exv10w13



 






EXHIBIT 10.13




IMATION CORP.




DIRECTORS COMPENSATION PROGRAM

EFFECTIVE MAY 4, 2005




SECTION 1. PURPOSE




     (a) The purpose of the Program is to attract and retain well-qualified persons for service as
nonemployee directors of the Company and to promote identity of interest between directors and
stockholders of the Company. The Program is designed and intended to comply with Rule 16b-3 under
the Securities Exchange Act of 1934, as amended, as such Rule may be amended from time to time, and
shall be interpreted in a manner consistent with the requirements thereof, as now or hereafter
construed, interpreted and applied by regulations, rulings and cases.



     (b) The Program is also intended to comply in form and operation with Section 409A of the
Internal Revenue Code.



SECTION 2. DEFINITIONS




          The following words and phrases have the meaning indicated below, unless the context clearly
indicates otherwise.




     (a) “Accounting Date” means the first business day following the annual meeting of
stockholders of the Company.



     (b) “Basic Fee” means the annual retainer payable to an Eligible Director at the annual rate
in effect on the Accounting Date for such Eligible Director’s services on the Board (exclusive of
any Chairperson Fee, Lead Director Fee or Meeting Fees.)



     (c) “Board” means the Board of Directors of the Company.



     (d) “Chairperson Fee” means the annual retainer payable to an Eligible Director at the annual
rate in effect on the Accounting Date for such Eligible Director’s services as the chairperson of
any committee of the Board.



     (e) “Change in Control” has the meaning given it in Section 8(b) to the extent it is
consistent with and satisfies the definition of “Change of Control” under Code section 409A.



     (f) “Change in Control Price” of the Common Stock shall equal the higher of (i) if applicable,
the price paid for the Common Stock in the transaction constituting a Change in Control and (ii)
the Fair Market Value of the Common Stock as of the last trading day preceding the date of the
Change in Control.



 









 





     (g) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations
or binding rules promulgated thereunder.



     (h) “Committee” means the Compensation Committee of the Board.



     (i) “Common Stock” means the common stock, par value $.01 per share, of the Company.



     (j) “Company” means Imation Corp.



     (k) “Dividend Equivalent Credit” has the meaning given it in Section 7(b).



     (l) “Election Form” means the Election Form attached as Exhibit B hereto or such other form as
may be deemed acceptable by the Secretary of the Company from time to time.



     (m) “Eligible Director” means each member of the Board who is not at the time of reference an
employee of the Company or any of its subsidiaries.



     (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended.



     (o) “Fair Market Value” as of any date means, the fair market value as defined under the Stock
Plan.



     (p) “Lead Director Fee” means the annual retainer payable to the Eligible Director who is
selected to be the lead director at the annual rate in effect on the Accounting Date for such
Eligible Director’s services as the lead director.



     (q) “Meeting Fees” means the amounts payable to an Eligible Director in arrears on any
Quarterly Payment Date for attendance at meetings or participation in teleconferences of the Board
or any committee of the Board (exclusive of any Basic Fee, Chairperson Fee or Lead Director Fee).



     (r) “Program” means the Company’s Directors Compensation Program, as amended from time to
time.



     (s) “Proration Fraction” means a fraction, the numerator of which is the number of days from
the date an Eligible Director first becomes an Eligible Director to the date of the next succeeding
annual meeting of stockholders and the denominator of which is 365.



     (t) “Quarterly Payment Date” means the date established by the Company from time to time for
payment, in arrears, of all Meeting Fees earned by Eligible Directors during the preceding calendar
quarter, provided such date shall not be later than two and one-half (21/2) months from the end of
such calendar quarter.



     (u) “Restricted Stock Unit” means a right to receive payment of one share of Common Stock in
accordance with the conditions set forth in Section 7 hereof or conditions established by the
Committee.



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     (v) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as such Rule may be amended from
time to time.



     (w) “Stock Plan” means the then current stock incentive plan of the Company used to grant
stock based awards to Eligible Directors.



SECTION 3. ADMINISTRATION




     (a) The Program shall be administered by the Committee.



