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EXHIBIT 10.1

IMATION CORP.

2005 STOCK INCENTIVE PLAN

Section 1. Purpose.

     The purpose of the Plan is to promote the interests of the Company and its stockholders by
aiding the Company in attracting and retaining employees, officers, consultants, independent
contractors, advisors and non-employee Directors capable of assuring the future success of the
Company, to offer such persons incentives to put forth maximum efforts for the success of the
Company’s business and to compensate such persons through various stock-based arrangements and
provide them with opportunities for stock ownership in the Company, thereby aligning the interests
of such persons with the Company’s stockholders.

Section 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Affiliate” shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which the Company has a
significant equity interest, in each case as determined by the Committee.

     (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Dividend Equivalent, Performance Award, Stock Award or Other Stock-Based Award granted
under the Plan.

     (c) “Award Agreement” shall mean any written agreement, contract or other instrument or
document evidencing an Award granted under the Plan. Each Award Agreement shall be subject to the
applicable terms and conditions of the Plan and any other terms and conditions (not inconsistent
with the Plan) determined by the Committee.

     (d) “Board” shall mean the Board of Directors of the Company.

     (e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

     (f) “Committee” shall mean the Compensation Committee of the Board or any successor committee
of the Board designated by the Board to administer the Plan. The Committee shall be comprised of
not less than such number of Directors as shall be required to permit Awards granted under the Plan
to qualify under Rule 16b-3, and each member of the Committee shall be a “Non-Employee Director”
within the meaning of Rule 16b-3 and an “outside director” within the meaning of Section 162(m) of
the Code. The Company expects to have the Plan administered in accordance with the requirements
for the award of “qualified performance-based compensation” within the meaning of Section 162(m) of
the Code.

 

 

     (g) “Company” shall mean Imation Corp., a Delaware corporation, or any successor corporation.

     (h) “Director” shall mean a member of the Board.

     (i) “Dividend Equivalent” shall mean any right granted under Section 6(d) of the Plan.

     (j) “Eligible Person” shall mean any employee, officer, consultant, independent contractor,
advisor or non-employee Director providing services to the Company or any Affiliate whom the
Committee determines to be an Eligible Person. An Eligible Person must be a natural person.

     (k) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (l) “Fair Market Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such property determined by
such methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, unless otherwise determined by the Committee, the Fair Market Value
of Shares on a given date for purposes of the Plan shall be the closing sale price of the Shares on
the New York Stock Exchange as reported in the consolidated transaction reporting system on such
date or, if such Exchange is not open for trading on such date, on the most recent preceding date
when such Exchange is open for trading.

     (m) “Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that
is intended to meet the requirements of Section 422 of the Code or any successor provision.

     (n) “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

     (o) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     (p) “Other Stock-Based Award” shall mean any right granted under Section 6(g) of the Plan.

     (q) “Participant” shall mean an Eligible Person designated to be granted an Award under the
Plan.

     (r) “Performance Award” shall mean any right granted under Section 6(e) of the Plan.

     (s) “Performance Goal” shall mean one or more of the following performance goals, either
individually, alternatively or in any combination, applied on a corporate, subsidiary, division,
business unit or line of business basis: sales, revenue, costs, expenses, earnings (including one
or more of net profit after tax, gross profit, operating profit, earnings before

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interest and taxes, earnings before interest, taxes, depreciation and amortization and net
earnings), earnings per share, earnings per share from continuing operations, operating income,
pre-tax income, operating income margin, net income, margins (including one or more of gross,
operating and net income margins), returns (including one or more of return on actual or proforma
assets, net assets, equity, investment, capital and net capital employed), stockholder return
(including total stockholder return relative to an index or peer group), stock price, economic
value added, cash generation, cash flow, unit volume, working capital, market share, cost
reductions and strategic plan development and implementation. Such goals may reflect absolute
entity or business unit performance or a relative comparison to the performance of a peer group of
entities or other external measure of the selected performance criteria. Pursuant to rules and
conditions adopted by the Committee on or before the 90th day of the applicable
performance period for which Performance Goals are established, the Committee may appropriately
adjust any evaluation of performance under such goals to exclude the effect of certain events,
including any of the following events: asset write-downs; litigation or claim judgments or
settlements; changes in tax law, accounting principles or other such laws or provisions affecting
reported results; severance, contract termination and other costs related to exiting certain
business activities; and gains or losses from the disposition of businesses or assets or from the
early extinguishment of debt.

     (t) “Person” shall mean any individual or entity, including a corporation, partnership,
limited liability company, association, joint venture or trust.

     (u) “Plan” shall mean this Imation Corp. 2005 Stock Incentive Plan, as amended from time to
time.

     (v) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

     (w) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair Market Value of a
Share) at some future date.

     (x) “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act or any successor rule or regulation.

     (y) “Section 162(m)” shall mean Section 162(m) of the Code and the applicable Treasury
Regulations promulgated thereunder.

     (z) “Shares” shall mean shares of Common Stock, par value of $0.01 per share, of the Company
or such other securities or property as may become subject to Awards pursuant to an adjustment made
under Section 4(c) of the Plan.

     (aa) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

     (bb) “Stock Award” shall mean any Share granted under Section 6(f) of the Plan.

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Section 3. Administration.

