Exhibit 10.2
Form of Employee Stock
Subscription Agreement
This Employee Stock Subscription
Agreement, dated as of
,
20 , between ServiceMaster Global
Holdings, Inc., a Delaware corporation, and the employee whose
name appears on the signature page hereof, is being entered
into pursuant to the ServiceMaster Global Holdings, Inc. Stock
Incentive Plan. The meaning of each capitalized term may be
found in Section 10.
The Company and the Employee hereby
agree as follows:
Section 1.
Purchase and Sale of Common Stock .
(a)
In General . Subject to all of the terms of this
Agreement, at the Closing the Employee shall purchase, and the
Company shall sell, the aggregate number of shares of Common Stock
set forth on the signature page hereof (the “
Shares ”), at the purchase price set forth on the
signature page hereof (the “ Initial Purchase
Price ”). Such Shares constitute “ Initial
Shares ” (as defined in the Employment Agreement).
The terms of this Agreement shall also apply to any “
Additional Shares ” (as defined in the Employment
Agreement, if any Additional Shares are purchased by the
Employee).
(b)
Condition to Sale . Notwithstanding anything in this
Agreement to the contrary, the Company shall have no obligation to
sell any Common Stock to any person who is not an employee of the
Company or any of its Subsidiaries at the time that such shares of
Common Stock are to be sold or who is a resident of a jurisdiction
in which the sale of Common Stock to him would constitute a
violation of the securities, “blue sky” or other laws
of such jurisdiction.
Section 2.
The Closing .
(a)
Time and Place . The Company shall determine the time
and place of the closing of the purchase and sale of the Shares
(the “ Closing ”).
(b)
Delivery by the Employee . At the Closing, the
Employee shall deliver to the Company the aggregate Initial
Purchase Price for the Shares.
(c)
Delivery by the Company . At the Closing, the Company
shall register the Shares in the name of the Employee. If the
Shares are certificated, any certificates relating to the Shares
shall be held by the Secretary of the Company or his designee on
behalf of the Employee.
Section 3.
Employee’s Representations and Warranties .
(a)
Access to Information, Etc. The Employee
represents, warrants and covenants as follows:
(i)
the Employee has carefully reviewed the materials furnished to the
Employee in connection with the offer and sale of the Shares
pursuant to this Agreement;
(ii) the
Employee has had an adequate opportunity to consider whether or not
to purchase any of the shares of Common Stock offered to the
Employee, and to discuss such purchase with the Employee’s
legal, tax and financial advisors;
(iii)
the Employee understands the terms and conditions that apply to the
Shares and the risks associated with an investment in the
Shares;
(iv)
the Employee has a good understanding of the English
language;
(v) the
Employee is, and will be at the Closing, an officer or employee of
the Company or one of its Subsidiaries; and
(vi)
the Employee is, and will be at the Closing, a resident of the
jurisdiction indicated as his or her address set forth on the
signature page of this Agreement.
(b)
Ability to Bear Risk . The Employee represents and
warrants as follows:
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(i)
the Employee understands that the rights of first refusal and other
transfer restrictions that apply to the Shares may effectively
preclude the transfer of any of the Shares prior to a Public
Offering;
(ii) the
financial situation of the Employee is such that he or she can
afford to bear the economic risk of holding the Shares for an
indefinite period;
(iii)
the Employee can afford to suffer the complete loss of his or her
investment in the Shares; and
(iv)
the Employee understands that the Company’s Financing
Agreements may restrict the ability of the Company to repurchase
the Shares pursuant to Section 5 and that the Company and its
Subsidiaries may enter into or amend, refinance or enter into new
Financing Agreements without regard to the impact on the
Company’s ability to repurchase the Shares.
(c)
Voluntary Purchase . The Employee represents and
warrants that the Employee is purchasing the Shares
voluntarily.
(d) No
Right to Awards . The Employee acknowledges and agrees
that the sale of the Shares and the grant of any options that are
awarded to the Employee in connection with the purchase of the
Shares ( i ) are being made on an exceptional basis and
are not intended to be renewed or repeated, ( ii ) are
entirely voluntary on the part of the Company and its Subsidiaries
and ( iii ) should not be construed as creating any
obligation on the part of the Company or any of its Subsidiaries to
offer any securities in the future.
(e)
Investment Intention . The Employee represents and
warrants that the Employee is acquiring the Shares solely for his
or her own account for investment and not on behalf of any other
person or with a view to, or for sale in connection with, any
distribution of the Shares.
