Document:

Exhibit
10.3

	
  Notice of Grant of Restricted Stock and Restricted Stock Agreement

  	
  

  

 

	
  Stockholder Name

  	
  Plan:

  	
  1999

  
	
  Address

  	
  ID:

  	
  ssn

  
	
  City, State Zip

  	
   

  	
   

  

 

Effective , you have been
granted #### shares of Restricted Stock of Papa John’s International, Inc. (the
“Company”), with a value (if unrestricted) of $          
per share as of the grant date.

	
  Shares

  	
   

  	
  Restriction
  Period

  	
   

  	
  Restriction
  End

  
	
  ####

  	
   

  	
  36 Months

  	
   

  	
   

  

 

The restrictions on the shares
of Restricted Stock will lapse at the end of the restriction period and the
shares will vest only upon certification by the Compensation Committee of the
Company’s Board of Directors that the Company has met applicable target
thresholds of compounded annual growth rate (CAGR) of LTIP Operating Income
over the Company’s fiscal years          
through             
as follows: At 12% or higher CAGR, 100% of the shares will vest; at 10% CAGR,
50% of the shares will vest; and at 5% CAGR, 33% of the shares will vest, with
pro rata vesting between the percentage thresholds.  Any achievement below 5% CAGR of LTIP
Operating Income will result in no vesting. 
All shares that do not vest at the end of the restriction period will be
forfeited to the Company.  This summary
of restrictions is qualified in its entirety by the terms and conditions of the
Restricted Stock Agreement included with this Notice.

By your signature and
the Company’s signature below, you and the Company agree that these shares are
granted under and governed by the terms and conditions of the Company’s
Restricted Stock Agreement, which are included with, and hereby incorporated by
reference into, this Notice.

	
   

  	
   

  	
   

  
	
  Papa John’s International, Inc.

  	
   

  	
  Date

  

 

	
   

  	
   

  	
   

  
	
  Stockholder
  Signature

  	
   

  	
  Date

  

 

PAPA JOHN’S INTERNATIONAL, INC.

RESTRICTED
STOCK AGREEMENT

1999 TEAM
MEMBER STOCK OWNERSHIP PLAN

THIS RESTRICTED STOCK AGREEMENT (“Agree­ment”) is made and entered into by
and between (i) PAPA JOHN’S
INTERNATIONAL, INC., a Delaware corporation (the “Compa­ny”), and
(ii) the individual (“Grantee”) named in the “Notice of Grant of
Restricted Stock” attached hereto and incorporated by reference herein as if
fully set out herein (the “Notice”). 
This Agreement is dated as of the date first set forth in the Notice.

Recitals:

A.            The
Company has adopted the Papa John’s International, Inc. 1999 Team Member Stock
Ownership Plan (the “Plan”) to promote the interests of the Company, its subsid­iaries
and its stockholders by encouraging eligible participants ­to pursue the
long-term growth, profitability and financial success of the Company, including
but not limited to investments in the Company’s common stock, par value $.01
per share (“Common Stock”).

B.            Pursuant
to the Plan, the Company has determined to award to Grantee shares of
restricted Common Stock subject to the terms, conditions, limitations and
restrictions provided under the Plan and in this Agreement (“Restricted Stock”).

Agreement:

NOW, THEREFORE, the Company and Grantee agree as follows:

1.             Grant
of Restricted Stock.  The Company hereby grants to Grantee, as a
matter of sepa­rate inducement and agreement, and not in lieu of any salary or
other compensa­tion for Grantee’s services as an employee, consultant or
advisor, the number of shares of Restricted Stock set forth in the Notice on
the terms and condi­tions set forth in this Agreement.

2.             Restrictions
and Restricted Period.

(a)           Restrictions.  Shares of Restricted Stock granted hereunder
may not be sold, transferred, pledged, assigned or otherwise alienated or
hypothecated (collectively, the “Restrictions”) until the end of the applicable
Restriction Period (as defined below) and shall be subject to a risk of
forfeiture as described in this Agreement. 
Except as otherwise set forth in Exhibit A attached hereto, which is
incorporated into this Agreement, Grantee shall not be required to pay any
consideration for the Restricted Stock.

(b)           Restriction Period.  Subject to the forfeiture provisions set
forth in this Agreement, the Restrictions shall lapse and the shares of
Restricted Stock shall become vested and transferable (provided that such
transfer is in accordance with all applicable securities laws and regulations)
after the last day of the restriction period (the “Restriction Period”) set forth
in Exhibit A, which is incorporated into this Agreement, and based upon
satisfaction of any performance goals set forth in Exhibit A (“Performance
Goals”).  To the extent that the
Performance Goals are not achieved, then the shares of Restricted Stock that
would otherwise vest upon the achievement of the Performance Goals shall be
forfeited to the Company.

