JACK IN THE
BOX INC.
RESTRICTED STOCK AWARD
UNDER THE 2004 STOCK INCENTIVE PLAN
THIS
AGREEMENT is made as of [date] between Jack in the Box Inc., a
Delaware corporation (the “Company”), and [Name] (the
“Awardee”).
The
Compensation Committee (the “Committee”) of the Board
of Directors of the Company which administers the Company’s
2004 Stock Incentive Plan (the “Plan”), has granted to
the Awardee as of [grant date], this award of Restricted Stock on
the terms and conditions set forth herein.
In
consideration of the foregoing and of the mutual covenants set
forth herein and other good and valuable consideration, the parties
hereto agree as follows:
1.
RESTRICTED STOCK AWARD. The Committee hereby grants [number
of shares (#shares)] shares of common stock of the Company, par
value $0.01 per share (the “Award”) to the Awardee. As
of the date of this Award, the Awardee will acquire and the Company
will issue, subject to the terms and conditions set forth herein,
the number of shares of Common Stock of the Company, par value
$0.01 per share (“Common Stock”) provided under this
Award. As a condition to the issuance of the Award, the Awardee
shall execute and deliver to the Company along with this executed
Agreement (a) the Joint Escrow Instructions in the form
attached to this Agreement and (b) the Assignment Separate
from Certificate duly endorsed (with date and number of shares
blank) in the form attached to this Agreement.
2.
VESTING. Notwithstanding any other provision of the Plan to
the contrary, and except as may be provided in the sole and
absolute discretion of the Company, or as provided in
Section 13 (Terminating Transactions) of this Agreement, no
shares of Common Stock issued under this Award shall become vested
at any time prior to the Awardee’s termination of employment
with the Company. Upon the Awardee’s termination of
employment, that portion of the Award which shall be considered
vested as of such termination date, shall be determined in
accordance with Section 6 of this Agreement.
If any
shares subject to this award would otherwise become vested on a day
on which the sale of such shares would violate the provisions of
the Company’s Insider Trading policy, then such vesting
automatically shall be deemed to occur on the next day on which the
sale of such shares would not violate the Insider Trading
policy.
3.
CONSIDERATION. The Company acknowledges that Awardee has
earned the Award Shares in the form of services previously rendered
to the Company or a subsidiary pursuant to Delaware Code
Section 153.
4.
AWARD AS COMPENSATION. No amount attributable to this Award
shall be considered as compensation for the purposes of any other
Company sponsored plans.
5.
CERTIFICATE REGISTRATION. The certificate for the shares of
Common Stock underlying this Award shall be registered in the name
of the Awardee (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the
Company).
6. TERMINATION OF EMPLOYMENT.
(a)
Termination for Cause. If the Awardee is terminated for
cause (as determined by the Company’s Board of Directors (the
“Board”) in its sole discretion) prior to [date
10 years from grant date], then all of the shares of Common
Stock underlying this Award will be automatically forfeited by the
Awardee concurrently with such termination of employment, unless
otherwise determined by the Board in its sole discretion. If the
Awardee is terminated for cause prior to [date 10 years from
grant date], and unless otherwise determined by the Board in its
sole discretion, the Awardee shall not be deemed vested in any
portion of this Award, regardless of any vesting percentage which
might have applied to such Award on account of this Section 6
for any other reason.
(b)
Involuntary Termination or Voluntary Termination. If the
Awardee ceases to be employed by the Company, its parent or a
subsidiary because of Awardee’s involuntary termination
(other than for cause as described above) or voluntary termination,
before the Awardee is eligible to retire under a Company sponsored
retirement plan, then that portion of the Award which shall be
considered vested on such termination shall be, unless otherwise
determined by the Board in its sole discretion, calculated in
accordance with the following schedule.
