Document:

rrd-ex103_475.htm

Exhibit 10.3

 

R.R. DONNELLEY & SONS COMPANY
CASH-SETTLED STOCK UNIT AWARD

 (2017 PIP)

This Cash-Settled Stock Unit Award (“Award”) is granted as of XXXXXX, 2018 by R.R. Donnelley & Sons Company, a Delaware corporation (the “Company”), to XXXXXX  (“Grantee”).

 

1.Grant of Award.  This Award is in recognition of Grantee’s hard work and dedication over the last several years and is granted as an incentive for the Grantee to remain an employee of the Company and share in the future success of the Company.  The Company hereby credits to Grantee XXXXX cash-settled stock units (the “Stock Units”), subject to the restrictions and on the terms and conditions set forth herein.  This Award is made pursuant to the provisions of the Company’s 2017 Performance Incentive Plan (the “2017 PIP”).  Capitalized terms not defined herein shall have the meanings specified in the 2017 PIP.  Grantee shall indicate acceptance of this Award by signing and returning a copy hereof.

2.Vesting.  

(a)Except to the extent otherwise provided in paragraph 2(b) or 3 below, the Stock Units shall vest and be payable in three equal installments following three consecutive  vesting periods (each, a “Vesting Period”) ending on each of:

	
 
	
•
	
March 2, 2019

	
 
	
•
	
March 2, 2020

	
 
	
•
	
March 2, 2021

 

(b)Notwithstanding anything contained herein to the contrary, upon a Change in Control, treatment of this Award, including, without limitation, with respect to vesting and payment of such Award, shall be governed by the terms of the 2017 PIP.

3.Treatment Upon Separation from Service.

(a)If Grantee has a separation from service (within the meaning of Treasury Regulation § 1.409A-1(h), hereinafter a “Separation from Service”) by reason of death or a termination by the Company due to Disability (as defined below), all unvested Stock Units shall become fully vested of the date of such Separation from Service.  

(b)If Grantee has a Separation from Service other than for death or Disability, any portion of the Stock Units that is unvested as of the date of such  Separation from Service shall be forfeited.

(c)For purposes of this Award, “Disability” shall mean that Grantee has become entitled to long-term disability benefits under the Company’s long-term disability plan. 

 

 

 

4.Cash Payment in Satisfaction of Stock Units.  As soon as practicable, but not more than 21⁄2 months following the vesting date, or at such later time as provided under paragraph 9(g) of this Agreement, the Company shall make a cash payment to Grantee equal to the Fair Market Value of a share of common stock of the Company (“Common Stock”), determined as of such vesting date, for each Stock Unit that became vested on such date.  Each Stock Unit shall be cancelled upon the payment with respect thereto.  

5.Dividends.  No dividends or dividend equivalents will accrue with respect to the Stock Units.  

6.Rights as a Shareholder.  Grantee shall not have the right to vote, nor have any other rights of ownership in, any shares of Common Stock relating to the Stock Units.  

7.Withholding Taxes.  Each payment with respect to the Stock Units shall be subject to withholding of such amounts 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 with respect to the Award.  

8.Non-Solicitation.

(a)Grantee hereby acknowledges that the Company’s relationship with the customer or customers Grantee serves, and with other employees, is special and unique, based upon the development and maintenance of good will resulting from the customers' and other employees’ contacts with the Company and its employees, including Grantee.  As a result of Grantee’s position and customer contacts, Grantee recognizes that Grantee will gain valuable information about (i) the Company’s relationship with its customers, their buying habits, special needs, and purchasing policies, (ii) the Company’s pricing policies, purchasing policies, profit structures, and margin needs, (iii) the skills, capabilities and other employment-related information relating to Company employees, and (iv) and other matters of which Grantee would not otherwise know and that is not otherwise readily available.  Such knowledge is essential to the business of the Company and Grantee recognizes that, if Grantee has a Separation from Service, the Company will be required to rebuild that customer relationship to retain the customer's business.  Grantee recognizes that during a period following Separation from Service, the Company is entitled to protection from Grantee’s use of the information and customer and employee relationships with which Grantee has been entrusted by the Company during Grantee’s employment.

