Document:

Exhibit 10.4 Restricted Stock Agreement

    Exhibit 10.4

     

    

      FREESTAR
        TECHNOLOGY CORPORATION

      RESTRICTED
        STOCK AGREEMENT

       

      THIS
        RESTRICTED STOCK AGREEMENT (this “Agreement”) is entered into as of ________, by
        and between FREESTAR TECHNOLOGY CORPORATION, a Nevada corporation (the
“Company”), and _____________ (“Recipient”).

       

       

      W
        I T N E S S E T H

       

      WHEREAS,
        the Recipient provides or has provided services to the Company; and

      

      WHEREAS,
        the Board of Directors of the Company has determined that, as an material
        inducement for Recipient in recognition of such services to the Company,
        and
        subject to the restrictions stated below, the Recipient should be granted
        shares
        of the Company’s Common Stock as set forth herein;

       

      WHEREAS,
        the Company regards Recipient as a valuable consultant or employee and
        contributor to the Company and has determined that it would be in the interest
        of the Company and its shareholders to issue the Restricted Stock provided
        for
        in this Agreement to Recipient as an incentive in connection with the services
        by Recipient;

       

      WHEREAS,
        the Company has established a 2007 Directors and Employees Stock Plan, and
        registered the shares under the Stock Plan pursuant to Form S-8 (the “S-8”);

       

      NOW,
        THEREFORE, in consideration of the mutual covenants hereinafter set forth,
        the
        parties to this Agreement hereby agree as follows:

       

      A
        G R E E M E N T

       

      1.  Restricted
        Stock Grant.
        Subject
        to the terms and conditions of this Agreement, the Company hereby grants
        to
        Recipient _____________________ shares of Common Stock of the Company herein
        (the “Restricted Stock”). The parties acknowledge that the Restricted Stock is
        being issued under, and has been registered pursuant to, the Company’s S-8.

       

      2.  Issuance
        of Stock; Escrow.
        As soon
        as practicable, the Company shall cause the shares of Restricted Stock to
        be
        issued in the Recipient’s name. At the Company’s election, the Restricted Stock
        may be held in the custody of the Company or its designee for the Recipient's
        account until the shares are vested in accordance with Section 3 hereof and
        shall be subject to the restrictions described herein.

       

      3.  Vesting.

       

      (a)  The
        interest of the Recipient in the Restricted Stock shall vest as
        follows:________________________.

       

      (b)  Notwithstanding
        the foregoing, the interest of the Recipient in the Restricted Stock shall
        vest
        as to 100% of the then unvested Restricted Stock upon the Recipient's
        termination of employment due to death.

       

      4.  Restrictions.

       

      (a)  No
        portion of the Restricted Stock or rights granted hereunder may be sold,
        transferred, assigned, pledged or otherwise encumbered or disposed of by
        the
        Recipient until such portion of the Restricted Stock becomes vested in
        accordance with Section 3 of this Agreement. The period of time between the
        date
        hereof and the date all Restricted Stock becomes vested is referred to herein
        as
        the "Restriction Period."

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)  If
        the
        Recipient's employment with the Company is terminated for any reason (other
        than
        due to death as provided in Section 3 above), the balance of the Restricted
        Stock subject to the provisions of this Agreement which have not vested at
        the
        time of the Recipient's termination of employment shall be forfeited by the
        Recipient, and ownership transferred back to the Company.

       

      5.  Recipient
        Shareholder Rights.
        All
        shares of Stock issued hereunder shall be deemed issued to Recipient as fully
        paid and nonassessable shares, and Recipient shall have all rights of a
        stockholder with respect thereto, including the right to vote, receive dividends
        (including stock dividends), participate in stock splits or other
        recapitalizations, and exchange such shares in a merger, consolidation or
        other
        reorganization;
        provided, however,
        that
        dividends paid, if any, with respect to that Restricted Stock which has not
        vested at the time of the dividend payment shall be subject to the same
        restrictions that apply to the corresponding Restricted Stock. 

       

      6.  Changes
        in Stock.
        In the
        event that as a result of (a) any stock dividend, stock split or other change
        in
        the Restricted Stock, or (b) any merger or sale of all or substantially all
        of
        the assets or other acquisition of the Company, and by virtue of any such
        change, the Recipient shall in his capacity as owner of unvested shares of
        Restricted Stock which have been awarded to him (the "Prior Stock") be entitled
        to new or additional or different shares or securities, such new or additional
        or different shares or securities shall thereupon be considered to be unvested
        Restricted Stock and shall be subject to all of the conditions and restrictions
        which were applicable to the Prior Stock pursuant to this Agreement, subject
        to
        the full vesting of the Restricted Stock at the sole discretion of the Company
        in accordance with Section 7 of the Stock Plan.