(c)           Change in Control.  Upon a Change in Control, as defined
in the Plan, any Restrictions and other conditions pertaining to the Restricted
Stock held by Grantee shall lapse and such shares shall thereafter be
immediately transferable and nonforfeitable.

3.             Termination
of Service with the Company.  If the Grantee’s status as an Employee,
consultant or advisor is terminated for any reason other than death or
Disability prior to the expiration of the Restriction Period 

applicable to the
Restricted Stock then held by the Grantee, such shares shall thereupon be
forfeited immediately by Grantee and returned to the Company.  If Grantee’s status as an Employee,
consultant or advisor is terminated as a result of death or Disability prior to
the expiration of the Restriction Period applicable to the Restricted Stock
then held by Grantee, the Restrictions shall immediately lapse and such shares
shall thereafter be immediately transferable and nonforfeitable.  Notwithstanding anything in the Plan or this
Agreement to the contrary, the Compensation Committee of the Company’s Board of
Directors may determine, in its sole discretion, in the case of any termination
of Grantee’s status as an Employee, consultant or advisor other than for Cause,
that the restrictions on some or all of the shares of Restricted Stock awarded
to a Participant shall immediately lapse and, to the extent the Committee deems
appropriate, such shares shall thereafter be immediately transferable and
nonforfeitable.

4.             Restrictive
Covenants.  If Grantee engages in any conduct in breach
of any noncompetition, nonsolicitation or confidentiality obligations to the
Company under any agreement, policy or plan, then such conduct shall also be
deemed to be a breach of the terms of the Plan and this Agreement.  Upon such breach, any unvested shares of
Restricted Stock shall be immediately forfeited and returned to the Company.

5.             Rights
of Grantee as Stockholder.  From and after the date of
grant of the shares of Restricted Stock, and for so long as the Restricted
Stock is held by or for the benefit of Grantee, Grantee shall have all the
rights of a stockholder of the Company with respect to the Restricted Stock,
including but not limited to the rights to vote and to receive dividends.  If any dividends or distributions are paid in
Common Stock, such Common Stock shall be subject to the same restrictions as
the shares of Restricted Stock with respect to which they were paid.  Notwithstanding the foregoing, the payment of
any cash dividends declared or paid on shares of Restricted Stock shall be
deferred until the lapse of the Restrictions on such shares, such deferred dividends
to be held by the Company for the account of Grantee, together with such
credited interest on the amount of the deferred dividends account as the
Company may determine in its discretion. 
Deferred dividends, together with any accrued and credited interest,
shall be either paid to Grantee upon the lapse of the Restrictions (as soon as
practicable, but in any event not more than 45 days following the lapse of the
Restrictions) or forfeited to the Company upon forfeiture of the Restricted
Stock, as the case may be.

6.             Escrow
and Delivery of Restricted Stock.  Certificates (or an electronic
book entry on the books of the Company’s stock transfer agent) representing the
shares of Restricted Stock shall be issued and held by the Company (or its
stock transfer agent) in escrow, together with any stock transfer powers that
the Company may request of Grantee, and shall remain in the custody of the
Company (or its stock transfer agent) until (i) their delivery to Grantee or
Grantee’s estate upon the lapse of applicable Restrictions, or (ii) their forfeiture
and transfer to the Company as provided in this Agreement.  The appointment of an independent escrow
agent with respect to the Restricted Stock shall not be required.  Certificates (or an electronic book entry)
representing those shares of Restricted Stock with respect to which the
Restrictions have lapsed shall be delivered to Grantee, or Grantee’s estate, as
the case may be, as soon as practicable thereafter (but in any event not more
than 45 days following the lapse of the Restrictions), and such certificates
shall not bear the legend set forth below. 
Grantee shall execute and deliver to the Company stock transfer powers
and such other documentation as the Company may request from time to time to
effect the purposes of this Agreement.

7.             Restrictive
Legend.  Certificates representing shares of
Restricted Stock with respect to which the Restrictions have not lapsed shall
bear the following legend:

“The sale or other transfer of the shares represented
by this Certificate, whether voluntary, involuntary or by operation of law, is
subject to certain restrictions on transfer as set forth in the Papa John’s
International, Inc. 1999 Team Member Stock Ownership Plan, and in the related
Restricted Stock Agreement.  A copy of
the Plan and such Restricted Stock Agreement may be obtained from the Secretary
of Papa John’s International, Inc.”

