Exhibit 99.6
STOCK OPTION AGREEMENT
The Compensation Committee of the Board of Directors of CNF Inc. has awarded
you, as Optionee, the following option ("Option") to purchase shares of CNF
common stock:
Award effective date: ____________, _____
Non-qualified stock options: ____________ shares
▇▇▇▇▇ ▇▇▇▇▇ per share: $______
Vesting: One-third on January 1, ____; an additional one-third on
January 1, ____; and an additional one-third on January 1, ____
Fully vested: January 1, ____
Expiration date: ____________, _______ [ten years from grant date]
Please refer to the enclosed Highlights of Your Stock Options brochure for
information about how stock options work.
This Option is subject to the provisions of the CNF Inc. 1997 Equity and
Incentive Plan, and the attached Terms and Conditions which are part of this
Stock Option Agreement. These documents and any documents that may be issued
in the future constitute part of a Prospectus under the Securities Act of
1933, as amended, covering the securities issuable to you upon exercise of
your options.
I accept the Option described above and the attached Terms and Conditions of
the Stock Option Agreement. I also accept the provisions of the CNF Inc. 1997
Equity and Incentive Plan.
Signature
--------------------
Date ------------------------
If you have questions regarding your options, or you wish to take action with
respect to your options, please call ▇▇▇▇▇▇▇▇ W, ▇▇▇▇▇▇▇, Senior Vice
President, General Counsel and Secretary at ▇▇▇-▇▇▇-▇▇▇▇ or ▇▇▇▇ ▇. ▇▇▇▇▇▇,
Deputy General Counsel at ▇▇▇-▇▇▇-▇▇▇▇.
For your convenience a return envelope is included with this packet.
This document constitutes part of a prospectus of CNF Inc. covering
securities that have been registered under the Securities Act of 1933.
Except as otherwise stated in the Stock Option Agreement (the `Agreement') to
which these Terms and Conditions are attached and form a part, and subject to
the terms and conditions of the CNF Inc. 1997 Equity and Incentive Plan (the
`Plan'), which Plan is incorporated herein by reference, the following apply
to the Option (as defined below). (Capitalized terms used herein without
definition shall have the meanings given to such terms in the Plan.)
1. The Company grants to Optionee (the person designated in the Agreement as
the grantee thereof) the right and option to purchase (the `Option'), on
the terms and conditions of the Agreement and as hereinafter set forth,
shares of the presently authorized but unissued Common Stock ($0.625 par
value) of the Company (hereinafter called the `Stock'), or shares of
authorized and issued Stock reacquired by the Company and held in its
treasury. The purchase price of the Stock subject to the Option shall be
as set forth in the Agreement but shall not be less than the Fair Market
Value of a share of Common Stock on the grant date (award effective date)
of the Option.
2. In consideration of the Option, Optionee agrees to remain an active full-
time employee of the Company or of a Subsidiary or Affiliate (a `Regular
Employee`) at all times during the period beginning with the date on which
the Option was granted and ending on January 1, _____ or at the time of
Normal Retirement, whichever occurs first, and, except to the extent that
the Option becomes exercisable and continues to be exercisable pursuant to
Paragraphs 3 and 4 below, if Optionee ceases to be a Regular Employee
within said period the Option shall become null and void.
As used herein:
Retirement means retirement under the Company's established retirement plan
as in effect on the date of Optionee's termination of employment.
Normal Retirement means Retirement on or after age 65 (Normal Retirement
Date) or after attaining age 55 with combined age in whole or partial years
(rounded to the nearest whole month) plus years of service (as defined in
such plan) equal to at least 85 (the Rule of 85). As of the date hereof, the
Company's retirement plan provides that an employee who at the time of his
termination of employment is eligible to receive benefits under a qualified
defined benefit plan of the Company or a Subsidiary or an Affiliate shall be
deemed to have retired only if such employee elects within sixty (60) days
from his last day of employment to commence receiving monthly benefits under
such plan. The Company may, in its sole discretion, revise such plan at any
time or from time to time.
3. Except as otherwise provided in Paragraph 4, the period for exercising the
Option (the `Option Period') shall be the period, which will commence when
the Option becomes exercisable (as specified below) and will end on the
tenth anniversary of the date on which the Option was granted (referred to
herein as the `Terminal Date' of the Option).
