Document:

EX-10.26

 

 EXHIBIT 10.26

BOWNE & CO., INC.

STOCK OPTION AGREEMENT

     
This Stock Option Agreement (this
“Agreement”) is made as
of                     by
Bowne & Co., Inc., a Delaware corporation (the
“Company”),
and                     (the
“Optionee”), whose address is in care of Bowne &
Co., Inc., pursuant to the 1999 Stock Incentive Plan of the
Company (the “Plan”). The terms of the Plan are
incorporated herein by reference, and terms defined in the Plan
have the same meanings in this Agreement unless the context
otherwise requires.

     
Option Grant, Number of Underlying Shares and
Exercise Price. The Company hereby
awards to Optionee an option (the “Option”) to
acquire                     shares
of the Company’s common stock (the “Stock”), at
an exercise price of
$           per
share (the “Exercise Price”), subject to the terms and
conditions set forth in this Agreement and the Plan. The number
of shares subject to the Option, the exercise price, and other
Option terms are subject to adjustment in accordance with the
Plan. The Option is [an incentive stock option under
Section 422 of the Internal Revenue Code to the maximum
extent possible, and any portion that does not so qualify is a
non-qualified stock option] [a non-qualified stock option and
not an incentive stock option under Section 422 of the
Internal Revenue Code].

     
Dates Exercisable and Termination Date.
Optionee may
purchase           %
of the aforesaid shares only on or after
the                     anniversary
of the date hereof, and the
remaining           %
of the aforesaid shares only on or after
the                     anniversary
of the date hereof (except as provided below under the caption
“Optionee’s Agreement to SERP
Modifications”); provided, however, that the Option
will be exercisable immediately upon a Change in Control. In no
event may this Option be exercised
after                     (the
“Termination Date”).

     
Non-Transferability.
The Option shall, during
Optionee’s lifetime, be exercisable only by him or her, and
neither it nor any right hereunder shall be transferable
otherwise than by will or the laws of descent and distribution
or be subject to attachment, execution or other similar process.
In the event of any attempt by Optionee to alienate, assign,
pledge, hypothecate or otherwise dispose of this Option or of
any other right hereunder, except as provided for in the Plan,
or in the event of any levy or any attachment, execution or
similar process upon the rights or interest hereby conferred,
the Committee may terminate this Option by notice to Optionee
and it shall thereupon become null and void.

     
Termination of
Employment. If, prior to the
Termination Date, Optionee shall cease to be employed by the
Company or a subsidiary thereof, otherwise than by reason of
Retirement (as defined herein), disability or death, the Option
shall remain exercisable until the Termination Date or until the
date three months after the date of cessation of employment,
whichever occurs first, to the extent it was exercisable at the
time of cessation of employment, whereupon the Option shall
terminate together with all of Optionee’s rights hereunder.

     
If, prior to the Termination Date, Optionee shall
cease to be employed by the Company or a subsidiary thereof by
reason of a Retirement, the Option shall not be forfeited, but
shall remain outstanding until the Termination Date (except as
otherwise limited under the Plan or this Agreement); provided,
however, that any portion of the Option that had not vested and
become exercisable prior to the date of Retirement shall
thereafter become exercisable only at the time as such portion
of the Option would have become both vested and exercisable had
the Optionee’s employment not terminated. For purposes of
this Agreement, “Retirement” or “Retired”
shall mean a termination of Optionee’s employment with the
Company or a subsidiary after Optionee has attained age 65 or
has attained age [55 and five years of service] with the Company
and its subsidiaries, excluding a termination by the Company or
a subsidiary for cause (as determined by the Committee).

