Document:

Exhibit
10.3.9

 

INVESTMENT TECHNOLOGY GROUP, INC.

FIFTH AMENDED AND RESTATED

1998 STOCK UNIT AWARD PROGRAM

 

1.                                       Purpose

 

This Fifth Amended and Restated 1998 Stock
Unit Award Program (the “Program”) is implemented under the 1994 Stock Option
and Long-Term Incentive Plan, as amended and restated (the “Plan”), of
Investment Technology Group, Inc. (the “Company”) in order to provide an
additional incentive to selected members of senior management and key employees
to increase the success of the Company, by substituting stock units for a
portion of the cash compensation payable to such persons, which stock units
represent an equity interest in the Company to be acquired and held under the
Program on a long-term, tax-deferred basis, and otherwise to promote the purposes
of the Plan.  The Program is amended and
restated herein, effective for deferrals made from compensation earned for
periods on or after January 1, 2006. 
Deferrals made from compensation earned for periods prior to January 1,
2006 shall be governed by the Program as in effect prior to this fifth
amendment and restatement.  Persons
selected to be eligible to participate in the Program will participate only if
they elect to participate for a calendar year.

 

2.                                       Definitions

 

Capitalized terms used in the Program but not
defined herein shall have the same meanings as defined in the Plan.  In addition to such terms and the terms
defined in Section 1, the following terms used in the Program shall have
the meanings set forth below:

 

2.1                                 “Account” means the account
established for each Participant pursuant to Section 7(g) hereof.

 

2.2                                 “Actual Reduction
Amount” means the amount by which a given quarterly or year-end bonus payment
to a Participant is in fact reduced under Section 6.

 

2.3                                 “Administrator” shall
be the person or committee appointed by the Committee to perform ministerial
functions under the Program and to exercise other authority delegated by the
Committee.

 

2.4                                 “Assigned Reduction
Amount” means an amount determined by the Administrator in accordance with Section 6(b),
in the case of an individual Participant, which shall be used under Section 7(a) to
determine the number of Stock Units to be credited to the Participant’s Account
in respect of a given calendar quarter. 
The Assigned Reduction Amount does not accumulate from one quarter to
the next.

 

2.5                                 “Basic Stock Unit”
means a Stock Unit granted pursuant to the first sentence of Section 7(a).

 

 

2.6                                 “Cause” shall be
deemed to exist where a Participant: (i) commits any act of fraud, willful
misconduct or dishonesty in connection with their employment; (ii) fails,
refuses or neglects to timely perform any material duty or job responsibility
and such failure, refusal or neglect is not cured after appropriate warning; (iii) commits
a material violation of any law, rule, regulation or by-law of any governmental
authority (state, federal or foreign), any securities exchange or association
or other regulatory or self-regulatory body or agency applicable to Company or
any of its subsidiaries or affiliates or any general written policy or
directive of Company or any of its subsidiaries or affiliates; (v) commits
a crime involving dishonesty, fraud or unethical business conduct, or a felony;
or (vii) is expelled or suspended, or is subject to an order temporarily
or permanently enjoining Participant from an area of activity which constitutes
a significant portion of Participant’s activities by the Securities and
Exchange Commission, the National Association of Securities Dealers Regulation, Inc.,
any national securities exchange or any self-regulatory agency or governmental
authority, state, foreign or federal.

 

2.7                                 “Change of Control”
means and shall be deemed to have occurred if:

 

(a)                                  any person (within
the meaning of the Exchange Act), other than the Company or a Related Party, is
or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of Voting Securities representing 30%
percent or more of the total voting power of all the then-outstanding Voting
Securities; or

 

(b)                                 the individuals who,
as of the Effective Date, constitute the Board, together with those who first
become directors subsequent to such date and whose recommendation, election or
nomination for election to the Board was approved by a vote of at least a
majority of the directors then still in office who either were directors as of
the Effective Date or whose recommendation, election or nomination for election
was previously so approved, cease for any reason to constitute a majority of
the members of the Board; or

 

(c)                                  the stockholders of
the Company approve a merger, consolidation, recapitalization or reorganization
of the Company or one of its subsidiaries, reverse split of any class of Voting
Securities, or an acquisition of securities or assets by the Company or one of
its subsidiaries, or consummation of any such transaction if stockholder
approval is not obtained, other than (I) any such transaction in which the
holders of outstanding Voting Securities immediately prior to the transaction
receive (or retain), with respect to such Voting Securities, voting securities
of the surviving or transferee entity representing more than 50 percent of the
total voting power outstanding immediately after such transaction, with the
voting power of each such continuing holder relative to other such continuing
holders not substantially altered in the transaction, or (II) any such
transaction which would result in a Related Party beneficially owning more than
50 percent of the voting securities of the surviving or transferee entity
outstanding immediately after such transaction; or

 

(d)                                 the stockholders of
the Company approve a plan of complete

 

 

liquidation of the Company or
an agreement for the sale or disposition by the Company of all or
sub-stantially all of the Company’s assets other than any such transaction
which would result in a Related Party owning or acquiring more than 50 percent
of the assets owned by the Company immediately prior to the transaction.

