Document:

exv10w9

 

Exhibit 10.9

	 	 	 
	 

	 	INCENTIVE
	 

	 	STOCK OPTION AGREEMENT

September 23, 2002

	 	 	 	 	 
	Company: [

	 	]
	 	Date(s) First Exercisable:
	Date of Grant: [

	 	]
	 	  [     ] — September 23, 2003
	No. of Shares: [

	 	]
	 	  [     ] — September 23, 2004
	Option Price per Share[

	 	]
	 	  [     ] — September 23, 2005

PERSONAL AND CONFIDENTIAL

[Name]

[Address]

Dear [       ]:

We are pleased to inform you that as a key employee of the company referred to above you have been
granted an Incentive Stock Option by the Compensation and Stock Option Committee of the Board of
Directors under the Fortune Brands, Inc. 1999 Long-Term Incentive Plan, as amended (the “Plan”).

By your signature, you agree that these options are granted under and governed by the Plan and the
September 2002 Incentive Stock Option Terms and Conditions (the “Terms”), and acknowledge receipt
of: (1) the Terms, (2) the Plan, (3) the Plan Prospectus, (4) the 2002 Supplement to the Plan
Prospectus and (5) Notice of Exercise of Stock Option and Notice of Exercise of Limited Right
forms.

As set forth in paragraph 1 of the Terms, a signed copy of this agreement must be received by the
Stock Plans Administrator at Fortune Brands, Inc., 300 Tower Parkway, Lincolnshire, IL 60069 before
5:00 p.m. on the 60th day after the grant date. Failure to do so will terminate this
option.

Sincerely yours,

FORTUNE BRANDS, INC.

	 	 	 
	 

	 	 
	Senior Vice President — Strategy

	 	Signature of Employee
	and Corporate Development
	 	 
	 
	 	 
	 

	 	 
	 

	 	Date

 

 

SEPTEMBER 2002

INCENTIVE STOCK OPTION

TERMS AND CONDITIONS

As a participant in the 1999 Long-Term Incentive Plan (the Plan), you will be able to purchase
shares of Common Stock of Fortune Brands, Inc. (Fortune) provided that you accept your award as set
forth in paragraph 1 below. Subject to the terms and conditions below, the minimum amount, which
may be purchased at any one time, is 50 shares unless you have fewer remaining shares covered by
your option.

The date of the grant, the maximum number of shares the option entitles you to purchase, the option
price per share and the date or dates on which the option will ordinarily be first exercisable are
listed at the top of the agreement. The option is intended (but not guaranteed) to be an incentive
stock option within the meaning of Section 422 of the Internal Revenue Code.

          1. Acceptance of Option. The option cannot be exercised unless you sign the agreement
and return it so that it is received by the Stock Plans Administrator of Fortune, 300 Tower
Parkway, Lincolnshire, Illinois (or to such other person and place as Fortune may specify in
writing), before 5:00 p.m. Illinois time on the 60th day after the date of grant. If the Stock
Plans Administrator does not receive the signed agreement by this time, then the option will
terminate immediately. Your signing and delivering a copy of the agreement to which these Terms
and Conditions are attached will not commit you to purchase any of the shares under the option but
will indicate your acceptance of the option upon these terms and conditions.

          2. Exercise.

          (a) Except as provided in this paragraph 2 and paragraphs 4, 5, 6 and 10, the option shall be
exercisable during the period beginning on the date or dates set forth under the heading “Date(s)
First Exercisable” in the agreement and ending ten years from the date of grant (its expiration
date). During this period, the option is exercisable in whole or in part from time to time in
amounts of not less than 50 shares (except that if you have fewer than 50 shares remaining covered
by the option, the option may be exercised for the full number of remaining shares).

          (b) The option shall not become exercisable unless you remain employed by Fortune or one of
its subsidiaries for one year from the date of grant, except in the event of your death and except
as provided in paragraph 10.

 

 

          3. Transferability of Option. The option shall not be transferable by you except in
the event of your death. During your lifetime the option shall be exercisable only by you.

          4. Death. If your employment by Fortune or a subsidiary terminates by reason of your
death, the option may immediately be exercised in full and shall continue to be exercisable in full
until its expiration date.

