EX-10.30
Published on February 23, 2010
Exhibit 10.30
Graphic Packaging Holding Company
Service-Based Restricted Stock Unit Award Agreement
Service-Based Restricted Stock Unit Award Agreement
THIS AGREEMENT, effective as of the Grant Date set forth on the signature page hereto,
represents the grant by Graphic Packaging Holding Company (the Company) to the participant named
on the signature page hereto (the Participant) of Restricted Stock Units (the RSUs),
representing the right to earn shares of the Companys common stock or the equivalent value thereof
in cash, pursuant to the provisions of the Graphic Packaging Corporation 2004 Stock and Incentive
Compensation Plan, as such plan may be amended from time to time (the Plan), and subject to the
terms and conditions set forth in this award agreement (this Agreement).
The parties hereto agree as follows:
1. Defined Terms. Capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Plan. In addition, and notwithstanding any contrary
definition in the Plan, for purposes of this Agreement:
(a) | Delayed 409A Settlement Date shall mean the first day of the seventh month following the Participants separation from service (or if the Participant dies during such period, the date of the Participants death). | ||
(b) | Fair Market Value as of a given date shall mean the closing price of the Companys common stock on the NYSE (or other established stock exchange or market) on such date, or if such day is not a trading day, on the immediately preceding trading day. | ||
(c) | Grant Date means the date set forth on the signature page hereto. | ||
(d) | Involuntary Termination means the involuntary termination of the Participants employment by the Company or any Affiliate or Subsidiary other than for Cause, death or Disability. | ||
(e) | Pro-Rata Amount means the number of RSUs (rounded to the nearest whole number) equal to the product of (a) the number of RSUs originally granted, times (b) a fraction, the numerator of which is the number of full 12-month periods between the Grant Date and the date of termination of the Participants employment by reason of death, Disability, Retirement or Involuntary Termination, and the denominator of which is three. | ||
(f) | Retirement means voluntary termination of employment after age 65, or after age 62 with 25 years of service to the Company, its Affiliates or Subsidiaries or their predecessors. |
2. Grant of RSUs. The number of RSUs subject to this award is shown on the
signature page of this Agreement.
3. Earning and Vesting of RSUs. The RSUs do not represent actual shares of stock.
The RSUs will vest and become non-forfeitable on the earliest to occur of the following (the
Vesting Date):
(a) | the third anniversary of the Grant Date, provided the Participant has continued in the employment of the Company, its Affiliates, and/or its Subsidiaries through such date, or |
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(b) | the occurrence of a Change of Control, provided the Participant has continued in the employment of the Company, its Affiliates, and/or its Subsidiaries through such date, or |
(c) | as to the Pro-Rata Amount only, the termination of the Participants employment due to death, Disability or Retirement, or |
(d) | as to the Pro-Rata Amount only, on the 60th day after the Participants Involuntary Termination; provided that the Participant shall have executed a separation agreement including a release of claims in a form satisfactory to the Company and the release shall have become irrevocable within such 60-day period. |
If the Participants employment with the Company or an Affiliate or Subsidiary terminates prior to
the Vesting Date for any reason other than as described above (or in the case of the Participants
Involuntary Termination, if the Participant fails to execute or revokes a release of claims in a
form satisfactory to the Company within the applicable 60-day period), the Participant shall
forfeit all right, title and interest in and to the unvested RSUs as of the date of such
termination (or as of the 60th day after the Participants Involuntary Termination, as
applicable) and the RSUs will be cancelled by the Company without further consideration or any act
or action by the Participant.
4. Settlement of RSUs. The vested RSUs shall be valued as of the later of (i) the
Vesting Date, or (ii) if vesting occurs by reason of the Participants termination of employment
other than due to death and the Participant is a specified employee of the Company for purposes
of Code Section 409A as of the date of such separation from service, the Delayed 409A Settlement
Date (as applicable, the Valuation Date), based on the Fair Market Value of the Companys common
stock as of the Valuation Date (the Settlement Value). The Participant shall be entitled to
receive 2/3 of the Settlement Value in Shares (the number of Shares being determined by dividing
the Settlement Value by the Fair Market Value of the Companys common stock as of the Valuation
Date) and 1/3 of the Settlement Value in cash. Payout of the RSUs shall be made on a date to be
determined by the Company that is within 60 days after the Vesting Date (or within 75 days after
the date of Involuntary Termination, in the case of vesting under Section 3(d)); provided, however,
that if the valuation date is the Delayed 409A Settlement Date, then payout of the RSUs (based on
the Settlement Value) shall be made on a date to be determined by the Company that is within 60
days after the Delayed 409A Settlement Date.
5. Nontransferability. The RSUs may not be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated (a Transfer) other than by will or by the laws of descent and
distribution, except as provided in the Plan. The designation of a beneficiary shall not
constitute a Transfer.
6. Limitation of Rights. The RSUs do not confer to the Participant or the
Participants beneficiary, executors or administrators any rights of a shareholder of the Company
unless and until Shares are in fact issued to such person in connection with the RSUs. Upon
conversion of the RSUs into Shares, the Participant will obtain full voting and other rights as a
shareholder of the Company.
