THE BON-TON STORES, INC. RESTRICTED STOCK AGREEMENT
EXHIBIT 10.1
THE BON-TON STORES, INC.
This Restricted Stock Agreement dated as of
________ ___, 20___ (“Agreement”), between The
Bon-Ton Stores, Inc. (the “Company”) and ________
(“Grantee”).
1. Definitions. As used herein:
(a) “Committee” means the Human Resources and Compensation Committee of the
Board of Directors of the Company, or such other committee as may be designated by the Board
of Directors pursuant to the Plan.
(b) “Date of Grant” means
________ ___, 20___, the date on which the Company
awarded the Restricted Stock (the “Award”).
(c) “Forfeiture Date” means any date during the Restricted Period on which
Grantee’s employment with the Company or an Affiliate of the Company terminates for any
reason other than death or disability, within the meaning of subsection 22(e)(3) of the
Internal Revenue Code of 1986, as amended (the “Code”). For purposes of this Agreement,
“Affiliate” shall mean a corporation that is a parent corporation or a subsidiary
corporation with respect to the Company within the meaning of Section 424(e) or (f) of the
Code.
(d) “Plan” means The Bon-Ton Stores, Inc. 2009 Omnibus Incentive Plan, as may
be amended from time to time.
(e) “Restricted Period” with respect to any shares of Restricted Stock (as
hereinafter defined) means the period beginning on the Date of Grant and ending on the
Vesting Date for such shares.
(f) “Vesting Date” means the earlier of: (i) the date of Grantee’s termination
of employment by reason of death or disability, and (ii) the date set as upon which the
Restricted Stock shall vest.
All other capitalized terms used herein shall have the meaning set forth in the Plan except to
the extent the context clearly requires otherwise. This Agreement is intended to be consistent
with the terms of the Plan and is subject in all regards to the terms of the Plan. In any case
where there is a conflict between the terms of this Agreement and the terms of the Plan, the
conflict shall be resolved in favor of the Plan.
2. Grant of Restricted Stock. Subject to the terms and conditions set forth herein
and in the Plan, the Company grants to Grantee
________ (_____) shares of the Company’s Common
Stock, par value $.01 (the “Restricted Stock”). All of the Restricted Stock shall vest on
_______ ___, 20__.
3. Restrictions on Restricted Stock. Subject to the terms and conditions set forth
herein and in the Plan, Grantee shall not be permitted to sell, transfer, pledge or assign any
Restricted Stock during such shares’ Restricted Period.
4. Lapse of Restrictions. Subject to the terms and conditions set forth herein and in
the Plan, the restrictions on Restricted Stock set forth in Paragraph 3 shall lapse on such shares’
Vesting Date;
provided, however, that on such Vesting Date Grantee is, and has continuously been, an
employee of the Company or an Affiliate of the Company during such shares’ Restricted Period.
5. Forfeiture of Restricted Stock. Subject to the terms and conditions set forth
herein and in the Plan, if Grantee’s employment with the Company or an Affiliate of the Company
terminates during the Restricted Period for any reason other than death or disability, within the
meaning of the Code, Grantee shall forfeit any Restricted Stock still subject to restrictions as of
the Forfeiture Date. Upon a forfeiture of any shares of Restricted Stock as provided in this
Paragraph 5, the shares of Restricted Stock so forfeited shall be reacquired by the Company without
consideration.
6. Rights of Grantee. Except for the restrictions set forth in Paragraph 3, during
the Restricted Period Grantee shall have all of the rights of a shareholder with respect to the
Restricted Stock, including the right to vote the Restricted Stock to the same extent that such
shares could be voted if they were not subject to the restrictions set forth in this Agreement. Any
cash dividends payable with respect to the Restricted Stock during the Restricted Period shall be
paid to Grantee. Any extraordinary dividends or dividends that are in the nature of a distribution
of shares or are otherwise equivalent to a stock split, shall be subject to the same restrictions
as apply to the Restricted Stock with respect to which such extraordinary dividends or shares were
issued and shall be forfeited in accordance with Paragraph 5 unless the restrictions lapse in
accordance with Paragraph 4.
7. Change of Control of the Company. In the event of a Change of Control, the
Committee may take whatever action with respect to the Restricted Stock it deems necessary or
desirable, including, without limitation, removing any restrictions or imposing any additional
restrictions on such Restricted Stock.
