RESTRICTED STOCK AWARD AGREEMENT
Exhibit
10.31
THIS
AGREEMENT (the "Agreement"), is made, effective as of ________2004, (the "Grant
Date") between Bristol West Holdings, Inc., a Delaware corporation (hereinafter
called the "Company"), and [NAME], an
employee of the Company or an Affiliate (as defined below) of the Company,
hereinafter referred to as the "Employee."
WHEREAS,
the Company has adopted the 2004 Stock Incentive Plan for the Company and
Subsidiaries (the "Plan"), the terms of which are hereby incorporated by
reference and made a part of this Agreement (capitalized terms not otherwise
defined herein shall have the same meanings as in the Plan);
WHEREAS,
the Compensation Committee of the Board of Directors (the "Committee") has
determined that it would be to the advantage and best interest of the Company
and its shareholders to grant the Shares provided for herein (the "Restricted
Stock Award") to the Employee as an incentive for increased efforts during his
or her term of office with the Company or its Affiliates, and has advised the
Company thereof and instructed the undersigned officer to grant this Restricted
Stock Award;
WHEREAS,
"Equity Investment" as used herein is defined as common stock of the Company
purchased by the Employee in the open market as a condition precedent to the
receipt of the Restricted Stock Award.
NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other
good and valuable consideration, receipt of which is hereby acknowledged, the
parties hereto do hereby agree as follows:
1. Grant
of the Restricted Stock. Subject
to the terms and conditions of the Plan, and the additional terms and conditions
set forth in this Agreement, the Company hereby grants to the Employee a
Restricted Stock Award equal to [__
multiple of Equity Investment]1 Shares
(hereinafter called the "Restricted Stock"). The Restricted Stock shall vest and
become nonforfeitable in accordance with Section 2 hereof.
2. Vesting.
(a) Unless
otherwise provided in this Agreement, so long as the Employee
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1) |
continues
to be employed by the Company or its Affiliates through_______(xxxxx xxxx
date of two years from date of Grant) and; |
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2) |
continuously
owns the Employee's Equity Investment through ____(xxxxx xxxx date of two
years from date of Grant), |
then the
Restricted Stock shall become fully vested on _________(insert xxxxx xxxx date
of two years from date of Grant).
_________________
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Number to be determined based on multiplying the number of shares the Employee
purchased in the open market (capped as determined for each employee) by a ratio
determined for each employee.
(b) If the
Employee's employment with the Company or its Affiliates terminates as a result
of the Employee's death or Disability (as hereinafter defined) the Restricted
Stock shall, to the extent not then vested, immediately become fully vested. If
the Employee's employment is terminated for any reason other than due to death
or Disability, the Restricted Stock shall, to the extent not then vested, be
forfeited by the Employee without consideration. For purposes of this Agreement,
"Disability" shall mean "disability" as defined in any employment agreement then
in effect between the Employee and the Company or any subsidiary thereof, or if
not defined therein or if there is no such agreement, as defined in the
Company's long-term disability plan as in effect from time to time, or if there
is no such plan or if not defined therein, the Employee's becoming unable to
engage in the activities required by Employee's job by reason of any medically
determined physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than six (6) months.
(c) Notwithstanding
any other provision of this Agreement to the contrary, upon the occurrence of a
Change in Control as defined in the Plan, all unvested Restricted Stock shall
become immediately vested.
3. Certificates.
Certificates evidencing the Restricted Stock shall be issued by the Company and
shall be registered in the Employee's name on the stock transfer books of the
Company promptly after the date hereof, but shall remain in the physical custody
of the Company or its designee at all times prior to the vesting of such
Restricted Stock pursuant to Section 2. The Employee hereby acknowledges and
agrees that the Company shall retain custody of such certificate or certificates
until the restrictions imposed by Section 2 on the Shares granted hereunder
lapse. As a condition to the receipt of this Restricted Stock Award, the
Employee shall deliver to the Company a stock power, duly endorsed in blank,
relating to the Restricted Stock. No certificates shall be issued for fractional
Shares.
4. Rights
as a Stockholder. The
Employee shall be the record owner of the Restricted Stock until or unless such
Stock is forfeited pursuant to Section 2 hereof, and as record owner shall be
entitled to all rights of a common stockholder of the Company, including,
without limitation, voting rights with respect to the Restricted Stock;
provided,
however, that
any cash or in-kind dividends paid with respect to the Restricted Stock that has
not previously vested shall be withheld by the Company and shall be paid to the
Employee only when, and if, such Restricted Stock shall become fully vested
pursuant to Section 2. As soon as practicable following the vesting of the
Restricted Stock pursuant to Section 2, certificates for the Restricted Stock
which shall have vested shall be delivered to the Employee or to the Employee's
legal guardian or representative along with the stock powers relating
thereto.
5. Legend
on Certificates. The
certificates representing the vested Restricted Stock delivered to the Employee
as contemplated by Section 4 above shall be subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the Plan or the
rules, regulations, and other requirements of the Securities and Exchange
Commission, any stock exchange upon which such Stock is listed, and any
applicable Federal or state laws, and the Committee may cause a legend or
legends to be put on any such certificates to make appropriate reference to such
restrictions.
