Document:

exv10w68

 

Exhibit
10.68

January 7, 2008

Mr. F. Edwin Harbach

[                              ]

[                              ]

Re:     Award Notice of Stock Option Grant

Dear Ed:

We are pleased to notify you that in recognition of your contributions toward the future success of
BearingPoint, Inc., you have been awarded an option to purchase shares of common stock of
BearingPoint, Inc. (the “Company”). Certain terms of your award follow:

	 	 	 
	Option:

	 	You have been awarded a non-statutory stock option to
purchase from the Company 1,232,600 shares of its
common stock, $0.01 par value, subject to adjustment,
as provided in Section 3.5 of your BearingPoint, Inc.
Stock Option Agreement (the “Agreement”).
	 
	 	 
	Option Date:

	 	January 2, 2008
	 
	 	 
	Exercise Price:

	 	$2.76 per share, subject to adjustment as provided in
Section 3.5 of the Agreement.
	 
	 	 
	Exercise Schedule:

	 	Except as otherwise provided in Section 2.2 of the
Agreement and in Section 7.8 of the BearingPoint, Inc.
2000 Long-Term Incentive Plan (the “Plan”), the Option
shall become exercisable (i) on the first anniversary
of the Option Date with respect to 25% of the number of
shares subject thereto on the Option Date, (ii) on the
second anniversary of the Option Date with respect to
an additional 25% of the number of shares subject
thereto on the Option Date, (iii) on the third
anniversary of the Option Date with respect to an
additional 25% of the number of shares subject thereto
on the Option Date and (iv) on the fourth anniversary
of the Option Date with respect to the remaining 25% of
the number of shares subject thereto on the Option
Date.
	 
	 	 
	Expiration Date:

	 	Except to the extent earlier terminated pursuant to
Section 2.2 or 2.5 of the Agreement or earlier
exercised pursuant to Section 2.3 of the Agreement, the
Option shall terminate at 5:00 p.m., New York time, on
January 2, 2018.

 

 

In addition to the terms stated in this Award Notice, the Option shall be subject to the terms and
conditions of the Agreement and the Plan, copies of which are attached hereto.

We congratulate you on this recognition of your importance to our organization and its future.

	 	 	 	 	 
	 	 	BearingPoint, Inc.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Roderick McGeary
	 

	 	 	 	 
	 	 	Roderick McGeary, Chairman

Acknowledgment, Acceptance and Agreement:

By signing below and returning this 2 page Award Notice to BearingPoint, Inc., c/o Morgan Stanley
at the address stated herein, I hereby acknowledge receipt of the Agreement and the Plan, accept
the Option granted to me and agree to be bound by the terms and conditions of this Award Notice,
the Agreement and the Plan.

	 	 	 	 	 	 	 
	/s/ F. Edwin Harbach	 	 	 	1/18/08	 	 
	 

Signature

	 	 	 	 

Date
	 	 
	 
	 	 	 	 	 	 
	F. Edwin Harbach	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Print Name

	 	 	 	Employee ID Number	 	 

BearingPoint, Inc.

c/o Morgan Stanley

Stock Plan Administration

Harborside Financial Center

Plaza Three, 1st Floor

Jersey City, NJ 07311

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BearingPoint, Inc.

STOCK OPTION AGREEMENT

          BearingPoint, Inc., a Delaware corporation (the “Company”), hereby grants to the
individual (the “Optionee”) named in the award notice attached hereto (the “Award Notice”)
as of the date set forth in the Award Notice (the “Option Date”), pursuant to the
provisions of the BearingPoint, Inc. 2000 Long-Term Incentive Plan (the “Plan”), a
non-statutory stock option to purchase from the Company the number of shares of its Common Stock,
$0.01 par value, set forth in the Award Notice (the “Option”), at the price per share set
forth in the Award Notice, upon and subject to the terms and conditions set forth below, in the
Award Notice and in the Plan. Capitalized terms not defined herein shall have the meanings
specified in the Plan.

          1. Option Subject to Acceptance of Agreement. The Option shall be null and void
unless the Optionee shall accept this Agreement by executing the Award Notice in the space provided
therefore and returning an original execution copy of the Award Notice to the Company.

