Document:

exv10w7

 

EXHIBIT 10.7

Imation Corp. 2005 Stock Incentive Plan

Restricted Stock Award Agreement

     This RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”) effective as of «GrantDt» is
between Imation Corp., a Delaware corporation (the “Company”), and «Name», a non-employee Director
of the Company (the “Participant”), pursuant to and subject to the terms and conditions of the
Imation Corp. 2005 Stock Incentive Plan (the “Plan”).

     The Company desires to award to the Participant a number of shares of the Company’s common
stock, par value $.01 per share (the “Common Stock”), subject to certain restrictions as provided
in this Agreement, in order to carry out the purpose of the Plan. The purpose of this Agreement is
to evidence the terms and conditions of an award of restricted stock granted to the Participant
under the Plan.

     Accordingly, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Company and the Participant hereby agree as follows:

Section 1. Award of Restricted Stock.

     Effective «GrantDt» (the “Effective Date”), the Company granted to the Participant a
restricted stock award of «GrantDt»(«GrantDt») shares of Common Stock (the “Shares”), subject to
the terms and conditions set forth in this Agreement and in accordance with the terms of the Plan
(the “Restricted Stock Award”).

Section 2. Rights with Respect to the Shares.

          (a) Stockholder Rights. With respect to the Shares, the Participant shall be entitled at all
times on and after the date of issuance of the Shares to exercise the rights of a stockholder of
Common Stock of the Company, including the right to vote the Shares and the right to receive
dividends on the Shares as provided in Section 2(b) hereof, unless and until the Shares are
forfeited pursuant to Section 3 hereof. However, the Shares shall be nontransferable and subject
to a risk of forfeiture to the Company at all times prior to the dates on which such Shares become
vested, and the restrictions with respect to the Shares lapse, in accordance with Section 3 of this
Agreement.

          (b) Dividends. As a condition to receiving the Shares under the Plan, the Participant hereby
agrees to defer the receipt of dividends paid on the Shares. Cash dividends or other cash
distributions paid with respect to the Shares prior to the date or dates the Shares vest shall be
subject to the same restrictions, terms and conditions as the Shares to which they relate, shall be
promptly deposited with the Secretary of the Company or a custodian designated by the Secretary,
and shall be forfeited in the event that the Shares with respect to which the dividends were paid
are forfeited.

 

 

          (c) Issuance of Shares. The Company shall cause the Shares to be issued in the Participant’s
name or in a nominee name on the Participant’s behalf, either by book-entry registration or
issuance of a stock certificate or certificates evidencing the Shares, which certificate or
certificates shall be held by the Secretary of the Company or the stock transfer agent or
brokerage service selected by the Secretary of the Company to provide such services for the Plan.
The Shares shall be restricted from transfer and shall be subject to an appropriate stop-transfer
order. If any certificate is issued, the certificate shall bear an appropriate legend referring to
the restrictions applicable to the Shares. The Participant hereby agrees to the retention by the
Company of the Shares and, if a stock certificate is issued, the Participant agrees to execute and
deliver to the Company a blank stock power with respect to the Shares as a condition to the receipt
of this Restricted Stock Award. After any Shares vest pursuant to Section 3 hereof, and following
payment of the applicable withholding taxes pursuant to Section 6 of this Agreement, the Company
shall promptly cause to be issued a certificate or certificates, registered in the Participant’s
name, evidencing such vested whole Shares (less any Shares withheld to pay withholding taxes) and
shall cause such certificate or certificates to be delivered to the Participant free of the legend
and the stop-transfer order referenced above. The Company will not deliver any fractional Share
but will pay, in lieu thereof, the Fair Market Value of such fractional Share at the time
certificates evidencing the Shares are delivered to the Participant.

Section 3. Vesting; Forfeiture.

