Document:

FORWARD RATE LOCK AGREEMENT

 

AGREEMENT dated as of May 3, 2005 between Wachovia Bank, N.A.  (“Wachovia”), One Wachovia Center, DC-6, Charlotte, North Carolina 28288-0166 and Cole Credit Property Trust, Inc.  (“Borrower”, collectively and including Borrower, “Guarantors”), each having an address at 2555 E.  Camelback Road, Suite 400, Phoenix, AZ 85016.  

 

Preliminary Statement

 

WHEREAS, Borrower has submitted to Wachovia a loan application (the “Application”) for a mortgage loan in the approximate principal amount of $50,000,000 (a “Loan”) with regard to properties to be identified (the “Properties”).  

 

WHEREAS, Wachovia has not yet issued a commitment letter for the Loan (the “Commitment”) and, therefore, no commitment fee (the “Commitment Fee”) has been paid by Borrower thereunder.  

 

WHEREAS, Borrower has requested that Wachovia lock in advance the fixed per annum interest rate to be payable for the Loan (the “Rate Lock”) notwithstanding that all of Wachovia’s conditions to Rate Lock have not yet been fulfilled and satisfied by Borrower.  

 

	
             
 	
            WHEREAS, Wachovia is unwilling to Rate Lock unless Borrower and Guarantor(s) enter into this Agreement.  
 

 

NOW, THEREFORE, in consideration of $10.00 and the mutual covenants contained herein, and other good and valuable consideration, the parties hereby agree as follows: 

 

	
             
 	
            1.
 	
            Rate Lock Transaction.  
 

 

 (a)          Borrower shall be permitted to enter into a Rate Lock transaction with regard to the Loan subject to the terms of this Agreement.  Such transaction (a “Transaction”) shall be evidenced by a confirmation in the form attached hereto and made a part hereof as Exhibit A (a “Confirmation”) setting forth, among other things, the “Fixed Rate”, the “Specified Principal Amount” and the “Fixed Rate Period” of each Transaction.

 

 (b)          BORROWER ACKNOWLEDGES AND AGREES THAT WACHOVIA HAS NOT ISSUED, AND IS UNDER NO OBLIGATION TO ISSUE, A COMMITMENT AND IS ALLOWING BORROWER TO RATE LOCK IN RESPONSE TO BORROWERS REQUEST.  NEITHER THIS AGREEMENT NOR THE RATE LOCK CONSTITUTES, OR SHOULD BE DEEMED OR CONSTRUED TO CONSTITUTE, A COMMITMENT OR AGREEMENT BY WACHOVIA TO PROVIDE THE REQUESTED FINANCING.  

 

	
             
 	
            2.
 	
            Hedging Arrangements.  
 

 

 (a)          In order to effect a Transaction, Wachovia shall enter into certain hedging arrangements in its sole and absolute discretion through the purchase or sale of United States Treasury notes, bonds or futures contracts, options or swaps on such notes, bonds or futures contracts or other measures deemed necessary or appropriate by Wachovia (collectively, “Hedging Arrangements”).  

 

 (b)          If at any time during the Fixed Rate Period, Wachovia determines, in its sole discretion that the Hedging Arrangements will or have incurred losses equal to or greater than 50% of the Mandatory Lock Fee (as hereinafter defined) Borrower or Guarantor shall be required, no later than 2:00 pm (Charlotte, North Carolina time) on the third business day following notice of any such losses (the “Losses Payment Date”) to deposit with Wachovia by wire transfer of immediately available funds the amount of such losses which amount shall be known as the “Additional Mandatory Lock Fee”.  If Borrower or Guarantor fails to pay Wachovia the Additional Mandatory Lock Fee by the Losses Payment Date, Wachovia may, at its sole discretion, declare a default hereunder, in which event (i) the interest rate for the Loan will no
longer be fixed at the Fixed Rate, (ii) Wachovia shall unwind the Hedging Arrangements, and (iii) Wachovia’s only obligation to Borrower and Guarantor shall be to return the Mandatory Lock Fee less any (X) Breakage Costs (as hereinafter defined), and (Y) fees and expenses (including reasonable attorney’s fees) incurred by Wachovia in connection with the Loan (collectively, “Wachovia’s Expenses”).  If Wachovia’s Expenses exceed the Mandatory Lock Fee, Borrower or Guarantor shall pay Wachovia the difference within two (2) business days following the written notice thereof from Wachovia to either Borrower or Guarantor.  

