Document:

Exhibit 10.14

 

CRA INTERNATIONAL, INC.

 

Nonqualified Stock Option

under the 2006 Equity Incentive Plan

 

Pursuant to the CRA International, Inc. Amended and Restated 2006 Equity Incentive Plan, as may be amended from time to time (the “Plan”), and subject to the terms and conditions hereinafter set forth, CRA International, Inc. (the “Company”) hereby grants to the employee named below (hereinafter the “Holder”) the right and option to purchase from the Company an aggregate of                  shares of the Company’s common stock, without par value (“Common Stock”), at the time and in the manner hereinafter stated.  The basic terms of this option are as follows:

 

Date of Grant:

 

Name of Holder:

 

Address:

 

City, State, Zip:

 

Maximum number of shares for

which this option is exercisable:

 

Exercise (purchase) price per share:

 

Expiration date of option:  Tenth Anniversary of the Date of Grant

 

Vesting Rate:                       25% on the first anniversary of the Date of Grant and an additional 25%, on each succeeding anniversary, so as to be 100% vested on the fourth anniversary of the Date of Grant.

 

Position in, or relationship to, the Company:

 

Condition:

 

1.              This option is subject to the Company’s cash and stock ownership guidelines, as in effect from time to time (the “Ownership Guidelines”).

 

Other terms and conditions:

 

This option is subject to the Terms and Conditions attached hereto as Schedule A, which are incorporated by reference herein.  By signing below you both accept this option and acknowledge that you have read, understand, agree to and accept the Terms and Conditions.  The undersigned further acknowledges receipt of the Plan, as amended, the prospectus describing the Plan (documents incorporated by reference in the prospectus are available upon request), and the annual report of the Company for the most recent fiscal year.

 

Signed as a Massachusetts agreement under seal as of the Grant Date:

 

CRA INTERNATIONAL, INC.

 

	
 
    	
 
    	
 
    
	
By: Paul Maleh, President   and CEO
    	
{Insert   Holder name}
    

 

 

Schedule A

 

CRA INTERNATIONAL, INC.

 

Nonqualified Stock Option

under the 2006 Equity Incentive Plan

 

TERMS AND CONDITIONS

 

FIRST: This option is and shall be subject in every respect to the provisions of the Plan, as may be amended from time to time, which is incorporated herein by reference and made a part hereof.  In the event of any conflict or inconsistency between the terms hereof and those of the Plan, the latter shall prevail.  References herein to the Plan Administrator shall mean the Plan Administrator as defined in the Plan.

 

Anything herein to the contrary notwithstanding, this option may not be exercised at any time that the Holder does not or to the extent that the Holder would not meet his or her ownership guideline under the Ownership Guidelines, provided that this ownership condition, and any effect it may have on the transferability of shares issued pursuant to the exercise of this option, shall not apply after the sixth anniversary of the Date of Grant of this option.

 

Subject to the other provisions contained herein, this option shall be exercised by the delivery of written notice to the Company (the “Notice”) setting forth the number of shares with respect to which the option is to be exercised and the address to which the certificates for such shares are to be mailed, together with payment therefor made by (i) cash or check payable to the order of the Company for an amount equal to the option price for the number of shares specified in the Notice; or (ii) with the consent of the Plan Administrator, by delivery to the Company of shares of Common Stock that are not then subject to restriction under any Company plan (“unrestricted shares”), and that have a fair market value on the date of surrender sufficient to satisfy the option price for the number of shares specified in the Notice; (iii) with the consent of the Plan Administrator, by delivery of such documentation as the Plan Administrator and a broker, if applicable, shall require to effect an exercise of the option and delivery to the Company of the sale or loan proceeds required to pay the option price for the number of shares specified in the Notice; (iv) with the consent of the Plan Administrator, such other consideration which is acceptable to the Plan Administrator and which has a fair market value equal to the option price for the number of specified in the Notice; or (v) with the consent of the Plan Administrator, a combination of (i), (ii), (iii), and/or (iv).  For the purpose of the preceding sentence, the fair market value per share of the Common Stock so delivered to the Company shall be the closing price per share on the delivery date as reported by a nationally recognized stock exchange, or, if shares of Common Stock are not reported by such a stock exchange, the fair market value as determined by the Plan Administrator.

 

SECOND:  The Company, in its discretion, may file a registration statement on Form S-8 under the Securities Act of 1933 to register shares of Common Stock reserved for issuance under the Plan.  At any time at which such a registration statement is not in effect, it shall be an additional condition precedent to any exercise of this option that the Holder shall deliver to the Company a customary “investment letter” satisfactory to the Company and its counsel in which, among other things, the Holder shall state that the Holder is purchasing the shares for investment and acknowledges that they are not freely transferable except in compliance with state and federal securities laws.

