Exhibit 10(b)
AWARD CERTIFICATE
Restricted Stock Award
This certifies that [name]
is granted a Restricted Stock Award for **[number]* shares of Common Stock,
no par value, of Darden Restaurants, Inc., a Florida corporation.
Social Security Number:
Grant Date: _____________ , 200_
Expiration Date of Restricted Period: [June 30, ____] [vesting schedule]
This Restricted Stock Award is governed by, and subject in
all respects to, the terms and conditions of the Restricted
Stock Award Agreement, a copy of which is attached to and
made a part of this document, and the Darden Restaurants,
Inc. 2002 Stock Incentive Plan, a copy of which is available
upon request. This Award Certificate has been duly executed,
by manual or facsimile signature, on behalf of Darden Restaurants, Inc.
[signature] [signature]
Chairman of the Board DARDEN RESTAURANTS, INC. Senior Vice President
Chief Executive Officer General Counsel and Secretary
DARDEN RESTAURANTS, INC.
2002 STOCK INCENTIVE PLAN
RESTRICTED STOCK AWARD AGREEMENT
This Restricted Stock Award Agreement is between Darden Restaurants, Inc.,
a Florida corporation (the "Company"), and you, the person named in the attached
Award Certificate who is an employee of the Company or one of its Affiliates.
This Agreement is effective as of the date of grant set forth in the attached
Award Certificate (the "Grant Date").
The Company wishes to award to you a number of shares of the Company's
Common Stock, no par value (the "Common Stock"), subject to certain restrictions
as provided in this Agreement, in order to carry out the purpose of the
Company's 2002 Stock Incentive Plan (the "Plan").
Accordingly, for good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the Company and you hereby agree as follows:
1. Award of Restricted Stock.
The Company hereby grants to you, effective as of the Grant Date, an Award
of Restricted Stock for that number of shares of Common Stock set forth in the
attached Award Certificate (the "Shares"), on the terms and conditions set forth
in this Agreement and the Award Certificate and in accordance with the terms of
the Plan.
2. Rights with Respect to the Shares.
With respect to the Shares, you shall be entitled to exercise the rights of
a shareholder of Common Stock of the Company, including the right to vote the
Shares and the right to receive cash dividends thereon as provided in Section 8
of this Agreement, unless and until the Shares are forfeited pursuant to Section
5 hereof. Your rights with respect to the Shares shall remain forfeitable at all
times prior to the date or dates on which such rights become vested, and the
restrictions with respect to the Shares lapse, in accordance with Section 3, 4
or 5 hereof.
3. Vesting.
Subject to the terms and conditions of this Agreement, the Shares shall
vest, and the restrictions with respect to the Shares shall lapse, on the date
or dates and in the amount or amounts set forth in the attached Award
Certificate if you remain continuously employed by the Company or an Affiliate
of the Company until the respective vesting dates.
4. Change of Control.
Notwithstanding the vesting provisions contained in Section 3 above, but
subject to the other terms and conditions in this Agreement, upon the occurrence
of a Change of Control (as defined below) you shall become immediately and
unconditionally vested in all Shares and the
restrictions with respect to all of the Shares shall lapse. For purposes of this
Agreement, "Change of Control" shall mean any of the following events:
(a) any person (including a group as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended) becomes, directly or indirectly,
the beneficial owner of 20% or more of the shares of the Company entitled to
vote for the election of directors;
(b) as a result of or in connection with any cash tender offer, exchange
offer, merger or other business combination, sale of assets or contested
election, or combination of the foregoing, the persons who were directors of the
Company just prior to such event cease to constitute a majority of the Company's
Board of Directors; or
(c) the consummation of a transaction in which the Company ceases to be an
independent publicly-owned corporation or the consummation of a sale or other
disposition of all or substantially all of the assets of the Company.
5. Early Vesting; Forfeiture; Automatic Conversion to Restricted Stock
Units; Deposit Shares.