 

2.8                                 “Current Participant”
means a Participant who, for the calendar year, has elected, in accordance with
Section 5 below, to participate in the Program and is, therefore, subject
to mandatory payment of a portion of his or her compensation for the calendar
year by grant of Stock Units under the Program.

 

2.9                                 “Matching Stock Unit”
means a Stock Unit granted pursuant to the second sentence of Section 7(a).

 

2.10                           “Participant” means an
eligible person who is granted Stock Units under the Program, which Stock Units
have not yet been settled.

 

2.11                           “Related Party” means (a) a
majority-owned subsidiary of the Company; (b) an employee or group of
employees of the Company or any majority-owned subsidiary of the Company; (c) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any majority-owned subsidiary of the Company; or (d) a
corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportion as their ownership of Voting Securities.

 

2.12                           “Retirement” means
Termination of Employment (other than a termination for Cause) after the
Participant has reached age 65 or after the Participant has reached age 55 and
has at least 10 years of service with the Company and its subsidiaries.

 

2.13                           “Stock Unit” means an award,
granted pursuant to Section 6.5 and 6.6 of the Plan, representing a
generally nontransferable right to receive one share of Common Stock at a
specified future date together with a right to Dividend Equivalents as
specified in Section 7(d) hereof and subject to the terms and
conditions of the Plan and the Program. 
Notwithstanding anything to the contrary, in the case of Stock Units
granted to employees of ITG Canada Corp. and KTG Technologies Corp., the
Committee may, in its discretion, settle such Stock Units by delivery of cash
equal to the Fair Market Value on the settlement date of the number of shares
of Common Stock equal to the number of such Stock Units.  Stock Units are bookkeeping units, and do not
represent ownership of Common Stock or any other equity security.

 

2.14                           “Termination of Employment”
means termination of a Participant’s employment by the Company or a subsidiary
for any reason, including due to death or disability, immediately after which
event the Participant is not employed by the Company or any subsidiary.

 

2.15                           “Voting Securities or
Security” means any securities of the Company which carry the right to vote
generally in the election of directors.

 

 

3.                                       Administration

 

(a)                                  Authority.  The Program shall be established and
administered by the Committee, which shall have all authority under the Program
as it has under the Plan; provided, however, that terms of the grant of Stock
Units hereunder may not be inconsistent with the express terms set forth in the
Program.  Ministerial functions under the
Program and other authority specifically delegated by the Committee shall be
performed or exercised by and at the direction of the Administrator.

 

(b)                                 Manner of Exercise
of Authority.  Any action of the
Committee or its delegatee with respect to the Program shall be final,
conclusive, and binding on all persons, including the Company, subsidiaries,
participants granted Stock Units which have not yet been settled, and any
person claiming any rights under the Program from or through any Participant,
except that the Committee may take action within a reasonable time after any
such action superseding or overruling a prior action.

 

(c)                                  Limitation of
Liability.  Each member of the
Committee or delegatee shall be entitled to, in good faith, rely or act upon
any report or other information furnished to him by any officer or other
employee of the Company or any subsidiary or any agent or professional
assisting in the administration of the Plan, such member or person shall not be
personally liable for any action, determination, or interpretation taken or
made in good faith with respect to the Program, and such member or person
shall, to the extent permitted by law, be fully indemnified and protected by
the Company with respect to any such action, determination, or interpretation.

 

(d)                                 Status as Subplan
Under the Plan.  The Program
constitutes a subplan implemented under the Plan, to be administered in
accordance with the terms of the Plan. 
Accordingly, all of the terms and conditions of the Plan are hereby
incorporated by reference, and, if any provision of the Program or a statement
or document relating to Stock Units granted hereunder conflicts with a
provision of the Plan, the provision of the Plan shall govern.

 

4.                                       Stock
Subject to the Program

 

Shares of Common Stock delivered upon
settlement of Stock Units under the Program shall be shares reserved and
available under the Plan.  Accordingly,
Stock Units may be granted under the Program if sufficient shares are then
reserved and available under the Plan, and the number of shares delivered in
settlement of Stock Units hereunder shall be counted against the shares
reserved and available under the Plan. 
Awards may be granted under the Plan even though the effect of such
grants will be to reduce the number of shares remaining available for grants
hereunder.  Stock Units granted under the
Program in place of compensation under the Plan resulting from a 162(m) Award
(as defined in the Plan) or in place of compensation under the Company’s
Pay-for-Performance Incentive Plan shall be subject to annual per-person
limitations applicable to such compensation under such plan.

