EXHIBIT 10.6
INVESCO LTD.
2008 GLOBAL EQUITY INCENTIVE
PLAN
(Amended and Restated Effective
February 1, 2009)
The purpose of the Plan is to give
the Company a competitive advantage in attracting, retaining and
motivating officers, employees, directors and/or consultants and to
provide the Company and its Subsidiaries and Affiliates with a
long-term incentive plan providing incentives directly linked to
Shareholder value. Certain terms used herein have definitions given
to them in the first place in which they are used.
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For purposes of the Plan, the following terms
are defined as set forth below:
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“Affiliate” means a corporation or other entity controlled
by, controlling or under common control with, the
Company.
“Applicable
Exchange” means the
New York Stock Exchangeor such other securities exchange as may at
the applicable time be the principal market for the
Shares.
“Award”
means an Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit or Other Stock-Based
Award granted pursuant to the terms of the Plan.
“Award
Agreement” means a
written document or agreement setting forth the terms and
conditions of a specific Award.
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“Board” means the Board of Directors of the
Company.
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“Cause”
means, with respect to a
Participant, unless otherwise provided in an Award Agreement, (i)
if such Participant is at the time of a Termination of Service a
party to an Individual Agreement at the time of the Termination of
Service which defines such term (or word(s) of similar meaning),
the meaning given in such Individual Agreement or (ii) if there is
no such Individual Agreement or if it does not define Cause (or
word(s) of similar meaning): (A) commission of (1) a felony (or its
equivalent in a non-United States jurisdiction) or (2) other
conduct of a criminal nature that has or is likely to have an
adverse effect on the reputation or standing in the community of
the Company or an Affiliate or that legally prohibits the
Participant from working for the Company and its Affiliates; (B)
breach by the Participant of a regulatory rule that adversely
affects the Participant’s ability to perform the
Participant’s principal employment duties to the Company and
its Affiliates; or (C) deliberate failure on the part of the
Participant (1) to perform the Participant’s principal
employment duties, (2) to comply with the material policies of the
Company and its Affiliates, (3) to follow specific reasonable
directions
received from the Company and its Affiliates or
(4) to comply in all material respects with covenants contained in
any Individual Agreement or Award Agreement to which the
Participant is a party. With respect to a Participant’s
termination of directorship, “Cause” shall include only
an act or failure to act that constitutes cause for removal of a
director under the Company’s Bye-Laws.
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“Change in Control”
means any of the following
events:
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(i) the acquisition by
any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of twenty-five percent (25%) or
more of either (A) the then outstanding shares of the Company (the
“Outstanding Company Shares”) or (B) the combined
voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”);
provided , however , that for purposes of this subsection (i), the
following acquisitions shall not constitute a Change in Control:
(1) any acquisition directly from the Company; (2) any acquisition
by the Company; (3) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company; or (4) any acquisition
pursuant to a transaction which complies with clauses (A), (B) and
(C) of subsection (iii) below; or
(ii) individuals who, as of February
1, 2008, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the
Board; provided
, however , that any individual becoming a director
subsequent to February 1, 2008 whose election, or nomination for
election by the Company’s Shareholders, was approved by a
vote of at least two-thirds (2/3) of the directors then comprising
the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or
(iii) consummation of a
reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the
Company or the acquisition of assets of another entity (each, a
“Corporate Transaction”), in each case, unless,
following such Corporate Transaction, (A) all or substantially all
of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Shares and Outstanding
Company Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more than
fifty percent (50%) of, respectively, the then outstanding shares
and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors,
as the case may be, of the corporation or other entity resulting
from such Corporate Transaction (including, without limitation, a
corporation which as a result of such transaction owns
the Company or all or substantially
all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction of the
Outstanding Company Shares and Outstanding Company Voting
Securities, as the case may be, (B) no Person (excluding any
employee benefit plan or related trust of the Company or such
corporation resulting from such Corporate Transaction) beneficially
owns, directly or indirectly, twenty-five percent (25%) or more of,
respectively, the then outstanding shares of the corporation
resulting from such Corporate Transaction or the combined voting
power of the then outstanding voting securities of such corporation
except to the extent that such ownership existed prior to the
Corporate Transaction and (C) at least a majority of the members of
the board of directors of the corporation (or other governing board
of a non-corporate entity) resulting from such Corporate
Transaction were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board,
providing for such Corporate Transaction; or
(iv) approval by the Shareholders of
the Company of a complete liquidation or dissolution of the
Company.