7. Continuation of Employment. Nothing in this Agreement shall interfere with or
limit in any way the right of the Company or any Affiliate or Subsidiary to terminate the
Participants employment at any time, nor confer upon the Participant any right to continue in
employment of the Company or any Affiliate or Subsidiary.
8. Payment of Taxes. The Company or any Affiliate or Subsidiary employing the
Participant has the authority and the right to deduct or withhold, or require the Participant to
remit to the employer, an amount sufficient to satisfy federal, state, and local taxes (including
the Participants FICA obligation) required by law to be withheld with respect to any taxable event
arising as a result of the vesting or
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settlement of the RSUs. With respect to withholding required upon any taxable event arising
as a result of the RSUs, the employer will satisfy the tax withholding requirement on the cash
portion by withholding cash equal to the total minimum statutory tax required to be withheld, and
on the Share portion by withholding Shares having a Fair Market Value as of the date that the
amount of tax to be withheld is to be determined as nearly equal as possible to (but no more than)
the total minimum statutory tax required to be withheld The obligations of the Company under this
Agreement to payout the RSUs will be conditional on such payment or arrangements, and the Company,
and, where applicable, its Affiliates or Subsidiaries will, to the extent permitted by law, have
the right to deduct any such taxes from any payment of any kind otherwise due to the Participant.
9. Participant Obligations.
(a) | Non-Competition. During the period of Participants employment with Company or its subsidiaries and for one year following the date of termination of Participants employment, Participant shall not, directly or indirectly, become employed or serve as a consultant performing the same or similar job duties as Participant performed for the Company or its subsidiaries at the time of termination of Participants employment with any of the following competitors, or any of their current subsidiaries or successors: |
[Insert Companies Here] |
(b) | Non-Solicitation of Employees. For one year following the date of termination of employment, Participant shall not, directly or indirectly, for his/her own account or for the account of any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity anywhere in the United States, solicit for employment, employ or otherwise interfere with the relationship of Company or its subsidiaries with, any person who at any time during the six months preceding such solicitation, employment or interference is or was employed by or otherwise engaged to perform services for Company or its subsidiaries, other than any such solicitation or employment during Participants employment with Company or its subsidiaries on behalf of Company or its subsidiaries. |
(c) | Non-Solicitation of Customers. For one year following the date of termination of employment, Participant shall not, directly or indirectly, for his/her own account or for the account of any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity anywhere in the United States, solicit or otherwise attempt to establish any business relationship for purposes of engaging in the manufacture, sales or converting of paperboard and paperboard packaging with any Person who is or was a customer, client or distributor of Company or its subsidiaries, or any affiliates of such customer, client or distributor, with whom Participant had contact during the last year of Participants employment with Company or its subsidiaries. |
(d) | Equitable Relief. Participant acknowledges and agrees that the covenants, obligations and agreements of Participant contained in this section 9 relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants, obligations or agreements will cause Company irreparable injury for which adequate remedies are not available at law. Therefore, Participant agrees that Company shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain Participant from committing any violation of such covenants, obligations or agreements. These injunctive remedies are cumulative and in addition to any other rights and remedies Company may have. |
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10. Plan Controls. This Agreement and the Participants rights hereunder are
subject to all the terms and conditions of the Plan, as the same may be amended from time to time,
as well as to such rules and regulations as the Committee may adopt for administration of the Plan.
It is expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan and this Agreement, all
of which shall be final and binding upon the Participant. In the event of any actual or alleged
conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of
the Plan shall be controlling and determinative (except for any definitions of terms which are
specifically set forth herein). Any conflict between this Agreement and the terms of a written
employment agreement with the Participant shall be decided in favor of the provisions of this
Agreement.
11. Amendment. Subject to the terms of the Plan, this Agreement may be modified or
amended by the Committee; provided that no such amendment shall materially adversely affect the
rights of the Participant hereunder without the consent of the Participant. The waiver by the
Company of breach of any provision of this Agreement by the Participant shall not operate or be
construed as a waiver of any subsequent breach by the Participant. Notwithstanding the foregoing,
the Committee shall have unilateral authority to amend the Plan and the Agreement without the
Participants consent to the extent necessary to comply with applicable law or changes to
applicable law (including, but not limited to, Code Section 409A) and related regulations or other
guidance and federal securities laws.
12. Severability. The provisions of this Agreement are severable and if any one or
more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable.
13. Applicable Laws and Consent to Jurisdiction. The validity, construction,
interpretation, and enforceability of this Agreement shall be determined and governed by the laws
of the state of Delaware without giving effect to the principles of conflicts of law.
(signatures on following page)
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IN WITNESS WHEREOF, the parties have executed this Agreement, effective as of the Grant
Date set forth below.
Graphic Packaging Holding Company |
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By: | /s/ Cynthia A. Baerman | |||
Cynthia A. Baerman | ||||
Senior Vice President, Human Resources | ||||
Participant |
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By: | ||||
Name: | «First_Name» «Middle_Initial__Name» | |||
«Last_Name» | ||||
Grant Date: March 4, 2009
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