This excerpt taken from the FE DEF 14A filed Apr 2, 2007.
A restricted stock grant differs from a restricted stock unit grant in that the appropriate number of shares are purchased on the open market, as soon as practicable, after the date the signed restricted stock grant agreement is received. Restricted stock grants are awarded under the terms and conditions of the Plan. Though the Committee has the authority to modify all or select stock grants, the Compensation Committee has not taken such action since 2002.
The vesting terms and conditions of restricted stock grants vary. Executives receiving restricted stock have full voting rights. During the vesting period, dividends are earned and applied quarterly, at the same rate as shareholders. Cash dividends are converted automatically into shares and are subject to the same restrictions as the original grant. Under the Statement 123R provisions, the grant date fair market value for restricted stock is the purchase price plus commission paid for the restricted stock times the number of shares granted. The purpose and methods of granting restricted stock, in general, and detailed information regarding Mr. Alexanders grant are explained further in the Other Equity Awards section of the CD&A and are reflected in the Summary Compensation Table. Based on the Stock Ownership/Retention Guidelines section of the CD&A, once restrictions lapse on Mr. Alexanders restricted stock grant, he is restricted further from selling more than 50 percent of all remaining shares, after taxes are paid, until his employment terminates.