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Stock offer in a new Job, Serious answers please.?

I just got a new job and in the offer letter, one of the paragraphs says: Restricted stock: 100 initial shares of restricted stock, and an additional award of company restricted stock with a value of $20,000, awarded on the last business day of the month following your hire date. In addition, you will be granted a minimum value of $20,000 of restricted stock not later than August 1, 2010, and an award a minimum value of $35,000 not later than August 1, 2011. In each case the value and corresponding number of shares to be awarded will be calculated using the closing stock price as of the last business day of the month prior to the month of the award, and will vest at 25% per year over a four year period). We view stock ownership by every employee as an important part of sharing in the company’s success! Please, can someone break this down for me, I 'm new in this financial stuffs. Is that an optional stock option that I can invest that much from my salary, or it is an additional bonus/incentive that I will automatically own? if it is, is it money I have to leave in the company or I can withdraw it and use it as cash. Please help me explain. Thank you.

Public Comments

1. It's an incentive/bonus they are giving you free of charge. It doesn't come out of your salary. When you leave the company or retire you must sell it back to the company at the current market price. You can't sell it on the open market since it's restricted stock. If you leave in less than four years you get the vested percentage. 25% after one year, 50% after two, 75% after three, and after four years 100%.
2. You seem to be in luck with restricted shares. Its means once you meet requirements (like how long you've worked there) the stock is yours and you will essentially own part of the company you work for. It is an additional incentive for you as an employee. You will get 100 shares now, and $20,000 worth on the last day of the next month (if you were hired this month, then that day would be April 30th.) You will get additional shares in 2010 and 2011. The value of the shares will be dependent on the current trading price of the last business of the month before you were awarded those shares. 25% of all the shares will be yours over 4 years, and that the end of those 4 years, you will own all shares. if you leave the company before the 4 years are up, you will only get whatever amount you have at that time. Pretty nice deal you have there.