(a) If you cease to be employed by the Company or an Affiliate of the
Company prior to the vesting of the Shares pursuant to Section 3 or 4 hereof,
your rights to all of the unvested Shares shall be immediately and irrevocably
forfeited, including the right to vote such Shares and the right to receive cash
dividends on such Shares, except that:
(i) if (A) the Company or an Affiliate of the Company terminates your
employment involuntarily and not for cause (as determined by the Committee
administering the Plan) prior to the vesting of the Shares pursuant to
Section 3 or 4 hereof, (B) your combined age and years of service with the
Company or an Affiliate of the Company equal at least 70 and (C) you did
not hold the title of vice president or above at the Company, GMRI, Inc. or
Darden Corporation on the Grant Date, then the Shares will vest on a pro
rata basis on the date of your termination of employment, based on the
number of full months of employment completed from the Grant Date to the
date of your termination of employment divided by the number of full months
in the vesting period for any unvested Shares, and your rights to all of
the unvested Shares shall be immediately and irrevocably forfeited;
(ii) if you retire on or after age 65 with five years of service with
the Company or an Affiliate of the Company ("Normal Retirement") prior to
the vesting of the Shares pursuant to Section 3 or 4 hereof, you shall
become immediately and unconditionally vested in all Shares and the
restrictions with respect to all Shares shall lapse on the date of your
Normal Retirement;
(iii) if you retire on or after age 55 with ten years of service with
the Company or an Affiliate of the Company but before Normal Retirement
("Early Retirement") and you did not hold the title of vice president or
above at the Company, GMRI, Inc. or Darden Corporation on the Grant Date,
the Shares will vest on a pro rata basis on the date of your Early
Retirement, based on the number of full months of employment completed from
the Grant Date to the date of your Early Retirement divided by the number
of full
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months in the vesting period for any unvested Shares, and your rights to
all of the unvested Shares shall be immediately and irrevocably forfeited;
or
(iv) if you die prior to the vesting of the Shares pursuant to Section
3 or 4 hereof, you shall become immediately and unconditionally vested in
all Shares and the restrictions with respect to all Shares shall lapse on
the date of your death. No transfer by will or the applicable laws of
descent and distribution of any Shares which vest by reason of your death
shall be effective to bind the Company unless the Committee administering
the Plan shall have been furnished with written notice of such transfer and
a copy of the will or such other evidence as the Committee may deem
necessary to establish the validity of the transfer.
(b) If you did not hold the title of vice president or above at the
Company, GMRI, Inc. or Darden Corporation on the Grant Date, and if, as
determined in January of each year, you will attain the age of 55 with 10 years
of service with the Company or an Affiliate of the Company during the one-year
period beginning on the last business day of January of that year (the
"Automatic Conversion Date") and ending on the last business day of January of
the following year, then (i) as of the Automatic Conversion Date, your rights to
all of the Shares that are unvested on the Automatic Conversion Date shall be
immediately and irrevocably forfeited, including the right to vote such Shares
and the right to receive cash dividends on such Shares, and (ii) you shall
automatically receive, effective as of the Automatic Conversion Date, an award
of restricted stock units under the Plan for that number of units equal to the
number of Shares so forfeited, dated as of the Grant Date, with the same vesting
schedule as provided in this Agreement and containing such other terms and
conditions as are set forth in or established under the Plan.
(c) If, as determined in January of each year, you will attain the age of
65 with five years of service with the Company or an Affiliate of the Company
during the one-year period beginning on the last business day of January of that
year (the "Deposit Date") and ending on the last business day of January of the
following year, then you may elect to place on deposit with the Company one
personally owned share of Common Stock (the "Deposit Shares") for every two
Shares that are unvested on the Deposit Date. If you withdraw any or all of the
Deposit Shares before the Shares have vested, two Shares that are unvested will
be forfeited for each Deposit Share withdrawn. The Company will release to you
one Deposit Share for every two Shares that vest following the Deposit Date. In
lieu of physical deposit of Share certificates with the Company, the Company may
accept such other form or evidence of deposit as it deems appropriate.
6. Restriction on Transfer.
Until the Shares vest pursuant to Section 3, 4 or 5 hereof, none of the
Shares may be sold, assigned, transferred, pledged, attached or otherwise
encumbered, and no attempt to transfer the Shares, whether voluntary or
involuntary, by operation of law or otherwise, shall vest the transferee with
any interest or right in or with respect to the Shares.
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7. Issuance and Custody of Certificates.
(a) The Company shall cause the Shares to be issued in your name, either by
book-entry registration or issuance of a stock certificate or certificates,
which certificate or certificates shall be held by the Company. The Shares shall
be restricted from transfer and shall be subject to an appropriate stop-transfer
order. If any certificate is issued, the certificate shall bear an appropriate
legend referring to the restrictions applicable to the Shares.
(b) If any certificate is issued, you shall be required to execute and
deliver to the Company a stock power or stock powers relating to the Shares as a
condition to the receipt of this Award of Restricted Stock.
