Exhibit 10.26 to 2005 10-K
PERFORMANCE-BASED RESTRICTED
STOCK UNIT AWARD
UNDER THE PROVISIONS
OF
THE CONVERGYS
CORPORATION
1998 LONG TERM INCENTIVE PLAN, AS
AMENDED
Pursuant to the provisions of the
Convergys Corporation 1998 Long Term Incentive Plan, as amended
(the “Plan”), the Compensation and Benefits Committee
of the Board of Directors of Convergys Corporation (the
“Compensation Committee”) has granted you a
performance-based restricted stock unit award, on and subject to
the terms of the Plan and your agreement to the following terms,
conditions and restrictions.
1. Delivery of Shares .
Subject to and upon the terms, conditions, and restrictions set
forth in this Agreement, Convergys Corporation (the
“Company”) shall deliver to you the number of common
shares, without par value, of Convergys Corporation (the
“Shares”) determined in accordance with the provisions
of Section 2 below, which delivery of Shares shall occur as
soon as administratively practicable following the vest date(s) (as
defined below).
2. Performance Criteria . You
are eligible to earn the right to receive a number of Shares based
on (a) the Company’s Total Shareholder Return
(“TSR”) over any three consecutive calendar year period
occurring during the six year period commencing January 1,
XXXX (each such three consecutive year period being referred to
herein as a “performance period” and the last day of
each such performance period being referred to herein as a
“vest date”) relative to the TSR of the following
companies:
________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________
(other than, for any performance
period, any company in such peer group that ceases to exist prior
to the last day of the applicable performance period due to merger,
bankruptcy, disposition, acquisition or other corporate event)
(collectively, the “Peer Group”) over the same
period(s) and (b) the payout schedule provided to you
separately (the “Payout Schedule”). In the event that
the number of companies in the Peer Group as of the end of the
applicable performance period is less than XX, the Peer Group used
for purposes of this award shall consist of
___________________________________________________________________________________________________________
____________________________________________________________________________________.
In no event shall more Shares than the maximum number listed in
your Payout Schedule be delivered to you or on your behalf pursuant
to this award.
“TSR” means stock price
appreciation plus dividend yield, assuming immediate reinvestment
of dividends in the stock with respect to which such dividends were
paid, over the term of the applicable performance period. Stock
price appreciation over the term of the applicable performance
period for a company will be determined by comparing (c) the
average close price as reported in the Wall Street Journal of the
stock of the applicable company for each trading day occurring
during the calendar quarter ending on the day immediately preceding
the start of the applicable performance period to (d) the
average close price as reported in the Wall Street Journal of the
stock of the applicable company for each trading day occurring
during the calendar quarter ending on the last day of the
applicable performance period.
The number of Shares earned at the
end of each applicable performance period will be delivered as soon
as administratively practicable following the end of such
performance period. If less than the maximum number of Shares
indicated on the Payout Schedule is paid out based on the
performance results for the first performance period, you will have
an opportunity to earn payout of the remaining Shares in a
subsequent performance period, if any. However, in order for
additional Shares to be paid out at the
Page 1 of 5
Exhibit 10.26 to 2005 10-K
end of performance periods occurring
after the initial performance period, the Company’s level of
achievement of the performance criteria for the applicable
performance period must exceed its level of achievement in all
prior performance periods.
3. Forfeiture of Award
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a.
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Your right to
receive Shares that are the subject of this award that have not yet
been delivered, shall be forfeited automatically and without
further notice if you cease to be an employee of the Company and
its affiliates prior to any vest date for any reason other than
death, disability, retirement or involuntary termination without
cause. For purposes of this Agreement:
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(i)
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“disability” has the same meaning as
in the Company’s long-term disability plan;
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(ii)
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“retirement” means termination of
employment after (I) attaining age 55 and completing at least
ten years of service with the Company or any of its subsidiaries or
(II) completing thirty years of service with the Company or any of
its subsidiaries; and
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(iii)
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“cause” means a determination by the
Company that you have been involved in fraud, misappropriation,
embezzlement, commission of a crime or an act of moral turpitude,
or have violated the Code of Business Conduct, recklessly or
willfully injured an employee, company property, business, or
reputation, or have acted recklessly in the performance of your
duties.
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Your right to receive Shares that
are the subject of this award shall be forfeited automatically and
without further notice if you cease to be an employee of the
Company and its affiliates during the calendar year in which this
Award is granted to you due to death or involuntary termination
without cause.
Subject to Section 4(c), if
your employment is involuntarily terminated without cause after the
calendar year in which this award is granted to you, your right to
earn Shares that are the subject of this award based on the
Company’s level of satisfaction of the applicable performance
criteria for performance periods ending after the date of your
termination shall be forfeited automatically and without further
notice.
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b.
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If the Company
determines that you engaged in any Detrimental Activity during your
employment with Convergys Corporation or during the two-year period
following the termination of such employment for any reason,
(i) to the extent all or some of the Shares subjec
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