 

5.                                       Eligibility
and Election

 

The Committee may select any person who is
eligible to be granted an Award under the Plan to be eligible to be granted
Stock Units under the Program in lieu of

 

 

compensation otherwise payable
to the person (such persons are referred to herein as “Eligible SUA
Participants”).  A Participant who is
selected to be an Eligible SUA Participant in one year will not necessarily be
selected to be an Eligible SUA Participant in a subsequent year.  An Eligible SUA Participant may elect to
participate in the Program and, therefore, be a Current Participant for a
calendar year by filing a written irrevocable election with the Company prior
to the beginning of that calendar year. 
Participation elections (for persons who continue to be Eligible SUA
Participants) will automatically carry forward for subsequent calendar years
unless the Participant irrevocably elects in writing, by no later than the last
day of the immediately preceding calendar year, not to participate in the
Program for a calendar year. 
Notwithstanding the foregoing, an Eligible SUA Participant may make an
election to participant in the program within 30 days after first becoming an
Eligible SUA Participant, but, notwithstanding any provision of this Program to
the contrary, only with respect to compensation earned for services provided
after the effective date of the election, which, in the case of bonus payable
for a period beginning prior to and ending after the effective date of the
election, shall be prorated for the portion of the period beginning after the
effective date of the election.

 

6.                                       Mandatory
Reduction of Bonus Compensation

 

(a)                                  (i)  Amount
of Mandatory Reduction.  A Current
Participant’s cash compensation earned for the calendar year of participation
shall be automatically reduced by an amount determined in accordance with the
following schedule:

 

0% of the first $200,000 of annual
compensation;

15% of the next $100,000 of annual compensation; and

20% of annual compensation in excess of $300,000.

 

The foregoing notwithstanding, the Committee may adjust the schedule applicable
to an individual Current Participant and in no event will the amount by which
cash compensation is reduced exceed the amount of bonus payable to the
Participant for the calendar year.  For
purposes of the Program, the amount by which cash compensation is reduced
hereunder shall be calculated without regard to any reductions in compensation
resulting from Participant’s contributions under any Section 401(k), Section 125,
pension plan, or other plan of the Company or a subsidiary, and such amount
shall not be deemed a reduction in the Participant’s compensation for purposes
of any such Section 401(k), Section 125, pension plan, or other plan
of the Company or a subsidiary.

 

(ii)  In lieu of the schedule set
forth in Section 6(a)(i) above, each Current Participant who
participated in the Program for the portion of calendar year 2003 prior to June 30
and who made a one-time written election (in the form specified by the
Committee) on or prior to June 30, 2003 to have any and all mandatory
reductions under the Program based on the following schedule shall have
all reductions hereunder based on such following schedule:

 

5% of the first $100,000 of annual
compensation;

10% of the next $100,000 of annual
compensation;

 

 

15% of the next $100,000 of annual
compensation; and

20% of annual compensation in excess of 
$300,000.

 

Notwithstanding the foregoing, a Current Participant who would
otherwise be subject to the schedule set forth in this Section 6(a)(ii) may
instead make a one-time written, irrevocable election prior to January 1,
2006 (in the form specified by the Committee) to have any and all mandatory reductions
under the Program based on the schedule set forth in Section 6(a)(i).

 

(b)                                 Manner of Reduction
of Compensation.  Amounts by which
compensation is reduced under Section 6(a) will be subtracted from
bonus amounts in respect of services during the year otherwise payable to the
Current Participant at or following the end of the first three calendar
quarters of such year and at or following the end of the year.  The amount by which each bonus amount payable
following the end of the first three calendar quarters will be reduced will be
calculated based on a reasonable estimate of total compensation for the year,
taking into account the amount by which compensation previously has been
reduced for the year (i.e., in the case of a Participant employed since the
beginning of the year and for whom estimated annual compensation has not varied
during the year, by calculating an estimated aggregate amount by which
compensation will be reduced for the year and reducing the quarterly bonus
payment by one-fourth of such amount), and will be calculated at the time the
year-end bonus amount otherwise becomes payable based on actual compensation
for the year, taking into account the amount by which compensation previously
has been reduced for the year (i.e., by calculating the actual amount by which
compensation will be reduced for the year and reducing the year-end bonus
payment by that amount less the amount by which compensation was reduced in
previous quarters).  The foregoing notwithstanding,
the Administrator may determine in the case of any individual Participant,
including a Participant who is not paid a bonus on a quarterly basis, the
extent (if any) to which any bonus amounts other than the Participant’s
year-end bonus amount shall be reduced taking into account the terms of the
Participant’s compensation arrangement and the Participant’s individual
circumstances.  In such cases, the
Administrator may assign to the Participant an Assigned Reduction Amount for
each calendar quarter, so that Stock Units will be automatically granted to
such Participant under Section 7(a) at times and in amounts
comparable to grants to other Participants, such that, on a full-year basis,
the aggregate of the Participant’s Assigned Reduction Amounts and any Actual
Reduction Amounts used to determine the number of Stock Units credited to the
Participant’s Account under Section 7(a) for such year will equal the
aggregate amount by which the Participant’s full-year’s compensation is to be
reduced (after giving effect to adjustments under Section 7(b)).

