Document:

exv10w1

 

Exhibit 10.1

NASHUA CORPORATION

Restricted Stock Agreement

Granted Under

2008 Value Creation Incentive Plan

     This Restricted Stock Agreement (this “Agreement”) is made this ___day of                     , 2008
(the “Grant Date”), between Nashua Corporation, a Massachusetts corporation (the “Company”), and
                                         (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. Grant and Issuance of Shares.

     The Company shall issue to the Participant, and the Participant shall acquire and accept from
the Company, subject to the terms and conditions set forth in this Agreement and in the Company’s
2008 Value Creation Incentive Plan (the “Plan”), ___shares (the “Shares”) of common stock, par
value $1.00 per share, of the Company (“Common Stock”). The Company shall issue to the Participant
one or more certificates in the name of the Participant for that number of Shares issued to the
Participant. The Participant agrees that the Shares shall be subject to (without limitation) the
forfeiture provisions set forth in Section 2 of this Agreement and the restrictions on transfer set
forth in Section 4 of this Agreement. The Participant agrees to the provisions set forth herein
and acknowledges that each such provision is a material condition to the Company’s agreement to
grant the Shares to the Participant.

     2. Forfeiture of Unvested Shares.

          (a) Notwithstanding any other provision of this Agreement, upon the earlier of (i) the
termination of the Participant’s employment with the Company for any reason or no reason, with or
without cause, or upon death or disability, and (ii) the third anniversary of the Grant Date, all
Unvested Shares (as defined below) shall, without further action of any kind by the Company, be
forfeited to the Company as of the date of such termination of employment or the third anniversary
of the Grant Date, as the case may be.

     “Unvested Shares” at any time means the total number of Shares multiplied by the Applicable
Percentage at such time. The “Applicable Percentage” shall, at any time, be 100% less the
following applicable percentage, if any:

     (i) 33% if the average of the last reported sales price per share of the Common Stock on the
NASDAQ Global Market (or other national securities exchange or nationally recognized trading
system) for a 40 consecutive trading day period ending on the third anniversary of the Grant Date
(the “40-Day Average Closing Price”) is equal to or greater than $13.00 and less than $14.00;

     (ii) 66% if the 40-Day Average Closing Price is equal to or greater than $14.00 and less than
$15.00; and

     (iii) 100% if the 40-Day Average Closing Price is equal to or greater than $15.00;

 

 

provided, however, that in the event the Participant’s employment with the Company is terminated by
the Company without “Cause” during the one-year period beginning on the second anniversary of the
Grant Date and ending on the third anniversary of the Grant Date, then in the event one of the
40-Day Average Closing Price targets is thereafter met as of the third anniversary of the Grant
Date, the Participant’s Shares shall vest as to a percentage of such Shares equal to the number of
days during such one-year period that the Participant was employed by the Company divided by 365,
provided that in no such event shall the number of Shares to so vest exceed the number that would
have otherwise vested had the Participant been employed as of such third anniversary of the Grant
Date.

          (b) Notwithstanding any other provision of this Agreement, if, on the first anniversary of the
Grant Date, the Participant is not in compliance with any portion of the “Front-End Ownership
Requirement” set forth in the Company’s Executive Stock Ownership Guidelines as in effect as of the
Grant Date, a copy of which are attached to this Agreement as Exhibit A, then all of the
Shares shall, without further action of any kind by the Company, be forfeited to the Company as of
the first anniversary of the Grant Date and thereafter all calculations in this Agreement based on
the defined term “Shares” shall be based on the number of such Shares as reduced by this provision.
If the Participant achieves a portion, but not all, of the Front-End Ownership Requirement on the
first anniversary of the Grant Date, a pro rata portion of the Shares, equal to the pro rata
portion of the Front-End Ownership Requirement that is not achieved, shall, without further action
of any kind by the Company, automatically be forfeited to the Company as of the first anniversary
of the Grant Date and thereafter all calculations in this Agreement based on the defined term
“Shares” shall be based on the number of such Shares as reduced by this provision.

          (c) For purposes of this Agreement, employment with the Company shall include employment with
a parent or subsidiary of the Company.