 

THIRD:  Within a reasonable time after receipt by the Company of the Notice and payment for any shares to be purchased hereunder and, if required as a condition to exercise, the investment letter described in paragraph SECOND, the Company will deliver or cause to be delivered to the Holder (or if

 

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any other individual or individuals are exercising this option, to such individual or individuals) at the address specified in the Notice a certificate or certificates for the number of shares with respect to which the option is then being exercised, registered in the name or names of the individual or individuals exercising the option, either alone or jointly with another person or persons with rights of survivorship, as the individual or individuals exercising the option shall prescribe in writing to the Company at or prior to such purchase; provided, however, that if any law or regulation or order of the Securities and Exchange Commission or other body having jurisdiction in the premises shall require the Company or the Holder (or the individual or individuals exercising this option) to take any action in connection with the shares then being purchased, the date for the delivery of the certificates for such shares shall be extended for the period necessary to take and complete such action, it being understood that the Company shall have no obligation to take and complete any such action.  In lieu of delivering any such certificates, the Company may instead issue such shares to the Holder (or if any other individual or individuals are exercising this option, to such individual or individuals) in book-entry form in the Company’s stock record books. The Company may imprint upon such certificate, or any such book entry, the legend set forth in the Plan or such other legends referencing stock transfer restrictions which counsel for the Company considers appropriate.  Delivery by the Company of the certificates for such shares shall be deemed effected for all purposes when the Company or a stock transfer agent of the Company shall have deposited such certificates in the United States mail, addressed to the Holder, at the address specified in the Notice or when such shares are issued in book-entry form in the Company’s stock record books.

 

FOURTH:  The existence of this option shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of Common Stock, or any issue of bonds, debentures, preferred or prior preference stock or other capital stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

If the Company shall effect a subdivision or consolidation of shares or other capital readjustment, the payment of a stock dividend, or other increase or reduction of the number of shares of the Common Stock outstanding, in any such case without receiving compensation therefor in money, services or property, then the number, class, and price per share of shares of stock subject to this option shall be appropriately adjusted in such a manner as to entitle the Holder to receive upon exercise of this option, for the same aggregate cash consideration, the same total number and class of shares as the Holder would have received as a result of the event requiring the adjustment had the Holder exercised this option in full immediately prior to such event.

 

After a merger of one or more corporations or other entities with or into the Company or after a consolidation of the Company and one or more corporations or other entities that, in any event, do not constitute a “Change in Control” (as defined below), the Holder shall, at no additional cost, be entitled upon exercise of this option to receive in lieu of the shares of Common Stock as to which this option was exercisable immediately prior to such event, the number and class of shares of stock or other securities, cash or property (including, without limitation, shares of stock or other securities of another corporation or entity or Common Stock) to which the Holder would have been entitled pursuant to the terms of the agreement of merger or consolidation if, immediately prior to such merger or consolidation, the Holder had been the holder of record of a number of shares of Common Stock equal to the number of shares for which this option shall be so exercised.

 

If (1) the Company is merged with or into or consolidated with another corporation or other entity, other than a merger or consolidation in which the stockholders of the Company immediately prior

 

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to such merger or consolidation continue to own after such merger or consolidation securities representing at least fifty percent (50%) of the voting power of the Company or the surviving or resulting entity, as the case may be, (2) any “person” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than the Company or one of its subsidiaries, becomes a beneficial owner (within the meaning of Rule 13d-3, as amended, as promulgated under the Exchange Act), directly or indirectly, in a single transaction or a series of transactions, of securities representing more than 50% of the combined voting power of the Company’s then outstanding securities, or (3) if the Company is liquidated, or sells or otherwise disposes of substantially all its assets to another entity while this option remains outstanding (a “Change in Control”), then (i) subject to the provisions of clauses (iii), (iv) and (v) below, upon and after the effective date of such Change in Control the Holder of this option shall be entitled, upon exercise of this option, to receive, in lieu of the shares of Common Stock as to which this option was exercisable immediately prior to such event, the number and class of shares of stock or other securities, cash or property (including, without limitation, shares of stock or other securities of another corporation or entity or Common Stock) to which the Holder would have been entitled pursuant to the terms of such Change in Control if, immediately prior to such Change in Control, the Holder had been the holder of a number of shares of Common Stock equal to the number of shares as to which this option shall be so exercised; (ii) subject to the provisions of clauses (iv) and (v) below, the Plan Administrator may accelerate, fully or in part, the time for exercise of this option, so that from and after a date prior to the effective date of such Change in Control specified by the Plan Administrator, this option to the extent so accelerated shall be exercisable; (iii) subject to clauses (iv) and (v) below, this option may be canceled by the Plan Administrator as of the effective date of any such Change in Control provided that (x) notice of such cancellation shall be given to the Holder and (y) the Holder shall have the right to exercise this option to the extent that the same is then exercisable or, if the Plan Administrator shall have accelerated the time for exercise of this option pursuant to clause (ii) above, to the extent exercisable taking into account such acceleration during the period preceding the effective date of such Change in Control; (iv) the surviving, continuing, successor, or purchasing corporation or other business entity or parent corporation thereof, as the case may be, with respect to such Change in Control (the “Acquiror”), may, without the consent of any Plan participant, assume the Company’s rights and obligations under this option or substitute for this option a substantially equivalent stock option, and if it does so and the Holder’s employment with the Acquiror or a subsidiary thereof terminates without “cause” (as defined below) within twelve (12) months following such Change in Control, then the time for exercise of this option (or the stock option so substituted therefor) so that such option shall be exercisable in full from and after the effective date of such termination of employment, and may thereafter be exercised for the period of time set forth in this agreement; or (v) in the event of a Change in Control in which the Acquiror does not assume or substitute for this option, any acceleration of the time of exercise of this option in connection with such Change in Control shall be at the discretion of the Plan Administrator as set forth in the foregoing clauses of this paragraph.

