Document:

Exhibit 10.4

 

LEHMAN BROTHERS HOLDINGS INC.

 

AGREEMENT EVIDENCING A GRANT OF A

NON-QUALIFIED STOCK OPTION

 

TO

 

	
   

  	
   

  	
  $

  
	
  Number of Common Shares

  	
   

  	
  Exercise Price

  
	
  Subject to Options

  	
   

  	
  Per Share

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Grant

  	
   

  	
  Option Exercisability Dates

  

 

1)              Grant of Options. Pursuant to the Lehman Brothers Holdings
Inc. Employee Incentive Plan (the “Plan”), Lehman Brothers Holdings Inc. (the “Company”)
hereby grants you, as of the Date of Grant specified above, a nonqualified
stock option to purchase the number of common shares (par value $0.10 per
share) of the Company (“Common Stock” or “Shares”) specified above (which
number of Shares may be adjusted pursuant to Paragraph 8 below) at the price
per Share specified above (the “Option Price”).

 

2)              Additional Documents; Definitions. Enclosed you will find a
copy of the Plan which is incorporated in this instrument by reference and made
a part hereof, and a copy of the Plan prospectus.  The Plan and the prospectus then in effect
should be carefully examined before any decision is made to exercise the
option.  All capitalized terms not
defined herein shall have the meaning ascribed to such terms under the Plan.

 

3)              Exercisability. Subject to the provisions of this Agreement
and the applicable provisions of the Plan, you may exercise this option as
follows:

 

a)              No
part of this option may be exercised after                
(the “Expiration Date”).  In addition,
unless otherwise determined by the Board of Directors (the “Board”) of the
Company, no part of this option may be exercised before the Option
Exercisability Dates set forth herein;

 

b)             At
any time or times on or after               
and thereafter through the Expiration Date you may exercise this option as to                
Shares;

 

c)              At
any time or times on or after                
and thereafter through the Expiration Date you may exercise this option as to
an additional                  
Shares; and

 

 

d)             At
any time or times on or after                
and thereafter through the Expiration Date, you may exercise this option as to
an additional                
Shares.

 

4)              This
option may not be exercised for a fraction of a Share.

 

5)              Conditions to Exercise.  This
option may not be exercised by you unless all of the following conditions are
met:

 

a)              Legal
counsel for the Company must be satisfied at the time of exercise that the
issuance of Shares upon exercise will be in compliance with the Securities Act
of 1933, as amended, and applicable U.S. federal, state, local and foreign
laws;

 

b)             You
must pay, at the time of exercise or as otherwise permitted by the Committee,
the full exercise price for the Shares being acquired hereunder, by (i) paying
by cash in United States dollars or other currency acceptable to the Committee
(which may be in the form of a certified check), (ii) subject to the Company’s
prior consent, tendering Shares owned by you which have a Fair Market Value on
the day of exercise equal to the full exercise price for the Shares being
acquired, (iii) subject to the Company’s prior consent, by withholding from
those Shares that would otherwise be obtained upon exercise a number of Shares
having a Fair Market Value equal to the option price and/or required
withholding taxes, (iv) subject to the Company’s prior consent, by delivery of
a properly executed exercise notice together with irrevocable instructions to a
securities broker (or, in the case of pledges, lender) approved by the Company
to, (a) sell shares of Common Stock subject to the option and to deliver
promptly to the Company a portion of the proceeds of such sale transaction on
your behalf sufficient to pay the option price, or (b) pledge shares of Common
Stock subject to the option to a margin account maintained with such broker or
lender, as security for a loan, and such broker or lender, pursuant to
irrevocable instructions, delivers to the Company the loan proceeds, sufficient
to pay the option price, or (v) by any combination of (i), (ii), (iii), or (iv)
above.

 

c)              On
the date of your termination of service as a director you (or in the event of
your death, your estate or any person who acquires the right to exercise this
option by bequest or inheritance or by reason of your death) may exercise this
option for all               
shares at any time until                .

 

6)              Limitation on Obligations. 
Holdings’ obligations with respect to the options granted hereunder is
limited to the delivery of shares of Common Stock on the date when you properly
exercise an option granted hereunder and satisfy the Conditions to Exercise
specified in Paragraph 5.

