Document:

Ex-10.4

 

Exhibit
10.4

RESTRICTED STOCK AGREEMENT

     This
RESTRICTED STOCK AGREEMENT (the “Agreement”) is made this ______ day of ______, 20___,
by and between CORRECTIONS CORPORATION OF AMERICA, a Maryland corporation (the “Company”), and
______ (the “Recipient”).

W I T N E S S E T H:

     WHEREAS, the Company has adopted the 2008 Stock Incentive Plan (the “Plan”), which
authorizes the Company to award restricted shares (“Restricted Shares”) of its common stock, $0.01
par value per share (the “Common Stock”), to key employees of the Company and/or its affiliates
(individually, a “Restricted Stock Award”); and

     WHEREAS, the Company and Recipient wish to confirm the terms and conditions of a Restricted
Stock Award to Recipient on ______,
20______ (the “Date of Award”).

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is agreed between the parties hereto as follows:

     1. Definitions. Except as provided in this Agreement, or unless the context otherwise
requires, the terms used herein shall have the same meaning as in the Plan.

     2. Award of Shares. Upon and subject to the terms, restrictions, limitations and
conditions stated herein, the Company hereby awards to Recipient
______ Restricted Shares of the
Company’s Common Stock (the “Shares”).

     3. Rights; Vesting; Forfeiture. Except as otherwise provided herein, Recipient shall
have full right, title and interest in the Shares to the extent such Shares have vested in
accordance with subparagraph (iii) below.

          (i) During the Vesting Period (as defined below) and prior to the vesting of the Shares, the
Shares may not be sold, assigned, transferred, pledged or otherwise encumbered by Recipient.
Certificates issued with respect to the Shares shall be registered in the name of Recipient and
deposited by Recipient with the Company, and any such certificates shall bear an appropriate legend
disclosing the restrictions imposed on the Shares hereunder and by the Plan. Upon the lapse of the
restrictions applicable to the Shares, the Company shall deliver such certificates to Recipient or
Recipient’s legal representative, as the case may be.

          (ii) During the Vesting Period the Recipient shall have all rights of a stockholder of the
Company (except as otherwise provided herein), including without limitation the right to vote and
receive dividends on the Shares. If as a result of a stock dividend, stock split, recapitalization
or other adjustment in the capital stock or stated capital of the Company, or
as the result of a merger, consolidation, or other reorganization, the Common Stock is increased, reduced or otherwise
changed and by virtue thereof, Recipient shall be entitled to new or

 

 

additional or different shares, with such new or additional shares being subject to the same terms,
conditions and restrictions as applicable to the Shares.

     (iii) The Shares shall vest in accordance with Schedule A attached hereto and made a part
hereof, provided that Recipient is employed by the Company or an Affiliate Corporation (the
“Employer”) at all times following the Date of Award and prior to and on the Vesting Dates (the
“Vesting Period”). If, at any time during the Vesting Period, Recipient’s employment with Employer
is terminated for any reason other than as a result of the death, Disability or Retirement of
Recipient, all of the unvested Shares held by such Recipient shall immediately and automatically be
forfeited to the Company without monetary consideration and shall be automatically canceled and
retired. If (i) Recipient shall die while in the employ or service of the Employer, (ii)
Recipient’s employment or service with the Employer shall terminate by reason of Disability, or
(iii) there occurs a Change in Control, then in any such case all Shares shall become immediately
vested and nonforfeitable. In the event Recipient’s employment with the Employer is terminated as a
result of Retirement on or after December 31, 2010, unless earlier terminated or expired, and
assuming that the applicable performance measures set forth in Schedule A have been met, the Shares
shall become immediately vested and nonforfeitable. Notwithstanding the proviso in the first
sentence of the this Section 3(iii) and for purposes of clarity, if the Recipient’s employment is
terminated as a result of Retirement on or after December 31 in any given fiscal year but prior to
the Vesting Date (as such term is defined in Schedule A) in such year, then the applicable portion
of the Shares, if any, shall vest on the Vesting Date in the manner set forth in Schedule A despite
the fact that the Recipient is no longer an employee of the Company on such Vesting Date.