          5. Retirement. If your employment by Fortune or a subsidiary terminates by reason of
disability or retirement under a retirement plan of Fortune or a subsidiary (provided that you have
remained in the employ of Fortune or of one its subsidiaries for one year from the date of grant),
the option shall become immediately exercisable in full and shall continue to be exercisable in
full until its expiration date.

          6. Termination of Employment. If your employment by Fortune or a subsidiary
terminates other than in the circumstances referred to in paragraphs 4 and 5, any portion of the
option that is not yet exercisable shall not thereafter become exercisable and any portion of the
option that is exercisable shall terminate and cease to be exercisable three months from the date
of your termination from employment, except as otherwise provided in paragraph 10; provided that in
no event shall the option be exercisable after the expiration of ten years from the date of grant.
For the purpose of the Agreement, your employment by a subsidiary of Fortune shall be considered
terminated on the date that your employer is no longer a subsidiary (as defined in the Plan) of
Fortune.

          7. Stock Exchange Listing. Fortune is not obligated to deliver any shares until they
have been listed on each stock exchange on which Fortune’s common stock is listed and until Fortune
is satisfied that all applicable laws and regulations have been met. Fortune agrees to use its
best efforts to list the shares and meet all legal requirements so that the shares can be
delivered. No fractional shares will be delivered.

          8. Transfer of Employment; Leave of Absence. For the purposes of your option, (a) if
you transfer between Fortune and a subsidiary or from one subsidiary to another subsidiary, without
an intervening period, it will not be considered a termination of employment and (b) any leave of
absence granted in writing will not constitute an interruption in your employment.

          9. Adjustments.

          (a) In the event of any merger, consolidation, stock or other non-cash dividend, extraordinary
cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or
recapitalization or change in capitalization, or any other similar

2

 

corporate event, the number and kind of shares that are subject to the option and the option
price per share immediately prior to such event may be proportionately and appropriately adjusted,
without increase or decrease in the aggregate option price.

          (b) The determination of the committee of the Board of Directors of Fortune administering the
Plan (the Committee) as to the terms of any adjustment is binding and conclusive upon you and any
other person who is entitled to exercise the option.

          10. Change in Control of Fortune.

          (a) In the event of a Change in Control (as defined in the attached Plan), your option, if it
is not then immediately exercisable in full and provided that it has not expired, shall become
immediately exercisable in full and shall remain exercisable in full. In addition, under certain
circumstances as described in Section 12(b) of the attached Plan, you may have the right to receive
cash instead of exercising your option. This right, called a Limited Right, may be automatically
exercised under certain circumstances described in the attached Plan. You will be informed of any
Change in Control.

          (b) Notwithstanding paragraphs 2(b), 4, 5 and 6, the provisions of this paragraph 10(b) will
be applicable in the event of a termination of your employment during the 60-day period following a
Change in Control. Your option shall not terminate or cease to be exercisable as a result of the
termination of your employment during this period, but shall be exercisable in full throughout it;
provided, however, that in no event shall your option be exercisable after ten years from its date
of grant. However, in the event that on the date of termination you have not held your option for
more than six (6) months, the preceding sentence shall apply only if your employment has been
terminated other than for just cause (as defined below) or you have voluntarily terminated your
employment for certain reasons: (i) because you in good faith believe that as a result of the
Change in Control you are unable effectively to discharge your duties or the duties of the position
you occupied immediately prior to the Change in Control, or (ii) because of a reduction in your
aggregate compensation or in your aggregate benefits below that in effect immediately prior to the
Change in Control. For purposes of this paragraph, termination shall be for “just cause” only if
it is based on fraud, misappropriation or embezzlement on your part which results in a final
conviction of a felony. Nothing in this paragraph 10(b) limits any rights otherwise provided in
the event of your death, disability or retirement under a retirement plan of Fortune or its
subsidiary, or your right to exercise your option following a termination of employment as provided
in paragraph 6.

3

 

          11. Stockholder Rights. Neither you nor any other person shall have any rights of a
stockholder as to shares under the option until, after proper exercise of the option, such shares
shall have been recorded on Fortune’s official stockholder records as having been issued or
transferred.