     (b) In administering the Program, it will be necessary to follow various laws and regulations.
It may be necessary from time to time to change or waive requirements of the Program to conform
with the law, to meet special circumstances not anticipated or covered in the Program, or to carry
on successful operation of the Program, and in connection therewith, the Committee shall have the
full power and authority to:




     (i) Prescribe, amend, and rescind rules and regulations relating to the Program,
establish procedures deemed appropriate for its administration, interpret the provisions of
the Program, remedy ambiguities, and make any and all other determinations not herein
specifically authorized which may be necessary or advisable for its effective
administration;




     (ii) Make any amendments to or modifications of the Program which may be required or
necessary to make the Program set forth herein comply with the provisions of any laws,
federal or state, or any regulations issued thereunder, and to cause the Company at its
expense to take any action related to the Program which may be required under such laws or
regulations;




     (iii) Contest on behalf of the Eligible Directors or the Company, at the sole
discretion of the Committee and at the expense of the Company, any ruling or decision on any
issue related to the Program, and conduct any such contest and any resulting litigation to a
final determination, ruling, or decision; and




     (iv) Grant stock-based awards under the Program, as provided in Section 5 hereof.



     (c) Unless otherwise expressly provided in the Program, all designations, determinations,
interpretations and other decisions under or with respect to the Program or any award shall be
within the sole discretion of the Committee, may be made at any time and shall be final, conclusive
and binding upon any Eligible Director or beneficiary, and any employee of the Company.



SECTION 4. FEES/EXPENSES




     (a) Each Eligible Director who is first elected to the Board at, or who continues to serve on
the Board immediately following an annual meeting of stockholders, is entitled to receive a Basic
Fee and a Chairperson Fee for serving as chairperson of a committee of the Board (as applicable).



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     (b) Any Eligible Director who is designated as the lead director is entitled to receive a Lead
Director Fee for services as the lead director.



     (c) Each Eligible Director who joins the Board or becomes a chairperson of a committee of the
Board or Lead Director after the annual meeting of stockholders is entitled to receive a Basic Fee,
Chairperson Fee or Lead Director Fee (as applicable) multiplied by the Proration Fraction, as of
the date such Eligible Director first becomes an Eligible Director, chairperson of a committee of
the Board or Lead Director.



     (d) Each Eligible Director is entitled to receive a Meeting Fee for attendance at a meeting of
the Board or a Committee of the Board or participation in a teleconference in lieu of such meeting.
The Meeting Fees are payable in arrears on the Quarterly Payment Date. Any member of the Board who
interviews a Board candidate shall be entitled to receive compensation in an amount equal to the
Meeting Fee for an in person Board meeting for each such interview.



     (e) The current rate of the Basic Fee, Chairperson Fee, Lead Director Fee and Meeting Fees are
set forth on the attached Exhibit A, and may be amended from time to time by the Board or any
committee given responsibility for determining Board of Director compensation.



     (f) Each Eligible Director is entitled to reimbursement for reasonable travel costs of
attending Board and committee meetings and interviews of Board candidates. Such reimbursement shall
be payable in cash after receipt of documentation by the Company from such Eligible Director.



SECTION 5. ANNUAL GRANT OF STOCK BASED AWARD




     (a) Each Eligible Director who is first elected to the Board at, or continues to serve on the
Board immediately following an annual meeting of stockholders shall be granted a stock based award
(i.e., options, restricted stock, etc.) as of the date of such meeting in type, proportion and
amount to be determined by the Committee and under, and in accordance with, the terms of the Stock
Plan.



     (b) Each Eligible Director who joins the Board after an annual meeting of stockholders, shall
be granted a stock based award pursuant to this Section 5 as of the date such Eligible Director
first becomes an Eligible Director based on the number of whole shares of Common Stock equal to the
number granted other Eligible Directors at the time of the immediately preceding annual meeting of
stockholders, multiplied by the Proration Fraction.



     (c) Terms and conditions of stock based awards (such as grant price, vesting schedule, etc.)
shall be as determined by the Committee and under, and in accordance with, the terms of the Stock
Plan.



     (d) The amount and composition of the current annual stock based award are set forth on the
attached Exhibit A, which may be amended from time to time by the Board or any committee given
responsibility for determining Board of Director compensation.



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SECTION 6. MATCHING GIFT PROGRAM




     Each Eligible Director is entitled to a matching gift from the Company of up to $15,000 per
calendar year to qualifying charitable institutions, prorated for any calendar year that Eligible
Director joins the Board. Each Eligible Director must submit evidence of such gift to the Company
and the Company will send the matching contribution directly to the qualifying charitable
institution on behalf of the Eligible Director.



