Document:

exv10w42

Exhibit 10.42

SALARY RESTRICTED STOCK AWARD GRANT NOTICE

Employee Name:

	 	 	 
	Number of Shares of Restricted Stock Subject to Grant:

	 	[See Section 3]
	 
	 	 
	Date of Grant:

	 	[See Section 2]
	 
	 	 
	Closing Price on Date of Grant:

	 	[See Section 3]

THIS SALARY RESTRICTED STOCK AWARD GRANT NOTICE (this “Notice”) is made as of the date in the box
above labeled “Date of Grant” by Huntington Bancshares Incorporated, a Maryland corporation and its
subsidiaries (the “Company”), and is hereby communicated to the employee named in the box above
(the “Employee”).

     WHEREAS, the Company desires to grant the Employee an award of Restricted Stock to serve as
additional base compensation for the Employee’s employment with the Company.

     NOW, THEREFORE, in consideration of the premises, the Company grants the Employee an award of
Restricted Stock under the following terms and conditions:

1. Grant of Restricted Stock.

     The Company, as payment of a portion of the Employee’s annual base salary and by authority of
its Board of Directors (the “Board”), hereby grants to the Employee an award of the number of
shares of Restricted Stock to be issued in accordance with all of the terms and conditions set
forth in this Notice. The Restricted Stock will be issued and registered in the name of the
Employee, subject to the restrictions set forth in this Notice.

This award of Restricted Stock is subject to all the terms, conditions and limitations of the
Amended and Restated 2007 Stock and Long-Term Incentive Plan (the “Plan”) and any successor plan.
The Restricted Stock Awards are subject to such rules and regulations that the Compensation
Committee of the Company’s Board of Directors (the “Committee”) may adopt for administration of the
Plan, and to all applicable laws, rules and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. In event of a conflict between this
Notice and one or more provisions of the Plan, the provisions in the Plan shall govern.

The amount of your annual base salary earned for 2010 and for any year thereafter that shall be
payable in Restricted Stock is $                     (“Salary Restricted Stock”) unless otherwise determined
from time to time by the Committee or the Board.

2. Date of Grant.

     For purposes of this Grant, each “Date of Grant” for this award of Restricted Stock shall be
the pay date for each semi-monthly pay period beginning with the pay period that begins on January
1, 2010, and continuing consistent with the Company’s payroll procedures until this Salary
Restricted Stock program is terminated by request of the Committee.

3. Number of Shares.

     The number of shares of Restricted Stock awarded on each Date of Grant shall be determined by
dividing the Employee’s Salary Restricted Stock described in Section 1 that is payable for the
applicable semi-monthly pay period, net of any applicable tax withholdings and deductions as
described in this Notice, by the closing stock price for a share of the Company’s common stock on
the

 

 

NASDAQ Global Select Market on such Date of Grant. If any fractional share results, the share
amount shall be rounded down to the nearest whole share.

4. Vesting and Forfeiture Provisions.

     The shares awarded on a Date of Grant will be immediately 100% vested as of the Date of Grant.
The shares will not be subject to any risk of forfeiture or any requirement of future service.

5. Withholding Taxes.

     The Company will satisfy applicable tax withholding obligations and make applicable deductions
with respect to the Salary Restricted Stock on the Date of Grant.

6. Conditions to Delivery of Shares.

     The shares of Restricted Stock subject to this Grant may be either previously authorized but
unissued shares or issued shares which have been reacquired by the Company. The Company shall not
be required to issue shares of stock hereunder prior to fulfillment of all of the following
conditions: (a) the admission of such shares to listing on all stock exchanges on which such class
of stock is then listed; (b) the completion of any registration or other qualification of such
shares under any State or Federal law or under the rulings or regulations of the Securities and
Exchange Commission or any other governmental regulatory body, which the Committee shall, in its
absolute discretion, deem necessary or advisable; (c) the obtaining of any approval or other
clearance from any State or Federal governmental agency, which the Committee shall, in its absolute
discretion, determine to be necessary or advisable; and (d) the lapse of such reasonable period of
time following the Date of Grant and during which the Committee reasonably believes that the
issuance of shares would violate any applicable laws, government regulations, requirements of any
securities exchange on which the Company’s Shares are traded, or any insider trading policy of the
Company.