     (a) Power and Authority of the Committee. The Plan shall be administered by the
Committee. Subject to the express provisions of the Plan and to applicable law, the Committee
shall have full power and authority to: (i) designate Participants; (ii) determine the type or
types of Awards to be granted to each Participant under the Plan; (iii) determine the number of
Shares to be covered by (or the method by which payments or other rights are to be calculated in
connection with) each Award; (iv) determine the terms and conditions of any Award or Award
Agreement; (v) amend the terms and conditions of any Award or Award Agreement, provided, however,
that, except as otherwise provided in Section 4(c) hereof, the Committee shall not reprice, adjust
or amend the exercise price of Options or the grant price of Stock Appreciation Rights previously
awarded to any Participant, whether through amendment, cancellation and replacement grant, or any
other means; (vi) accelerate the exercisability of any Award or the lapse of restrictions relating
to any Award; (vii) determine whether, to what extent and under what circumstances Awards may be
exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited
or suspended; (viii) determine whether, to what extent and under what circumstances cash, Shares,
other securities, other Awards, other property and other amounts payable with respect to an Award
under the Plan shall be deferred either automatically or at the election of the holder of the Award
or the Committee; (ix) interpret and administer the Plan and any instrument or agreement, including
any Award Agreement, relating to the Plan; (x) establish, amend, suspend or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the proper administration of
the Plan; and (xi) make any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in
the Plan, all designations, determinations, interpretations and other decisions under or with
respect to the Plan or any Award or Award Agreement shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive and binding upon any Participant,
any holder or beneficiary of any Award or Award Agreement, and any employee of the Company or any
Affiliate.

     (b) Delegation. The Committee may delegate its powers and duties under the Plan to
one or more Directors (including a Director who is also an officer of the Company) or a committee
of Directors, subject to such terms, conditions and limitations as the Committee may establish in
its sole discretion; provided, however, that the Committee shall not delegate its powers and duties
under the Plan (i) with regard to officers or directors of the Company or any Affiliate who are
subject to Section 16 of the Exchange Act or (ii) in such a manner as would cause the Plan not to
comply with the requirements of Section 162(m) of the Code. In addition, the Committee may
authorize one or more officers of the Company to grant Options under the Plan, subject to the
limitations of Section 157 of the Delaware General Corporation Law; provided, however, that such
officers shall not be authorized to grant Options to officers or directors of the Company or any
Affiliate who are subject to Section 16 of the Exchange Act.

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     (c) Power and Authority of the Board of Directors. Notwithstanding anything to the
contrary contained herein, the Board may, at any time and from time to time, without any
further action of the Committee, exercise the powers and duties of the Committee under the
Plan, unless the exercise of such powers and duties by the Board would cause the Plan not to comply
with the requirements of Section 162(m) of the Code.

Section 4. Shares Available for Awards.

     (a) Shares Available. Subject to adjustment as provided in Section 4(c) of the Plan,
the aggregate number of Shares that may be issued under all Awards under the Plan shall be
2,500,000. Shares to be issued under the Plan may be authorized but unissued Shares, treasury
shares or Shares acquired in the open market or otherwise. If an Award terminates or is forfeited
or cancelled without the issuance of any Shares, or if any Shares covered by an Award or to which
an Award relates are not issued for any other reason, then the number of Shares counted against the
aggregate number of Shares available under the Plan with respect to such Award, to the extent of
any such termination, forfeiture, cancellation or other event, shall again be available for
granting Awards under the Plan. If Shares of Restricted Stock are forfeited or otherwise
reacquired by the Company prior to vesting, whether or not dividends have been paid on such Shares,
then the number of Shares counted against the aggregate number of Shares available under the Plan
with respect to such Award of Restricted Stock, to the extent of any such forfeiture or
reacquisition by the Company, shall again be available for granting Awards under the Plan. Shares
that are withheld in full or partial payment to the Company of the purchase or exercise price
relating to an Award or in connection with the satisfaction of tax obligations relating to an Award
shall again be available for granting Awards under the Plan, except that, after May 4, 2015, any
Shares withheld in connection with the satisfaction of tax obligations relating to Restricted Stock
shall not be available for granting Awards. Prior to May 4, 2015, any previously issued Shares
that are used by a Participant as full or partial payment to the Company of the purchase or
exercise price relating to an Award or in connection with the satisfaction of tax obligations
relating to an Award shall again be available for granting Awards under the Plan.

     (b) Accounting for Awards. For purposes of this Section 4, if an Award entitles the
holder thereof to receive or purchase Shares, the number of Shares covered by such Award or to
which such Award relates shall be counted on the date of grant of such Award against the aggregate
number of Shares available for granting Awards under the Plan.

     (c) Adjustments. In the event that the Committee shall determine that any dividend or
other distribution (whether in the form of cash, Shares, other securities or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other securities of the Company
or other similar corporate transaction or event affects the Shares such that an adjustment is
determined by the Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Committee
shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of
Shares (or other securities or other property) that thereafter may be made the subject of Awards,
(ii) the number and type of Shares (or other securities or other property) subject to outstanding
Awards, (iii) the purchase or exercise price with respect to any Award and (iv) the limitations
contained in Section 4(d) of the Plan.

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     (d) Award Limitations Under the Plan.

          (i) Section 162(m) Limitation for Certain Types of Awards. No Eligible Person may be
granted Options, Stock Appreciation Rights or any other Award or Awards under the Plan, the value
of which Award or Awards is based solely on an increase in the value of the Shares after the date
of grant of such Award or Awards, for more than 500,000 Shares (subject to adjustment as provided
in Section 4(c) of the Plan) in the aggregate in any calendar year.

