TETRA Technologies, Inc. EMPLOYEE RESTRICTED STOCK AGREEMENT Pursuant to the terms of the TETRA Technologies, Inc. 2007 Long Term Incentive Compensation Plan
Exhibit
4.14
TETRA Technologies,
Inc.
Pursuant
to the terms of the
TETRA
Technologies, Inc. 2007 Long Term Incentive Compensation Plan
1.
Grant of Restricted Stock. TETRA Technologies, Inc., a Delaware
corporation (“Company”), hereby awards to [ ]
(“Participant”) all rights, title and interest in the record and beneficial
ownership of [x,xxx] shares (the “Restricted Stock”) of common stock, $0.01 par
value per share, of the Company (“Common Stock”), subject to and in accordance
with the terms and conditions of this document. This Employee Restricted Stock
Agreement (“Restricted Stock Agreement”) is dated as of [xx/xx/xx]. The
Restricted Stock is awarded pursuant to and to implement in part the TETRA
Technologies, Inc. 2007 Long Term Incentive Compensation Plan (as amended and in
effect from time to time, the “Plan”) and is subject to the restrictions,
forfeiture provisions and other terms and conditions of the Plan, which is
hereby incorporated herein and is made a part hereof, and this Restricted Stock
Agreement. By execution of this Restricted Stock Agreement, Participant agrees
to be bound by all of the terms, provisions, conditions and limitations of the
Plan as implemented by this Restricted Stock Agreement, together with all rules
and determinations from time to time issued by the Management and Compensation
Committee (“Committee”) pursuant to the Plan. All capitalized terms have the
meanings set forth in the Plan unless otherwise specifically provided. All
references to specified paragraphs pertain to paragraphs of this Restricted
Stock Agreement unless otherwise provided.
2.
Escrow of Restricted Stock. The Restricted Stock shall be represented by
uncertificated shares designated for the Participant in book-entry registration
on the records of the Company’s transfer agent or, at the discretion of the
Company, by a stock certificate issued and registered in the Participant’s name,
in each case subject to the restrictions set forth in this Restricted Stock
Agreement. Any book-entry uncertificated shares or stock certificates evidencing
the Restricted Stock shall be held in custody by the Company until the
restrictions thereon have lapsed, and as a condition of this award, the
Participant shall deliver to the Company a stock power in substantially the form
of Exhibit A attached hereto, endorsed in blank, with respect to any
certificated shares of Restricted Stock.
The shares of Restricted Stock which are the
subject of this Restricted Stock Agreement shall be subject to the following
legend:
The shares
represented by this certificate or book-entry registration have been issued
pursuant to the terms of the TETRA Technologies, Inc. 2007 Long Term Incentive
Compensation Plan (as amended and restated) and may not be sold, pledged,
transferred, assigned or otherwise encumbered in any manner except as is set
forth in the terms of the Restricted Stock Agreement dated , 20.
In addition, the shares of Restricted Stock
shall be subject to such stop-transfer orders and other restrictive measures as
the Company may deem advisable under applicable securities laws, or to implement
the terms, conditions or restrictions hereunder.
Following the vesting of any portion of the
shares of the Restricted Stock and the removal of any restrictions thereon in
accordance with Paragraph 4 below, the Company will cause all restrictions to be
removed from book-entry registrations or, at the Company’s discretion, issue a
stock certificate, without such restrictive legend, in each case only with
respect to the
vested portion of the shares of the Restricted Stock registered on the Company’s
books and records in the name of the Participant. Following the expiration of
the Restricted Period, the Company will cause all restrictions to be removed
from book-entry registrations or, at the Company’s discretion, issue a stock
certificate, without such restrictive legend, for any shares of the Restricted
Stock that have vested and with respect to which the restrictions imposed
thereon have lapsed, in each case only to the extent such action has not
previously been taken in accordance with the preceding sentence.
3. Risk
of Forfeiture. Participant shall immediately forfeit all rights to any
shares of the Restricted Stock which have not vested and with respect to which
the restrictions thereon have not lapsed in the event of the termination,
resignation, or removal of Participant from Employment with the Company or any
Affiliate under circumstances that do not cause Participant to become fully
vested, and the restrictions on such shares of Restricted Stock to lapse, under
the terms of the Plan.
4.
Restricted Period; Vesting. Subject to the provisions of this Restricted
Stock Agreement including, without limitation, the following provisions of this
Paragraph 4, the total number of shares subject to this Restricted Stock
Agreement shall vest, and the restrictions imposed thereon shall lapse, in
accordance with the following schedule:
[schedule to be specified]
The period from the
date hereof until the shares of the Restricted Stock have become 100% vested and
the restrictions thereon have lapsed shall be referred to as the “Restricted
Period.”