7. Restriction on Transferability.

     The shares of Restricted Stock subject to this Grant may not be sold, transferred, pledged,
assigned, or otherwise disposed of until the later to occur of (1) or (2) below:

     (1) The date that is six months after the Date of Grant.

     (2) The earliest to occur of the following events: (A) 6 months after the repayment of any
loan issued to the Company under the Troubled Asset Relief Program (“TARP”), (B) January 1, 2012,
or (C) a Change in Control of the Company.

Notwithstanding the foregoing, if the Employee dies before the Company has distributed any portion
of the shares of Restricted Stock, the Company will immediately release such shares and transfer
any such shares in accordance with the Employee’s written beneficiary designation or to the
Employee’s estate if no written beneficiary designation is provided. If the Employee did not have
a will, any shares payable will be distributed in accordance with the laws of descent and
distribution.

Any attempted transfer in violation of the provisions of this paragraph shall be void, and the
purported transferee shall obtain no rights with respect to such Restricted Stock.

8. Issuance of Shares of Restricted Stock Granted.

     The Company shall hold the shares of Restricted Stock granted to the Employee electronically
with its transfer agent in the name of the Employee and for the benefit of the Employee until the
shares represented thereby are to be delivered.

9. Rights as Stockholder.

     Subject to the limitations provided in this Notice, the Employee shall have all the rights of
a stockholder of the Company, including voting rights and the right to receive dividends, with
respect to shares of Restricted Stock that have not yet been delivered.

10. Not an Employment Agreement.

     Nothing in this Notice shall be construed as giving the Employee any right to continued
employment by the Company or affect the right of the Company to terminate or alter the terms of the
Employee’s employment (including the rate of compensation payable to the Employee).

 

 

11. Effect on Other Plans and Benefits.

     Except as required by applicable law, the award of Restricted Stock under this Notice and any
dividends paid on such Restricted Stock will not be taken into account as any compensation in
determining the amount of any benefit or payment under any pension, retirement, profit-sharing,
nonqualified deferred compensation, incentive plans, change in control, or other benefit plan of
the Company. Salary Restricted Stock is intended to have a neutral impact on all benefit and
compensation programs under which the Employee participates.

12. Capital Adjustment Provisions.

     In the event of a stock split, stock dividend, reclassification, reorganization,
redesignation, or other change in the Company’s capitalization or corporate structure, the number
and class of shares of Restricted Stock shall be proportionately adjusted or substituted to reflect
such change, and such shares shall be subject to the same restrictions as the shares of Restricted
Stock covered by this Notice.

13. Authority of the Compensation Committee.

     The Committee shall have the power to construe and interpret the provisions of this Notice and
may correct any defect, supply any omission or reconcile any inconsistency in the Notice in the
manner and to the extent it shall deem desirable to carry the Notice into effect. Further, the
Committee shall make all other determinations which may be necessary or advisable for the
administration of the Notice. All determinations and decisions made by the Committee shall be
final, conclusive, and binding on all persons, including the Company, the Employee, and the
Employee’s estate and beneficiaries.

The Committee may, in its sole discretion and without the executive’s consent, terminate modify or
suspend this compensation structure at any time.

14. Addresses for Notices.

     Any notice to be given to the Company under the terms of this Notice shall be addressed to the
Company, in care of the Compensation Director, at Huntington Bancshares Incorporated, Huntington
Center, HC0318, 41 S. High Street, Columbus, Ohio 43287, or at such other address as the Company
may hereafter designate in writing. Any Notice to be given to the Employee shall be addressed to
the Employee at the address maintained on the books and records of the Company.

15. Captions.

     Captions provided herein are for convenience only and are not to serve as a basis for
interpretation or construction of this Notice.

16. Notice Severable.

     In the event that any provision in this Notice shall be held invalid or unenforceable, such
provision shall be severable from, and such invalidity or unenforceability shall not be construed
to have any effect on, the remaining provisions of this Notice.