          (ii) Section 162(m) Limitation for Performance Awards. The maximum amount payable
pursuant to all Performance Awards to any Participant in the aggregate in any calendar year shall
be $2,000,000 in value, whether payable in cash, Shares or other property. This limitation does
not apply to any Award subject to the limitation contained in Section 4(d)(i) of the Plan.

          (iii) Plan Limitation on Restricted Stock, Restricted Stock Units and Stock Awards.
No more than 1,500,000 Shares, subject to adjustment as provided in Section 4(c) of the Plan, shall
be available under the Plan for issuance pursuant to grants of Restricted Stock, Restricted Stock
Units and Stock Awards; provided, however, that if any Awards of Restricted Stock Units terminate
or are forfeited or cancelled without the issuance of any Shares or if Shares of Restricted Stock
are forfeited or otherwise reacquired by the Company prior to vesting, whether or not dividends
have been paid on such Shares, then the Shares subject to such termination, forfeiture,
cancellation or reacquisition by the Company shall again be available for grants of Restricted
Stock, Restricted Stock Units and Stock Awards for purposes of this limitation on grants of such
Awards.

          (iv) Limitation on Awards Granted to Non-Employee Directors. Directors who are not
also employees of the Company or an Affiliate may not be granted Awards in the aggregate for more
than 500,000 Shares available for Awards under the Plan, subject to adjustment as provided in
Section 4(c) of the Plan.

          (v) Limitation on Incentive Stock Options. The number of Shares available for
granting Incentive Stock Options under the Plan shall not exceed 2,500,000, subject to adjustment
as provided in Section 4(c) of the Plan and subject to the provisions of Section 422 or 424 of the
Code or any successor provision.

Section 5. Eligibility.

     Any Eligible Person shall be eligible to be designated a Participant. In determining which
Eligible Persons shall receive an Award and the terms of any Award, the Committee may take into
account the nature of the services rendered by the respective Eligible Persons, their present and
potential contributions to the success of the Company or such other factors as the Committee, in
its discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive Stock Option may
only be granted to full-time or part-time employees (which term as used herein includes, without
limitation, officers and Directors who are also employees), and an Incentive Stock Option shall not
be granted to an employee of an Affiliate unless such
Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section
424(f) of the Code or any successor provision.

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Section 6. Awards.

     (a) Options. The Committee is hereby authorized to grant Options to Eligible Persons
with the following terms and conditions and with such additional terms and conditions not
inconsistent with the provisions of the Plan as the Committee shall determine:

          (i) Exercise Price. The purchase price per Share purchasable under an Option shall be
determined by the Committee and shall not be less than 100% of the Fair Market Value of a Share on
the date of grant of such Option; provided, however, that the Committee may designate a per share
exercise price below Fair Market Value on the date of grant (A) to the extent necessary or
appropriate, as determined by the Committee, to satisfy applicable legal or regulatory requirements
of a foreign jurisdiction or (B) if the Option is granted in substitution for a stock option
previously granted by an entity that is acquired by or merged with the Company or an Affiliate.

          (ii) Option Term. The term of each Option shall be fixed by the Committee but shall
not be longer than 10 years from the date of grant.

          (iii) Time and Method of Exercise. The Committee shall determine the time or times at
which an Option may be exercised in whole or in part and the method or methods by which, and the
form or forms (including, without limitation, cash, Shares, other securities, other Awards or other
property, or any combination thereof, having a Fair Market Value on the exercise date equal to the
applicable exercise price) in which, payment of the exercise price with respect thereto may be made
or deemed to have been made.

     (b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock
Appreciation Rights to Eligible Persons subject to the terms of the Plan and any applicable Award
Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a

right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the
date of exercise (or, if the Committee shall so determine, at any time during a specified period
before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as
specified by the Committee, which price shall not be less than 100% of the Fair Market Value of one
Share on the date of grant of the Stock Appreciation Right; provided, however, that the Committee
may designate a per share grant price below Fair Market Value on the date of grant (A) to the
extent necessary or appropriate, as determined by the Committee, to satisfy applicable legal or
regulatory requirements of a foreign jurisdiction or (B) if the Stock Appreciation Right is granted
in substitution for a stock appreciation right previously granted by an entity that is acquired by
or merged with the Company or an Affiliate. Subject to the terms of the Plan and any applicable
Award Agreement, the grant price, term, methods of exercise, dates of exercise, methods of
settlement and any other terms and conditions of any Stock Appreciation Right shall be as
determined by the Committee. The Committee may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

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     (c) Restricted Stock and Restricted Stock Units. The Committee is hereby authorized
to grant Awards of Restricted Stock and Restricted Stock Units to Eligible Persons with the
following terms and conditions and with such additional terms and conditions not inconsistent with
the provisions of the Plan as the Committee shall determine:

          (i) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be
subject to such restrictions as the Committee may impose (including, without limitation, any
limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or
other right or property with respect thereto), which restrictions may lapse separately or in
combination at such time or times, in such installments or otherwise, as the Committee may deem
appropriate. The minimum vesting period of such Awards shall be three years from the date of
grant, unless the Award is conditioned on performance of the Company or an Affiliate or on personal
performance (other than continued service with the Company or an Affiliate), in which case the
Award may vest over a period of at least one year from the date of grant. Notwithstanding the
foregoing, the Committee may permit acceleration of vesting of such Awards in the event of the
Participant’s death, disability or retirement or a change in control of the Company.

