This excerpt taken from the GPS DEF 14A filed Mar 28, 2006.
Restricted and Unrestricted Stock Awards
Restricted stock awards are shares of the Companys common stock which vest in accordance with terms established by the Committee in its discretion. Unrestricted stock awards are shares of the Companys common stock that have no restrictions such as vesting terms. The number of Shares of restricted and unrestricted stock granted to any employee or consultant will be determined by the Committee, but during any fiscal year of the Company, no participant may be granted more than 2,000,000 Shares.
In determining the vesting schedule for any Award of restricted stock, the Committee may impose whatever conditions to vesting it determines to be appropriate. For example, the Committee
may (but is not required to) provide that restricted stock will vest only if one or more performance objectives are satisfied and/or only if the participant remains employed with the Company for a specified period of time. If the Committee desires that the Award qualify as performance-based compensation under Section 162(m) of the Code, any restrictions will be based on a specified list of performance goals (see Performance Goals above for more information).
Unless the Committee determines otherwise, Shares of restricted stock will be held by the Company as escrow agent until any restrictions on the Shares have lapsed. The Committee may accelerate the time at which any restriction may lapse or be removed.
On the date set forth in the Award agreement, all unvested restricted stock will be forfeited to the Company.