17. Expenses.

     Costs of administration of the terms and conditions of this Notice will be paid by the
Company.

18. Governing Law / Compliance with Applicable Law / TARP.

     The terms and conditions of this Notice shall be governed by the laws of the State of Ohio,
except to the extent preempted by federal law. The Company and the Employee acknowledge that this
Notice will be administered in accordance with the requirements that may apply under any applicable
federal law, including the Emergency Economic Stabilization Act of 2008 as amended from time to
time, including as amended by the American Recovery and Reinvestment Act of 2009, and all
regulations and guidance promulgated thereunder (“EESA”). Restricted Stock granted under this
Notice also is subject to applicable regulations under the Interim Final Rule for TARP Standards
for Compliance and Corporate Governance issued by the United States Department of Treasury on June
15, 2009.

 

 

19. Entire Notice; Amendment.

     This Notice contains the terms and conditions with respect to the subject matter hereof and
supersede any previous agreements, written or oral, relating to the subject matter hereof. The
Company may not amend, alter, suspend, discontinue or terminate any provision of this Notice in a
manner that may adversely affect the Employee without the Employee’s (or his legal
representative’s) written consent.

Notwithstanding the foregoing, in the event that all or any portion of this Notice is found to be
in conflict with the requirements of EESA or TARP, then in such event this Notice shall be
automatically modified to reflect the requirements of the law, regulation and/or guidance, and this
Notice shall be interpreted and administered accordingly. The Employee agrees to repay immediately
any amounts of Salary Restricted Stock that are later determined to be found in conflict with EESA
or TARP.

Please retain this Notice, as it is the official statement of the key terms of your award. If you
have any questions regarding the administration of this Notice, please contact Joan Snyder at (614)
480-4885 or Holly Bush at (614) 480-3011.

	 	 	 
	/s/ Stephen D. Steinour

	 	January 8, 2010
	 

	 	 
	Chairman, President and Chief Executive Officer

	 	Dateexv10w14

Exhibit 10.14

NONEMPLOYEE DIRECTOR

AMENDED AND RESTATED STOCK INCENTIVE PLAN (2006)

STOCK OPTION AGREEMENT

(NSO)

     THIS AGREEMENT, made this                     day of                     , 200___by and between Graco Inc., a Minnesota
corporation (the “Company”) and «NAME» (the “Nonemployee Director”).

     WITNESSETH THAT:

     WHEREAS, the Company pursuant to the Graco Inc. Amended and Restated Stock Incentive Plan
(2006) (the “Plan”) wishes to grant this stock option to Nonemployee Director.

     NOW THEREFORE, in consideration of the premises and of the mutual covenants herein contained,
the parties agree as follows:

	1.	 	Grant of Option
	 
	 	 	The Company grants to Nonemployee Director the right and option (the “Option”) to purchase
all or any part of an aggregate of «Shares» shares of Common Stock of the Company, par value
$1.00 per share, at the price of «Price» per share on the terms and conditions set forth
herein. This is a nonstatutory stock Option which does not qualify for special tax
treatment under Sections 421 or 422 of the Internal Revenue
Code. The date of grant is                                             (the
“Date of Grant”)
	 
	2.	 	Duration and Exercisability

	 	A.	 	No portion of this Option may be exercised by Nonemployee Director until the
first anniversary of the Date of Grant, and then only in accordance with the Vesting
Schedule set forth below. In no event shall this Option or any portion of this Option
be exercisable following the tenth anniversary of the Date of Grant.
	 
