Form of Restricted Stock Unit (RSU) Grant Agreement



 Exhibit 10.36 
 X-RITE, INCORPORATED 
 RESTRICTED STOCK UNIT (RSU) GRANT AGREEMENT 
 UNDER THE X-RITE, INCORPORATED 
 2008
OMNIBUS LONG TERM INCENTIVE PLAN 
  

							
		
		 	Grantee:                                      
                                         
                                         
                                         
                                         
                                       

		
		 	Social Security Number:                                  
                                         
                                        
                                         
                                         
            
				
		 	Grant Date: 	 	 October 30, 2009
	 	Number of RSUs Awarded:                                
                                

 1. Terms. X-Rite, Incorporated (the “Company”) has awarded to Grantee a
Restricted Stock Unit (“RSU”) Award, effective as of the Grant Date. This Agreement is subject to the terms and conditions of the X-Rite, Incorporated 2008 Omnibus Long Term Incentive Plan (the “Plan”), as amended from time to
time. All of the defined terms contained in this Agreement shall have the same meaning as is set forth in the Plan. If any inconsistency exists between the provisions of this Agreement and the Plan, the Plan shall govern. 
 2. RSU Grant. Effective as of the Grant Date, the Company hereby grants the Grantee that number of RSUs shown above (the “RSUs
Awarded”), subject to the restrictions set forth below and in Exhibit A. No stock certificates will be issued with respect to any shares of stock. A record of stock ownership shall be kept in the Grantee’s name, or in the Grantee’s
name and in the name of another person of legal age as joint tenants with right of survivorship, as applicable. Prior to distribution, RSUs are not transferable by the Grantee by means of sale, assignment, gift, exchange, pledge or otherwise.

 3. Restrictions. The RSUs shall vest in accordance with the applicable vesting date set forth in Exhibit A to this Agreement
(“Vesting Period”). Vesting is based on the achievement of certain performance targets outlined in Exhibit A to this agreement. 
 4. Forfeiture. In the event the employment relationship between the Company and Grantee terminates during a Vesting Period, the Grantee’s rights with respect to vested RSUs shall be forfeited unless they are covered by
lapsed vesting restrictions provided in this Section 4. In the event the employment relationship between the Company and Grantee terminates during the Vesting Period due to the Grantee’s retirement at age sixty (60) or greater, death,
or disability, the vesting restrictions shall be deemed to have lapsed with respect to that portion of the RSUs which is proportional to the amount of the Vesting Period which has expired. “Disability” means a physical or mental infirmity
which impairs the Grantee’s ability to substantially perform Grantee’s duties of the Grantee’s regular occupation with the Company, which continues for a period of at least one hundred and eighty (180) consecutive days.

 5. Special Provisions. Participants in the X-Rite, Incorporated Change in Control Severance Plan for Senior Executives (the
“Change in Control Plan”) who receive this one-time equity award will not receive accelerated vesting in respect thereof upon a qualifying termination within twenty-four months after the issuance of shares of the Company’s common
stock to OEPX, LLC, a Delaware limited liability company managed by One Equity Partners (as described in the Company’s September 26, 2008 Proxy Statement) which occurred on October 28, 2008, unless the qualifying termination is in
connection with, or following, a change in control transaction (as defined in the Change in Control Plan) that is consummated after the consummation of such issuance. 
 6. Distribution of RSUs. If withholding of taxes is not required, none will be taken and the gross number of shares of common stock of the Company equal to the number of RSUs credited to the Grantee will
be distributed. The Company shall also have the right to withhold shares deliverable upon vesting of the RSUs to satisfy, in whole or in part, the amount the Company is required to withhold for taxes in connection with the award, deferral or
settlement of the RSUs or other securities pursuant to this Agreement. The Grantee is personally responsible for the payment of all taxes related to distribution. 