8.             Adjustment
to Shares of Restricted Stock.  In the event of any change in
the corporate structure of the Company affecting the Common Stock, the number
of shares of Restricted Stock shall be subject to adjustment as provided in
Section 4.3 of the Plan.

 2
 

9.             Taxes.  Grantee shall pay to the Company promptly upon request, at the time
Grantee recognizes any taxable income with respect to the shares of Restricted
Stock, an amount equal to the federal, state and/or local taxes the Company
determines it is required to withhold under applicable law with respect to such
shares.  In lieu of collecting such
payment of withholding taxes from Grantee, the Company may, in its discretion,
distribute vested shares of Common Stock net of the number of whole shares of
Common Stock having a fair market value equal to the minimum amount of federal,
state and local taxes required to be withheld under applicable tax laws.  Grantee agrees to indemnify the Company for
Grantee’s portion of any social insurance or taxes arising under the law of any
jurisdiction outside the United States with respect to the grant of Restricted
Stock made pursuant to this Agreement, the vesting of the Restricted Stock, or
the sale or other disposition of the Restricted Stock.

10.          No
Right to Continued Employment.  Nothing in the Plan or this
Agreement, or the granting of the Restricted Stock, shall be construed as
granting to Grantee any right to be employed or retained by, or to continue as
an Employee, consultant or advisor of or to the Company.  The
Company expressly reserves the right to terminate, whether by dismissal,
discharge, retire­ment or otherwise, Grantee’s employment or other
relationships with it at any time, with or without cause, except as may
otherwise be expressly provided in any written employment agreement between the
Company and Grantee.

11.          Miscellaneous.

(a)           This Agreement and the Restricted Stock
herein granted to Grantee are and shall be in all respects subject to the terms
and conditions of the Plan, a copy or description of which Grantee acknowledges
receiving prior to the execution hereof. 
In the event of any conflict between or among any terms or provisions of
this Agreement and of the Plan, the terms and provisions of the Plan shall
control.  Capitalized terms used in this
Agreement shall have the meaning ascribed to them in the Plan, unless otherwise
specifically defined herein.

(b)           The captions and section headings
used herein are for convenience only, shall not be deemed part of this
Agreement and shall not in any way restrict or modify the context and substance
of any section or paragraph hereof.

(c)           This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Delaware without
regard to its conflicts of laws rules.

(d)           The provisions of this Agreement are
severable and, if any one or more provisions is determined to be illegal or
otherwise unenforceable, in whole or in part, then the remaining provisions, and
any partially unenforceable provision to the extent enforceable in any
jurisdiction, shall be binding and enforceable.

(e)           The provisions of this Agreement will be
binding upon the parties hereto and their successors and assigns, including but
not limited to Grantee’s estate and executors, administrators and trustees of
Grantee’s estate; any person or entity to which the Restricted Stock is
transferred pursuant to a qualified domestic relations order; and any receiver,
trustee in bankruptcy or representative of Grantee’s creditors.

* * *

 3
 

Exhibit A

Terms and
Conditions of Restricted Stock Grant

Grant Date:

Restriction Period:             Three
years from grant date, ending

Performance Goals:            In
addition to all other terms and conditions of this Agreement and the Plan,
vesting of the shares of Restricted Stock granted to Grantee hereunder and
release of the Restrictions are contingent upon achievement of the Performance
Goals, which are based upon the Company’s achievement of the following levels
of compounded annual growth rate (“CAGR”) of the Company’s “LTIP Operating
Income” (as defined below) over the three fiscal years immediately preceding
the end of the Restriction Period (the “Measurement Period”), which are the
Company’s fiscal years  through ,
calculated as a compounded annual percentage change from the Company’s LTIP
Operating Income for fiscal year .

	
  CAGR of Company’s LTIP Operating Income over

  Measurement Period (Fiscal Years -)

  	
   

  	
  Percentage of

  Restricted Stock Vested

  	
   

  
	
  12% or greater

  	
   

  	
  100

  	
  %

  
	
  10%

  	
   

  	
  50

  	
  %

  
	
  5%

  	
   

  	
  33

  	
  %

  
	
  Less than 5%

  	
   

  	
  0

  	
  %

  

 

Notes:

1.             For CAGR of Company’s LTIP
Operating Income results greater than 5% but less than 12%, the percentage of
Restricted Stock vested will be determined on a straight-line interpolation
basis between the applicable thresholds. 
For example, if the Company’s LTIP Operating Income CAGR over the
Measurement Period is 11%, then the percentage of Restricted Stock vested would
be 75%, and if the Company’s LTIP Operating Income CAGR over the Measurement
Period is 8%, then the percentage of Restricted Stock vested would be 43.2%.

