its sole discretion.
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(b) Death or Disability of Grantee. In the event that the Grantee’s relationship with the
Company as a Service Provider is terminated during the Performance Period due to his or her death
or Disability, the vesting of the Restricted Stock Units subject to this Restricted Stock Unit
award shall be forfeited on the date of the Grantee’s death or Disability.
(c) Change of Control. In the event of a Change of Control (as defined below) during the
Performance Period, the Performance Period shall be deemed to end immediately prior to the date of
the Press Release for purposes of determining the Company’s Market Capitalization Growth Rate and
the QQQQ Growth Rate and the number of Restricted Stock Units in which the Grantee will be entitled
to vest will be determined by the Administrator (as in existence prior to the Change in Control) in
accordance with the Performance Matrix and Section 1 of this Appendix A. The Grantee shall vest in
the number of Restricted Stock Units determined based on the preceding sentence immediately prior
to and contingent upon the Change of Control (the “New Vesting Date”) (unless vested earlier in
accordance with the terms of this Award, Section 14(c) of the Plan or any employment or change of
control agreement by and between the Company and the Grantee and provided that the Grantee remains
a Service Provider through the New Vesting Date or as otherwise set forth in this Agreement). In
accordance with Section 1 of this Appendix A, the Administrator shall not be entitled to eliminate
or reduce the number of Restricted Stock Units determined in accordance with Section 1 of Appendix
A following a Change of Control.
(d) Definition of Change of Control. For purposes of this Agreement, “Change of Control”
shall mean the occurrence of any of the following events:
(1) the consummation by the Company of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) more than fifty
percent (50%) of the total voting power represented by the voting securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation;
(2) the consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets;
(3) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing 50% or more of the total voting
power represented by the Company’s then outstanding voting securities; or
(4) a change in the composition of the Board, as a result of which fewer than a majority of
the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A)
are directors of the Company as of the date hereof, or (B) are elected, or nominated for election,
to the Board with the affirmative votes of at least a majority of those directors whose election or
nomination was not in connection with any transactions described in subsections (i), (ii), or (iii)
or in connection with an actual or threatened proxy contest relating to the election of directors
of the Company.
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discretion, accelerates the vesting of the balance, or some lesser portion of the balance, of
the Restricted Stock Units, the payment of such accelerated Restricted Stock Units nevertheless
shall be made at the same time or times as if such Restricted Stock Units had vested in accordance
with the Vesting Schedule set forth on the Notice of Grant or as otherwise provided herein (whether
or not the Grantee remains employed by the Company or by one of its Subsidiaries as of such
date(s)), unless an earlier payment date, in the judgment of the Administrator, would not cause the
Grantee to incur an additional tax under Section 409A of the U.S. Internal Revenue Code of 1986, as
amended, and any proposed, temporary or final Treasury Regulations and Internal Revenue Service
guidance thereunder (“Section 409A”).
9. [Reserved.]
(a) General. Regardless of any action the Company and/or the Grantee’s employer (the
“Employer”) take with respect to any or all income tax (including U.S. federal, state,
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local and/or non-U.S. taxes), social insurance, payroll tax, payment on account or other
tax-related withholdings (“Tax-Related Items”), the Grantee acknowledges that the ultimate
liability for all Tax-Related Items legally due by the Grantee is and remains the Grantee’s
responsibility and that the Company and/or the Employer (i) make no guarantees or undertakings
regarding the treatment of any Tax-Related Items in connection with any aspect of the award,
including the grant of the Restricted Stock Units, the vesting of the Restricted Stock Units, the
delivery of Shares, the subsequent sale of any Shares received at vesting and the receipt of any
dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the award to
reduce or eliminate the Grantee’s liability for Tax-Related Items.
(b) Payment of Tax-Related Items. The Grantee authorizes the Company and/or the Employer, at
its discretion, to satisfy the obligations with regard to all Tax-Related Items by withholding a
portion of the Shares issued as payment for vested Restricted Stock Units that have an aggregate
market value sufficient to pay all Tax-Related Items required to be withheld by the Company and/or
the Employer with respect to the vesting of the Restricted Stock Units and issuance of the Shares,
unless the Company, in its sole discretion, either requires or otherwise permits the Grantee to
make alternate arrangements satisfactory to the Company for such withholdings in advance of the
arising of any withholding obligations. The number of Shares withheld pursuant to the prior
sentence will be rounded up to the nearest whole Share, with no refund for any value of the Shares
withheld in excess of the tax obligation as a result of such rounding.
