Document:

EXHIBIT 10.1

 

Exhibit 10.1

UST INC.

AMENDED AND RESTATED STOCK INCENTIVE PLAN

NOTICE OF GRANT OF STOCK OPTION

     This Notice is to certify that the Optionee named below has been granted
the number of options set forth below under the UST Inc. Amended and restated
Stock Incentive Plan (the “Plan”) and the terms and conditions set forth in
this Notice and attached Nonstatutory Stock Option Agreement (the “Agreement”).
This Notice is subject to and incorporates by reference the terms and
conditions of the Agreement, a copy of which is enclosed. Please refer to the
Agreement and the Plan document for an explanation of the terms and conditions
of this grant and a full description of your rights and obligations. You must
sign this Notice in order for the grant to be effective. Please sign and date
the Notice and return it promptly in the enclosed envelope. Regardless of
whether we receive your signed Notice, any attempt to exercise the option will
signify your acceptance of the terms and conditions of the Agreement and of the
Plan.

	 	 	 
	Name of Optionee:

	 	[                       ]
	 
	 	 
	Type of Option:

	 	[Nonstatutory  ]
	 
	 	 
	Number of Shares Under Option:

	 	[                       ]
	 
	 	 
	Per Share Exercise Price:

	 	[                       ]
	 
	 	 
	Grant Date:

	 	[                       ]
	 
	 	 
	Vesting Schedule:

	 	[#] Shares, on the first anniversary of the Grant Date,
	

	 	[#] Shares, on the second anniversary of the Grant Date,
	

	 	[#] Shares, on the third anniversary of the Grant Date.
	 
	 	 
	Expiration Date:

	 	[month, day], 20   PM.
	 
	 	 
	Additional Terms:

	 	See the Nonstatutory Stock Option Agreement.

By signing this Notice of Grant of Stock Option, you acknowledge that you have
read the attached Nonstatutory Stock Option Agreement and agree to the terms
and conditions specified therein and in the Plan.

	 	 	 	 	 	 	 
	
	 	

	Employee Signature

	 	 	 	Date	 	 
	 
	 	 	 	 	 	 
	PLEASE PRINT NAME BELOW
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 

 

 

UST INC.

AMENDED AND RESTATED STOCK INCENTIVE PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

     NONSTATUTORY STOCK OPTION AGREEMENT, made as of the date set forth on the
Notice of Grant of Stock Option pursuant to the UST Inc. Amended and Restated
Stock Incentive Plan (the “Plan”), between UST Inc., a Delaware corporation
(the “Company”), and the employee of the Company or a Subsidiary named on the
Notice of Grant of Stock Option (the “Employee”).

     WHEREAS, the Company desires, by affording the Employee an opportunity to
purchase shares of its common stock, $.50 par value (“Common Stock”), as
hereinafter provided and subject to the terms and conditions hereof, to carry
out the purpose of the Plan; and

     WHEREAS, the Committee administering the Plan has granted (as of the
effective date of grant specified in the Notice of Grant of Stock Option) to
the Employee the number of options as set forth in the Notice of Grant of Stock
Option.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth and for other good and valuable consideration, the parties hereto have
agreed and do hereby agree as follows:

	1.	 	Grant. The Company has granted to the Employee a Nonstatutory Stock Option
(the “Option”) to purchase the aggregate number of shares as shown on the
Notice of Grant of Stock Option, subject to adjustment as provided in the Plan,
on the terms and conditions herein set forth.
	 
	2.	 	Exercise Price. The exercise price of the shares of Common Stock covered by
the Option shall be as shown on the Notice of Grant of Stock Option.
	 
	3.	 	Vesting. Except as set forth below, the Option shall be exercisable in
accordance with the schedule of vesting dates (each, a “Vesting Date”) as shown
on the Notice of Grant of Stock Option, and shall expire at the close of
business on the date shown on the Notice of Grant of Stock Option. The Option
may be exercised either for the total number of shares granted, or for less
than the total number, in multiples of 100 shares. In the event that the
Employee makes a “hardship withdrawal” under the UST Inc. Employees’ Savings
Plan (the “Savings Plan”), as amended from time to time, the right of exercise
shall be suspended during the period prescribed by the Savings Plan beginning
on the date of such withdrawal, except that this restriction shall not apply if
for any reason such suspension is not required under Section 401(k) of the Code
or any final regulations issued thereunder.