“Code”
means the Internal Revenue Code of
1986, as amended from time to time, and any successor thereto, the
Treasury Regulations thereunder and other relevant interpretive
guidance issued by the Internal Revenue Service or the Treasury
Department. Reference to any specific section of the Code shall be
deemed to include such regulations and guidance, as well as any
successor provision of the Code.
“Committee” means a committee or subcommittee of the Board
appointed from time to time by the Board, which committee or
subcommittee shall consist of two or more non-employee directors,
each of whom is intended to be, to the extent required by Rule
16b-3 of the Exchange Act, a “non-employee director” as
defined in Rule 16b-3 of the Exchange Act and, to the extent
required by Section 162(m) of the Code, an “outside
director” as defined under Section 162(m) of the Code. If at
any time such a Committee has not been so designated, the
Compensation Committee of the Board shall constitute the Committee,
or if there shall be no Compensation Committee of the Board, the
Board shall constitute the Committee, and all references herein to
the Committee shall be deemed to be references to the
Board.
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“Company” means Invesco Ltd., a Bermuda exempted
company.
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“Disability” means, with respect to a Participant, unless
otherwise provided in an Award Agreement, (i) a
“disability” (or words of similar meaning) as defined
in any Individual Agreement to which the Participant is a party or
(ii) if there is no such Individual Agreement or it does not define
“disability” (or words of similar meaning), (A) a
permanent and total disability as determined under the
Company’s long-term disability plan applicable to the
Participant or (B) if there is no such plan applicable to the
Participant, “Disability” as determined by the
Committee. The Committee may require such medical or other evidence
as it deems necessary to judge the nature and permanency of the
Participant’s condition. Notwithstanding the
foregoing, with respect to an Incentive Stock
Option, “Disability” shall mean a “Permanent and
Total Disability” as defined in Section 22(e)(3) of the Code
and, with respect to any Award that constitutes a
“nonqualified deferred compensation plan” within the
meaning of Section 409A of the Code, “Disability” shall
mean “disability” as defined under Section 409A of the
Code.
“Disaffiliation”
means a Subsidiary’s,
Affiliate’s or division’s ceasing to be a Subsidiary,
Affiliate or division for any reason (including, without
limitation, as a result of a public offering, or a spinoff or sale
by the Company, of the stock of the Subsidiary or Affiliate or a
sale of a division of the Company and its Affiliates).
“Eligible
Individuals” means
non-employee directors, officers, employees and consultants of the
Company or any of its Subsidiaries or Affiliates, and prospective
officers, employees and consultants who have accepted offers of
employment or consultancy from the Company or its Subsidiaries or
Affiliates.
“Exchange
Act” means the
Securities Exchange Act of 1934, as amended from time to time, and
any successor thereto. Reference to any specific section of the
Exchange Act shall be deemed to include such regulations and
guidance issued thereunder, as well as any successor provision of
the Exchange Act.
“Fair Market
Value” means,
unless otherwise determined by the Committee, the closing price of
a Share on the Applicable Exchange as reported by such Applicable
Exchange on the date of measurement or, if Shares were not traded
on the Applicable Exchange on such measurement date, then on the
next preceding date on which Shares were traded, all as reported by
such source as the Committee may select. If the Shares are not
listed on a national securities exchange, Fair Market Value shall
be determined by the Committee in its good faith
discretion.
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“Free-Standing SAR”
has the meaning set forth in Section
6(c).
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“Good
Reason” means, with
respect to a Participant, unless otherwise provided in an Award
Agreement, during the 24-month period following a Change in
Control, actions taken by the Company or its Affiliate resulting in
a material negative change in the employment relationship of the
Participant who is an officer or an employee including, without
limitation:
(i) the assignment to the
Participant of duties materially inconsistent with the
Participant’s position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities, or
a material diminution in such position, authority, duties or
responsibilities, in each case from those in effect immediately
prior to the Change in Control;
(ii) a material
reduction of the Participant’s aggregate annual compensation,
including, without limitation, base salary and annual bonus, from
that in effect immediately prior to the Change in
Control;
(iii) a change in the
Participant’s principal place of employment that increases
the Participant’s commute by 40 miles or materially increases
the time of the Participant’s commute as compared to the
Participant’s commute immediately prior to the Change in
Control; or
(iv) any other action or
inaction that constitutes a material breach by the Company or an
Affiliate of any Individual Agreement.
