RESTRICTED STOCK AWARD AGREEMENT (Pursuant to the EnergySolutions, Inc. 2007 Equity Incentive Plan)
Exhibit 10.6.9
RESTRICTED STOCK AWARD AGREEMENT
(Pursuant to the EnergySolutions, Inc. 2007 Equity Incentive Plan)
THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made effective as of , 20 (the “Grant Date”) by and between EnergySolutions, Inc., a Delaware corporation (with any successor, the “Company”), and (the “Participant”).
R E C I T A L S:
WHEREAS, the Company has adopted the EnergySolutions, Inc. 2007 Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan; and
WHEREAS, on , 20 , the Compensation Committee of the Board determined that it would be in the best interests of the Company and its stockholders to grant the restricted stock provided for herein to the Participant pursuant to the Plan and the terms set forth herein.
NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:
1. Restricted Stock Award. Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant, effective as of the Grant Date, Shares (the “Restricted Shares”), which shall vest and become nonforfeitable in accordance with Section 3.
2. Certificates. Each Restricted Share will be issued as a “book account” entry in the name of the Participant on the stock transfer books of the Company until it vests in accordance with the terms of this Agreement. Upon vesting, a certificate representing the amount of vested Restricted Shares shall be issued by the Company and delivered to the Participant or an account designated by the Participant.
3. Vesting.
(a) Vesting Schedule. Subject to the Participant’s continued employment on each vesting date, the Restricted Shares shall vest as follows:
(i) , 20 : [ ] Restricted Shares vest;
(ii) , 20 : [ ] Restricted Shares vest; and
(iii) , 20 : [ ] Restricted Shares vest.
(b) Acceleration of Vesting. The Participant’s unvested Restricted Shares, if any, shall immediately vest in full upon the occurrence of any the following events:
(i) upon the Participant’s inability due to death, illness or disability to continue serving as an employee of the Company;
(ii) upon the termination of Participant’s Service by the Company without Cause (defined below) within twenty-four months after a Change of Control; or
(iii) upon the termination of Participant’s Service by the Participant for Good Reason (defined below) within twenty-four months after a Change of Control.
(c) Forfeiture of Unvested Restricted Shares. If the Participant’s employment with the Company is terminated for any reason other than as set forth under paragraph (b) above, any Restricted Shares awarded to the Participant that are not vested as of the date of termination shall automatically terminate and no payment shall be made with respect to such unvested Restricted Shares.
4. No Right to Continued Employment. The granting of the Restricted Shares evidenced hereby and this Agreement shall impose no obligation on the Company or any of its subsidiaries or affiliates to continue the employment of the Participant and shall not lessen or affect any right that the Company or any of its subsidiaries or affiliates may have to terminate the employment of such Participant.
5. Securities Laws/Legend on Certificates. The issuance and delivery of certificates representing vested Restricted Shares shall comply with all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. If the Company deems it necessary to ensure that the issuance of securities under the Plan is not required to be registered under any applicable securities laws, each Participant to whom such security would be issued shall deliver to the Company an agreement or certificate containing such representations, warranties and covenants as the Company which satisfies such requirements. The certificates representing the vested Restricted Shares shall be subject to such stop transfer orders and other restrictions as the Committee may deem reasonably advisable, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
6. Transferability. The Restricted Shares may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any of its subsidiaries or affiliates; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. An approved form of Beneficiary Designation is attached hereto as Exhibit A. No such permitted transfer of the Restricted Shares to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof.
7. Adjustment of Restricted Shares. Adjustments to the Restricted Shares shall be made in accordance with the terms of the Plan.
8. Withholding. In the event required by federal or state law, the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the Restricted Shares, their grant, vesting or otherwise and to take such other action as
may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes.
9. Notices. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.
10. Entire Agreement. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.
11. Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
12. Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant’s assigns and the legal representatives, heirs and legatees of the Participant’s estate, whether or not any such person shall have become a party to this Agreement and agreed in writing to be joined herein and be bound by the terms hereof.
13. Choice of Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction.
SUBJECT TO THE TERMS OF THIS AGREEMENT, THE PARTIES AGREE THAT ANY AND ALL ACTIONS ARISING UNDER OR IN RESPECT OF THIS AGREEMENT SHALL BE LITIGATED IN THE FEDERAL OR STATE COURTS IN UTAH. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR ITSELF, HIMSELF OR HERSELF AND IN RESPECT OF ITS, HIS OR HER PROPERTY WITH RESPECT TO SUCH ACTION. EACH PARTY AGREES THAT VENUE WOULD BE PROPER IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
14. Restricted Shares Subject to the Plan. By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the prospectus relating to the Plan. The Restricted Shares are subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by
reference (subject to the limitation set forth in Section 15). 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 will govern and prevail. The Participant has had the opportunity to retain counsel, and has read carefully, and understands, the provisions of the Plan and the Agreement.