 

Except as hereinbefore expressly provided, the issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property, or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock then subject to outstanding options.

 

FIFTH:  No person shall, by virtue of the granting of this option to the Holder, be deemed to be a holder of any shares purchasable under this option or to be entitled to the rights or privileges of a holder of such shares unless and until this option has been exercised with respect to such shares and they have been issued pursuant to that exercise of this option.

 

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The Company shall, at all times while any portion of this option is outstanding, reserve and keep available, out of shares of its authorized and unissued stock or reacquired shares, a sufficient number of shares of its Common Stock to satisfy the requirements of this option; shall comply with the terms of this option promptly upon exercise of the option rights; and shall pay all fees or expenses necessarily incurred by the Company in connection with the issuance and delivery of shares pursuant to the exercise of this option.

 

SIXTH:  Except as otherwise set forth in the Plan, this option is not transferable by the Holder otherwise than by will or under the laws of descent and distribution.  The granting of this option shall not impose upon the Company any obligation to employ or to continue to employ the Holder.  The right of the Company to terminate the employment of the Holder shall not be diminished or affected by reason of the fact that this option has been granted to such Holder.

 

This option is exercisable, subject to the vesting rate and certain other terms and conditions contained herein, at any time prior to the termination of this option and, during the Holder’s lifetime, only by the Holder.  Except as may be otherwise expressly provided herein, this option shall terminate on the earliest of:

 

(a)                                 the date of expiration thereof;

 

(b)                                 immediately upon the termination of the Holder’s employment with or performance of services for the Company (or any parent or subsidiary of the Company) by the Company (or any such parent or subsidiary) for cause (as defined below, as determined by the Company or such parent or subsidiary); or

 

(c)                                  in the case of termination by the Company without cause or voluntary termination by the Holder, thirty (30) days after the termination of the Holder’s employment with or performance of services for the Company (or any parent or subsidiary of the Company) for any reason other than death or retirement (as defined below).

 

An employment relationship between the Company (or any parent or subsidiary of the Company) and the Holder shall be deemed to exist during any period in which the Holder is employed by the Company (or any such parent or subsidiary).  Whether authorized leave of absence, or absence on military or government service, shall constitute termination of the employment relationship between the Company (or any parent or subsidiary of the Company) and the Holder shall be determined by the Plan Administrator at the time thereof.

 

As used herein, “cause” shall mean (w) any material breach by the Holder of any agreement to which the Holder and the Company (or any parent or subsidiary) are both parties, (x) any act or omission to act by the Holder which may have a material and adverse effect on the business of the Company (or any parent or subsidiary) or on the Holder’s ability to perform services for the Company (or any parent or subsidiary), including, without limitation, the commission of any crime (other than ordinary traffic violations), (y) any material misconduct or material neglect of duties by the Holder in connection with the business or affairs of the Company (or any parent or subsidiary) or any affiliate of the Company (or any such parent or subsidiary) or (z) “cause” as may otherwise be defined in any other agreement between the Holder and the Company (or any such parent or subsidiary).