In order to invoke a Termination of Service for
Good Reason, a Participant must provide written notice to the
Company or Affiliate with respect to which the Participant is
employed or providing services of the existence of one or more of
the conditions constituting Good Reason within ninety (90) days
following the Participant’s knowledge of the initial
existence of such condition or conditions, specifying in reasonable
detail the conditions constituting Good Reason, and the Company
shall have thirty (30) days following receipt of such written
notice (the “Cure Period”) during which it may remedy
the condition. In the event that the Company or Affiliate fails to
remedy the condition constituting Good Reason during the applicable
Cure Period, the Participant’s “separation from
service” (within the meaning of Section 409A of the Code)
must occur, if at all, within two (2) years following such Cure
Period in order for such termination as a result of such condition
to constitute a Termination of Service for Good Reason.
“Grant
Date” means (i) the
date on which the Committee by resolution selects an Eligible
Individual to receive a grant of an Award and determines the number
of Shares to be subject to such Award or (ii) such later date as
the Committee shall provide in such resolution.
“Incentive Stock
Option” means any
Option that is designated in the applicable Award Agreement as an
“incentive stock option” within the meaning of Section
422 of the Code, and that in fact so qualifies.
“Individual
Agreement” means a
written employment, consulting or similar agreement between a
Participant and the Company or one of its Subsidiaries or
Affiliates.
“ISO Eligible
Employees” means an
employee of the Company, any subsidiary corporation (within the
meaning of Section 424(f) of the Code) or parent corporation
(within the meaning of Section 424(e) of the Code).
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“Nonqualified Option”
means any Option that is not an
Incentive Stock Option.
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“Option”
means an Incentive Stock Option or
Nonqualified Option granted under Section 6.
“Other Stock-Based
Award” means Awards
of Shares and other Awards that are valued in whole or in part by
reference to, or are otherwise based upon, Shares, including
(without limitation), unrestricted stock, dividend equivalents and
convertible debentures.
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“Participant”
means an Eligible Individual to whom
an Award is or has been granted.
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“Performance
Goals” means the
performance goals established by the Committee in connection with
the grant of Awards. In the case of Qualified Performance-Based
Awards, (i) such goals shall be based on the attainment of
specified levels of one or more of the following measures with
regard to the Company (or a Subsidiary, division, or other
operational unit of the Company): operating revenues, annual
revenues, net revenues, clients’ assets under management
(“AUM”), gross sales, net sales, net asset flows,
revenue weighted net asset flows, cross selling of investment
products across regions and distribution channels, investment
performance by account or weighted by AUM (relative and absolute
performance), investment performance ratings as measured by
recognized third parties, risk adjusted investment performance
(information ratio, sharpe ratio), expense efficiency ratios,
expense management, operating margin, and net operating margin, net
revenue yield on AUM, client redemption rates and new account wins
and size of pipeline, market share, customer service measures or
indices, success of new product launches as measured by revenues,
asset flows, AUM, and investment performance, profit margin,
operating profit margin, earnings (including earnings before taxes,
earnings before interest and taxes or earnings before interest,
taxes, depreciation and amortization), earnings per share, diluted
earnings per share growth, operating income, pre- or after-tax
income, net income, free cash flow (operating cash flow less
capital expenditures), cash flow per share, return on equity (or
return on equity adjusted for goodwill), return on capital
(including return on total capital or return on invested capital),
return on investment, stock price appreciation, total shareholder
return (measured in terms of stock price appreciation and dividend
growth), cost control, business expansion or consolidation,
diversification of AUM by investment objectives, growth in global
position (AUM domiciled outside of United States), diversified
distribution channels, successful integration of acquisitions,
market value of a business or group based on independent
third-party valuation, or change in working capital, and (ii) such
Performance Goals shall be set by the Committee within the time
period prescribed by Section 162(m) of the Code.
“Performance
Period” means that
period established by the Committee during which any Performance
Goals specified by the Committee with respect to such Award are to
be measured.
“Plan”
means this Invesco Ltd. 2008 Global
Equity Incentive Plan, as set forth herein and as hereafter amended
from time to time.
“Qualified
Performance-Based Award” means an Award intended to qualify for the
Section 162(m) Exemption, as provided in Section 11.
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“Restricted Stock”
means an Award granted under
Section 7.
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“Restricted Stock Unit”
means an Award granted under Section
8.