SECTION 7. ELECTIONS TO RECEIVE COMMON STOCK OR RESTRICTED STOCK UNITS




     (a) Elections.




     (i) Common Stock. Each Eligible Director who is not covered by clause (iii)
below, may elect to receive, in lieu of a cash payment for his or her Basic Fee, Chairperson
Fee, Lead Director Fee and/or Meeting Fees (or a portion thereof, as elected by the Eligible
Director), a number of shares of Common Stock (excluding fractional shares, which shall be
paid in cash (or carried over to the next payment if an Eligible Director elects to be paid
all in Common Stock)), which is calculated by dividing his or her Basic Fee, Chairperson
Fee, Lead Director Fee and/or Meeting Fees (or a portion thereof), by the Fair Market Value
of one share of Common Stock on the Accounting Date or Quarterly Payment Date, as
applicable. To be effective, any such election shall be made by submitting a completed and
executed Election Form to the Secretary of the Company prior to the relevant Accounting Date
or Quarterly Payment Date, as applicable.




     (ii) Restricted Stock Units.




     (A) Each Eligible Director who is not covered by clause (iii) below, may elect
to receive, in lieu of cash payment for his or her Basic Fee, Chairperson Fee, Lead
Director Fee and/or Meeting Fees, Restricted Stock Units (including fractional
Restricted Stock Units) calculated by dividing his or her Basic Fee, Chairperson
Fee, Lead Director Fee and/or Meeting Fees (or a portion thereof, as elected by the
Eligible Director) for services to be performed in the following the calendar year
by the Fair Market Value of one share of Common Stock on the Accounting Date or
Quarterly Payment Date, as applicable. To be effective, any such election relating
to the Basic Fee, Chairperson Fee, Lead Director Fee or Meeting Fees shall be made
by submitting a completed and executed Election Form to the Secretary of the Company
prior to the calendar year in which the Eligible Director wishes the election to be
in effect and such election shall be irrevocable for such calendar year.




     (B) Each Eligible Director who is not covered by clause (iii) below may elect
to receive, in lieu of cash payment for his or her Meeting Fees (or a portion
thereof, as elected by the Eligible Director), Restricted Stock Units (including
fractional Restricted Stock Units) calculated by dividing his or her Meeting Fees
(or portion thereof) by the Fair Market Value of one share of



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Common Stock on the Quarterly Payment Date. To be effective, any such election
relating to the Meeting Fees shall be made by submitting a completed and executed
Election Form to the Secretary of the Company prior to the calendar year in which
the Eligible Director wishes the election to be in effect and such election shall be
irrevocable for such calendar year.



     (iii) New Directors. Each Eligible Director who joins the Board between annual
meetings of stockholders may elect prior to first becoming an Eligible Director to receive, in lieu
of cash payment for his or her Basic Fee, Chairperson Fee and/or Lead Director Fee, a number of
shares of Common Stock (excluding fractional shares, which shall be paid in cash (or carried over
to the next payment if an Eligible Director elects to be paid all in Common Stock)) and/or
Restricted Stock Units (including fractional Restricted Stock Units) up to the number which is
calculated by (A) multiplying the sum of his or her Basic Fee, Chairperson Fee, Lead Director Fee
(or a portion thereof, as elected by the Eligible Director) payable with respect to the time prior
to the next annual meeting of stockholders which the Eligible Director is first elected to the
Board by the Proration Fraction and (B) dividing the product resulting from clause (A) by the Fair
Market Value of one share of Common Stock on the date that the Eligible Director becomes an
Eligible Director. Each Eligible Director may also elect to receive, in lieu of cash payment for
his or her Meeting Fees (or a portion thereof, as elected by the Eligible Director), Common Stock
(excluding fractional shares, which shall be paid in cash (or carried over to the next payment if
an Eligible Director elects to be paid all in Common Stock)) Restricted Stock Units (including
fractional Restricted Stock Units) calculated by dividing his or her Meeting Fees (or portion
thereof) by the Fair Market Value of one share of Common Stock on the Quarterly Payment Date. To
be effective, any such election shall be made by submitting a completed and executed Election Form
to the Secretary of the Company prior to the date that the Eligible Director becomes an Director,
and such Election Form shall be irrevocable for that calendar year with respect to any election (or
lack of election) to receive Restricted Stock Units.



     (b) Restricted Stock Units.