 

As used herein “retirement” shall mean the retirement of the Holder in good standing from the employment of the Company for reason of age or for reason of disability under the then established rules of the Company and, in either case, before the expiration date of this option. Whether retirement is for reason of disability under the then established rules of the Company shall be determined by the Company

 

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in its sole discretion. In the event of such retirement for reason of age, this option shall terminate on the date that is the earlier of its expiration date and a date ninety (90) days after the Holder’s retirement and, after such retirement, the Holder shall have the right, at any time prior to such termination date, to exercise this option to the extent the Holder was entitled to exercise such option immediately prior to such retirement.  In the event of such retirement for reason of disability, this option shall terminate on the date that is the earlier of its expiration date and a date one (1) year after the Holder’s retirement.  Upon such retirement for reason of disability, this option shall vest in full and, after such retirement, the Holder shall have the right, at any time prior to such termination date, to exercise this entire option.

 

In the event of the death of the Holder while the Holder is in the employment of the Company (or any parent or subsidiary of the Company) and before the expiration date of this option, this option shall vest in full and, thereafter, shall terminate on the date that is the earlier of its expiration date and a date one (1) year after the death of the Holder.  After the death of the Holder, the Holder’s executors, administrators or any person or persons to whom the Holder’s option has been transferred by will or by the laws of descent and distribution shall have the right, at any time prior to such termination date, to exercise this entire option.

 

SEVENTH:  The Holder hereby agrees that whenever shares of Common Stock are to be issued upon the exercise of this option, the Company shall be entitled to require as a condition of such issuance that the Holder remit an amount sufficient to satisfy statutory minimum federal, state and other governmental withholding tax requirements related thereto. The Holder further agrees that the Company and its affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Holder.

 

EIGHTH:  Any notice to be given to the Company hereunder shall be deemed sufficient if addressed to the Company and delivered by hand or by mail to the Treasurer of the Company, 200 Clarendon Street, Boston, Massachusetts 02116 or such other address as the Company may hereafter designate.

 

Any notice to be given to the Holder hereunder shall be deemed sufficient if addressed to and delivered in person to the Holder or when deposited in the mail, postage prepaid, addressed to the Holder at the Holder’s address furnished to the Company.

 

NINTH:  This option is subject to all laws, regulations and orders of any governmental authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Holder agrees that the Holder will not exercise the option granted hereby nor will the Company be obligated to issue or sell any shares of stock hereunder if the exercise thereof or the issuance or sale of such shares, as the case may be, would constitute a violation by the Holder or the Company of any such law, regulation or order or any provision thereof.  The Company shall not be obligated to take any affirmative action in order to cause the exercise of this option or the issuance or sale of shares pursuant hereto to comply with any such law, regulation, order or provision.

 

TENTH:  The Holder agrees that upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, the Holder shall agree in writing that for a period of time not to exceed one hundred eighty (180) days from the effective date of any registration of securities of the Company that the Holder will not sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any shares of Common Stock issued pursuant to the exercise of this option without the prior written consent of the Company or such underwriters, as the case may be.

 

ELEVENTH:  This option and the Holder (with respect to this option) shall be subject to any policies applicable to the Company as may be adopted and/or modified from time to time by the

 

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Company and/or applicable law or the rules of any stock exchange on which the Common Stock is listed that provide for (i) the cancellation of this option, (ii) reimbursement of this option by the Holder, and (iii) effecting any other right of recoupment of equity or other compensation provided with respect to this option under the Plan.

 

TWELFTH:  This option shall be governed by, and construed and enforced in accordance with, the substantive laws of The Commonwealth of Massachusetts.

 

*     *     *

 

7Exhibit 10.18

 

CRA INTERNATIONAL, INC.

 

2006 EQUITY INCENTIVE PLAN
  RESTRICTED STOCK UNIT AWARD AGREEMENT

 

Name of Grantee:

 

Number of Restricted Stock Units:

 

Grant Date:

 

CRA INTERNATIONAL, INC. (the “Company”) has selected you (“Grantee”) to receive an award of Restricted Stock Units identified above, subject to the terms set forth on Appendix A hereto and the attached Statement of Terms and Conditions, each of which is incorporated herein by reference and made a part of this Agreement, and to the provisions of the Company’s Amended and Restated 2006 Equity Incentive Plan, as may be amended from time to time (the “Plan”).  By signing below you both accept this Award and acknowledge that you have read, understand, agree to and accept this Restricted Stock Unit Award Agreement (the “Agreement”).

 

Condition:

 

1.              This Restricted Stock Unit Award and any shares issued in respect of Restricted Stock Units pursuant thereto are subject to the Company’s stock and cash ownership guidelines, as in effect from time to time (the “Ownership Guidelines”).