The Committee may waive all restrictions and
conditions of the Restricted Stock with the result that the shares of Restricted
Stock shall be fully vested and the restrictions thereon shall have lapsed, (i)
upon the occurrence of a Change in Control in accordance with Paragraph 8 below,
or (ii) upon the death, Disability or Retirement of Participant in accordance
with Paragraph 7 below.
5.
Transferability. During the Restricted Period, the Participant shall not
sell, assign, transfer, pledge, exchange, hypothecate, or otherwise dispose of
any shares of the Restricted Stock prior to vesting in accordance with Paragraph
4 above. Following the vesting of any shares of Restricted Stock and the removal
of any restrictions thereon in accordance with Paragraph 4, the Participant may
hold or dispose of such shares subject to compliance with (i) the terms and
conditions of the Plan and this Restricted Stock Agreement, (ii) applicable
federal or state securities laws or other applicable law, (iii) applicable rules
of any exchange on which the Company’s securities are traded or listed, and (iv)
the Company’s rules or policies as established by the Company in its sole
discretion.
6.
Ownership Rights. Prior to any forfeiture of the shares of Restricted
Stock and while such nonvested shares are restricted, the Participant shall,
subject to the terms and restrictions of this Restricted Stock Agreement and the
Plan, have all rights with respect to the shares of Restricted Stock awarded
hereunder including the right to vote the shares of Restricted Stock, whether or
not vested in accordance with Paragraph 4 above, and the right to receive all
dividends, cash or stock, paid or delivered thereon from and after the date
hereof in accordance with the following provisions. During the Restricted
Period, any dividends, cash or stock, paid or delivered on any of the nonvested
shares of the Restricted Stock, shall be credited to an account for the benefit
of the Participant. In the event of the forfeiture of any nonvested shares of
the Restricted Stock, the Participant shall have no further rights with respect
to such Restricted Stock and shall forfeit any dividends, cash or stock,
credited to the account for the benefit of the Participant which are related to
the forfeited shares of Restricted Stock. To the extent the shares of Restricted
Stock shall become fully vested and the restrictions imposed
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thereon shall lapse
pursuant to Paragraph 4 above, all dividends, cash and stock, if any, credited
to the account for the benefit of the Participant shall be distributed to the
Participant without interest.
7.
Termination of Employment. Subject to any action by the Committee, if
Employment of Participant is terminated for any reason whatsoever including,
without limitation, death, Disability or Retirement, any nonvested shares of the
Restricted Stock outstanding at the time of such termination and all rights
thereunder shall be forfeited and no further vesting shall occur, and the
Company shall have the right to repurchase or recover such shares for the amount
of any cash paid therefor. Upon Retirement of Participant or upon termination of
Employment as a result of death or Disability of Participant, the Committee, in
its discretion, may provide that all or a portion of any nonvested shares of the
Restricted Stock subject to this Restricted Stock Agreement shall become vested;
provided, however, that (i) if the Award is to a Covered Employee and intended
to qualify as “performance-based compensation” under Section 162(m) of the
Code, such acceleration of vesting and waiver of restrictions may only occur
upon a termination due to death or Disability, (ii) if the Award is subject to
Section 409(A) of the Internal Revenue Code of 1986, as amended (the “Code”),
the Committee shall not have the authority to accelerate vesting or waive any
restrictions in a manner that would cause the Award to become subject to
interest and penalty provisions thereunder, and (iii) no acceleration of vesting
and waiver of restrictions will be effective prior to the date of the
Committee’s written determination.
8. Change
in Control.
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(a) Change in Control. In
the event of a Change in Control described in clauses (ii), (iii) and (iv)
of the definition of Change in Control under Section 1.2 of the Plan, the
Committee may waive all restrictions and conditions of all Restricted
Stock then outstanding with the result that the shares of Restricted Stock
shall be fully vested and all restrictions shall be deemed satisfied, and
the Restricted Period shall be deemed to have expired as of the date of
the Change in Control or such other date as may be determined by the
Committee.
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Notwithstanding
the above, the Committee shall not be required to take any action
described in the preceding sentence and any decision made by the
Committee, in its sole discretion, not to take some or all of the actions
described in the preceding sentence shall be final, binding and conclusive
with respect to the Company and all other interested
persons.