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	4.	 	No Rights as a Shareholder or to Continued Employment. The holder of the
Option shall have none of the rights of a shareholder with respect to the
shares covered by the Option until the shares are issued or transferred to such
Optionee upon exercise of the Option. The Option shall not confer on the
Employee any right to continued employment.
	 
	5.	 	No Transferability. Except as permitted by the Committee in its sole
discretion, the Option shall not be transferable other than by will or by the
laws of descent and distribution and shall be exercisable during the Employee’s
lifetime only by the Employee or by his/her guardian or legal representative.
The Committee may, in its sole discretion, permit the transfer of the Option to
a Permitted Transferee subject to any conditions that the Committee may
prescribe, provided, however, that in no event may the Option be transferred
for consideration. In the event that the Committee approves a transfer of the
Option, the Permitted Transferee must pay the exercise price of the Option in
cash.
	 
	6.	 	Adjustments; Change in Control. In the event of any change in the
outstanding shares of Common Stock, through declaration of stock or other
dividends or distributions with respect to such shares, through restructuring,
recapitalization or other similar event or through stock splits, change in par
value, combination or exchange of shares, or the like, then the number or kind
of shares covered by the Option and/or the purchase price of the shares covered
by the Option, as appropriate, shall be adjusted proportionately, as necessary
to reflect equitably such changes; provided, however, that any fractional
shares resulting from such adjustment shall be eliminated. Upon the occurrence
of a Change in Control prior to the expiration of the Option, any then
unexercisable portion of the Option shall become immediately vested and/or
exercisable. Upon a Change in Control where the Company is not the surviving
corporation (or survives only as a subsidiary of another corporation) or other
Change in Control described in clause (iii) of the definition of “Change in
Control,” the Option shall be canceled and, in exchange therefore, the Company
shall pay the Employee an amount in cash equal to the difference between the
per share exercise price of such Option and the Fair Market Value of a share of
Common Stock on such date during the prior sixty-day period as produces the
highest Fair Market Value.
	 
	7.	 	Method of Exercise. Upon the exercise of the Option, the exercise price may
be paid (i) in full in cash or (ii) in accordance with paragraph 8 hereof. The
Option shall be exercised by written notice of election substantially in form
of Exhibit A hereto and delivered in person or by regular mail to the Company
at its principal executive office. Such notice shall specify the number of
shares to be purchased and the manner in which payment is to be made, i.e.,
whether in cash as provided in this paragraph 7 hereof or by installment note
in accordance with paragraph 8 hereof.
	 
	8.	 	Loan. If at the time of exercise, the Employee is an employee of the
Company or a Subsidiary, but not an executive officer of the Company, the
Employee may pay the purchase price by paying in cash at least $1.00 per share
upon exercise and the balance in

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	 	 	installments, subject to the requirements of
the Federal Reserve Board. Upon receipt by the Company of such payment of at
least $1.00 per share and the Employee’s personal
installment promissory note for the balance of the purchase price, certificates
for the shares as to which the Option is exercised shall be issued and
registered in the name of the Employee and shall be delivered to the Company to
be held as collateral security for the payment of the note. Installment notes
shall bear interest on unpaid balances at the applicable federal rate in effect
under Section 1274(d) of the Internal Revenue Code of 1986, as amended, on the
date on which the loan is made, compounded semiannually, or the equivalent
thereof; shall be in substantially the form of Exhibit B hereto; and shall
contain provisions for (i) acceleration in the event of default or termination
of employment, and (ii) authorization to the Company to sell the shares and
apply the proceeds in the event of default. Installment notes shall be drawn
in each case requiring the payment of equal installments of principal at such
intervals elected by the Employee (annually, semiannually, quarterly or
biweekly); provided, however, that the term of an installment note shall not
exceed ten (10) years.
	 