          2. Time and Manner of Exercise of Option.

          2.1. Maximum Term of Option. In no event may the Option be exercised, in whole or in
part, after the expiration date set forth in the Award Notice (the “Expiration Date”).

          2.2. Exercise of Option.

          (a) The Option shall become exercisable in accordance with the exercise schedule set
forth in the Award Notice (the “Exercise Schedule”).

          (b) If the Optionee’s employment with the Company terminates by reason of Disability,
the Option shall be exercisable only to the extent it is exercisable on the effective date
of the Optionee’s termination of employment and may thereafter be exercised by the Optionee
or the Optionee’s Legal Representative until and including the earlier to occur of (i) the
date which is one year after the effective date of the Optionee’s termination of employment
and (ii) the Expiration Date.

          (c) If the Optionee’s employment with the Company terminates by reason of Retirement,
the Option shall continue to vest in accordance with the vesting schedule set forth in the
Award Notice and may thereafter be exercised by the Optionee or the Optionee’s Legal
Representative until and including the earlier to occur of (i) the date which is one year
after the Optionee’s date of death, provided the Optionee dies
following termination of active employment by reason of Retirement, and (ii) the
Expiration Date.

          (d) If the Optionee’s employment with the Company terminates by reason of death, the
Option shall be exercisable only to the extent it is exercisable on the

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date of death and
may thereafter be exercised by the Optionee’s Legal Representative or Permitted Transferees,
as the case may be, until and including the earlier to occur of (i) the date which is one
year after the date of death and (ii) the Expiration Date.

          (e) If the Optionee’s employment with the Company terminates for any reason other than
Disability, Retirement or death, the Option shall be exercisable only to the extent it is
exercisable on the effective date of the Optionee’s termination of employment and may
thereafter be exercised by the Optionee or the Optionee’s Legal Representative until and
including the earlier to occur of (i) the date which is three months after the effective
date of the Optionee’s termination of employment and (ii) the Expiration Date.

          (f) If the Optionee dies during the period set forth in Section 2.2(b) following
termination of employment by reason of Disability, or if the Optionee dies during the period
set forth in Section 2.2(e) following termination of employment for any reason other than
Disability or Retirement, the Option shall be exercisable only to the extent it is
exercisable on the date of death and may thereafter be exercised by the Optionee’s Legal
Representative or Permitted Transferees, as the case may be, until and including the earlier
to occur of (i) the date which is one year after the date of death and (ii) the Expiration
Date.

          2.3. Method of Exercise. Subject to the limitations set forth in this Agreement and
the Plan, the Option may be exercised by the Optionee (a) by giving written notice to the Company
specifying the number of whole shares of Common Stock to be purchased and by accompanying such
notice with payment therefor in full (or by arranging for such payment to the Company’s
satisfaction) either (i) in cash, (ii) by delivery to the Company (either actual delivery or by
attestation procedures established by the Company) of Common Stock having an aggregate Fair Market
Value, determined as of the date of exercise, equal to the aggregate purchase price payable
pursuant to the Option by reason of such exercise, (iii) in cash by a broker-dealer acceptable to
the Company to whom the Optionee has submitted an irrevocable notice of exercise or (iv) by a
combination of (i) and (ii), and (b) by executing such documents as the Company may reasonably
request. The Company shall have sole discretion to disapprove of an election pursuant to any of
clauses (ii) — (iv). Any fraction of a share of Common Stock which would be required to pay such
purchase price shall be disregarded and the remaining amount due shall be paid in cash by the
Optionee. No certificate representing a share of Common Stock shall be delivered until the full
purchase price therefor and any withholding taxes thereon, as described in Section 3.3, have been
paid.

          2.4. Termination of Option.

          (a) Subject to Section 2.2(g), in no event may the Option be exercised after it
terminates as set forth in this Section 2.4. The Option shall terminate, to the extent not
earlier terminated pursuant to Sections 2.2 or 2.5 or exercised pursuant to Section 2.3, on
the Expiration Date.

