RESTRICTED STOCK AGREEMENT AND NOTIFICATION OF RESTRICTED STOCK AWARD (this “Agreement”) (Senior Executive Form)
Exhibit 10.3
Confidential |
RESTRICTED STOCK AGREEMENT
AND NOTIFICATION OF
RESTRICTED STOCK AWARD
(this “Agreement”)
AND NOTIFICATION OF
RESTRICTED STOCK AWARD
(this “Agreement”)
(Senior Executive Form)
1. Associate Name (or “Holder”) |
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Home Address
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Price On Date Of Grant |
$/share |
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No. of Shares Awarded “Shares” |
Grant Date |
2. GRANT OF RESTRICTED STOCK AWARD: SunCom Wireless Holdings, Inc. (“SunCom”) (SunCom and its subsidiaries being referred to herein collectively as
the “Company”) hereby grants you (or the “Holder”) a Restricted Stock Award (“Award”) for the number of Shares referenced in Section 1, above. This
Award is granted pursuant to the SunCom Wireless Holdings, Inc. Stock and Incentive Plan (as amended and restated) (the “Plan”) and is subject in
all respects to the terms of the Plan and this Agreement.
3. ON-GOING ELIGIBILITY: Although the grant of any award under the Plan is subject to the discretion of the Compensation Committee of the Board of
Directors (the “Committee”), at a minimum, you must meet the following criteria to be eligible for future awards:
• | Full-Time employment as of the Grant Date; | ||
• | Attainment of 21 years of age as of May 1st of the year in which the award is granted; | ||
• | Overall performance Level equal to a “meets” or greater on your most recent review; | ||
• | No 2nd level Performance Improvement Plans in the prior twelve months from the Grant Date (no Associate will be excluded from a grant for more than one year as a result of the same Performance Improvement Plan); and | ||
• | Actively at work on the Grant Date. |
4.
VESTING: The Shares awarded to you vest ___% per year
over a ___ year period (the “Restriction Period”), with ___ first vesting ___
months after the grant date and an additional ___ vesting each anniversary of the grant date thereafter. Specifically, the vesting schedule is as
follows:
Anniversary of Grant Date | Vesting Percent | Vest Date |
If your employment or service terminates for any reason and all or any part of the Award has not vested, the Award, to the extent not then vested or
earned, will be forfeited immediately upon termination of employment or service and you will have no further rights with respect to the Award or any
unvested Shares or other benefit related to the Award.
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5. RESTRICTIONS ON UNVESTED SHARES; RIGHTS AS STOCKHOLDER; DIVIDENDS: You will have the right to receive dividends during the Restriction Period,
to vote the Shares subject to the Award, and to enjoy all other stockholder rights, except that (a) you will not be entitled to delivery of the stock
certificate(s) representing unvested Shares (and distribution of dividends, if any, declared on unvested Shares) unless and until the Restriction
Period with respect to the Shares expires and the Forfeiture Restrictions lapse (in which case delivery of the Shares will be made as soon as
practicable and distribution of such dividends will be made no later than March 15th of the year following the year in which the
corresponding portion of the Award vests); (b) the Company will (or will designate an agent or representative to) retain custody of the stock
certificate(s) during the Restriction Period; (c) you may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of the Shares
during the Restriction Period; and (d) a breach of the terms and conditions applicable to the Award will cause a forfeiture of the Award and the
underlying Shares subject to the Award.
6. SALES OF VESTED SHARES; NONTRANSFERABILITY OF AWARD: The sale of vested Shares may not occur until the tax liability with respect to the Shares
is satisfied and the record keeper has updated the account accordingly. Typically, this takes 4 to 7 business days following the receipt of the tax
payment. The sale of vested Shares may be further restricted due to applicable securities or other laws or pursuant to the Company’s policies,
including but not limited to its Xxxxxxx Xxxxxxx Policy. The Award will not be transferable or assignable otherwise than by will or the laws of
descent and distribution unless otherwise permitted under the terms of the Plan.