15. Amendment. The Committee may amend or alter this Agreement and the Restricted Shares granted hereunder at any time; provided that, subject to Articles 11, 12 and 13 of the Plan, no such amendment or alteration shall be made without the consent of the Participant if such action would materially diminish any of the rights of the Participant under this Agreement or with respect to the Restricted Shares.
16. Section 83(b) Election. In the event the Participant determines to make an election with the Internal Revenue Service (the “IRS”) under Section 83(b) of the Code and the regulations promulgated thereunder (the “83(b) Election”), the Participant shall provide a copy of such form to the Company promptly following its filing, which is required under current law to be filed with the IRS no later than thirty (30) days after the Grant Date of the Restricted Shares. The Participant is advised to consult with his or her own tax advisors regarding the purchase and holding of the Restricted Shares, and the Company shall bear no liability for any consequence of the Participant making and 83(b) Election or failing to make an 83(b) Election.
17. Definitions. For purposes of this Agreement:
“Cause” shall mean (i) a material breach by the Participant of the duties and responsibilities of the Participant or any material written policies or directives of the Company (other than as a result of incapacity due to physical or mental illness) which is (A) willful, reckless or intentional, and (B) not remedied within fifteen (15) days after receipt of written notice from the Company which specifically identifies the manner in which such breach has occurred; (ii) the Participant commits any felony or any misdemeanor involving willful misconduct (other than minor violations such as traffic violations) that causes material damage to the property, business or reputation of the Company, as determined in good faith by the Board; (iii) the Participant engages in a fraudulent or dishonest act that causes material damage to the property, business or reputation of the Company, as determined in good faith by the Board; (iv) the Participant engages in habitual insobriety or the use of illegal drugs or substances; or (v) the Participant commits a material breach of his fiduciary duties to the Company, as determined in good faith by the Board. The Company must notify the Participant of any event constituting Cause within ninety (90) days following the Company’s knowledge of its existence or such event shall not constitute Cause under this Agreement.
“Good Reason” shall mean (i) the material diminution of any of the Participant’s duties, responsibilities or authority without the Participant’s prior written consent; (ii) the assignment to the Participant of duties materially inconsistent with his position without the Participant’s prior written consent; (iii) any reduction in the Participant’s base salary without the Participant’s prior written consent unless all other executives who are parties to agreements similar to this one also agree to a comparable reduction in their base salaries; or (iv) unless agreed to in writing by the Participant, a relocation of the Participant’s principal place of business to a Company facility more than 50 miles away from Participant’s current location. The Participant must notify the Company of any event that constitutes Good Reason within ninety (90) days following the Participant’s knowledge of its existence or such event shall not constitute Good Reason under this Agreement, and the Company shall have a period of thirty (30) days during which it may remedy the event.
18. Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
19. 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.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties hereto have executed this Restricted Stock Award Agreement effective as of the date first written above.
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ENERGYSOLUTIONS, INC. | |
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By |
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Xxx X. Xxxxxxxxxxx |
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President & CEO |
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Agreed and acknowledged effective as |
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of the date first above written: |
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EXHIBIT A
Beneficiary Designation for Restricted Shares of EnergySolutions, Inc.
Signature(s) Required Below
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Instructions: |
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Type or print legibly in ink. Sign and date form. Return original to EnergySolutions’ Legal Services Administrator, and retain a copy for your records. |
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Participant’s Name |
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Social Security Number |
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Date of Birth |
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I hereby designate the beneficiary(ies) named below to receive my restricted shares of EnergySolutions, Inc. Unless otherwise provided in this request, if two or more primary beneficiaries are named, the shares shall be distributed pursuant to the terms of the Plan in equal portions (rounded to the nearest whole number) to the named primary beneficiaries if surviving the Participant, or to the survivor(s). If no primary beneficiary(ies) survive, the shares shall be distributed in like manner to the named contingent beneficiary(ies), if any. If no beneficiary survives, shares shall be distributed according to the terms of the Plan. The right of the Participant to change the beneficiary(ies) hereafter is reserved.
Primary Beneficiaries:
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Beneficiary Full Name |
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Complete Address |
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Date of Birth |
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Social Security Number |
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Relationship to Participant |
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Contingent Beneficiaries:
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This designation is revocable as to each beneficiary except when otherwise stated, and beneficiaries of like class shall share equally with right of survivorship. Any designation of an individual shall mean an individual living at the Participant’s death.
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Dated this |
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Xxxx |
Xxxxx |
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Signature of Participant |
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Signature of Irrevocable Beneficiary(ies), if any |
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Signature of Irrevocable Beneficiary(ies), if any |
