Document:

Exhibit 10.3

 

WADDELL & REED FINANCIAL, INC.

 

RESTRICTED STOCK AWARD AGREEMENT

 

WADDELL &
REED FINANCIAL, INC., a corporation organized and existing under the laws of
the state of Delaware (or any successor corporation) (the “Company”), does
hereby grant and give unto           
(the “Awardee”), an award of restricted shares of Company Class A common
stock (the “Restricted Stock”) upon the terms and conditions hereinafter set
forth (the “Award”).

 

AUTHORITY
FOR GRANT

 

1.             Executive Stock Award Plan.  The Restricted Stock is granted under the
provisions of the Waddell & Reed Financial, Inc. 1998 Executive
Stock Award Plan, as amended and restated (the “Plan”), and is subject to the
terms and conditions set forth in this Restricted Stock Award Agreement (the “Agreement”)
and not inconsistent with the Plan. 
Capitalized terms used but not defined herein shall have the meaning
given them in the Plan, which is incorporated by reference herein.

 

TERMS
OF AWARD

 

2.             Number of Shares.  In consideration of future services to the
Company, the Awardee is hereby granted           
shares of Restricted Stock (the “Shares”) of the Company’s Class A common
stock, par value $.01 (the “Stock”) on                         ,
20      (the “Grant Date”), subject to
repurchase of a portion thereof by the Company pursuant to Section 13
below.

 

3.             Restrictions; Forfeiture.  The Restricted Stock may not be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated until its
restrictions are removed or expire.  The
Restricted Stock may be forfeited to the Company pursuant to Sections 5(b) and
8, at which time the Company shall have the right to instruct the Company’s
transfer agent to transfer the Restricted Stock to the Company to be held by
the Company in treasury or by any designee of the Company.

 

4.             Expiration of Restrictions
and Risk of Forfeiture.  The
restrictions and risk of forfeiture for the Restricted Stock will expire as set
forth in this Section 4, as of the vesting dates set forth in this Section 4,
provided that (a) Awardee is an employee of the Company, a Subsidiary or
an Affiliate continuously from the Grant Date through the applicable vesting
date, and (b) the restrictions and risk of forfeiture have not previously
expired pursuant to this Agreement.

 

	
  Percentage
  of Shares Vesting

  	
   

  	
  Vest
  Date

  
	
  331/3%

  	
   

  	
                 , 20   

  
	
  331/3%

  	
   

  	
                 , 20   

  
	
  331/3%

  	
   

  	
                 , 20   

  

 

 

TERMINATION
OF AWARD

 

5.             Termination of Employment.

 

(a)           Termination of Employment Due to Death or Disability.  If an Awardee’s employment
with the Company or any of its Subsidiaries or Affiliates terminates by reason
of death or Disability, the restrictions and risk of forfeiture with respect to
the Restricted Stock which have not expired shall immediately lapse and all shares
of the Restricted Stock shall be deemed fully vested and nonforfeitable.

 

(b)           Termination of Employment Other Than Due to Death or
Disability.  If an Awardee’s employment with the Company
or any of its Subsidiaries or Affiliates terminates for a reason other than
death or Disability, the shares of Restricted Stock for which the restrictions
and risk of forfeiture have not expired as of the date of termination shall be
immediately forfeited without further action by the Company; provided, however,
that the portion, if any, of those shares of Restricted Stock for which the
restrictions and risk of forfeiture have expired as of the date of such
termination shall not be forfeited.

 

6.             Change in Control or Potential Change in Control of the
Company.  In the event of (a) a
Change in Control, unless otherwise determined by the Committee in writing at
or after the Grant Date, but prior to the occurrence of such Change in Control,
or (b) a Potential Change in Control, if and to the extent so determined
by the Committee in writing at or after the Grant Date (subject to any right of
approval expressly reserved by the Committee at the time of such
determination), the restrictions with respect to the Restricted Stock shall
lapse and such shares shall be deemed fully vested and nonforfeitable.

 

7.             No Limitation on Excess
Parachute Payments.  The
provisions of Article 11 of the Plan regarding the payment of any “Excess
Parachute Payment” within the meaning of Section 280G(b)(1) of the
Internal Revenue Code of 1986, as amended, shall not apply to this Agreement.