 

 

 

 

3.           Breakage Costs.  In the event that a Transaction shall be entered into as evidenced by a Confirmation and either (a) the Loan relating thereto shall not be approved by Wachovia or shall not be closed and funded by Wachovia for any reason prior to the expiration of the Fixed Rate Period, (b) the actual maturity date of the Loan relating thereto shall differ from the “Loan Maturity Date” set forth in the applicable Confirmation and/or (c) the final principal amount of the Loan relating thereto shall differ from the Specified Principal Amount set forth in the applicable Confirmation, Borrower acknowledges and agrees that Wachovia may suffer or incur damages, losses, liabilities, costs, fees and expenses (including breakage, unwind and similar costs, fees and expenses) (collectively, the “Breakage Costs”).
Borrower shall be fully responsible for all Breakage Costs and Borrower shall pay the same upon demand to Wachovia.  Wachovia shall determine the amount of Breakage Costs in good faith using such methodology as Wachovia deems appropriate under the circumstances, and such determination shall be conclusive and binding.  Wachovia shall provide Borrower with a statement setting forth its determination of Breakage Costs.  

 

	
             
 	
            4.
 	
            Hedging Fees.  
 

 

 (a)          In order to be eligible to enter into a Transaction and as a condition precedent thereto, Borrower shall be required to pay to Wachovia a fee equal to the amount set forth in the applicable Confirmation (the “Mandatory Lock Fee”), which Mandatory Lock Fee may, at Wachovia’s option, be applied to the payment of all Breakage Costs.  In the event that Wachovia shall require an Additional Mandatory Lock Fees, as provided above, the term Mandatory Lock Fee shall mean the Mandatory Lock Fee and any Additional Mandatory Lock Fee.  The Mandatory Lock Fee shall be refundable provided that the applicable Loan is approved by Wachovia and actually closed and funded in accordance with this Agreement prior to the expiration of the applicable Fixed Rate Period.  Notwithstanding anything to the contrary contained in this
Agreement and without limiting any of Wachovia’s rights, if Borrower either (i) willfully fails or refuses to close the Loan or (ii) otherwise defaults under the Commitment (if issued), the entire Mandatory Lock Fee shall be non-refundable, be deemed immediately earned and may be retained by Wachovia.  

 

(b)           Borrower acknowledges and agrees that any Commitment Fee paid may, at Wachovia’s option, be applied to the payment of Breakage Costs.  If any portion of the Commitment Fee shall be applied by Wachovia to pay any Breakage Costs, Borrower shall be and remain fully liable to reimburse Wachovia upon demand for such applied amounts so that the Commitment Fee due under the Commitment shall have been paid in full as required under the Commitment (if a Commitment is issued) whether or not the Loan is closed or funded.  Notwithstanding anything to the contrary contained in the Commitment, in no event shall the Commitment Fee be returned or refunded to Borrower if a Transaction shall be outstanding unless and until all Breakage Costs have been paid in full.  

 

	
             
 	
            (c)
 	
            In no event may Borrower Rate Lock for a period in excess of one hundred eighty (180) days.  
 

 

5.             Rate Lock Guaranty.  Guarantors hereby jointly and severally, absolutely and unconditionally guaranty to Wachovia the prompt payment when due of all amounts required to be paid by Borrower to Wachovia under, relating to or in respect of this Agreement.  

 

6.             Representations and Warranties.  Borrower and each Guarantor, as applicable, hereby represents and warrants on behalf of itself as of the date hereof and as of the date of a Transaction that (a) Borrower and such Guarantors are (i) duly organized and formed, validly existing and in good standing in its state of formation and (ii) duly authorized to enter into and perform its obligations under this Agreement (and Borrower and each non-individual Guarantor shall, upon request, deliver simultaneously herewith an authorizing resolution and incumbency certificate acceptable to Wachovia), (b) this Agreement does not violate or conflict with any applicable law or regulation, organizational document or other document, instrument or agreement binding upon or affecting Borrower or Guarantors and all consents and approvals have
been obtained, (c) its obligations hereunder are legally binding and enforceable, (d) Wachovia has been and will be acting on an arm’s length basis with Borrower and not as Borrower’s agent, fiduciary, broker, advisor or consultant with respect to a Transaction and Borrower is relying solely upon the advice of its own advisors in connection with a Transaction and not upon the advice of Wachovia or any of its representatives and (e) Borrower is aware of the risks associated with a Rate Lock and a Transaction and is willing to assume those risks.

