Big Lots 2007 Annual Report Download - page 60

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before the first anniversary after the grant date. Pursuant to the terms of the 2005 Incentive Plan, the Committee
may accelerate the vesting of SARs. A SAR shall expire no later than 10 years after the grant date. In general, a
SAR expires upon the earlier of (i) its stated expiration date or (ii) one year after the participant terminates service.
SARs may be granted on a stand-alone basis or in tandem with another Award. A stand-alone SAR is a SAR that
is not associated with any other Award. A tandem SAR is a SAR that is granted in association with a stock option,
is subject to the same terms that affect the stock option and may be exercised instead of the stock option (in which
case the stock option is cancelled) or expires if the stock option is exercised.
Restricted Stock
A restricted stock Award represents our common shares that are issued subject to restrictions on transfer and
vesting requirements as determined by the Committee. Vesting requirements may be based on the continued
service of the participant for specified time periods or the attainment of a specified business performance goal
established by the Committee. In general, no more than one-third of simultaneously granted restricted stock
Awards may vest before each of the first three anniversary dates after the grant date. However, if vesting is based
on the attainment of a specified business performance goal established by the Committee, then the restricted stock
may not vest sooner than the first anniversary after the grant date.
Subject to the transfer restrictions and vesting requirements of the restricted stock Award, the participant has the
same rights as our shareholders during the restriction period, including all voting and dividend rights, although the
Committee may provide that dividends and restricted stock certificates will be held in escrow during the restriction
period (and forfeited or distributed depending on whether applicable performance goals or service restrictions
have been met). Also, any stock dividends will be subject to the same restrictions that apply to the restricted stock
upon which the stock dividends are issued. Unless the Committee specifies otherwise in the Award agreement,
the restricted stock is forfeited if the participant terminates service before the restricted stock vests or if applicable
terms and conditions have not been met at the end of the restriction period.
Restricted Stock Units
An Award of restricted stock units provides the participant the right to receive a payment based on the value of our
common shares. Restricted stock units may be subject to such vesting requirements, restrictions and conditions
to payment as the Committee determines are appropriate. Vesting requirements may be based on the continued
service of the participant for a specified time period or on the attainment of a specified business performance goal
established by the Committee. In general, no more than one-third of simultaneously granted restricted stock unit
Awards may vest before each of the first three anniversary dates after the grant date. However, if vesting is based
on the attainment of a specified business performance goal established by the Committee, then the restricted stock
units may not vest sooner than the first anniversary after the grant date. Restricted stock units are payable in cash,
our common shares or a combination of both, as determined by the Committee.
Participants receiving restricted stock units do not have, with respect to such restricted stock units, any of the
rights of a shareholder. Unless the Committee specifies otherwise in the Award agreement, the restricted stock unit
Award is forfeited if the participant terminates service before the restricted stock unit vests or if applicable terms
and conditions have not been met at the end of the restriction period.
Performance Units
An Award of performance units provides the participant the right to receive our common shares if specified
terms and conditions are met. Vesting requirements may be based on the continued service of the participant for a
specified time period or on the attainment of a specified business performance goal established by the Committee.
In general, no more than one-third of the performance units may vest before each of the first three anniversary
dates after the grant date. However, if vesting is based on the attainment of specified business performance goals
established by the Committee, then the performance units may not vest sooner than the first anniversary after the
grant date. Performance unit Awards are payable in cash, our common shares or a combination of both. If cash
settlement is made, the amount distributed will be the fair market value of the number of common shares that
otherwise would have been distributed to settle the performance units. Unless the Committee specifies otherwise
in the Award agreement, the performance units are forfeited if the participant terminates service before the
performance units are earned.