     
If, prior to the Termination Date, Optionee shall
cease to be employed by the Company or a subsidiary thereof by
reason of a disability, the Option shall remain exercisable
until the Termination Date or until the date one year after the
date of cessation of employment, whichever occurs first, to the
extent it was exercisable at the time of cessation of
employment, whereupon the Option shall terminate together with
all of Optionee’s rights hereunder. In the event of the
death of Optionee prior to the Termination Date while employed
by the

 

Company or any subsidiary thereof, or thereafter
in the case of an Option exercisable after his cessation of
employment, each Option held by Optionee may be exercised at any
time or from time to time until the earliest of (i) the
Termination Date, (ii), if Optionee had previously Retired or
could have Retired at the time he died while still employed,
until the date three years after the date of his death, or
(iii), if Optionee had not previously Retired and could not have
Retired at the time of his death while still employed, one year
after the date of his death (the effect of this provision is to
extend some Options which otherwise would have terminated three
months after Optionee’s date of cessation of employment).
Such option shall be exercisable during the applicable periods,
by the person or persons to whom Optionee’s rights under
each Option shall pass by will or by the applicable laws of
descent and distribution or pursuant to a valid designation of
beneficiary filed by Optionee with the Committee, but such
Option shall be exercisable only to the extent, if any, that
Optionee was entitled to exercise it on the date of his death.
At the end of such exercisability period, such Option shall
terminate together with all of the rights of the person entitled
to exercise it hereunder.

     
Note: Although the Option terms permit it to
be exercised more than three months after death or Retirement
and more than one year after termination due to disability (in
case of death following such disability), exercise of the Option
in those circumstances will disqualify it as an incentive stock
option. In such case, the Option will constitute a non-qualified
stock option for federal income tax purposes.

     
How to Exercise
Option. Subject to the provisions of
the Plan, this Option may be exercised by written notice to the
Company stating the number of shares with respect to which it is
being exercised and (i) accompanied by payment of the
Option Price by certified or bank cashier’s check payable
to the order of the Company in New York Clearing House funds, or
(ii) if acceptable to the Committee, by surrender or
delivery to the Company of shares of its Stock with a fair
market value (as defined in the Plan) equal to or less than the
Option Price or through a written election of Optionee to have
shares of Stock with fair market value (as defined in the Plan)
equal to or less than the Option Price withheld from the shares
Optionee would otherwise receive, plus delivery of a certified
or bank cashier’s check for any difference. As soon as
practicable after receipt of such notice and payment, the
Company shall, without transfer or issue tax or other incidental
expense to Optionee, deliver to Optionee at the offices of the
Company or such other place as may be mutually acceptable or, at
the election of the Company, by first-class insured mail
addressed to Optionee at his or her address shown in the
employment records of the Company or at the location at which
Optionee is employed by the Company or a subsidiary, a
certificate or certificates for previously unissued shares or
reacquired shares of its Stock, as the Company may elect.

     
Legal Compliance.
The Company may postpone the time of
delivery of certificates of its Stock for such additional time
as the Company shall deem necessary or desirable to enable it to
comply with the registration requirements of the Securities Act
of 1933 or the Securities Exchange Act of 1934 or any Rules or
Regulations of the Securities and Exchange Commission
promulgated thereunder or the requirements of other applicable
laws, including state laws relating to authorization, issuance
or sale of securities.

     
If Optionee fails to accept delivery of the
shares of Stock of the Company upon tender of delivery thereof,
his or her right to exercise this Option with respect to such
undelivered shares may be terminated.

     
[If an Incentive StockOption: Optionee to
Notify Company of Disposition of Shares.
Optionee agrees to notify the Company
in writing, within 30 days, of any disposition (whether by
sale, exchange, gift or otherwise) of shares of Stock acquired
by Optionee pursuant to the exercise of this Option, which
occurs within two years from the date of the granting of this
Option or within one year of the transfer of such shares to
Optionee; provided, however, that this notice obligation will
not apply to any portion of the Option that, at the time of
exercise, is a non-qualified stock option and not an incentive
stock option.]

2

 

     
IN WITNESS WHEREOF, BOWNE & CO., INC.
has caused this Agreement to be executed by an officer of the
Company thereunto duly authorized and Optionee has executed this
Agreement, as of
the                     .

		
	 	
    BOWNE & CO., INC.
    

			
	 	By: 	

		
	 	
    

	 	
    Officer of the Company
    
	 
	 	
    Optionee:
    

		
	 	
    

	 	
    Optionee Name

3EX-10.27

 

EXHIBIT 10.27

BOWNE & CO., INC.