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Date of
Termination
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Vesting
Percentage
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Prior to [Date 3 years from grant
date]
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0
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%
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On or after [Date 3 years from grant
date]
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15
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%
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On or after [Date 4 years from grant
date]
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20
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%
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On or after [Date 5 years from grant
date]
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25
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%
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On or after [Date 6 years from grant
date]
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30
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%
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On or after [Date 7 years from grant
date]
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35
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%
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On or after [Date 8 years from grant
date]
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40
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%
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On or after [Date 9 years from grant
date]
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45
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%
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On or after [Date 10 years from grant
date]
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100
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%
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Any portion
of the Award which is not vested on the date of termination of
employment, or determined to be vested by the Board in its sole
discretion, shall be forfeited as of the date of termination of
employment. It shall be the responsibility of the Awardee to notify
the Company of any changes in address. As used in this Agreement,
the term “parent” means any present or future
corporation which would be a “parent corporation” of
the Company as defined in Section 424(e) of the Internal Revenue
Code and, “subsidiary” means any present or future
corporation which would be a “subsidiary corporation”
of the Company as defined in Section 424(f) of the Internal Revenue
Code.
(c)
Retirement. If Awardee is eligible to retire, defined herein
as reaching age 55 with 10 or more years of service with the
Company, its parent, or a subsidiary and ceases to be employed by
the Company, its parent or a subsidiary for any reason other than
(a) termination for cause, as determined by the Company in its
sole discretion, or, (b) the Awardees death or Total and
Permanent Disability (as defined below), then this Award shall
become vested on such termination date in an amount equal to the
greater of (i) such vesting as would have been determined by
assuming 30% of the Award vested on [date 3 years from grant
date], and thereafter an additional 10% of the shares subject to
this Award shall have become vested on each anniversary date of the
Award following [date 3 years from grant date] until such time
as the Award became 100% vested on the date 10 years after the
anniversary of the original grant of this Award, or
(ii) provided that as of [date 3 years from grant date],
the Awardee is still employed by the Company, and had been
continuously employed by the Company since the date this Award was
granted, such vesting as would have occurred had 10% of the Award
been determined to be vested for each year of service the Awardee
provided to the Company, or (iii) in such greater amount as
may be determined by the Board in its sole discretion. In no event
however shall any portion of this Award be considered vested prior
to the Awardee’s termination date. It shall be the
responsibility of the Awardee to notify the Company of any changes
in address.
(d)
Disability. If Awardee shall suffer Total and Permanent
Disability while in the employment of the Company, its parent or a
subsidiary, then this Award will become 100% vested on such date
the Awardee terminates employment on account of such Total and
Permanent Disability. As used in this Agreement “Total and
Permanent Disability” is defined as a physical or mental
condition that results in a total and permanent disability to such
extent that the Participant is eligible for disability benefits
under the federal Social Security Act.
(e)
Death. If Awardee dies while in the employment of the
Company, its parent or a subsidiary, and the Awardee had not been
determined to have suffered Total and Permanent Disability within
ninety (90) days of such Awardee’s death, then this
Award will become 100% vested on the date the Awardee terminates
employment on account of death. The Award shall be considered
transferred to the person or persons (the “Heir”) to
whom Awardee’s rights under the Award passed by will or by
the applicable laws of descent and distribution, as to all shares
of Common Stock granted under this Award. It shall be the
responsibility of the Heir to notify the Company of any changes in
address.
7.
COMPANY REACQUISITION RIGHT. In the event that (a) the
Awardee’s employment terminates for any reason or no reason,
with or without cause, or (b) the Awardee, the Awardee’s
legal representative, or other holder of the shares of Common Stock
subject to this Award, attempts to sell, exchange, transfer,
pledge, or otherwise dispose of any portion of this Award prior to
its distribution from the escrow established in accordance with
Section 8 of this Agreement, the Company shall automatically
reacquire such shares underlying the applicable portion of this
Award, and the Awardee shall not be entitled to any payment
therefore (the “Company Reacquisition
Right”).
8.
ESCROW. To ensure that shares of Common Stock subject to the
Company Reacquisition Right will be available for reacquisition,
the Awardee agrees to deliver to and deposit with an escrow agent
designated by the Company the certificate evidencing the shares of
Common Stock subject to the Award, together with an Assignment
Separate from Certificate with respect to such certificate duly
endorsed in the form attached to this Agreement, to be held by the
agent under the terms and conditions of the Joint Escrow
Instructions in the form attached to this Agreement (the
“Escrow”). The Company shall bear the expenses of the
Escrow.
As
soon as practicable after the expiration of the Company’s
Reacquisition Right with respect to any shares underlying this
Award, the Company shall give to the escrow agent a written notice
directing the escrow agent to deliver such shares of Common Stock
to the Awardee. As soon as practicable after receipt of such
notice, the escrow
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