2.             For purposes of this Agreement and
determining any applicable Restricted Stock vesting, “LTIP Operating Income” is
defined as “Operating income” reported in the Consolidated Statements of
Income for the Company and subsidiaries, adjusted (a) by excluding any gains or
losses from BIBP Commodities, Inc., operations, and (b) to reflect exceptions
approved by the Compensation Committee of the Company’s Board of Directors
related to events deemed extraordinary by the Compensation Committee, such as
gains or losses from the acquisition or disposition of restaurants.

3.             The Compensation
Committee of the Company’s Board of Directors must certify achievement of the
Performance Goals following the Measurement Period.

 

 4Exhibit 10.4

PERFORMANCE UNIT AWARD AGREEMENT

 

PAPA JOHN’S INTERNATIONAL, INC.

1999 TEAM
MEMBER STOCK OWNERSHIP PLAN

THIS PERFORMANCE UNIT AWARD AGREEMENT (the “Award Agreement”) is made and entered
into as of                  
(the “Grant Date”), by and between Papa John’s International, Inc., a Delaware
corporation (the “Company”), and                            
(“Participant”).

WHEREAS, the Board of Directors of the Company (the “Board of Directors”) has
adopted, and the stockholders of the Company have approved, the Papa John’s
International, Inc. 1999 Team Member Stock Ownership Plan (the “Plan”),
pursuant to which the Company may grant awards of Performance Units, as defined
under the Plan, to employees of the Company and its subsidiaries and certain other
persons, all as provided under the Plan; and

WHEREAS, the Company desires to grant to Participant a Performance Unit award
under the terms of the Plan;

NOW, THEREFORE, pursuant to the Plan, the Company and Participant agree as follows:

1.  Grant of Award.  The
Company hereby grants to Participant the Performance Unit award described in
this Award Agreement (the “Award”).

2.  Award Subject to Plan.  This
Award is granted under and is expressly subject to all the terms and provisions
of the Plan, which terms are incorporated herein by reference.  In the event of any conflict between or among
any provisions of this Award Agreement and any provisions of the Plan, the Plan
provisions will control.  Any capitalized
terms not otherwise defined herein shall have the meaning given them in the
Plan.  Participant hereby acknowledges
receipt of a description or copy of the Plan prior to executing this Award
Agreement.

3.  Performance Period.  The
performance period for the Award is the three (3)-year period commencing                    ,
and ending                     (the
“Performance Period”).

4.  Performance Unit Award.

(a)  General. 
Participant’s target Performance Unit Award opportunity for the
Performance Period is a cash payment equivalent to the average closing price of
the Company’s common stock for the last 15 trading days preceding the end of
the Performance Period, multiplied by              
(the “Target Cash Incentive”).

(b)  Amount of Target Cash Incentive Payable to Participant for the
Performance Period.  The
amount of the Target Cash Incentive payable to Participant for the Performance
Period will be based upon the Company’s “Total Shareholder Return” (as defined
in Section 5 below) as compared to the Total Shareholder Return of the “Peer
Companies” (as defined in Section 6 below) over the Performance Period, as
follows:

	
  If the Company’s Total Shareholder

  Return over the Performance Period

  as compared to the Peer Companies: 

  	
   

  	
  Then the percentage of

  Target Cash Incentive

  payable to Participant is: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ranks in the 75th percentile or higher

  	
   

  	
  200

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ranks in the 50th percentile

  	
   

  	
  100

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ranks in the 40th percentile

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Ranks below the
  40th percentile

  	
   

  	
  0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  

Target Cash Incentive
percentages based on percentile rankings between the thresholds described above
will be calculated using straight-line interpolation.  (For example: 
If the Company’s Total Shareholder Return over the Performance Period as
compared to the Peer Companies ranks in the 60th percentile, then the percentage of Target Cash
Incentive payable to Participant is 140%.) 
Notwithstanding the foregoing, the maximum payment that can be made
pursuant to Performance Units granted to Participant in any calendar year is
$1,000,000.

(c)  Payment of Performance Unit Award for the Performance Period.  Subject to early termination of this Award
Agreement pursuant to Section 7 or Section 8 below, as soon as
practicable following the end of the Performance Period and the determination
of the Company’s Total Shareholder Return as compared to the Total Shareholder
Return of each Peer Company over the Performance Period, the Company will pay
in cash to Participant the Performance Unit Award amount, if any, determined
pursuant to Section 4(b) above.