          (b) In the event that rights to purchase all or a portion of the shares of Common Stock
subject to the Option expire or are exercised, cancelled or forfeited, the

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Optionee shall, upon the Company’s request, promptly return this Agreement to the Company for full or
partial cancellation, as the case may be; provided, however, that such
cancellation shall be effective regardless of whether the Optionee returns this Agreement.
If the Optionee continues to have rights to purchase shares of Common Stock hereunder, the
Company shall, within 10 days of the Optionee’s delivery of this Agreement to the Company,
either (i) mark this Agreement to indicate the extent to which the Option has expired or
been exercised, cancelled or forfeited or (ii) issue to the Optionee a substitute option
agreement applicable to such rights, which agreement shall otherwise be substantially
similar to this Agreement in form and substance.

          2.5. Termination of Option and Forfeiture of Option Gain.

          (a) If the Optionee:

          (1) breaches any covenant concerning confidentiality or intellectual property
or concerning noncompetition or nonsolicitation of clients, prospective clients or
personnel of the Company and its affiliates to which the Optionee is or may become a
party in the future; or

          (2) directly or indirectly engages in any activity which is contrary, inimical
or harmful to the interests of the Company, including but not limited to (i)
violations of Company policies to the extent then applicable to the Optionee,
including the Company’s insider trading policies, and (ii) participation in any
activity not approved by the Board which could reasonably be foreseen as
contributing to or resulting in a Change in Control of the Company,

then, in addition to and without in any way limiting any remedies under any of the covenants
described above in this Section 2.5(a) or otherwise and any other provable damages, the Option
shall terminate automatically (if not previously terminated) on the date the Optionee commits such
breach or engages in such activity and the Optionee shall pay the Company, within five business
days of receipt by the Optionee of a written demand therefor, an amount in cash determined by
multiplying the number of shares of Common Stock purchased pursuant to each exercise of the Option
occurring within three months prior to the date the Optionee commits such breach or engages in such
activity (without reduction for any shares of Common Stock delivered by the Optionee or withheld by
the Company pursuant to Section 2.3 or Section 3.3) by the difference between (i) the Fair Market
Value of a share of Common Stock on the date of such exercise and (ii) the purchase price per share
of Common Stock set forth in the Award Notice.

          (b) The Optionee may be released from the Optionee’s obligations under Section 2.5(a)
only if and to the extent the Committee determines in its sole discretion that such a
release is in the best interests of the Company.

          (c) The Optionee agrees that by executing the Award Notice the Optionee authorizes the
Company and its Subsidiaries to deduct any amount or amounts owed by the Optionee pursuant
to Section 2.5(a) from any amounts payable by the Company or any Subsidiary to the Optionee,
including, without limitation, any amount payable to the Optionee as salary, wages, vacation
pay or bonus. This right of setoff shall

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not be an exclusive remedy and the Company’s or a
Subsidiary’s election not to exercise this right of setoff with respect to any amount
payable to the Optionee shall not constitute a waiver of this right of setoff with respect
to any other amount payable to the Optionee or any other remedy.

          3. Additional Terms and Conditions of Option.

          3.1. Nontransferability of Option. The Option may not be transferred by the Optionee
other than by will or the laws of descent and distribution or pursuant to beneficiary designation
procedures approved by the Company. Except to the extent permitted by the foregoing sentence,
during the Optionee’s lifetime the Option is exercisable only by the Optionee or the Optionee’s
Legal Representative. Except to the extent permitted by the second preceding sentence, the Option
may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of
(whether by operation of law or otherwise) or be subject to execution, attachment or similar
process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise
dispose of the Option, the Option and all rights hereunder shall immediately become null and void.