 

Signed as a Massachusetts agreement under seal as of the Grant Date:

 

	
CRA   INTERNATIONAL, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   Paul Maleh, President and CEO
    	
 
    	
{Insert Holder name}
    

 

 

Appendix A

Vesting Schedule

 

	
Percentage of Units
   Vested
    	
 
    	
Number of Units
   Vesting
    	
 
    	
Vesting Date
    	
 
    
	
25
    	
%
    	
 
    	
 
    	
 
    	
 
    
	
50
    	
%
    	
 
    	
 
    	
 
    	
 
    
	
75
    	
%
    	
 
    	
 
    	
 
    	
 
    
	
100
    	
%
    	
 
    	
 
    	
 
    	
 
    

 

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STATEMENT OF TERMS AND CONDITIONS

 

Restricted Stock Unit Award

 

Each Restricted Stock Unit represents the right to receive one share of common stock of the Company (“Common Stock”) on the vesting date of that unit, as set forth in Appendix A, (each a “Vesting Date”), in accordance with, and subject to, the terms of this Agreement.  Capitalized terms used, but not defined, herein shall have the meanings ascribed to them in the Award.  For purposes of this Agreement, Company shall also mean all of the Company’s subsidiaries.  The Company agrees to grant you the Award, subject to the terms and conditions of the Plan and this Agreement as follows:

 

1.             Acceptance of Award.  The Grantee shall have no rights with respect to this Award unless he/she shall have accepted this Award by signing and delivering to the Company a copy of this Agreement within thirty (30) days of the Grant Date indicated on the first page of this Agreement.

 

2.             Vesting of Restricted Stock Units.

 

The Restricted Stock Units shall vest in accordance with the schedule set forth in Appendix A, conditioned upon the Grantee’s continued employment with or performance of services for the Company as of each Vesting Date.  Notwithstanding the foregoing, the interest of the Grantee in the Award shall vest as to 100% of the then unvested Restricted Stock Units upon the Grantee’s termination of employment with or performance of services for the Company due to death or disability under the then established rules of the Company.  Whether such termination is due to disability shall be determined by the Company in its sole discretion.

 

3.             Forfeiture of Restricted Stock Units.

 

If employment with or service for the Company as an employee or independent contractor is terminated by the Company or by the Grantee for any reason (other than death or disability), the balance of the Restricted Stock Units that have not vested at the time of the Grantee’s termination of employment or service shall be forfeited by the Grantee and shall automatically be returned to the Company.

 

4.             Duties; Disputes.

 

(a)           In performing its duties under this Agreement, the Company shall be entitled to rely upon any statement, notice, or other writing that it shall in good faith believe to be genuine and to be signed or presented by a proper party or parties or on other evidence or information deemed by it to be reliable.  In no event shall the Company be liable for any action taken or omitted in good faith.  The Company may consult with its counsel or counsel of any of the other parties hereto and, without limiting the generality of the preceding sentence, shall not be held liable for any action taken or omitted in good faith on advice of such counsel.

 

(b)           It is further agreed that if any controversy arises, between the parties hereto or with any third person, with respect to the Restricted Stock Units, any RSU Shares (as

 

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defined in Paragraph 6) or any part of the subject matter of this Agreement, its terms or conditions, the Company shall not be required to take any actions in the premises, but may await the settlement of any such controversy by final appropriate legal proceedings or otherwise as it may require, notwithstanding anything in this Agreement to the contrary, and in such event the Company shall not be liable for interest or damages.

 

(c)           In the event that a dispute should arise with respect to the delivery, right to possession, and/or ownership of the certificates held by the Company representing the any RSU Shares, the Company is authorized to retain such certificates and evidences in its possession, or any portion thereof, without liability to anyone, until such dispute shall have been settled either by mutual written agreement of the parties concerned or by final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but the Company shall be under no duty whatsoever hereunder to institute or defend any such proceedings.

 

(d)           The provisions of this Paragraph 4 shall survive the expiration or earlier termination of this Agreement.

 

5.             Restriction on Transfer.

 

(a)           The Grantee shall not sell, assign, transfer, pledge, hypothecate, mortgage, encumber or otherwise dispose of, voluntarily or involuntarily, by operation of law or otherwise (collectively, “transfer”), any of the Restricted Stock Units or any interest therein, except by will or the laws of descent and distribution upon death.

 

(b)           The Grantee shall not have any stockholder rights, including voting or dividend rights, with respect to the Award until the Grantee becomes a record holder of any RSU Shares following their actual issuance pursuant to Paragraph 6 of this Agreement.

 

6.             Receipt of Shares of Common Stock; Escrow; Transferability.

 

(a)           The Restricted Stock Units in which the interest of the Grantee vests in accordance with the vesting schedule set forth in Appendix A (such Restricted Stock Units shall be referred to herein as “Vested”) will be issuable in the form of shares of Common Stock (“RSU Shares”) as soon as practicable after they become Vested, but in no event later than two and one-half months after the end of the year in which they become Vested, subject to the collection of the minimum withholding taxes in accordance with the mandatory share withholding provision of Paragraph 13 of this Agreement.  Notwithstanding the foregoing, subject to Section 409A of the Code, to the extent that the Company reasonably anticipates its deduction with respect to the delivery of RSU Shares would not be permitted due to the application of Section 162(m) of the Code, such delivery may be delayed in accordance with the regulations promulgated under Section 409A of the Code.