	 	 	 	Vesting Schedule

	 	 	 	 	 
	 	 	Portion of Option	 
	Date	 	Exercisable	 
	First Anniversary of Date of Grant
	 	 	25	%
	Second Anniversary of Date of Grant
	 	 	50	%
	Third Anniversary of Date of Grant
	 	 	75	%
	Fourth Anniversary of Date of Grant
	 	 	100	%

	 	 	 	If Nonemployee Director does not purchase in any one year the full number of shares
of Common Stock of the Company to which he/she is entitled under this Option, he/she
may, subject to the terms and conditions of Section 3 hereof, purchase such shares of
Common Stock in any subsequent year during the term of this Option. The Option shall
expire as of the close of trading at the national securities exchange on which the
Common Stock is traded (“Exchange”) on the tenth anniversary of the Date of Grant, or
if the Exchange is closed on

Nonemployee Director Stk Opt Agmt 4/2009

 

 

	 	 	 	the anniversary date, or the Common Stock of the Company is not trading on said
anniversary date, such earlier business day on which the Common Stock is trading on
the Exchange.

	 	B.	 	During the lifetime of Nonemployee Director, the Option shall be exercisable
only by him/her and shall not be assignable or transferable by him/her otherwise than
by will or the laws of descent and distribution.
	 
	 	C.	 	Under no circumstances may the Option granted by this Agreement be exercised
after the term of the Option expires.

	3.	 	Effect of Termination of Membership on the Board

	 	A.	 	In the event Nonemployee Director ceases being a director of the Company for
any reason other than the reasons identified in Section 3B below, Nonemployee Director
shall have the right to exercise the Option as follows:

	 	(1)	 	If Nonemployee Director was a member of the Board of Directors of
the Company for five (5) or more years, the portion of the Option not yet
exercisable shall become immediately exercisable upon the date Nonemployee
Director ceases being a director. Nonemployee Director may exercise all or any
portion of the Option not yet exercised for a period beginning on the day after
the date of Nonemployee Director’s ceasing to be a director and ending at the
close of trading on the Exchange on the tenth anniversary of the Date of Grant,
provided that if Nonemployee Director dies during the period between the date of
Nonemployee Director ceasing to be a director and the expiration of the Option,
the executor(s) or administrator(s) of Nonemployee Director’s estate, or any
person(s) to whom the Option was transferred by will or the applicable laws of
distribution and descent may exercise the unexercised portion of the Option at
any time during a period beginning the day after the date of Nonemployee
Director’s death and ending at the close of trading on the Exchange on the
anniversary of death one (1) year later. In no event shall the Option be
exercisable following the tenth anniversary of the Date of Grant.
	 
	 	(2)	 	If Nonemployee Director was a member of the Board of Directors of
the Company for less than five (5) years, Nonemployee Director may exercise that
portion of the Option exercisable upon the date Nonemployee Director ceases
being a director at any time within the period beginning on the day after
Nonemployee Director ceases being a director and ending at the close of trading
on the Exchange thirty (30) days later. If Nonemployee Director dies within the
thirty (30) day period and shall not have fully exercised the Option, the
executor(s) or administrator(s) of Nonemployee Director’s estate, or any
person(s) to whom the Option was transferred by will or the applicable laws of
distribution and descent, may exercise the remaining portion of the Option at
any time during a period beginning on the day after the date of Nonemployee
Director’s death and ending at the close of trading on the Exchange on the
anniversary of death one (1) year later.
	 
	 	(3)	 	If Nonemployee Director dies while a member of the Board of
Directors of the Company, the Option, to the extent exercisable by Nonemployee
Director at the date of death, may be exercised by the executor(s) or
administrator(s) of Nonemployee Director’s estate, or any person(s) to whom the
Option was transferred by will or the applicable laws of distribution and
descent, at any time during a period beginning on

Nonemployee Director Stk Opt Agmt 4/2009

 

 

	 	 	 	the day after the date of Nonemployee Director’s death and ending at the
close of trading on the Exchange on the anniversary of death one (1) year
later.

	 	(4)	 	In the event the Option is exercised by the executors,
administrators, legatees, or distributees of the estate of a deceased
Nonemployee Director, the Company shall be under no obligation to issue stock
thereunder unless and until the Company is satisfied that the person(s)
exercising the Option is the duly appointed legal representative of Nonemployee
Director’s estate or the proper legatee or distributee thereof.

