This excerpt taken from the ZBRA 10-Q filed Apr 30, 2008.
Vesting of Restricted Stock.
Period of Restriction. The Restricted Stock shall be forfeitable and non-transferable during the Period of Restriction. The Period of Restriction with respect to the Restricted Stock shall begin on the Grant Date and shall end on September 4, 2012; provided, however, the Period of Restriction will lapse in accordance with the following schedule:
twenty-five percent (25%) of the Restricted Stock shall vest (and the restrictions on nontransferability shall lapse on such Restricted Stock) if at any time during the Period of Restriction the average of the Total Shareholder Return (as hereinafter defined) measured over any forty-five (45) consecutive trading-days is at least sixty percent (60%); and
the final seventy-five percent (75%) of the Restricted Stock shall vest (and the restrictions on nontransferability shall lapse on such Restricted Stock) if at any time during the Period of Restriction the average of the Total Shareholder Return measured over any forty-five (45) consecutive trading-days, is at least one hundred percent (100%).
If the average of the Total Shareholder Return measured over any forty-five consecutive trading-day period is between sixty percent (60%) and one hundred percent (100%), then the Participant shall vest in the Restricted Stock in the aggregate (which Vested Percentage shall include the 25% reflected in subparagraph (i), above), as follows (rounded to the nearest whole share):
Except as otherwise provided for under this Stock Agreement or under the Employment Agreement between the Company and the Participant effective as of March 17, 2008 (the Employment Agreement), the Participant must remain employed continuously through each applicable vesting date. Any Restricted Stock which is unvested at the expiration of the Period of Restriction as a result of the failure to attain the required Total Shareholder Return shall immediately be forfeited to the Company.
Total Shareholder Return shall be equal to (i) the fair market value of a share of the Companys Common Stock as reported on The NASDAQ Stock Market as of the close of business on any particular date minus $36.80 plus aggregate dividends paid on a share of the Companys Common Stock since September 4, 2007, divided by (ii) $36.80.
The Committee shall make or authorize to be made an adjustment to the foregoing formula for Total Shareholder Return to prevent dilution or enlargement of the Total Shareholder Return, as a result of the following: (1) any adjustment, recapitalization, reorganization or other changes in the Companys capital structure or its business; (2) any merger or consolidation of the Company (other than a Change in Control); (3) any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Companys common stock or the rights thereof; (4) the dissolution or liquidation of the Company; (5) any sale or transfer of all or any part of the Companys assets or business; or (6) any other corporate act or proceeding, whether of a similar character or otherwise.
Vesting Exceptions. Notwithstanding the provisions of Section 2(a) hereof, a Participants unvested Restricted Stock shall be subject to the following additional vesting rules in the following circumstances:
Termination of Employment. Except as provided in Section 2(b)(ii), in the event the Participants employment with the Company and/or any Subsidiary is terminated for any reason, any unvested Restricted Stock as of the date of the Participants termination of employment shall immediately be forfeited to the Company.
Change in Control Termination of Employment. Subject to the provisions of Section 15 of the Plan, in the event a Change in Control occurs during the Period of
Restriction and the Participants employment is terminated by the Company and/or any Subsidiary without Cause or is terminated by the Participant for Good Reason during the period beginning 120 days before and ending one (1) year after such Change in Control, any Restricted Stock which is unvested as of the date of the Change in Control shall be accelerated upon such a termination of employment and shall vest as follows:
Cause and Good Reason shall have the respective meanings assigned to such terms in the Employment Agreement.