     (i) Account. Upon the grant of Restricted Stock Units to an Eligible Director,
such units shall be credited to an account established for such Eligible Director. Each
Eligible Director shall receive an annual statement showing the number of Restricted Stock
Units that have been credited to the Eligible Director’s account under the Program.




     (ii) Dividend Equivalent Credits. An Eligible Director’s account shall be
credited with Dividend Equivalent Credits equivalent to the amount of dividends paid by the
Company to holders of outstanding shares of Common Stock based on the number of Restricted
Stock Units credited to the Eligible Director’s account on the dividend record date for
            shares of Common Stock. Such Dividend Equivalent Credit shall be converted into an
equivalent number of Restricted Stock Units (including fractional Restricted Stock Units)
based on the fair market value of one share of Common Stock on the related dividend payment
date and such Restricted Stock Units shall be subject to the same distribution timing as the
underlying Restricted Stock Units to which the Dividend Equivalent Credits related. If a
dividend is paid in cash, each Eligible Director shall be credited, as of each applicable
dividend payment date, in accordance with the following formula:



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(A X B) / C





          in which “A” equals the number of Restricted Stock Units held by the Eligible Director
on the dividend record date, “B” equals the cash dividend per share and “C” equals the Fair
Market Value per share of Common Stock on the dividend payment date. If a dividend is paid
in property other than cash, Dividend Equivalent Credits shall be credited, as of the
applicable dividend payment date, in accordance with the formula set forth above, except
that “B” shall equal the fair market value per share of the property that the Eligible
Director would have received in respect of the number of shares of Common Stock equal to the
number of Restricted Stock Units held by the Eligible Director as of the dividend record
date, had such shares been owned by the Eligible Director as of the record date for such
dividend.




     (iii) Time of Payment. All payments in respect of an Eligible Director’s
Restricted Stock Units shall be made as soon as practicable following the earlier of (A) the
Eligible Director’s death (B) the occurrence of a Change in Control, and (C) the specific
date the Eligible Director has elected to receive payment pursuant to the applicable
Election Form pursuant to which such Eligible Director elected to receive such Restricted
Stock Units in lieu of cash.




     (iv) Form of Payment. Payment in respect of Restricted Stock Units shall be
made in one lump sum payment in the form of shares of Common Stock. For purposes of the
preceding sentence, any payment made upon the occurrence of a Change in Control in full or
partial payment of Restricted Stock Units shall be made in cash in an amount equal the
Change in Control Price multiplied by the number of Restricted Stock Units (including
fractional units).



     (c) Stock Plan.



     All shares of Common Stock and all Restricted Stock Units awarded pursuant to this Section 7
shall be awarded under, and in accordance with, the terms of the Stock Plan. Restricted Stock
Units awarded hereunder shall be considered Other Stock-Based Awards under the Plan.



SECTION 8. CHANGE IN CONTROL




     (a) For purposes of this Section 8, the following words and phrases have the meanings
indicated below, unless the context clearly indicates otherwise:




     (i) “Person” shall have the meaning associated with that term as it is used in Sections
13(d) and 14(d) of the Act.




     (ii) “Affiliates and Associates” shall have the meanings assigned to such terms in Rule
12b-2 promulgated under Section 12 of the Act.




     (iii) “Act” shall mean the Securities Exchange Act of 1934.



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     (iv) “Continuing Directors” means directors whose appointment or election is endorsed
by a majority of the members of the Company’s Board prior to the date of the appointment or
election of such member.



     (b) For purposes of the Program, a Change in Control of the Company shall be deemed to have
occurred if:




     (i) any Person (together with its Affiliates and Associates), other than a trustee or
other fiduciary holding securities under an employee benefit plan of the Company, acquires
(or has acquired during the 12-month period ending on the date of the most recent
acquisition by such Person (together with its Affiliates and Associates) or becomes the
“beneficial owner” (as that term is defined in Rule 13d-3 promulgated under the Act),
directly or indirectly, of securities of the Company representing thirty-five percent (35%)
or more of the combined voting power of the Company’s then outstanding securities; or




     (ii) the Continuing Directors of the Company’s Board shall at any time fail to
constitute a majority of the members of such Board.



SECTION 9. AMENDMENT; TERMINATION




          The Board may at any time and from time to time alter, amend, suspend, or terminate the
Program in whole or in part; provided, however, that no amendment which requires stockholder
approval in order for the exemptions available under Rule 16b-3 to be applicable to the Program and
the Eligible Directors shall be effective unless the same shall be approved by the stockholders of
the Company entitled to vote thereon.