          (ii) Issuance and Delivery of Shares. Any Restricted Stock granted under the Plan
shall be issued at the time such Awards are granted and may be evidenced in such manner as the
Committee may deem appropriate, including book-entry registration or issuance of a stock
certificate or certificates, which certificate or certificates shall be held by the Company. Such
certificate or certificates shall be registered in the name of the Participant and shall bear an
appropriate legend referring to the restrictions applicable to such Restricted Stock. Shares
representing Restricted Stock that is no longer subject to restrictions shall be delivered to the
Participant promptly after the applicable restrictions lapse or are waived. In the case of
Restricted Stock Units, no Shares shall be issued at the time such Awards are granted. Upon the
lapse or waiver of restrictions and the restricted period relating to Restricted Stock Units
evidencing the right to receive Shares, such Shares shall be issued and delivered to the holder of
the Restricted Stock Units.

          (iii) Forfeiture. Except as otherwise determined by the Committee, upon a
Participant’s termination of employment (as determined under criteria established by the Committee)
during the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock
Units held by the Participant at such time shall be forfeited and reacquired by the Company;
provided, however, that the Committee may, when it finds that a waiver would be in the best
interest of the Company, waive in whole or in part any or all remaining restrictions with respect
to Shares of Restricted Stock or Restricted Stock Units.

     (d) Dividend Equivalents. The Committee is hereby authorized to grant Dividend
Equivalents to Eligible Persons under which the Participant shall be entitled to receive payments
(in cash, Shares, other securities, other Awards or other property as determined in the discretion
of the Committee) equivalent to the amount of cash dividends paid by the Company to holders of
Shares with respect to a number of Shares determined by the Committee. Subject to the terms of the
Plan and any applicable Award Agreement, such Dividend Equivalents may have such terms and
conditions as the Committee shall determine.

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     (e) Performance Awards. The Committee is hereby authorized to grant to Eligible
Persons Performance Awards which are intended to be “qualified performance-based compensation”
within the meaning of Section 162(m). A Performance Award granted under the Plan may be payable in
cash or in Shares (including, without limitation, Restricted Stock). Performance Awards shall, to
the extent required by Section 162(m), be conditioned solely on the achievement of one or more
objective Performance Goals, and such Performance Goals shall be established by the Committee
within the time period prescribed by, and shall otherwise comply with the requirements of, Section
162(m). Subject to the terms of the Plan and any applicable Award Agreement, the Performance Goals
to be achieved during any performance period, the length of any performance period, the amount of
any Performance Award granted, the amount of any payment or transfer to be made pursuant to any
Performance Award and any other terms and conditions of any Performance Award shall be determined
by the Committee. The Committee shall also certify in writing that such Performance Goals have
been met prior to payment of the Performance Awards to the extent required by Section 162(m).

     (f) Stock Awards. The Committee is hereby authorized to grant to Eligible Persons
Shares without restrictions thereon, as deemed by the Committee to be consistent with the purpose
of the Plan. Subject to the terms of the Plan and any applicable Award Agreement, such Stock
Awards may have such terms and conditions as the Committee shall determine.

     (g) Other Stock-Based Awards. The Committee is hereby authorized to grant to Eligible
Persons such other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares (including, without limitation,
securities convertible into Shares), as are deemed by the Committee to be consistent with the
purpose of the Plan. The Committee shall determine the terms and conditions of such Awards,
subject to the terms of the Plan and the Award Agreement. Shares, or other securities delivered
pursuant to a purchase right granted under this Section 6(g), shall be purchased for consideration
having a value equal to at least 100% of the Fair Market Value of such Shares or other securities
on the date the purchase right is granted. The consideration paid by the Participant may be paid
by such method or methods and in such form or forms (including, without limitation, cash, Shares,
other securities, other Awards or other property, or any combination thereof), as the Committee
shall determine.

     (h) General.

          (i) Consideration for Awards. Awards may be granted for no cash consideration or for
any cash or other consideration as may be determined by the Committee or required by applicable
law.

          (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with or in substitution for any
other Award or any award granted under any other plan of the Company or any Affiliate. Awards
granted in addition to or in tandem with other Awards or in addition to or in tandem with awards
granted under any other plan of the Company or any Affiliate may be granted either at the same time
as or at a different time from the grant of such other Awards or awards.

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          (iii) Forms of Payment under Awards. Subject to the terms of the Plan and of any
applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon
the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, other securities, other Awards or other
property, or any combination thereof), and may be made in a single payment or transfer, in
installments or on a deferred basis, in each case in accordance with rules and procedures
established by the Committee. Such rules and procedures may include, without limitation,
provisions for the payment or crediting of reasonable interest on installment or deferred payments
or the grant or crediting of Dividend Equivalents with respect to installment or deferred payments.

          (iv) Term of Awards. The term of each Award shall be for a period not longer than 10
years from the date of grant.