(c) After any Shares vest pursuant to Section 3, 4 or 5 hereof, and
following payment of the applicable withholding taxes pursuant to Section 9
hereof, the Company shall promptly cause such vested Shares (less any shares
withheld to pay taxes), free of the restrictions and/or legend described in
Section 7(a) hereof, to be delivered, either by book-entry registration or in
the form of a certificate or certificates, registered in your name or in the
names of your legal representatives, beneficiaries or heirs, as the case may be.
8. Distributions and Adjustments.
(a) If any Shares vest subsequent to any change in the number or character
of the Common Stock of the Company (through any stock dividend or other
distribution, recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation split-up, spin-off, combination,
repurchase or exchange of shares or otherwise) occurring after the Grant Date,
you shall then receive upon such vesting the number and type of securities or
other consideration which you would have received if such Shares had vested
prior to the event changing the number or character of the outstanding Common
Stock.
(b) Any additional shares of Common Stock of the Company, any other
securities of the Company and any other property (except for cash dividends or
other cash distributions) distributed with respect to the Shares prior to the
date or dates the Shares vest shall be subject to the same restrictions, terms
and conditions as the Shares to which they relate and shall be promptly
deposited with the Secretary of the Company or a custodian designated by the
Secretary.
(c) Any cash dividends or other cash distributions payable with respect to
the Shares shall be distributed to you at the same time cash dividends or other
cash distributions are distributed to shareholders of the Company generally.
9. Taxes.
(a) You acknowledge that you will consult with your personal tax advisor
regarding the income tax consequences of the grant of the Shares, payment of
dividends on the Shares, the vesting of the Shares and any other matters related
to this Agreement. In order to comply with all applicable federal, state or
local income tax laws or regulations, the Company may take such action as it
deems appropriate to ensure that all applicable federal, state or local payroll,
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withholding, income or other taxes, which are your sole and absolute
responsibility, are withheld or collected from you.
(b) In accordance with the terms of the Plan, and such rules as may be
adopted by the Committee administering the Plan, you may elect to satisfy any
applicable tax withholding obligations arising from the receipt of, or the lapse
of restrictions relating to, the Shares by (i) delivering cash (including check,
draft, money order or wire transfer made payable to the order of the Company),
(ii) having the Company withhold a portion of the Shares otherwise to be
delivered having a Fair Market Value equal to the amount of such taxes, or (iii)
delivering to the Company shares of Common Stock having a Fair Market Value
equal to the amount of such taxes. The Company will not deliver any fractional
Share but will pay, in lieu thereof, the Fair Market Value of such fractional
Share. Your election must be made on or before the date that the amount of tax
to be withheld is determined.
10. General Provisions.
(a) Interpretations. This Agreement is subject in all respects to the terms
of the Plan. A copy of the Plan is available upon your request. Terms used
herein
which are defined in the Plan shall have the respective meanings given to such
terms in the Plan, unless otherwise defined herein. In the event that any
provision of this Agreement is inconsistent with the terms of the Plan, the
terms of the Plan shall govern. Any question of administration or interpretation
arising under this Agreement shall be determined by the Committee administering
the Plan, and such determination shall be final, conclusive and binding upon all
parties in interest.
(b) No Right to Employment. Nothing in this Agreement or the Plan shall be
construed as giving you the right to be retained as an employee of the Company
or any Affiliate of the Company. In addition, the Company or an Affiliate of the
Company may at any time dismiss you from employment, free from any liability or
any claim under this Agreement, unless otherwise expressly provided in this
Agreement.
(c) Securities Matters. The Company shall not be required to deliver any
Shares until the requirements of any federal or state securities or other laws,
rules or regulations (including the rules of any securities exchange) as may be
determined by the Company to be applicable are satisfied.
(d) Headings. Headings are given to the sections and subsections of this
Agreement solely as a convenience to facilitate reference. Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of this Agreement or any provision hereof.
(e) Governing Law. The internal law, and not the law of conflicts, of the
State of Florida will govern all questions concerning the validity, construction
and effect of this Agreement.
(f) Notices. You should send all written notices regarding this Agreement
or the Plan to the Company at the following address:
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Darden Restaurants, Inc.
Supervisor, Stock Compensation Plans
5900 Lake Ellenor Drive
Orlando, FL 32809
(g) Award Certificate. This Restricted Stock Award Agreement is attached to
and made a part of an Award Certificate and shall have no force or effect unless
such Award Certificate is duly executed and delivered by the Company to you.
* * * * * * * *
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