CONTRIBUTION AND DISTRIBUTION. 1.1 Effective DATE, (the “Award Date”) the Corporation awards to EMPLOYEE (the “Participant”) XXX shares of phantom stock (the “Phantom Stock”) valued by dividing $ by the closing price of a share of the Corporation’s common stock (the “Common Stock”) on the Award Date, and subject to a seven-year vesting schedule. The vesting terms are outlined below and the anniversary date is the date corresponding to the Award Date in subsequent years. 1.2 The Phantom Stock will be paid out in cash upon vesting based on the number of shares vesting multiplied by, except as otherwise provided in Section 3 in the event of a Change in Control, the closing market price of a share of Common Stock on the vesting date or if no trade of Common Stock occurred on that date, then on the preceding date on which the markets were open and a trade occurred. The payment will be processed with the regular payroll cycle and paid out on a bi-weekly payroll date within 30 days following the vesting date. 1.3 The Participant shall become fully vested (a) if the Participant dies while he is employed by the Corporation, or (b) if the Participant becomes disabled, which means any physical or mental impairment which qualifies the Participant for disability benefits under the applicable long-term disability plan maintained by the Corporation or, if no such plan applies, which would qualify such Participant for disability benefits under the Federal Social Security System. Upon the termination of the Participant’s service to the Company, for any reason other than death or disability, the Participant shall forfeit the unvested portion of Phantom Stock.
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CONTRIBUTION AND DISTRIBUTION. 1.1 Effective DATE, (the “Award Date”) the Corporation awards to EMPLOYEE (the “Participant”) XXX shares of phantom stock (the “Phantom Stock”) valued by dividing $ by the closing price of a share of the Corporation’s common stock (the “Common Stock”) on the Award Date, and subject to a seven-year vesting schedule. The vesting terms are outlined below and the anniversary date is the date corresponding to the Award Date in subsequent years.
1.2 The Phantom Stock will be paid out in cash upon vesting based on the number of shares vesting multiplied by, except as otherwise provided in Section 3 in the event of a Change in Control, the closing market price of a share of Common Stock on the vesting date or if no trade of Common Stock occurred on that date, then on the preceding date on which the markets were open and a trade occurred. The payment will be processed with the regular payroll cycle and paid out on a bi-weekly payroll date within 30 days following the vesting date.
1.3 The Participant shall become fully vested (a) if the Participant dies while he is employed by the Corporation, or (b) if the Participant becomes disabled, which means any physical or mental impairment which qualifies the Participant for disability benefits under the applicable long-term disability plan maintained by the Corporation or, if no such plan applies, which would qualify such Participant for disability benefits under the Federal Social Security System. Upon the termination of the Participant’s service to the Company, for any reason other than death or disability, the Participant shall forfeit the unvested portion of Phantom Stock.. Vesting Schedule Vesting Date Vested Percentage Award Date 0 % 1st Anniversary Date 0 % 2nd Anniversary Date 16.667 % 3rd Anniversary Date 33.334 % 4th Anniversary Date 50.001 % 5th Anniversary Date 66.668 % 6th Anniversary Date 83.335 % 7th Anniversary Date 100 %
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Sources: Phantom Stock Award Agreement