 

7.             Indemnity.  Borrower and Guarantors hereby agree to jointly and severally indemnify, defend and hold Wachovia harmless from and against all costs, fees and expenses (including attorneys’ fees and disbursements) incurred by Wachovia under or by reason of this Agreement and/or Rate Lock.

 

 

 

 

8.             Defaults.  In the event that a default shall occur under the Commitment (if issued) or this Agreement or otherwise under the Loan (including, without limitation, the commencement of a case under the U.S. Bankruptcy Code or other creditor protection action or proceeding by or with respect to Borrower or any Guarantor), Wachovia may, at its option, terminate the Transactions upon written notice to Borrower.  In such event, Borrower shall be and remain liable for all Breakage Costs as otherwise provided in this Agreement.

 

	
             
 	
            9.
 	
            Miscellaneous.
 

 

 (a)          The interest of Borrower hereunder may not be transferred or assigned without Wachovia’s prior written consent.

 

 (b)         No amendment, modification or waiver under this Agreement shall be effective unless in writing signed by the parties hereto.

 

 (c)          This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina.

 

 (d)         Each party hereto hereby waives the right to a trial by jury in any legal proceeding in connection with this Agreement or a Transaction.  In addition, Borrower and Guarantors hereby submit to the non-exclusive jurisdiction of North Carolina with respect to any actions or proceedings arising out of this Agreement or the subject matter hereof.

 

 (e)          The obligations of Borrower and Guarantors hereunder are absolute, unconditional and irrevocable and are not subject to any offset, defense, claim or counterclaim.

 

 (f)          Nothing contained herein shall be deemed a waiver or limitation of any term or condition contained in the Application or the Commitment.

 

 (g)         This Agreement represents the entire agreement and understanding of the parties with respect to its subject matter and supersedes all oral communications and prior warnings.

 

 (h)         This Agreement may be executed in one or more counterparts, each of which, when so executed, shall be deemed to be an original and all of which shall constitute one and the same agreement.

 

	
             
 	
            IN WITNESSS WHEREOF, the parties have duly executed this Agreement as of the date first above written.
 

 

	
             
 	
             

WACHOVIA NATIONAL BANK
 
	
             
 	
            By:
 	
            /s/ Krista H. Vance
 
	
            Name:
 	
            Krista H. Vance
 
	
            Title:
 	
            Vice President
 

 

	
             
 	
             

Cole Credit Property Trust, Inc.
 
	
             
 	
            By:
 	
            /s/ Blair D. Koblenz
 
	
             
 	
            Blair D. Koblenz
 
	
             
 	
            Executive Vice President
 

 

 

 

 

 

EXHIBIT A

 

Form of Confirmation

 

CONFIRMATION dated May 3, 2005 between Wachovia Bank, National Association (“Wachovia”) and Cole Credit Property Trust, Inc. (“Borrower”).

 

This Confirmation is entered into between Wachovia and Borrower pursuant to that certain Forward Rate Lock Agreement dated as of May 3, 2005 (the “Forward Agreement”) and is the “Confirmation” referred to in the Forward Agreement and is intended to confirm that terms of a Rate Lock.  Capitalized terms used herein shall have the meanings set forth in the Forward Agreement.

 

	
             
 	
            The terms of the Transaction are hereby confirmed as follows:
 

 

	
            1.
 	
            Transaction Type:
 	
            Forward Interest Rate Lock.

 
 
	
            2.
 	
            Mandatory Lock Fee:
 	
            2% payable by Borrower to Wachovia.

 
 
	
            3
 	
            Transaction Costs Fee:
 	
            N/A.

 
 
	
            4.
 	