 

8.             Section 83(b) Election.  The Awardee acknowledges that this Award is
conditioned upon Awardee’s agreement that Awardee will forgo any rights Awardee
has to make an election under section 83(b) of the Internal Revenue Code
of 1986, as amended, with respect to the Restricted Stock (an “83(b) Election”).  In the event that Awardee makes a timely 83(b) Election
with respect to the Restricted Stock all shares of Restricted Stock subject to
this Agreement shall be immediately forfeited as of the Grant Date without
further action of the Company.

 

GENERAL TERMS AND PROVISIONS

 

9.             Administration of Award.  The Restricted Stock shall be maintained in a
book-entry account (the “Account”) by and at the Company’s transfer agent until
the restrictions associated with such Restricted Stock expire pursuant to
Sections 4, 5, 6 or 8.  The Awardee shall
execute and deliver to the transfer agent one or more stock powers in blank for
the 

 

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Restricted
Stock.  The Awardee hereby agrees that
the transfer agent shall maintain such Account and the related stock power(s) pursuant
to the terms of this Agreement until such restrictions expire pursuant to
Sections 4, 5, 6 or 8.

 

10.           Ownership of Restricted
Stock.  From and after the time that
the Account representing the Restricted Stock has been activated and prior to
forfeiture, the Awardee will be entitled to all the rights of absolute
ownership of the Restricted Stock, including the right to vote those shares and
to receive dividends thereon if, as, and when declared by the Board, subject,
however, to the terms, conditions and restrictions set forth in this
Agreement.  Dividends paid in stock of
the Company or stock received in connection with a Stock split with respect to
the Restricted Stock shall be subject to the same restrictions as on such
Restricted Stock.  The shares of
Restricted Stock subject to this Award are not eligible to be enrolled in any
dividend re-investment program until the restrictions thereon expire.

 

11.           Adjustment of Shares for
Recapitalization, Etc.  In the event there is any change in the
outstanding Stock of the Company by reason of any reorganization,
recapitalization, stock split, stock dividend, combination of shares or
otherwise, there shall be substituted for or added to each share of Stock
theretofore appropriated or thereafter subject, or which may become subject, to
this Award, the number and kind of shares of stock or other securities into
which each outstanding share of Stock shall be so changed or for which each
such share shall be exchanged, or to which each such share shall be entitled,
as the case may be.  Adjustment under the
preceding provisions of this Section 11 will occur automatically upon any
such change in the outstanding Stock of the Company.  No fractional interest will be issued under
the Plan on account of any such adjustment.

 

12.           Conditions to Delivery of
Stock and Registration. 
Nothing herein shall require the Company to issue or the transfer agent
to deliver any shares with respect to the Award if (a) that issuance
would, in the opinion of counsel for the Company, constitute a violation of the
Securities Act of 1933, as amended, or any similar or superseding statute or
statutes, any other applicable statute or regulation, or the rules of any
applicable securities exchange or securities association, as then in effect; or
(b) the withholding obligation as provided in Section 13 of this
Agreement has not been satisfied.  From
time to time, the Board and appropriate officers of the Company are authorized
to and shall take whatever actions are necessary to file required documents
with governmental authorities, stock exchanges, and other appropriate persons
to make shares of Stock available for issuance.

 

13.           Payment of Taxes.  The delivery of shares of Stock pursuant to
this Award is conditioned upon satisfaction of any withholding obligation
described in this Section 13.  The
Awardee may be required, from time to time, in the Company’s discretion, to pay
to the Company (or any Subsidiary or Affiliate as applicable), the amount that
the Company deems necessary to satisfy the Company’s or its Subsidiary’s or
Affiliate’s current or future obligation to withhold federal, state or local
income or other taxes incurred by the Awardee as a result of the Award.  With respect to any required tax withholding
obligation, the Company will withhold from the gross number of shares of Stock
to be issued upon vesting a number of shares equal in value to the amount of
such obligation, based on the shares’ Fair Market Value at the time such
obligation is incurred or, upon timely request by the Awardee, the Company may,
in its sole 

 

3

 

discretion,
allow the Awardee to deliver to the Company (a) sufficient shares of Stock
to satisfy any required tax withholding obligation, based on the shares’ Fair
Market Value at the time such obligation is incurred or (b) sufficient
cash to satisfy such obligation in lieu of such withholding by the
Company.  In the event that the Company
subsequently determines that the aggregate Fair Market Value of any shares of
Stock withheld by the Company or submitted by the Awardee as payment of any tax
withholding obligation is insufficient to discharge that tax withholding
obligation, then the Awardee shall pay to the Company, immediately upon the
Company’s request, the amount of that deficiency in cash.