One third of the Option will become exercisable on January 1, _____; an
additional one-third shall become exercisable on January 1, _____; and an
additional one-third shall become exercisable on January 1, _____. If the
Option consists of incentive stock options ("ISOs") and non-qualified
stock options ("NQSOs"), the ISOs and NQSOs will become exercisable on a
pro rata basis on such anniversaries.
4. In the following circumstances, the Option Period specified in Paragraph 3
shall not apply, and the Option shall be exercisable as set forth below:
(a)If Optionee ceases to be a Regular Employee during the Option Period
(other than (i) for Cause (as defined below), (ii) on account of
Retirement, (iii) following a Change in Control applicable to Optionee or
(iv) as a result of Optionee's death or Disability), the Option shall
thereafter be exercisable only to the extent exercisable at the time
Optionee ceases to be a Regular Employee and only prior to the end of the
3-month period commencing with such cessation or prior to the Terminal
Date of the Option, whichever shall first occur (except as otherwise
provided in subparagraph (g) in the case of subsequent death).
If Optionee is absent from work with the Company, a Subsidiary or an
Affiliate because of his Disability or if he is on leave of absence for
the purpose of serving the government of the country in which the
principal place of employment of Optionee is located, either in a
military or civilian capacity, or for such other purpose or reason as
the Committee may approve, Optionee shall not be deemed during the
period of any such absence, by virtue of such absence alone, to have
ceased to be a Regular Employee, except as the Committee may otherwise
expressly provide.
As used herein:
Disability means a substantial mental or physical disability, as determined
by the Committee in its sole discretion.
(b)If the employment of Optionee is terminated for Cause, the Option
(including any portion of the Option that may have become exercisable)
shall terminate on the date of such termination of employment and shall
thereupon not be exercisable to any extent whatsoever. As used herein,
`Cause' means (i) the failure or refusal by Optionee to perform, or
neglect in the performance of, his duties, functions or responsibilities,
(ii) Optionee's commission of such acts of dishonesty, fraud,
misrepresentation or other acts of moral turpitude, or (iii) such other
acts or omissions of Optionee, as the Committee, in the exercise of its
sole discretion, considers to constitute Cause.
(c)If the Optionee ceases to be a Regular Employee on account of Normal
Retirement and the Option has not yet become fully exercisable at such
time, the Option shall continue to become exercisable in installments
under Paragraph 3, and the Option shall continue to be exercisable until
one year after the final installment has become exercisable, or on or
prior to the Terminal Date of the Option, whichever shall first occur.
(d)If the Optionee ceases to be a Regular Employee on account of Retirement
and subparagraph (c) does not apply, the Option, to the extent exercisable
at Retirement, shall continue to be exercisable until one year after
Retirement, or on or prior to the Terminal Date of the Option, whichever
shall first occur.
(e)Except as otherwise provided in Section 7 of the Plan, in the event of a
Change in Control applicable to Optionee, the Option shall become fully
exercisable and shall continue to be exercisable until three months after
Optionee ceases to be a Regular Employee or one year after the date of the
Change in Control, whichever occurs later, but not beyond the Terminal
Date of the Option.
(f)If Optionee ceases to be a Regular Employee as a result of Optionee's
Disability, the Option may be exercised by Optionee within one year after
Optionee ceases to be a Regular Employee, or on or prior to the Terminal
Date of the Option, whichever shall first occur.
(g)If Optionee should die while the Option is exercisable, the Option may be
exercised by Optionee's executor or administrator, or by the person or
persons to whom Optionee's rights under the Option shall pass by will or
by the applicable laws of descent and distribution, within one year from
date of death of Optionee (or one year after the final installment has
become exercisable, if later), or the Terminal Date of the Option,
whichever shall first occur.
1. Optionee may exercise the Option, to the extent exercisable and with
respect to all or part of the shares of Stock then subject to such
exercise, by giving the Company written notice of such exercise,
specifying the number of shares as to which the Option is so exercised and
tendering either (i) cash or a certified check, bank draft or postal or
express money order payable to the order of the Company for an amount in
lawful money of the United States equal to the ▇▇▇▇▇ ▇▇▇▇▇ of such shares,
or (ii) properly endorsed or transferable shares of Stock with a value
equal to the ▇▇▇▇▇ ▇▇▇▇▇ of such shares, or (iii) a combination of (i) and
(ii) above having an aggregate value equal to the ▇▇▇▇▇ ▇▇▇▇▇ of such
shares. In addition, if administratively feasible Optionee may effect a
`cashless' exercise of the Option by immediately selling a part of the
Option shares and using the proceeds therefrom to pay the ▇▇▇▇▇ ▇▇▇▇▇ of
all of the Option Shares. For a cashless exercise, Optionee shall be
responsible for all brokerage commissions, transaction fees and other
charges of the executing broker. No partial exercise of the Option may be
for less than 100 shares unless fewer than 100 shares are outstanding
under the Option, in which case the Option may be exercised as to the
total of such shares. In no event shall the Company be required to issue
fractional shares.