          (d) For the purposes hereof, “Cause” shall mean (i) the Participant’s continued failure to
perform his reasonably assigned duties (other than any such failure resulting from incapacity due
to physical or mental illness), which failure is not cured within 60 days after written notice for
substantial performance is received by the Participant from the Board which identifies the manner
in which the Board believes the Participant has not substantially performed the Participant’s
duties, (ii) the Participant being convicted of a felony, or (iii) the Participant’s engagement in
illegal conduct or gross misconduct injurious to the Company.

     3. Forfeiture Procedures.

          (a) In the event any Shares are forfeited by the Participant pursuant to Section 2(a) or (b)
above, the Participant (or the Participant’s estate) shall, pursuant to the provisions of the Joint
Escrow Instructions referred to in Section 5 below, tender to the Company at its principal offices
the certificate or certificates representing the Shares so forfeited, duly endorsed in blank or
with duly endorsed stock powers attached thereto, all in form suitable for the transfer of such
Shares to the Company.

          (b) After the time at which any Shares are required to be delivered to the Company for
transfer to the Company pursuant to Section 3(a) above, the Company shall not pay

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any dividend to the Participant on account of such Shares or permit the Participant to
exercise any of the privileges or rights of a stockholder with respect to such Shares, but shall,
in so far as permitted by law, treat the Company as the owner of such Shares.

     4. Restrictions on Transfer. The Participant shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any Shares, or any interest therein, that are subject to the forfeiture provisions
under Sections 2 and 3 above, except that the Participant may transfer such Shares (i) to or for
the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any other
relatives approved by the Board of Directors (collectively, “Approved Relatives”) or to a trust
established solely for the benefit of the Participant and/or Approved Relatives, provided
that such Shares shall remain subject to this Agreement (including without limitation the
restrictions on transfer set forth in this Section 4 and the forfeiture provisions set forth in
Sections 2 and 3 above) and such permitted transferee shall, as a condition to such transfer,
deliver to the Company a written instrument confirming that such transferee shall be bound by all
of the terms and conditions of this Agreement or (ii) as part of the sale of all or substantially
all of the shares of capital stock of the Company (including pursuant to a merger or
consolidation), provided that, in accordance with the Plan, the securities or other
property received by the Participant in connection with such transaction shall remain subject to
this Agreement.

     5. Escrow.

     The Participant shall, upon the execution of this Agreement, execute Joint Escrow Instructions
in the form attached to this Agreement as Exhibit B. The Joint Escrow Instructions shall
be delivered to the Clerk/Secretary of the Company, as escrow agent thereunder. The Participant
shall deliver to such escrow agent a stock assignment duly endorsed in blank, in the form attached
to this Agreement as Exhibit C, and hereby instructs the Company to deliver to such escrow
agent, on behalf of the Participant, the certificate(s) evidencing the Shares issued hereunder.
Such materials shall be held by such escrow agent pursuant to the terms of such Joint Escrow
Instructions.

     6. Restrictive Legends.

     All certificates representing Shares shall have affixed thereto legends in substantially the
following form, in addition to any other legends that may be required under federal or state
securities laws:

“The shares of stock represented by this certificate are subject to
restrictions on transfer and an option to purchase set forth in a
certain Restricted Stock Agreement between the corporation and the
registered owner of these shares (or owner’s predecessor in
interest), and such Agreement is available for inspection without
charge at the office of the Clerk/Secretary of the corporation.”

     7. Provisions of the Plan.

          (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.

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          (b) As provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the
Plan), the repurchase and other rights of the Company hereunder shall inure to the benefit of the
Company’s successor and shall apply to the cash, securities or other property which the Shares were
converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the
same extent as they applied to the Shares under this Agreement. If, in connection with a
Reorganization Event, a portion of the cash, securities and/or other property received upon the
conversion or exchange of the Shares is to be placed into escrow to secure indemnification or
similar obligations, the mix between the vested and unvested portion of such cash, securities
and/or other property that is placed into escrow shall be the same as the mix between the vested
and unvested portion of such cash, securities and/or other property that is not subject to escrow.

     8. Withholding Taxes; Section 83(b) Election.

          (a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to the issuance of the Shares to the Participant or the
lapse of the forfeiture provisions provided for herein.

