This document constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933. RURAL CELLULAR CORPORATION RESTRICTED STOCK UNIT AGREEMENT PURSUANT TO 2006 OMNIBUS INCENTIVE PLAN
Exhibit
10.2 (b)
This
document constitutes part of a prospectus covering securities that
have
been
registered under the Securities Act of 1933.
RURAL
CELLULAR CORPORATION
PURSUANT
TO 2006 OMNIBUS INCENTIVE PLAN
THIS
RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”) is made effective as of May
26, 2006, by and between Rural Cellular Corporation, a Minnesota corporation
(the “Company”), and (Director’s
Name)
(“Nonemployee Director”).
Recitals
A. The
Company desires to provide the Nonemployee Director an opportunity to acquire
shares of its Class A common stock, par value $.01 per share (the “Shares”), to
carry out the purposes of its 2006 Omnibus Incentive Plan (the “Plan”), a copy
of which has been made available to Nonemployee Director and the terms of which
are incorporated by reference herein and shall be considered a part of this
Agreement.
B. The
Plan
provides that each award is to be evidenced by an agreement, setting forth
the
terms and conditions of such award.
ACCORDINGLY,
in consideration of the premises and of the mutual covenants and agreements
contained herein, the Company and the Nonemployee Director hereby agree as
follows:
1. Restricted
Stock Award.
Subject
to the terms and provisions of this Agreement and the Plan, the Company hereby
grants to the Nonemployee Director as of the date hereof an award of restricted
stock units (“RSUs”) payable upon vesting in (Number
of Shares)
Shares
(the “Award Shares”). For purposes of Section 16 under the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder, the grant
date for the RSUs shall be the effective date hereof; provided, however, all
of
Nonemployee Director’s right, title, and interest in and to the RSUs and the
Award Shares shall be subject to Section 2 below.
2. Vesting
of RSUs and Award Shares.
(a) Subject
to Sections 2(b), (c), and (d), below, all of Nonemployee Director’s right,
title, and interest in and to the Award Shares shall be contingent upon and
subject to his continuously serving on the Board of Directors of the Company
from the date hereof until the date of the 2007 Annual Meeting of the
Shareholders (the “Vesting Period”). At the end of the Vesting Period, and
provided that the Nonemployee Director has continuously served on the Board
of
Directors of the Company for the entire Vesting Period. Nonemployee Director
shall be deemed to be fully vested in all of the RSUs and Award
Shares.
(b) In
the
event the Nonemployee Director ceases to serve on the Board of Directors of
the
Company prior to the end of the Vesting Period, Nonemployee Director shall
forfeit all right, title, and interest in and to the RSUs and Award
Shares.
(c) In
the
event that the Nonemployee Director ceases to serve on the Board of Directors
prior to the end of the Vesting Period because the Nonemployee Director has
died
or become permanently disabled within the meaning of Section 105(b) (4) of
the
Internal Revenue Code of 1986, Nonemployee Director shall thereupon become
immediately vested in all of the RSUs and Award Shares. The Award Shares will
be
delivered to the Nonemployee Director, or in the event of the Nonemployee
Director’s death, his estate or a person who has acquired the right to the Award
Shares by will or by the laws of descent and distribution, as soon as reasonably
practicable following such event.
(d) In
the
event of a “Change in Control” of the Company as defined in the Plan,
Nonemployee Director shall thereupon become immediately vested without
restriction in all of the RSUs and Award Shares.
3. Issuance
and Delivery of Certificates for Award Shares.
If the
RSUs vest pursuant to Section 2 above, the Award Shares will be issued and
delivered to the Nonemployee Director six (6) months after the Nonemployee
Director terminates his service on the Board of Directors. In the event of
the
Nonemployee Director’s death after the Vesting Period and before delivery of the
Award Shares, the Award Shares will be delivered to the Nonemployee Director’s
estate or a person who has acquired the right to the Award Shares by will or
by
the laws of decent and distribution, as soon as reasonably
practicable.
4. Rights
and Restrictions as a Shareholder.