          (v) Limits on Transfer of Awards. Except as otherwise provided by the Committee or
the terms of this Plan, no Award and no right under any such Award shall be transferable by a
Participant other than by will or by the laws of descent and distribution. The Committee may
establish procedures as it deems appropriate for a Participant to designate a Person or Persons, as
beneficiary or beneficiaries, to exercise the rights of the Participant and receive any property
distributable with respect to any Award in the event of the Participant’s death. The Committee, in
its discretion and subject to such additional terms and conditions as it determines, may permit a
Participant to transfer a Non-Qualified Stock Option to any “family member” (as such term is
defined in the General Instructions to Form S-8 (or any successor to such Instructions or such
Form) under the Securities Act of 1933, as amended) at any time that such Participant holds such
Option, provided that such transfers may not be for value (i.e., the transferor may not receive any
consideration therefor) and the family member may not make any subsequent transfers other than by
will or by the laws of descent and distribution. Each Award under the Plan or right under any such
Award shall be exercisable during the Participant’s lifetime only by the Participant (except as
provided herein or in an Award Agreement or amendment thereto relating to a Non-Qualified Stock
Option) or, if permissible under applicable law, by the Participant’s guardian or legal
representative. No Award or right under any such Award may be pledged, alienated, attached or
otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall
be void and unenforceable against the Company or any Affiliate.

          (vi) Restrictions; Securities Exchange Listing. All Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such
restrictions as the Committee may deem advisable under the Plan, applicable federal or state
securities laws and regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be placed on the certificates for such Shares or other securities to reflect
such restrictions. If the Shares or other securities are traded on a securities exchange, the
Company shall not be required to deliver any Shares or other securities covered by an Award unless
and until such Shares or other securities have been admitted for trading on such securities
exchange.

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Section 7. Amendment and Termination; Corrections.

     (a) Amendments to the Plan. The Board may amend, alter, suspend, discontinue or
terminate the Plan at any time; provided, however, that, notwithstanding any other provision of the
Plan or any Award Agreement, prior approval of the stockholders of the Company shall be required
for any amendment to the Plan that:

          (i) requires stockholder approval under the rules or regulations of the Securities and
Exchange Commission, the New York Stock Exchange, any other securities exchange or the National
Association of Securities Dealers, Inc. that are applicable to the Company;

          (ii) increases the number of shares authorized under the Plan as specified in Section 4(a) of
the Plan;

          (iii) increases the number of shares subject to the limitations contained in Section 4(d) of
the Plan;

          (iv) permits repricing of Options or Stock Appreciation Rights which is prohibited by Section
3(a)(v) of the Plan;

          (v) permits the award of Options or Stock Appreciation Rights at a price less than 100% of the
Fair Market Value of a Share on the date of grant of such Option or Stock Appreciation Right,
contrary to the provisions of Sections 6(a)(i) and 6(b)(ii) of the Plan; and

          (vi) would cause Section 162(m) of the Code to become unavailable with respect to the Plan.

     (b) Amendments to Awards. Subject to the provisions of the Plan, the Committee may waive any
conditions of or rights of the Company under any outstanding Award, prospectively or retroactively.
Except as otherwise provided in the Plan, the Committee may amend, alter, suspend, discontinue or
terminate any outstanding Award, prospectively or retroactively, but no such action may adversely
affect the rights of the holder of such Award without the consent of the Participant or holder or
beneficiary thereof.

     (c) Correction of Defects, Omissions and Inconsistencies. The Committee may correct any
defect, supply any omission or reconcile any inconsistency in the Plan or in any Award or Award
Agreement in the manner and to the extent it shall deem desirable to implement or maintain the
effectiveness of the Plan.

Section 8. Income Tax Withholding.

     In order to comply with all applicable federal, state, local or foreign income tax laws or
regulations, the Company may take such action as it deems appropriate to ensure that all applicable
federal, state, local or foreign payroll, withholding, income or other taxes, which are the sole
and absolute responsibility of a Participant, are withheld or collected from such Participant. In
order to assist a Participant in paying all or a portion of the applicable taxes to be

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withheld or collected upon exercise or receipt of (or the lapse of restrictions relating to)
an Award, the Committee, in its discretion and subject to such additional terms and conditions as
it may adopt, may permit the Participant to satisfy such tax obligation by (a) electing to have the
Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or
the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of
such taxes or (b) delivering to the Company Shares other than Shares issuable upon exercise or
receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to
the amount of such taxes. The election, if any, must be made on or before the date that the amount
of tax to be withheld is determined.

Section 9. General Provisions.

     (a) No Rights to Awards. No Eligible Person, Participant or other Person shall have any claim
to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of
Eligible Persons, Participants or holders or beneficiaries of Awards under the Plan. The terms and
conditions of Awards need not be the same with respect to any Participant or with respect to
different Participants.

     (b) Award Agreements. No Participant shall have rights under an Award granted to such
Participant unless and until an Award Agreement shall have been duly executed on behalf of the
Company and, if requested by the Company, signed by the Participant.

     (c) No Rights of Stockholders. Except with respect to Restricted Stock and Stock Awards,
neither a Participant nor the Participant’s legal representative shall be, or have any of the
rights and privileges of, a stockholder of the Company with respect to any Shares issuable upon the
exercise or payment of any Award, in whole or in part, unless and until the Shares have been
issued.

     (d) No Limit on Other Compensation Plans or Arrangements. Nothing contained in the Plan shall
prevent the Company or any Affiliate from adopting or continuing in effect other or additional
compensation plans or arrangements, and such plans or arrangements may be either generally
applicable or applicable only in specific cases.

     (e) No Right to Employment or Directorship. The grant of an Award shall not be construed as
giving a Participant the right to be retained as an employee of the Company or any Affiliate, or a
Director to be retained as a Director, nor will it affect in any way the right of the Company or an
Affiliate to terminate a Participant’s employment at any time, with or without cause. In addition,
the Company or an Affiliate may at any time dismiss a Participant from employment free from any
liability or any claim under the Plan or any Award, unless otherwise expressly provided in the Plan
or in any Award Agreement.