	9.	 	Effect of Termination of Employment. If the employment of the Employee is
terminated by reason of his/her death or Disability, or upon his/her
Retirement, or for any other reason if the Committee so determines, any portion
of the Option that has not theretofore become vested and exercisable shall
become fully vested and exercisable as of the date of such termination of
employment. Options that remain outstanding at the effective date of a
termination by reason of death, Disability or Retirement shall remain
exercisable until the expiration of the original term. If the employment of
the Employee is terminated for any other reason and if the Committee does not
determine otherwise, any portion of the Option that has not theretofore become
vested and exercisable shall be forfeited and shall lapse. Any portion of the
Option that has vested as of the date of the Employee’s termination of
employment other than for Cause shall be exercisable for a period of 90 days
following the date of termination. Upon expiration of such 90 day period, any
unexercised portion of the Option shall terminate in full and shall lapse.
Notwithstanding the foregoing, in no event may the Option be exercised after
the Option’s Expiration Date. For purposes of this Agreement, the term
“Disability” shall mean a “disability,” as defined in the Company’s Long-Term
Disability Plan or, if such plan is not applicable to the Employee, as defined
by the State or federal disability program which applies to the Employee and
(ii) the term “Retirement” shall mean the retirement of the Employee from the
Company, as defined in any employee retirement plan of the Company in which the
Employee participates.
	 
	10.	 	Finding of Cause.

	(a)	 	If (i) the employment of the Employee is terminated for Cause
or (ii) after the Employee’s termination of employment with the
Company other than for Cause, the Company discovers the occurrence
of an act or failure to act by the Employee, while in the employ of
the Company, that would have enabled the Company to terminate the
Employee’s employment for Cause had the Company known of such

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	 	 	act or
failure to act at the time of its occurrence, or (iii) subsequent to
his termination of employment, the Employee commits a Competitive
Act and, in each case, if the act constituting Cause is a
Competitive Act or Willful Misconduct, such act is
discovered by the Company within three (3) years of its
occurrence, then, unless otherwise determined by the Committee,

	(i)	 	any portion of the Option (whether or not then
exercisable) that has not been exercised as of the date of
such termination or discovery shall thereupon be forfeited
and shall lapse; and
	 
	(ii)	 	if the act constituting Cause is a Competitive
Act or Willful Misconduct, the Employee (or, in the event of
the Employee’s death following the commission of such act,
his beneficiaries or estate) shall (A) sell back to Company
all Acquired Shares (as defined in paragraph (b) of this
Section 10) held by the Employee (or, if applicable, his
beneficiaries or estate) as of the date of such termination
or discovery, for a per share price equal to the per share
exercise price of the Option, and (B) to the extent such
Acquired Share have previously been sold or otherwise
disposed of by the Employee, other than by reason of death
(or if applicable, by his beneficiaries or estate), repay to
the Company the excess of the aggregate Fair Market Value of
such Acquired Shares on the date of such sale or disposition
over the aggregate exercise of such Acquired Shares.
	 
	(iii)	 	for purpose of clause (a)(2)(B) of this
Section 10, (A) the amount of repayment described therein
shall not be affected by whether the Employee (or, if
applicable, his/her beneficiaries or estate) actually
received such Fair Market Value with respect to such sale or
other disposition, and (B) repayment may, without
limitation, be affected, at the discretion of the Company, by
means of offset against any amount owed by the Company to the
Employee (or, if applicable, his/her beneficiaries or
estate).

	(b)	 	For purposes of this Agreement, Acquired Shares shall mean
shares of Common Stock that were acquired upon exercise of the
Option on or after the date which is 180 days prior to the
Employee’s termination of employment.

	11.	 	Approvals. The sale and delivery of any shares of Common Stock hereunder
is subject to approval of any government agency which may, in the opinion of
counsel, be required in connection with the authorization, issuance or sale of
Common Stock. No Common Stock shall be issued under the Option prior to
compliance with such requirements and with the Company’s listing agreement with
the New York Stock Exchange (or other national exchange upon which the
Company’s shares may then be listed).

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	12.	 	Incorporation of Plan. This Agreement is made under the provisions of the
Plan (which is incorporated herein by reference) and shall be interpreted in a
manner consistent with it. To the extent that any provision in this Agreement
is in conflict with
the Plan, the provisions of the Plan shall control. Unless otherwise defined
herein or otherwise required by the context, all terms used herein shall have
the meaning ascribed to them in the Plan.
	 