          3.2. Investment Representation. The Optionee hereby represents and covenants that (a)
any shares of Common Stock purchased upon exercise of the Option will be purchased for investment
and not with a view to the distribution thereof within the meaning of the Securities Act unless
such purchase has been registered under the Securities Act and any applicable state securities
laws; (b) any subsequent sale of any such shares shall be made either pursuant to an effective
registration statement under the Securities Act and any applicable state securities laws, or
pursuant to an exemption from registration under the Securities Act and such state securities laws;
and (c) if requested by the Company, the Optionee shall submit a written statement, in a form
satisfactory to the Company, to the effect that such representation (x) is true and correct as of
the date of any purchase of any shares hereunder or (y) is true and correct as of the date of any
sale of any such shares, as applicable. As a further condition precedent to any exercise of the
Option, the Optionee shall comply with all regulations and requirements of any regulatory authority
having control of or supervision over the issuance or delivery of the shares and, in connection
therewith, shall execute any documents which the Board or the Committee shall in its sole
discretion deem necessary or advisable.

          3.3. Withholding Taxes.

          (a) As a condition precedent to the delivery of Common Stock upon exercise of the
Option, the Optionee shall, upon request by the Company, pay to the
Company in addition to the purchase price of the shares, such amount as the Company
may be required, under all applicable federal, state, local or other laws or regulations, to
withhold and pay over as income or other withholding taxes (the “Required Tax
Payments”) with respect to such exercise of the Option. If the Optionee shall fail to
advance the Required Tax Payments after request by the Company, the Company may, in its
discretion, deduct any Required Tax Payments from any amount then or thereafter payable by
the Company to the Optionee.

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          (b) The Optionee may elect to satisfy his or her obligation to advance the Required Tax
Payments by any of the following means: (1) a cash payment to the Company, (2) delivery to
the Company (either actual delivery or by attestation procedures established by the Company)
of Common Stock having an aggregate Fair Market Value, determined as of the Tax Date, equal
to the Required Tax Payments, (3) authorizing the Company to withhold whole shares of Common
Stock which would otherwise be delivered to the Optionee upon exercise of the Option having
an aggregate Fair Market Value, determined as of the Tax Date, equal to the Required Tax
Payments, (4) a cash payment by a broker-dealer acceptable to the Company to whom the
Optionee has submitted an irrevocable notice of exercise or (5) any combination of (1), (2)
and (3). The Company shall have sole discretion to disapprove of an election pursuant to
any of clauses (2) — (5). Shares of Common Stock to be delivered or withheld may not have a
Fair Market Value in excess of the minimum amount of the Required Tax Payments. Any
fraction of a share of Common Stock which would be required to satisfy any such obligation
shall be disregarded and the remaining amount due shall be paid in cash by the Optionee. No
certificate representing a share of Common Stock shall be delivered until the Required Tax
Payments have been satisfied in full.

          3.4. Tax Reporting and Payment Liability. The Company will assess its Required Tax
Payments’ withholding and reporting requirements, in connection with the Option, including the
grant, vesting or exercise of the Option or sale of shares acquired pursuant to such exercise.
These requirements may change from time to time as laws or interpretations change. Regardless of
the Company’s actions with respect to Required Tax Payments, the Optionee hereby acknowledges and
agrees that the ultimate liability for any and all Required Tax Payments is and remains his or her
responsibility and liability and that the Company (i) makes no representations nor undertakings
regarding treatment of any Required Tax Payments in connection with any aspect of the Option grant,
including the grant, vesting or exercise of the Option and the subsequent sale of shares acquired
pursuant to such exercise; and (ii) does not commit to structure the terms of the grant or any
aspect of the Option to reduce or eliminate the Optionee’s liability regarding Required Tax
Payments.

          3.5. Adjustment. In the event of any stock split, reverse stock split, stock
dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares,
liquidation, spin-off or other similar change in capitalization or event, or any distribution to
holders of Common Stock other than a regular cash dividend, the number and class of securities
subject to the Option and the purchase price per security shall be appropriately adjusted by the
Committee without an increase in the aggregate purchase price. If any adjustment would result in a
fractional security being subject to the Option, the Company shall pay the Optionee, in connection
with the first exercise of the Option occurring after such
adjustment, an amount in cash determined by multiplying (i) the fraction of such security
(rounded to the nearest hundredth) by (ii) the excess, if any, of (A) the Fair Market Value on the
exercise date over (B) the exercise price of the Option. The decision of the Committee regarding
any such adjustment shall be final, binding and conclusive.

