Document:

exv10w3

 

Exhibit 10.3

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE ATMOS ENERGY CORPORATION

1998 LONG-TERM INCENTIVE PLAN

     This Restricted Stock Award Agreement is dated as of March 11, 2003, by and between, Atmos
Energy Corporation, a Texas and Virginia corporation (the “Company”), and «FirstName» «Initial»
«LastName» «Jr» (“Grantee”), pursuant to the Company’s 1998 Long-Term Incentive Plan (the “Plan”).
Capitalized terms that are used, but not defined, in this document shall have the meaning set forth
in the Plan.

     Pursuant to authorization by the Human Resources Committee of the Board of Directors (the
“Committee”), which has been designated by the Board of Directors of the Company to administer the
Plan, the parties agree as follows.

1.     Grant of Shares.

     The Company hereby grants to the Grantee a total of «Sharesgranted» shares of Common Stock of
the Company (“Shares’’) for no consideration from the Grantee, with the restrictions set forth
below.

2.     Legends on Certificates.

     Each certificate representing the Shares shall be registered in the name of the Grantee and
shall bear the following legend, or a similar legend deemed by the Company to constitute an
appropriate notice of the provisions hereof (any such certificate not having such legend shall be
surrendered upon demand by the Company and so endorsed):

     On the face of the certificate:

	 	   	“Transfer of this stock is restricted in accordance with conditions
printed on the reverse of this certificate.”

     On the reverse:

	 	   	“The shares of stock evidenced by this certificate are subject to
and transferrable only in accordance with that certain Atmos Energy
Corporation 1998 Long-Term Incentive Plan, a copy of which is on
file at the principal office of the Company in Dallas, Texas. No
transfer or pledge of the shares evidenced hereby may be made except
in accordance with and subject to the provisions of said Plan. By
acceptance of this certificate, any holder, transferee or pledgee
hereof agrees to be bound by all of the provisions of said Plan.”

 

 

3.     Restrictions on Alienation of Shares.

     Shares awarded hereunder may not be sold, transferred, pledged, assigned, or otherwise
alienated in any manner, whether voluntarily, by operation of law, or otherwise, until the
restrictions on the Shares are removed in the manner provided for below and the Shares are
delivered to the Grantee.

4.     Forfeiture of Shares.

     Shares will be forfeited if, prior to the removal of restrictions on the Shares awarded
hereunder, the Grantee terminates employment for any reason other than death, disability, or
retirement. Each Grantee, by his or her acceptance of the Shares, shall irrevocably grant to the
Company a power of attorney to transfer any Shares forfeited to the Company and agrees to execute
any documents requested by the Company in connection with such forfeiture and transfer. Such
provisions with respect to forfeited Shares shall be specifically performable by the Company in a
court of equity or law. Upon any forfeiture, all rights of the Grantee with respect to the
forfeited Shares shall cease and terminate, without any further obligation on the part of the
Company.

5.     Removal of Restrictions due to Death, Disability or Retirement.

     At the time and on the date of the Grantee’s death, disability, or retirement (upon attaining
the age of 55) while employed by the Company or Subsidiary, all restrictions placed on each Share
awarded shall be removed and such shares shall be delivered to the Grantee or to his legal
representatives, beneficiaries, or heirs. From and after such date, the Grantee or the Grantee’s
estate, personal representative or beneficiary, as the case may be, shall have full rights of
transfer or resale with respect to such stock subject to applicable state and federal regulations.
The restrictions on Shares awarded shall not be removed due to the Grantee’s retirement prior to
attaining the age of 55, unless such removal is expressly approved by the Commitee.

6.     Custody of Share Certificates.

     Share certificates representing the number of Shares awarded shall be registered in the
Grantee’s name, but the certificates representing the Shares shall be held in the custody of the
Company for the Grantee’s account. During such time, the Grantee shall have all of the rights of a
shareholder of the Company with respect to the Shares, including the right to vote the Shares. All
dividends and distributions (other than stock dividends and distributions) on shares held in the
custody of the Company shall be paid to the Grantee, however, regardless of the fact that the
shares are being held in behalf of the Grantee. Any new, additional, or different shares or
securities issued (due to a stock split, stock dividend, or other stock distribution) with respect
to the Shares previously awarded under the Plan shall be held by the Company as additional Shares
for the Grantee’s account and shall have the same restrictions as the underlying Shares with
respect to which such new, additional, or different shares or securities were issued. At such time
as restrictions are removed from any portion of the Shares held by the Company for the Grantee,
certificates representing such shares shall be delivered free of all restrictions to the Grantee or
to the Grantee’s legal representatives, beneficiaries, or heirs.

