NATIONAL PENN BANCSHARES, INC. LONG-TERM INCENTIVE COMPENSATION PLAN RESTRICTED STOCK AGREEMENT BETWEEN NATIONAL PENN BANCSHARES, INC. AND
Exhibit
10.2
NATIONAL PENN BANCSHARES,
INC.
LONG-TERM INCENTIVE
COMPENSATION PLAN
BETWEEN
NATIONAL
PENN BANCSHARES, INC.
AND
Xxxxxx X.
Xxxxxx
(the
Grantee)
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Date
of Grant:
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February
1, 2010
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Number
of Restricted
Stock
Shares:
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21,000
shares
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Restricted
(Vesting) Period:
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20%
on each Anniversary Date (or upon death, Disability, or Change in
Control)
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NATIONAL
PENN BANCSHARES, INC.
LONG-TERM INCENTIVE
COMPENSATION PLAN
This Restricted Stock Agreement dated
as of February 1, 2010, between National Penn Bancshares, Inc. (the
"Corporation") and Xxxxxx X. Xxxxxx (the "Grantee").
WITNESSETH:
1. Grant of Restricted
Stock
Pursuant to the National Penn
Bancshares, Inc. Long-Term Incentive Compensation Plan (the "Plan"), this
Agreement confirms the Corporation's grant to the Grantee, subject to the terms
and conditions of the Plan and to the terms and conditions set forth herein, of
an aggregate of 21,000 shares of common stock (without par value) of the
Corporation (“shares of Restricted Stock”).
2. Terms and
Conditions
It is understood and agreed that the
grant of shares of Restricted Stock is subject to the following terms and
conditions:
(a) Restricted (Vesting)
Period. The transfer of shares of Restricted Stock shall be
restricted until the date on which such shares vest, which shall occur as to 20%
of the shares on each anniversary of the Date of Grant (the “Restricted
Period”), but only if the Grantee remains continuously employed by the
Corporation or a subsidiary of the Corporation through such vesting
date.
(b) Escrow and Custody of
Shares. Unless and until the shares of Restricted Stock vest
as provided in Section 2(a), such shares will be registered in the name of the
Grantee and issued in certificate form, and such certificate or certificates
will be held by the Secretary of the Corporation as escrow agent (“Escrow
Agent”) and may not be sold, transferred, pledged, assigned or otherwise
alienated, hypothecated or disposed of until such shares become vested. The
Corporation may instruct the transfer agent for its common stock to place a
legend on the certificates representing the shares of Restricted Stock or
otherwise xxxx its records as to the restrictions on transfer set forth in this
Agreement. The certificate or certificates representing such shares of
Restricted Stock will not be delivered by the Escrow Agent to the Grantee unless
and until the shares of Restricted Stock have vested and all other terms and
conditions in this Agreement have been satisfied. The Escrow Agent
may, in its discretion, elect to enter into alternative arrangements for the
escrow of the shares of Restricted Stock, if, in the Escrow Agent’s discretion,
such shares are issued in book-entry form.
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(c) Dividend and Voting
Rights. The shares of Restricted Stock shall be entitled to
receive all dividends and other distributions paid with respect to shares of the
Corporation’s common stock during the Restricted Period. The Grantee
may exercise full voting rights with respect to the shares of Restricted Stock
during the Restricted Period.
(d) Forfeiture. Notwithstanding
any contrary provision of this Agreement, the balance of the shares of
Restricted Stock that do not vest during the Restricted Period pursuant to
Section 2(a) will thereupon be forfeited and automatically transferred to and
reacquired by the Corporation at no cost to the Corporation. The Grantee hereby
appoints the Escrow Agent, with full power of substitution, as the Grantee’s
true and lawful attorney-in-fact with irrevocable power and authority in the
name and on behalf of the Grantee to take any action and execute all documents
and instruments, including without limitation stock powers, which may be
necessary to transfer the unvested shares of Restricted Stock and the
certificate or certificates representing the same to the Corporation upon
determination of such vesting.
(e) Death, Disability,
Retirement or other Termination of Employment. If the
Grantee's employment with the Corporation or a subsidiary terminates due to
death, Disability (as defined in the Plan) or Retirement (as defined in the Plan
and also including a voluntary termination of employment at age 60 or more), or
if the Corporation or a subsidiary terminates the Grantee’s employment not for
Cause (as defined in the Plan), the continued employment requirement set forth
in Section 2(a) shall be deemed satisfied, and the Restricted Stock shall vest
on the date of his or her termination of employment.
(f) Termination for
Cause. If the Corporation or a subsidiary terminates the
Grantee’s employment for Cause (as defined in the Plan), any unvested shares of
Restricted Stock during Restricted Period shall automatically be forfeited and
returned to the Corporation.