	 	B.	 	If Nonemployee Director ceases being a director of the Company by reason of
Nonemployee Director’s gross and willful misconduct, including but not limited to, (i)
fraud or intentional misrepresentation; (ii) embezzlement, misappropriation or
conversion of assets or opportunities of the Company or any affiliate of the Company;
(iii) breach of fiduciary duty, or (iv) any other gross or willful misconduct, as
determined by the Board, in its sole and conclusive discretion, the unexercised portion
of the Option granted to such Nonemployee Director shall immediately be forfeited as of
the time of the misconduct. If the Board determines subsequent to the time Nonemployee
Director ceases being a director of the Company for whatever reason, that Nonemployee
Director engaged in conduct while a member of the Board of Directors of the Company
that would constitute gross and willful misconduct, the Option shall terminate as of
the time of such misconduct. Furthermore, if the Option is exercised in whole or in
part and the Board thereafter determines that Nonemployee Director engaged in gross and
willful misconduct while a member of the Board of Directors of the Company at any time
prior to the date of such exercise, the Option shall be deemed to have terminated as of
the time of the misconduct and the Company may elect to rescind the Option exercise.

	 	C.	 	For purposes of this Section 3, if the last day of the relevant period is a day
upon which the Exchange is not open for trading or the Common Stock is not trading on
that day, the relevant period will expire at the close of trading on such earlier
business day on which the Exchange is open and the Common Stock is trading.

	4.	 	Manner of Exercise

	 	A.	 	Nonemployee Director or other proper party may exercise the Option only by
delivering within the term of the Option written notice to the Company at its principal
office in Minneapolis, Minnesota, stating the number of shares as to which the Option
is being exercised and, except as provided in Sections 4B(2) and 4C, accompanied by
payment in full of one hundred percent (100%) of the Option price.
	 
	 	B.	 	The Nonemployee Director may, at his/her election, pay the Option price as
follows:

	 	(1)	 	by cash or check (bank check, certified check, or personal
check),
	 
	 	(2)	 	by delivery of shares of Common Stock to the Company, which shall
have been owned for at least six (6) months and have a fair market value per
share on the date of surrender equal to the exercise price.

	 	 	 	For purposes of Section 4B(2), the fair market value of the Company’s Common Stock
shall be the closing price of the Common Stock on the Exchange on the day immediately
preceding the date of exercise. If there is not a quotation available for such day,
then the closing price on the next preceding day for which such a quotation exists
shall be determinative of fair market value. If the shares are not then traded on an
exchange, the fair

Nonemployee Director Stk Opt Agmt 4/2009

 

 

	 	 	 	market value shall be the average of the closing bid and asked prices of the Common
Stock as reported by the National Association of Securities Dealers Automated
Quotation System. If the Common Stock is not then traded on NASDAQ or on an
exchange, then the fair market value shall be determined in such manner as the
Company shall deem reasonable.

	 	C.	 	The Nonemployee Director may, with the consent of the Company, pay the Option
price by delivery to the Company of a properly executed exercise notice, together with
irrevocable instructions to a broker to promptly deliver to the Company from sale or
loan proceeds the amount required to pay the exercise price.

	5.	 	Change of Control

	 	A.	 	Notwithstanding Section 2A hereof, the entire Option shall become immediately
and fully exercisable upon a “Change of Control” and shall remain fully exercisable
until either exercised or expiring by its terms. A “Change of Control” means:

	 	(1)	 	an acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “1934 Act”)), (a “Person”), of beneficial ownership (within the
meaning of Rule 13d-3 of the 1934 Act) which, together with other acquisitions
by such Person, results in the aggregate beneficial ownership by such Person of
30% or more of either

	 	(a)	 	the then outstanding shares of Common Stock of
the Company (the “Outstanding Company Common Stock”) or
	 
	 	(b)	 	the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”);

	 	 	 	provided, however, that the following acquisitions will not result in a
Change of Control:

	 	(i)	 	an acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company,
	 
	 	(ii)	 	an acquisition by the Employee or
any group that includes the Employee, or
	 
	 	(iii)	 	an acquisition by any entity
pursuant to a transaction that complies with clauses (a), (b) and
(c) of Section 5A(3) below; or