          (a) Vesting. Subject to the terms and conditions of this Agreement, and except as otherwise
provided in Section 3(c) hereof, twenty five percent (25%) of the Shares shall vest, and the
restrictions with respect to the Shares shall lapse, on each of the first, second, third and fourth
anniversaries of the Effective Date if the Participant serves continuously on the Board of
Directors of the Company until such respective vesting dates.

          (b) Forfeiture. Except as otherwise provided in Section 3(c) hereof, if the Participant
ceases to serve on the Board of Directors of the Company for any reason prior to the vesting of the
Shares pursuant to Section 3(a) hereof, Participant’s rights to all of the unvested Shares shall be
immediately and irrevocably forfeited, including the right to vote such Shares and the right to
receive dividends on such Shares.

          (c) Change of Control. Notwithstanding the vesting and forfeiture provisions contained in
Sections 3(a) and 3(b) hereof, but subject to the other terms and conditions set forth in this
Agreement, in the event of a Change of Control, the Participant shall become immediately vested in
all of the Shares, and the restrictions with respect to the Shares shall lapse, as of the date of
the Change of Control. In the event that the provisions of this Section 3(c) result in “payments”
that are finally and conclusively determined by a court or Internal Revenue Service proceeding to
be subject to the excise tax imposed by Section 4999 of the Code, the Company shall pay to the
Participant an additional amount such that the net amount retained by the Participant following
realization of all compensation under the Plan that resulted in such “payments,” after allowing for
the amount of such excise tax and any additional federal, state and local income and employment
taxes paid on the additional amount, shall be equal to the net amount that would otherwise have
been retained by the Participant if there were no excise tax imposed by Section 4999 of the Code.

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          (d) Early Vesting. Except as provided in Section 3(c) hereof or unless otherwise determined
by the Committee in its sole discretion, in no event will any of the Shares vest prior to their
respective vesting dates set forth in Section 3(a) hereof. 

Section 4. Restrictions on Transfer.

     Until the Shares vest pursuant to Section 3 hereof, neither the Shares, nor any right with
respect to the Shares under this Agreement, may be sold, assigned, transferred, pledged,
hypothecated (by operation of law or otherwise) or otherwise conveyed or encumbered and shall not
be subject to execution, attachment or similar process. Any attempted sale, assignment, transfer,
pledge, hypothecation or other conveyance or encumbrance shall be void and unenforceable against
the Company or any Affiliate of the Company.

Section 5. Distributions and Adjustments.

          (a) If any Shares vest subsequent to any change in the number or character of the Common Stock
of the Company through any stock dividend or other distribution, recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of shares or other securities of the Company, issuance of warrants or other
rights to purchase shares of Common Stock or other securities of the Company or other similar
corporate transaction or event such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under this Agreement, then the Committee shall, in such manner as it
may deem equitable, in its sole discretion, adjust any or all of the number and type of such
Shares.

          (b) Any additional shares of Common Stock of the Company, any other securities of the Company
and any other property distributed with respect to the Shares prior to the date or dates the Shares
vest shall be subject to the same restrictions, terms and conditions as the Shares to which they
relate and shall be promptly deposited with the Secretary of the Company or a custodian designated
by the Secretary.

Section 6. Taxes.

          (a) The Participant acknowledges that the Participant will consult with the Participant’s
personal tax adviser regarding the income tax consequences of the grant of the Shares, payment of
dividends on the Shares, the vesting of the Shares and any other matters related to this Agreement.
In order to comply with all applicable federal, state, local or foreign income tax laws or
regulations, the Company may take such action as it deems appropriate to ensure that all applicable
federal, state, local or foreign payroll, withholding, income or other taxes, which are the
Participant’s sole and absolute responsibility, are withheld or collected from the Participant.