 

7.                                       Grant
of Stock Units

 

(a)                                  Automatic Grant of
Stock Units.  Each Participant shall
be automatically granted Basic Stock Units, as of fifteen days after the last
day of each calendar quarter, in a number equal to the Participant’s Actual Reduction
Amount or Assigned Reduction Amount (as applicable) divided by the Fair Market
Value of a share

 

 

of Common Stock on the last day
of such calendar quarter. In addition, each Participant shall be automatically
granted Matching Stock Units, as of fifteen days after the last day of each
calendar quarter, in a number equal to 20% of the number of Basic Stock Units
granted under this Section 7(a) at that date. Stock Units shall be
initially credited to the Participant’s Account as of the date of grant (it
being recognized, however, that the determination of the number of Stock Units
granted and the posting of such transactions to the Account may occur after
date of grant under this Section 7(a), based on the time at which
quarterly bonus amounts are determined and the Actual Reduction Amount or
Assigned Reduction Amount determined in accordance with Section 6
hereof).  Other provisions of the Program
notwithstanding, no grant of Stock Units shall be effective until the date of
grant specified in this Section 7(a), and, at any time prior to such date
of grant, the Committee shall retain full discretion to adjust a Participant’s
Actual Reduction Amount or Assigned Reduction Amount downward or otherwise
reduce or cancel the automatic grant of Stock Units, provided that any such
adjustment or reduction in the number of Stock Units to be issued shall result
in a reversal of any corresponding reduction in compensation under Section 6(b).

 

(b)                                 Risk of Forfeiture;
Cancellation of Certain Stock Units. 
The Basic Stock Units, together with any Dividend Equivalents credited
thereon, shall at all times be fully vested and non-forfeitable.  Matching Stock Units, together with any
Dividend Equivalents credited thereon, will vest 100% on the third anniversary
of the date of grant, provided the Participant remains continuously employed by
the Company through such vesting date; provided, however, that
all Matching Stock Units (together with Dividend Equivalents credited thereon)
will vest in full at the time of Retirement of the Participant or at the time
of closing of a transaction which constitutes a Change of Control, but in
either such event the Matching Stock Units shall continue to be settled on the schedule set
forth in Section 8(a) below; provided further, however,
that all Matching Stock Units (together with Dividend Equivalents credited
thereon) will vest in full at the time a Participant’s employment terminates
due to his or her death or disability, and all stock units held by such
Participant shall be settled as soon as practicable thereafter.  If the Participant’s employment by the
Company terminates for any reason other than Retirement, death or disability
prior to a vesting date, unless the Committee provides otherwise, all unvested
Matching Stock Units, together with any Dividend Equivalents credited thereon,
shall be forfeited to the Company.  The
foregoing notwithstanding, if, at the end of a given year (upon calculation of
year-end bonuses), the aggregate of the Participant’s Actual Reduction Amounts
and any Assigned Reduction Amounts used to determine the number of Stock Units
credited under Section 7(a) for such year exceeds the amount by which
the full-year’s compensation should have been reduced under Section 6(a) (the
“corrected full-year amount”), the Participant shall be paid, prior to March 15
of the following year, in cash, without interest, the amount (if any) by which
such Actual Reduction Amounts and Assigned Reduction Amounts exceeded such
corrected full-year amount, and any Stock Units (including Basic Stock Units
and Matching Stock Units relating thereto) credited to the Participant under Section 7
as a result of such excess Actual Reduction Amounts and Assigned Reduction
Amounts shall be cancelled.  Unless
otherwise determined by the Administrator, the Stock Units to be cancelled
shall be cancelled from each of the four quarterly grants in the proportion the
Actual Reduction Amounts and Assigned Reduction Amounts used in determining
such

 

 

quarterly grant bore to the
aggregate of the Actual Reduction Amounts and Assigned Reduction Amounts used
in determining all grants of Stock Units over the full year.

 

(c)                                  Nontransferability.  Stock Units and all rights relating thereto
shall not be transferable or assignable by a Participant, other than by will or
the laws of descent and distribution, and shall not be pledged, hypothecated,
or otherwise encumbered in any way or subject to execution, attachment, or
similar process.

 

(d)                                 Dividend
Equivalents on Stock Units.  Dividend
Equivalents shall be credited on Stock Units as follows:

 

(i)                                     Cash
and Non-Common Stock Dividends.  If
the Company declares and pays a dividend or distribution on Common Stock in the
form of cash or property other than shares of Common Stock, then a number of
additional Stock Units shall be credited to a Participant’s Account as of the
payment date for such dividend or distribution equal to (i) the number of
Stock Units credited to the Account as of the record date for such dividend or
distribution multiplied by (ii) the amount of cash plus the fair market
value of any property other than shares actually paid as a dividend or
distribution on each outstanding share of Common Stock at such payment date,
divided by (iii) the Fair Market Value of a share of Common Stock at such
payment date.

 

(ii)                                  Common
Stock Dividends and Splits.  If the
Company declares and pays a dividend or distribution on Common Stock in the
form of additional shares of Common Stock, or there occurs a forward split of
Common Stock, then a number of additional Stock Units shall be credited to the
Participant’s Account as of the payment date for such dividend or distribution
or forward split equal to (i) the number of Stock Units credited to the
Account as of the record date for such dividend or distribution or split multiplied
by (ii) the number of additional shares of Common Stock actually paid as a
dividend or distribution or issued in such split in respect of each outstanding
share of Common Stock.