	13.	 	Notices. Any notices required or permitted hereunder shall be addressed to
the Company, at 100 West Putnam Avenue, Greenwich, Connecticut 06830, or to the
Employee at the address then on record with the Company, as the case may be,
and deposited, postage prepaid, in the United States mail; provided, however,
that a notice of election pursuant to paragraph 7 hereof shall be effective
only upon receipt by the Company of such notice and all necessary
documentation, including payment. Either party may, by notice to the other
given in the manner aforesaid, change his/her or its address for future
notices.
	 
	14.	 	Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware. The Committee shall have
final authority to interpret and construe the Plan and this Agreement and to
make any and all determinations under them, and its decision shall be binding
and conclusive upon the Employee and his/her legal representative in respect of
any questions arising under the Plan or this Agreement.
	 
	15.	 	Successor. This Agreement shall bind and inure to the benefit of the
Company, its successors and assigns, and the Employee and his or her personal
representatives and beneficiaries.
	 
	16.	 	Amendment. This Agreement may be amended or modified by the Company at any
time; provided that notice is provided to the Employee in accordance with
Section 13; and provided further that no amendment or modification that is
adverse to the rights of the Employee as provided by this Agreement and the
related Notice of Grant of Stock Option shall be effective unless set forth in
a writing signed by the parties hereto.
	 
	17.	 	Binding Agreement. This Agreement shall be binding upon the Employee and
his or her personal representatives and beneficiaries without any need for
additional action by the Employee, and any attempt by the Employee and his
or her personal representatives and beneficiaries to exercise any rights
under this Agreement shall be conclusive evidence of such person’s
acceptance thereof.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed
by its officer thereunder duly authorized, as of the day and year set forth
above.

UST INC.

	 	 	 
	

	 	 
	Name:
	 	 
	Title:
	 	 

7EXHIBIT 10.2

 

Exhibit 10.2

UST INC.

AMENDED AND RESTATED STOCK INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

        RESTRICTED STOCK AGREEMENT, made as of the date set forth on the Notice of
Grant of Restricted Stock, and hereby amended as of September 13, 2004, by and
between UST Inc., a Delaware corporation (the “Company”), pursuant to the
Amended and Restated Stock Incentive Plan (the “Plan”) and the employee of the
Company or a Subsidiary named on the Notice of Grant of Restricted Stock (the
“Employee”);

        WHEREAS, the Company desires, by affording the Employee the opportunity to
acquire or enlarge the Employee’s ownership of shares of the Company’s common
stock, $.50 par value (“Common Stock”), providing the Employee with a direct
proprietary interest in the Company’s success, to carry out the purpose of the
Plan; and

        WHEREAS, the Committee administering the Plan has granted (as of the
effective date of grant specified in the Notice of Grant of Restricted Stock)
to the Employee the shares of Restricted Stock as set forth in the Notice of
Grant of Restricted Stock.

        NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth and for other good and valuable consideration, the parties hereto have
agreed and do hereby agree as follows:

        1. Grant of Award. Pursuant to Section 7 of the Plan, the Company grants
to the Employee, subject to the terms and conditions of the Plan and subject
further to the terms and conditions set forth herein, the number of shares of
Restricted Stock as shown on the Notice of Grant of Restricted Stock. The
Participant’s grant and record of Restricted Stock share ownership shall be
kept on the books of the Company until the restrictions on transfer have
lapsed. At the Employee’s request, vested shares may be evidenced by stock
certificates.

        2. Vesting. The shares of Restricted Stock granted to the Employee shall
vest in accordance with the vesting conditions set forth in the Notice of Grant
of Restricted Stock. Such vesting conditions indicate the conditions under and
date upon which the Employee shall be entitled to receive shares of freely
transferable Common Stock equal to the number of vested shares of Restricted
Stock, provided that, as of the vesting date, the Employee has not incurred a
termination of service with the Company and all Subsidiaries (collectively, the
Company and its Subsidiaries shall be referred to herein as the “Company”).
There shall be no proportionate or partial vesting in the periods between the
vesting date(s), if any, specified in the Notice of Grant of Restricted Stock
and all vesting shall occur only on such vesting date(s), except as set forth
in Section 8 below.