          12. Notice of Exercise. Subject to these terms and conditions, the option may be
exercised, by a written notice of exercise on a form approved by the Committee that (i) is signed
by the person or persons exercising the option, (ii) is delivered to the Stock Plans Administrator
of Fortune, 300 Tower Parkway, Lincolnshire, Illinois (or to such other person and place as Fortune
may specify in writing), (iii) signifies election to exercise the option as indicated in the notice
of exercise, (iv) states the number of shares as to which the option is being exercised, and (v)
unless otherwise provided in the notice of exercise, is accompanied by payment in full of the
option price of such shares. The notice of exercise may be delivered by facsimile transmission.
Any notice of exercise delivered as required by this paragraph will be effective only in accordance
with the provisions of and to the extent set forth in the notice of exercise. If a properly
executed notice of exercise is not delivered to the Stock Plans Administrator (or other person
designated by Fortune), by the applicable expiration date specified in paragraphs 4, 5, 6 and 10,
the notice will be deemed null and void and of no effect. If notice of exercise of the option is
given by a person other than you, Fortune may require as a condition to exercising the option that
appropriate proof of the right of such person to exercise the option be submitted to Fortune.
Certificates for any shares purchased upon exercise will be issued and delivered as soon as
practicable.

          13. Exercise of Limited Right. In the event a Limited Right referred to in paragraph
10 becomes exercisable, it shall be exercised in whole or in part by giving written notice of such
exercise, on a form approved by the Committee, to the Stock Plans Administrator (or other person
designated by Fortune). No written notice is required if the Limited Right is automatically
exercised as provided in Section 12(b) of the attached Plan. The exercise will be effective as of
the date specified in the notice of exercise, but not earlier than the date the notice is actually
received by the Stock Plans Administrator. The notice must be actually received by the Stock Plans
Administrator by no later than the close of business on the last day of the applicable Limited
Right Exercise Period, as defined in the attached Plan (or the date the related option expires,
whichever is earlier).

          14. Payment of Option Price. You may pay the option price for shares (i) in cash,
(ii) by the delivery of shares of Fortune Common Stock that have been held by you for at least one
year and that have a total market value equal to the option price, or (iii) by a combination of
cash and such shares that have been held by you for a period of at least one year and that have a
total market value which, together with such cash, equals the option price. The “market value” of
shares or per share of Fortune Common Stock as of any date means the value determined by reference
to the closing price of a share of

4

 

Fortune Common Stock as finally reported on the New York Stock Exchange for the trading day
next preceding such date. You may also pay the option price from the proceeds of the sale of
shares covered by the option, called a cashless exercise, to the extent provided in the notice of
exercise referred to in paragraph 12.

          15. Tax Withholding. You agree to notify the Stock Plans Administrator in the event
the shares acquired by you upon exercise of any portion of your option are sold or otherwise
disposed of within one year from the date of exercise. If and to the extent Federal income tax
withholding (and state and local income tax withholding, if applicable) may be required by the
Company in respect of taxes on income realized by you upon or after exercise of any portion of the
option, or upon disposition of the shares acquired thereby, the Company may withhold such required
amounts from your future paychecks or may require that you deliver to the Company the amounts to be
withheld. In addition, you may pay the minimum required Federal income tax withholding (and state
and local income tax withholding, if applicable) by electing either to have the Company withhold a
portion of the shares of Common Stock otherwise issuable upon exercise of the option, or to deliver
other shares of Common Stock owned by you, in either case having a fair market value (on the date
that the withholding amount is to be determined) of the minimum amount required to be withheld,
provided that the election shall be irrevocable and shall be subject to such rules as the Committee
may adopt. You may also arrange to have any tax (or taxes) paid directly to the Company on your
behalf from the proceeds of the sale of Common Stock to the extent provided in the notice of
exercise referred to in paragraph 12.

5

 

	 	 	 
	 

	 	INCENTIVE
	 

	 	STOCK OPTION AGREEMENT

September 29, 2003

	 	 	 	 	 
	Company: [

	 	]
	 	Date(s) First Exercisable:
	Date of Grant: [

	 	]
	 	  [     ] — September 29, 2004
	No. of Shares: [

	 	]
	 	  [     ] — September 29, 2005
	Option Price per Share: [

	 	]
	 	  [     ] — September 29, 2006

PERSONAL AND CONFIDENTIAL

[Name]

[Address]

Dear [      ]:

We are pleased to inform you that as a key employee of the company referred to above you have been
granted an Incentive Stock Option by the Compensation and Stock Option Committee of the Board of
Directors under the Fortune Brands, Inc. 1999 Long-Term Incentive Plan, as amended (the “Plan”).