 7. Adjustments. In the event of any recapitalization of the Company, then the number of
RSUs shall be appropriately adjusted as provided in the Plan. 
 8. Post-Employment Competition. In the event the Grantee
engages in any activity competitive to any business of the Company that is being actively conducted or planned at the time of termination of Grantee’s employment with the Company, prior to the expiration of two (2) years after such
termination of employment, either directly or indirectly, as a proprietor, partner, employee, officer, director, consultant, or holder of any equity interest in any competitive corporation or limited liability company (excluding less than two
percent (2%) interest in any publicly traded entity), then Grantee shall forfeit all economic benefits derived by the Grantee with respect to all RSU grants granted to the Grantee that were outstanding and not vested as of, or granted after a
date, that is six (6) months prior to the date the competitive activity commenced. Forfeiture of economic benefits shall mean payment to the Company of an amount equal to the difference between the price paid by the Grantee for such shares, if
any, and the market price for those shares as of the date the vesting restrictions lapsed with respect to those shares. 
 9. No Rights
as a Stockholder. The Grantee shall have no rights as a stockholder of the Company in respect of the RSUs, including the right to vote and accrue dividends, until and unless the RSUs have vested, and ownership of shares represented by
the RSUs has been transferred to the Grantee. 
 10. Miscellaneous. This Agreement contains the entire agreement of the parties
with respect to its subject matter, and there are no other terms and conditions except as expressly set forth in this Agreement and in the Plan. The Company may amend or terminate the Plan at any time without limitation. This Agreement may be
amended or modified only by means of a written instrument signed by an authorized representative of the Company and the Grantee. Grantee’s rights pursuant to this Agreement may not be assigned, in whole or in part, directly or indirectly,
without the prior written consent of an authorized officer of the Company. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, personal representatives, successors, and permitted assigns.

  

			
	X-RITE, INCORPORATED
		
	By	 	 


 I hereby acknowledge that this Restricted Stock Unit Agreement is subject to all of the terms and conditions
of the X-Rite, Incorporated 2008 Omnibus Long Term Incentive Plan, and that I have received a copy of the Plan and the Company’s most recent proxy statement and annual report furnished to shareholders. 
  

							
		  		  		  	Grantee:
				
	Date:	  	  
	  		  	  









 Exhibit A—Recapitalization Restricted Stock/Unit Award 
 AWARD 
 [            ] restricted shares (“RS”), with performance target achievement on an annual or cumulative fiscal calendar basis over each of a three, four and five
year period. 
  

													
	Fiscal Calendar	  		  		  		  		  		  	
	Performance Period	  	 2009
	  	 2010
	  	 2011
	  	 2012
	  	 2013
	  	  
	 Tranche 1
	  		  		  		  		  		  	
	Tranche 2	  		  		  		  		  		  	
	Tranche 3	  		  		  		  		  		  	
		  	 	  	 	  	 	  	 	  	 	  	

 PERFORMANCE TARGETS 
  

													
	 Annual—Target Adjusted EBITDA (in millions)
	  		  	
	 	  	 2009
	  	 2010
	  	 2011
	  	 2012
	  	 2013
	  	  
	 	  	  	  	  	  	  	  	  	  	  	  	  

  

													
	 Cumulative—Target Adjusted EBITDA (in millions)
	  		  	
	 	  	 2009
	  	 2010
	  	 2011
	  	 2012
	  	 2013
	  	  
	 Tranche 1
	  	$	  	$	  	$	  		  		  	
	Tranche 2	  	$	  	$	  	$	  	$	  		  	
	Tranche 3	  	$	  	$	  	$	  	$	  	$	  	

 VESTING 
  

	 	•	 	 Vesting of RS is based on the achievement of annual and/or cumulative adjusted EBITDA targets during the performance period for each fiscal year.



  

	 	 •
	 	 The earned RS will be delivered after the performance period’s financial results have been audited and approved by
both the Audit Committee and the Compensation Committee of the Board of Directors, generally in the 1st quarter of the year following the
performance period. 


 TAXATION 
 Generally, under federal income tax rules, an employee receiving a RS Award is not taxed at the time of the grant. Instead, the employee is taxed when the restriction is lifted. The amount of income subject to tax (the “gain”) is
the fair market value of the grant at the time of release (number of shares times XRIT closing price on date of release). As many countries other the U.S. treat RS as taxable at issue based on beneficial ownership, we have shifted to issuing
Restricted Stock Units (“RSUs”) to non-U.S. employees. In the case of RSUs, the actual shares are not issued until vesting is determined. Although RSUs do not have voting rights or dividend rights (X-Rite does not pay a stock dividend at
this time), the recipient is protected from inadvertent tax consequences. All other terms of a RSU award are the same as those of RS.