Exhibit 4.3
CENVEO, INC.
2001 LONG-TERM EQUITY INCENTIVE PLAN
FORM OF
NON-QUALIFIED STOCK OPTION AGREEMENT FOR DIRECTORS
This Non-qualified Stock Option Agreement ("Option Agreement") is
between Cenveo, Inc., a Colorado corporation (the "Company"), and <>
(the "Optionee").
W I T N E S S E T H:
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WHEREAS, the Company has heretofore adopted the Cenveo, Inc. 2001
Long-Term Equity Incentive Plan, as amended (the "Plan"), for the purpose of
providing employees and directors of the Company and its Affiliates (as
defined in the Plan) with additional incentive to promote the success of the
business, to increase their proprietary interest in the success of the
Company, and to encourage them to remain in the employ or remain as a
director of the Company and its Affiliates; and
WHEREAS, the Company, acting through the Compensation Committee of
its Board of Directors (the "Committee"), has determined that its interests
will be advanced by the issuance to Optionee of nonqualified stock options
under the Plan;
NOW THEREFORE, for and in consideration of these premises it is
agreed as follows:
1. Option. Subject to the terms and conditions contained herein,
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the Company hereby irrevocably grants to Optionee the right and option
("Option") to purchase from the Company <> shares of the Company's
common stock, $0.01 par value ("Common Stock"), at a price of
<> per share (the "Option Price").
2. Option Period. The Option herein granted may be exercised by
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Optionee in whole or in part at any time during a seven (7) year period
beginning on <> ("Option Period"), subject to the limitation
that said Option shall not be exercisable for more than a percentage of the
aggregate number of shares offered by this option determined by the number
of full or half years of employment with the Company or its Affiliates from
the effective date of the Optionee's grant, to the date of such exercise, in
accordance with the following schedule:
Number Percentage of
of Years Shares Purchasable
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1 20%
2 40%
3 60%
4 80%
5 100%
Notwithstanding anything in this Agreement to the contrary, the Committee,
in its sole discretion may waive the foregoing schedule of vesting and upon
written notice to the Optionee, accelerate the earliest date or date on
which any of the Options granted hereunder are exercisable.
3. Procedure for Exercise. The Option herein granted may be
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exercised by written notice by Optionee to the Secretary of the Company
setting forth the number of shares of Common Stock with respect to which the
Option is to be exercised accompanied by payment for the shares to be
purchased, and specifying the address to which the certificate for such
shares is to be mailed. Payment shall be by means of cash, or a cashier's
check, bank draft, postal or express money order payable to the order of the
Company, or at the option of the Optionee, in Common Stock theretofore owned
by such Optionee (or a combination of cash and Common Stock). As promptly as
practicable after receipt of such written notification and payment, the
Company shall deliver to Optionee certificates for the number of shares of
Common Stock with respect to which such Option has been so exercised.
4. Termination of Directorship. If the Optionee ceases to serve on
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the Board of the Company during the Option Period for any reason other than
death or disability, Options granted to Optionee shall be exercisable by
Optionee within 180 days of such termination; provided, however, that if
Optionee's cessation from the Board occurs when Optionee is at least 70
years of age, such Options shall remain exercisable for such period as would
apply if Optionee had not ceased to serve the Board of the Company. Any
Options which have not been exercised within the period described in the
preceding sentence shall expire and be of no force or effect.
5. Disability or Death. If Optionee's directorshipwith the Company
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or its Affiliates terminates by his or her disability or death, all Options
hereunder exercisable at the date of such disability or death shall be
thereafter exercisable by Optionee, his or her executor or administrator, or
the person or persons to whom his rights under this Option Agreement shall
pass by will or by the laws of descent and distribution, as the case may be,
for a period of three (3) years from the date of Optionee's disability or
death, unless this Option Agreement should earlier terminate in accordance
with its other terms. In no event may any Option be exercised after the end
of the Option Period. Optionee shall be deemed to be disabled if, in the
option of a physician selected by the Committee, he is incapable of
performing services for the Company by reason of any medically determinable
physical or mental impairment which can be expected to result in death or to
be of long, continued and indefinite duration.
6. Transferability. This Option shall not be transferable by
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Optionee otherwise than by Optionee's will or by the laws of descent and
distribution. During the lifetime of Optionee, the Option shall be
exercisable only by Optionee. Any heir or legatee of Optionee shall take
rights herein granted subject to the terms and conditions hereof. No such
transfer of this Option Agreement to heirs or legatees of Optionee shall be
effective to bind the Company unless the Company shall have been furnished
with written notice thereof and a copy of such evidence as the Committee may
deem necessary to establish the validity of the transfer and the acceptance
by the transferee or transferees of the terms and conditions hereof.