By your signature, you agree that these options are granted under and governed by the Plan and the
September 2003 Incentive Stock Option Terms and Conditions (the “Terms”), and acknowledge receipt
of: (1) the Terms, (2) the Plan, (3) the Plan Prospectus, (4) the April 29, 2003 Supplement to the
Plan Prospectus and (5) Notice of Exercise of Stock Option and Notice of Exercise of Limited Right
forms.

As set forth in paragraph 1 of the Terms, a signed copy of this agreement must be received by the
Stock Plans Administrator at Fortune Brands, Inc., 300 Tower Parkway, Lincolnshire, IL 60069 before
5:00 p.m. on the 60th day after the grant date. Failure to do so will terminate this
option.

Sincerely yours,

FORTUNE BRANDS, INC.

	 	 	 
	 

	 	 
	Senior Vice President — Strategy

	 	Signature of Employee
	and Corporate Development
	 	 
	 
	 	 
	 

	 	 
	 

	 	Date

 

 

SEPTEMBER 2003

INCENTIVE STOCK OPTION

TERMS AND CONDITIONS

As a participant in the 1999 Long-Term Incentive Plan (the Plan), you will be able to purchase
shares of Common Stock of Fortune Brands, Inc. (Fortune) provided that you accept your award as set
forth in paragraph 1 below. Subject to the terms and conditions below, the minimum amount, which
may be purchased at any one time, is 50 shares unless you have fewer remaining shares covered by
your option.

The date of the grant, the maximum number of shares the option entitles you to purchase, the option
price per share and the date or dates on which the option will ordinarily be first exercisable are
listed at the top of the agreement. The option is intended (but not guaranteed) to be an incentive
stock option within the meaning of Section 422 of the Internal Revenue Code.

          1. Acceptance of Option. The option cannot be exercised unless you sign the agreement
and return it so that it is received by the Stock Plans Administrator of Fortune, 300 Tower
Parkway, Lincolnshire, Illinois (or to such other person and place as Fortune may specify in
writing), before 5:00 p.m. Illinois time on the 60th day after the date of grant. If the Stock
Plans Administrator does not receive the signed agreement by this time, then the option will
terminate immediately. Your signing and delivering a copy of the agreement to which these Terms
and Conditions are attached will not commit you to purchase any of the shares under the option but
will indicate your acceptance of the option upon these terms and conditions.

          2. Exercise.

          (a) Except as provided in this paragraph 2 and paragraphs 4, 5, 6 and 10, the option shall be
exercisable during the period beginning on the date or dates set forth under the heading “Date(s)
First Exercisable” in the agreement and ending ten years from the date of grant (its expiration
date). During this period, the option is exercisable in whole or in part from time to time in
amounts of not less than 50 shares (except that if you have fewer than 50 shares remaining covered
by the option, the option may be exercised for the full number of remaining shares).

          (b) The option shall not become exercisable unless you remain employed by Fortune or one of
its subsidiaries for one year from the date of grant, except in the event of your death and except
as provided in paragraph 10.

 

 

          3.
Transferability of Option. The option shall not be transferable by you except in
the event of your death. During your lifetime the option shall be exercisable only by you.

          4. Death. If your employment by Fortune or an entity in which Fortune has an equity
interest terminates by reason of your death, the option may immediately be exercised in full and
shall continue to be exercisable in full until its expiration date.

          5. Retirement. If your employment by Fortune or an entity in which Fortune has an
equity interest terminates by reason of disability or retirement under a retirement plan of Fortune
or an entity in which it has an equity interest (provided that you have remained in the employ of
Fortune or of an entity in which Fortune has an equity interest for one year from the date of
grant), the option shall become immediately exercisable in full and shall continue to be
exercisable in full until its expiration date.

