FORM OF RESTRICTED STOCK AGREEMENT UNDER THE CENTURYTEL, INC. (2008 Grants to Section 16 Officers)
Exhibit
10.2
FORM
OF RESTRICTED STOCK AGREEMENT
UNDER
THE CENTURYTEL, INC.
2005
MANAGEMENT INCENTIVE COMPENSATION PLAN
(2008
Grants to Section 16 Officers)
This
RESTRICTED STOCK AGREEMENT (this “Agreement”) is entered into as of February 21,
2008, by and between CenturyTel, Inc. (“CenturyTel”) and ___________________
(“Award Recipient”).
WHEREAS, CenturyTel maintains
the 2005 Management Incentive Compensation Plan (the “Plan”), under which the
Compensation Committee of the Board of Directors of CenturyTel (the “Committee”)
may, directly or indirectly, among other things, grant restricted shares of
CenturyTel’s common stock, $1.00 par value per share (the “Common Stock”), to
key employees of CenturyTel or its subsidiaries (collectively, the “Company”),
subject to such terms, conditions, or restrictions as it may deem appropriate;
and
WHEREAS, pursuant to the Plan
the Committee has awarded to the Award Recipient restricted shares of Common
Stock on the terms and conditions specified below;
NOW, THEREFORE, the parties
agree as follows:
1.
AWARD OF
SHARES
Upon the
terms and conditions of the Plan and this Agreement, CenturyTel as of the date
of this Agreement hereby awards to the Award Recipient ________ restricted
shares of Common Stock (the “Restricted Stock”) that vest, subject to Sections
2, 3 and 4 hereof, in installments as follows:
Scheduled Vesting
Date
|
Number of Shares of
Restricted Stock
|
February
21, 2009
|
|
February
21, 2010
|
|
February
21, 2011
|
|
February
21, 2012
|
|
February
21, 2013
|
2.
AWARD
RESTRICTIONS ON
RESTRICTED
STOCK
2.1 In
addition to the conditions and restrictions provided in the Plan, neither the
shares of Restricted Stock nor the right to vote the Restricted Stock, to
receive dividends thereon or to enjoy any other rights or interests thereunder
or hereunder may be sold, assigned, donated, transferred, exchanged, pledged,
hypothecated or otherwise encumbered prior to vesting. Subject to the
restrictions on transfer provided in this Section 2.1, the Award Recipient shall
be entitled to all rights of a shareholder of CenturyTel with respect to the
Restricted Stock, including the right to vote the shares and receive all
dividends and other distributions declared thereon.
2.2 If
the shares of Restricted Stock have not already vested in accordance with
Section 1 above, the shares of Restricted Stock shall vest and all restrictions
set forth in Section 2.1 shall lapse on the earlier of:
(a) the
date on which the employment of the Award Recipient terminates as a result of
(i) death, (ii) disability within the meaning of Section 22(e)(3) of the
Internal Revenue Code, (iii) retirement of the Award Recipient on or after
attaining the age of 55 with at least ten years of prior service with the
Company, but only if such vesting and lapsing of restrictions is specifically
approved by the Committee, or (iv) the termination of the Award Recipient’s
employment by the Company, but only if such vesting and lapsing of restrictions
is specifically approved by the Committee; or
(b) the
occurrence of a Change of Control of CenturyTel, as described in Section 11.12
of the Plan.
3.
TERMINATION
OF EMPLOYMENT
All
unvested Restricted Stock shall automatically terminate and be forfeited if the
employment of the Award Recipient terminates for any reason, unless and to the
extent otherwise provided in Section 2.2.
4.