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“Restriction
Period” means, with
respect to Restricted Stock and Restricted Stock Units, the period
commencing with the date of such Restricted Stock Award for which
vesting
restrictions apply and ending upon the
expiration of the applicable vesting conditions and/or the
achievement of the applicable Performance Goals (it being
understood that the Committee may provide that restrictions shall
lapse with respect to portions of the applicable Award during the
Restriction Period).
“Retirement” means, unless otherwise provided in the Award
Agreement, the Participant’s Termination of Service other
than for Cause after the attainment of age fifty-five (55) and (i)
with respect to any Award with a Grant Date prior to February 1,
2009, at least five years of service, and (ii) with respect to any
Award with a Grant Date on or after February 1, 2009, at least ten
years of service,.
“Section 162(m)
Exemption” means
the exemption from the limitation on deductibility imposed by
Section 162(m) of the Code that is set forth in Section
162(m)(4)(C) of the Code.
“Share”
or “Shares” means common shares, par value $0.20 each, of
the Company or such other equity securities that may become subject
to an Award.
“Shareholder”
has the same meaning as the term
“Member” in the Companies Act 1981 of
Bermuda.
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“Stock Appreciation
Right” means an
Award granted under Section 6(c).
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“Subsidiary” means any corporation, partnership, joint
venture, limited liability company or other entity during any
period in which at least a fifty percent (50%) voting or profits
interest is owned, directly or indirectly, by the Company or any
successor to the Company.
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“Tandem SAR” has the meaning set forth in Section
6(c).
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“Ten Percent
Shareholder” means
a person owning shares possessing more than ten percent (10%) of
the total combined voting power of all classes of shares of the
Company, any subsidiary corporation (within the meaning of Section
424(f) of the Code) or parent corporation (within the meaning of
Section 424(e) of the Code).
“Term”
means the maximum period during
which an Option or Stock Appreciation Right may remain outstanding
as specified in the applicable Award Agreement.
“Termination of
Service” means the
termination of the Participant’s employment or consultancy
with, or performance of services (including as a director) for, the
Company and any of its Subsidiaries or Affiliates. Unless otherwise
determined by the Committee, (i) if a Participant’s
employment with the Company and its Affiliates terminates but such
Participant continues to provide services to the Company and its
Affiliates in a non-employee capacity, such change in status shall
not be deemed a Termination of Service and (ii) a Participant
employed by, or performing services for, a Subsidiary or an
Affiliate or a division of the Company shall be
deemed to incur a Termination of
Service if, as a result of a Disaffiliation, such Subsidiary,
Affiliate, or division ceases to be a Subsidiary, Affiliate or
division, as the case may be, and the Participant does not
immediately thereafter become an employee of, or service provider
for, the Company or another Subsidiary or Affiliate. Temporary
absences from employment because of illness, vacation or leave of
absence and transfers among the Company and its Subsidiaries and
Affiliates shall not be considered Terminations of Employment. With
respect to any Award that constitutes a “nonqualified
deferred compensation plan” within the meaning of Section
409A of the Code, “Termination of Service” shall mean a
“separation from service” as defined under Section 409A
of the Code.
(a)
Committee . The Plan shall be administered by the Committee.
The Committee shall, subject to Section 11, have plenary authority
to grant Awards pursuant to the terms of the Plan to Eligible
Individuals. Among other things, the Committee shall have the
authority, subject to the terms and conditions of the
Plan:
(i) to select the
Eligible Individuals to whom Awards may from time to time be
granted;
(ii) to determine whether and to
what extent Incentive Stock Options, Nonqualified Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Units, Other Stock-Based Awards, or any combination
thereof, are to be granted hereunder;
(iii) to determine the number of
Shares to be covered by each Award granted hereunder;
(iv) to determine the terms and
conditions of each Award granted hereunder, based on such factors
as the Committee shall determine;
(v) subject to Sections 11 and
12, to modify, amend or adjust the terms and conditions of any
Award;
(vi) to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan
as it shall from time to time deem advisable;
(vii) to interpret the terms
and provisions of the Plan and any Award issued under the Plan (and
any Award Agreement relating thereto);
(viii) subject to Section 11, to
accelerate the vesting or lapse of restrictions of any outstanding
Award, based in each case on such considerations as the Committee
in its sole discretion determines;
(ix) to decide all other matters to
be determined in connection with an Award;
(x) to determine whether, to
what extent and under what circumstances cash, Shares and 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 Participant;
(xi) to establish any
“blackout” period that the Committee in its sole
discretion deems necessary or advisable;
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(xii)
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to otherwise administer the Plan; and
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(xiii) solely to
the extent permitted under applicable law and Section 11, to
delegate any of its authority to administer the Plan to any person
or persons selected by the Committee and such person or persons
shall be deemed to be the Committee with respect to, and to the
extent of, its or their authority.