 

(e)                                  Adjustments to
Stock Units.  The number of Stock
Units credited to each Participant’s Account shall be appropriately adjusted,
in order to prevent dilution or enlargement of Participants’ rights with
respect to such Stock Units, to reflect any changes in the number of
outstanding shares of Common Stock resulting from any event referred to in Section 5.5
of the Plan, taking into account any Stock Units credited to the Participant in
connection with such event under Section 7(d).

 

(f)                                    Fractional
Shares.  The number of Stock Units
credited to a Participant’s Account shall include fractional shares calculated
to at least three decimal places, unless otherwise determined by the Committee.

 

(g)                                 Accounts and
Statements. The Administrator shall establish, or cause to be established,
an Account for each Participant.  An
individual statement of each Participant’s Account will be issued to each
Participant not less frequently than annually.

 

 

Such statements shall reflect
the Stock Units credited to the Participant’s Account, transactions therein
during the period covered by the statement, and other information deemed
relevant by the Administrator.  Such
statement may include information regarding other plans and compensatory
arrangements for Directors.

 

(h)                                 Consideration for
Stock Units.  Stock Units shall be
granted for the general purposes set forth in Section 1 of the Program.
Except as specified in Section 6 and 7 of the Program, a Participant shall
not be required to pay any cash consideration or other tangible or definable
consideration for Stock Units.  No
negotiation shall take place between the Company and any Participant as to the
amount, timing, or other terms of an award of Stock Units.

 

8.                                       Settlement

 

(a)                                  Issuance and
Delivery of Shares in Settlement. 
Stock Units, together with any Dividend Equivalents credited thereon, shall
be settled by issuance and delivery to the Participant or, following his death,
to the Participant’s designated beneficiary, of a number of shares of Common
Stock equal to the number of such Stock Units promptly following the third
anniversary of the date of grant of the Stock Units; provided, however,
that the Committee may, in its discretion, accelerate the settlement date of
any or all Stock Units.  The Committee
may, in its discretion, make delivery of shares hereunder by depositing such
shares into an account maintained for the Participant (or of which the
Participant is a joint owner, with the consent of the Participant) established
in connection with the Company’s Employee Stock Purchase Plan or another plan
or arrangement providing for investment in Common Stock and under which the
Participant’s rights are similar in nature to those under a stock brokerage
account.  If the Committee determines to
settle Stock Units by making a deposit of shares into such an account, the
Company may settle any fractional share by means of such deposit.  In other circumstances or if so determined by
the Committee, the Company shall instead pay cash in lieu of fractional shares,
on such basis as the Committee may determine. 
In no event will the Company in fact issue fractional shares.  Notwithstanding anything to the contrary, in
the case of Stock Units granted to employees of ITG Canada Corp. and KTG
Technologies Corp., the Committee may, in its discretion, settle such Stock Units
by delivery of cash equal to the Fair Market Value on the settlement date of
the number of shares of Common Stock equal to the number of such Stock
Units.  Upon settlement of Stock Units,
all obligations of the Company in respect of such Stock Units shall be
terminated, and the shares so distributed shall no longer be subject to any
restriction or other provision of the Program.

 

(b)                                 Tax Withholding.  The Company and any subsidiary may deduct
from any payment to be made to a Participant any amount that federal, state,
local, or foreign tax law requires to be withheld with respect to the
settlement of Stock Units.  At the
election of the Committee, the Company may withhold from the shares of Common
Stock to be distributed in settlement of Stock Units that number of shares
having a Fair Market Value, at the settlement date, equal to the amount of such
withholding taxes.

 

(c)                                  No Elective
Deferral.  Participants may not elect
to further defer

 

 

settlement of Stock Units or
otherwise to change the applicable settlement date under the Program.

 

9.                                       General
Provisions

 

(a)                                  No Right to
Continued Employment.  Neither the
Program nor any action taken hereunder, including the grant of Stock Units,
will be construed as giving any employee the right to be retained in the employ
of the Company or any of its subsidiaries, nor will it interfere in any way
with the right of the Company or any of its subsidiaries to terminate such
employee’s employment at any time.

 

(b)                                 No Rights to
Participate; No Stockholder Rights. 
No Participant or employee will have any claim to participate in the
Program, and the Company will have no obligation to continue the Program.  A grant of Stock Units will confer on the
Participant none of the rights of a stockholder of the Company (including no
rights to vote or receive dividends or distributions) until settlement by
delivery of Common Stock, and then only to the extent that such Stock Unit has
not otherwise been forfeited by the Participant.

 

(c)                                  Changes to the
Program.  The Committee may amend,
alter, suspend, discontinue, or terminate the Program without the consent of
Participants; provided, however, that, without the consent of an affected
Participant, no such action shall materially and adversely affect the rights of
such Participant with respect to outstanding Stock Units, except insofar as the
Committee’s action results in accelerated settlement of the Stock Units.

 

10.                                 Effective
Date and Termination of Program.  This
fifth amended and restated Program shall become effective as of January 1,
2006 (the “Effective Date”), and shall apply to deferrals from compensation
earned for periods on or after such date. 
Unless earlier terminated under Section 9(c), the Program shall
terminate at such time after 2006 as no Stock Units previously granted under
the Program remain outstanding.