(g) Transferability. All
rights with respect to the shares of Restricted Stock shall be exercisable
during the Grantee’s lifetime only by the Grantee. Prior to such shares becoming
vested, the shares of Restricted Stock shall be transferable only by Will or by
the laws of descent and distribution.
(h) Adjustment and Substitution
of Shares. If any merger, reorganization, consolidation,
recapitalization, separation, liquidation, stock dividend, split-up, share
combination, or other change in the corporate structure of the Corporation
affecting the Corporation’s shares of common stock shall occur, the number and
class of shares of Restricted Stock shall be adjusted or substituted for, as the
case may be, as shall be determined by the Committee to be appropriate and
equitable to prevent dilution or enlargement of rights, and provided that the
number of shares shall always be a whole number. Any adjustment or substitution
pursuant to this Section 2(h) shall meet the requirements of Section 409A of the
Code and shall be final and binding upon the Grantee.
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(i) No Right To Continued
Employment. This grant of shares of Restricted Stock shall not
confer upon the Grantee any right to continue as an employee of the Corporation
or subsidiary, nor shall it interfere in any way with the right of his or her
employer to terminate his or her employment at any time.
(j) Compliance with Law and
Regulations. This grant of shares of Restricted Stock shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any government or regulatory agency as may be
required. The Corporation shall not be required to issue or deliver
any certificates for common shares prior to (1) the effectiveness of a
registration statement under the Securities Act of 1933, as amended, with
respect to such shares, if deemed necessary or appropriate by counsel for the
Corporation, (2) the listing of such shares on any stock exchange on which the
common shares may then be listed, or upon the
Nasdaq
Stock Market if the common shares are then listed thereon, and (3) compliance
with all other applicable laws, regulations, rules and orders which may then be
in effect.
(k) Change-in-Control. If
any "Change-in-Control" (as defined in the Plan) occurs, the continued
employment requirement set forth in Section 2(a) shall be deemed satisfied, and
the Restricted Stock shall vest upon the date on which the "Change-in-Control"
occurs.
3. Investment
Representation
The Committee may require the Grantee
to furnish to the Corporation, prior to the issuance of any shares of Restricted
Stock, an agreement (in such form as such Committee may specify) in which the
Grantee represents that the shares acquired by him or her are being acquired for
investment and not with a view to the sale or distribution thereof.
4. Grantee Bound by
Plan
The Grantee hereby acknowledges receipt
of a copy of the Plan and agrees to be bound by all the terms and provisions of
the Plan, as in effect on the date hereof and as it may be amended from time to
time in accordance with its terms, all of which terms and provisions are
incorporated herein by reference. If there shall be any inconsistency
between the terms and provisions of the Plan, as in effect from time to time,
and those of this Agreement, the terms and provisions of the Plan, as in effect
from time to time, shall control.
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5.
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Committee
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All references herein to the
“Committee” mean the Compensation Committee of the Board of Directors of the
Corporation (or any successor committee designated by the Board of Directors to
administer the Plan).
6. Section 83(b)
Election
The Grantee acknowledges that an
election under Section 83(b) of the Code may be available to the
Grantee for Federal income tax purposes and that such election, if desired, must
be made within thirty (30) days of the date of this Agreement. The Grantee
acknowledges that whether to make such election is the responsibility of the
Grantee, not the Corporation, and that the Grantee should consult the Grantee’s
tax advisor with respect to the election and all other tax aspects associated
with this Agreement. The Grantee may make the election as to any or all of the
Restricted Stock.
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7. Withholding of
Taxes
The Corporation may require as a
condition precedent to the issuance of any shares of Restricted Stock, or their
release from the escrow established under Section 2(b), that appropriate
arrangements be made for the withholding of any applicable Federal, state and
local taxes.
8. Governing
Law
This Agreement shall be construed and
enforced in accordance with the laws of the Commonwealth of Pennsylvania, other
than any choice of law provisions calling for the application of laws of another
jurisdiction.
9. Notices
Any notice hereunder to the Corporation
shall be addressed to it at its office, Philadelphia and Xxxxxxx Xxxxxxx,
Xxxxxxxxx, Xxxxxxxxxxxx 00000, Attention: Corporate Secretary, and
any
notice
hereunder to Grantee shall be addressed to him or her at the address below,
subject to the right of either party to designate at any time hereafter in
writing some other address.
IN WITNESS WHEREOF, National Penn
Bancshares, Inc. has caused this Agreement to
be
executed and the Grantee has executed this Agreement, both as of the day and
year first above written.
NATIONAL
PENN BANCSHARES, INC.
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GRANTEE
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By: _____________________________
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J.
Xxxxx Xxxxxxxx, Xx.
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Signature
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Chairman,
Compensation Committee
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Xxxxxx X.
Xxxxxx
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Print
Name
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