            Lock Date:
 	
            May 3, 2005

 
 
	
            5.
 	
            Fixed Rate:
 	
            4.35% per annum (locked indices only - 3.89% 5-year UST + 0.46% 5-year swap spread; credit spread to be determined.

 
 
	
            6.
 	
            Specified Principal Amount:
 	
            $50,000,000.

 
 
	
            7.
 	
            Fixed Rate Period:
 	
            From the date hereof to and including 180 days.  The first 90 days of the rate lock are free; loans closed after the first 90 days will have the following premium added to the all-in rate:

8/4/05 - 9/3/05 = 5 basis points

9/4/05 - 10/3/05 = 10 basis points

10/4/05 - 11/3/05 = 15 basis points

 
 
	
            8.
 	
            Loan Maturity Date:
 	
            Approximately 60 months.

 
 

 

This Confirmation shall be void and of no effect unless the Mandatory Lock Fee is paid in immediately available funds simultaneously herewith.

	
             
 	
             

WACHOVIA NATIONAL BANK
 
	
             
 	
            By:
 	
            /s/ Krista H. Vance
 
	
            Name:
 	
            Krista H. Vance
 
	
            Title:
 	
            Vice President
 

 

	
             
 	
             

Cole Credit Property Trust, Inc.
 
	
             
 	
            By:
 	
            /s/ Blair D. Koblenz
 
	
             
 	
            Blair D. Koblenz
 
	
             
 	
            Executive Vice PresidentEX-10.1

Exhibit 10.1

FORM FOR U.S. EMPLOYEES

IKON OFFICE SOLUTIONS, INC.

2006 OMNIBUS EQUITY COMPENSATION PLAN

STOCK UNIT GRANT

The Human Resources Committee of the Board of Directors of IKON Office Solutions, Inc. has
determined to grant to you a stock unit that includes dividend equivalents under the IKON Office
Solutions, Inc. 2006 Omnibus Equity Compensation Plan (the “Plan”). The terms of the grant are set
forth in the Stock Unit Grant Agreement (the “Grant”) provided to you. The following provides a
summary of the key terms of the Grant; however, you should read the entire Grant, along with the
terms of the Plan, to understand the Grant fully.

SUMMARY OF STOCK UNIT GRANT

	 	 	 	 	 
	Participant:
	 	 	—	 
	Date of Grant:
	 	 	__________ __, 200_	 
	Total Number of Stock Units Granted:
	 	 	—	 
	Vesting Schedule*:
	 	1/3 on each of the third,
	 
	 	fourth and fifth anniversaries

	 
	 	of the Date of Grant

	Distribution of Stock Units:
	 	On each vesting date

* The Participant must be employed by the Company (as defined in the Plan) on the applicable
date for the stock units to become vested. If, on or after the Date of Grant, the Participant has
attained Normal Retirement Age (as defined in the Grant), an accelerated vesting schedule shall
apply. The accelerated vesting schedule is set forth in the Grant document.

1

IKON OFFICE SOLUTIONS, INC.

2006 OMNIBUS EQUITY COMPENSATION PLAN

STOCK UNIT GRANT AGREEMENT

This STOCK UNIT GRANT AGREEMENT, dated as of      , 200     (the “Date of Grant”), is
delivered by IKON Office Solutions, Inc. (“IKON”), to      (the “Participant”).

RECITALS

A. The IKON Office Solutions, Inc. 2006 Omnibus Equity Compensation Plan (the “Plan”) provides
for the grant of stock units (“Stock Units”), which represent the right to receive one or more
shares of common stock, no par value per share, of IKON (“Common Stock”), on a future distribution
date. The Plan also permits the granting of dividend equivalents with Stock Units.

B. The Human Resources Committee of the Board of Directors of IKON (the “Committee”) has
decided to make a Stock Unit grant, with dividend equivalents, subject to the terms and conditions
set forth in this Stock Unit Grant Agreement (the “Agreement”) and the Plan, as an inducement for
the Participant to promote the best interests of IKON and its shareholders and in consideration for
the Participant’s execution of a non-competition/non-solicitation agreement and/or the
Participant’s continued compliance with the non-competition/non-solicitation covenants contained in
any previously executed agreement. The Participant may receive a copy of the Plan by contacting
Shareholder Services at 610-296-8000.