Until
the vesting of the RSUs and issuance of the Award Shares under Sections 2 and
3
above, Nonemployee Director shall have no voting rights, dividend rights, or
other rights as a shareholder with respect to the Award Shares. Prior to
delivery of the Award Shares, Nonemployee Director shall not (i) sell, offer
to
sell, transfer, pledge, or hypothecate any record or beneficial interest in
the
Award Shares or (ii) grant any irrevocable proxies or irrevocable voting rights
with respect to the Award Shares. Upon issuance and delivery of the Award Shares
pursuant to Section 3 above, Nonemployee Director (or the person or persons
then
entitled to the Award Shares or any portion thereof pursuant to Section 2(c)
above) shall have full rights as a shareholder with respect to the Award Shares,
including the right to transfer ownership of the Award Shares, subject to the
restrictions described in Sections 7 and 8 hereof.
5. Stock
Dividends, Stock Splits, and Other Adjustments.
During
the time that the RSUs are subject to the vesting restrictions set forth in
Section 2 above, in the event of any merger, reorganization, consolidation,
capitalization, stock dividend, stock split, or other change in corporate
structure affecting the Shares, such substitution or adjustment shall be made
in
the number of Shares subject to this Award (“Adjusted Shares”) as may be
determined to be appropriate by the board of directors, in its sole discretion.
As used herein, the term “Award Shares” includes any related Adjusted Shares.
6. Withholding
Taxes.
Nonemployee Director shall pay on a timely basis all withholding and payroll
taxes and/or excise taxes required by law with respect to the Award Shares
(collectively, “Withholding Taxes”). The delivery of any Award Shares (or
portion thereof) to Nonemployee Director under this Agreement shall be subject
to and conditioned upon Nonemployee Director’s payment of all applicable
Withholding Taxes.
7. Investment
Representations.
Unless
a registration statement under the Securities Act of 1933, as amended (and
applicable state securities laws), is in effect with respect to the Award Shares
on the date of issuance of the Award Shares, Nonemployee Director agrees with,
and represents to, the Company that Nonemployee Director is acquiring the Award
Shares for the purpose of investment and not with a view to transfer, sell,
or
otherwise dispose of the Award Shares. The Company may require an opinion of
counsel satisfactory to it prior to the transfer of any Award Shares to assure
at all times that it will be in compliance with applicable federal and state
securities laws.
8. Legend
on Shares Held by Affiliates.
If
Nonemployee Director is deemed an affiliate of the Company on the date of
issuance of the Award Shares, the Company may place a stop transfer order on
its
stock records with respect to the Award Shares, and the certificate(s) for
the
Award Shares may contain substantially the following legend:
“The
securities evidenced by this certificate were issued to an affiliate of the
issuer, and the resale of such securities is subject to the restrictions of
Rule
144 under the Securities Act of 1933, as amended, pertaining to shares held
by
affiliates.”
9. Expenses.
Nothing
contained in this Agreement shall be construed to impose any liability on the
Company in favor of the Nonemployee Director for any cost, loss, or expense
the
Nonemployee Director may incur in connection with, or arising out of any
transaction under, this Agreement.
10. No
Guarantee of Future Awards.
Nothing
in this Agreement shall be construed as giving or denying the Nonemployee
Director any rights to receive future awards under the Plan or any other plan
of
the Company.
11. Nontransferability.
Except
as otherwise permitted by the Committee or the Board, the rights of the
Nonemployee Director under this Agreement shall not be assigned, transferred,
pledged, or otherwise hypothecated by the Nonemployee Director other than by
will or the laws of descent and distribution.
12. Fractional
Shares.
No
fraction of a share shall be deliverable pursuant to this Agreement, but in
the
event any adjustment hereunder of the number of the Award Shares shall cause
such number to include a fraction of a share, such fraction shall be adjusted
to
the nearest smaller whole number of shares.
13. Complete
Agreement, Amendment.
This
Agreement and the Plan, which by this reference is hereby incorporated herein
in
its entirety, contain the entire agreement between the Company and Nonemployee
Director with respect to the transactions contemplated hereby. Any modification
of the terms of this Agreement must be in writing and signed by each of the
parties. In the event that the terms of the Plan and the Agreement are
inconsistent, the terms of the Plan shall control.
14. Governing
Law.
Any
issue related to the formation, execution, performance, and interpretation
of
this Agreement shall be governed by the laws of the State of
Minnesota.
15. Headings.
The
section and subsection headings used in this Agreement are for convenient
reference and are not a part of this Agreement.
RURAL
CELLULAR CORPORATION
Accepted:
__________________________
Director’s
Name
Dated:
____________________________
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By:
__________________________________
Title:
President_________________________
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