 

 

        Other than as set forth in Section 8 below and in the Plan, no vesting
shall occur after the termination of a Employee’s employment or service with
the Company for any reason.

        3. Rights as a Stockholder. The Employee shall have all of the rights of
a stockholder with respect to the Shares of Restricted Stock, including the
right to vote on all matters with respect to which the stockholders of the
Company have the right to vote and the right to receive dividends thereon.

        4. Restrictions on Transfer. Shares of Restricted Stock may not be
transferred or otherwise disposed of by the Employee, including by way of sale,
assignment, transfer, pledge, hypothecation or otherwise, except as permitted
by the Committee, or by will or the laws of descent and distribution.

        5. Approvals. The delivery of any shares of Common Stock hereunder is
subject to approval of any government agency which may, in the opinion of
counsel, be required in connection with the authorization, issuance or sale of
Common Stock. No Common Stock shall be issued upon the lapse of restrictions
relating to the shares of Restricted Stock prior to compliance with such
requirements and with the Company’s listing agreement with the New York Stock
Exchange (or other national exchange upon which the Company’s shares may then
be listed).

        6. Invalid Transfers. No purported sale, assignment, mortgage,
hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting
or other) or other disposition of, or creation of a security interest in or
lien on, any of the shares of Restricted Stock by any holder thereof in
violation of the provisions of this Restricted Stock Agreement shall be valid,
and the Company will not transfer any of said shares of Restricted Stock on its
books nor will any of said shares of Restricted Stock be entitled to vote, nor
will any dividends be paid thereon, unless and until there has been full
compliance with said provisions to the satisfaction of the Company. The
foregoing restrictions are in addition to and not in lieu of any other
remedies, legal or equitable, available to enforce said provisions.

        7. Change in Control. Upon the occurrence of a Change in Control, the
restrictions that apply to any shares of Restricted Stock which have not yet
vested, or with respect to which the restrictions have not lapsed, shall
immediately lapse.

        8. Effect of Termination of Employment. If the employment of the Employee
is terminated by reason of his death or Disability, or upon his Retirement, or
for any other reason if the Committee so determines, the number of shares of
Restricted Stock which have not theretofore become vested in accordance with
Section 2 of this Agreement shall become fully vested as of the date of such
termination of employment. If the employment of the Employee is terminated by
the Company other than for Cause, or by the Employee for Good Reason (as
defined in the Severance Agreement by and between UST Inc., U.S. Smokeless
Tobacco Company and the Employee, dated as of September 13, 2004), the Employee
shall become vested as of the date of termination

2

 

with respect to a pro rata
portion of the shares of Restricted Stock granted pursuant to the Notice of
Grant of Restricted Stock. For this purpose, the pro rata portion shall be the
number of shares granted thereby multiplied by a fraction, the numerator of
which is the number of full months which have elapsed from the Grant Date
specified in the Notice of Grant of Restricted Stock until the date of
termination, and the denominator of which is 60. If the employment of the
Employee is terminated for any other reason and if the Committee does not
determine otherwise, the number of shares of Restricted Stock that have not
theretofore become vested shall be forfeited. For purposes of this Agreement,
the term “Disability” shall mean a “disability,” as defined in the Company’s
Long-Term Disability Plan or, if such plan is not applicable to the Employee,
as defined by the State or federal disability program which applies to the
Employee and (ii) the term “Retirement” shall mean the retirement of the
Employee from the Company, as defined in any employee retirement plan of the
Company in which the Employee participates.