     4. Share Award and Shares Subject to Plan. The Restricted Stock Award represented by
this Agreement and the Shares shall be subject to, and the Company and Recipient agree to be bound
by, all of the terms and conditions of the Plan, as the same shall be amended from time to time in
accordance with the terms thereof. A copy of the Plan, as amended, is attached hereto as
Exhibit A and made a part hereof as if fully set out herein.

     5. Covenants and Representations of Recipient. Recipient represents, warrants,
covenants and agrees with the Company as follows:

          (i) The Shares cannot be offered for sale, sold or transferred by Recipient other than
pursuant to: (A) an effective registration under applicable state securities laws or in a
transaction which is otherwise in compliance with such laws; (B) an effective registration under
the Securities Act of 1933, as amended (the “1933 Act”), or in a transaction otherwise in
compliance with the 1933 Act; and (C) evidence satisfactory to the Company of compliance with the
securities laws of all applicable jurisdictions. The Company shall be entitled to rely upon an
opinion of counsel satisfactory to it with respect to compliance with the foregoing laws;

          (ii) The Company will be under no obligation to register (or maintain the registration of) the
Shares or to comply with any exemption available for sale of the Shares

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without registration. The Company is under no obligation to act in any manner so as to make Rule
144 promulgated under the 1933 Act available with respect to sales of the Shares; and

          (iii) If applicable, a legend indicating that the Shares have not been registered under the
applicable state securities laws and referring to any applicable restrictions on transferability
and sale of the Shares may be placed on the certificate or certificates delivered to Recipient and
any transfer agent of the Company may be instructed to require compliance therewith.

     6. Withholding of Taxes. If the Recipient makes an election under section 83(b) of
the Code with respect to the Restricted Stock Award, the Restricted Stock Award made pursuant to
this Agreement shall be conditioned upon the prompt payment to the Company of any applicable
withholding obligations or withholding taxes (“Withholding Taxes”) by the Recipient. Failure by
the Recipient to pay such Withholding Taxes will render this Agreement and the Restricted Stock
Award granted hereunder null and void ab initio and the Restricted Shares granted hereunder will be
immediately cancelled. If the Recipient does not make an election under section 83(b) of the Code
with respect to the Restricted Stock Award, upon the lapse of the Vesting Period with respect to
any portion of Restricted Shares (or property distributed with respect thereto), the Company shall
satisfy the required Withholding Taxes as set forth by Internal Revenue Service guidelines and in
accordance with the Plan for the employer’s minimum statutory withholding with respect to Recipient
and issue vested shares to the Recipient without restriction.

     7. Governing Law. This Agreement shall be construed, administered and enforced
according to the laws of the State of Maryland, without regard to the conflicts of laws provisions
thereof; provided, however, the Restricted Shares may not be sold except, in the reasonable
judgment of the Committee, in compliance with exemptions under applicable state securities laws of
the state in which Recipient resides, and/or any other applicable securities laws.

     8. Successors. This Agreement shall be binding upon and inure to the benefits of the
heirs, legal representatives, successors and permitted assigns of the parties.

     9. Notice. Except as otherwise specified herein, all notices and other communications
under this Agreement shall be in writing and shall be deemed to have been given if personally
delivered or if sent by registered or certified United States mail, return receipt requested,
postage prepaid, addressed to the proposed recipient at the last known address of such recipient.
Any party may designate any other address to which notices shall be sent by giving notice of such
address to the other parties in the same manner provided herein.

     10. Severability. In the event that any one or more of the provisions or portion
thereof contained in this Agreement shall for any reason be held to be invalid, illegal or
unenforceable in any respect, the same shall not invalidate or otherwise affect any other
provisions of this Agreement and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision or portion thereof had never been contained herein.

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     11. Entire Agreement. Subject to the terms and conditions of the Plan, this Agreement
expresses the entire understanding and agreement of the parties hereto with respect to such terms,
restrictions and limitations. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall constitute one and the same instrument.

     12. Violation. Any transfer, pledge, sale, assignment or hypothecation of the Shares
except in accordance with this Agreement shall be a violation of the terms hereof and shall be void
and without effect.

     13. Headings. Section headings used herein are for convenience of reference only and
shall not be considered in interpreting this Agreement.