          6. Termination of Employment. If your employment by Fortune or a entity in which
Fortune has an equity interest terminates other than in the circumstances referred to in paragraphs
4 and 5, any portion of the option that is not yet exercisable shall not thereafter become
exercisable and any portion of the option that is exercisable shall terminate and cease to be
exercisable three months from the date of your termination from employment, except as otherwise
provided in paragraph 10; provided that in no event shall the option be exercisable after the
expiration of ten years from the date of grant. For the purpose of the Agreement, your employment
by an entity in which Fortune has an equity interest shall be considered terminated on the date on
Fortune sells or otherwise divests its equity interest in your employer.

          7. Stock Exchange Listing. Fortune is not obligated to deliver any shares until they
have been listed on each stock exchange on which Fortune’s common stock is listed and until Fortune
is satisfied that all applicable laws and regulations have been met. Fortune agrees to use its
best efforts to list the shares and meet all legal requirements so that the shares can be
delivered. No fractional shares will be delivered.

          8. Transfer of Employment; Leave of Absence. For the purposes of your option, (a) if
you transfer between Fortune and an entity in which Fortune has an equity interest or from one
entity in which Fortune has an equity interest to another entity in which Fortune has an equity
interest, without an intervening period, it will not be considered a termination of employment, and
(b) any leave of absence granted in writing will not constitute an interruption in your employment.

2

 

          9. Adjustments.

          (a) In the event of any merger, consolidation, stock or other non-cash dividend, extraordinary
cash dividend, split-up, spin-off, combination or exchange of shares, reorganization or
recapitalization or change in capitalization, or any other similar corporate event, the number and
kind of shares that are subject to the option and the option price per share immediately prior to
such event may be proportionately and appropriately adjusted, without increase or decrease in the
aggregate option price.

          (b) The determination of the committee of the Board of Directors of Fortune administering the
Plan (the Committee) as to the terms of any adjustment is binding and conclusive upon you and any
other person who is entitled to exercise the option.

          10. Change in Control of Fortune.

          (a) In the event of a Change in Control (as defined in the attached Plan), your option, if it
is not then immediately exercisable in full and provided that it has not expired, shall become
immediately exercisable in full and shall remain exercisable in full. In addition, under certain
circumstances as described in Section 12(b) of the attached Plan, you may have the right to receive
cash instead of exercising your option. This right, called a Limited Right, may be automatically
exercised under certain circumstances described in the attached Plan. You will be informed of any
Change in Control.

          (b) Notwithstanding paragraphs 2(b), 4, 5 and 6, the provisions of this paragraph 10(b) will
be applicable in the event of a termination of your employment during the 60-day period following a
Change in Control. Your option shall not terminate or cease to be exercisable as a result of the
termination of your employment during this period, but shall be exercisable in full throughout it;
provided, however, that in no event shall your option be exercisable after ten years from its date
of grant. However, in the event that on the date of termination you have not held your option for
more than six (6) months, the preceding sentence shall apply only if your employment has been
terminated other than for just cause (as defined below) or you have voluntarily terminated your
employment for certain reasons: (i) because you in good faith believe that as a result of the
Change in Control you are unable effectively to discharge your duties or the duties of the position
you occupied immediately prior to the Change in Control, or (ii) because of a reduction in your
aggregate compensation or in your aggregate benefits below that in effect immediately prior to the
Change in Control. For purposes of this paragraph, termination shall be for “just cause” only if
it is based on fraud, misappropriation or embezzlement on your part which results in a final
conviction of a felony. Nothing in this paragraph 10(b) limits any rights otherwise provided in
the event of your death, disability or retirement under a retirement plan of Fortune or an entity
in

3

 

which Fortune has an equity interest, or your right to exercise your option following a
termination of employment as provided in paragraph 6.

          11. Stockholder Rights. Neither you nor any other person shall have any rights of a
stockholder as to shares under the option until, after proper exercise of the option, such shares
shall have been recorded on Fortune’s official stockholder records as having been issued or
transferred.

