[For Individuals w/o COC
Agreement]
Exhibit 10.2
LONGS DRUG STORES
CORPORATION
1995 LONG-TERM INCENTIVE
PLAN
RESTRICTED STOCK AWARD
AGREEMENT
Longs Drug Stores Corporation (the
“Company”) desiring to provide you,
<<Name>>, with a proprietary interest in the success of
the Company and its subsidiaries, and an incentive to continue to
perform services with the Company or a Subsidiary thereof, hereby
grants, as of <<Date>>, and you hereby accept, subject
to all the terms and conditions of this Agreement,
<<Shares>> restricted shares of the Common Shares of
the Company (the “Award”). This Award is subject to the
Longs Drug Stores Corporation 1995 Long-Term Incentive Plan, which
is incorporated herein by this reference, and the following terms
and conditions:
A. Retention and Delivery of
Share Certificates
1. The shares subject to this Award
shall be retained by the Company, or a party selected by the
Company, while they remain subject to any restrictions. These
shares will become available to you in installments over a four (4)
year period from the date of this Award (the “Restriction
Period”) provided you continue to render Service during the
Restriction Period and subject to satisfaction of the Performance
Goals (if any) established by the Committee for this Award. For
this Award, the time-based restrictions will lapse in installments,
and the shares will become available to you, as follows:
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|
|
|
|
|
Completed Years of Vesting
From Date of Award
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Percentage of Total
Shares for which
Restrictions Lapse
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Less than 1
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0
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%
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1, but less than 2
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25
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%
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2, but less than 3
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50
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%
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3, but less than 4
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75
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%
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4 or more
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100
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%
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For purposes of this Paragraph A.1,
a “Completed Year of Vesting” shall mean 365 days of
active Service as may be modified by Paragraph D.4.
2. You shall not be entitled to the
delivery of any certificate representing shares subject to this
Award unless and until all restrictions with respect to the shares
have lapsed and any other applicable terms and conditions of the
Award (with respect to such shares) have been satisfied. The
release of any vested restricted stock to you shall be effected
within ninety (90) days following the applicable date(s) of vesting
of shares pursuant to this Agreement.
3. Generally, you will realize
taxable income each time restrictions lapse on shares. You must
make arrangements to satisfy such tax obligations acceptable to the
Company or the shares will be forfeited.
4. You have the right to make an
election to be taxed on the Award in the year the Award is made
(under Section 83(b) of the Code). If you choose to make this
election, you must provide the Company with a copy of the election
filed with the Internal Revenue Service within thirty (30) days
from the date of grant of this Award. You must make arrangements to
satisfy applicable tax obligations acceptable to the Company or the
shares will be forfeited.
B. Dividends
1. You shall not be entitled to the
payment of dividends on the shares subject to this Award until all
restrictions have lapsed with respect to such shares and any other
applicable terms and conditions of the Award (with respect to such
shares) have been satisfied. No dividends shall be paid on any
shares which have been forfeited.
2. During the Restriction Period,
prior to the lapse of restrictions on shares, dividends on the
shares subject to this Award, including cash dividends on stock
dividends, will be paid into an interest bearing account. On the
lapse of restrictions on each installment during the Restriction
Period, all accumulated dividends together with interest thereon,
which are attributable to the shares for which the restrictions
have lapsed shall be paid to you. Payment of any accumulated
dividends and interest on the shares subject to this Award is
conditioned upon your timely payment of all state, local, federal,
or other taxes which the Company shall deem necessary or
appropriate to withhold.
3. In the event a stock dividend is
declared upon the shares subject to this Award, or in the event of
a stock split, the number of shares then subject to this Award
shall be adjusted proportionately. The shares provided by such
stock dividend or stock split shall be subject to the Restriction
Period as if they were part of the original Award.
C. Shareholder
Rights
Except as provided herein, you shall
have all rights of shareholders of the class of shares subject to
this Award during the Restriction Period.
D. Proration and Forfeiture of
Shares
1. If your Termination occurs during
the Restriction Period by reason of Normal Retirement, death or
“disability” (as defined in the Plan), then the
restrictions will lapse on a portion of additional shares subject
to the Award, including all accumulated dividends and interest
thereon, as follows. In such event, the restrictions will lapse on
a number shares equal to the difference between (a) the
number