Burlington Resources Restricted Stock Award Letter under 2002 Stock Incentive Plan

Contract Categories: Human Resources › Bonus & Incentive Agreements
Summary

Burlington Resources awards the recipient a specified number of restricted shares of its common stock under the 2002 Stock Incentive Plan, recognizing their contributions to the company. The shares are subject to restrictions that lapse after a set period if the recipient remains employed, or earlier in cases of death, permanent disability, termination without cause, or for good reason. The recipient can vote the shares and receive dividends during the restriction period. Tax implications are outlined, including the option for a section 83(b) election. The grant is governed by the terms of the Plan.

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EX-10.2 3 exhibit2.htm EX-10.2 EX-10.2

EXHIBIT 10.2

[BR Letterhead]

[Date]

[Name and Address]

Dear [ ]:

At the meeting of the Compensation Committee of the Board of Directors on [     ], you were awarded [     ] restricted shares of Burlington Resources common stock under the Company’s 2002 Stock Incentive Plan. This award is in recognition of your contribution to the continued success of Burlington Resources.

The restrictions on the stock will lapse automatically on [ ] if you are still employed with BR, or earlier if you die or incur a Permanent Disability (as defined in the Plan). If your employment is terminated without Cause (as defined in the Plan) or for Good Reason (as defined by the Plan) the restrictions will also lapse. During the restriction period these shares may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of. However, you may vote the shares and receive any dividends during the restricted period. Dividends will be paid directly to you.

Under current tax laws, no tax is due on the shares during the restriction period, except that dividends paid are taxed in the year received as ordinary income. When the restrictions lapse, ordinary income tax is due on the current market value of the shares. If you prefer, you may make a section 83(b) election to be taxed on the value of the stock at the time of grant, provided such election is made within 30 days of the grant date in accordance with IRS regulations. If such an election is made, dividends received during the restriction period will not be subject to withholding.

This grant is subject to all terms and conditions of the Plan.

Again, thank you for your efforts. If you have any questions, please contact [ ] in Human Resources.

Sincerely,

[ ]