FORFEITURE
OF AWARD
4.1 If,
at any time during the Award Recipient’s employment by the Company or within 18
months after termination of employment, the Award Recipient engages in any
activity in competition with any activity of the Company, or inimical, contrary
or harmful to the interests of the Company, including but not limited to: (a)
conduct relating to the Award Recipient’s employment for which either criminal
or civil penalties against the Award Recipient may be sought, (b) conduct or
activity that results in termination of the Award Recipient’s employment for
cause, (c) violation of the Company’s policies, including, without limitation,
the Company’s xxxxxxx xxxxxxx policy and corporate compliance program, (d)
accepting employment with, acquiring a 5% or more equity or participation
interest in, serving as a consultant, advisor, director or agent of, directly or
indirectly soliciting or recruiting any employee of the Company who was employed
at any time during the Award Recipient’s tenure with the Company, or otherwise
assisting in any other capacity or manner any company or enterprise that is
directly or indirectly in competition with or acting against the interests of
the Company or any of its lines of business (a “competitor”), except for (A) any
isolated, sporadic accommodation or assistance provided to a competitor, at its
request, by the Award Recipient during the Award Recipient’s tenure with the
Company, but only if provided in the good faith and reasonable belief that such
action would benefit the Company by promoting good business relations with the
competitor and would not harm the Company’s interests in any substantial manner
or (B) any other service or assistance that is provided at the request or with
the written permission of the Company, (e) disclosing or misusing any
confidential information or material concerning the Company, (f) engaging in,
promoting, assisting or otherwise participating in a hostile takeover attempt of
the Company or any other transaction or proxy contest that could reasonably be
expected to result in a Change of Control (as defined in the Plan) not approved
by the CenturyTel Board of Directors or (g) making any statement or disclosing
any information to any customers, suppliers, lessors, lessees, licensors,
licensees, regulators, employees or others with whom the Company engages in
business that is defamatory or derogatory with respect to the business,
operations, technology, management, or other employees of the Company, or taking
any other action that could reasonably be expected to injure the Company in its
business relationships with any of the foregoing parties or result in any other
detrimental effect on the Company, then the award of Restricted Stock granted
hereunder shall automatically terminate and be forfeited effective on the date
on which the Award Recipient engages in such activity and (i) all shares of
Common Stock acquired by the Award Recipient pursuant to this Agreement (or
other securities into which such shares have been converted or exchanged) shall
be returned to the Company or, if no longer held by the Award Recipient, the
Award Recipient shall pay to the Company, without interest, all cash, securities
or other assets received by the Award Recipient upon the sale or transfer of
such stock or securities, and (ii) all unvested shares of Restricted Stock shall
be forfeited.
4.2 If
the Award Recipient owes any amount to the Company under Section 4.1 above, the
Award Recipient acknowledges that the Company may, to the fullest extent
permitted by applicable law, deduct such amount from any amounts the Company
owes the Award Recipient from time to time for any reason (including without
limitation amounts owed to the Award Recipient as salary, wages, reimbursements
or other compensation, fringe benefits, retirement benefits or vacation
pay). Whether or not the Company elects to make any such set-off in
whole or in part, if the Company does not recover by means of set-off the full
amount the Award Recipient owes it, the Award Recipient hereby agrees to pay
immediately the unpaid balance to the Company.
4.3 The
Award Recipient may be released from the Award Recipient’s obligations under
Sections 4.1 and 4.2 above only if the Committee determines in its sole
discretion that such action is in the best interests of the
Company.
5.
STOCK
CERTIFICATES
No stock
certificates evidencing the Restricted Stock shall be issued by CenturyTel until
the lapse of restrictions under the terms hereof. Upon the lapse of
restrictions on shares of Restricted Stock, CenturyTel may, in its discretion,
cause a stock certificate to be issued with respect to the vested Restricted
Stock in the name of the Award Recipient or his or her nominee, subject to any
withholdings of shares under Section 6 below. Upon receipt of any
such stock certificate, the Award Recipient is free to hold or dispose of the
shares represented by such certificate, subject to (i) applicable securities
laws, (ii) CenturyTel’s xxxxxxx xxxxxxx policy, and (iii) any applicable stock
retention policies that CenturyTel may adopt in the future.
6.
WITHHOLDING
TAXES
At the
time that all or any portion of the Restricted Stock vests, the Award Recipient
must deliver to CenturyTel the amount of income tax withholding required by
law. Unless otherwise directed in writing by CenturyTel, the Award
Recipient hereby agrees to fully satisfy this tax withholding obligation by
permitting CenturyTel to withhold from the shares the Award Recipient otherwise
would receive hereunder shares of Common Stock having a value equal to the
minimum amount required to be withheld (as determined under the Plan); provided, however, that to
prevent the issuance of fractional shares and the under-withholding of taxes,
the Award Recipient agrees that the number of shares withheld shall be rounded
up to the next whole number of shares.
7.