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as
follows:

1. Grant of Restricted Stock Units. Subject to the terms and conditions set forth in this
Agreement and the Plan, IKON hereby grants to the Participant      Stock Units (the “Restricted
Stock Units” or “RSUs”). The RSUs are phantom rights that will become vested in accordance
Paragraph 3 and will be distributed in accordance with Paragraph 4 below. Except as otherwise
provided below, prior to the date on which the RSUs are distributed in accordance with Paragraph 4
below, the Participant will not be deemed to have any voting rights or dividend rights with respect
to any shares of Common Stock subject to this grant.

2. RSU Account. IKON shall establish and maintain an RSU account, as a bookkeeping account
on its records (the “RSU Account”), for the Participant and shall record in such RSU Account the
number of RSUs granted to the Participant. The Participant shall not have any interest in any fund
or specific assets of IKON by reason of this grant or the RSU Account established for the
Participant.

3. Vesting.

(a) The Participant will become vested in the RSUs awarded pursuant to this grant according to
the following vesting schedule, provided the Participant does not incur a termination of employment
with the Company (as defined in the Plan) prior to the applicable vesting date (the “Vesting
Date”):

(i) Except as provided in clauses (ii) or (iii) below, if applicable, the RSUs shall
vest upon the following Vesting Dates if the Participant is employed by the Company on the
applicable Vesting Date:

RSUs Vesting Date

[34%] [Third anniversary of the Date of Grant]

[33%] [Fourth anniversary of the Date of Grant] [33%] [Fifth anniversary of the Date of
Grant]

Notwithstanding the foregoing, once the Participant has attained Normal Retirement Age (as
defined in clause (ii) below), the vesting of the RSUs shall be as described in clause (ii)
or (iii) below, as applicable.

(ii) If, on or prior to the Date of Grant, the Participant has attained Normal
Retirement Age, the vesting schedule set forth in clause (i) shall not apply and, instead,
the RSUs shall vest upon the following Vesting Dates if the Participant is employed by the
Company on the applicable Vesting Date:

	 	 	 
	RSUs

	 	Vesting Date
	 

	 	 
	 
	 	 
	[25%]

	 	[First anniversary of the Vesting Date]

[25%] [Second anniversary of the Vesting Date] [25%] [Third anniversary of the Vesting
Date] [25%] [Fourth anniversary of the Vesting Date]

For purposes of this Agreement, the term “Normal Retirement Age” shall mean the Participant
has both (A) attained at least age 55, and (B) completed five years of employment with the
Company, which shall be based on the anniversary of the Participant’s first day of
employment with the Company.

(iii) If after the Date of Grant the Participant attains Normal Retirement Age, the
RSUs shall vest as follows:

(A) If the Participant attains Normal Retirement Age prior to [the third anniversary of
the Date of Grant], (x) on the next Vesting Date set forth in clause (ii) that occurs
immediately after the Participant attains Normal Retirement Age, the total number of RSUs
that would have been vested had the Participant attained Normal Retirement Age on the Date
of Grant shall become vested, provided the Participant is employed by the Company on such
Vesting Date, and (y) the vesting schedule provided in clause (ii) shall thereafter apply
with respect to the remaining unvested RSUs granted to the Participant pursuant to this
grant; or

(B) If the Participant attains Normal Retirement Age on or after [the third anniversary
of the Date of Grant], all RSUs that have not vested pursuant to clause (i) shall become
fully vested on the next Vesting Date under clause (i) that occurs immediately after the
Participant attains Normal Retirement Age, provided the Participant is employed by the
Company on such Vesting Date.

(b) Unless otherwise provided in an Employment Agreement between the Participant and the
Company which has been properly approved by the Company in accordance with established policy, if
the Participant terminates employment with the Company prior to the Vesting Date for any portion of
the RSUs, the RSUs that have not vested as of such Vesting Date shall terminate and the
corresponding shares of Common Stock shall be forfeited; provided, however, that if the Participant
terminates employment with the Company on account of death or Disability (as defined below), all of
the Participant’s unvested RSUs shall become vested as of the date of the Participant’s termination
of employment with the Company on account of death or Disability. For purposes of this Agreement,
the term “Disability” shall mean as such term is defined in IKON’s Long-Term Disability Plan.