 

	
  Adopted by the Committee:

  	
   

  	
  June 4,
  1998

  
	
  Amended and
  restated by the Committee:

  	
   

  	
  February 25,
  1999

  
	
  Amended and
  restated by the Committee:

  	
   

  	
  March 20,
  2002

  
	
  Amended and
  restated by the Committee:

  	
   

  	
  September 3,
  2002

  
	
  Amended and
  restated by the Committee:

  	
   

  	
  June 30,
  2003

  
	
  Amended and
  restated by the Board:

  	
   

  	
  November 17,
  2005Exhibit 10.3.3

 

UNIVISION COMMUNICATIONS INC.

2004 PERFORMANCE AWARD PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT
(this “Agreement”) is dated as of [                  ,
2006] by and between Univision
Communications Inc., a Delaware corporation (the “Corporation”),
and [                            ] (the “Participant”).

 

W I T N E S S E T H

 

WHEREAS,
pursuant to the Univision Communications Inc. 2004 Performance Award Plan (the “Plan”), the Corporation has granted to the Participant
effective as of the date hereof (the “Award Date”), a
credit of restricted stock units under the Plan (the “Award”),
upon the terms and conditions set forth herein and in the Plan.

 

NOW
THEREFORE, in consideration of services rendered and to be
rendered by the Participant, and the mutual promises made herein and the mutual
benefits to be derived therefrom, the parties agree as follows:

 

1.              Defined Terms.  Capitalized terms used herein and not
otherwise defined herein shall have the meaning assigned to such terms in the
Plan.

 

2.              Grant.  Subject to the terms of this Agreement, the
Corporation hereby grants to the Participant an Award with respect to an
aggregate of [                  ]
stock units (subject to adjustment as provided in Section 7.1 of the Plan)
(the “Stock Units”).  As used herein, the term “stock unit” shall
mean a non-voting unit of measurement which is deemed for bookkeeping purposes
to be equivalent to one outstanding share of the Corporation’s Common Stock
(subject to adjustment as provided in Section 7.1 of the Plan) solely for
purposes of the Plan and this Agreement. 
The Stock Units shall be used solely as a device for the determination
of the payment to eventually be made to the Participant if such Stock Units
vest pursuant to Section 3.  The
Stock Units shall not be treated as property or as a trust fund of any kind.

 

3.              Vesting.  Subject to Section 8 below, the Award shall vest and become nonforfeitable
with respect to twenty-five (25%) of the total number of Stock Units (subject
to adjustment under Section 7.1 of the Plan) on each of the first, second,
third and fourth anniversaries of the Award Date.

 

4.              Continuance of Employment.  The vesting schedule requires continued
employment or service through each applicable vesting date as a condition to
the vesting of the applicable installment of the Award and the rights and
benefits under this Agreement.  Partial
employment or service, even if substantial, during any vesting period will not
entitle the Participant to any proportionate vesting or avoid or mitigate a
termination of rights and benefits upon or following a termination of
employment or services as provided in Section 8 below or under the Plan.

 

Nothing contained in this Agreement or the Plan
constitutes an employment or service commitment by the Corporation, affects the
Participant’s status as an employee at will who is

 

1

 

subject to termination without cause, confers upon the
Participant any right to remain employed by or in service to the Corporation or
any Subsidiary, interferes in any way with the right of the Corporation or any
Subsidiary at any time to terminate such employment or services, or affects the
right of the Corporation or any Subsidiary to increase or decrease the
Participant’s other compensation or benefits. 
Nothing in this paragraph, however, is intended to adversely affect any
independent contractual right of the Participant without his consent thereto.

 

5.              Dividend
and Voting Rights.  The Participant
shall have no rights as a stockholder of the Corporation, no dividend rights
(except as expressly provided in Section 7(b) with respect to
Dividend Equivalent Rights) and no voting rights, with respect to the Stock
Units and any shares of Common Stock underlying or issuable in respect of such
Stock Units until such shares of Common Stock are actually issued to and held
of record by the Participant.  No
adjustments will be made for dividends or other rights of a holder for which
the record date is prior to the date of issuance of the stock certificate.

 

6.              Restrictions on Transfer.  Neither the Award, nor any interest therein
or amount or shares payable in respect thereof may be sold, assigned,
transferred, pledged or otherwise disposed of, alienated or encumbered, either
voluntarily or involuntarily.  The
transfer restrictions in the preceding sentence shall not apply to (a) transfers
to the Corporation, or (b) transfers by will or the laws of descent and
distribution.

 

7.              Timing and Manner of Payment.

 

(a)          Payment of Stock Units.  On or as soon as administratively practical
following each vesting of the applicable portion of the total Award pursuant to
Section 3, Section 8 or Section 9, the Corporation shall deliver
to the Participant a number of shares of Common Stock (either by delivering one
or more certificates for such shares or by entering such shares in book entry
form, as determined by the Corporation in its discretion) equal to the
number of Stock Units subject to this Award that vest on the applicable vesting
date, unless such Stock Units terminate prior to the given vesting date
pursuant to Section 8.  The
Corporation’s obligation to deliver shares of Common Stock or otherwise make
payment with respect to vested Stock Units is subject to the condition
precedent that the Participant or other person entitled under the Plan to
receive any shares or other payment with respect to the vested Stock Units
deliver to the Corporation any representations or other documents or assurances
required pursuant to Section 8.1 of the Plan.  The Participant shall have no further rights
with respect to any Stock Units that are paid or that terminate pursuant to Section 8.

