Document:

Exhibit
10.21

 

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.  The
option holder has the right to surrender the stock option or any portion
thereof to the Company within 30 days following a Change in Control and to
receive from the Company in exchange therefor a cash payment in an amount equal
to (a) the number of unexercised shares of Common Stock under the option
which are being surrendered multiplied by (b) the excess of (i) the
Fair Market Value per share of Common Stock as of the surrender date, over (ii) the
purchase price of the option as set forth in the underlying option agreement
(the foregoing, a “Limited Right”); 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 Right shall be
effective with respect to only one-half of the options which are then not
exercisable.

 

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
10.28

 

LEHMAN BROTHERS
HOLDINGS INC.

 

AGREEMENT
EVIDENCING A GRANT OF

RESTRICTED STOCK
UNITS

 

TO

 

	
  Number of Restricted Stock Units

  	
   

  	
  Date of Grant

  
	
   

  	
   

  	
   

  
	
  Restricted Stock
  Units

  	
   

  	
   

  

 

1)              Grant of Units.  Pursuant to the Lehman Brothers Holdings Inc. 2005
Stock Incentive Plan (the “Plan”), Lehman Brothers Holdings Inc. (the “Company”)
hereby grants you, as of the Date of Grant specified above, the number of
Restricted Stock Units (“Units”) specified above (which number of Units may be
adjusted pursuant to Paragraph 9 below) subject to the terms and conditions set
forth herein and in the Plan.  A Unit
represents the right to receive one share of common stock (par value $0.10 per
share) of the Company (“Common Stock”).

 

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 should be carefully examined.  All capitalized terms not defined herein shall
have the meaning ascribed to such terms under the Plan.

 

3)              Vesting. 
The Units awarded to you hereunder shall vest immediately upon the Date
of Grant.

 

4)              Termination of Service.  
Units are payable in shares of Common Stock upon termination of your
service on the Board of Directors of the Company.  Delivery of Common Stock hereunder shall be
made on the 30th day following termination of service.

 

5)              Dividend Equivalents. 
As of each date a dividend or other distribution is paid or made on
Common Stock to holders of record on and after the Date of Grant specified
above, you shall be credited with a number of additional Units equal to the
product of (i) the amount of such dividend or distribution paid on one
share of Common Stock, multiplied by (ii) the number of Units then held by
you, divided by the (iii) closing price of one share of Common Stock on
the New York Stock Exchange on such date. 
Such additional Units shall vest immediately.

 

6)              Limitation on Obligations. 
The Company’s obligation with respect to the Units granted hereunder is
limited solely to the delivery to you of shares of Common Stock on the date
when such shares are due to be delivered hereunder, and in no way shall the
Company 

 

 

become obligated to pay cash in respect of such obligation
(except for cash paid pursuant to Paragraph 8 below).

 

7)              Non-Assignment. 
Units may not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of by you, except by will or the laws of descent and
distribution.  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 issue any Common Stock hereunder shall terminate.

 

8)              Change in Control. 
Following the occurrence of any Change in Control that constitutes a
change in ownership or effective control within the meaning of Section 409A(a)(2)(A)(v) of
the Code, you shall be immediately entitled to receive (i) in the same
form of consideration as that received by shareholders generally, the “undiscounted
market value” (at the time of grant) of the shares of Common Stock underlying
your outstanding Units (i.e., the fair market value of your Units determined on
the date of grant) (the “Preliminary Consideration”), and (ii) an
additional right to receive the excess, if any, of the price paid by an
acquirer over such “undiscounted market value” (such excess amount, the “Deferred
Consideration”), which right shall be deferred until the earlier of (X) two
years following such Change in Control or (Y) the end of the term of any
remaining restrictions (the “Deferred Period”), but your Units shall remain
otherwise subject to all issuance restrictions during the Deferred Period.  Following the occurrence of any Change in Control
that does not constitute a change in ownership or effective control within the
meaning of Section 409A(a)(2)(A)(v) of the Code, you shall be
entitled to receive both the Preliminary Consideration and the Deferred
Consideration (if any) upon your termination of service on the Board of
Directors of the Company.

 

9)              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, the number and kind of shares of Common
Stock which may be issued with respect to Units shall be adjusted so as to
reflect such change; provided that with respect to Units granted
to you, any adjustments shall be made only as necessary to maintain your
proportionate interest in shares of Common Stock and preserve, without
exceeding, the value of such Units, and shall be consistent with the provisions
of Code Section 409A.

 

10)        Code Section 409A. It is intended
that none of the Units or payments otherwise due hereunder shall be deferred,
accelerated, extended, paid out or modified in a manner that would result in
the imposition upon you of an additional tax under Section 409A of the
Code; provided that neither Holdings nor any of its employees or
representatives shall have any liability to you with respect to any such
taxes.  In the event that it is
reasonably determined that, as a result of Section 409A of the Code,
payments hereunder may not be made at the time contemplated by the terms of
this Agreement or the Plan, as the case may be, without causing you to be
subject to taxation under Section 409A of the Code, Holdings will make
such payment on the first day that would not result in your incurring any tax
liability under Section 409A of the Code.

 

 

11)        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).

 

12)        No Right to Continued Service. 
The grant of Units shall not confer on you any right to be retained in
the service of the Company, or to receive subsequent Units 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.

 

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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]