SECTION 10. RIGHTS OF ELIGIBLE DIRECTORS




          Nothing contained in the Program or with respect to any grant shall interfere with or limit in
any way the right of the stockholders of the Company to remove any Eligible Director from the Board
pursuant to the bylaws of the Company, nor confer upon any Eligible Director any right to continue
in the service of the Company as a director.




SECTION 11. GENERAL RESTRICTIONS




     (a) Investment Representations. The Company may require any Eligible Director to whom
Common Stock is issued, as a condition of receiving such Common Stock, to give written assurances
in substance and form satisfactory to the Company and its counsel to the effect that such person is
acquiring the Common Stock for his or her own account for investment and not with any present
intention of selling or otherwise distributing the same, and to such other effects as the Company
deems necessary or appropriate in order to comply with federal and applicable state securities
laws.



     (b) Compliance with Securities Laws. Each issuance shall be subject to the
requirement that, if at any time counsel to the Company shall determine that the listing,
registration or qualification of the shares upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or regulatory body, is necessary as a
condition of, or in



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connection with, the issuance of shares thereunder, such issuance may not be accepted or
exercised in whole or in part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained on conditions acceptable to the Committee. Nothing herein
shall be deemed to require the Company to apply for or to obtain such listing, registration or
qualification.




     (c) Nontransferability. Except as otherwise provided by the Committee, Restricted
Stock Units under this Program shall not be transferable by an Eligible Director other than by the
laws of descent and distribution.



     (d) No Acceleration of Distribution of Restricted Stock Units. The distribution of
Restricted Stock Units may not be accelerated, including upon termination of the Program, if such
acceleration would cause the distribution to become subject to tax under Code Section 409A.



SECTION 12. WITHHOLDING




          The Company may defer making payments or delivering shares of Common Stock under the Program
until satisfactory arrangements have been made for the payment of any federal, state or local
income or employment taxes required which the Company reasonably determines in its sole discretion
are to be withheld with respect to such payment or delivery.




SECTION 13. GOVERNING LAW




          The Program and all rights hereunder shall be construed in accordance with and governed by the
internal law, and not the law of conflicts, of the State of Delaware.




SECTION 14. UNFUNDED PROGRAM




          The Program shall be unfunded and shall not create (or be construed to create) a trust or a
separate fund or funds. The Program shall not establish any fiduciary relationship between the
Company and any Eligible Director or other person. To the extent any person holds any rights by
virtue of a grant under the Program, such right shall be no greater than the right of an unsecured
general creditor of the Company.




SECTION 15. HEADINGS




The headings of sections and subsections herein are included solely for convenience of reference
and shall not affect the meaning of any of the provisions of the Program.





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EXHIBIT A

FEES

(as of May 2005)




	 	 	 	 	 	 	 	 
	 	Basic Fee

	 	 	$	34,000	 	 
	 	Lead Director

	 	 	$	15,000	 	 
	 	Committee Chair

	 	 	Audit & Finance: $10,000
 Compensation/Nominating
 &Governance: $5,000
	 
	 	Board Meetings/Teleconferences

	 	 	$	1,500/$1,000	 	 
	 	Audit & Finance

Meetings/Teleconferences

	 	 	$	1,500/$1,000	 	 
	 	Compensation Committee

Meetings/Teleconferences

	 	 	$	1,000/$1,000	 	 
	 	Nomination & Governance

Meetings/Teleconferences

	 	 	$	1,000/$1,000	 	 
	 	Annual Stock Based Grants

	 	 	Dollar value $175,000 in options
and restricted stock, with 75% as
options and 25% as restricted
stock (calculated using
Black-Scholes model)
	 
	 





 









 






EXHIBIT B




IMATION CORP.

DIRECTORS COMPENSATION PROGRAM

ELECTION FORM




     THIS
ELECTION is made by _________ (the “Eligible Director”), effective as of the
___ day of ___, 200_.



     WHEREAS, Imation Corp., a Delaware corporation (the “Company”) has a director compensation
program (the “Program”);



     WHEREAS, the Eligible Director has the option under the Program to receive Common Stock and/or
Restricted Stock Units in lieu of payment of certain cash compensation for service as a director of
the Company;



               NOW, THEREFORE, in accordance with the terms and conditions of the Program, the Eligible
Director hereby agrees as follows:



The Program




     This Election is entered into pursuant to the Program, which is incorporated herein by
reference and made a part hereof. The Eligible Director hereby acknowledges receipt of a copy of
the Program. All capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to them in the Program. 