(b) Grantee acknowledges and agrees that any injury to the Company’s customer relationships, or the loss of those relationships, would cause irreparable harm to the Company.  Accordingly, Grantee shall not, while employed by the Company and for a period of one year from the date of Grantee’s Separation from Service for any reason, including Separation from Service initiated by the Company with or without cause, directly or indirectly, either on Grantee’s own behalf or on behalf of any other person, firm or entity, solicit or provide services that are the same as or similar to the services the Company provided or offered while Grantee was employed by the Company to any customer or prospective customer of the Company (i) with whom Grantee had direct contact during the last two years of Grantee’s employment with the Company or about 

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whom Grantee learned confidential information as a result of his or her employment with the Company or (ii) with whom any person over whom Grantee had supervisory authority at any time had direct contact during the last two years of Grantee’s employment with the Company or about whom such person learned confidential information as a result of his or her employment with the Company.

(c)Grantee shall not, while employed by the Company and for a period of two years following Grantee’s Separation from Service for any reason, including Separation from Service initiated by the Company with or without cause, either directly or indirectly solicit, induce or encourage any individual who was a Company employee at the time of, or within six months prior to, Grantee’s Separation from Service, to terminate their employment with the Company or accept employment with any entity, including but not limited to a competitor, supplier or customer of the Company, nor shall Grantee cooperate with any others in doing or attempting to do so.  As used herein, the term "solicit, induce or encourage" includes, but is not limited to, (i) initiating communications with a Company employee relating to possible employment, (ii) offering bonuses or other compensation to encourage a Company employee to terminate his or her employment with the Company and accept employment with any entity, including but not limited to a competitor, supplier or customer of the Company, or (iii) referring Company employees to personnel or agents employed by any entity, including but not limited to competitors, suppliers or customers of the Company.

9.Miscellaneous. 

(a)Nothing in this Award shall confer upon Grantee any right to continue in the employ of the Company or any other company that is controlled, directly or indirectly, by the Company or to interfere in any way with the right of the Company to terminate Grantee’s employment at any time.  

(b)This Award shall be governed in accordance with the laws of the state of Delaware.

(c)This Award shall be binding upon and inure to the benefit of any successor or successors to the Company.  

(d)Neither this Award nor the Stock Units nor any rights hereunder or thereunder may be transferred or assigned by Grantee other than by will or the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or other procedures approved by the Company.  Any other transfer or attempted assignment, pledge or hypothecation, whether or not by operation of law, shall be void.

(e)The Human Resources Committee of the Board of Directors of the Company (the “Committee”), as from time to time constituted, shall have the right to determine any questions which arise in connection with this Agreement or the Stock Units.  This Agreement and the Stock Units are subject to the provisions of the 2017 PIP and shall be interpreted in accordance therewith.

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(f)If there is any inconsistency between the terms and conditions of this Award and the terms and conditions of Grantee’s employment agreement, employment letter or other similar agreement, the terms and conditions of such agreement shall control.

(g)This Award is intended to be exempt from or to comply with section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations promulgated thereunder.  This Award shall be administered and interpreted to the extent possible in a manner consistent with the intent expressed in this paragraph.  If any compensation or benefits provided by this Award may result in the application of section 409A of the Code or adverse tax consequences thereunder, the Company shall, in consultation with Grantee, modify this Award as necessary in order to exclude such compensation from the definition of “deferred compensation” within the meaning of such section 409A of the Code or in order to comply with the provisions of section 409A of the Code.  By signing this Agreement Grantee acknowledge that if any amount paid or payable to Grantee becomes subject to section 409A of the Code, Grantee is solely responsible for the payment of any taxes and interest due as a result.

 

IN WITNESS WHEREOF, the Company has caused this Award to be duly executed by its duly authorized officer.

R.R. Donnelley & Sons Company

By:

Name:  Sheila Rutt

Title:  EVP, Chief Human Resources Officer

 

 

All of the terms of this Award are accepted as of this _____ day of XXXXXX, 2018.

 

 

______________________________

Grantee:  

 

ACTIVE 228424467
 
4Exhibit

Exhibit 10.19
NONQUALIFIED STOCK OPTION AGREEMENT 

THIS AGREEMENT is made this day of 26 April 2018, by and between Travelzoo ("Company"), and Rachel Barnett ("Optionee").  Reference is made to the Employment Agreement (“Employment Agreement”) entered into by and between the Company and Optionee, dated July 30, 2013, and as amended on May 22, 2017. 