8. Notices. Any notice to be given to the Company shall be addressed to the General
Counsel of the Company at its principal executive office, and any notice to be given to Grantee
shall be addressed to Grantee at the address then appearing on the personnel records of the Company
or the Affiliate of the Company by which he or she is employed, or at such other address as either
party hereafter may designate in writing to the other. Any such notice shall be deemed to have
been duly given when personally delivered, sent by recognized courier service, or by other
messenger, or when deposited in the United States mail, addressed as aforesaid, registered or
certified mail, and with proper postage and registration or certification fees prepaid.
9. Securities Laws. The Committee may from time to time impose any conditions on the
Restricted Stock as it deems necessary or advisable to ensure that all rights granted under the
Plan satisfy the conditions of Rule 16b-3 promulgated pursuant to the Securities Exchange Act of
1934, as amended.
10. Delivery of Shares. Upon a Vesting Date, the Company shall notify Grantee (or
Grantee’s personal representative, heir or legatee in the event of Grantee’s death) that the
restrictions on the Restricted Stock have lapsed, and shall, without payment from Grantee for such
Restricted Stock, upon such Grantee’s request deliver a certificate for such Restricted Stock
without any legend or restrictions, except for such restrictions as may be imposed by the
Committee, in its sole judgment, under Paragraph 9, provided that no certificates for shares will
be delivered to Grantee (or to his or her personal representative, heir or legatee) until
appropriate arrangements have been made with the Company for the withholding of any taxes which may
be due with respect to such shares. The Company may condition delivery of certificates for shares
upon the prior receipt from Grantee of any undertakings which it may determine are required to
assure that the certificates are being issued in compliance with federal and state securities laws.
The right to payment of any fractional shares shall be satisfied in cash, measured by the product
of the fractional amount times the Fair Market Value of a share on the Vesting Date.
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11. Status of Restricted Stock. The Restricted Stock is intended to constitute
property that is subject to a substantial risk of forfeiture during the Restricted Period, and
subject to federal income tax in accordance with section 83 of the Code. Section 83 generally
provides that Grantee will recognize compensation income with respect to the Restricted Stock on
such Restricted Stock’s Vesting Date in an amount equal to the then fair market value of the shares
for which restrictions have lapsed. Alternatively, Grantee may elect, pursuant to Section 83(b) of
the Code, to recognize compensation income for all or any part of the Restricted Stock at the Date
of Grant in an amount equal to the fair market value of the Restricted Stock subject to the
election on the Date of Grant. Such election must be made within 30 days of the Date of Grant and
Grantee shall immediately notify the Company if such an election is made. Grantee should consult
his or her tax advisors to determine whether a Section 83(b) election is appropriate.
12. Administration. This Award has been granted pursuant to and is subject to the
terms and provisions of the Plan. All questions of interpretation and application of the Plan and
this Award shall be determined by the Committee. The Committee’s determination shall be final,
binding and conclusive.
13. Award Not to Affect Employment. Nothing herein contained shall affect the right
of the Company or any Affiliate to terminate Grantee’s employment, services, responsibilities,
duties, or authority to represent the Company or any Affiliate at any time for any reason
whatsoever.
14. Withholding of Taxes. Whenever the Company proposes or is required to deliver or
transfer shares in connection with this Award, the Company shall have the right to (a) require
Grantee to remit to the Company an amount sufficient to satisfy any federal, state and/or local
withholding tax requirements prior to the delivery or transfer of any certificate or certificates
for such shares or (b) take whatever action it deems necessary to protect its interest with respect
to tax liabilities.
15. Governing Law. The validity, performance, construction and effect of this
Agreement shall be governed by the laws of the Commonwealth of Pennsylvania, without giving effect
to principles of conflicts of law.
16. Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter herein. This Agreement
supersedes all prior agreements and understandings between the parties with respect to such subject
matter.
IN WITNESS WHEREOF, the parties, intending to be legally bound, have executed this Agreement
as of the day and year first above written.
| THE BON-TON STORES, INC. |
||||
| By: | ||||
| Xxxxx X. Xxxxxxx | ||||
| President and Chief Executive Officer | ||||
| Grantee: | ||||
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