       

      7.  Taxes.
        The
        Recipient shall be liable for any and all taxes, including withholding taxes,
        arising out of this grant or the vesting of Restricted Stock hereunder. The
        Recipient may elect to satisfy such withholding tax obligation by having
        the
        Company retain Restricted Stock having a fair market value equal to the
        Company's minimum withholding obligation. 

       

      8.  Legends;
        Stop Transfer.
        All
        certificates for shares of Restricted Stock shall bear substantially the
        following legend: “The shares represented by this certificate are subject to a
        Restricted Stock Agreement between the Corporation and the registered holder.
        The shares may only be transferred in accordance with such agreement, a copy
        of
        which is on file with the Secretary of this Corporation.”

       

      9.  Successors.
        This
        Agreement shall be binding upon and inure to the benefit of any successor
        or
        successors of the Company. Where the context permits, “Recipient” as used in
        this Agreement shall include Recipient’s executor, administrator or other legal
        representative or the person or persons to whom Recipient’s rights pass by will
        or the applicable laws of descent and distribution. 

       

      10.  Spousal
        Consent.
        Recipient shall cause his or her spouse to execute a Consent of Spouse in
        substantially the form of that attached hereto as Exhibit A
        concurrently with the execution of this Agreement or, if later, at the time
        Recipient becomes married.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      11.  Miscellaneous.

       

      (a)  The
        Company shall not be required (i) to transfer on its books any shares of
        Restricted Stock which shall have been sold or transferred in violation of
        any
        of the provisions set forth in this Agreement, or (ii) to treat as owner
        of such
        shares or to accord the right to vote as such owner or to pay dividends to
        any
        transferee to whom such shares shall have been so transferred.

       

      (b)  The
        parties agree to execute such further instruments and to take such action
        as may
        reasonably be necessary to carry out the intent of this Agreement.

       

      (c)  Any
        notice required or permitted hereunder shall be given in writing and shall
        be
        deemed effectively given upon delivery to the Recipient at his address then
        on
        file with the Company.

       

      (d)  This
        Agreement shall not be construed so as to grant the Recipient any right to
        remain an employee or consultant of the Company.

       

      (e)  This
        agreement is to be construed in accordance with and governed by the internal
        laws of the State of Nevada without giving effect to any choice of law rule
        that
        would cause the application of the laws of any jurisdiction other than the
        internal laws of the State of Nevada to the rights and duties of the parties.
        Each party submits to the exclusive jurisdiction and venue of any California
        State or Federal court with respect to any controversy or claim arising out
        of,
        related to, or connected with this Agreement, the Stock Plan, its enforcement
        or
        interpretation.

       

      IN
        WITNESS WHEREOF, the parties hereto have duly executed this Restricted Stock
        Agreement as of the date first above written. 

      

        
          	
                  COMPANY:

                  FREESTAR
                    TECHNOLOGY CORPORATION

                	
                  RECIPIENT:

                
	
                   

                  By:                                                                                     
                    

                  Paul
                    Egan, President

                	
                   

                  By:    
                                                                                             
                    

                                                  
                    , an individual

                

        

      

       

       

      

       

      EXHIBIT
        A

       

      

       

      CONSENT
        OF SPOUSE

       

       

      I,
        _____________________, spouse of ____________, have read and approved the
        foregoing Agreement. In consideration of the grant to my spouse of shares
        of
FREESTAR
        TECHNOLOGY CORPORATION
        as set
        forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact
        in
        respect to the exercise of any rights under the Agreement insofar as I may
        have
        any rights under the community property laws or similar laws relating to
        marital
        property in effect in the state of our residence as of the date of the signing
        of the foregoing Agreement.

       

       

      
        	 Dated: __________________,
                2007       	                                                                                                                    
                
	 	                                           
                (signature)Schedule Listing and Cash Bonus Amounts

 Exhibit 10.1 
 2007 Base Salary Rates; 2006 Cash Bonus Amounts 
 The following table lists 2007 base salary
rates and 2006 cash bonus amounts for our executive officers named below. 
  

							
	 Name and Title
	  	 2007
 Base Salary
 Rate
	  	 2006
 Cash Bonus
 Amount

	 Cameron Coburn
 Chairman, President and Chief Executive Officer
	  	$	250,000	  	$	100,000
			
	 Larry W. Flowers
 Executive Vice President and Chief Credit Officer
	  	 	130,000	  	 	50,000
			
	 Betty V. Norris
 Senior Vice President and Chief Financial Officer
	  	 	150,000	  	 	50,000
			
	 Lynn M. Burney
 Senior Vice President and Chief Operations Officer
	  	 	135,000	  	 	50,000
			
	 A. Mark Tyler
 Senior Vice President and Business Banking Manager
	  	 	130,000	  	 	30,000
			
	 R. James MacLaren
 Senior Vice President and Credit Administrator
	  	 	130,000	  	 	25,000

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