Basic Fee, Chairperson Fee and Lead Director Fee (“Annual Grant”)




               The Basic Fee, Chairperson Fee and Lee Director Fee is payable (and prorated) on the date
first elected to the Board of Directors (if other than at an annual meeting of stockholders).
Thereafter, the Basic Fee, Chairperson Fee and Lead Director Fee is payable on each Accounting Date
following the Annual Meeting of Stockholders.




** Special Tax Rules Relating to Election to Receive Restricted Stock
Units




          Due to new Internal Revenue Code Section 409A relating to the taxation
of deferred compensation, an election to receive Restricted Stock Units
under the Program can only be made for services performed and payments to be
received following the calendar year in which the election is made (e.g., an
election made in 2005 is not effective until January 1, 2006). Also, the
election must remain in effect for the ENTIRE calendar year. Any change in
or termination of the election can only be made the year before it is to go
in effect (e.g., a change for 2007 must be made before the end of 2006.)



DUE TO THE SPECIAL TAX RULE NOTED ABOVE, AN ELECTION MUST BE MADE FOR 2005 (WHICH CANNOT
INCLUDE PAYMENT IN RESTRICTED STOCK UNITS) AND FOR 2006 (WHICH CAN, AT THE ELIBLE
DIRECTOR’S ELECTION, INCLUDE RESTRICTED STOCK UNITS.)




 









 








               Subject to the terms and conditions of the Program, the Eligible Director hereby elects to
receive the Basic Fee, the Chairperson and Lead Director Fee, if applicable, in the following
manner:



BASIC FEE




For 2005 calendar year:




	 	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 
	

	 	 	 	 	 	 






For 2006 Calendar year (and thereafter)**:




	 	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Restricted Stock Units in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 
	

	 	 	 	 	 	 






CHAIRPERSON FEE: (if applicable)





For 2005 calendar year:




	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 
	

	 	 	 	 	 	 






For 2006 Calendar year (and thereafter)**:




	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Restricted Stock Units in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 
	

	 	 	 	 	 	 






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MEETING FEES:




               Subject to the terms and conditions of the Program, the Eligible Director elects to
receive Meeting Fees compensation in the following manner, with such fees payable on each Quarterly
Payment Date:



	 	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 






For 2006 Calendar year (and thereafter)**:




	 	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Restricted Stock Units in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 






LEAD DIRECTOR FEE: (if applicable-please complete this section even if you are not
currently lead director)




	 	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 






For 2006 Calendar year (and thereafter)**:




	 	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Common Stock in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Restricted Stock Units in lieu of Cash
	 
	 	 	 	 	 	 
	

	 	 	___	%	 	Election to receive Cash
	Total:

	 	 	100	%	 	 






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DISTRIBUTION ELECTION FOR RESTRICTED STOCK UNITS: (Must be completed if Eligible Director
has made an Election to Receive Restricted Stock Units.)




     The Eligible Director hereby elects to receive payment of his or her Restricted Stock Units on
the earlier to occur of a Change in Control, his or her death or the following date:



	 	 	 
	___

	 	___-year anniversary of the grant date (please specify)
	 
	 	 
	___

	 	The date the Eligible Director incurs a “separation from service” with Company
(within the meaning of Section 409A of the Internal Revenue Code).
	 
	 	 
	___

	 	Other (please specify date only): ___________________________






Term of Election




     This Election will remain in effect until terminated or changed by the Eligible Director
pursuant to written notice to the Secretary of the Company or filing of a new Election Form. Note:
A change or termination of an Election to receive Restricted Stock Units will not become effective
until January 1 of the calendar year following the calendar year the change or termination is filed
with the Secretary of the Company.



     IN WITNESS WHEREOF, the Eligible Director has entered into this Election on the day and year
first above written, and the Company has accepted this Election as of such day and year.



	 	 	 	 	 	 	 
	 	 	ELIGIBLE DIRECTOR
	 
	 	 	 	 	 	 
	 	 	 
	 	 	Signature
	 
	 	 	 	 	 	 
	 	 	Accepted and Agreed to by IMATION CORP.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 
	 	 	Title:	 	 
	

	 	 	 	 	 	 







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