If the obligation of Tax-Related Items is satisfied by reducing the number of Shares delivered
as described herein, the Grantee is deemed to have been issued the full number of Shares subject to
the award of Restricted Stock Units, notwithstanding that a number of the Shares are held back
solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the award.
If the foregoing method of withholding is prohibited or insufficient to satisfy all
Tax-Related Items required to be withheld by the Company and/or the Employer with respect to the
vesting of the Restricted Stock Units and issuance of the Shares or if the Company, in its
discretion, determines not to apply the foregoing method of withholding, then the Grantee hereby
authorizes the Company and/or the Employer to satisfy such obligations by one or a combination of
the following: (i) withholding from the Grantee’s wages or other cash compensation paid to the
Grantee by the Company and/or the Employer, to the maximum extent permitted by law; or (ii) selling
the applicable number of Shares or arranging for the sale of the applicable number of Shares (in
either case on the Grantee’s behalf and at the Grantee’s discretion pursuant to this authorization)
issued in settlement of vested Restricted Stock Units and retaining the requisite proceeds from
such sale.
Finally, the Grantee shall pay to the Company and/or the Employer any amount of Tax-Related
Items that the Company and/or the Employer may be required to withhold as a result of the Grantee’s
participation in the Plan that cannot be satisfied by the means previously described. The Company
may refuse to deliver to the Grantee any Shares pursuant to the award if the Grantee fails to
comply with the Grantee’s obligations in connection with the Tax-Related Items, as described in
this Section 10.
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brokerage account). After such issuance, recordation and delivery, the Grantee will have all
the rights of a stockholder of the Company with respect to voting such Shares and receipt of
dividends and distributions on such Shares.
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absolute discretion, determine to be necessary or advisable; and (d) the lapse of such
reasonable period of time following the Vesting Date of the Restricted Stock Units as the
Administrator may establish from time to time for reasons of administrative convenience.
18 Plan Governs. This Agreement and Appendix B, if any, are subject to all the terms
and provisions of the Plan. In the event of a conflict between one or more provisions of this
Agreement or Appendix B, if any, and one or more provisions of the Plan, the provisions of the Plan
will govern.
(a) the Plan is established voluntarily by the Company;
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(b) the award of Restricted Stock Units is voluntary and occasional and does not create any
contractual or other right to receive future awards of Restricted Stock Units, or benefits in lieu
of Restricted Stock Units even if Restricted Stock Units have been awarded repeatedly in the past;
(c) all decisions with respect to future awards, if any, will be at the sole discretion of the
Company;
(d) the Grantee’s participation in the Plan is voluntary;
(e) the award is an extraordinary item that is outside the scope of the Grantee’s employment
or service contract, if any;
(f) the award is not part of normal or expected compensation or salary for any purposes,
including, but not limited to, calculation of any severance, resignation, termination, redundancy,
end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or
similar payments;
(g) in the event that the Grantee is not an employee of the Company, the award will not be
interpreted to form an employment or service contract or relationship with the Company; and,
furthermore, the award will not be interpreted to form an employment or service contract or
relationship with the Employer or any Parent or other successor or a Subsidiary of the Company;
(h) the future value of the underlying Shares is unknown and cannot be predicted with
certainty;
(i) the Company is not providing any tax, legal, or financial advice, nor is the Company
making any recommendations regarding the Grantee’s participation in the Plan or the acquisition or
sale of Shares; and
(j) the Grantee is hereby advised to consult with the Grantee’s own personal tax, legal and
financial advisors regarding the Grantee’s participation in the Plan before taking any action
related to the Plan.
The Grantee understands that the Company and the Employer may hold certain personal
information about the Grantee, including, but not limited to, the Grantee’s name, home address and
telephone number, date of birth, social insurance or other identification number, salary,
nationality, job title, any Shares or directorships held in the Company, details of all Restricted
Stock Units or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding
in the Grantee’s favor, for the exclusive purpose of implementing, administering and managing the
Plan (“Data”).
The Grantee understands that Data will be transferred to E*Trade or such other stock plan
service provider as may be selected by the Company in the future, which is assisting the Company
with the implementation, administration and management of the Plan. The Grantee
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understands the recipients of Data may be located in the Grantee’s country, in the United
States or elsewhere, and that the recipients’ country may have different data privacy laws and
protections than the Grantee’s country. The Grantee understands that the Grantee may request a
list with the names and addresses of any potential recipients of the Data by contacting the
Grantee’s local human resources representative. The Grantee authorizes the Company, E*Trade and
any other potential recipients which may assist the Company (presently or in the future) with
implementing, administering and managing the Plan to receive, possess, use, retain and transfer the
Data, in electronic or other form, for the sole purpose of implementing, administering and managing
the Grantee’s participation in the Plan. The Grantee understands that he or she may, at any time,
view the Data, request additional information about the storage and processing of the Data, require
any necessary amendments to the Data or refuse or withdraw the consents herein, in any case without
cost, by contacting in writing the Grantee’s local human resources representative. The Grantee
understands, however, that refusing or withdrawing consent may affect the Grantee’s ability to
participate in the Plan. For more information on the consequences of the Grantee’s refusal to
consent or withdrawal of consent, the Grantee understands that he or she may contact his or her
local human resources representative.