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7.     Adjustment Upon Changes in Stock.

     If there shall be any change in the number of shares of Common Stock of the Company
outstanding resulting from subdivision, combination, or reclassification of shares, or through
merger, consolidation, reorganization, recapitalization, stock dividend, stock split or other
change in the corporate structure, an appropriate adjustment in the number of Shares with respect
to which restrictions have not lapsed shall be made by the Committee.

8.     Removal of Restrictions.

     The Grantee shall be entitled to delivery of the Shares, free and clear of all restrictions,
if the Grantee has been an employee of the Company or Subsidiary with continuous service of three
years from the date of the Grant. Notwithstanding the foregoing provision, the Grantee shall, in
the event of a “Change of Control” of the Company, as such term is defined in Section 2.6 of the
Plan, receive free of restriction all Shares granted hereunder on or before the effective date of
such Change of Control. Notwithstanding anything contained in this section to the contrary, the
Shares acquired by virtue of this Grant may not be sold during the first six (6) months after the
date hereof if that would subject the Grantee to liability under Section 16 of the Securities
Exchange Act of 1934, as amended.

9.     Stock Withholding Requirement.

     Upon the removal or lapse of the restrictions on the Shares, the number of shares issuable by
the Company to the Grantee shall be subject to applicable withholding requirements for income and
employment taxes arising from the removal or lapse of the restrictions on the Shares.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the date
first written above.

 
GRANTEE:

	 	 	 
	Signature:

	 	 
	

	 	 

	 	 	 
	Printed Name:

	 	 
	

	 	 

	 	 	 	 
	ATMOS ENERGY CORPORATION

 	 
	By:  	 	 
	 	Robert W. Best 	 
	 	Chairman, President and Chief

Executive Officer 	 
	 

3exv10w4

 

Exhibit 10.4

AWARD AGREEMENT OF PERFORMANCE-BASED

RESTRICTED STOCK UNITS

UNDER THE ATMOS ENERGY CORPORATION

1998 LONG-TERM INCENTIVE PLAN

     This Award Agreement of Performance-Based Restricted Stock Units is dated as of April 14,
2004, by and between Atmos Energy Corporation, a Texas and Virginia corporation (the “Company”),
and «First» «Initial» «Last» «Jr» (“Grantee”), pursuant to the Company’s 1998 Long-Term Incentive
Plan (the “Plan”). Capitalized terms that are used, but not defined, in this document shall have
the meaning set forth in the Plan.

     Pursuant to authorization by the Human Resources Committee of the Board of Directors (the
“Committee”), which has been designated by the Board of Directors of the Company to administer the
Plan, the parties agree as follows.

1.     Grant of Units.

     The Company hereby grants to the Grantee a total of «SharesGranted» performance-based
restricted stock units (“Units”) under the Plan, for no consideration from the Grantee, with the
restrictions set forth below. Each such Unit shall be a notional share of common stock of the
Company (“Common Stock”), with the value of each Unit being equal to the fair market value of a
share of Common Stock at any time.

2.     Restrictions on Alienation of Units.

     Units awarded hereunder may not be sold, transferred, pledged, assigned, or otherwise
alienated in any manner, whether voluntarily, by operation of law, or otherwise, until the
restrictions on the Units are removed and the Units are delivered to the Grantee in the form of
shares of Common Stock in the manner described below in Section 8.

3.     Number of Units Awarded.

     The number of Units ultimately to be awarded to the Grantee upon vesting is contingent upon
the cumulative amount of earnings per share achieved by the Company for the three year period,
Fiscal Years 2004 through 2006. The percentage of Units earned for each level of the cumulative
amount of earnings per share is illustrated in the performance schedule below. In addition, should
the performance levels achieved be between the stated criteria below, straight-line interpolation
will be used. For example, should the cumulative amount of earnings per share for the three-year
period be $5.00, the percentage of Units earned would be 125% of the number of Units originally
granted.