     14. Specific Performance. In the event of any actual or threatened default in, or
breach of, any of the terms, conditions and provisions of this Agreement, the party or parties who
are thereby aggrieved shall have the right to specific performance and injunction in addition to
any and all other rights and remedies at law or in equity, and all such rights and remedies shall
be cumulative.

     15. Counterparts. This Agreement may be executed by the signatures of each of the
parties hereto, or to a counterpart of this Agreement, and all such counterparts shall collectively
constitute one Agreement. Facsimile signatures shall constitute original signatures for purposes
of this Agreement.

     IN WITNESS WHEREOF, the parties have executed and sealed this Agreement on the day
and year first set forth above.

	 	 	 	 	 
	 	CORRECTIONS CORPORATION OF AMERICA 

 	 
	 	By:  	
 	 
	 	 	 	 
	 	Title: 	
 	 
	 

	 	 	 	 	 
	 	RECIPIENT: 

 	 
	 	Signature:  	
 	 
	 	 	 	 
	 	Name (printed): 	
     	 

4EX-10.1

 

Exhibit 10.1

LNB Bancorp, Inc.

2008 Management Incentive Plan

For Key Executives

Section I. PURPOSE

The LNB Bancorp, Inc. 2008 Management Incentive Plan for Key Executives is designed to reward Key
Executives with incentive compensation payments for achieving profitability goals and subjective
goals.

Section II. DEFINITIONS

The following terms, as used in this Plan, shall mean:

	A.	 	Committee. The Compensation Committee of the Board of Directors of LNB
Bancorp, Inc., or such other committee as such Board may designate.
	 
	B.	 	Employer or Lorain National Bank. LNB Bancorp, Inc., its subsidiaries and
affiliates.
	 
	C.	 	Plan year. January 1, 2008 through December 31, 2008.
	 
	D.	 	Employee/Key Executive. The participants selected to participate in this Plan as
described in Section III below.
	 
	E.	 	Plan. The LNB Bancorp, Inc. 2008 Management Incentive Plan for Key Executives.
	 
	F.	 	Incentive Payment. Cash payment earned by Employee on the Incentive Payment Date,
as determined in accordance with Section IV and the other terms of this Plan.
	 
	G.	 	Incentive Payment Date. The date on which an Incentive Payment to Employee is paid,
which shall be as soon as reasonably practicable after such payment is calculated and
authorized by the Committee but not later than two and one-half months following the
end of the Plan year.
	 
	H.	 	Profitability. Profitability is defined as net income after tax of LNB Bancorp, Inc.
and its consolidated subsidiaries for the Plan year, as determined by the Committee. The
Committee has the discretion to adjust for any unforeseen occurrences which may affect the
profitability number.
	 
	I.	 	Profitability Goal. An amount of Profitability established as a goal by the Committee in
its discretion and solely for purposes of this Plan, based on the Employer’s annual budget
as determined by its Audit and Finance Committee. This goal will be communicated to each
Key Executive when the Key Executive is selected to participate in this Plan.

 

 

Section III. ELIGIBILITY

Employees of Lorain National Bank, other than the CEO, are eligible to participate in this Plan.
Based upon CEO recommendations, the Committee has the authority, in its discretion, to designate
the Employees who will participate in this Plan during the Plan year.

Section IV. AMOUNT OF INCENTIVE PAYMENT

Subject to the other terms of this Plan, the amount of the Incentive Payment earned by an Employee
under this Plan will be determined, based on Employer’s actual Profitability achievement for the
Plan year relative to the percentage of the Profitability Goal, a percentage of Employee’s base
salary, and on other terms as determined, interpreted and established in the sole discretion of
the Committee.

Section V. OTHER INCENTIVE PAYMENT TERMS

A. Payments and Deductions/Withholding Taxes.

Employer will pay an Employee the Incentive Payment on the Incentive Payment Date provided the
Employee is an active employee of Employer on that date. The amount of the Incentive Payment, if
any, shall be calculated as provided in Section IV of this Plan. Deductions may also be made at
the discretion of Employer and in accordance with applicable law for any amounts the employee owes
to Employer.

Employer may withhold from any amounts payable under or in connection with this Plan all federal,
state, local and other taxes as may be required to be withheld by Employer under applicable law or
governmental regulation or ruling.

