Restrictions On and Vesting of Phantom Shares Clause Samples

Restrictions On and Vesting of Phantom Shares. If Grantee is then employed by the Company and has not breached the terms of this Agreement, the restrictions on twenty percent (20%) of the initial number of Phantom Shares will lapse and the Grantee will vest in those shares on each January 5 following the Grant Date, commencing with January 5, 2009. Lapsing of restrictions and vesting under this provision will continue until all of the Phantom Shares are free of restrictions and vested, the Grantee is no longer employed by the Company, or another provision of this Agreement supersedes this section, whichever occurs first. The Committee may, in its sole discretion, accelerate the lapsing of restrictions and the vesting of the Phantom Shares at any time before the restrictions would otherwise lapse or before full vesting. As restrictions lapse and vesting occurs, the Company will pay the amount, determined at that time, Grantee is entitled to receive on account of those Phantom Shares as to which restrictions have just lapsed and vesting has just occurred. Upon such payment, those Phantom Shares shall be extinguished. In addition, the Company will pay Grantee at that time an amount (“Phantom Dividends”), in British Pound Sterling, equal to the regular quarterly per share cash dividends, if any, paid by Kaydon Corporation during the preceding calendar year (or, in the case of the payment on January 5, 2009, since the Grant Date) multiplied by the number of shares of Common Stock underlying the Phantom Shares as to which all restrictions then lapse plus the Phantom Shares that remain subject to restrictions.