          (b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the
Participant (and not the Company) shall be responsible for the Participant’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement. The
Participant understands that the Participant may elect to be taxed at the time the Shares are
acquired rather than when and as the forfeiture provisions provided for herein expire by filing an
election under Section 83(b) of the Code with the I.R.S. within 30 days from the date of purchase.

          THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY AND NOT THE
COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THE
COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT’S BEHALF.

     9. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares under this Agreement is earned only by continuing service as an employee at the will
of the Company (not through the act of being hired or being issued Shares hereunder). The
Participant further acknowledges and agrees that the transactions contemplated hereunder and the
vesting schedule set forth herein do not constitute an express or implied promise of continued
engagement as an employee or consultant for the vesting period, for any period, or at all.

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          (b) Assignment. The Company shall have the right to assign this Agreement, or any
portions thereof, including its rights with respect to the forfeiture of Shares pursuant to
Sections 2 and 3 above, to any person or persons.

          (c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (d) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (e) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.

          (f) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery or five days after deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto
at the address shown beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance with this
Section 9(f).

          (g) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (h) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (i) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (j) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to any
applicable conflicts of laws.

          (k) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the execution of this Agreement by legal
counsel of the Participant’s own choice or has voluntarily declined to seek such counsel; (iii)
understands the terms and consequences of this Agreement; and (iv) is fully aware of the legal and
binding effect of this Agreement.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	NASHUA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	11 Trafalgar Square, Second Floor	 	 
	 

	 	 	 	Nashua, NH 03063	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Address:	 	 

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Exhibit 10.2

NASHUA CORPORATION

Restricted Stock Unit Agreement

Granted Under 2008 Directors’ Plan

     This Restricted Stock Unit Agreement (this “Agreement”) is made this [       ] day of [           
], 20[ ] (the “Grant Date”), between Nashua Corporation, a Massachusetts corporation (the
“Company”), and [           ] (the “Participant”).

     1. Grant and Issuance of Shares.

     The Company shall issue to the Participant, and the Participant shall acquire and accept from
the Company, subject to the terms and conditions set forth in this Agreement and in the Company’s
2008 Directors’ Plan (the “Plan”), [       ] restricted stock units (individually, an “RSU” and
collectively, the “RSUs”). Each RSU represents the right to receive one share of common stock, par
value $1.00 per share, of the Company (the “Common Stock”) as provided in this Agreement. The
shares of Common Stock that are issuable upon vesting of the RSUs are referred to in this Agreement
as “Shares.” The Participant agrees that the Shares shall be subject to (without limitation) the
forfeiture provisions set forth in Section 2 of this Agreement and the restrictions on transfer set
forth in Section 4 of this Agreement.

     2. Vesting; Forfeiture.

          (a) The RSUs shall be vested 25% as of the Grant Date and, for as long as the Participant
continues to serve as a member of the Company’s Board of Directors, shall vest as to an additional
25% of the Shares subject to the RSUs at the end of each successive three-month period following
the Grant Date until fully vested.

          (b) Any Shares subject to the RSUs that have not vested on or before the date upon which the
Participant resigns or retires from, or ceases for any reason to be a member of, the Company’s
Board of Directors shall be forfeited to the Company.

     3. Distribution of Shares.

          (a) The Company shall not be obligated to issue to the Participant the Shares upon the vesting
of any RSU (or otherwise) unless the issuance and delivery of such Shares shall comply with all
relevant provisions of law and other legal requirements including, without limitation, any
applicable federal or state securities laws and the requirements of any stock exchange upon which
shares of Common Stock may then be listed.

          (b) The RSUs shall be settled, and the Shares subject to the RSUs shall be delivered to the
Participant, [drafting note – select one option: upon the / on the ___anniversary of / in
___equal annual installments beginning on the ___anniversary of] Participant’s retirement or
resignation from, or other event upon which the Participant ceases to be a member of, the Company’s
Board of Directors, but only if such retirement, resignation or other cessation of Board membership
is a “separation from service” as defined in Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”). [Optional provision: Notwithstanding the foregoing, the RSU shall be
settled, and the Shares subject to the RSUs

 

 

shall be delivered to the Participant, upon the Participant’s death or cessation of Board
membership due to disability.] Notwithstanding any provision of the Plan to the contrary, neither
the Company nor the Participant may accelerate or defer the delivery of the Shares, except as
provided in this Agreement.