1999 INCENTIVE COMPENSATION PLAN

RESTRICTED STOCK AGREEMENT

     
This Restricted Stock Agreement (the
“Agreement”) sets forth the terms of the grant
on                     (the
“Grant Date”) by BOWNE & CO., INC., a
Delaware corporation (the “Company”),
to  (“Employee”) of Restricted Stock under the
Company’s 1999 Incentive Compensation Plan (the
“Plan”), as follows:

		
	 	     
    Number
    granted:                ______________
    Shares of Restricted Stock
    
	 
	 	     
    How Restricted Stock
    Vests:          The
    Restricted Stock, if not previously forfeited, will vest on the
    dates and as to the number of shares in the following table:
    

	 	 	 	 	 
			Number of Shares
	Stated Vesting Date		That Vest at that Date
	
		

		
	 	
    In addition, if not previously forfeited, the
    Restricted Stock will become immediately vested in full upon a
    Change in Control, and will become vested upon the occurrence of
    certain events relating to Termination of Employment to the
    extent provided in Section 3 hereof. The terms
    “vest” and “vesting” mean that the
    Restricted Stock has become non-forfeitable and transferable. If
    Employee has a Termination of Employment prior to a Stated
    Vesting Date and Shares of Restricted Stock are not otherwise
    deemed vested by that date, such Restricted Stock will be
    immediately forfeited. Forfeited Restricted Stock ceases to be
    outstanding and in no event will thereafter result in delivery
    of Shares to Employee.
    

The Restricted Stock is an award of shares of the
Company’s Common Stock (the “Common Stock”)
granted under Section 6(d) of the Plan, and is subject to
the risk of forfeiture and other restrictions specified in the
Plan and this Agreement, including the Terms and Conditions of
Restricted Stock attached hereto. The number and kind of shares
of Restricted Stock and other terms of the Restricted Stock are
subject to adjustment in accordance with Section 4(b)
hereof and Section 11(c) of the Plan.

     
Employee acknowledges and agrees that
(i) Restricted Stock is nontransferable, except as provided
in Section 2 hereof and Section 11(b) of the Plan,
(ii) the Restricted Stock is subject to forfeiture in the
event of Employee’s termination of employment in certain
circumstances prior to vesting, as specified in Section 3
hereof, (iii) the Restricted Stock is subject to forfeiture
in the event Employee fails to meet applicable requirements
relating to non-competition, confidentiality, non-solicitation
of customers, suppliers, business associates, employees, and
service providers, non-disparagement and cooperation in
litigation with respect to the Company and its subsidiaries and
affiliates, as set forth in Section 6 hereof and
Section 10 of the Plan, and (iv) sales of the Shares
following vesting of the Restricted Stock will be subject to the
Company’s policies regulating trading by employees,
including any applicable “blackout” or other
designated periods in which sales of Shares is not permitted.

     
IN WITNESS WHEREOF, BOWNE & CO., INC.
has caused this Agreement to be executed by its officer
thereunto duly authorized, and Employee has duly executed this
Agreement, by which each has agreed to the terms of this
Agreement.

	 	 	 
	 
	
    EMPLOYEE

    

    

    
[Employee Name]
    	 	
    BOWNE & CO., INC.

    

    By: 

    
Officer of the Company
    

 

TERMS AND CONDITIONS OF RESTRICTED
STOCK

     
The following Terms and Conditions apply to the
Restricted Stock granted to Employee by BOWNE & CO.,
INC. (the “Company”), and Restricted Stock resulting
from Dividend Equivalents (if any), as specified in the
Restricted Stock Agreement (of which these Terms and Conditions
form a part). Certain terms of the Restricted Stock, including
the number of shares granted and vesting date(s), are set forth
on the preceding pages.

     
1.     General.
The Restricted Stock is granted to Employee under the
Company’s 1999 Incentive Compensation Plan (the
“Plan”), a copy of which is being delivered to
Employee with this Agreement. All of the applicable terms,
conditions and other provisions of the Plan are incorporated by
reference herein. Capitalized terms used in this Agreement but
not defined herein shall have the same meanings as in the Plan.
If there is any conflict between the provisions of this document
and mandatory provisions of the Plan, the provisions of the Plan
govern. By accepting the grant of the Restricted Stock, Employee
agrees to be bound by all of the terms and provisions of the
Plan (as presently in effect or later amended), the rules and
regulations under the Plan adopted from time to time, and the
decisions and determinations of the Compensation and Management
Development Committee of the Company’s Board of Directors
(the “Committee”) made from time to time.