WHEREAS, the Company desires to grant to Optionee the option to purchase certain shares of its stock, in accordance with the terms of this Agreement, which such option is intended to be a nonstatutory stock option that is not intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended; and

WHEREAS, Ms. Barnett serves as a Director and General Counsel of the Company pursuant to the Employment Agreement between the parties;  

NOW, THEREFORE, in consideration of the premises and of the mutual agreements hereinafter set forth, it is covenanted and agreed as follows:

1.     Grant and Terms of Option. Pursuant to action of the Compensation Committee of the Board of Directors of the Company (“Committee”), the Company grants, effective April 26, 2018 (“Date of Grant”), to Optionee the option to purchase all or any part of Fifty (50,000) shares of the common stock of the Company ("Common Stock"), to vest over the period from the Date of Grant as set forth in the below table, at the purchase price of $10.50 per share, which is the fair market value of the Common Stock determined as the official NASDAQ close share price of the next business day following the Company’s Q1 2018 earning’s announcement, provided, however, that the right to exercise such option shall be, and is hereby, restricted as follows:

(a)     Subject to the terms of this Agreement, the 50,000 stock options shall vest in quarterly installments as follows:

	
		
	 Vesting Date
	Percentage of Stock Options Vesting 

	On April 26, 2018
	8.33%

	On June 30, 2018 
	8.33%

	On September 30, 2018 
	8.33%

	On December 31, 2018
	8.33%

	On March 31, 2019
	8.33%

	On June 30, 2019
	8.33%

	On September 30, 2019
	8.33%

	On December 31, 2019
	8.33%

	On March 31, 2020
	8.33%

	On June 30, 2020
	8.33%

	On September 30, 2020
	8.33%

	On December 31, 2020
	8.33%

 On or after December 31, 2020, during the term hereof, Optionee will have become entitled to purchase the entire number of shares (50,000 shares) to which this option relates.

(b)     In no event may this option or any part thereof be exercised after the expiration of ten (10) years from the Date of Grant, which shall be the term of the option.

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(c)     The purchase price of the shares subject to the option may be paid for (i) in cash, (ii) in the discretion of the Board of Directors or the Compensation Committee, by tender of shares of Common Stock already owned by Optionee, or (iii) in the discretion of the Board of Directors or the Compensation Committee, by such other method as the Board of Directors or the Compensation Committee may determine.

(d)     The option may not be exercised for a fraction of a share. 

2.     Anti-Dilution Provisions. In the event that, during the term of this Agreement, there is any change in the number of shares of outstanding Common Stock of the Company by reason of stock dividends, recapitalizations, mergers, consolidations, split-ups, combinations or exchanges of shares and the like, not including any issuances of shares for consideration or capital increases by the Company, the number of shares covered by this option agreement and the price thereof shall be adjusted, to the same proportionate number of shares and price as in this original agreement.

3.     Non-Transferability. Neither the option hereby granted nor any rights thereunder or under this Agreement may be assigned, transferred or in any manner encumbered except upon the prior written consent of the Company or by will or the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as herein authorized, shall be void and of no effect. The option may be exercised during Optionee's lifetime only by Optionee or her guardian or legal representative as set forth herein.

4.     Termination of Employment/ Directorship Service. 

(a) In the event of the termination of the Employment of Optionee and Optionee no longer serves as a director of the Company, including upon death or disability, Optionee’s (or, in the event of death, the legatee or legatees of Optionee under her last will, or her personal representatives or distributees) right to exercise the option, only to the extent it was vested and she was entitled to exercise it on the date of termination of employment or the last day she served as a director, whichever is later, shall continue for 90 days after such date but not after ten (10) years from the Date of Grant. If the Optionee (or, in the event of death, the legatee or legatees of Optionee under her last will, or her personal representatives or distributees) does not exercise the option within 90 days following such date, any unexercised vested option shall be null and void. 

5.     Method of Exercise/Shares Issued on Exercise of Option. The option may be exercised (in whole or in part) at any time during the period specified in this Agreement, by delivering to the Secretary of the Company not less than 30 days prior to the date of exercise (or such shorter period as the Company shall approve) (a) a written notice of exercise designating the number of shares to be purchased, signed by Optionee, and (b) payment of the full amount of the purchase price of the shares with respect to which the option is exercised. If the written notice of exercise is delivered by mail, or by any other means of delivery, the date of delivery and the date of exercise shall be the date the written notice is actually received by the Secretary. It is the intention of the Company that on any exercise of this option it will transfer to Optionee shares of its authorized but unissued stock or transfer Treasury shares, or utilize any combination of Treasury shares and authorized but unissued shares, to satisfy its obligations to deliver shares on any exercise hereof. 