26. Notice of Governing Law. This award of Restricted Stock Units shall be governed
by, and construed in accordance with, the laws of the State of California, without regard to
principles of conflict of laws.
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XXXXXXXX X
XXXXXXXX X
TO TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
SPECIAL PROVISIONS FOR GRANTEES OUTSIDE THE UNITED STATES
TO TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
SPECIAL PROVISIONS FOR GRANTEES OUTSIDE THE UNITED STATES
This Appendix B, which is part of the Agreement, includes additional terms and conditions of
the award of Restricted Stock Units that will apply to Grantees in the countries listed below.
Please note that the exchange control information provided below is current as of April 2007.
However, exchange controls are subject to change and the Grantee should consult his or her personal
advisor(s) with respect to the applicable exchange controls (if any) which may apply to the vesting
of the Restricted Stock Units, acquisition and/or sale of the Shares. Capitalized terms used but
not defined herein shall have the same meanings assigned to them in the Plan, the Agreement and the
Notice of Grant.
Australia
No special provisions.
Austria
The Grantee acknowledges that he or she may be entitled to revoke the Agreement on the basis
of the Austrian Consumer Protection Act according the following rules:
(i) | If the Grantee receives the award of Restricted Stock Units under the Plan outside the business premises of the Company, the Grantee may be entitled to revoke his or her acceptance of the Agreement. The revocation must be made within one week after the Grantee has signed the Notice of Grant. | ||
(ii) | The revocation must be in written form to be valid. It is sufficient if the Grantee returns the Agreement to the Company or the Company’s representative with language that can be understood as his or her refusal to conclude or honor the Agreement. It is sufficient if the revocation is sent within the period discussed above. |
Belgium
The Grantee is required to report any taxable income attributable to the award of Restricted
Stock Units on his or her annual tax return. In addition, the Grantee is required to report any
bank accounts opened and maintained outside Belgium on his or her annual tax return.
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APPENDIX B
Brazil
Intent to Comply with Law
By accepting this award of Restricted Stock Units, the Grantee acknowledges that he or she
agrees to comply with applicable Brazilian laws and pay any and all applicable taxes associated
with the vesting of the Restricted Stock Units and the sale of Shares.
A Grantee resident or domiciled in Brazil will be required to submit annually a declaration of
assets and rights held outside of Brazil to the Central Bank of Brazil if the aggregate value of
such assets and rights is equal to or greater than US$100,000. Assets and rights that must be
reported include Shares of Company stock.
Canada
The parties acknowledge that it is their express wish that the Agreement, as well as all
documents, notices and legal proceedings entered into, given or instituted pursuant hereto or
relating directly or indirectly hereto, be drawn up in English.
Les parties reconnaissent avoir exigé la rédaction en anglais de cette convention, ainsi que
de tous documents exécutés, xxxx xxxxxx et procédures judiciaries intentées, directement ou
indirectement, relativement à ou suite à la présente convention.
The Grantee is permitted to sell Shares acquired in settlement of the Restricted Stock Units
through the designated broker appointed under the Plan provided the resale of Shares acquired in
settlement of the Restricted Stock Units takes place outside of Canada through facilities of a
stock exchange on which the Shares are listed. The Shares are currently listed on the Nasdaq
Global Select market in the United States.
China
Exchange control approval/reporting requirements may apply when the Grantee sells Shares and
repatriates the proceeds to China. As a result, the Grantee should consult with his/her personal
advisor as to the process for repatriating the proceeds to China.
Germany
No special provisions.
2
APPENDIX B
Hong Kong
Restricted Stock Units Payable Only in Shares
Restricted Stock Units awarded to Grantees in Hong Kong shall be paid in Shares only. In no
event shall any of such Restricted Stock Units be paid in cash, notwithstanding any discretion
contained in the Plan or any provisions in the Agreement to the contrary.