     (f) Governing Law. The internal law, and not the law of conflicts, of the State of Delaware,
shall govern all questions concerning the validity, construction and effect of the Plan or any
Award, and any rules and regulations relating to the Plan or any Award.

12

 

     (g) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan
or any Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially altering the purpose or
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction or Award,
and the remainder of the Plan or any such Award shall remain in full force and effect.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to
receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any Affiliate.

     (i) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash shall be paid in lieu of any
fractional Share or whether such fractional Share or any rights thereto shall be canceled,
terminated or otherwise eliminated.

     (j) Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

Section 10. Effective Date of the Plan; Effect on Prior Plans.

     The Plan shall be subject to approval by the stockholders of the Company at the annual meeting
of stockholders of the Company to be held on May 4, 2005 and the Plan shall be effective as of the
date of such stockholder approval. On and after the date of stockholder approval of the Plan, no
awards shall be granted under the Company’s 2000 Stock Incentive Plan, but all outstanding awards
previously granted under the 2000 Stock Incentive Plan shall remain outstanding in accordance with
the terms thereof. On and after the date of stockholder approval of the Plan, no stock options,
restricted stock, stock or other stock-based awards shall be granted under the 1996 Directors Stock
Compensation Program, but all stock options, restricted stock, stock or other stock-based awards
previously granted under the 1996 Directors Stock Compensation Program shall remain outstanding in
accordance with the terms thereof.

Section 11. Term of the Plan.

     The Plan shall terminate at midnight on May 4, 2015, unless terminated before then by the Board.
Awards may be granted under the Plan until the Plan terminates or until all Shares available for
Awards under the Plan have been purchased or acquired; provided, however, that Incentive Stock
Options may not be granted following the 10-year anniversary of the Board’s adoption of the Plan.
As long as any Awards are outstanding under the Plan, the terms of the Plan shall govern such
Awards.

13exv10w2

 

EXHIBIT 10.2

Imation Corp. 2005 Stock Incentive Plan

Stock Option Agreement

     This STOCK OPTION AGREEMENT (the “Agreement”) effective as of «GrantDt» is between Imation Corp.,
a Delaware corporation (the “Company”), and «Name», an employee of the Company or one of its Affiliates
(the “Participant”), pursuant to and subject to the terms and conditions of the Imation Corp. 2005
Stock Incentive Plan (the “Plan”).

     The Company desires to provide the Participant with an opportunity to purchase shares of the
Company’s common stock, par value $.01 per share (the “Common Stock”), as provided in this
Agreement in order to carry out the purpose of the Plan. The purpose of this Agreement is to
evidence the terms and conditions of a Non-Qualified Stock Option granted to the Participant under
the Plan.

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

Section 1. Grant of Non-qualified Stock Option. Effective «GrantDt» (the “Effective Date”), the Company
granted to the Participant the right and option to purchase all or any part of an aggregate of «Shares» («NbrShares»)
shares of Common Stock on the terms and conditions set forth in this Agreement and in accordance
with the terms of the Plan (the “Option”). The Option is not intended to be an incentive stock
option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

Section 2. Purchase Price. The purchase price of the shares of Common Stock subject to the Option
shall be «Price» per share.

Section 3. Term of the Option. The term of the Option (the “Option Period”) shall be for a period
of ten (10) years from the Effective Date, terminating at the close of business on the tenth
anniversary of the Effective Date (the “Expiration Date”) or such shorter period as provided in
Section 6 hereof.

Section 4. Vesting of the Option. Subject to Section 6 hereof, the Option may be exercised at any
time or from time to time during the Option Period, as to any part or all of the shares covered
thereby in accordance with the following vesting schedule:

          (a) twenty five percent (25%) of the Option may be exercised at any time on or after the first
anniversary of the Effective Date;

          (b) fifty percent (50%) of the Option may be exercised at any time on or after the second
anniversary of the Effective Date;

 

 

          (c) seventy five percent (75%) of the Option may be exercised at any time on or after the
third anniversary of the Effective Date; and

          (d) one hundred percent (100%) of the Option may be exercised at any time on or after the
fourth anniversary of the Effective Date.

Section 5. Transferability. The Option may not be assigned, transferred (other than by will or the
laws of descent and distribution), pledged, hypothecated (whether by operation of law or otherwise)
or otherwise conveyed or encumbered, and shall not be subject to execution, attachment or similar
process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the
Option contrary to the provisions of the Plan or this Agreement, or the levy of any execution,
attachment or similar process upon the Option, shall be void and unenforceable against the Company
and shall constitute an immediate cancellation of the Option.

Section 6. Effect of Termination of Employment.

          (a) In the event the Participant shall cease to be employed by the Company or an Affiliate for
any reason other than Termination for Cause, Retirement, death or Disability, the Participant may
exercise the Option to the extent of (but only to the extent of) the number of vested shares the
Participant was entitled to purchase under the Option on the date of such termination of
employment, and the exercise of the Option to that limited extent may be effected at any time
within thirty (30) days after the date of such termination of employment but not thereafter;
provided, however, that the Option may not be exercised after the Expiration Date.

          (b) In
the event the Participant shall cease to be employed by the Company or an Affiliate upon
Termination for Cause, the Option shall be terminated as of the date of such termination.