7. TAX LIABILITY: This Award is considered “compensation” under the Internal Revenue Code of 1986, as amended (the “Code”), and, therefore carries
with it an income tax liability. By accepting this Award, you agree to satisfy any income tax liability related to the Award and to the following
terms and conditions:
(a) The Company will withhold all required local, state, federal, foreign and other taxes and any other amount required to
be withheld by any governmental authority or law from any amount payable with respect to the Award. Prior to the delivery
or transfer of any certificate for the Shares or any other benefit, the Company will require you to pay to the Company in
cash the amount of any tax or other amount required by any governmental authority to be withheld and paid over by the
Company to such authority for the account of such recipient. Notwithstanding the foregoing, the Company may establish
procedures to permit a recipient to satisfy such obligation in whole or in part, and any local, state, federal, foreign or
other income tax obligations related to the Award, by electing to have the Company withhold shares, or electing to have
shares sold for the Holder’s behalf, from the Shares to which the Holder is otherwise entitled. The number of shares to be
withheld or sold will have a Fair Market Value as of the date that the amount of tax is determined as nearly as equal as
possible to (but not exceeding) the amount of such obligations being satisfied. Each election must be made in accordance
with election procedures established by the Company.
(b) Within thirty (30) days of the Grant Date, you may file an “83(b) election” with the Internal Revenue Service to
recognize as income 100% of the Fair Market Value of the Shares as of the Grant Date. You will be required to remit a
payment equal to the amount of any income tax liability that the Company must withhold or any other required withholdings on
taxes due in connection with the 83(b) election. The 83(b) election should be sent via certified mail to the Internal
Revenue Service. This election is generally irrevocable. You must also send a copy of the 83(b) election and check used
for payment of the amount of any tax obligations to the Company’s Human Resources Department in Berwyn, PA (Attention:
Manager of Qualified Plans). If you do not make an 83(b) election, the Company will require taxes to be paid when the Award
(or a portion of the Award) vests.
(c) The Shares may also be subject to taxation when the stock is eventually sold, at which time you may recognize a capital
gain or loss. It is your responsibility to consult a tax advisor to determine and establish implications associated with
any grant, vest or sale. The Company has made no warranties or representations to you with respect to the tax consequences
(including but not limited to income tax consequences) related to the Award or issuance or transfer of Shares pursuant to
the Award. By accepting the Award, you acknowledge the following: (i) you are in no manner relying on the Company or its
representatives for an assessment of such tax consequences; (ii) there may be adverse tax consequences upon the grant of
the Award and the acquisition or disposition of the Shares subject to the Award and you have been advised that you should
consult with your own attorney, accountant, and/or tax advisor regarding the decision to accept this Award and the
consequences thereof; and (iii) the Company has no responsibility to take or refrain from taking any actions in order to
achieve a certain tax result for you.
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8. EMPLOYMENT OR SERVICE “AT-WILL”: Unless otherwise provided by contract, your employment or service with the Company is “at-will.” You or the
Company may terminate your employment or service at any time for any reason or for no reason. This Award does not in anyway change the “at-will”
relationship between you and the Company.
9. CHANGE OF CONTROL: Unless otherwise provided by contract, and notwithstanding the vesting schedule described in Section 4, above, your unvested
Shares will vest on the date a “Change of Control” occurs (the “Change of Control Date”) as follows:
(a) | If your vested percentage in the Shares subject to the Award is less than 50% on the Change of Control Date, then your vested percentage for all of the Shares will be increased to 50% on such date; and the remaining unvested Shares will become fully (i.e., 100%) vested if any of the following occur: |
(i) | Your employment with the Company or its successor is terminated in connection with the “Change of Control” or within one year after the Change of Control Date (except for a termination due to “cause,” as cause is defined under any employment agreement or similar agreement entered into between the Company and the Holder, or, if no such agreement is applicable, a termination due to cause as determined by the Committee, in which event no additional vesting of the Award will occur); | ||
(ii) | You decline employment or, prior to the one-year anniversary of the Change of Control Date, terminate your employment because you are offered a position that is not substantially similar to your position immediately prior to the Change of Control Date or such new position is located more than thirty (30) miles from your position held immediately prior to the Change of Control Date; or | ||
(iii) | You remain in the employ of the Company or any successor entity for a period of one year after the Change of Control Date. |
(b) | If your vested percentage in the Shares subject to the Award is 50% or more on the Change of Control Date, your vested percentage for all of the Shares will become fully (i.e., 100%) vested as of the Change of Control Date. |
As used herein, the term “Change of Control” will have the meaning set forth in the Plan.