	 	(2)	 	Individuals who, as of the date hereof, constitute the Board of
Directors of the Company (the “Incumbent Board”) cease for any reason to
constitute at least a majority of said Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board will be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial membership on the
Board occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies by or on behalf of a Person other than the Board; or

Nonemployee Director Stk Opt Agmt 4/2009

 

 

	 	(3)	 	Consummation of a reorganization, merger or consolidation of the
Company with or into another entity or a statutory exchange of Outstanding
Company Common Stock or Outstanding Company Voting Securities or sale or other
disposition of all or substantially all of the assets of the Company (“Business
Combination”); excluding, however, such a Business Combination pursuant to which

	 	(a)	 	all or substantially all of the individuals and
entities who were the beneficial owners of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly,
a majority of, respectively, the then outstanding shares of common stock
and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors (or comparable
equity interests), as the case may be, of the surviving or acquiring
entity resulting from such Business Combination (including, without
limitation, an entity that as a result of such transaction beneficially
owns 100% of the outstanding shares of common stock and the combined
voting power of the then outstanding voting securities (or comparable
equity securities) or all or substantially all of the Company’s assets
either directly or indirectly) in substantially the same proportions (as
compared to the other holders of the Company’s common stock and voting
securities prior to the Business Combination) as their respective
ownership, immediately prior to such Business Combination, of the
Outstanding Company Common Stock and Outstanding Company Voting
Securities,
	 
	 	(b)	 	no Person (excluding (i) any employee benefit
plan (or related trust) sponsored or maintained by the Company or such
entity resulting from such Business Combination or any entity controlled
by the Company or the entity resulting from such Business Combination,
(ii) any entity beneficially owning 100% of the outstanding shares of
common stock and the combined voting power of the then outstanding
voting securities (or comparable equity securities) or all or
substantially all of the Company’s assets either directly or indirectly
and (iii) the Employee and any group that includes the Employee)
beneficially owns, directly or indirectly, 30% or more of the then
outstanding shares of common stock (or comparable equity interests) of
the entity resulting from such Business Combination or the combined
voting power of the then outstanding voting securities (or comparable
equity interests) of such entity, and
	 
	 	(c)	 	immediately after the Business Combination, a
majority of the members of the board of directors (or comparable
governors) of the entity resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such
Business Combination; or

	 	(4)	 	approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

	6.	 	Adjustments; Fundamental Change

	 	A.	 	If there shall be any change in the number or character of the Common Stock of
the Company through merger, consolidation, reorganization, recapitalization, dividend
in the form of stock (of whatever amount), stock split or other change in the corporate
structure of

Nonemployee Director Stk Opt Agmt 4/2009

 

 

	 	 	 	the Company, and all or any portion of the Option shall then be unexercised and not
yet expired, appropriate adjustments in the outstanding Option shall be made by the
Company, in order to prevent dilution or enlargement of Employee’s Option rights.
Such adjustments shall include, where appropriate, changes in the number of shares of
Common Stock and the price per share subject to the outstanding Option.
	 
	 	B.	 	In the event of a proposed (i) dissolution or liquidation of the Company, (ii)
a sale of substantially all of the assets of the Company, (iii) a merger or
consolidation of the Company with or into any other corporation, regardless of whether
the Company is the surviving corporation, or (iv) a statutory share exchange involving
the capital stock of the Company (each, a “Fundamental Change”), the Management
Organization and Compensation Committee of the Board (the “Committee”) may, but shall
not be obligated to:

	 	(1)	 	with respect to a Fundamental Change that involves a merger,
consolidation or statutory share exchange, make appropriate provision for the
protection of the Option by the substitution of options and appropriate voting
common stock of the corporation surviving any such merger or consolidation or,
if appropriate, the “parent corporation” (as defined in Section 424(e) of the
Internal Revenue Code of 1986, as amended from time to time, and any regulations
promulgated thereunder, or any successor provision) of the Company or such
surviving corporation, in lieu of the Option and shares of Common Stock of the
Company, or
	 