(i) The Committee may act
only by a majority of its members then in office, except that the
Committee may, except to the extent prohibited by applicable law or
the listing standards of the Applicable Exchange and subject to
Section 11, allocate all or any portion of its responsibilities and
powers to any one or more of its members and may delegate all or
any part of its responsibilities and powers to any person or
persons selected by it.
(ii) Subject to Section 11(c),
any authority granted to the Committee may also be exercised by the
full Board. To the extent that any permitted action taken by the
Board conflicts with action taken by the Committee, the Board
action shall control.
(c)
Discretion of Committee . Any determination made by the
Committee or an appropriately delegated person or persons with
respect to the Plan or any Award shall be made in the sole
discretion of the Committee or such delegate, unless in
contravention of any express term of the Plan, including, without
limitation, any determination involving the appropriateness or
equitableness of any action. All decisions made by the Committee or
any appropriately delegated person or persons shall be final and
binding on all persons, including the Company, Participants and
Eligible Individuals. Notwithstanding the foregoing, following a
Change in Control, any determination by the Committee as to whether
“Cause” exists shall be subject to
de novo review.
(d)
Cancellation or Suspension . Subject to Section 6(e), the
Committee or an appropriately delegated person or persons shall
have full power and authority to determine whether, to what extent
and under what circumstances any Award shall be canceled or
suspended. In particular, but without limitation, all outstanding
Awards to any Participant may be canceled if the Participant,
without the consent of the Committee, while employed by, or
providing services to, the Company or after a Termination of
Service, becomes associated with, employed by, renders services to,
or owns any interest in (other than any nonsubstantial interest, as
determined by the Committee or any appropriately delegated person
or persons), any business
that is in competition with the
Company or its Affiliates or with any business in which the Company
or its Affiliates has a substantial interest, as determined by the
Committee or any appropriately delegated person or
persons.
(e)
Award Agreements. The
terms and conditions of each Award, as determined by the Committee,
shall be set forth in a written (or electronic) Award Agreement,
which shall be delivered to the Participant receiving such Award
upon, or as promptly as is reasonably practicable following, the
grant of such Award. Unless otherwise specified by the Committee,
in its sole discretion, or otherwise provided in the Award
Agreement, the effectiveness of an Award shall be subject to the
Award Agreement’s being signed or otherwise accepted by the
Company and the Participant receiving the Award (including by
electronic delivery). Award Agreements may be amended only in
accordance with Section 12.
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4.
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Shares Subject to Plan
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(a)
Plan Maximums. The
maximum number of Shares that may be issued pursuant to Awards
under the Plan shall be (i) 20,000,000, plus (ii) a number of
Shares subject to outstanding equity awards granted prior to the
Effective Date of the Plan under other equity plans or programs of
the Company and its Affiliates to the extent such Shares are
forfeited under such other plans, but not to exceed 10,000,000
Shares. The maximum number of Shares that may be issued pursuant to
Options intended to be Incentive Stock Options shall be 6,000,000
Shares.Shares subject to an Award under the Plan may be authorized
and unissued Shares or Shares held by the Company as treasury
shares.
(b)
Individual Limits . No Participant may be granted Awards as
Qualified Performance-Based Awards covering in excess of 2,000,000
Shares during any calendar year.
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(c)
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Rules for Calculating Shares
Delivered .
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(i) To the extent that
any Award is forfeited or terminates, expires or lapses without
being exercised, or that any Award is settled for cash, the Shares
subject to such Awards not delivered as a result thereof shall not
be deemed to have been delivered for purposes of the limits set
forth in Section 4(a).
(ii) If the exercise price and/or
the tax withholding obligations relating to any Award are satisfied
by delivering Shares to the Company (by either actual delivery or
by attestation), only the number of Shares issued net of the Shares
delivered or attested to shall be deemed issued for purposes of the
limits set forth in Section 4(a). To the extent any Shares subject
to an Award are withheld to satis