          (b) In accordance with the terms of the Plan, and such rules as may be adopted by the
Committee administering the Plan, the Participant may elect to satisfy tax withholding obligations,
if any, arising from the receipt of, or the lapse of restrictions relating to, the Shares by (i)
delivering cash, check, bank draft, money order or wire transfer payable to the order of the
Company, (ii) having the Company withhold a portion of the Shares otherwise to be delivered

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having a Fair Market Value equal to the amount of such taxes, or (iii) delivering to the
Company shares of Common Stock having a Fair Market Value equal to the amount of such taxes. The
Company will not deliver any fractional Share but will pay, in lieu thereof, the Fair Market Value
of such fractional Share. The Participant’s election must be made on or before the date that the
amount of tax to be withheld is determined. If the Participant does not make an election, the
Company will withhold a portion of the Shares otherwise to be delivered having a Fair Market Value
equal to the amount of such taxes.

Section 7. Definitions.

     Terms not defined in this Agreement shall have the meanings given to them in the Plan, and the
following terms shall have the following meanings when used in this Agreement:

          (a) “Change of Control” means any of the following events: 

	 	i.  	the acquisition by any person, 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 “Exchange Act”), other
than the Company or an Affiliate, or any employee benefit plan of the
Company or an Affiliate, of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%)
or more of either the then outstanding Common Stock or the combined
voting power of the Company’s then outstanding voting securities in a
transaction or series of transactions not approved in advance by a vote
of a majority of the Continuing Directors (as hereinafter defined); or
	 
	 	ii.  	individuals who, as of the Effective Date,
constitute the Board of Directors of the Company (generally the
“Directors” and as of the Effective Date the “Continuing Directors”)
cease for any reason to constitute at least a majority thereof,
provided that any person becoming a Director subsequent to the
Effective Date whose nomination for election was approved in advance by
a vote of a majority of the Continuing Directors (other than a
nomination of an individual whose initial assumption of office is in
connection with an actual or threatened solicitation with respect to
the election or removal of the Directors of the Company, as such terms
are used in Regulation 14A under the Exchange Act) shall be deemed to
be a Continuing Director; or
	 
	 	iii.  	the approval by the shareholders of the Company
of a reorganization, merger, consolidation, liquidation or dissolution
of the Company or of the sale (in one transaction or a series of
related transactions) of all or substantially all of the assets of the
Company other than a reorganization, merger, consolidation,
liquidation, dissolution or sale approved in advance by a vote of a
majority of the Continuing Directors; or

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	 	iv.  	the first purchase under any tender offer or
exchange offer (other than an offer by the Company or an Affiliate)
pursuant to which Common Stock is purchased.

Section 8. Governing Law.

     The internal law, and not the law of conflicts, of the State of Delaware will govern all
questions concerning the validity, construction and effect of this Agreement.

Section 9. Plan Provisions.

     This Agreement is made under and subject to the provisions of the Plan, and all of the
provisions of the Plan are also provisions of this Agreement. If there is a difference or conflict
between the provisions of this Agreement and the provisions of the Plan, the provisions of the Plan
will govern. By signing this Agreement, the Participant confirms that the Participant has received
a copy of the Plan and represents that the Participant is familiar with the terms and provisions
thereof, and hereby accepts this Restricted Stock Award subject to all the terms and provisions of
the Plan.

Section 10. No Rights to Continue Board Service.

     Nothing herein shall be construed as giving the Participant the right to continue to serve on
the Board of Directors of the Company.

Section 11. Entire Agreement.

     This Agreement together with the Plan supersede any and all other prior understandings and
agreements, either oral or in writing, between the parties with respect to the subject matter
hereof and constitute the sole and only agreements between the parties with respect to said subject
matter. All prior negotiations and agreements between the parties with respect to the subject
matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have been made by any
party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the
Plan and that any agreement, statement or promise that is not contained in this Agreement or the
Plan shall not be valid or binding or of any force or effect.

Section 12. Modification.

     No change or modification of this Agreement shall be valid or binding upon the parties unless
the change or modification is in writing and signed by the parties. Notwithstanding the preceding
sentence, the Plan, this Agreement and the Restricted Stock Award may be amended, altered,
suspended, discontinued or terminated to the extent permitted by the Plan.