          12. Notice of Exercise. Subject to these terms and conditions, the option may be
exercised, by a written notice of exercise on a form approved by the Committee that (i) is signed
by the person or persons exercising the option, (ii) is delivered to the Stock Plans Administrator
of Fortune, 300 Tower Parkway, Lincolnshire, Illinois (or to such other person and place as Fortune
may specify in writing), (iii) signifies election to exercise the option as indicated in the notice
of exercise, (iv) states the number of shares as to which the option is being exercised, and (v)
unless otherwise provided in the notice of exercise, is accompanied by payment in full of the
option price of such shares. The notice of exercise may be delivered by facsimile transmission.
Any notice of exercise delivered as required by this paragraph will be effective only in accordance
with the provisions of and to the extent set forth in the notice of exercise. If a properly
executed notice of exercise is not delivered to the Stock Plans Administrator (or other person
designated by Fortune), by the applicable expiration date specified in paragraphs 4, 5, 6 and 10,
the notice will be deemed null and void and of no effect. If notice of exercise of the option is
given by a person other than you, Fortune may require as a condition to exercising the option that
appropriate proof of the right of such person to exercise the option be submitted to Fortune.
Certificates for any shares purchased upon exercise will be issued and delivered as soon as
practicable.

          13. Exercise of Limited Right. In the event a Limited Right referred to in paragraph
10 becomes exercisable, it shall be exercised in whole or in part by giving written notice of such
exercise, on a form approved by the Committee, to the Stock Plans Administrator (or other person
designated by Fortune). No written notice is required if the Limited Right is automatically
exercised as provided in Section 12(b) of the attached Plan. The exercise will be effective as of
the date specified in the notice of exercise, but not earlier than the date the notice is actually
received by the Stock Plans Administrator. The notice must be actually received by the Stock Plans
Administrator by no later than the close of business on the last day of the applicable Limited
Right Exercise Period, as defined in the attached Plan (or the date the related option expires,
whichever is earlier).

          14. Payment of Option Price. You may pay the option price for shares (i) in cash,
(ii) by the delivery of shares of Fortune Common Stock that have been held by you for at least one
year and that have a total market value equal to the option price, or (iii) by a combination of
cash and such shares that have been held by you for a period of

4

 

at least one year and that have a total market value which, together with such cash, equals
the option price. The “market value” of shares or per share of Fortune Common Stock as of any date
means the value determined by reference to the closing price of a share of Fortune Common Stock as
finally reported on the New York Stock Exchange for the trading day next preceding such date. You
may also pay the option price from the proceeds of the sale of shares covered by the option, called
a cashless exercise, to the extent provided in the notice of exercise referred to in paragraph 12.

          15. Tax Withholding. You agree to notify the Stock Plans Administrator in the event
the shares acquired by you upon exercise of any portion of your option are sold or otherwise
disposed of within one year from the date of exercise. If and to the extent Federal income tax
withholding (and state and local income tax withholding, if applicable) may be required by the
Company in respect of taxes on income realized by you upon or after exercise of any portion of the
option, or upon disposition of the shares acquired thereby, the Company may withhold such required
amounts from your future paychecks or may require that you deliver to the Company the amounts to be
withheld. In addition, you may pay the minimum required Federal income tax withholding (and state
and local income tax withholding, if applicable) by electing either to have the Company withhold a
portion of the shares of Common Stock otherwise issuable upon exercise of the option, or to deliver
other shares of Common Stock owned by you, in either case having a fair market value (on the date
that the withholding amount is to be determined) of the minimum amount required to be withheld,
provided that the election shall be irrevocable and shall be subject to such rules as the Committee
may adopt. You may also arrange to have any tax (or taxes) paid directly to the Company on your
behalf from the proceeds of the sale of Common Stock to the extent provided in the notice of
exercise referred to in paragraph 12.

5exv10w11

 

Exhibit 10.11

STOCK OPTION AGREEMENT

TO:

	 	 	 	 	 
	OPTION DATE:
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	EXPIRATION DATE:

	 	 	 	 
	 	 	 	 	 

     In order to provide additional incentive through stock ownership for key employees of General
Binding Corporation and Subsidiaries (“GBC” or the “Company”) you are hereby granted an Option by
GBC, effective as of the Option Date, to purchase ___shares of GBC Common Stock at a price
per share of $ ___which is one hundred percent (100%) of the Fair Market Value of GBC
Common Stock on the Option Date, subject to the terms and conditions set forth in the “General
Binding Corporation 2001 Stock Option Plan for Employees” (“Plan”).

     Except as hereinafter provided, with respect to the Option granted hereunder, vesting shall
occur at a rate of twenty-five percent (25%) per year beginning on the first anniversary of the
Option Date described above and each subsequent anniversary of the Option Date, provided you remain
an employee of GBC.