 

(b)         Dividend Equivalent Rights.  Upon the payment of any Stock Unit subject to
the Award pursuant to Section 7(a), the Corporation shall pay the
Participant an amount in cash equal to the aggregate amount of the ordinary
cash dividends (if any) paid by the Corporation on a share of its Common Stock
for which the related dividend payment record date(s) occurred on or after the
date the Award was granted and on or before the date such Stock Unit became
vested pursuant to the terms hereof. 
(The right to receive such payment is referred to herein as a “Dividend Equivalent Right”). 
For purposes of clarity, no interest shall accrue with respect to the
period between the dividend payment record date and the date of payment of any
Dividend Equivalent Rights, and no Dividend Equivalent Rights shall be paid
with respect to any Stock Units that terminate pursuant to Section 8.

 

2

 

8.              Effect of Termination of Employment.  The Participant’s Stock
Units (and any related Dividend Equivalent Rights) shall terminate to the
extent such units have not become vested prior to the first date the
Participant is no longer employed by the Corporation or one of its
Subsidiaries, regardless of the reason for the termination of the Participant’s
employment with the Corporation or a Subsidiary; provided, however, that if the
Participant’s employment is terminated by the Corporation or a Subsidiary
without Cause (as defined below) or as a result of the Participant’s death or
Total Disability (as defined below), the Participant’s Stock Units, to the
extent such units are not then vested, shall become fully vested as of the date
of termination of the Participant’s employment and shall be paid (along with
any related Dividend Equivalent Rights) in accordance with Section 7.  If the Participant is employed by a
Subsidiary and that entity ceases to be a Subsidiary, such event shall be
deemed to be a termination of employment of the Participant for purposes of
this Agreement (unless the Participant otherwise continues to be employed by
the Corporation or another of its Subsidiaries following such event), and no
accelerated vesting shall be required in such circumstances (i.e. the
termination shall be treated as a termination for Cause) unless otherwise
expressly provided by the Corporation in the circumstances.  If any unvested Stock Units are terminated
hereunder, such Stock Units (and any related Dividend Equivalent Rights) shall
automatically terminate and be cancelled as of the applicable termination date
without payment of any consideration by the Corporation and without any other
action by the Participant, or the Participant’s beneficiary or personal
representative, as the case may be.

 

For
purposes of the Award, “Total Disability”
means a “permanent and total disability” (within the meaning of Section 22(e)(3) of
the Code or as otherwise determined by the Administrator).  For purposes of the Award, “Cause” shall have the meaning given to such term in any
written employment agreement then in effect between the Participant and the
Corporation or any of its Subsidiaries that defines such term as it relates to
a termination of the Participant’s employment. 
If there is no such written agreement (or if no such agreement includes
such a definition), “Cause” for purposes of the Award shall mean that the
Participant:

 

(1)                                  has
been negligent in the discharge of his or her duties to the Corporation or any
of its Subsidiaries, has refused to perform stated or assigned duties or is
incompetent in or (other than by reason of a disability or analogous condition)
incapable of performing those duties;

 

(2)                                  has
been dishonest or committed or engaged in an act of theft, embezzlement or
fraud, a breach of confidentiality, an unauthorized disclosure or use of inside
information, customer lists, trade secrets or other confidential information;
has breached a fiduciary duty, or willfully and materially violated any other
duty, law, rule, regulation or policy of the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its Subsidiaries; or
has been convicted of a felony or misdemeanor (other than minor traffic
violations or similar offenses);

 

(3)                                  has
materially breached any of the provisions of any agreement with the
Corporation, any of its Subsidiaries or any affiliate of the Corporation or any
of its Subsidiaries; or

 

3

 

(4)                                  has
engaged in unfair competition with, or otherwise acted intentionally in a
manner injurious to the reputation, business or assets of, the Corporation, any
of its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; has improperly induced a vendor or customer to break or terminate
any contract with the Corporation, any of its Subsidiaries or any affiliate of
the Corporation or any of its Subsidiaries; or has induced a principal for whom
the Corporation, any of its Subsidiaries or any affiliate of the Corporation or
any of its Subsidiaries acts as agent to terminate such agency relationship.

 

9.              Adjustments Upon Specified Events.  The Administrator may accelerate payment and
vesting of the Stock Units (and any related Dividend Equivalent Rights) in such
circumstances as it, in its sole discretion, may determine.  In addition, upon the occurrence of certain
events relating to the Corporation’s stock contemplated by Section 7.1 of
the Plan (including, without limitation, an extraordinary cash dividend on such
stock), the Administrator shall make adjustments if appropriate in the number
of Stock Units then outstanding and the number and kind of securities that may
be issued in respect of the Award.  No
such adjustment shall be made with respect to any ordinary cash dividend for
which Dividend Equivalent Rights may be paid pursuant to Section 7(b).