Section 13. Shares Subject to Agreement.

     The Shares shall be subject to the terms and conditions of this Agreement. Except as
otherwise provided in Section 5, no adjustment shall be made for dividends or other rights for
which the record date is prior to the issuance of the Shares. The Company shall not be required

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to deliver any Shares until the requirements of any federal or state securities or other laws,
rules or regulations (including the rules of any securities exchange) as may be determined by the
Committee to be applicable are satisfied.

Section 14. Severability.

     In the event that any provision that is contained in the Plan or this Agreement is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the
Plan or this Agreement for any reason and under any law as deemed applicable by the Committee, the
invalid, illegal or unenforceable provision shall be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in the determination of
the Committee, materially altering the purpose or intent of the Plan or this Agreement, such
provision shall be stricken as to such jurisdiction or Shares, and the remainder of the Plan or
this Agreement shall remain in full force and effect.

Section 15. Headings.

     Headings are given to the sections and subsections of this Agreement solely as a convenience
to facilitate reference. Such headings shall not be deemed in any way material or relevant to the
construction or interpretation of this Agreement or any provision hereof.

Section 16. Participant’s Acknowledgments.

     The Participant hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee or the Board of Directors of the Company, as appropriate, upon any
questions arising under the Plan or this Agreement. Any determination in this connection by the
Company, including the Board of Directors of the Company or the Committee, shall be final, binding
and conclusive. The obligations of the Company and the rights of the Participant are subject to
all applicable laws, rules and regulations.

Section 17. Parties Bound.

     The terms, provisions and agreements that are contained in this Agreement shall apply to, be
binding upon, and inure to the benefit of the parties and their respective heirs, executors,
administrators, legal representatives and permitted successors and assigns, subject to the
limitation on assignment expressly set forth herein. This Agreement shall have no force or effect
unless it is duly executed and delivered by the Company.

     The Company has caused this Agreement to be signed and delivered as of the date set forth
above.

	 	 	 
	

	 	IMATION CORP.
	 
	 	 
	

	 	By:                                                                
	 
	 	 
	

	 	Name:                                                            
	 
	 	 
	

	 	Title:                                                              

6exv10w8

 

EXHIBIT 10.8

Imation Corp. 2000 Stock Incentive Plan,

as Amended February 6, 2003

Amendment to Restricted Stock Award Agreement

     This RESTRICTED STOCK AWARD AGREEMENT AMENDMENT (the “Amendment”) effective as of May ___,
2005 between Imation Corp., a Delaware corporation (the “Company”), and «Name», an employee
of the Company or one of its Affiliates (the “Participant”).

     WHEREAS, pursuant to a Restricted Stock Award Agreement effective as of «Name» (the
“Agreement”), the Company granted to Participant a restricted stock award (the “Restricted Stock
Award”) of «Name» («Name») shares (the “Shares”) of the Company’s common stock, par
value $.01 per share, subject to the terms and conditions set forth in the Agreement and in
accordance with the terms and conditions of the Imation Corp. 2000 Stock Incentive Plan, as Amended
February 6, 2003 (the “Plan”).

     WHEREAS, Section 3 of the Plan provides that the committee administering the Plan (the
“Committee”) has full power and authority, subject to the express provisions of the Plan and
applicable law, to amend the terms and conditions of any award granted under the Plan.

     WHEREAS, pursuant to Section 3 of the Plan, the Committee has determined to amend the
Agreement to provide that the Shares will vest upon certain events following a change of control of
the Company.

     NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Company and the Participant hereby agree to amend the Agreement as
follows:

Section 1. Section 3 of the Agreement is hereby amended in its entirety to read as follows:

     3. Vesting; Forfeiture.

     (a) Vesting. Subject to the terms and conditions of this Agreement, and
except as otherwise provided in Section 3(c) hereof, twenty five percent (25%) of the
Shares shall vest, and the restrictions with respect to the Shares shall lapse, on each
of the first, second, third and fourth anniversaries of the Effective Date if the
Participant remains continuously employed by the Company or an Affiliate of the Company
until such respective vesting dates.