B. Incentive Payment Calculation.

The Committee will have the sole authority and discretion to evaluate all aspects of the Employer’s
incentive compensation awards and to determine performance and the total pool money available to
all Employees in the aggregate. Generally, subject in all cases to terms as determined, interpreted
and established in the sole discretion of the Committee, the total pool of money available to all
Employees will be based upon whether the Employer achieves actual Profitability for the Plan year
that falls within a range of specified minimum, target and maximum percentages of the Profitability
Goal, and will be zero if the Employer does not achieve actual Profitability for the Plan year that
is equal to at least the specified minimum percentage of the Profitability Goal. The CEO will
determine the distribution to the Key Executives, subject to Committee approval in its sole
discretion.

The Committee retains the right and authority (in addition to any other rights or remedies of
Employer) not to pay all or any part of an Incentive Payment to any Employee based on operational
wrongdoing or misconduct of the Employee, as determined by the Committee in its sole discretion.
The Employer must document all such exceptions to this Plan, including but not limited to,
forfeiture of payments.

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D. Special Circumstances.

1. Conflicts with Law. If any provision of this Plan violates local, state or federal law,
the applicable law shall control.

2. Voluntary or Involuntary Termination. If Employee’s employment is voluntarily or
involuntarily terminated before the Incentive Payment Date, Employee is not entitled to receive
and will forfeit the Incentive Payment. Employee must be employed on the Incentive Payment
Date to be entitled to the Incentive Payment.

3. Transfer. If an Employee transfers to another position within Employer that does not
participate under this Plan before the Incentive Payment Date, the Employee is not entitled to
receive and will forfeit the Incentive Payment. A payment of a pro-rated amount of the Incentive
Payment may be awarded in the Committee’s sole discretion.

4. Leave of Absence. Incentive Payments will be pro-rated based on months of active
employment as determined by the Committee in its sole discretion. An Employee on a leave of
absence must be employed on the Incentive Payment Date to receive an Incentive Payment.

5. Death. In the event of the Employee’s death before the Incentive Payment Date, the
Employee’s estate is not entitled to receive and will forfeit the Incentive Payment. A payment of
a pro-rated or full amount of the Incentive Payment may be awarded in the Committee’s sole
discretion.

Section VI. NON-SOLICITATION AND CONFIDENTIALITY

A. Non-Solicitation.

In consideration of Employee’s participation in this Plan, Employee agrees that during the term of
Employee’s employment and for one year after Employee’s voluntary termination of employment or
termination of employment for cause, Employee will not, directly or indirectly: (1) influence or
advise any other person to employ or solicit for employment anyone who is employed by Employer on
the date of Employee’s separation; (2) influence or advise any person who is or shall be in the
service of Employer to leave the service of Employer; (3) use any of the information or business
secrets used by Employer, except in accordance with Employer’s policies in the regular course of
Employee’s duties for Employer; (4) disclose the proprietary methods of conducting the business of
Employer, except in accordance with Employer’s policies in the regular course of Employee’s duties
for Employer; (5) make any statement or take any actions that may interfere with Employer’s
customers, except in accordance with Employer’s policies in the regular course of Employee’s duties
for Employer; or (6) attempt to divert any of the business of Employer or any business which
Employer has a reasonable expectation of obtaining by soliciting, contacting, or communicating with
any customers and/or potential customers which have been derived from leads or lists developed and
delivered to Employee by Employer.

B. Confidentiality.

In consideration of Employee’s participation in this Plan, Employee agrees that during and
following termination of employment with Employer, Employee will hold in strictest confidence and
will not disclose to anyone, except in accordance with Employer’s policies in the regular course
of Employee’s duties for Employer, any information concerning:

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1. The business or affairs of, or nonpublic information concerning, a current, past or prospective
customer of Lorain National Bank.

2. The development of any product, device, method or invention of Lorain National Bank.

3. Any information concerning Lorain National Bank or its operations not readily available to the
public, unless expressly authorized by the President or any Vice President of Lorain National
Bank.