	 	(2)	 	with respect to any Fundamental Change, including, without
limitation, a merger, consolidation or statutory share exchange, declare, prior
to the occurrence of the Fundamental Change, and provide written notice to the
holder of the Option of the declaration, that the Option, whether or not then
exercisable, shall be canceled at the time of, or immediately prior to the
occurrence of, the Fundamental Change in exchange for payment to the holder of
the Option, within 20 days after the Fundamental Change, of cash (or, if the
Committee so elects in lieu of solely cash, of such form(s) of consideration,
including cash and/or property, singly or in such combination as the Committee
shall determine, that the holder of the Option would have received as a result
of the Fundamental Change if the holder of the Option had exercised the Option
immediately prior to the Fundamental Change) equal to, for each share of Common
Stock covered by the canceled Option, the amount, if any, by which the Fair
Market Value (as defined in this Section 6B) per share of Common Stock exceeds
the exercise price per share of Common Stock covered by the Option. At the time
of the declaration provided for in the immediately preceding sentence, the
Option shall immediately become exercisable in full and the holder of the Option
shall have the right, during the period preceding the time of cancellation of
the Option, to exercise the Option as to all or any part of the shares of Common
Stock covered thereby in whole or in part, as the case may be. In the event of
a declaration pursuant to this Section 6B, the Option, to the extent that it
shall not have been exercised prior to the Fundamental Change, shall be canceled
at the time of, or immediately prior to, the Fundamental Change, as provided in
the declaration. Notwithstanding the foregoing, the holder of the Option shall
not be entitled to the payment provided for in this Section 6B if such Option
shall have expired or been forfeited. For purposes of this Section 6B only,
“Fair Market Value” per share of Common Stock means the fair market value, as
determined in good faith by the Committee, of the consideration to be received
per share of Common Stock by the shareholders of the Company upon the occurrence
of the Fundamental Change, notwithstanding anything to the contrary provided in
this Agreement.

Nonemployee Director Stk Opt Agmt 4/2009

 

 

	7.	 	Miscellaneous

	 	A.	 	This Option is granted pursuant to the Plan and is subject to its terms. The
terms of the Plan are available for inspection during business hours at the principal
offices of the Company.
	 
	 	B.	 	Neither the Plan nor any action taken hereunder shall be construed as giving
Nonemployee Director any right to be retained in the service of the Company.
	 
	 	C.	 	Neither Nonemployee Director, Nonemployee Director’s legal representative, nor
the executor(s) or administrator(s) of Nonemployee Director’s estate, or any person(s)
to whom the Option was transferred by will or the applicable laws of distribution and
descent shall be, or have any of the rights or privileges of, a shareholder of the
Company in respect of any shares of Common Stock receivable upon the exercise of this
Option, in whole or in part, unless and until such shares shall have been issued upon
exercise of this Option.
	 
	 	D.	 	The Company shall at all times during the term of the Option reserve and keep
available such number of shares as will be sufficient to satisfy the requirements of
this Agreement.
	 
	 	E.	 	The internal law, and not the law of conflicts, of the State of Minnesota,
U.S.A., shall govern all questions concerning the validity, construction and effect of
this Agreement, the Plan and any rules and regulations relating to the Plan or this
Option.
	 
	 	F.	 	Nonemployee Director hereby consents to the transfer to his employer or the
Company of information relating to his/her participation in the Plan, including the
personal data set forth in this Agreement, between them or to other related parties in
the United States or elsewhere, or to any financial institution or other third party
engaged by the Company, but solely for the purpose of administering the Plan and this
Option. Nonemployee Director also consents to the storage and processing of such data
by such persons for this purpose.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first
above written.

	 	 	 	 	 
	 	GRACO INC.

 	 
	 	By  	
 	. 
	 	 	Its Vice President, General Counsel 	 
	 	 	and Secretary 	 
	 
	 	NONEMPLOYEE DIRECTOR

 	 
	 	  	
 	. 
	 	«NAME» 	 	 
	 	 	 	 
	 

Nonemployee Director Stk Opt Agmt 4/2009

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]