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(b) Right of Cash-Out. If
approved by the Board prior to or within thirty (30) days after such time
as a Change in Control shall be deemed to have occurred, the Board shall
have the right for a forty-five (45) day period immediately following the
date that the Change in Control is deemed to have occurred to require
Participant to transfer and deliver to Company all unvested shares of
Restricted Stock hereunder with respect to which the restrictions have not
lapsed in exchange for an amount equal to the “cash value” (defined below)
of such shares of Restricted Stock. Such right shall be exercised by
written notice to Participant. The cash value of such shares of Restricted
Stock shall equal the “market value” (defined below) per share, multiplied
by the number of unvested shares of Restricted Stock hereunder with
respect to which the restrictions have not lapsed. For purposes of the
preceding sentence, “market value” per share shall mean the higher of (i)
the average of the Fair Market Value per share of Common Stock on each of
the five trading days immediately following the date a Change in Control
is deemed to have occurred or (ii) the highest price, if any, offered in
connection with the Change in Control. The amount payable to Participant
by Company pursuant to this Section 8(b) shall be paid in cash or by
certified check and shall be reduced by any taxes required to be
withheld.
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9.
Reorganization of Company and Subsidiaries. The existence of the
Restricted Stock shall not affect in any way the right or power of Company or
its stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of Company or any issue of bonds,
debentures, preferred or prior preference stock ahead of or affecting the shares
of Restricted Stock or the rights thereof, or the dissolution or liquidation of
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.
10.
Adjustment of Shares. In the event that at any time after the date of
this Restricted Stock Agreement the outstanding shares of Common Stock are
changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of a merger, consolidation,
recapitalization, reclassification, stock split, stock dividend, combination of
shares or the like, the aggregate number of shares of Restricted Stock which
have not vested under this Restricted Stock Agreement, subject to any required
action by the stockholders of the Company, shall automatically be
proportionately adjusted.
11. Certain
Restrictions. By executing this Restricted Stock Agreement, Participant
agrees that if at the time of delivery of the shares of Restricted Stock issued
hereunder any sale of such shares of Common Stock is not covered by an effective
registration statement filed under the Securities Act of 1933 (“Act”), the
shares of Restricted Stock may be subject to such stop-transfer orders, legends
and other restrictive measures as the Company shall require and the Participant
will acquire the shares of Restricted Stock for Participant’s own account and
without a view to resale or distribution in violation of the Act or any other
securities law, and upon any such acquisition Participant will enter into such
written representations, warranties and agreements as Company may reasonably
request in order to comply with the Act or any other securities law or with this
Restricted Stock Agreement. Participant agrees that the Company shall not be
obligated to take any affirmative action in order to cause the issuance or
transfer of shares of Restricted Stock hereunder to comply with any law, rule or
regulation that applies to the shares of Restricted Stock subject to this
Restricted Stock Agreement.
12. Amendment
and Termination. This Restricted Stock Agreement may not be terminated by
the Board or the Committee at any time without the written consent of
Participant. This Restricted Stock Agreement may be amended in writing by the
Company and Participant, provided the Company may amend this Restricted Stock
Agreement unilaterally (i) if the amendment does not adversely affect the
Participant’s rights hereunder in any material respect, (ii) if the Company
determines that an amendment is necessary to comply with Rule 16b-3 under the
Exchange Act, or (iii) if the Company determines that an amendment is necessary
to meet the requirements of the Code or to prevent adverse tax consequences to
the Participant. No amendment or termination of the Plan will adversely affect
the rights and privileges of Participant under this Restricted Stock Agreement
or to the Restricted Stock granted hereunder without the written consent of
Participant.
13. No
Guarantee of Employment. Neither this Restricted Stock Agreement nor the
award of Restricted Stock evidenced hereby shall confer upon Participant any
right with respect to continuance of employment or other service with the
Company or any Affiliate, nor shall it interfere in any way with any right the
Company or any Affiliate would otherwise have to terminate such Participant’s
employment or other service at any time.
14. Tax
Matters.
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(a) Company
shall have the right to (i) make deductions from the number of shares of
Restricted Stock otherwise deliverable upon vesting of the Restricted
Stock
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and
satisfaction of the conditions precedent under this Restricted Stock
Agreement in an amount sufficient to satisfy withholding of any federal,
state or local taxes required by law, or (ii) take such other action as
may be necessary or appropriate to satisfy any such tax withholding
obligations.