 

(b)           Notwithstanding any other provision herein to the contrary, (i) the Company may elect to pay Restricted Stock Units that become Vested in the form of cash, RSU Shares, or any combination thereof in its discretion, and (ii) no fractional shares of Common Stock shall be issued pursuant to this Award.

 

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(c)           The Grantee shall deposit with the Company the certificate or certificates representing all of the RSU Shares and shall promptly upon acquisition of any additional shares of stock, property or securities described in Paragraphs 7 and 9 hereof, deposit with the Company the certificate or certificates for such additional shares.  Any such additional shares shall for all purposes be deemed RSU Shares under this Agreement.  The Company shall hold such certificates for the purposes of this Agreement.  Notwithstanding anything to the contrary herein, the Company may elect to have the RSU Shares, including, without limitation, any additional shares of stock, property or securities described in Paragraphs 7 and 9 hereof, issued in book-entry in the Company’s stock record books.  The Grantee shall continue to be the owner of the RSU Shares, despite such deposit or book-entry issuance, and shall be entitled to exercise all rights of ownership in such RSU Shares, subject, however, to the provisions of this Agreement.

 

(d)           Anything herein to the contrary notwithstanding, the Grantee may not sell or transfer any RSU Shares issued to him or her pursuant to this Agreement unless the Holder will continue to meet, after such sale or transfer, his or her ownership guideline under the Ownership Guidelines, until the Grantee’s employment with the Company ends.  Subject to the foregoing, the Grantee will be free to sell RSU Shares, subject, however, to applicable requirements of federal and state securities laws, the Company’s insider trading policy or other Company policy as may be in effect from time to time restricting the Grantee’s ability to sell shares of Common Stock.

 

7.             Merger; and Change in Control.

 

After a merger of one or more corporations with or into the Company or after a consolidation of the Company and one or more corporations that, in any event, does not constitute a “Change in Control” (as defined below), the Grantee shall be entitled to receive, in lieu of any shares of Common Stock (or consideration based on the fair market value of such shares), upon vesting and at no additional cost, shares of stock or other securities, cash or other property (or consideration based on the fair market value of such shares, securities cash or other property), as the holders of the Common Stock received in connection with such merger or consolidation.

 

If (1) the Company is merged with or into or consolidated with another corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into other voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, (2) any “person” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), other than the Company or one of its subsidiaries, becomes a beneficial owner (within the meaning of Rule 13d-3, as amended, as promulgated under the Exchange Act), directly or indirectly, in a single transaction or a series of transactions, of securities representing more than 50% of the combined voting power of the Company’s then outstanding securities, or (3) the Company is liquidated or sells or otherwise disposes of substantially all of its assets to another corporation or entity, with respect to any of the foregoing, while Awards remain outstanding under the Plan, then in any such event (a “Change in Control”): (i) subject to the provisions of clauses (iii), (iv) and (v) below, upon and

 

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after the effective date of such Change in Control, the Grantee shall be entitled to receive, in lieu of any shares of Common Stock (or consideration based on the fair market value of such shares), upon vesting and at no additional cost, shares of stock, other securities, cash or other property (or consideration based on the fair market value of such shares, securities, cash or other property), as the holders of the Common Stock received in connection with such Change in Control, (ii) subject to the provisions of clauses (iv) and (v) below, the Plan Administrator may accelerate, fully or in part, the time of payment or vesting of this Award, so that this Award shall be payable as of a date prior to or as of the effective date of such Change in Control; (iii) subject to the provisions of clauses (iv) and (v) below, the Plan Administrator may cancel this Award as of the effective date of such Change in Control, provided that notice of such cancellation shall be given to each holder of such an Award that is to be cancelled; (iv) the surviving, continuing, successor, or purchasing corporation or other business entity or parent corporation thereof, as the case may be, with respect to such Change in Control (the “Acquiror”), may, without the consent of the Grantee, assume the Company’s rights and obligations under this Award or substitute for this Award a substantially equivalent award, and if it does so and if Grantee’s employment with the Acquiror or a subsidiary thereof terminates without “cause” (as defined in the Plan) within twelve (12) months following such Change in Control, then the vesting of this Award or such award substituted therefor shall be accelerated so that such award shall be payable in full as of the effective date of such termination of employment; or (v) in the event of a Change in Control in which the Acquiror does not assume or substitute for this Award, any acceleration of this Award in connection with such Change in Control shall be at the discretion of the Plan Administrator as set forth in the foregoing clauses of this paragraph.