5.  Total Shareholder Return.  For
purposes of this Award Agreement, “Total Shareholder Return” with respect to
the Company or any Peer Company means the change (if any) in the market value
of shares of common stock of the Company or such Peer Company, assuming reinvestment
of dividends, over the Performance Period, using the methodology prescribed by
Securities and Exchange Commission Regulation S-K, Item 402(l), provided that
the measurement of change in market value of shares of common stock over the
Performance Period shall be based on the average closing prices of the common
stock for the last 15 trading 

 2
 

days
preceding the commencement of the Performance Period and the last 15 trading
days preceding the end of the Performance Period.

6.  Peer Companies.  The
Peer Companies are listed in Exhibit A to this Award Agreement, which is
incorporated herein by reference.

7.  Termination of Employment.

(a)  Except as set forth in
subsection (c), this Award Agreement will terminate and be of no further force
or effect on the date that Participant is no longer employed by the Company or
any of its subsidiaries, if such termination is for any reason other than
death, Disability or Retirement (all as defined in the Plan).

(b)  In the event of Participant’s
termination of employment due to death, Disability or Retirement prior to
expiration of any Performance Period, any then-outstanding Performance Units of
Participant shall be payable in an amount equal to the maximum amount payable
under such Performance Units multiplied by a percentage equal to the percentage
that would have been earned under the terms of the Award Agreement assuming
that the Total Shareholder Return achieved as of the date of such termination
of employment would have been achieved at the end of the Performance Period.

(c)  Participant will be entitled
to receive any Performance Unit Award payable under Section 4 of this
Award Agreement if Participant’s employment terminates after the Performance
Period but before Participant’s receipt of such Performance Unit Award payment
for the Performance Period, except in the event of a termination for Cause.

8.  Change of Control.  Upon
a Change in Control, as defined in the Plan, any then-outstanding Performance
Units shall become fully vested and immediately payable in an amount equal to
the greater of (a) the maximum amount payable under the Performance Unit
multiplied by a percentage equal to the percentage that would have been earned
under the terms of this Award Agreement assuming that the Total Shareholder Return achieved as of the date of such
termination of employment would have been achieved the end of the Performance
Period or (b) the maximum amount payable under the Performance Unit
multiplied by the percentage of the Performance Period completed by the Participant
at the time of the Change in Control.

9.  Tax Withholding. 
Participant must pay, or make arrangements acceptable to the Company for
the payment of, any and all federal, state, and local tax withholding that in
the opinion of the Company is required by law. 
Unless Participant satisfies any such tax-withholding obligation by
paying the amount in cash or by check, the Company will withhold a portion of
the cash incentive payment equal to the tax-withholding obligation.

10.  Non-Transferability.  Neither
this Award nor any rights under this Award Agreement may be assigned,
transferred, or in any manner encumbered except by will or the laws of descent 

 3
 

and
distribution, and any attempted assignment, transfer, mortgage, pledge or
encumbrance except as herein authorized, will be void and of no effect.  Participant may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom the right to receive payments under a Performance Unit is to be paid in
case of Participant’s death before receiving any or all such payments.

11.   Administration.  The
Compensation Committee of the Board of Directors (the “Committee”) shall have
the sole responsibility for construing and interpreting this Award Agreement,
and for resolving all questions arising hereunder.  Any decision or action taken by the Committee
arising out of, or in connection with, the construction, administration,
interpretation and effect of this Award Agreement shall be conclusive and
binding upon all persons.

12.  No Employment Rights Created.  The granting of the Award shall not be
construed as granting to Participant any right to continue as an employee of
the Company.  The Company expressly
reserves the right to terminate, whether by dismissal, discharge, retire­ment
or otherwise, Participant’s employment with it at any time, with or without
cause, except as may otherwise be expressly provided in any written employment
agreement between the Company and Participant.

13. Miscellaneous.   The captions and section headings used herein are for convenience only,
shall not be deemed part of this Award Agreement and shall not in any way
restrict or modify the context and substance of any section or paragraph
hereof.  This Award Agreement will be
governed by the laws of the State of Delaware, without regard to the principles
of conflicts of law that might otherwise apply.

IN WITNESS WHEREOF, the Company and Participant have executed this Award Agreement as of
the Grant Date.

	
  Participant:

  	
   

  	
   

  	
  Company:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  PAPA JOHN’S INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
  Name typed or
  printed

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
  Date

  

 

 

 4

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