          (c) Except as otherwise provided in Sections 6(b) and 6(d), in the event the Participant shall
cease to be employed by the Company or an Affiliate because of Retirement, the Option, to the
extent not previously exercised or forfeited, shall be exercisable to the extent of (but only to
the extent of) the number of vested shares the Participant was entitled to purchase under the
Option on the date of the Participant’s Retirement, and the exercise of the Option to that limited
extent may be effected at any time within three (3) years after the date of the Participant’s
Retirement, but not thereafter; provided, however, that the Option may not be exercised after the
Expiration Date. If a Participant who has thus retired dies within three (3) years after the date
of the Participant’s Retirement and prior to the Expiration Date, the exercise of the Option to the
limited extent provided for in the first sentence of this Section 6(c) may be effected by the
Participant’s estate or by any Person or Persons to whom the Option has been transferred by will or
the applicable laws of descent and distribution at any time within two (2) years after the date of
the Participant’s death, but not after the Expiration Date.

          (d) In the event the Participant dies or is deemed to suffer a Disability while employed by
the Company or an Affiliate, the Option, to the extent not previously exercised or forfeited, shall
be exercisable to the extent of (but only to the extent of) the number of vested shares the
Participant was entitled to purchase under the Option on the date of the Participant’s death or
Disability. In the event of Participant’s death, the exercise of the Option to the limited

2

 

extent provided for in the first sentence of this Section 6(d) may be effected by the
Participant’s estate or by any Person or Persons to whom the Option has been transferred by will or
the applicable laws of descent and distribution at any time within two (2) years after the date of
the Participant’s death, but not after the Expiration Date. In the event of the Participant’s
Disability, the exercise of the Option to the limited extent provided for in the first sentence of
this Section 6(d) may be effected by the Participant at any time within two (2) years after the
date of the Participant’s Disability, but not after the Expiration Date.

Section 7. Anti-Dilution Adjustments. In the event that the Committee shall determine that any
dividend or other distribution (whether in the form of cash, shares of Common Stock, other
securities or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares or other
securities of the Company, issuance of warrants or other rights to purchase shares of Common Stock
or other securities of the Company or other similar corporate transaction or event affects the
shares of Common Stock covered by the Option such that an adjustment is determined by the Committee
to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under this Agreement, then the Committee shall, in such manner as it
may deem equitable, in its sole discretion, adjust any or all of the number and type of the shares
covered by the Option and the exercise price of the Option.

Section 8. Manner of Exercise. Subject to the terms and conditions of this Agreement, the Option
may be exercised by delivering written notice to the Stock Plan Administrator pursuant to
procedures prescribed by the Company from time to time. Such notice shall state the election to
exercise the Option and the number of shares in respect of which it is being exercised and shall be
signed by the Participant or such other Person entitled to exercise the Option. Such notice shall
be accompanied by payment of the full purchase price of such shares and applicable federal, state,
local and foreign withholding taxes, if any. The Participant shall deliver to the Company
consideration with a value equal to such purchase price and applicable withholding taxes, if any,
payable in whole or in part as follows: (a) cash, check, bank draft, money order or wire transfer
payable to the order of the Company, (b) shares of Common Stock owned by the Participant at the
time of exercise and/or (c) in any other form of valid consideration that is acceptable to the
Committee in its sole discretion. The value of any share of Common Stock delivered in payment of
all or part of the purchase price or applicable withholding taxes upon the exercise of the Option
shall be the closing sale price of a share of Common Stock on the New York Stock Exchange on the
date the Option shall be exercised or, if such Exchange is not open for trading on such date, on
the most recent preceding date on which such Exchange is open for trading. In the event that the
Option shall be exercised pursuant to Section 6(c) or 6(d) hereof by any Person or Persons other
than the Participant, such notice shall be accompanied by appropriate proof of the right of such
Person or Persons to exercise the Option. If the Participant fails to pay the full purchase price
of such shares or applicable withholding taxes, then the Option, and right to purchase such shares,
may be forfeited by the Participant, in the sole discretion of the Committee. The Option may be
exercised in whole or in part to the extent the Option is exercisable in accordance with the terms
of this Agreement, but only with respect to full shares of Common Stock. No fractional shares of
Common Stock shall be issued upon exercise of the Option, but the Company will pay, in lieu
thereof, the Fair Market Value of such fractional share.

3

 

Section 9. Issuance of Shares. Upon exercise of all or any portion of the Option, the Company will
cause to be issued to the Participant the shares of Common Stock purchased. Notwithstanding
anything to the contrary in this Agreement, the Company’s obligation to issue shares of Common
Stock shall be subject to (i) all applicable laws, rules and regulations and such approvals by any
governmental agencies as may be required, including, without limitation, the effectiveness of a
registration statement under the Securities Act of 1933, as amended, and (ii) the condition that
such shares shall have been duly listed on the New York Stock Exchange. The Participant shall not
have any of the rights and privileges of a shareholder of the Company with respect to the shares of
Common Stock subject to this Option unless and until such shares are issued to the Participant upon
due exercise of the Option.

Section 10. Taxes. The Participant acknowledges that the Participant will consult with the
Participant’s personal tax adviser regarding the income tax consequences of exercising the Option
or any other matters related to this Agreement. In order to comply with all applicable federal,
state, local or foreign income tax laws or regulations, the Company may take such action as it
deems appropriate to ensure that all applicable federal, state, local or foreign payroll,
withholding, income or other taxes, which are the Participant’s sole and absolute responsibility,
are withheld or collected from the Participant.