10. TERMS AND CONDITIONS OF PLAN; AMENDMENT: This Agreement is subject to the terms, conditions and restrictions set forth in the Plan, the terms
of which are incorporated herein. Unless the context otherwise requires, terms not defined herein will have the meanings given such terms in the
Plan. This Agreement is not a stock certificate or a negotiable instrument. To the extent that any conflict may exist between any term or provision
of this Agreement and any term or provision of the Plan, the term or provision of the Plan will control. All questions of interpretation concerning
this Award are determined by the Committee. All determinations by the Committee will be final and binding upon all persons having or claiming an
interest in the Award or the Shares. Unless otherwise determined by SunCom’s Board of Directors, the Committee may amend this Award at any time,
provided that no such amendment may impair your rights with respect to the Shares without your consent. However, notwithstanding the preceding
sentence, the Committee has unilateral authority to amend the Plan and this Agreement (without your consent) to the extent necessary to comply with
applicable law or changes to applicable law (including but in no way limited to Code Section 409A and related regulations or other guidance and
federal securities laws).
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11. PROVISIONS SEVERABLE: If any provision of this Agreement is invalid or
unenforceable, it will not affect the other provisions, and this Agreement will
remain in effect as though the invalid or unenforceable provisions were
omitted. Upon a determination that any term or other provision is invalid or
unenforceable, the Company, in accordance with Delaware general corporate law,
will in good faith modify this Agreement so as to effect the original intent of
the parties as closely as possible.
12. PARTIES TO AGREEMENT: This Agreement will be binding on and will operate
for the benefit of the Company, its successors and assigns, and the Holder and
his heirs, estate, personal representatives, successors and assigns.
13. COUNTERPARTS; FURTHER INSTRUMENTS: This Agreement may be executed in two
or more counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument. At any time, and
from time to time after executing this Agreement, the Holder will execute such
additional instruments and take such actions as may be reasonably requested by
the Company to confirm or perfect or otherwise to carry out the intent and
purpose of this Agreement.
14. RIGHT OF OFFSET: Notwithstanding any other provision of the Plan or this
Agreement, the Company may reduce the amount of any benefit or payment
otherwise payable to you or on your behalf by the amount of any obligation you
have to the Company, and you are deemed to have consented to such reduction by
entering into this Agreement.
15. GOVERNING LAW: This Agreement is to be construed in accordance with the
laws of the State of Delaware, without regard to the principles of conflicts of
laws, and in accordance with applicable general laws of the United States.
16. CONSENT TO JURISDICTION: The Holder hereby consents to the jurisdiction
of any state or federal court located in the county in which the principal
executive office of the Company is then located for purposes of the enforcement
of this Agreement and waives personal service of any and all process upon him.
The Holder waives any objection to venue of any action instituted under this
Agreement.
17. NO RESTRICTION ON COMPANY ACTION: Nothing contained in this Agreement
will be construed to prevent the Company from taking any corporate action that
is deemed to be appropriate or in the Company’s best interests, whether or not
such action would have an adverse effect on the Award. Neither the Holder nor
any beneficiary thereof, nor any other person, will have any claim against the
Company as a result of any such action.
18. CAPTIONS: Captions herein are for convenience of reference only and will
not be considered in construing this Agreement.
19. ENTIRE AGREEMENT: This Agreement supersedes any statements,
representations or agreements of the Company with respect to the grant of the
Award or any related rights, and the Holder hereby waives any rights or claims
related to any such statements, representations or agreements. This Agreement
does not supersede or amend any existing confidentiality agreement,
nonsolicitation agreement, noncompetition agreement, employment agreement or
any other similar agreement between the Holder and the Company, including, but
not limited to, any restrictive covenants contained in such agreements.
20. LEGENDS: The Company may at any time place legends referencing
any applicable federal or state securities law restrictions on certificates
representing the Shares subject to the Award. The Holder will, at the request
of the Company, promptly present to the Company any and all certificates
representing such Shares that are in the possession of the Holder in order to
effectuate the provisions of this Section 21.
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21. FORFEITURE OF SHARES AND/OR GAIN FROM SHARES:
(a) Notwithstanding any other provision of this Agreement, if, at
any time during the employment or service of the Holder with the
Company or during the 24-month period following termination of
employment or service with the Company for any reason (regardless
of whether such termination was by the Company or the Holder, and
whether voluntary or involuntary), the Holder engages in a
Prohibited Activity (as defined herein), then (i) the Award will
immediately be terminated and forfeited in its entirety, (ii) any
Shares subject to the Award, regardless of whether such Shares are
vested or unvested and/or deferred or undeferred, will immediately
be forfeited and returned to the Company and the Holder will cease
to have any rights related thereto and will cease to be recognized
as the legal owner of such Shares, and (iii) any Gain (as defined
herein) realized by the Holder with respect to any Shares subject
to the Award will immediately be paid by the Holder to the Company.