ADDITIONAL
CONDITIONS
Anything
in this Agreement to the contrary notwithstanding, if at any time CenturyTel
further determines, in its sole discretion, that the listing, registration or
qualification (or any updating of any such document) of the shares of Common
Stock issuable pursuant hereto is necessary on any securities exchange or under
any federal or state securities or blue sky law, or that the consent or approval
of any governmental regulatory body is necessary or desirable as a condition of,
or in connection with the issuance of shares of Common Stock pursuant thereto,
or the removal of any restrictions imposed on such shares, such shares of Common
Stock shall not be issued, in whole or in part, or the restrictions thereon
removed, unless such listing, registration, qualification, consent or approval
shall have been effected or obtained free of any conditions not acceptable to
CenturyTel. CenturyTel agrees to use commercially reasonable efforts
to issue all shares of Common Stock issuable hereunder on the terms provided
herein.
8.
NO
CONTRACT OF EMPLOYMENT INTENDED
Nothing
in this Agreement shall confer upon the Award Recipient any right to continue in
the employment of the Company, or to interfere in any way with the right of the
Company to terminate the Award Recipient’s employment relationship with the
Company at any time.
9.
BINDING
EFFECT
Upon
being duly executed and delivered by CenturyTel and the Award Recipient, this
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective heirs, executors, administrators, legal representatives and
successors. Without limiting the generality of the foregoing,
whenever the term “Award Recipient” is used in any provision of this Agreement
under circumstances where the provision appropriately applies to the heirs,
executors, administrators or legal representatives to whom this award may be
transferred by will or by the laws of descent and distribution, the term “Award
Recipient” shall be deemed to include such person or persons.
10.
INCONSISTENT
PROVISIONS
The
shares of Restricted Stock granted hereby are subject to the terms, conditions,
restrictions and other provisions of the Plan as fully as if all such provisions
were set forth in their entirety in this Agreement. If any provision
of this Agreement conflicts with a provision of the Plan, the Plan provision
shall control. The Award Recipient acknowledges that a copy of the
Plan and a prospectus summarizing the Plan was distributed or made available to
the Award Recipient and that the Award Recipient was advised to review such
materials prior to entering into this Agreement. The Award Recipient
waives the right to claim that the provisions of the Plan are not binding upon
the Award Recipient and the Award Recipient’s heirs, executors, administrators,
legal representatives and successors.
11.
ATTORNEYS’
FEES AND EXPENSES
Should
any party hereto retain counsel for the purpose of enforcing, or preventing the
breach of, any provision hereof, including, but not limited to, the institution
of any action or proceeding in court to enforce any provision hereof, to enjoin
a breach of any provision of this Agreement, to obtain specific performance of
any provision of this Agreement, to obtain monetary or liquidated damages for
failure to perform any provision of this Agreement, or for a declaration of such
parties’ rights or obligations hereunder, or for any other judicial remedy, then
the prevailing party shall be entitled to be reimbursed by the losing party for
all costs and expenses incurred thereby, including, but not limited to,
attorneys’ fees (including costs of appeal).
12.
GOVERNING
LAW
This
Agreement shall be governed by and construed in accordance with the laws of the
State of Louisiana.
13.
SEVERABILITY
If any
term or provision of this Agreement, or the application thereof to any person or
circumstance, shall at any time or to any extent be invalid, illegal or
unenforceable in any respect as written, the Award Recipient and CenturyTel
intend for any court construing this Agreement to modify or limit such provision
so as to render it valid and enforceable to the fullest extent allowed by
law. Any such provision that is not susceptible of such reformation
shall be ignored so as to not affect any other term or provision hereof, and the
remainder of this Agreement, or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid,
illegal or unenforceable, shall not be affected thereby and each term and
provision of this Agreement shall be valid and enforced to the fullest extent
permitted by law.
14.
ENTIRE
AGREEMENT; MODIFICATION
The Plan
and this Agreement contain the entire agreement between the parties with respect
to the subject matter contained herein and may not be modified, except as
provided in the Plan, as it may be amended from time to time in the manner
provided therein, or in this Agreement, as it may be amended from time to time
by a written document signed by each of the parties hereto. Any oral
or written agreements, representations, warranties, written inducements, or
other communications with respect to the subject matter contained herein made
prior to the execution of the Agreement shall be void and ineffective for all
purposes.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered on the day and year first above
written.
CenturyTel, Inc.
By: ______________________________
Xxxx X. Post, III
Chairman and Chief Executive Officer
__________________________________
{Insert name}
{Insert name}
Award
Recipient