 

8.             Dividend Equivalents.

 

(a)           If on any date the Company shall pay any cash dividend on shares of Common Stock of the Company, the number of Restricted Stock Units credited to the Grantee shall, as of such date, be increased by an amount determined by the following formula:

 

W = (X multiplied by Y) divided by Z, where:

 

W = the number of additional Restricted Stock Units to be credited to the Grantee on such dividend payment date;

 

X = the aggregate number of Restricted Stock Units credited to the Grantee as of the record date of the dividend;

 

Y = the cash dividend per share amount; and

 

Z = the Fair Market Value per share of Common Stock (as determined under the Plan) on the dividend payment date.

 

(b)           In the case of a dividend paid on Common Stock in the form of Common Stock, including without limitation a distribution of Common Stock by reason of a stock dividend, stock split or otherwise, the number of Restricted Stock Units credited to the Grantee shall be increased by a number equal to the product of (i) the aggregate number of Restricted Stock Units that have been credited to the Grantee through the related dividend record date, and (ii) the number of shares of Common Stock (including any fraction thereof) payable as dividend

 

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on one share of Common Stock.  Any additional Restricted Stock Units issued pursuant to this Paragraph 8 shall be subject to the vesting and restrictions of this Agreement in the same manner and for so long as the Restricted Stock Units granted pursuant to this Agreement to which they relate remain subject to such vesting and restrictions, and shall be promptly forfeited to the Company if and when such Restricted Stock Units are so forfeited. As used in this Paragraph 8, a Restricted Stock Unit shall be “credited to the Grantee” as of a record date if (i) the Restricted Stock Unit is outstanding and has not yet vested as of such record date in accordance with the terms hereof as of such record date or (ii) the Restricted Stock Unit has vested as of such record date and is to be paid by the Company by issuing shares of Common Stock, but such shares of Common Stock are not yet issued as of such record date.

 

9.             Stock Splits, Recapitalizations and Other Events.  If the outstanding shares of the Common Stock shall be subdivided into a greater number of shares or combined into a smaller number of shares, or in the event of a reclassification of the outstanding shares of Common Stock, or if the Company shall be a party to any merger, consolidation, recapitalization or capital reorganization in which securities are issued in exchange for the RSU Shares, there shall be substituted for the RSU Shares hereunder such amount and kind of securities as are issued in such subdivision, combination, reclassification, merger, consolidation, recapitalization or capital reorganization with respect to the RSU Shares outstanding immediately prior thereto, and thereafter such securities shall for all purposes be deemed the RSU Shares hereunder.  In any such event, the provisions hereof shall be appropriately adjusted by the Company so that they will continue to apply with similar effect to such new RSU Shares.

 

If the Company shall effect a subdivision or consolidation of shares or other capital readjustment (other than a dividend paid on the Common Stock in the form of Common Stock) or other increase or reduction of the number of shares of Common Stock outstanding, in any such case without receiving compensation therefor in money, services or property, then the number and class, of shares of stock subject to any unvested Restricted Stock Units hereunder shall be appropriately adjusted in such a manner as to entitle the Grantee to receive upon vesting, or as otherwise provided under the terms of, this Award, the same total number and class of shares of Common Stock as he would have received as a result of the event requiring the adjustment had the Award vested, or as the Grantee would have received otherwise as determined under the terms of the Award, immediately prior to such event.

 

10.          No Transfer in Violation of Agreement.  The Company shall not be required to transfer any of the Restricted Stock Units or RSU Shares on its books that shall purportedly have been sold, assigned or otherwise transferred in violation of this Agreement, or to treat as owner of such units or shares, or to accord the right to vote as such owner or to pay dividends to, any person or entity to which any such shares shall purportedly have been sold, assigned or otherwise transferred in violation of this Agreement.  It is expressly understood and agreed that the restrictions on transfer imposed by this Agreement shall apply not only to voluntary transfers but also to involuntary transfers, by operation of law or otherwise.  The Grantee shall pay all legal fees and expenses of the Company arising out of or relating to any purported sale, assignment or transfer of any Restricted Stock Units or RSU Shares in violation of this Agreement.

 

11.          Severability.  If any provision of this Agreement shall be determined to be invalid, illegal or otherwise unenforceable by any court of competent jurisdiction, the validity,

 

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legality and enforceability of the other provisions of this Agreement shall not be affected thereby.  Any invalid, illegal or unenforceable provision of this Agreement shall be severable, and after any such severance, all other provisions hereof shall remain in full force and effect.