7. No Rights as Stockholder. Optionee shall have no rights as a
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stockholder with respect to any shares of Common Stock covered by this
Option Agreement until the date of issuance of a certificate for shares of
Common Stock purchased pursuant to this Option
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Agreement. Until such time, Optionee shall not be entitled to dividends or
to vote at meetings of the stockholders of the Company. Except as provided
in paragraph 9 hereof, no adjustment shall be made for dividends (ordinary
or extraordinary, whether in cash or securities or other property) paid or
distributions or other rights granted in respect of any share of Common
Stock for which the record date for such payment, distribution or grant is
prior to the date upon which the Optionee shall have been issued share
certificates, as provided hereinabove.
8. Extraordinary Corporate Transactions. If the Company
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recapitalizes or otherwise changes its capital structure, or merges,
consolidates, sells all of its assets or dissolves (each of the foregoing a
"Fundamental Change"), then thereafter upon any exercise of an Option
theretofore granted the Optionee shall be entitled to purchase under such
Option, in lieu of the number of shares of Common Stock as to which Option
shall then be exercisable, the number and class of shares of stock and
securities to which the Optionee would have been entitled pursuant to the
terms of the Fundamental Change if, immediately prior to such Fundamental
Change, the Optionee had been the holder of record of the number of shares
of Common Stock as to which such Option is then exercisable.
9. Changes in Capital Structure. The existence of outstanding
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Options shall not affect in any way the right or power of the Company or its
shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company's capital structure or its
business, or any merger or consolidation of the Company, or any issuance of
Common Stock or subscription rights thereto, or any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceedings, whether of a similar
character or otherwise. If the outstanding shares of Common Stock of the
Company shall at any time be changed or exchanged by declaration of a stock
dividend, stock split, combination of shares, or recapitalization, the
number and kind of shares subject to the Plan or subject to any Options
theretofore granted, and the Option Price and the prices at which portions
of the Option may be exercisable on an accelerated basis as set forth in
Section 2, shall be appropriately and equitably adjusted so as to maintain
the proportionate number of shares without changing the aggregate Option
Price.
10. Change of Control. In the event that there is a proposed Change
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of Control Event (as defined below), the Option shall become immediately
exercisable notwithstanding the provisions of Section 2, and Optionee
hereunder shall be given reasonable notice of such Change of Control Event
and shall have a period of at least thirty (30) days thereafter to exercise
the Options.
As used herein, the term "Change of Control Event" shall mean the
occurrence with respect to the Company of any of the following events:
(a) a report on Schedule 13D is filed with the Securities and
Exchange Commission pursuant to Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), disclosing
that any person, entity or group (within the meaning of Section
13(d) or 14(d) of the Exchange Act), other than (i) the Company (or
one of its
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subsidiaries) or (ii) any employee benefit plan sponsored by the
Company (or one of its subsidiaries), is the beneficial owner (as
such term is defined in Rule 13d-3 promulgated under the Exchange
Act), directly or indirectly, of 50% or more of the outstanding
shares of Common Stock or 50% or more of the combined voting power
of the then outstanding securities of the Company (as determined
under paragraph (d) of Rule 13d-3 promulgated under the Exchange
Act, in the case of rights to acquire common stock or other
securities);
(b) an event of a nature that would be required to be reported in
response to Item 1(a) of the Current Report on Form 8-K, as in
effect on the date hereof, pursuant to Section 13 or 15(d) of the
Exchange Act or would have been required to be so reported but for
the fact that such event had been "previously reported" as that
term is defined in Rule 12b-2 promulgated under the Exchange Act;
(c) any person, entity or group (within the meaning of Section
13(d) or 14(d) of the Exchange Act), other than (i) the Company (or
one of its subsidiaries) or (ii) any employee benefit plan
sponsored by the Company (or one of its subsidiaries), shall become
the beneficial owner (as such term is defined in Rule 13d-3
promulgated under the Exchange Act), directly or indirectly, of 50%
or more of the outstanding shares of Common Stock or 50% or more of
the combined voting power of the then outstanding securities of the
Company (as determined under paragraph (d) of Rule 13d-3
promulgated under the Exchange Act, in the case of rights to
acquire common stock or other securities);
(d) the stockholders of the Company shall approve any liquidation
or dissolution of the Company;
(e) the stockholders of the Company shall approve a merger,
consolidation, reorganization, recapitalization, exchange offer,
acquisition or disposition of assets or other transaction after the
consummation of which any person, entity or group (within the
meaning of Section 13(d) or 14(d) of the Exchange Act) would become
the beneficial owner (as such term is defined in Rule 13d-3
promulgated under the Exchange Act), directly or indirectly, of 50%
or more of the outstanding shares of Common Stock or 50% or more of
the combined voting power of the then outstanding securities of the
Company (as determined under paragraph (d) of Rule 13d-3
promulgated under the Exchange Act, in the case of rights to
acquire common stock or other securities);
(f) individuals who constitute the Board on the date hereof
("Incumbent Board") cease for any reason to constitute at least a
majority thereof, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for
election by the Company's stockholders, was approved by a vote of
at least two-thirds of the directors comprising the remaining
members of the Incumbent Board (either by a specific vote or by
approval of the proxy statement of the Company in which such person
is named as a nominee for director, without objection to such
nomination) shall be, for purposes of this clause (f), considered
as though such person were a member of the Incumbent Board; or
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(g) a recapitalization or other transaction or series of related
transactions occurs which results in a decrease by 50% or more in
the aggregate percentage ownership of the then outstanding Common
Stock or 50% or more in the combined voting power of the
outstanding securities of the Company held by the stockholders of
the Company immediately prior to giving effect thereto (on a
primary basis or on a fully diluted basis after giving effect to
the exercise of stock options and warrants).