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(b) Under
Section 83 of the Code, the difference between the purchase price paid, if
any, for the shares of Restricted Stock and their fair market value on the
date of vesting when any forfeiture restrictions applicable to such shares
lapse will be reportable as ordinary income at that time. For this
purpose, “forfeiture restrictions” include the Company’s rights to
reacquire the shares of the unvested Restricted Stock described above.
Participant may elect to be taxed at the effective time of this award when
the shares are acquired rather than when such shares vest and cease to be
subject to such forfeiture restrictions by filing an election under
Section 83(b) of the Code with the Internal Revenue Service within thirty
(30) days after the date hereof. If such an election is made, Participant
will have to make a tax payment to the extent the purchase price, if any,
is less than the fair market value of the shares on the date hereof. No
tax payment will have to be made to the extent the purchase price, if any,
is at least equal to the fair market value of the shares on the date
hereof. Failure to make this filing within the thirty (30) day period will
result in the recognition of ordinary income by Participant as the shares
of Restricted Stock vest and the forfeiture restrictions
lapse.
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PARTICIPANT
ACKNOWLEDGES THAT IT IS PARTICIPANT’S SOLE RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b) IF PARTICIPANT
ELECTS TO DO SO, EVEN IF PARTICIPANT REQUESTS THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON PARTICIPANT’S BEHALF. PARTICIPANT
MUST AND IS RELYING SOLELY ON PARTICIPANT’S OWN ADVISORS WITH RESPECT TO
THE DECISION AS TO WHETHER OR NOT TO FILE ANY SECTION 83(b)
ELECTION.
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(c) Neither
Company nor the Board or Committee makes any commitment or guarantee that
any federal or state tax treatment will apply or be available to any
person eligible for the benefits under this Restricted Stock
Agreement.
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15. Community
Interest of Spouse. The community interest, if any, of any spouse of
Participant in any Restricted Stock shall be subject to all of the terms,
conditions and restrictions of this Restricted Stock Agreement and the
Plan.
16. Consent
to Electronic Delivery; Electronic Signature. In lieu of receiving
documents in paper format, Participant agrees, to the fullest extent permitted
by law, to accept electronic delivery of any documents that the Company may be
required to deliver (including, but not limited to, prospectuses, prospectus
supplements, grant or award notifications and agreements, account statements,
annual and quarterly reports, and all other forms of communications) in
connection with this and any other award made or offered by the Company.
Electronic delivery may be via a Company electronic mail system or by reference
to a location on a Company intranet to which Participant has access. Participant
hereby consents to any and all procedures the Company has established or may
establish for an electronic signature system for delivery and acceptance of any
such documents that the Company may be required to deliver, and agrees that his
or her electronic signature is the same as, and shall have the same force and
effect as, his or her manual signature.
17.
Severability. In the event that any provision of this Restricted Stock
Agreement shall be held illegal, invalid, or unenforceable for any reason, such
provision shall be fully severable, but shall not affect the remaining
provisions of this Restricted Stock Agreement, and this
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Restricted Stock
Agreement shall be construed and enforced as if the illegal, invalid, or
unenforceable provision had never been included herein.
18. Governing
Law. This Restricted Stock Agreement shall be construed in accordance
with the laws of the State of Delaware to the extent federal law does not
supersede and preempt Delaware law.
COMPANY
TETRA Technologies, Inc.
By:
Xxxxxx X.
Xxxxxxxxx
President
& Chief Executive Officer
PARTICIPANT
By:
Employee
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Exhibit
A
Assignment Separate from
Certificate
FOR VALUE
RECEIVED, [ ] hereby sells, assigns and transfers unto TETRA
Technologies, Inc., a Delaware corporation (the “Company”), [ ] ([
]) shares of common stock of the Company represented by Certificate No. [ ]
herewith and does
hereby irrevocably constitute and appoint , or his designee or successor,
attorney to transfer the said stock on the books of the Company with full power
of substitution in the premises.
Dated: [ ],
20[ ]
Print Name
Signature
Spouse Consent (if
applicable)
[ ] (Purchaser’s
spouse) indicates by the execution of this Assignment his or her consent to be
bound by the terms of the Restricted Stock Agreement as to his or her interests,
whether as community property or otherwise, if any, in the shares of common
stock of the Company.
Signature
INSTRUCTIONS:
PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE. THE PURPOSE OF
THIS ASSIGNMENT IS TO ENABLE THE COMPANY TO EXERCISE ITS “REPURCHASE OPTION” SET
FORTH IN THE RESTRICTED STOCK AGREEMENT WITHOUT REQUIRING ADDITIONAL SIGNATURES
ON THE PART OF THE PURCHASER.