Exhibit
10.4
AKAMAI TECHNOLOGIES,
INC.
Restricted Stock Unit
Agreement
Granted Under the 2006 Stock
Incentive Plan
This Agreement evidences the grant
by Akamai Technologies, Inc., a Delaware corporation (the
“Company”), on January 29, 2008 (the “Grant
Date”) to you (the “Participant”) of
restricted stock units of the Company (individually, an
“RSU” and collectively, the “RSUs”),
subject to the terms and conditions set forth in this Agreement and
the Akamai Technologies, Inc. 2006 Stock Incentive Plan (the
“Plan”). Each RSU represents the right to receive one
share of the common stock, par value $.01 per share, of the Company
(“Common Stock”) as provided in this Agreement. The
shares of Common Stock that are issuable upon vesting of the RSUs
are referred to in this Agreement as “Shares.”
Capitalized terms used but not defined in this Agreement shall have
the meanings specified in the Plan.
Subject to the terms and conditions
of this Agreement and provided that the Participant continues to
provide services until the Vesting Date (as defined
below):
(a) This award shall
vest:
(i) as to one-third of the original
number of RSUs on the second business day following the date on
which the Company releases its earnings results for 2009 in the
event that the Company achieved the following revenue and
normalized earnings per share (“Normalized EPS”)
metrics during 2009:
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Normalized EPS
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$
million
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$
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(ii) as to one-third of the original
number of RSUs on the second business day following the date on
which the Company releases its earnings results for 2010 in the
event that the Company achieved the revenue and Normalized EPS
metrics for 2010 established by the Board (or a committee thereof)
in early 2010.
(iii) as to one-third of the
original number of RSUs on the second business day following the
date on which the Company releases its earnings results for 2011 in
the event that the Company achieved the revenue and Normalized EPS
metrics for 2011 established by the Board (or a committee thereof)
in early 2011.
“Normalized EPS” shall
mean shall mean the Company’s annual earnings per diluted
share for the applicable fiscal year excluding amortization of
intangible assets, equity-related compensation, restructuring
charges and benefits, certain gains and losses on equity
investments, loss on early extinguishment of debt, utilization of
tax NOLs/credits, release of deferred tax assets and similar items
excluded by the Company in determining normalized earnings per
share in issuing its earnings announcement for such fiscal
year.
Each of the dates on which RSUs vest
may be referred to herein as a “Vesting Date.” If the
Company does not meet the applicable revenue and Normalized EPS
metrics during a fiscal year, the 33% of RSUs eligible for vesting
in connection therewith shall be forfeited.
(b) Except as otherwise provided in
this Section 2, RSUs shall not continue to vest unless the
Participant is, and has been at all times since the Grant Date, an
employee, officer or director of, or consultant or advisor to, the
Company.
(c) In the event that the
Participant’s employment with the Company ceases or is
terminated for any reason, including by reason of death or
disability, other than “Cause” (as defined below), then
the number of RSUs which shall be vested shall be the number that
are vested as of the date of actual termination. For purposes of
this Section 2, “Cause” shall mean unsatisfactory
job performance (as determined by the Company), willful misconduct,
fraud, gross negligence, disobedience or dishonesty. In the event
that the Participant’s employment with the Company is
terminated for Cause, all unvested RSUs shall be forfeited
effective as of the date of termination.
(d) For purposes of this Agreement,
employment with the Company shall include employment with a parent,
subsidiary, affiliate or division of the Company.
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3.
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Distribution
of Shares .
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(a) The Company will distribute to
the Participant (or to the Participant’s estate in the event
that his or her death occurs after a Vesting Date but before
distribution of the corresponding Shares), the Shares of Common
Stock represented by RSUs that vest on each Vesting Date as soon as
administratively practicable after such Vesting Date (each such
date of distribution is hereinafter referred to as a
“Settlement Date”) but in any event within the period
ending on the later to occur of the date that is two and one-half
months from the end of (i) Participant’s tax year that
includes the applicable Vesting Date or (ii) the
Company’s tax year that includes the applicable Vesting
Date.
(b) The Company shall not be
obligated to issue to the Participant the Shares upon the vesting
of any RSU (or otherwise) unless the issuance and delivery of such
Shares shall comply with all relevant provisions of law and other
legal requirements including, without limitation, any applicable
federal or state securities laws and the requirements of any stock
exchange upon which shares of Common Stock may then be
listed.
(c) Neither the Company nor the
Participant shall have the right to accelerate or defer the deliver
of any shares under this Agreement except to the extent
specifically permitted under Section 409A of the Internal
Revenue Code of 1986, as amended.
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4.
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Restrictions
on Transfer .
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The Participant shall not sell,
assign, transfer, pledge, hypothecate or otherwise dispose of, by
operation of law or otherwise (collectively “transfer”)
any RSUs, or any interest therein, except by will or the laws of
descent and distribution.
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5.
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Dividend and
Other Shareholder Rights .
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Except as set forth in the Plan,
neither the Participant nor any person claiming under or through
the Participant shall be, or have any rights or privileges of, a
stockholder of the Company in respect of the Shares issuable
pursuant to the RSUs granted hereunder until the Shares have been
delivered to the Participant.
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6.
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Provisions
of the Plan; Acquisition Event or Change in Control
Event .
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(a) This Agreement is subject to the
provisions of the Plan, a copy of which is made available to the
Participant with this Agreement.
(b) Upon the occurrence of an
Acquisition Event (as defined in the Plan) that is not a Change in
Control Event (as defined in the Plan), each RSU (whether vested or
unvested) shall inure to the benefit of the Company’s
successor and shall apply to the cash, securities or other property
which the Common Stock was converted into or exchanged for pursuant
to such Acquisition Event in the same manner and to the same extent
as they applied to the Common Stock subject to such RSU.
(c) Upon the occurrence of a Change
in Control Event (regardless of whether such event also constitutes
an Acquisition Event), each RSU shall become exercisable,
realizable or vested as to such number of RSUs as would be vested
pursuant to Section 2(a) as though the Grant Date were the
date that is one year prior to the Grant Date and all performance
targets on which vesting in contingent have been
achieved.
(a) Regardless of any action the
Company or the Participant’s employer
(“Employer”) takes with respect to any or all income
tax, social insurance, payroll tax, payment on account or other
tax-related withholding (“Tax-Related Items”), the
Participant acknowledges that the ultimate liability for all
Tax-Related Items legally due by him or her is and remains the
Participant’s responsibility and that the Company and/or the
Employer (1) make no representations or undertakings regarding
the treatment of any Tax-Rel