     
2.     Nontransferability.
Until such time as the Restricted Stock has become vested in
accordance with the terms of this Agreement, Employee may not
transfer Restricted Stock or any rights hereunder to any third
party other than by will or the laws of descent and
distribution. This restriction on transfer precludes any sale,
assignment, pledge, or other encumbrance or disposition of the
shares of Restricted Stock (except for forfeitures to the
Company).

     
3.     Termination
Provisions. The following provisions will govern the vesting
and forfeiture of the Restricted Stock that is outstanding at
the time of Employee’s Termination of Employment, unless
otherwise determined by the Committee (subject to
Section 9(a) hereof):

		
	 	     
    (a) Death or Disability. In the event
    of Employee’s Termination of Employment due to death or
    Disability (as defined below), all of the outstanding Restricted
    Stock will vest immediately, provided that, in the case of
    Disability, Employee signs a release in such form as may be
    approved by the Committee.
    
	 
	 	     
    (b) Termination by the Company Without
    Cause. In the event of Employee’s Termination of
    Employment involuntarily by the Company without Cause, a
    Pro-Rata Portion of the outstanding Restricted Stock will vest
    immediately. Any portion of the outstanding Restricted Stock not
    vested at the date of Termination will be forfeited.
    
	 
	 	     
    (c) Termination by the Company for Cause
    or Voluntarily by Employee. In the event of Employee’s
    Termination of Employment by the Company for Cause or by
    Employee voluntarily, the outstanding Restricted Stock will be
    forfeited.
    
	 
	 	     
    (d) Certain Definitions. The
    following definitions apply for purposes of this Agreement:
    

		
	 	     
    (i) “Cause” has the meaning
    defined in any employment agreement between Employee and the
    Company or a subsidiary as in effect at the date of this
    Agreement or, if there is no such employment agreement defining
    Cause, “Cause” means either (A) Employee’s
    willful malfeasance or nonfeasance having a significant adverse
    effect on the Company; provided that any action or refusal by
    Employee shall not “Cause” if, in good faith, Employee
    believed such action or refusal to be in, or not opposed to, the
    best interests of the Company or if Employee shall be entitled,
    under applicable law or under an Company’s Certificate of
    Incorporation or By-Laws, as they may be amended or restated
    from time to time, to be indemnified with respect to such action
    or refusal; (B) Employee’s conviction of a felony;
    (C) Employee commits any material breach of the
    Company’s Code of Ethics, which breach, if curable, has not
    been cured by Employee within 30 days following written
    notice delivered by the Company; (D) Employee engages in
    “misconduct” within the meaning of Section 304 of
    the Sarbanes-Oxley Act of 2002; or (E) Employee’s
    willful failure to
    

2

 

		
	 	
    substantially carry out the duties of his
    position (except where such failure is a result of
    Employee’s death or Disability) after a written demand for
    substantial performance is delivered to Employee, which
    specifically identifies the manner in which the Company believes
    that Employee has not substantially performed Employee’s
    duties; provided, that for purposes of the definition of
    “Cause”, no act, or failure to act, on the part of
    Employee shall be considered “willful” to the extent
    such act, or failure to act, is specifically authorized or
    contemplated by a directive set forth in a resolution duly
    adopted by the Board.
    
	 
	 	     
    (ii) “Disability” means
    Employee’s physical or mental disability, bodily injury or
    disease (including a disability resulting from an occupational
    disease) which, in the opinion of a licensed physician
    designated by the mutual consent of the Company and Employee,
    would prevent Employee from performing regular duties for the
    Company from the date of occurrence of such disability for a
    period of more than one year.
    
	 
	 	     
    (iii) “Pro Rata Portion” means,
    for each tranche of Restricted Stock, a fraction the numerator
    of which is the number of days that have elapsed from the Grant
    Date to the date of Employee’s Termination of Employment
    and the denominator of which is the number of days from the
    Grant Date to the Stated Vesting Date for that tranche. A
    “tranche” is that portion of the Restricted Stock that
    has a unique Stated Vesting Date.
    