     The Option is exercisable at any time after one (1) year following the Option Date, in whole
or in part, but only if all of the following conditions are met at the time of exercise:

	 	(i)	 	the Option, or part thereof, is vested as described above;
	 
	 	(ii)	 	the date of exercise is on or before the Expiration Date set forth above; and
	 
	 	(iii)	 	you are an employee of GBC, or if you are no longer an employee, the date of
exercise is in accordance with the Plan.

     In the event of a Change in Control of GBC as defined in the Plan, all Options subject to this
Agreement shall vest 100%, whereupon all Options shall become exercisable in full from the
effective date of the Change in Control.

 

 

     The manner in which you may exercise this Option is by giving written notice to the Vice
President, Secretary and General Counsel of GBC accompanied by either 1.) a check in payment of the
option price
($          per share) for the number of shares of the Option being exercised as
provided in the Plan, or 2.) tendering a sufficient number of previously-acquired shares of GBC
Common Stock with a fair market value equal (subject to adjustment for fractional shares) to the
cost of the Option being exercised, or any combination of the foregoing. In addition to the Option
price, you must also pay or provide for required withholding taxes. For purposes of this
Agreement, “previously-acquired shares” means shares purchased on the open market, or shares
purchased from the Company (including by exercise of this or any other option) which have been held
for at least six (6) months.

     The Plan provides that no Option may be exercised unless the Plan is in full compliance with
all laws and regulations applicable thereto. At the present time this condition is met and GBC
will endeavor to keep the Plan in compliance.

     No amendment, modification, or waiver of this Option in whole or in part shall be binding
unless consented to in writing by either the Chairman or the President of GBC, and no amendment may
cause any participant to be unfavorably affected with respect to any Option already granted
hereunder.

     In order to exercise this Option you must be employed by GBC or its subsidiaries at the time
of exercise. If you cease to be so employed your Option will terminate on the date of termination
of employment, except as provided in the Plan.

     Under current provisions of the Internal Revenue Code, when an Option is exercised by you, you
will receive ordinary taxable income equal to the amount, if any, by which the fair market value on
the date of exercise exceeds the Option price. In the event federal, state, or local taxes are
required by law to be withheld with respect to any exercise of an Option under this Agreement, GBC
shall have the authority, without your consent, to deduct or withhold, or require you to remit to
GBC, an amount sufficient to satisfy such taxes, which amount may, if you elect, include
previously-acquired shares or shares otherwise issuable upon exercise of this Option, which, in
either case, have a fair market value equal to not more than the minimum required withholding
taxes. Any gain or loss upon a sale of the shares issued to you upon exercise of the Option will
be treated as long-term or short-term capital gain or loss depending upon then existing tax laws.
The basis of the shares for determining gain or loss at the time of sale will be their fair market
value on the date of exercise. Tax laws may change and tax treatment must be determined in
accordance with current tax laws. Company counsel should be consulted on your ability to sell your
shares.

     This Agreement and the Plan are not intended to qualify for treatment under the provisions of
the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”). This Agreement shall
be subject to all applicable laws, rules and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. To the extent not preempted by
federal law, this Agreement shall be governed by, and construed in accordance with the laws of the
State of Illinois.

2

 

     Please sign the copy of this Option agreement and return it to the Vice President, Human
Resources, thereby indicating your understanding of and agreement with its terms and conditions.
Unless signed and returned by mail or otherwise within thirty (30) days from date of mailing or
delivery to you of this agreement, this Option may be deemed withdrawn at the option of GBC. By
signing this Agreement you acknowledge receipt of a copy of the Plan. The terms of the Plan shall
have precedence over any terms in this Agreement that are inconsistent therewith.

	 	 	 	 	 
	 	GENERAL BINDING CORPORATION

 	 
	 	By:  	 	 
	 	 	President & 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 
	TO:

	 	Vice President, Human Resources
	 

	 	General Binding Corporation

I hereby agree to the terms and conditions of this Stock Option Agreement. I also hereby
acknowledge receipt of a copy of the General Binding Corporation 2001 Stock Option Plan for
Employees, and, having read it, I hereby signify my understanding or, and my agreement with its
terms and conditions.

	 	 	 	 	 
	 	 	 	 	 
	 

	 	Employee
	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 

	 	Date	 	 

3

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