          3.6. Compliance with Applicable Law. The Option is subject to the condition that if
the listing, registration or qualification of the shares subject to the Option upon any securities
exchange or under any law, or the consent or approval of any governmental body, or

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the taking of any other action is necessary or desirable as a condition of, or in connection with, the purchase
or delivery of shares hereunder, the Option may not be exercised, in whole or in part, and such
shares may not be delivered, unless such listing, registration, qualification, consent, approval or
other action shall have been effected or obtained, free of any conditions not acceptable to the
Company. The Company agrees to use reasonable efforts to effect or obtain any such listing,
registration, qualification, consent, approval or other action.

          3.7. Delivery of Certificates. Upon the exercise of the Option, in whole or in part,
the Company shall deliver or cause to be delivered, subject to the conditions of this Article 3,
one or more certificates representing the number of shares purchased against full payment therefor.
The Company shall pay all original issue or transfer taxes and all fees and expenses incident to
such delivery, except as otherwise provided in Section 3.3. Alternatively, in the Company’s sole
discretion, the Company may transfer title or ownership of shares acquired upon exercise of the
Option under the Company’s procedures through its transfer agent.

          3.8. Option Confers No Rights as Stockholder. The Optionee shall not be entitled to
any privileges of ownership with respect to shares of Common Stock subject to the Option until
purchased and title or ownership of shares has been transferred to the Optionee under the Company’s
procedures through its transfer agent. The Optionee shall not be considered a stockholder of the
Company with respect to any such shares not so purchased.

          3.9. Acknowledgement and Waiver. By executing the Award Notice and accepting the
grant of the Option evidenced by the Award Notice and this Agreement, the Optionee acknowledges
that: (i) the Plan is established voluntarily by the Company, it is discretionary in nature and may
be modified, suspended or terminated by the Company at any time as provided in the Plan and this
Agreement; (ii) the grant of the Option is voluntary and occasional and does not create any
contractual or other right to receive future grants of Options, or benefits in lieu of Options even
if Options have been granted repeatedly in the past; (iii) all decisions with respect to any such
future grants will be at the sole discretion of the Company; (iv) the Optionee’s participation in
the Plan shall not create a right to further employment with the Company and shall not interfere
with the ability of the Company to terminate the Optionee’s employment relationship at any time
with or without cause; (v) the Optionee’s participation in the Plan is voluntary; (vi) the Option
is not part of normal or expected compensation or salary for any purposes, including but not
limited to, calculating any severance, resignation, termination, redundancy, end of service
payments, bonuses, long-service awards, pension or retirement benefits or similar payments; (vii)
the future value of the underlying shares is unknown and cannot be predicted with certainty; (viii)
if the Optionee exercises his or her Option and obtains shares, the value of those shares acquired
upon exercise may increase or decrease in value, even below the option price; (ix) if the
underlying shares do not increase in value, the Option will
have no value; and (x) no claim or entitlement to compensation or damages arises from
termination of the Options or diminution in value of the Option or shares of Common Stock purchased
through exercise of the Option and the Optionee irrevocably releases the Company and its Affiliates
from any such claim that may arise.

          3.10. Decisions of Board or Committee. The Board or the Committee shall have the
right to resolve all questions which may arise in connection with the Option or its

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exercise. Any interpretation, determination or other action made or taken by the Board or the Committee regarding
the Plan or this Agreement shall be final, binding and conclusive.

          3.11. Agreement Subject to Plan. This Agreement is subject to the provisions of the
Plan, including Section 7.8 relating to a Change in Control, and shall be interpreted in accordance
therewith. The Optionee hereby acknowledges receipt of a copy of the Plan.

          4. Miscellaneous Provisions.

          4.1. Designation as Non-Statutory Stock Option. The Option is hereby designated as
not constituting an Incentive Stock Option. This Agreement shall be interpreted and treated
consistently with such designation.

          4.2. Meaning of Certain Terms.

          (a) As used herein, employment by the Company shall include employment by a subsidiary
of the Company.

          (b) As used herein, the following terms shall have the meanings set forth below:

          “Legal Representative” shall include an executor, administrator, legal
representative, guardian or similar person.