Notwithstanding anything to the contrary herein, the Board of Directors or the Compensation Committee shall determine the methods by which payments are made with respect to the options granted under this Agreement, the form of payment including, without limitation: (i) cash, (ii) shares of stock (including, in the case of payment of the exercise price of an award, shares of stock issuable pursuant to the exercise of the award) held for such period of time as may be required by the Board of Directors or the Compensation Committee in order to avoid adverse accounting consequences and having a fair market value on the date of delivery equal to the aggregate payments required, or (iii) other property acceptable to the Board of Directors or the Compensation Committee (including through the delivery of a notice that Optionee has placed a market sell order with a broker with respect to shares of stock then issuable upon exercise or vesting of an award, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate payments required; provided that payment of such proceeds is then made to the Company upon settlement of such sale). The Board of Directors 

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or the Compensation Committee shall also determine the methods by which shares of stock shall be delivered or deemed to be delivered to Optionee.

6.     Board Administration. The Board of Directors, the Compensation Committee, or any successor or committee authorized by the Board of Directors, subject to the express terms of this option, shall have plenary authority to interpret any provision of this option and to make any determinations necessary or advisable for the administration of this option and the exercise of the rights herein granted, and may waive or amend any provisions hereof in any manner not adversely affecting the rights granted to Optionee by the express terms hereof.

7.     Option not an Incentive Stock Option. It is intended that this option shall not be treated as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended, or otherwise qualify for any special tax benefits to Optionee.

8.     No Contract of Employment. Nothing contained in this Agreement shall be considered or construed as creating a contract of employment for any specified period of time. 

9.     Restrictions on Exercise. This option may not be exercised if the issuance of Common Stock upon Optionee’s exercise or the method of payment of consideration for such Common Stock would constitute a violation of any applicable Federal or state securities law or other applicable law or regulation. As a condition to the exercise of this option, the Company may require Optionee to make any representations and warranty to the Company as may be required by any applicable law or regulation. 

10.     Termination of Option. Notwithstanding anything to the contrary herein, this option shall not be exercisable after the expiration of the term of ten (10) years from the Date of Grant, as set forth in Section 1(b) hereof. 

11.     Withholding upon Exercise. The Company reserves the right to withhold, in accordance with any applicable laws, from any consideration payable to Optionee any taxes required to be withheld by U.S. Federal, state or local law as a result of the grant or exercise of this option. If the amount of any consideration payable to Optionee is insufficient to pay such taxes or if no consideration is payable to Optionee, upon request of the Company, Optionee shall pay to the Company in cash an amount sufficient for the Company to satisfy any U.S. Federal, state or local tax withholding requirements it may incur as a result of the grant or exercise of this option. 

12.    Severability. Any word, phrase, clause, sentence or other provision herein which violates or is prohibited by any applicable law, court decree or public policy shall be modified as necessary to avoid the violation or prohibition and so as to make this Agreement enforceable as fully as possible under applicable law, and if such cannot be so modified, the same shall be ineffective to the extent of such violation or prohibition without invalidating or affecting the remaining provisions herein.

13.     Non-Waiver of Rights. The Company’s failure to enforce at any time any of the provisions of this agreement or to require at any time performance by Optionee of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this agreement, or any part hereof, or the right of the Company thereafter to enforce each and every provision in accordance with the terms of this agreement. 

14.     Entire Agreement; Amendments. No modification, amendment or waiver of any of the provisions of this agreement shall be effective unless in writing specifically referring hereto, and signed by the parties hereto. This agreement supersedes all prior agreements and understandings between Optionee and the Company to the extent that any such agreements or understandings conflict with the terms of this agreement. 

15.     Assignment. This agreement shall be freely assignable by the Company to and shall inure to the benefit of, and be binding upon, the Company, its successors and assigns and/or any other entity which shall succeed to the business presently being conducted by the Company. 

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16.     Governing Law. To the extent that Federal laws do not otherwise control, all determinations made or actions taken pursuant hereto shall be governed by the laws of the state of New York, without regard to the conflict of laws rules thereof.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by the undersigned officer pursuant to due authorization, and Optionee has signed this Agreement to evidence her acceptance of the option herein granted and of the terms hereof, all as of the date hereof. 

TRAVELZOO 
	
				
	 
	By
	Ralph Bartel
	 

	 
	Title:
	Chairman
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	Rachel Barnett
	 

                

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