 

 

Performance-Based Restricted Stock Units

Performance Schedule for Grant of Performance Period FY 2004-2006

	 	 	 	 	 
	Performance Level	 	Cumulative 3-Yr. EPS	 	Restricted Stock Units Earned
	Below Threshold
	 	Less than $x.xx
	 	0%
	Threshold
	 	$x.xx
	 	50%
	Target
	 	$x.xx
	 	100%
	Maximum
	 	$x.xx
	 	150%

4.     Forfeiture of Units.

     All Units granted will be forfeited if, prior to the removal of restrictions on the Units
awarded hereunder, the Grantee voluntarily terminates employment or is terminated for cause. Each
Grantee, by his or her acceptance of the Units, agrees to execute any documents requested by the
Company in connection with such forfeiture. Such provisions with respect to forfeited Units shall
be specifically performable by the Company in a court of equity or law. Upon any forfeiture, all
rights of the Grantee with respect to the forfeited Units shall cease and terminate, without any
further obligation on the part of the Company.

5.     Removal of Restrictions due to Death, Disability, Involuntary Termination or Retirement.

     At the time and on the date of the Grantee’s death, disability, involuntary termination (other
than termination for cause) or retirement (but not before attaining the age of 55) while employed
by the Company or subsidiary of the Company, all restrictions placed on each Unit awarded shall be
removed. The amount of the award of Units shall be prorated, which will be the product of the
“Target” performance level discussed above in Section 3, multiplied by the ratio of months of
service to 36 months of the measurement cycle. The Grantee, or his legal representatives,
beneficiaries or heirs shall be entitled to a distribution of shares of Common Stock equal in
number to such prorated amount of Units within 60 days after the terminating event. From and after
the date of receipt of such shares, the Grantee or the Grantee’s estate, personal representative or
beneficiary, as the case may be, shall have full rights of transfer or resale with respect to such
stock subject to applicable state and federal regulations.

6.     Account Credits.  

     No physical certificates representing the number of Units awarded shall be issued to the
Grantee, but an account will be established and maintained for the Grantee, in which each grant of
Units to the Grantee will be recorded, with the final number of Units as determined in accordance
with Section 3 above. During such time, the Grantee shall not have any of the rights of a
shareholder of the Company with respect to the Units, except that upon the vesting of the Units as
described below in Section 8, the Grantee’s account shall be credited with the amount of Units equal to the amount of dividends that are declared and paid on shares of

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Common Stock since the time of the grant (“dividend equivalents”). The number of Units upon which
dividend equivalents will be credited for the benefit of the Grantee is the total amount of Units
finally determined to have been earned by the Grantee at the end of the measurement cycle in
accordance with Section 3 above. The total amount of each quarterly dividend equivalent shall be
converted to Units, by dividing such dividend equivalent amount by the price of the Common Stock on
the last trading day of the month during each quarter that such dividends are paid during the
three-year measurement cycle.

7.     Adjustment Upon Changes in Stock.

     If there shall be any change in the number of shares of Common Stock outstanding resulting
from subdivision, combination, or reclassification of shares, or through merger, consolidation,
reorganization, recapitalization, stock dividend, stock split or other change in the corporate
structure, an appropriate adjustment in the number of Units with respect to which restrictions have
not lapsed shall be made by the Committee. Depending upon the change in corporate structure, the
Committee will issue additional Units or substituted Units to the Grantee for his account, which
shall have the same restrictions, terms and conditions as the original Units.

8.     Removal of Restrictions.

     The Grantee shall be entitled to a distribution of whole shares of Common Stock equal in
number to the Units finally determined to be earned as set forth in Section 3 above, if the Grantee
has been an employee of the Company or Subsidiary with continuous service of three years from the
date of the Grant. Notwithstanding the foregoing provision, the Grantee shall, in the event of a
“Change of Control” of the Company, as such term is defined in Section 2.6 of the Plan, have his
Units converted to a whole number of shares and will receive his distribution of shares within 60
days after the time such Change of Control is deemed to have occurred. The number of shares to be
distributed in such event will be at the “Target” performance level discussed above in Section 3.

9.     Withholding Requirement.

     Upon the removal or lapse of the restrictions on the Units, the amount of shares of Comon
Stock to be distributed by the Company to the Grantee, which are equal to the number of Units
finally determined to be earned by the Grantee as set forth in Sections 3 and 6 above, shall be
subject to applicable withholding requirements for income and employment taxes arising from the
removal or lapse of the restrictions on the Units.

3

 

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the date
first written above.

 
GRANTEE:

	 	 	 
	Signature:

	 	 
	

	 	 

	 	 	 
	Printed Name:

	 	 
	

	 	 

	 	 	 	 
	ATMOS ENERGY CORPORATION

 	 
	By:  	 	 
	 	Robert W. Best 	 
	 	Chairman, President and Chief Executive Officer 	 
	 

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