 

 

     (b) Forfeiture. Except as otherwise provided in Section 3(c) hereof, if
the Participant ceases to be employed by the Company and all Affiliates of the Company
for any reason prior to the vesting of the Shares pursuant to Section 3(a) hereof,
Participant’s rights to all of the unvested Shares shall be immediately and irrevocably
forfeited, including the right to vote such Shares and the right to receive dividends on
such Shares.

     (c) Change of Control. Notwithstanding the vesting and forfeiture
provisions contained in Sections 3(a) and 3(b) hereof, but subject to the other terms
and conditions set forth in this Agreement, in the event the Participant shall cease to
be employed by the Company or an Affiliate for any reason other than death, Disability
or Termination for Cause within two (2) years following a Change of Control, the
Participant shall become immediately vested in all of the Shares, and the restrictions
with respect to the Shares shall lapse, as of the date of such termination of
employment. In the event that the provisions of this Section 3(c) result in “payments”
that are finally and conclusively determined by a court or Internal Revenue Service
proceeding to be subject to the excise tax imposed by Section 4999 of the Code, and the
Participant has not received any additional cash payment from the Company relating
thereto under the provisions of Section 6 of the Severance Agreement between the Company
and the Participant (the “Severance Agreement”), the Company shall pay to the
Participant an additional amount such that the net amount retained by the Participant
following realization of all compensation under the Plan that resulted in such
“payments,” after allowing for the amount of such excise tax and any additional federal,
state and local income and employment taxes paid on the additional amount, shall be
equal to the net amount that would otherwise have been retained by the Participant if
there were no excise tax imposed by Section 4999 of the Code. If the Participant
receives any additional cash payment from the Company under Section 6 of the Severance
Agreement, the foregoing sentence shall be of no force or effect and the provisions of
the Severance Agreement shall be deemed to supersede the foregoing sentence in its
entirety.

     (d) Early Vesting. Except as provided in Section 3(c) hereof or unless
otherwise determined by the Committee in its sole discretion, and notwithstanding any
provisions contained in the Severance Agreement, in no event will any of the Shares vest
prior to their respective vesting dates set forth in Section 3(a) hereof. Without
limiting the generality of the foregoing, the Company and the Participant hereby
expressly acknowledge and agree that the provisions of Section 5(i)(d) of the Severance
Agreement shall not apply to the Shares or to this Restricted Stock Award.

Section 2. Section 7 of the Agreement is hereby amended in its entirety to read as follows:

     7. Definitions.

Terms not defined in this Agreement shall have the meanings given to them in the
Plan, and the following terms shall have the following meanings when used in this
Agreement:

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     (a) “Change of Control” means any of the following events:

     (i) the acquisition by any person, 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 “Exchange Act”), other than the Company or an
Affiliate, or any employee benefit plan of the Company or an Affiliate, of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of thirty percent (30%) or more of either the then outstanding
Common Stock or the combined voting power of the Company’s then outstanding
voting securities in a transaction or series of transactions not approved in
advance by a vote of a majority of the Continuing Directors (as hereinafter
defined); or

     (ii) individuals who, as of the Effective Date, constitute the Board of
Directors of the Company (generally the “Directors” and as of the Effective
Date the “Continuing Directors”) cease for any reason to constitute at least
a majority thereof, provided that any person becoming a Director subsequent
to the Effective Date whose nomination for election was approved in advance
by a vote of a majority of the Continuing Directors (other than a nomination
of an individual whose initial assumption of office is in connection with an
actual or threatened solicitation with respect to the election or removal of
the Directors of the Company, as such terms are used in Regulation 14A under
the Exchange Act) shall be deemed to be a Continuing Director; or

     (iii) the approval by the shareholders of the Company of a
reorganization, merger, consolidation, liquidation or dissolution of the
Company or of the sale (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company other
than a reorganization, merger, consolidation, liquidation, dissolution or
sale approved in advance by a vote of a majority of the Continuing
Directors; or

     (iv) the first purchase under any tender offer or exchange offer (other
than an offer by the Company or an Affiliate) pursuant to which Common Stock
is purchased.