          “Permitted Transferee” shall include any transferee designated as the
Optionee’s beneficiary in the event of the Optionee’s death pursuant to beneficiary
designation procedures approved by the Company.

          “Retirement” shall mean retirement under the Company’s Rule of 70 Retirement
Policy, or, if required by law, under local law. An Optionee currently is eligible to
retire under the Company’s Rule of 70 Retirement Policy, if the Optionee’s age plus “years
of service” (as determined under the Company’s 401(k) plan or any successor to such plan)
equals or exceeds 70 as of the date of retirement.

          “Securities Act” shall mean the Securities Act of 1933, as amended, and the
rules and regulations thereunder.

          4.3. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall, upon the death of the
Optionee, acquire any rights hereunder in accordance with this Agreement or the Plan.

          4.4. Notices. All notices, requests or other communications provided for in this
Agreement shall be made, if to the Company, to BearingPoint, Inc., c/o Morgan Stanley, Stock Plan
Administration, Harborside Financial Center, Plaza Three, 1st Floor, Jersey City, NJ 07311 and if
to the Optionee, to the last known mailing address of the Optionee contained in the records of the
Company. All notices, requests or other communications provided for in this Agreement shall be
made in writing either (a) by personal delivery, (b) by facsimile with

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confirmation of receipt, (c) by mailing in the United States mails or (d) by express courier service.
The notice, request or other communication shall be deemed to be received upon personal delivery, upon confirmation of
receipt of facsimile transmission or upon receipt by the party entitled thereto if by United States
mail or express courier service; provided, however, that if a notice, request or other
communication sent to the Company is not received during regular business hours, it shall be deemed
to be received on the next succeeding business day of the Company.

          4.5. Governing Law. This Agreement, the Option and all determinations made and
actions taken pursuant hereto and thereto, to the extent not governed by the Code or the laws of
the United States, shall be governed by the laws of the State of Delaware and construed in
accordance therewith without giving effect to principles of conflicts of laws; provided, however,
that to the extent this Agreement makes reference to any other agreements (including, without
limitation, the agreements containing the covenants referred to in Section 2.5(a)(1) above), the
choice of law provision set forth in each such agreement shall continue to govern the terms and
conditions of such agreement as well as the interpretation and construction thereof and the
references thereto that are set forth herein.

          4.6. Counterparts. This Award Notice may be executed in two counterparts, each of
which shall be deemed an original and both of which together shall constitute one and the same
instrument.

8NALCO HOLDING COMPANY

2004 STOCK INCENTIVE PLAN

RESTRICTED SHARES GRANT AGREEMENT

David Johnson

THIS AGREEMENT, is made effective as of January 10, 2006 (the “Grant Date”), between Nalco Holding Company (the “Company”) and David Johnson (the “Participant”).

RECITALS:

WHEREAS, the Company has adopted the Plan (as defined below), the terms of which are hereby incorporated by reference and made a part of this Agreement; and

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) has determined that the Participant be granted the Restricted Shares provided for herein pursuant to the Plan and the terms set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

1. Definitions. Whenever the following terms are used in this Agreement, they shall have the meanings set forth below. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.

(a) “Plan” means the Nalco Holding Company 2004 Stock Incentive Plan, as the same may be amended, supplemented or modified from time to time.

(b) “Restricted Shares” means the shares of the Company’s common stock, par value $0.01 per share subject to the Time Restrictions.

(c) “Time Restrictions” means those restrictions described in Exhibit A to this Agreement.

(d) “Vested Shares” means those Restricted Shares that are no longer subject to Time Restrictions.

2. Grant of Restricted Shares. The Company hereby grants to the Participant, subject to the terms and conditions of this Agreement and the Plan, 5,316 Restricted Shares.