 

14.           Company Records.  Records of the Company or its Subsidiaries or
Affiliates regarding any period(s) of employment, termination of
employment and the reason therefor, leaves of absence, re-employment, and other
matters shall be conclusive for all purposes hereunder, unless determined by
the Company to be incorrect.

 

15.           Right of the Company and
Subsidiaries to Terminate Employment.  Nothing contained in this Agreement shall
confer upon the Awardee the right to continue in the employ of the Company or
any Subsidiary or Affiliate, or interfere in any way with the rights of the
Company or any Subsidiary or Affiliate to terminate the Awardee’s employment at
any time.

 

16.           No Liability for Good Faith
Determinations.  The members
of the Board and the Committee shall not be liable for any act, omission,
interpretation or determination taken or made in good faith with respect to
this Agreement or the Restricted Stock granted hereunder and all members of the
Board or the Committee and each and any officer or employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully indemnified
and protected by the Company with respect to any such action, determination or
interpretation.

 

17.           Severability.  If any provision of this Agreement is held to
be illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining provisions hereof, but such provision shall be fully
severable and this Agreement shall be construed and enforced as if the illegal
or invalid provision had never been included herein.

 

18.           Successors.  This Agreement shall be binding upon the Awardee,
their legal representatives, heirs, legatees and distributees, and upon the
Company, its successors and assigns.

 

19.           Notices.  Any notices required by or permitted to be
given to the Company under this Agreement shall be made in writing and addressed
to the Secretary of the Company in care of the Company’s Legal Department, 6300
Lamar Avenue, Overland Park, Kansas 66202. 
Any such notice shall be deemed to have been given when received by the
Company.

 

20.           Headings.  The titles and headings herein are included
for convenience of reference only, do not constitute a part of this Agreement
and shall not be deemed to limit or affect any of the provisions hereof.

 

21.           Rules of Construction.  This Agreement has been executed and
delivered by the Company in Kansas and shall be construed and enforced in
accordance with the laws of said 

 

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State,
other than any choice of law rules calling for the application of laws of
another jurisdiction.  Should there be any
inconsistency or discrepancy between the provisions of this Agreement and the
terms and conditions of the Plan under which this Award is granted, the
provisions in the Plan shall govern and prevail.

 

22.           Amendment.  This Agreement may be amended by the Committee;
provided, however, that no amendment may decrease rights inherent in this Award
prior to such amendment without the express written consent of the parties
hereto.  Notwithstanding the provisions
of this Section 22, this Agreement may be amended by the Committee to the
extent necessary to comply with applicable laws and regulations and to conform
the provisions of this Agreement to any changes thereto.

 

23.           Effective Date.  This Agreement has been executed this         
day of                           ,
20      , effective as of                           ,
20      .

 

 

	
   

  	
  WADDELL & REED FINANCIAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Daniel P. Connealy, Senior Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Company”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Awardee”

  

 

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STOCK POWER

 

FOR VALUE RECEIVED,            
does hereby assign and transfer unto Waddell &
Reed Financial, Inc. (51-0261715)                     
shares of Class A common stock of Waddell & Reed Financial, Inc.,
a Delaware corporation, granted on                               ,
20      , as evidenced by the Restricted
Stock Award Agreement of even date therewith and standing in the name of the
undersigned on the books of Waddell & Reed Financial, Inc.  The undersigned does hereby appoint
Computershare Trust Company, N.A. as attorney-in-fact to transfer the said
stock on the books of Waddell & Reed Financial, Inc. with full
power of substitution in the premises.

 

Dated as of this         
day of                         ,
20      .

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6Exhibit 10.(a)

 

[Sutherland Asbill and Brennan LLP
letterhead]

 

      STEPHEN E. ROTH

   DIRECT LINE: 202.383.0158

Internet:
steve.roth@sutherland.com

 

April 27, 2009

 

Board of Directors

Protective Life Insurance Company

2801 Highway 201 South

Birmingham, Alabama 35223

 

Directors:

 

We hereby consent to the reference to our
name under the caption “Legal Matters” in the statement of additional
information filed as part of post-effective amendment number 20 to the
registration statement on Form N-4 (File No. 33-70984) filed by
Protective Life Insurance Company and Protective Variable Annuity Separate
Account with the Securities and Exchange Commission.  In giving this consent, we do not admit that
we are in the category of persons whose consent is required under Section 7
of the Securities Act of 1933.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  SUTHERLAND ASBILL & BRENNAN LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen E. Roth

  
	
                

  	
   

  	
  Stephen E. Roth

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