     (b) “Disability” shall be as defined under the Imation Corp. Long Term
Disability Income Protection Plan.

     (c) “Termination for Cause” means termination of Participant’s employment with
the Company or an Affiliate for the following acts: (i) the Participant’s gross
incompetence or substantial failure to perform his or her duties, (ii) misconduct by
the Participant that causes or is likely to cause harm to the Company or that causes
or is likely to cause harm to the Company’s reputation, as determined by the
Company’s Board of Directors in its sole and

3

 

absolute discretion (such misconduct may include, without limitation, insobriety at
the workplace during working hours or the use of illegal drugs), (iii) failure to
follow directions of the Company’s Board of Directors that are consistent with the
Participant’s duties, (iv) the Participant’s conviction of, or entry of a pleading
of guilty or nolo contendre to, any crime involving moral turpitude, or the entry of
an order duly issued by any federal or state regulatory agency having jurisdiction
in the matter permanently prohibiting the Participant from participating in the
conduct of the affairs of the Company or (v) any breach of this Agreement that is
not remedied within thirty (30) days after receipt of written notice from the
Company specifying such breach in reasonable detail.

Section 3. Section 10 of the Agreement is hereby amended in its entirety to read as follows:

     10. No Rights to Continue Service or Employment.

          Nothing herein shall be construed as giving the Participant the right to
continue in the employ or to provide services to the Company or any Affiliate,
whether as an employee or as a consultant or otherwise, or interfere with or
restrict in any way the right of the Company or any Affiliate to discharge the
Participant, whether as an employee or consultant or otherwise, at any time, with or
without cause. In addition, the Company or any Affiliate may discharge the
Participant free from any liability or claim under this Agreement, unless otherwise
expressly provided herein.

Section 4. Section 11 of the Agreement is hereby amended in its entirety to read as
follows:

     11. Entire Agreement.

          Except as specifically provided herein with regard to the Severance Agreement,
(i) this Agreement together with the Plan supersede any and all other prior
understandings and agreements, either oral or in writing, between the parties with
respect to the subject matter hereof and constitute the sole and only agreements
between the parties with respect to said subject matter; (ii) all prior negotiations
and agreements between the parties with respect to the subject matter hereof are
merged into this Agreement; and (iii) each party to this Agreement acknowledges that
no representations, inducements, promises or agreements, orally or otherwise, have
been made by any party or by anyone acting on behalf of any party, which are not
embodied in this Agreement or the Plan and that any agreement, statement or promise
that is not contained in this Agreement or the Plan shall not be valid or binding or
of any force or effect.

Section 5. No other terms or conditions of the Agreement are amended hereby, and all such terms and
conditions of the Agreement shall remain on full force and effect.

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Section 6. The terms, provisions and agreements that are contained in this Amendment shall apply
to, be binding upon and inure to the benefit of the parties and their respective heirs, executors,
administrators, legal representatives and permitted successors and assigns, subject to the limitations on assignment expressly set forth in the Agreement. This Amendment shall have no
force or effect unless it is duly executed and delivered by the Company and the Participant.

     The Company and the Participant have caused this Amendment to be signed and delivered as of
the date set forth above.

	 	 	 
	

	 	IMATION CORP.
	 
	 	 
	

	 	By:                                                                
	

	 	Name:                                                            
	

	 	Title:                                                              
	 
	 	 
	

	 	PARTICIPANT
	 
	 	 
	

	 	                                                            
	

	 	«GrantDt»

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