        9. Finding of Cause. If (a) the employment of the Employee is terminated
for Cause or (b) after the Employee’s termination of employment with the
Company other than for Cause, the Company discovers the occurrence of an act or
failure to act by the Employee, while in the employ of the Company, that would
have enabled the Company to terminate the Employee’s employment for Cause had
the Company known of such act or failure to act at the time of its occurrence,
or (c) subsequent to his termination of employment, the Employee commits a
Competitive Act and, in each case, if the act constituting Cause is a
Competitive Act or Willful Misconduct, such act is discovered by the Company
within three (3) years of its occurrence, then, unless otherwise determined by
the Committee,

	(i)	 	any shares of Restricted Stock granted pursuant
to the Notice of Grant of Restricted Stock which have not yet
become vested shall thereupon be forfeited and shall be
returned to the Company; and
	 
	(ii)	 	if the act constituting Cause is a Competitive
Act or Willful Misconduct, the Employee (or, in the event of
the Employee’s death following the commission of such act,
his beneficiaries or estate) shall (A) return to the Company
all shares of Restricted Stock that became vested during the
180 day period prior to and
including the date of the termination of the Employee’s
employment (the “Acquired Shares”) and (B) to the extent
such Acquired Shares granted pursuant to the Notice of
Grant of Restricted Stock have previously been sold or
otherwise disposed of by the Employee, other than by reason
of death (or if applicable, by his beneficiaries or
estate), repay to the Company the Fair Market Value of such
shares on the date of such sale or other disposition.
	 
	(iii)	 	for purpose of clause (ii)(B) above, (A) the
amount of repayment described therein shall not be affected
by whether the Employee (or, if applicable, his beneficiaries
or estate) actually received such Fair Market Value with
respect to such sale or other disposition,

3

 

	 	 	and (B) repayment
may, without limitation, be affected, at the discretion of
the Company, by means of offset against any amount owed by
the Company to the Employee (or, if applicable, his
beneficiaries or estate).

        10. Taxes. The Employee shall pay to the Company promptly upon request,
and in any event at the time the Employee recognizes taxable income in respect
to the shares of Restricted Stock (or, if the Employee makes an election under
Section 83(b) of the Code in connection with such grant, on or about the date
of grant), an amount equal to the federal, state and/or local taxes the Company
determines it is required to withhold under applicable tax laws with respect to
the shares of Restricted Stock. The Employee may satisfy the foregoing
requirement by making a payment to the Company in cash or, with the consent of
the Company, by authorizing the Company to withhold cash otherwise due to the
Employee (e.g., by filing a revised form W-4 to increase payroll tax
withholdings). The Employee shall promptly notify the Company of any election
made pursuant to Section 83(b) of the Code. The Employee understands that
he/she (and not the Company) shall be responsible for any tax liability that
may arise as a result of the transactions contemplated by this Restricted Stock
Agreement.

THE EMPLOYEE ACKNOWLEDGES THAT IT IS THE EMPLOYEE’S SOLE RESPONSIBILITY
AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b) OF
THE CODE, IN THE EVENT THAT THE EMPLOYEE DESIRES TO MAKE THE ELECTION.

        11. Compliance with Law and Regulations; Legend. The award and any
obligation of the Company hereunder shall be subject to all applicable federal,
state and local laws, rules and regulations and to such approvals by any
government or regulatory agency as may be required. The Company may require,
as a condition of the issuance and delivery of certificates evidencing
Restricted Stock pursuant to the terms hereof, that the certificates bear such
legends as set forth immediately below, in addition to any other legends
required under federal and state securities laws or as otherwise determined by
the Committee.

The transferability of this certificate and the shares of stock
represented hereby are subject to the restrictions, terms and conditions
(including forfeiture provisions and restrictions against transfer)
contained in the UST Inc. Amended and Restated Stock Incentive Plan and
an Agreement entered into between the registered owner of such shares and
the Company. A copy of the Plan and Agreement is on file in the office
of the Secretary of the Company, 100 Putnam Avenue, Greenwich,
Connecticut 06830.

Such legend shall not be removed until such shares vest pursuant to the terms
hereof.

        12. Incorporation of Plan. This Agreement is made under the provisions of
the Plan (which is incorporated herein by reference) and shall be interpreted
in a manner consistent with it. To the extent that this Agreement is silent
with respect to, or in any way inconsistent with, the terms of the Plan, the
provisions of the Plan shall

4

 

govern and this Restricted Stock Agreement shall
be deemed to be modified accordingly. Unless otherwise defined herein or
otherwise required by the context, all terms used herein shall have the meaning
ascribed to them in the Plan.