Employee further agrees that all rights, title and interest to any product, device, invention, or
enhancement to a product or service, developed during his or her employment with Employer and
using Employer resources or know-how, shall belong exclusively to Lorain National Bank. Employee
agrees to execute any documents necessary to reflect Lorain National Bank’s exclusive ownership in
such items.

Upon termination of employment with Employer, Employee will deliver to Lorain National Bank all
documents, notes, materials and all copies thereof, relating to the operations or the business of
Lorain National Bank and its customers.

B. Related Provisions

1. Prior Agreements. This Section VI does not supercede any prior agreements or
understandings between Employer and Employee to the extent that such prior agreement or
understanding is more favorable with respect to Employer.

2. Equitable Relief. Employee acknowledges and agrees that the covenants contained in this
Section VI are of a special nature and that any breach, violation or evasion by Employee of the
terms of Section VI will result in immediate and irreparable injury and harm to Employer, for
which there is no adequate remedy at law, and will cause damage to Employer in amounts difficult
to ascertain. Accordingly, Employer shall be entitled to the remedy of injunction, as well as to
all other legal or equitable remedies to which Employer may be entitled (including, without
limitation, the right to seek monetary damages), for any breach, violation or evasion by Employee
of the terms of Section VI.

Section VII. GENERAL PROVISIONS

1. Administration. The Plan shall be administered by the Committee. The Committee has the
sole and exclusive authority, subject to any limitations specifically set forth in this Plan, to:
adopt, amend, alter and repeal this Plan at any time as it deems advisable in its sole discretion
from time to time; construe, interpret, administer and implement the terms and provisions of this
Plan; and otherwise supervise the administration of this Plan. Notwithstanding the foregoing, all
decisions made by the Committee pursuant to the provisions of this Plan are final and binding on
all persons, including Employee, but may be made by their terms subject to ratification or
approval by the Board of Directors of LNB Bancorp, Inc. or another committee of the Board of
Directors.

2. No Implied Rights to Employment. Neither this Plan nor any Incentive Payment hereunder
shall be construed as giving any individual any right to continued employment or any particular
level of salary or benefits with Employer. This Plan does not constitute a contract of employment,
and Employer expressly reserves the right at any time to terminate any Employee free from liability
or any claim.

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3. Other Compensation Plans. Nothing contained in this Plan prevents Employer from
adopting or modifying other or additional compensation arrangements, and such arrangements may be
either generally applicable or applicable only in specific cases.

4. Successors; Amendments. All obligations of Employer with respect to Incentive Payments
under this Plan are binding on any successor to Employer, whether as a result of a direct or
indirect purchase, merger, consolidation or otherwise of all or substantially all of the business
and/or assets of Employer. Employee may not assign any rights or obligations under this Plan
without the written consent of Employer. Subject to the Committee’s rights under Section VII.1.
above, none of the terms of Section VI may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing, and is signed by Employee and by an authorized
officer of Employer.

5. Validity. The invalidity or unenforceability of any provision or provisions of this Plan
shall not affect the validity or enforceability of any other provision of this Plan, which shall
remain in full force and effect. In the event that any provision of Section VI is found by a court
of competent jurisdiction to be invalid or unenforceable as against public policy, such court shall
exercise its discretion in reforming such provision to the end that Employee shall be subject to
such restrictions and obligations as are reasonable under the circumstances and enforceable by
Employer.

6. Governing Law; Interpretation. This Plan shall be construed in accordance with and
governed by the laws of the State of Ohio, without giving effect to the conflict of law principles
of such State. This Plan is not intended to be governed by the Employee Retirement Income Security
Act and shall be so construed and administered. The headings contained herein are for reference
purposes only and shall not in any way affect the meaning or interpretation of this Plan.

7. Entire Agreement. This Plan embodies the entire agreement and understanding between
Employer and Employee with respect to the subject matter hereof, and supercedes all prior
agreements and understandings relating hereto, except as expressly stated herein.

Employee and Employer have agreed to the terms of this Plan as of the latest date set forth below.

	 	 	 	 	 	 	 	 	 
	“Employee”
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Approved:

	 	 	 	Date:	 	 	 	 
	 

	 	 

[Fill in Name of Employee]
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	“Employer”
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Approved:

	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	By: Daniel E. Klimas, President & CEO	 	 	 	 	 	 

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