Exhibit 10.35


 


CONCEPTUS, INC.


 


Amended and Restated Independent Director Equity
Compensation Policy


 


Adopted December 11, 2007


 


1.             General. 
This Amended and Restated Independent Director Equity Compensation
Policy (the “Policy”) is adopted by the Board of Directors (the “Board”)
in accordance with Section 12 of the Conceptus, Inc. Ninth Amended
and Restated 2001 Equity Incentive Plan (the “Plan”) and amends and
restates in its entirety that certain Independent Director Equity Compensation
Policy adopted by the Board as of April 12, 2007 (the “Prior Policy”).  Capitalized but undefined terms used herein
shall have the meanings provided for in the Plan.


 


2.             Board Authority. 
Pursuant to Section 12 of the Plan, the Board is responsible for
adopting a written policy for the grant of Awards under the Plan to Independent
Directors, which policy is to specify, with respect to any such Awards, the
type of Award(s) to be granted Independent Directors, the number of Shares
to be subject to Independent Director Awards, the conditions on which such
Awards shall be granted, become exercisable and/or payable and expire, and such
other terms and conditions as the Board determines in its discretion.


 


3.             Initial Equity Grants to Independent Directors.  Each person who is initially elected to the
Board as an Independent Director shall be granted, automatically and without
necessity of any action by the Board or any committee thereof, on the date of
such initial election Restricted Stock Units with respect to that number of shares
of Common Stock (subject to adjustment as provided in Section 18 of the
Plan) calculated by dividing $300,000 by the per share Fair Market Value of the
Common Stock on the date of grant (“Initial RSUs”).  Notwithstanding the foregoing, members of the
Board who are employees of the Company and who subsequently terminate
employment with the Company and remain members of the Board shall not receive
Initial RSUs.


 


4.             Subsequent Equity Grants to Independent Directors.  Each person who is an Independent Director
immediately following an annual meeting of stockholders (provided that, on such date, he or she
shall have served on the Board for at least six (6) months prior to the
date of such annual meeting) shall be granted, automatically and without
necessity of any action by the Board or any committee thereof, on the date of
such annual meeting Stock Appreciation Rights with respect to that number of
shares of Common Stock (subject to adjustment as provided in Section 18 of
the Plan) calculated by dividing $112,000 by the per share Fair Market Value of
the Common Stock on the date of grant (“Annual SARs”).  Members of the Board who are employees of the
Company and who subsequently terminate employment with the Company and remain
on the Board, to the extent that they are otherwise eligible, shall receive,
after termination of employment with the Company, Annual SARs pursuant to this Section 4
(with the date of his or her termination of employment being deemed to be his
or her date of initial election to the Board).


 

















 


5.             Lead Independent Director and Committee Chair Grants.  In addition to the grants in Section 3
and Section 4:


 


(i)            the Lead Independent Director, as
appointed by the Board, who is serving in such capacity immediately following
an annual meeting of stockholders shall be granted, automatically and without
necessity of any action by the Board or any committee thereof, on the date of
such annual meeting Stock Appreciation Rights with respect to that number of
shares of Common Stock (subject to adjustment as provided in Section 18 of
the Plan) calculated by dividing $28,000 by the per share Fair Market Value of
the Common Stock on the date of grant;


 


(ii)           the Independent Director who is
serving as the Chair of the Audit Committee of the Board immediately following
an annual meeting of stockholders shall be granted, automatically and without
necessity of any action by the Board or any committee thereof, on the date of
such annual meeting Stock Appreciation Rights with respect to that number of
shares of Common Stock (subject to adjustment as provided in Section 18 of
the Plan) calculated by dividing $17,500 by the per share Fair Market Value of
the Common Stock on the date of grant; and


 


(iii)          the Independent Director who is
serving as the Chair of the Compensation Committee of the Board immediately
following an annual meeting of stockholders shall be granted, automatically and
without necessity of any action by the Board or any committee thereof, on the
date of such annual meeting Stock Appreciation Rights with respect to that
number of shares of Common Stock (subject to adjustment as provided in Section 18
of the Plan) calculated by dividing $10,500 by the per share Fair Market Value
of the Common Stock on the date of grant.