Section 11. Definitions. Terms not defined in this Agreement shall have the meanings given to them
in the Plan, and the following terms shall have the following meanings when used in this Agreement:

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

          (b) “Retirement” means retirement as defined under the Imation Corp. Cash Balance Pension
Plan.

          (c) “Stock Plan Administrator” means the Committee or any Director, officer or agent of the
Company designated by the Committee from time to time.

          (d) “Termination for Cause” means termination of Participant’s employment with the Company or
an Affiliate for the following acts: (i) the Participant’s gross incompetence or substantial
failure to perform his or her duties, (ii) misconduct by the Participant that causes or is likely
to cause harm to the Company or that causes or is likely to cause harm to the Company’s reputation,
as determined by the Company’s Board of Directors in its sole and absolute discretion (such
misconduct may include, without limitation, insobriety at the workplace during working hours or the
use of illegal drugs), (iii) failure to follow directions of the Company’s Board of Directors that
are consistent with the Participant’s duties, (iv) the Participant’s conviction of, or entry of a
pleading of guilty or nolo contendre to, any crime involving moral turpitude, or the entry of an
order duly issued by any federal or state regulatory agency having jurisdiction in the matter
permanently prohibiting the Participant from participating in the conduct of the affairs of the
Company or (v) any breach of this Agreement that is not remedied within thirty (30) days after
receipt of written notice from the Company specifying such breach in reasonable detail.

4

 

Section 12. Governing Law. The internal law, and not the law of conflicts, of the State of
Delaware will govern all questions concerning the validity, construction and effect of this
Agreement.

Section 13. Plan Provisions. This Agreement is made under and subject to the provisions of the
Plan, and all of the provisions of the Plan are also provisions of this Agreement. If there is a
difference or conflict between the provisions of this Agreement and the provisions of the Plan, the
provisions of the Plan will govern. By accepting this Option, the Participant confirms that the
Participant has received a copy of the Plan and represents that the Participant is familiar with
the terms and provisions thereof, and hereby accepts this Option subject to all the terms and
provisions of the Plan.

Section 14. No Right to Continue Service or Employment. Nothing herein shall be construed as
giving the Participant the right to continue in the employ or to provide services to the Company or
any Affiliate, whether as an employee or as a consultant or otherwise, or interfere with or
restrict in any way the right of the Company or any Affiliate to discharge the Participant, whether
as an employee or consultant or otherwise, at any time, with or without cause. In addition, the
Company or any Affiliate may discharge the Participant free from any liability or claim under this
Agreement, unless otherwise expressly provide herein.

Section 15. Entire Agreement. This Agreement together with the Plan supersede any and all other
prior understandings and agreements, either oral or in writing, between the parties with respect to
the subject matter hereof and constitute the sole and only agreements between the parties with
respect to said subject matter. All prior negotiations and agreements between the parties with
respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement
acknowledges that no representations, inducements, promises or agreements, orally or otherwise,
have been made by any party or by anyone acting on behalf of any party, which are not embodied in
this Agreement or the Plan and that any agreement, statement or promise that is not contained in
this Agreement or the Plan shall not be valid or binding or of any force or effect.

Section 16. Modification. No change or modification of this Agreement shall be valid or binding
upon the parties unless the change or modification is in writing and signed by the parties.
Notwithstanding the preceding sentence, the Plan, this Agreement and the Option may be amended,
altered, suspended, discontinued or terminated to the extent permitted by the Plan.

Section 17. Shares Subject to Agreement. The shares covered by the Option shall be subject to the
terms and conditions of this Agreement. Except as otherwise provided in Section 7, no adjustment
shall be made for dividends or other rights for which the record date is prior to the issuance of
such shares. The Company shall at all times during the Option Period reserve and keep available
such number of shares of Common Stock as will be sufficient to satisfy the requirements of this
Agreement.

Section 18. Severability. In the event that any provision that is contained in the Plan or this
Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or
would disqualify the Plan or this Agreement for any reason and under any law as deemed applicable
by the Committee, the invalid, illegal or unenforceable provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or deemed

5

 

amended without, in the determination of the Committee, materially altering the purpose or intent
of the Plan or this Agreement, such provision shall be stricken as to such jurisdiction or Option,
and the remainder of the Plan or this Agreement shall remain in full force and effect.

Section 19. Headings. Headings are given to the sections and subsections of this Agreement solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of this Agreement or any provision hereof.

Section 20. Participant’s Acknowledgments. The Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Committee or the Board of Directors of
the Company, as appropriate, upon any questions arising under the Plan or this Agreement.
Notwithstanding any of the provisions hereof, the Participant hereby agrees that the Participant
will not exercise the Option granted hereby, and that the Company will not be obligated to issue
any shares to the Participant hereunder, if the exercise thereof or the issuance of such shares
shall constitute a violation by the Participant or the Company of any provision of any law or
regulation of any governmental authority. Any determination in this connection by the Company,
including the Board of Directors of the Company or the Committee, shall be final, binding and
conclusive. The obligations of the Company and the rights of the Participant are subject to all
applicable laws, rules and regulations.

Section 21. Parties Bound. The terms, provisions, and agreements that are contained in this
Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their
respective heirs, executors, administrators, legal representatives and permitted successors and
assigns, subject to the limitation on assignment expressly set forth herein. This Agreement shall
have no force or effect unless it is duly executed and delivered by the Company.

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

	 	 	 	 	 
	 	 	IMATION CORP.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	

6

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