 

7)              Non-Assignment.  This
option may not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed by you, except to your immediate family members and except
by will or the laws of descent and distribution and is exercisable during your
lifetime only by you or any immediate family members to whom options are
assigned by you.  If you or anyone
claiming under or through you attempts to violate this Paragraph 7, such
attempted violation

 

 

shall
be null and void and without effect, and the Company’s obligation to make any
further payments (stock or cash) hereunder shall terminate.

 

8)              Equitable Adjustment.  In the event of any change in the outstanding
shares of Common Stock by reason of any Common Stock dividend or split,
recapitalization, merger, consolidation, spin-off, combination or exchange of
shares or other corporate exchange, or any distribution to stockholders of
Common Stock other than regular cash dividends, occurring after the Date of
Grant specified above and prior to the exercise of the option in full, the
number and kind of shares of Common Stock for which this option may then be
exercised and the option price shall be adjusted so as to reflect such change.

 

9)              Change in Control. 
This option is entitled to the right described in Section 6(d) of
the Plan which have been granted by the Committee; provided, however, that if
the Change in Control occurs with the prior approval of a majority of the
independent members of the Incumbent Board, the Limited Rights shall be
effective with respect to only one-half of the options which are then not
exercisable, and if applicable, in substitution of the remaining one-half of
the options which are then not exercisable, an amount of cash or equity equal
to the highest price paid by an acquirer in excess of the option exercise price
shall be deferred for the shorter of two years or the term of any remaining
restrictions but such cash or equity shall remain otherwise subject to all
issuance restrictions during such period.

 

10)        Amendment.  The terms
of this Agreement may be amended from time to time by the Board in its sole
discretion in any manner that it deems appropriate (including, but not limited
to, the acceleration provisions).

 

11)        No Right to Continued Service.  Neither the grant nor the exercise of the
option shall confer on you any right to be retained in the service of the
Company or to receive subsequent options or other Awards under the Plan.  The right of the Company to terminate your
service with it at any time or as otherwise provided by any agreement between
the Company and you is specifically reserved.

 

12)        No Rights of a Stockholder. 
Neither you (nor, in the event of your assignment to a family member or
your death, any person acting under Paragraph 7 above) shall have any of the
rights of a stockholder with respect to Shares subject to the option except to
the extent that such Shares of Common Stock shall have been issued to you (or,
in the event of your assignment to a family member or your death, any person
acting under Paragraph 6 above) upon the exercise of the option.

 

13)        Applicable Law.  The
validity, construction, interpretation, administration and effect of the Plan,
and of its rules and regulations, and rights relating to the Plan and to this
Agreement, shall be governed by the substantive laws, but not the choice of law
rules, of the State of Delaware.

 

14)        Withholding.  The
Company shall have the right to deduct from all amounts payable to you in cash,
any taxes required by law to be withheld therefrom.  It shall be a condition to the obligation of
the Company to issue Shares upon exercise of an option hereunder (a) that you

 

 

(or,
in the event of your death, your beneficiary or any person acting on behalf of
your estate) pay to the Company or its designee, upon its demand, in accordance
with the Plan, such amount as may be required for the purpose of satisfying its
obligation or the obligation of any other person to withhold withholding taxes
incurred by reason of the exercise of the option and (b) that you (or, in the
event of your death, your beneficiary or any person acting on behalf of your
estate) provide the Company with any forms, documents or other information
reasonably required by the Company in connection with the grant.  If the amount requested for the purpose of
satisfying the withholding obligation is not paid, the Company may refuse to
furnish Shares upon exercise of the option.Exhibit 4A

 

AMENDMENT TO RIGHTS AGREEMENT

 

This Amendment (the “Amendment”), dated and effective
as of December 6, 2004 and executed among Ecolab Inc., (the “Company”), Equiserve
Trust Company, N.A. (“Equiserve”) and Computershare Investor Services, LLC (“Computershare”),
hereby amends the Rights Agreement originally between the Company and First
Chicago Trust Company of New York dated as of February 24, 1996 (the “Rights
Agreement”).

 

W
I T N E S S E T H

 

WHEREAS,
the Company and First Chicago Trust Company of New York previously entered into
the Rights Agreement, pursuant to which First Chicago was appointed to serve as
the Rights Agent; and

 

WHEREAS,
Equiserve was appointed as successor Rights Agent pursuant to the amendment effective
on November 5, 2001; and

 

WHEREAS, Equiserve desires to
resign as Rights Agent and the Company desires to accept such resignation and
appoint Computershare as successor Rights Agent under the Rights Agreement, and

 

WHEREAS,
in connection with the resignation of Equiserve as Rights Agent and the
appointment of Computershare as successor Rights Agent, the Company, Equiserve
and Computershare desire to amend the Rights Agreement in certain respects.