 


The Stock Appreciation Rights granted pursuant to this Section 5
shall each be referred to herein as  “Additional
SARs”.


 


6.             Terms of Awards Granted to Independent Directors.


 


(i)            Stock
Appreciation Rights.  The per Share
exercise price of each Stock Appreciation Right granted to an Independent
Director shall equal one hundred percent (100%) of the Fair Market Value of a
share of Common Stock on the date the Stock Appreciation Right is granted.  Annual SARs and Additional SARs shall vest
and become exercisable as follows:  one
half (1/2) of the shares subject
to the Annual SARs and Additional SARs (rounded down to the next whole number
of shares) shall vest on each anniversary of the date of grant for such Annual
SARs and Additional SARs, such that the Annual SARs and the Additional SARs shall
be one hundred percent (100%) vested on the second anniversary of the date of
grant for such Annual SARs and Additional SARs. 
Subject to Section 10 of the Plan, the term of each Stock
Appreciation Right granted to an Independent Director shall be ten (10) years
from the date the Stock Appreciation Right is granted.  No portion of a Stock Appreciation Right
which is unexercisable at the time of an Independent Director’s termination of
membership on the Board shall thereafter become exercisable.  Payment of each Stock Appreciation Right
shall be in shares of Common Stock.


 


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(ii)           Restricted
Stock Units.  The Initial RSUs shall
vest with respect to one fifth (1/5th) of the shares subject to such Restricted
Stock Units on each anniversary of the date of grant such that one hundred
percent (100%) of the shares subject to such grant of Restricted Stock Units
shall be full vested on the fifth (5th) anniversary of the date of grant.  To the extent vested pursuant to the
preceding sentence, the shares of Common Stock subject to each Restricted Stock
Unit shall be transferred to the holder thereof as soon as administratively
practicable following the date such holder ceases to be a Service Provider.  Any Restricted Stock Units which have not
vested on or prior to the date an Independent Director ceases to be a Service
Provider shall be automatically forfeited. 
The Restricted Stock Unit agreement evidencing each grant of Initial
RSUs shall contain such other terms, provisions and conditions not inconsistent
with the Plan as may be determined by the Administrator in its sole discretion.


 


7.             Effect of Acquisition.  Upon an Acquisition of the Company, all
Awards held by an Independent Director shall become fully vested and/or
exercisable, irrespective of any other provisions of the Independent Director’s
Award Agreement.


 


8.             Effect of Other Plan Provisions.  The other provisions of the Plan shall apply
to the Awards granted automatically pursuant to this Policy, except to the
extent such other provisions are inconsistent with this Policy.


 


9.             Treatment of Awards Previously Issued Under the Plan.  Prior to the Policy Effective Date (as
hereinafter defined), the Company issued Awards to Independent Directors.  Those Awards will continue to be governed by Section 12
and Section 13 of the Plan or the Prior Policy, as the case may be, in
either case, as in effect as of their date of grant; provided,
however, that Section 7 of this
Policy shall apply retroactively to such Awards previously granted.


 


10.           Incorporation of the Plan.  All applicable terms of the Plan apply to
this Policy as if fully set forth herein, and all grants of Awards hereby are
subject in all respect to the terms of such Plan.


 


11.           Written Grant Agreement.  The grant of any Award under this Policy shall
be made solely by and subject to the terms set forth in a written agreement in
a form to be approved by the Board and duly executed by an executive officer of
the Company.


 


12.           Policy Subject to Amendment, Modification
and Termination.  This Policy may be
amended, modified or terminated by the Board in the future at its sole
discretion.  No Independent Director
shall have any rights hereunder unless and until an Award is actually
granted.  Without limiting the generality
of the foregoing, the Board hereby expressly reserves the authority to
terminate this Policy during any year up and until the election of directors at
a given annual meeting of stockholders.


 


13.           Effectiveness.  This policy shall become effective as of January 1,
2008 (the “Policy Effective Date”).


 


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