          (c) If the Participant is a “specified employee” within the meaning of Section 409A of the
Code, and if any issuance of Shares hereunder is subject to the rule under Section 409A(a)(2)(B)(i)
of the Code, then such issuance of Shares shall be delayed until the earlier of (i) the date that
is six months and one day after the Participant has a “separation from service” as defined in
Section 409A of the Code or (ii) the death of the Participant.

     4. Restrictions on Transfer.

     The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of,
by operation of law or otherwise (collectively “transfer”) any RSUs, or any interest therein, that
are subject to the forfeiture provisions under Section 2 above, except that the Participant may
transfer such RSUs (i) to or for the benefit of any spouse, children, parents, uncles, aunts,
siblings, grandchildren and any other relatives approved by the Board of Directors (collectively,
“Approved Relatives”) or to a trust established solely for the benefit of the Participant and/or
Approved Relatives, provided that such RSUs shall remain subject to this Agreement
(including without limitation the restrictions on transfer set forth in this Section 4 and the
forfeiture provisions set forth in Section 2 above) and such permitted transferee shall, as a
condition to such transfer, deliver to the Company a written instrument confirming that such
transferee shall be bound by all of the terms and conditions of this Agreement or (ii) as part of
the sale of all or substantially all of the shares of capital stock of the Company (including
pursuant to a merger or consolidation), provided that, in accordance with the Plan, the
securities or other property received by the Participant in connection with such transaction shall
remain subject to this Agreement.

     5. Dividend and Other Shareholder Rights.

     Except as set forth in the Plan, neither the Participant nor any person claiming under or
through the Participant shall be, or have any rights or privileges of, a stockholder of the Company
in respect of the Shares issuable pursuant to the RSUs granted hereunder until the Shares have been
delivered to the Participant.

     6. Provisions of the Plan; Reorganization Event.

          (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.

          (b) Upon the occurrence of a Reorganization Event (as defined in the Plan), the repurchase and
other rights of the Company hereunder shall inure to the benefit of the Company’s successor and
shall apply to the cash, securities or other property which the RSUs were converted into or
exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as
they applied to the RSUs under this Agreement. If, in connection with a Reorganization Event, a
portion of the cash, securities and/or other property received upon the conversion or exchange of
the RSUs is to be placed into escrow to secure indemnification or

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similar obligations, the mix between the vested and unvested portion of such cash, securities
and/or other property that is placed into escrow shall be the same as the mix between the vested
and unvested portion of such cash, securities and/or other property that is not subject to escrow.

     7. Withholding Taxes; No Section 83(b) Election.

          (a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to the issuance of the Shares to the Participant or the
lapse of the forfeiture provisions provided for herein.

          (b) The Participant acknowledges that no election under Section 83(b) of the Code may be filed
with respect to this award.

     8. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the RSUs pursuant to Section 2 hereof is earned only by continuing service as a director of the
Company (not through the act of being elected or appointed as a director or purchasing shares
hereunder). The Participant further acknowledges and agrees that the transactions contemplated
hereunder and the vesting schedule set forth herein do not constitute an express or implied promise
of continued service as a director or engagement as an employee or consultant for the vesting
period, for any period, or at all.

          (b) Assignment. The Company shall have the right to assign this Agreement, or any
portions thereof, including its rights with respect to the forfeiture of the RSUs pursuant to
Section 2 above, to any person or persons.

          (c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (d) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (e) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.

          (f) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery or five days after deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto
at the address shown beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance with this Section
8(f).

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          (g) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (h) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (i) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (j) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to any
applicable conflicts of laws.

          (k) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the execution of this Agreement by legal
counsel of the Participant’s own choice or has voluntarily declined to seek such counsel; (iii)
understands the terms and consequences of this Agreement; and (iv) is fully aware of the legal and
binding effect of this Agreement.

          (l) Unfunded Rights. The right of the Participant to receive Common Stock pursuant to
this Agreement is an unfunded and unsecured obligation of the Company. The Participant shall have
no rights under this Agreement other than those of an unsecured general creditor of the Company.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	NASHUA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Name of Participant]	 	 
	 
	 	 	 	 	 	 
	 	 	Address:	 	 

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