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(f)
Securities Law Matters . The Employee acknowledges and
represents and warrants that the Employee understands
that:
(i)
the Shares have not been registered under the Securities Act or any
state or non-United States securities or “blue sky”
laws;
(ii) it is
not anticipated that there will be any public market for the
Shares;
(iii)
the Shares must be held indefinitely and the Employee must continue
to bear the economic risk of the investment in the Shares unless
the Shares are subsequently registered under applicable securities
and other laws or an exemption from registration is
available;
(iv)
the Company is under no obligation to register the Shares or to
make an exemption from registration available; and
(v) a
restrictive legend shall be placed on any certificates representing
the Shares that makes clear that the Shares are subject to the
restrictions on transferability set forth in this Agreement and a
notation shall be made in the appropriate records of the Company or
any transfer agent indicating that the Shares are subject to such
restrictions.
(g)
Voting Proxy . By entering into this Agreement and
purchasing the Shares, the Employee hereby irrevocably grants to
and appoints the CD&R Investors collectively (to act by
unanimous consent) as such Employee’s proxy and
attorney-in-fact (with full power of substitution), for and in the
name, place and stead of such Employee, to vote or act by unanimous
written consent with respect to such Employee’s Shares.
The Employee hereby affirms that the irrevocable proxy set forth in
this Section 3(g) will be valid until the consummation of
a Public Offering and is given to secure the performance of the
obligations of such Employee under this Agreement. The
Employee hereby further affirms that the proxy hereby granted shall
be irrevocable and shall be deemed coupled with an interest and
shall extend for the term of this Agreement, or, if earlier, until
the last date permitted by law. For the avoidance of doubt,
except as expressly
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contemplated by this
Section 3(g), the Employee has not granted a proxy to any
Person to exercise the rights of such Employee under this Agreement
or any other agreement relating to the Shares to which such
Employee is a party.
Section 4.
Restriction on Transfer of Shares .
(a)
In General . Prior to the first to occur of a Public
Offering and the third anniversary of the Closing, the Employee
shall not Transfer any of the Shares other than ( i
) upon the Employee’s death by will or by the laws of
descent and distribution, ( ii ) repurchases by the
Company (or an assignee thereof) or the CD&R Investors pursuant
to Section 5 hereof, ( ii i) pursuant to
Section 6 or Section 7 hereof, or ( iv ) with
the Company’s consent. Shares may only be Transferred
in a manner that complies with all applicable securities laws and,
if the Company so requests, prior to any attempted Transfer, the
Employee shall provide to the Company at the Employee’s
expense such information relating to the compliance of such
proposed Transfer with the terms of this Agreement and applicable
securities laws as the Company shall reasonably request, which may
include an opinion in form and substance reasonably satisfactory to
the Company of counsel regarding such securities law or other
matters as the Company shall request (such counsel to be reasonably
satisfactory to the Company).
(b) No
Transfer That Would Result In Registration Requirements .
Prior to a Public Offering, the Shares may not be Transferred if
such Transfer would result in the Company becoming subject to the
reporting requirements of Section 13 or 15(d) of the
Exchange Act (or other similar provision of non-U.S. law) or would
increase the risk that the Company would be subject to such
reporting requirements as determined by the Company in its sole and
absolute discretion. Any purported Transfer in violation of
Section 4(a) or this Section 4(b) shall be void
ab initio .
Section 5.
Options Effective on Termination of Employment Prior to a Public
Offering .
(a)
Rights of the Company and the Initial Investors . If
the Employee’s employment with the Company terminates for any
reason prior to a Public Offering, the Company may elect to
purchase all or a portion of the Shares by written notice to the
Employee delivered on or before the
5
60th day after the Employee’s
termination of employment (the “ First Option Period
”). The CD&R Investors may elect to purchase all or
any portion of the Shares that the Company has not elected to
purchase by written notice to the Employee delivered at any time on
or before the 80th day after the Employee’s termination of
employment (the “ Second Option Period
”).
(b)
Limited Right of the Employee to Require the Company to
Repurchase Shares . If the Employee’s employment
with the Company is terminated prior to a Public Offering by the
Employee upon Retirement or for Good Reason, or by reason of
the Disability or death of the Employee, or is terminated by the
Company without Cause (including in connection with a sale by the
Company of the division or Subsidiary directly employing the
employee), the Employee may require the Company to purchase all
(but not less than all) of the Initial Shares and the Additional
Shares by written notice delivered to the Company within 30 days
following the expiration of the Second Option Period.
(c)
Purchase Price . The purchase price per Share pursuant
to this Section 5 shall equal the Fair Market Value as of the
later of ( i ) the effective date of the
Employee’s termin