 

NOW,
THEREFORE, in consideration of the promises and the mutual
agreements herein set forth, the parties agree as follows:

 

Section 1.
 Resignation
of Rights Agent.  Equiserve hereby
resigns as Rights Agent under the Rights Agreement and the Company hereby
accepts Equiserve’s resignation.

 

Section 2.  Appointment of the Successor Rights Agent.  The Company hereby appoints Computershare as
successor Rights Agent under the Rights Agreement and Computershare hereby
accepts such appointment.

 

Section 3.  Amendment of Rights Agreement.  The Rights Agreement shall be further amended
as follows:

 

(a)                                  “Computershare
Investor Services, LLC” shall be substituted throughout the Rights Agreement,
Exhibits and other attachments for “Equiserve Trust Company, N.A.” including
substituting all abbreviations therefore.

 

(b)                                 Section 21
of the Rights Agreement is hereby amended to read in its entirety as follows:

 

 

Section 21.  Change
of Rights Agent.  The Rights Agent or any successor Rights
Agent may resign and be discharged from its duties under this Agreement upon
thirty (30) days’ notice in writing mailed to the Company, and to each transfer
agent of the Common Stock and Preferred Stock, by registered or certified mail,
and to the holders of the Rights Certificates by first-class mail. The Company
may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’
notice in writing, mailed to the Rights Agent or successor Rights Agent, as the
case may be, and to each transfer agent of the Common Stock and Preferred
Stock, by registered or certified mail, and to the holders of the Rights Certificates
by first-class mail. If the Rights Agent shall resign or be removed or shall
otherwise become incapable of acting, the Company shall appoint a successor to
the Rights Agent. If the Company shall fail to make such appointment within a
period of thirty (30) days after giving notice of such removal or after it has
been notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Rights Certificate (who shall,
with such notice, submit his Rights Certificate for inspection by the Company),
then any registered holder of any Rights Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be a
corporation, trust company, or limited liability company organized and doing
business under the laws of the United States or of any state of the United
States, in good standing, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or
examination by federal or state authority.

 

After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally
named as Rights Agent without further act or deed; but the predecessor Rights
Agent shall deliver and transfer to the successor Rights Agent any property at
the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective
date of any such appointment, the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Stock
and the Preferred Stock, and mail a notice thereof in writing to the registered
holders of the Rights Certificates. Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be.

 

(c)                                  Section 26
of the Rights Agreement is hereby amended by deleting the address for notice or
demand to be given to the Rights Agent by the Company and substituting in lieu
therefor the following:

 

2

 

Computershare
Investor Services, LLC

2
North LaSalle Street

Chicago,
Illinois 60602

Attention:  Relationship Manager

 

with a
copy to:

 

Computershare
Investor Services, LLC

2
North LaSalle Street

Chicago,
Illinois 60602

Attention:  Director of Relationship Management

 

Section 5. 
Continued Effectiveness. The parties hereto hereby acknowledge
and agree that, except as specifically supplemented and amended, changed or
modified hereby, the Rights Agreement, as previously amended to the date
hereof, shall remain in full force and effect in accordance with its terms.

 

Section 6. 
Execution in Counterparts. 
This Amendment may be executed in any number of counterparts and each of
such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute one and the same instrument.

 

Section 7.  Terms. 
Except as otherwise expressly provided herein, or unless the context
otherwise requires, all terms used herein have the meanings assigned to them in
the Rights Agreement.

 

[Signature Page Follows]

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and effective as of the day and year above written.

 

 

	
   

  	
  ECOLAB INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/Lawrence T. Bell

  
	
   

  	
   

  	
    Lawrence T. Bell

  
	
   

  	
  Its

  	
    Senior Vice President, General Counsel

    and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EQUISERVE TRUST
  COMPANY, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/Thomas Tighe

  
	
   

  	
   

  	
    Thomas Tighe

  
	
   

  	
  Its

  	
    Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMPUTERSHARE
  INVESTOR

  SERVICES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/Cynthia Nisley

  
	
   

  	
   

  	
    Cynthia Nisley

  
	
   

  	
  Its

  	
    Director of Relationship Management

  
				

 

4

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