 

10.       Tax Withholding.  Upon any payment of Dividend Equivalent
Rights and/or the distribution of shares of the Common Stock in respect of the
Stock Units, the Corporation (or the Subsidiary last employing the Participant)
shall have the right at its option to (a) require the Participant to pay
or provide for payment in cash of the amount of any taxes that the Corporation
or the Subsidiary may be required to withhold with respect to such payment
and/or distribution, or (b) deduct from any amount payable to the
Participant the amount of any taxes which the Corporation or the Subsidiary may
be required to withhold with respect to such payment and/or distribution.  In any case where a tax is required to be
withheld in connection with the delivery of shares of Common Stock under this
Agreement, the Administrator may, in its sole discretion, direct the
Corporation or the Subsidiary to reduce the number of shares to be delivered by
(or otherwise reacquire) the appropriate number of whole shares, valued at
their then fair market value (with the “fair market value” of such shares
determined in accordance with the applicable provisions of the Plan), to
satisfy such withholding obligation at the minimum applicable withholding
rates.

 

11.       Notices.  Any notice to be given under the terms of
this Agreement shall be in writing and addressed to the Corporation at its
principal office to the attention of the Secretary, and to the Participant at
the Participant’s last address reflected on the Corporation’s records, or at
such other address as either party may hereafter designate in writing to the
other.  Any such notice shall be given
only when received, but if the Participant is no longer an employee of the
Corporation, shall be deemed to have been duly given by the Corporation when
enclosed in a properly sealed envelope addressed as aforesaid, registered or
certified, and deposited (postage and registry or certification fee prepaid) in
a post office or branch post office regularly maintained by the United States
Government.

 

12.       Plan.  The Award and all rights of the Participant
under this Agreement are subject to, and the Participant agrees to be bound by,
all of the terms and conditions of the provisions of the Plan, incorporated
herein by reference.  In the event of a
conflict or inconsistency between

 

4

 

the
terms and conditions of this Agreement and of the Plan, the terms and
conditions of the Plan shall govern.  The
Participant agrees to be bound by the terms of the Plan and this
Agreement.  The Participant acknowledges
having read and understanding the Plan, the Prospectus for the Plan, and this
Agreement.  Unless otherwise expressly
provided in other sections of this Agreement, provisions of the Plan that
confer discretionary authority on the Administrator do not (and shall not be
deemed to) create any rights in the Participant unless such rights are
expressly set forth herein or are otherwise in the sole discretion of the
Administrator so conferred by appropriate action of the Administrator under the
Plan after the date hereof.

 

13.       Entire Agreement.  This Agreement and the Plan together
constitute the entire agreement and supersede all prior understandings and
agreements, written or oral, of the parties hereto with respect to the subject
matter hereof.  The Plan and this
Agreement may be amended pursuant to Section 8.6 of the Plan.  Such amendment must be in writing and signed
by the Corporation.  The Corporation may,
however, unilaterally waive any provision hereof in writing to the extent such
waiver does not adversely affect the interests of the Participant hereunder,
but no such waiver shall operate as or be construed to be a subsequent waiver
of the same provision or a waiver of any other provision hereof.

 

14.       Limitation
on Participant’s Rights.  Participation
in the Plan confers no rights
or interests other than as herein provided. 
This Agreement creates only a contractual obligation on the part of the
Corporation as to amounts payable and shall not be construed as creating a
trust.  Neither the Plan nor any
underlying program, in and of itself, has any assets.  The Participant shall have only the rights of
a general unsecured creditor of the Corporation with respect to amounts
credited and benefits payable, if any, with respect to the Stock Units, and
rights no greater than the right to receive the Common Stock as a general unsecured
creditor with respect to Stock Units, as and when payable hereunder.

 

15.       Counterparts.  This Agreement may be executed simultaneously
in any number of counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument.

 

16.       Section Headings.  The section headings of this Agreement
are for convenience of reference only and shall not be deemed to alter or
affect any provision hereof.

 

17.       Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
without regard to conflict of law principles thereunder.

 

18.       Construction.  It is intended that the terms of the Award
will not result in the imposition of any tax liability pursuant to Section 409A
of the Code.  This Agreement shall be
construed and interpreted consistent with that intent.

 

[Remainder
of page intentionally left blank]

 

5

 

IN WITNESS WHEREOF,
the Corporation has caused this Agreement to be executed on its behalf by a
duly authorized officer and the Participant has hereunto set his or her hand as
of the date and year first above written.

 

	
  UNIVISION
  COMMUNICATIONS INC.,

  a Delaware corporation

  	
  PARTICIPANT

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
	
  Print Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Print Name

  
						

 

6

 

CONSENT OF SPOUSE

 

In consideration of the execution of the foregoing
Restricted Stock Unit Award Agreement by Univision Communications Inc., I,                                                           ,
the spouse of the Participant therein named, do hereby join with my spouse in
executing the foregoing Restricted Stock Unit Award Agreement and do hereby
agree to be bound by all of the terms and provisions thereof and of the Plan.

 

	
  Dated:

  	
   

  	
  , 2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature
  of Spouse

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Print
  Name

  

 

7

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