11. Compliance With Securities Laws. Upon the acquisition of any
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shares pursuant to the exercise of the Option herein granted, Optionee (or
any person acting under paragraph 6) will enter into such written
representations, warranties and agreements as the Company may reasonably
request in order to comply with applicable securities laws or with this
Option Agreement.
12. Compliance With Laws. Notwithstanding any of the other
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provisions hereof, Optionee agrees that he or she will not exercise the
Option(s) granted hereby, and that the Company will not be obligated to
issue any shares pursuant to this Option Agreement, if the exercise of the
Option(s) or the issuance of such shares of Common Stock would constitute a
violation by the Optionee or by the Company of any provision of any law or
regulation of any governmental authority.
13. Withholding of Tax. To the extent that the exercise of this
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Option or the disposition of shares of Common Stock acquired by exercise of
this Option results in compensation income to the Optionee for federal or
state income tax purposes, the Optionee shall pay to the Company at the time
of such exercise or disposition (or such other time as the law permits if
the Optionee is subject to Section 16(b) of the Exchange Act) such amount of
money as the Company may require to meet its obligation under applicable tax
laws or regulations; and, if the Optionee fails to do so, the Company is
authorized to withhold from any cash remuneration then or thereafter payable
to the Optionee, any tax required to be withheld by reason of such resulting
compensation income or Company may otherwise refuse to issue or transfer any
shares otherwise required to be issued or transferred pursuant to the terms
hereof.
14. Resolution of Disputes. As a condition of the granting of the
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Option hereby, the Optionee and his heirs and successors agree that any
dispute or disagreement which may arise hereunder shall be determined by the
Committee in its sole discretion and judgment, and that any such
determination and any interpretation by the Committee of the terms of this
Option Agreement shall be final and shall be binding and conclusive, for all
purposes, upon the Company, Optionee, his heirs and personal
representatives.
15. Legends on Certificate. The certificates representing the shares of
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Common Stock purchased by exercise of an Option will be stamped or otherwise
imprinted with legends in such form as the Company or its counsel may
require with respect to any applicable restrictions on sale or transfer and
the stock transfer records of the Company will reflect stop-transfer
instructions with respect to such shares.
16. Notices. Every notice hereunder shall be in writing and shall
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be given by registered or certified mail. All notices of the exercise of any
Option hereunder shall be directed
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to Cenveo, Inc. ▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇., #▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇,
Attention: Secretary. Any notice given by the Company to Optionee directed
to him or her at his address on file with the Company shall be effective to
bind him or her and any other person who shall acquire rights hereunder. The
Company shall be under no obligation whatsoever to advise Optionee of the
existence, maturity or termination of any of Optionee's rights hereunder and
Optionee shall be deemed to have familiarized him or herself with all
matters contained herein and in the Plan which may affect any of Optionee's
rights or privileges hereunder.
17. Construction and Interpretation. Whenever the term "Optionee"
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is used herein under circumstances applicable to any other person or persons
to whom this award, in accordance with the provisions of paragraph 6 hereof,
may be transferred, the word "Optionee" shall be deemed to include such
person or persons. References to the masculine gender herein also include
the feminine gender for all purposes.
18. Agreement Subject to Plan. This Option Agreement is subject to
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the Plan. The terms and provisions of the Plan (including any subsequent
amendments thereto) are hereby incorporated herein by reference thereto. In
the event of a conflict between any term or provision contained herein and a
term or provision of the Plan, the applicable terms and provisions of the
Plan will govern and prevail. All definitions of words and terms contained
in the Plan shall be applicable to this Option Agreement.
19. Binding Effect. This Option Agreement shall be binding upon and
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inure to the benefit of any successors to the Company and all persons
lawfully claiming under Optionee.
IN WITNESS WHEREOF, this Option Agreement has been executed as of
the day of 2004.
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CENVEO, INC.
ATTEST: By:
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▇▇▇▇ ▇. ▇▇▇▇▇▇
Its: Chairman, President and CEO
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▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President-General Counsel OPTIONEE
and Secretary
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<>
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