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6. Transferability. The
Restricted Stock may not, at any time prior to becoming vested pursuant to
Section 2 or thereafter, be transferred, sold, assigned, pledged, hypothecated
or otherwise disposed of unless such transfer, sale, assignment, pledge,
hypothecation or other disposition complies with the provisions of this
Agreement and, to the extent applicable, any employee stockholder's agreement or
other agreement with the Company or any of its Affiliates regarding the
transferability, sale or other disposition of the Restricted Stock.
7. Purchaser's
Employment by the Company. Nothing
contained in this Agreement or in any other agreement entered into by the
Company or its Affiliates and the Employee contemporaneously with the execution
of this Agreement (subject to any rights set forth in an employment agreement
between the Employee and the Company or any Affiliate as in effect from time to
time) (i) obligates the Company or any Affiliate to employ the Employee in any
capacity whatsoever or (ii) prohibits or restricts the Company (or any
Affiliate) from terminating the employment, if any, of the Employee at any time
or for any reason whatsoever, with or without cause, and the Employee hereby
acknowledges and agrees that neither the Company nor any other Person has made
any representations or promises whatsoever to the Employee concerning the
Employee's employment or continued employment by the Company or any Affiliate
thereof.
8. Change
in Capitalization. If,
prior to the time the restrictions imposed by Section 2 on the Restricted Stock
granted hereunder lapse, the Company shall be reorganized or otherwise
restructured, or consolidated or merged with another corporation (other than a
Change in Control, which results in the immediate vesting of Restricted Stock),
any stock, securities or other property exchangeable for such Stock pursuant to
such reorganization, consolidation or merger shall be deposited with the Company
and shall become subject to the restrictions and conditions of this Agreement to
the same extent as if it had been the original property granted hereby, pursuant
to Section 9 of the Plan.
9. Withholding. It
shall be a condition of the obligation of the Company to deliver Restricted
Stock to the Employee that the Employee pay to the Company such amount as may be
requested by the Company for the purpose of satisfying the Employee's share of
any liability for any federal, state or local income or other taxes required by
law to be withheld with respect to such Restricted Stock, including the payment
to the Company upon the vesting of the Restricted Stock or other settlement in
respect of the Restricted Stock of all such taxes and requirements. The Company
shall be authorized to take such action as may be necessary, in the opinion of
the Company's counsel (including, without limitation, withholding vested
Restricted Stock otherwise deliverable to the Employee hereunder and/or
withholding amounts from any compensation or other amount owing from the Company
to the Employee), to satisfy the obligations for payment of the minimum amount
of any such taxes. The Employee is hereby advised to seek his own tax counsel
regarding the taxation of the grant of Restricted Stock made
hereunder.
10. Limitation
on Obligations. The
Company's obligation with respect to the Restricted Stock granted hereunder is
limited solely to the delivery to the Employee of Shares on the date when such
shares are due to be delivered hereunder, and in no way shall the Company become
obligated to pay cash in respect of such obligation. This Restricted Stock Award
shall not be secured by any specific assets of the Company or any of its
subsidiaries, nor shall any assets of the Company or any of its subsidiaries be
designated as attributable or allocated to the satisfaction of the Company's
obligations under this Agreement. In addition, the Company shall not be liable
to the Employee for damages relating to any delays in issuing the share
certificates to him (or his designated entities), any loss of the certificates,
or any mistakes or errors in the issuance of the certificates or in the
certificates themselves.
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11. Securities
Laws. Upon
the vesting of any Restricted Stock, the Company may require the Employee to
make or enter into such written representations, warranties and agreements as
the Committee may reasonably request in order to comply with applicable
securities laws or with this Agreement. The granting of the Restricted Stock
hereunder shall be subject to all applicable laws, rules and regulations and to
such approvals of any governmental agencies as may be required.
12. Notices. Any
notice to be given under the terms of this Agreement to the Company shall be
addressed to the Company in care of its Secretary, and any notice to be given to
the Employee shall be addressed to him or her at the address given beneath his
signature hereto. By a notice given pursuant to this Section 12, either party
may hereafter designate a different address for notices to be given to him or
her. Any notice that is required to be given to the Employee shall, if the
Employee is then deceased, be given to the Employee's personal representative if
such representative has previously informed the Company of his or her status and
address by written notice under this Section 12. Any notice shall have been
deemed duly given when enclosed in a properly sealed envelope or wrapper
addressed as aforesaid, deposited (with postage prepaid) in a post office or
branch post office regularly maintained by the United States Postal
Service.
13. Governing
Law. The
laws of the State of Delaware shall govern the interpretation, validity and
performance of the terms of this Agreement regardless of the law that might be
applied under principles of conflicts of laws.
14. Restricted
Stock Award Subject to the Plan. The
Restricted Stock Award shall be subject to the terms and provisions of the Plan,
to the extent applicable to the Restricted Stock. In the event of a conflict
between any term or provision contained herein and a term or provision of the
Plan, the applicable terms and provisions of the Plan, as applicable, will
govern and prevail.
15. Signature
in Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.
[Continued
on next page.]
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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement.
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BRISTOL
WEST HOLDINGS, INC. |
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By: |
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Name: |
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Title: |
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EMPLOYEE |
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[NAME] |
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