This offer of Restricted Stock Units and the Shares subject to the Restricted Stock Units is
not a public offer of securities and is available only for employees of the Company or any parent
or Subsidiary participating in the Plan. The contents of this Appendix B, the Agreement and the
Plan have not been reviewed by any regulatory authority in Hong Kong. The Grantee is advised to
exercise caution in relation to this offer of Restricted Stock Units. If the Grantee has any doubt
as to the contents of this Appendix B, the Agreement or the Plan, the Grantee should obtain
independent professional advice.
Israel
Data Privacy Consent
Grantee’s right to protect his or her personal data in connection with the Plan might be
restricted under certain circumstances. Specifically, the Company or the Company’s Israeli
Subsidiary may be required to disclose to the Israeli tax authorities information on grants,
vesting and sales under the Plan.
Italy
By accepting the award of Restricted Stock Units, the Grantee acknowledges that he or she has
received a copy of the Plan, has review the Plan and the Agreement in their entirety and fully
understands and accepts all provisions of the Plan and the Agreement.
The Grantee further acknowledges that he or she has read and specifically and expressly
approves the following clauses in the Agreement: Paragraph 9: Withholding of Taxes; Paragraph 13:
Grant is Not Transferable; Paragraph 23: Labor Law and Nature of Grant; Paragraph 25: Notice of
Governing Law; and the Data Privacy Consent below.
Notwithstanding Paragraph 24 or any other provision of the Agreement, Grantee agrees that the
following shall apply with regard to data privacy in Italy:
Grantee hereby explicitly and unambiguously consents to the collection, use, processing and
transfer, in electronic or other form, of personal data as described in this section of
Appendix B by and among, as applicable, the Employer and the Company and any
3
APPENDIX B
of its Subsidiaries for the exclusive purpose of implementing, administering and managing
Grantee’s participation in the Plan.
Grantee understands that the Employer, the Company and any of its Subsidiaries may hold
certain personal information about Grantee, including, Grantee’s name, home address and telephone
number, date of birth, social insurance number or other identification number, salary, nationality,
job title, any Shares or directorships held in the Company, details of the award of Restricted
Stock Units or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or
outstanding in Grantee’s favor, for the exclusive purpose of managing and administering the Plan
(“Data”).
Grantee understands that Data processing related to the purposes specified above shall take
place under automated or non-automated conditions, anonymously when possible, that comply with the
purposes for which Data are collected and with confidentiality and security provisions as set forth
by applicable laws and regulations, with specific reference to Legislative Decree no. 196/2003.
The processing activity, including communication, the transfer of Grantee’s Data abroad,
including outside of the European Union, as herein specified and pursuant to applicable laws and
regulations, does not require Grantee’s consent thereto as the processing is necessary to
performance of contractual obligations related to implementation, administration and management of
the Plan. Grantee understands that, pursuant to Section 7
4
APPENDIX B
of the Legislative Decree no. 196/2003, Grantee has the right to, including but not limited
to, access, delete, update, ask for rectification of Grantee’s Data and estop, for legitimate
reason, the Data processing. Furthermore, Grantee is aware that Grantee’s Data will not be used
for direct marketing purposes. In addition, the Data provided can be reviewed and questions or
complaints can be addressed by contacting Grantee’s local human resources department.
Japan
No special provisions.
Korea
Exchange Control Information
If Grantee realizes US$500,000 or more from the sale of Shares acquired in settlement of the
Restricted Stock Units, Grantee will be required to repatriate the sale proceeds back to Korea
within 18 months of sale.
Mexico
Policy Statement. La invitación que la Compañía hace en relación con el Plan es unilateral y
discrecional, por lo tanto, la Compañía se reserva el derecho absoluto para modificar o terminar el
mismo en cualquier momento, sin ninguna responsabilidad para el Opcionante. Esta invitación y, en
el caso del Opcionante, la adquisición de acciones, de ninguna manera establecen relación laboral
alguna entre el Opcionante y la Compañía. Tampoco establece derecho alguno entre el Opcionante y
su empleador.
Netherlands
The Grantee has been granted Restricted Stock Units under the Plan, pursuant to which the
Grantee may acquire shares of the Company’s Shares. Grantees that are residents of the Netherlands
should be aware of the Dutch xxxxxxx xxxxxxx rules, which may impact the sale of Shares issued upon
vesting of the Restricted Stock Units. In particular, the Grantee may be prohibited from effecting
certain Share transactions if he or she has insider information regarding the Company.
Below is a discussion of the applicable restrictions. The Grantee is advised to read the
discussion carefully to determine whether the insider rules could apply to him or her. If it is
uncertain whether the insider rules apply, we recommend that the Grantee consults with his or
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APPENDIX B
her legal advisor. Please note that the Company cannot be held liable if a Grantee violates
the Dutch insider rules. The Grantee is responsible for ensuring his or her compliance with these
rules.