4. Distribution. Once the RSUs vest pursuant to Paragraph 3, all of the RSUs then credited
to the Participant’s RSU Account that are vested as of such date (the “Distribution Date”) shall
become distributable (the “Distributable Units”). As soon as administratively practicable after
the Distribution Date, all Distributable Units will be converted to an equivalent number of shares
of Common Stock, and the Participant shall receive a single sum distribution of such shares of
Common Stock, which shall be issued under the Plan.

5. Dividend Equivalents. From the Date of Grant through the date the RSUs are distributed
pursuant to Paragraph 4, if any cash dividends are declared with respect to shares of Common Stock,
a cash payment will be paid to the Participant equal to the value of the dividend that would have
been paid if such RSUs granted to the Participant pursuant to this Agreement at the time of the
declaration of the dividend had been shares of Common Stock. The dividend equivalents will be paid
to the Participant as soon as administratively practicable after dividends are paid to shareholders
holding shares of Common Stock.

6.  Change in Control. The provisions set forth in the Plan applicable to a Change in
Control (as defined in the Plan) shall apply to the RSUs, and, in the event of a Change in Control,
the RSUs will be fully vested.

7. Acknowledgment by Participant. By receipt of this grant, the Participant hereby
acknowledges that with respect to any right to distribution pursuant to this Agreement, the
Participant is and shall be an unsecured general creditor of IKON without any preference as against
other unsecured general creditors of IKON, and the Participant hereby covenants for himself or
herself, and anyone at any time claiming through or under the Participant, not to claim any such
preference, and hereby disclaims and waives any such preference that may at any time be at issue,
to the fullest extent permitted by applicable law.

8. Restrictions on Issuance or Transfer of Shares of Common Stock.

(a) The obligation of IKON to deliver shares of Common Stock upon the distribution of the RSUs
shall be subject to the condition that if at any time the Committee shall determine in its
discretion that the listing, registration or qualification of the shares of Common Stock upon any
securities exchange or under any state or federal law, or the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of, or in connection with,
the issuance of shares of Common Stock, the shares of Common Stock may not be issued in whole or
in part unless such listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Committee. The issuance of the
shares of Common Stock and the payment of cash to the Participant pursuant to this Agreement is
subject to any applicable taxes and other laws or regulations of the United States or of any state
having jurisdiction thereof.

(b) The Participant understands and agrees that the sale of any shares of Common Stock
received by the Participant pursuant to this grant will be subject to, and must comply with, the
IKON’s Insider Trading Policy.

(c) As soon as reasonably practicable after the Distribution Date, a certificate representing
the shares of Common Stock that are distributed shall be issued to the Participant.

9. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of
which are incorporated herein by reference, and in all respects shall be interpreted in accordance
with the Plan. In the event of any contradiction, distinction or difference between this Agreement
and the terms of the Plan, the terms of the Plan will control. This grant is subject to the
interpretations, regulations and determinations concerning the Plan established from time to time
by the Committee in accordance with the provisions of the Plan, including, but not limited to,
provisions pertaining to (i) rights and obligations with respect to withholding taxes, (ii) the
registration, qualification or listing of the shares of Common Stock, (iii) changes in
capitalization of IKON, and (iv) other requirements of applicable law. The Committee shall have
the authority to interpret and construe this grant pursuant to the terms of the Plan, and its
decisions shall be conclusive as to any questions arising hereunder. By receiving this grant, the
Participant hereby agrees to be bound by the terms and conditions of the Plan and this Agreement.
The Participant further agrees to be bound by the determinations and decisions of the Committee
with respect to this Agreement and the Plan and the Participant’s rights to benefits under this
Agreement and the Plan and agrees that all such determinations and decisions of the Committee shall
be binding on the Participant, his or her beneficiaries and any other person having or claiming an
interest under this Agreement and the Plan on behalf of the Participant.

10. No Rights as Shareholder. The Participant shall not have any rights as a shareholder
of IKON, including the right to any cash dividends (except as provided in Paragraph 5), or the
right to vote, with respect to any RSUs.