3. Delivery of Restricted Shares.

 

(a) In General. The Company shall issue a note in its electronic stock registry (without the issuance of certificates) the Restricted Shares in the name of the Participant which shall bear a legend which shall provide that:

The shares of Nalco Holding Company are subject to the terms and restrictions of the Nalco Holding Company 2004 Stock Incentive Plan and the Restricted Shares Agreement between the Participant and the Company (the “Grant Agreement”), such shares are subject to forfeiture or cancellation under the terms of such Plan and the terms of the Grant Agreement under which the shares were issued, and such shares shall not be sold, transferred, assigned, pledged, encumbered or otherwise alienated or hypothecated except pursuant to the provision of such Plan and the Grant Agreement, copies of which are available from the Secretary of Nalco Holding Company. 

(b) Change of Control. Notwithstanding the foregoing, upon a Change of Control, the Time Restrictions upon the Restricted Shares shall be lifted by the Company. 

(c) Termination of Service. If the Participant ceases to be an employee of the Company or its affiliates for reasons other than death or disability or retirement in accordance with the normal retirement programs at the Company, the Restricted Shares, other than Vested Shares, shall be immediately forfeited and canceled by the Company without any payment or other consideration. 

(d) Satisfaction of Time Restrictions. If the Time Restrictions are satisfied for the Restricted Shares, prior to their forfeiture and subject to the other terms and conditions stated herein, the Company shall release the legend on such Restricted Shares as related to the Time Restrictions.

(d) Registration or Qualification. Notwithstanding any other provision of the Plan or this Agreement to the contrary, absent an available exemption to registration or qualification, the Restricted Shares may not be delivered prior to the completion of any registration or qualification of the Restricted Stock Units or the Shares to which they relate under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body or national securities exchange that the Board or the Company’s Compensation Committee (“Committee”) shall in its sole reasonable discretion determine to be necessary or advisable.

4. Legend on Vested Shares. The Vested Shares issued to the Participant upon the vesting of the Restricted Shares shall be subject to such stop transfer orders and other restrictions as the Committee may deem reasonably advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock

 

 

exchange upon which such Shares are listed, any applicable federal or state laws or the Company’s Certificate of Incorporation and Bylaws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

5. Transferability. Unless otherwise determined by the Committee, Restricted Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. 

6. Withholding. The Company or its Affiliate shall have the right to withhold from any payment due or transfer made with respect to the Restricted Shares or the Participant’s employment, any applicable withholding taxes in respect of the Restricted Shares or any payment or transfer with respect to the Restricted Shares or under the Plan and to take such action as may be necessary in the option of the Company to satisfy all obligations for the payment of such taxes.

7. Securities Laws. Upon the acquisition of any Vested Shares pursuant to the vesting of the Restricted Shares, the Participant will make or enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement.

8. Notices. Any notice under this Agreement shall be addressed to the Company in care of its General Counsel at the principal executive office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee.

9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws.

10. Restricted Shares Subject to the Plan. By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan. The Restricted Shares the Vested Shares received upon vesting are subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail

11. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party.

 

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

 

	
                         
 	
                         
 	
                        NALCO HOLDING COMPANY
 
	 	 	 	 
	
                          
 	
                         
 	
                        By 
 	
                          
 
	
                         
 	
                         
 	
                        Its:
 	
                         
 

 

	
                         
 	
                         
 	
                         
 	
                         
 
	
                          
 	
                         
 	
                         
 	
                        

                        /S/ David Johnson
 
	
                         
 	
                         
 	
                         
 	
                        Participant
 

 

 

Exhibit A

Time Restrictions

The Participant’s 5,316 Restricted Shares under this grant shall vest in the following four equal installments:

On December 31, 2006, subject to all other terms and conditions in this Agreement and the Plan, the time restriction on 1,329 of the Restricted Shares shall be lifted and they shall become Vested Shares.

On December 31, 2007, subject to all other terms and conditions in this Agreement and the Plan, the time restriction on 1,329 of the Restricted Shares shall be lifted and they shall become Vested Shares.

On December 31, 2008, subject to all other terms and conditions in this Agreement and the Plan, the time restriction on 1,329 of the Restricted Shares shall be lifted and they shall become Vested Shares.

On December 31, 2009, subject to all other terms and conditions in this Agreement and the Plan, the time restriction on 1,329 of the Restricted Shares shall be lifted and they shall become Vested Shares

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