By entering into the Agreement and participating in the Plan, the Grantee acknowledges having
read and understood the Notification and acknowledges that it is his or her responsibility to
comply with the Dutch xxxxxxx xxxxxxx rules, as discussed herein.
Prohibition Against Xxxxxxx Xxxxxxx
Dutch securities laws prohibit xxxxxxx xxxxxxx. Under Article 46 of the Act on the
Supervision of the Securities Trade 1995, anyone who has “inside information” related to the
Company is prohibited from effectuating a transaction in securities in or from the Netherlands.
“Inside information” is knowledge of a detail concerning the issuer to which the securities relate
that is not public and which, if published, would reasonably be expected to affect the stock price,
regardless of the development of the price. The insider could be any employee of the Company or
its Dutch Subsidiary who has inside information as described above.
Given the broad scope of the definition of inside information, certain employees of the
Company working at its Dutch Subsidiary may have inside information and thus, would be prohibited
from effectuating a transaction in securities in the Netherlands at a time when he or she had such
inside information.
Singapore
The grant of the award of Restricted Stock Units under the Plan is being made on a private
basis and is, therefore, exempt from registration in Singapore.
If the Grantee is a director, associate director or shadow director of a Singapore Subsidiary
or affiliate of the Company, the Grantee is subject to certain notification requirements under the
Singapore Companies Act. Among these requirements is an obligation to notify the Singapore
Subsidiary or affiliate in writing when the Grantee receives an interest (e.g., Restricted Stock
Units, Shares) in the Company or any related companies. Please contact the Company to obtain a
copy of the notification form. In addition, the Grantee must notify the Singapore Subsidiary or
affiliate when the Grantee sells Shares of the Company or any related company (including when the
Grantee sells Shares acquired pursuant to this award). These notifications must be made within two
days of acquiring or disposing of any interest in the Company or any related company. In addition,
a notification must be made of the Grantee’s interests in the Company or any related company within
two days of becoming a director.
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APPENDIX B
Spain
Labor Law Acknowledgement
In accepting the Restricted Stock Unit award, the Grantee acknowledges that he or she consents
to participation in the Plan and has received a copy of the Plan and the Agreement. The Grantee
understands that the Company has unilaterally, gratuitously and discretionally decided to grant
Restricted Stock Units under the Plan to individuals who may be employees of the Company or its
Subsidiaries or affiliates throughout the world. The decision is a limited decision that is
entered into upon the express assumption and condition that the grant will not bind the Company or
any of its Subsidiaries or affiliates. Consequently, the Grantee understands that the Restricted
Stock Units are granted on the assumption and condition that the Restricted Stock Units or the
Shares acquired pursuant to the award shall not become a part of any employment contract (either
with the Company or any of its Subsidiaries) and shall not be considered a mandatory benefit,
salary for any purposes (including severance compensation) or any other right whatsoever. In
addition, the Grantee understands that this award would not be made to the Grantee but for the
assumptions and conditions referred to above; thus, the Grantee acknowledges and freely accepts
that should any or all of the assumptions be mistaken or should any of the conditions not be met
for any reason, then any grant of Restricted Stock Units shall be null and void.
To participate in the Plan, the Grantee must comply with exchange control regulations in
Spain. The acquisition of Shares under the Plan must be declared for statistical purposes to the
Spanish Dirección General de Política Comercial e Inversiones Exteriores (the “DGPCIE”), the Bureau
for Commercial Policy and Foreign Investments, which is a department of the Ministry of the
Economy. The Grantee must make the declaration himself or herself by filing a form with the
DGPCIE. When receiving foreign currency payments derived from the ownership of Shares (i.e.,
dividends or sale proceeds), the Grantee must inform the financial institution receiving the
payment of the basis upon which such payment is made. The Grantee will need to provide the
institution with the following information: (i) the Grantee’s name, address, and fiscal
identification number; (ii) the name and corporate domicile of the Company; (iii) the amount of the
payment; (iv) the currency used; (v) the country of origin; (vi) the reasons for the payment; and
(vii) further information that may be required. If the Grantee acquires Shares under the Plan and
wishes to import the ownership title of such Shares (i.e., share certificates) into Spain, the
Grantee must declare the importation of such securities to the DGPCIE.
The grant of Restricted Stock Units and the Shares issued pursuant to the award are considered
a private placement outside of the scope of Spanish laws on public offerings and issuances.
Switzerland
No special provisions.
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APPENDIX B
Taiwan
No special provisions.
UAE
No special provisions.
* * * * *
8