        13. Notices. Any notices required or permitted hereunder shall be
addressed to the Company, at 100 West Putnam Avenue, Greenwich, Connecticut
06830, or to the Employee at the address then on record with the Company, as
the case may be, and deposited, postage prepaid, in the United States mail.
Either party may, by notice to the other given in the manner aforesaid, change
his or its address for future notices.

        14. Successor. This Agreement shall bind and inure to the benefit of the
Company, its successors and assigns, and the Employee and his personal
representatives and beneficiaries.

        15. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware. The Committee shall have
final authority to interpret and construe the Plan and this Agreement and to
make any and all determinations under them, and its decision shall be binding
and conclusive upon the Employee and his legal representative in respect of any
questions arising under the Plan or this Agreement.

        16. Amendment. This Agreement may be amended or modified by the Company
at any time; provided that notice is provided to the Employee in accordance
with Section 13; and provided further that no amendment or modification that is
adverse to the rights of the Employee as provided by this Agreement shall be
effective unless set forth in a writing signed by the parties hereto.

        17. Binding Agreement. This Agreement shall be binding upon the Employee
and his or her personal representatives and beneficiaries without any need for
additional action by the Employee, and any attempt by the Employee and his or
her personal representatives and beneficiaries to exercise any rights under
this Agreement shall be conclusive evidence of such person’s acceptance
thereof. This Agreement
amends and supercedes in its entirety the Restricted Stock Agreement
between the parties dated as of July 28, 2004 and executed by the Employee on
August 7, 2004.

5

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed
by its officer thereunder duly authorized and the Employee has hereunto set his
hand, all as of the day and year set forth below.

UST INC.

	 	 	 
	/s/ VINCENT A. GIERER, JR.
	

	Name:

	 	Vincent A. Gierer, Jr.
	Title:

	 	Chairman of the Board
	

	 	and Chief Executive
	

	 	Officer

The undersigned hereby acknowledges having read this Restricted Stock Agreement
and the Plan and hereby agrees to be bound by all provisions set forth herein
and in the Plan.

	 	 	 
	/s/ MURRAY S. KESSLER

	 	9/14/04
	

	 	

	Employee

	 	Date
	 
	 	 
	Murray S. Kessler
	 	 
	

	 	 
	PLEASE PRINT NAME
	 	 

6

 

UST INC.

AMENDED AND RESTATED STOCK INCENTIVE PLAN

NOTICE OF GRANT OF RESTRICTED STOCK

     This Notice is to certify that the Participant named below has been
granted the number of shares of Restricted Common Stock set forth below under
the terms and conditions set forth in this Notice. This Notice is subject to
and incorporates by reference the terms and conditions of the Restricted Stock
Agreement ((the “Agreement”), a copy of which is enclosed). Please refer to
the Restricted Stock Agreement and the UST Inc. Amended and Restated Stock
Incentive Plan (the “Plan”) document for an explanation of the terms and
conditions of this grant and a full description of your rights and obligations.
You must sign the Agreement in order for this Notice and grant to be
effective. Please sign and date the Agreement on the last page and return it
promptly in the enclosed envelope. Regardless of whether we receive your
signed Agreement, any attempt by you to exercise your rights under the
Agreement will signify your acceptance of the terms and conditions of the
Agreement and of the Plan.

	 	 	 
	Name of Participant:

	 	Murray S. Kessler
	 
	 	 
	Number of Restricted Shares:

	 	50,000
	 
	 	 
	Per Share Value on Grant Date:

	 	$37.66
	 
	 	 
	Grant Date:

	 	July 28, 2004
	 
	 	 
	Vesting Conditions:

	 	50,000 shares shall vest on July 28, 2009
provided and solely to the extent that the
Company has achieved, in any three (3) of
the five (5) year calendar year periods
ending on 12/31/04, 12/31/05, 12/31/06,
12/31/07 and 12/31/08 respectively, both: (A) positive annual Earnings Per Share
(EPS) from continuing operations; and (B) a
dividend payout ratio of at least 50% of
EPS from continuing operations.
	 
	 	 
	Additional Terms:

	 	See the Restricted Stock Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]