	 
	 	     
    (iv) “Termination of Employment”
    means the event by which Employee ceases to be employed by the
    Company or any subsidiary of the Company and, immediately
    thereafter, is not employed by or providing substantial services
    to any of the Company or a subsidiary of the Company.
    

     
4.     Dividends and
Adjustments.

     
(a) Dividends. In the event of
dividends or distributions on Common Stock, the following terms
and conditions shall apply except as provided in
Section 4(b) below:

		
	 	     
    (i) In the event of a cash dividend or
    distribution on Common Stock, such dividend or distribution
    shall be automatically reinvested in additional shares of
    Restricted Stock in accordance with the Bowne Direct Stock
    Purchase and Dividend Reinvestment Plan (or any successor, or if
    participation therein is not administratively feasible, on terms
    substantially the same as under such plan). Employee agrees to
    sign the new account application and related forms under the
    Company’s Direct Stock Purchase and Dividend Reinvestment
    Plan. Share acquired under this Section 4(a)(i) will become
    vested if and to the same extent as the original Restricted
    Stock with respect to which the cash dividend or distribution
    was made becomes vested and, to the greatest extent practicable,
    shall be subject to all other terms and conditions as applied to
    the original Restricted Stock;
    
	 
	 	     
    (ii) In the event of any non-cash dividend
    or distribution in the form of property other than Common Stock
    payable on Common Stock (including shares of a subsidiary of the
    Company distributed in a spin-off), the Company shall retain in
    its custody the property so distributed in respect of
    Employee’s Restricted Stock, which property thereafter will
    become vested if and to the same extent as the original
    Restricted Stock with respect to which the property was
    distributed becomes vested and, to the greatest extent
    practicable, shall be subject to all other terms and conditions
    as applied to the original Restricted Stock, including in the
    event of any dividends or distributions paid in respect of such
    property or with respect to the placement of any legend on
    certificate(s) or documents representing such property;
    provided, however, that any dividend or distribution of rights
    that expire before the applicable Stated Vesting Date will be
    unrestricted and exercisable by Employee in accordance with
    their terms;
    
	 
	 	     
    (iii) In the event of a dividend or
    distribution in the form of Common Stock or split-up of shares,
    the Common Stock issued or delivered as such dividend or
    distribution or resulting from such split-up will be deemed to
    be additional Restricted Stock and will become vested if and to
    the same extent as the original Restricted Stock with respect to
    which the dividend or distribution was payable becomes vested,
    and shall be subject to all other terms and conditions as
    applied to the original Restricted Stock.
    

3

 

     
(b) Adjustments. The number and kind
of shares of Restricted Stock, the number of such shares to be
vested and other terms and conditions of Restricted Stock or
otherwise contained in this Agreement shall be appropriately
adjusted, in order to prevent dilution or enlargement of
Employee’s rights hereunder, to reflect any changes in the
number of outstanding shares of Common Stock resulting from any
event referred to in Section 11(c) of the Plan, taking into
account any Restricted Stock or other amounts paid or credited
to Employee in connection with such event under
Section 4(a) hereof, in the sole discretion of the
Committee. In addition, the Committee may vary the treatment of
any dividend or distribution as specified under
Section 4(a), in its discretion, for administrative
convenience or any other reason. The Committee may determine how
to treat or settle any fractional share resulting under this
Agreement.

     
5.     Other Terms of
Restricted Stock.

     
(a) Voting and Other Shareholder
Rights. Employee shall be entitled to vote Restricted Stock
on any matter submitted to a vote of holders of Common Stock,
and shall have all other rights of a shareholder of the Company
except as expressly limited by this Agreement and the Plan.

     
(b) Consideration for Grant of Restricted
Stock. Employee shall be required to pay no cash
consideration for the grant of the Restricted Stock, but
Employee’s performance of services to the Company prior to
the vesting of the Restricted Stock shall be deemed to be
consideration for this grant of Restricted Stock.
Employee’s services performed from the Grant Date to the
date of issuance of the shares of Restricted Stock is hereby
determined to have a value at least equal to the aggregate par
value of the shares being newly issued in connection with the
grant of Restricted Stock.