(b) For the purposes herein, a “Prohibited Activity” means (i) the
Holder’s solicitation or assisting any other person in so
soliciting, directly or indirectly, in one or a series of
transactions, of any customers, suppliers, vendors, or other
service providers to or of the Company for the purpose of inducing
that customer, supplier, vendor or other service provider to
terminate or alter his or its relationship with the Company; (ii)
the Holder’s inducement, directly or indirectly, in one or a series
of transactions, of any employees or service providers to terminate
their employment with or service to the Company for the purpose of
performing services for, assisting, advising or otherwise
supporting any business which is competitive with the business of
the Company; (iii) the Holder’s violation of any noncompetition
restrictions applicable to the Holder; (iv) the Holder’s violation
of any of the Company’s policies, including, without limitation,
the Company’s xxxxxxx xxxxxxx policies; (v) the Holder’s violation
of any material (as determined by the Committee) federal, state or
other law, rule or regulation; (vi) the Holder’s disclosure or
misuse of any confidential information or material concerning the
Company (except as otherwise required by law or as agreed to by the
parties herein); (vii) the Holder’s dishonesty, theft or
embezzlement in a manner which negatively impacts the Company in
any way; (viii) the Holder’s refusal or failure to perform his
assigned duties for the Company in a satisfactory manner; or (ix)
the Holder’s engaging in any conduct that could be materially
damaging to the Company without a reasonable good faith belief that
such conduct was in the best interest of the Company. The
Committee (or its designee, to the extent permitted pursuant to the
Plan) has sole and absolute discretion to determine if a Prohibited
Activity has occurred.
(c) For the purposes herein, “Gain” means, unless the Committee
determines otherwise, the greater of the Fair Market Value of the
Shares (or portion thereof) at the time of grant or vesting or the
disposition price of such Shares at the time of disposition,
multiplied by the number of Shares sold or disposed.
(d) Notwithstanding the provisions of Section 22 herein, the
waiver by the Company in any one or more instances of any rights
afforded to the Company pursuant to the terms of Section 22
herein
will not be deemed to constitute a further or continuing waiver of
any rights the Company may have pursuant to the terms of this
Agreement or the Plan (including but not limited to the rights
afforded the Company in Section 22 herein).
(e) By accepting this Agreement, and without limiting the effect
of Section 15 herein, the Holder consents to a deduction (to the
extent permitted by applicable law) from any amounts the Company
may owe the Holder from time to time (including amounts owed to the
Holder as wages or other compensation, fringe benefits, or vacation
pay, as well as any other amounts owed to the Holder by the
Company), to the extent of the amounts the Holder owes the Company
pursuant to this Agreement, including but not limited to Section 15
or Section 22 herein. Whether or not the Company elects to make
any set-off in whole or in part, if the Company does not recover by
means of set-off the full amount owed by the Holder pursuant to
this Agreement, the Holder agrees to immediately pay the unpaid
balance to the Company.
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22. ACCEPTANCE: By accepting this Agreement, you acknowledge and agree that
the grant of the Award, the receipt of the Shares and/or any other benefit
under this Agreement is subject to, and conditioned upon, your execution,
return and compliance with the terms of this Agreement, including but not
limited to the provisions of Section 22 herein. By executing and returning
this Agreement to the Company, you acknowledge and agree that (a) you have read
this Agreement in its entirety; (b) you have had the opportunity to consult
your legal counsel prior to such execution of the Agreement; (c) this Agreement
is valid and binding upon, and enforceable against, you in accordance with its
terms; and (d) the consideration for this Agreement is valuable and sufficient
consideration. The Company may treat the Award as cancelled, and any Shares or
other benefit underlying the Award as forfeited, if you fail to return a signed
copy of the Agreement to [ ] by
[ ].
IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officers
thereunto duly authorized, and the Holder has hereunto set his hand, effective as of the day and
year first above written.
SUNCOM WIRELESS HOLDINGS, INC. | ||||
By: Xxxxxxx X. Xxxxxxxx | ||||
Title: Chief Executive Officer | ||||
SENIOR EXECUTIVE | ||||
By: | ||||
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