11. No Guarantee of Continued Employment. The grant of the RSUs and dividend equivalents
shall not confer upon the Participant any right to be retained by, or in the employ of, the Company
and shall not interfere in any way with the right of the Company to terminate the Participant’s
employment at any time. The right of the Company to terminate at will the Participant’s employment
at any time for any reason is specifically reserved.

12. Assignment and Transfers. No RSUs or dividend equivalents awarded to the Participant
under this Agreement may be transferred, assigned, pledged or encumbered by the Participant, and
RSUs and dividend equivalents shall be distributed during the lifetime of the Participant only for
the benefit of the Participant; provided, however, that in the event of the Participant’s death,
the shares of Common Stock subject to the RSUs shall be issued (subject to the limitations
specified in the Plan) solely to the legal representatives of the Participant, or by the person who
acquires the right to receive the shares of Common Stock subject to the RSUs by will or by the laws
of descent and distribution, to the extent that the RSUs subject to this grant are otherwise vested
pursuant to this Agreement. Any attempt to transfer, assign, pledge or encumber the RSUs or
dividend equivalents by the Participant shall be null, void and without effect. The rights and
protections of IKON hereunder shall extend to any successors or assigns of IKON.

13. Tax Consequences and Withholding. The value of the RSUs distributed upon vesting and
the payment of dividend equivalents is treated as taxable income to the Participant, subject to
withholding, and the Participant (or the Participant’s legal representative in the event of death)
shall be solely responsible for all tax consequences that result from the vesting and distribution
of the RSUs, as well as any subsequent sale of shares of Common Stock received upon distribution of
the RSUs, and the payment of dividend equivalents. The Participant (or the Participant’s legal
representatives in the event of death) shall pay to the Company, or make other arrangements
satisfactory to the Company to provide for the payment of, any federal, state, local or other taxes
that the Company is required to withhold with respect to the vesting and distribution of the RSUs
and the payment of dividend equivalents. The Participant may elect to satisfy any tax withholding
obligation of the Company with respect to the RSU by having shares of Common Stock withheld up to
an amount that does not exceed the minimum applicable withholding tax rate for federal (including
FICA), state, local and other tax liabilities.

14. Effect on Other Benefits. The value of shares of Common Stock and dividend equivalents
distributed with respect to the RSUs shall not be considered eligible earnings for purposes of any
other plans maintained by the Company. Neither shall such value be considered part of the
Participant’s compensation for purposes of determining or calculating other benefits that are based
on compensation, such as life insurance.

15. Applicable Law. The validity, construction, interpretation and effect of this
Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania, without giving effect to the conflicts of laws provisions thereof.

16. Notice. Any notice to IKON provided for in this instrument shall be addressed to IKON
in care of Shareholder Services at the principal corporate office of IKON, and any notice to the
Participant shall be addressed to such Participant at the current address shown in the records of
IKON, or to such other address as the Participant may designate to IKON in writing. Any notice
shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as
stated above, registered and deposited, postage prepaid, in a post office regularly maintained by
the United States Postal Service.

17. Potential Deferral. To the extent the Participant is eligible to participate in the
IKON Office Solutions, Inc. Executive Deferred Compensation Plan (the “Executive Plan”), the
Participant may be able to defer all or part of the Participant’s RSUs subject to the terms of the
Executive Plan and section 409A of the Internal Revenue Code of 1986, as amended. If an eligible
Participant desires to defer all or a portion of his or her RSUs, the Participant must contact
Shareholder Services since certain restrictions will apply.

18. Section 409A of the Code. Notwithstanding anything in the Plan or this Agreement to
the contrary, the Committee may, without the Participant’s consent, amend this Agreement to comply
with the requirements of section 409A of the Code and any corresponding guidance and regulations
issued under section 409A of the Code to the extent it is subsequently determined, in the sole
discretion of the Committee, that such amendments are necessary for this grant to comply with the
requirements of section 409A of the Code, if applicable.

IN WITNESS WHEREOF, IKON has caused its duly authorized officer to execute this Stock Unit
Grant Agreement effective as of the Date of Grant.

IKON OFFICE SOLUTIONS, INC.

By:

Name:

Title:

2

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