As soon as practicable after receipt of such notice, the Company shall,
without transfer or issue tax and (except for withholding tax arrangements
contemplated by paragraph 14 hereof) without other incidental expense to
Optionee, deliver to Optionee at the office of the Company, ▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, or such other place as may be
mutually acceptable to the Company and Optionee, a certificate or
certificates for such shares; provided, however, that the time of such
delivery may be postponed by the Company for such period as may be
required for it with reasonable diligence to comply with applicable
requirements under the Federal securities acts, as amended, any applicable
listing requirements of any national securities exchange, and requirements
under any other law or regulation applicable to the issuance or transfer
of such shares. If Optionee fails to pay for or accept delivery of all or
any part of the number of shares specified in the notice of exercise, his
right to purchase such undelivered shares may be terminated by the Company
at its election.
2. In the event that a corporate transaction or event described in the last
paragraph of Section 5 of the Plan shall occur, the terms of such last
paragraph of Section 5 of the Plan shall govern.
3. The Option shall, during Optionee's lifetime, be exercisable only by him
or her, and neither the Option nor any right hereunder shall be
transferable by Optionee by operation of law or otherwise, other than by
will or the laws of descent and distribution or pursuant to a qualified
domestic relations order (`QDRO'); provided, however, the Committee may,
in its discretion, (i) pursuant to rules adopted by the Committee, permit
transfer(s) of all or part of the Option in connection with Optionee's
estate planning, and (ii) permit transfers upon divorce or marital
dissolution other than pursuant to a QDRO. In the event of an attempt by
Optionee to alienate, assign, pledge, hypothecate, or otherwise dispose of
the Option or of any right hereunder, except as provided for herein, or in
the event of the levy of any attachment, execution, or similar process
upon the rights or interest hereby conferred, the Company at its election
may terminate the Option by notice to Optionee and the Option shall
thereupon become null and void.
4. Neither Optionee nor any person entitled to exercise Optionee's Option in
the event of his or her death shall have any of the rights of a
shareholder with respect to the shares of stock subject to the Option
except to the extent that shares of stock are issued upon such person's
proper exercise of the Option.
5. Optionee agrees to promptly notify the Company of the sale of any shares
that were initially issued upon exercise of ISOs and held, in order for
the Company to be able to comply with applicable federal and state tax
withholding laws.
6. Any notice required to be given by Optionee under the terms of the Option
shall be addressed to the Company in care of its General Counsel at ▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, and any notice to be given
to Optionee shall be addressed to him or her at his or her last known
address as shown on the Company's records or such other address as either
party hereto may hereafter designate in writing to the other. Any such
notice shall be deemed to have been duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, registered or certified
and deposited (postage or registration or certification fee prepaid) in a
post office or branch post office regularly maintained by the United
States.
7. All decisions of the Committee upon any question arising under the Plan or
any Stock Option Agreement shall be conclusive.
8. Nothing herein contained shall affect Optionee's right to participate in
and receive benefits from and in accordance with the then current
provisions of any pension, insurance, or other employment welfare plan or
program of the Company.
9. Nothing in the Stock Option Agreement (including these Terms and
Conditions) or any other agreement entered into pursuant hereto (i) shall
confer upon Optionee the right to continue in the employ of the Company,
any Subsidiary or any Affiliate or to be entitled to any remuneration or
benefits not set forth herein or in any such other agreement or
(ii) interfere with or limit in any way the right of the Company or any
such Subsidiary or Affiliate to terminate Optionee's employment.
10.Optionee agrees, in connection with the Option, to make appropriate
arrangements with the Company or his employer for satisfaction of any
applicable federal, state or local income tax withholding requirements or
social security requirements.
11.The Agreement and these Terms and Conditions shall be binding upon and
inure to the benefit of any successor or successors of the Company.
12.The interpretation, performance, and enforcement of the Stock Option
Agreement and these Terms and Conditions shall be governed by the laws of
the State of Delaware.
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