     
(c) Insider Trading Policy
Applicable. Employee acknowledges that sales of shares
resulting from Restricted Stock that has become vested will be
subject to the Company’s policies regulating trading by
executive officers and employees.

     
(d) Certificates Evidencing Restricted
Stock. Restricted Stock shall be evidenced by issuance of
one or more certificates in the name of Employee, bearing an
appropriate legend referring to the terms, conditions, and
restrictions applicable hereunder, and shall remain in the
physical custody of the General Counsel of the Company or his
designee until such time as such shares of Restricted Stock have
become vested and the restrictions hereunder have therefore
lapsed. In addition, Restricted Stock shall be subject to such
stop-transfer orders and other restrictive measures as the
General Counsel of the Company shall deem advisable under
federal or state securities laws, rules and regulations
thereunder, and New York Stock Exchange rules, or to implement
the terms, conditions and restrictions hereunder, and the
General Counsel may cause a legend or legends to be placed on
any such certificates to make appropriate reference to the
terms, conditions and restrictions hereunder.

     
6.     Additional
Forfeiture Provisions. The Restricted Stock is subject to
the additional forfeiture conditions imposed under
Section 10 of the Plan, provided that any forfeiture as a
result of the occurrence of a Forfeiture Event will occur at the
later of the occurrence of the Forfeiture Event or the
Employee’s Termination of Employment at any time that the
Company is accounting for awards under Accounting Principles
Board Opinion 25.

     
7.     Employee
Representations and Warranties and Release. As a condition
to any non-forfeiture of the Restricted Stock that vests upon
Termination of Employment, the Company may require Employee
(i) to make any representation or warranty to the Company
as may be required under any applicable law or regulation, to
make a representation and warranty that the requirements of
Section 10 of the Plan and Section 6 above have been
met, and (ii) to execute a release from claims against the
Company arising at or before the date of such release, in such
form as may be specified by the Company.

     
8.     Tax
Withholding. Unless otherwise determined by the Committee,
at the time of vesting the Company will withhold from any shares
deliverable upon vesting of the Restricted Stock, in accordance
with Section 11(d) of the Plan, the number of shares having
a value nearest to, but not exceeding, the amount of income and
employment taxes required to be withheld under applicable local
laws and regulations, and pay the amount of such withholding
taxes in cash to the appropriate taxing authorities; provided,
however, that the Company will not require such share
withholding if and to the extent that Employee has made
arrangements,

4

 

at least 90 days before the date any such
withholding would apply, to provide for payment of such taxes
and such arrangements are satisfactory to the Company. Employee
will be responsible for any withholding taxes not satisfied by
means of such mandatory withholding and for all taxes in excess
of such withholding taxes that may be due upon vesting of
Restricted Stock.

     
9.     Miscellaneous.

     
(a) Binding Agreement; Written
Amendments. This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties. This
Agreement constitutes the entire agreement between the parties
with respect to the Restricted Stock, and supersedes any prior
agreements or documents with respect thereto. No amendment or
alteration of this Agreement which may impose any additional
obligation upon the Company shall be valid unless expressed in a
written instrument duly executed in the name of the Company, and
no amendment, alteration, suspension or termination of this
Agreement which may materially impair the rights of Employee
with respect to the Restricted Stock shall be valid unless
expressed in a written instrument executed by Employee.

     
(b) No Promise of Employment. The
Restricted Stock and the granting thereof shall not constitute
or be evidence of any agreement or understanding, express or
implied, that Employee has a right to continue as an officer or
employee of the Company for any period of time, or at any
particular rate of compensation.

     
(c) Governing Law. The governing law
provision of Section 11(k) of the Plan applies to this
Agreement.

     
(d) Notices. Any notice to be given
the Company under this Agreement shall be addressed to the
Company at its principal executive offices, in care of the
General Counsel or any other officer or agent (including any
third-party administrator) as the Company may designate, and any
notice to the Employee shall be addressed to the Employee at
Employee’s address as then appearing in the records of the
Company.

5

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