 

12.          Equitable Relief.  The Grantee acknowledges that money damages alone will not adequately compensate the Company for breach of any of the Grantee’s covenants and agreements herein and, therefore, agrees that in the event of the breach or threatened breach of any such covenant or agreement, in addition to all other remedies available to the Company, at law, in equity or otherwise, the Company shall be entitled to injunctive relief compelling specific performance of, or other compliance with, the terms hereof.

 

13.          Tax Matters.

 

(a)           The Grantee will be liable for any and all taxes, including, without limitation, withholding taxes, arising out of the grant or vesting of the Restricted Stock Units or the issuance of any RSU Shares hereunder.  The Company shall, unless otherwise approved by the Plan Administrator, meet its tax withholding obligations with respect to RSU Shares to be issued to the Grantee hereunder by withholding from such shares a number of shares with an aggregate fair market value (as determined under the Plan) sufficient to satisfy such withholding obligations, and the Grantee acknowledges and agrees that such withholding may occur.

 

(b)           The Grantee will provide the Company with all information that the Company shall request in connection with the Grantee’s receipt of the Restricted Stock Units, and any subsequent disposition(s) thereof in order for the Company to satisfy tax, accounting and securities laws reporting and other regulatory requirements.  Information with respect to disposition(s) of Restricted Stock Units should be delivered to the Company before the end of the month within which they occurred.  Information should be provided to the attention of the Company’s General Counsel or, in his absence, to its Chief Financial Officer.

 

(c)           Any other provision of this Agreement to the contrary notwithstanding, the Grantee shall defend, indemnify and hold harmless the Company from and against any and all damages, costs, expenses, fines, penalties, reasonable attorney’s fees and claims of every kind or nature arising from the Grantee’s failure to provide any information required hereunder or to pay any tax amounts promptly and when due.

 

14.          Clawbacks. This Award and the Grantee (with respect to this Award) shall be subject to any policies applicable to the Company as may be adopted and/or modified from time to time by the Company and/or applicable law or the rules of any stock exchange on which the Common Stock is listed that provide for (i) the cancellation of this Award, (ii) reimbursement of this Award by the Grantee, and (iii) effecting any other right of recoupment of equity or other compensation provided with respect to this Award under the Plan.

 

15.          No Obligation to Continue Employment.  The Company is not obligated by or as a result of the Plan or this Award to continue the Grantee in employment or in any other consulting arrangement with the Company and neither the Plan nor this Award shall interfere in any way with the right of the Company to terminate the employment or consulting relationship of the Grantee at any time.

 

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16.          Notices.  Any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given (a) upon personal delivery, (b) on the first business day after being sent by express mail or a nationally recognized overnight courier service, (c) upon transmission by facsimile with receipt confirmed, or (d) on the third business day after being sent by registered or certified mail, return receipt requested, postage prepaid.  To be effective, any such notice shall be addressed, if to the Company, at its principal office, and if to the Grantee at the last address of record on the books of the Company or at such other address as such party may designate by ten (10) days prior written notice to the other party hereto.

 

17.          Benefit of the Agreement.  The rights and obligations of the Grantee hereunder are personal to the Grantee, and except as otherwise expressly provided herein, such rights and obligations may not be assigned or delegated by the Grantee without the prior written consent of the Company.  Any assignment or delegation of such rights and obligations of the Grantee absent such consent shall be void and of no force or effect.  This Agreement shall inure to the benefit of, and be binding upon, the legal representatives, successors and assigns of the Company and the heirs, legal representatives, successors and permitted assigns of the Grantee.  The rights and remedies of the Company hereunder shall be cumulative and in addition to all other rights and remedies the Company may have, at law, in equity, by contract or otherwise.  No modification, renewal, extension, waiver or termination of this Agreement or any of the provisions herein contained shall be binding upon the Company unless made in writing and signed by a duly authorized officer of the Company.

 

18.          Choice of Law and Forum.  This Agreement shall be governed by, and construed and enforced in accordance with, the substantive laws of The Commonwealth of Massachusetts without regard to its principles of conflicts of laws.  All litigation arising from or relating to this Agreement shall be filed and prosecuted before any court of competent subject matter jurisdiction located in Boston, Massachusetts.  The Grantee consents to the jurisdiction of such courts over him or her, stipulates to the convenience, efficiency and fairness of proceeding in such courts, and covenants not to allege or assert the inconvenience, inefficiency or unfairness of proceeding in such courts.

 

19.          Construction.  The genders and numbers used in this Agreement are used as reference terms only and shall apply with the same effect whether the parties are of the masculine, neuter or feminine gender, corporate or other form, and the singular shall likewise include the plural.

 

*              *              *

 

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