Document:

EXHIBIT 10.1

2006 Non-Qualified Stock
Option Award

 

May 17, 2006

2006 Stock
Option Grant for:

[Name
of Director]

This
notice confirms the grant of a non-qualified stock option to you by the Company
on May 2, 2006 to buy 6,400 shares of the Company’s common stock at $36.10 per share as outlined below.

 

	
  Grant Type

  	
   

  	
  Number of Shares

  	
   

  	
  Date First Exercisable

  	
   

  	
  Expiration Date

  
	
  Non-Qualified

  	
   

  	
  6,400

  	
   

  	
  May 2, 2007

  	
   

  	
  May 2, 2016

  

 

                This
stock option is subject to the initial exercise provisions shown above and in no  event are they exercisable
later than May 1, 2016.  These
options may expire before May 2, 2016 if your service as a director ends before
that date.

The
option is subject to the terms and conditions set forth in this letter, the
Summary of Key Terms and the West Pharmaceutical Services, Inc. 2004
Stock-Based Compensation Plan under which they are granted.

You
may exercise your options on Computershare’s Wealthviews
website (https://www.wealthviews.com/WST), or by calling Computershare’s
telephone hotline (1-866-423-5227).  You
will need your USER ID and PIN number. 
If you do not have your PIN number, contact Joanne Boyle in the Law
Department (610-594-2916) and she will assist you.  The only exercise that cannot be performed
over the website or hotline is a stock swap which can be handled via fax on the
form provided with this letter.  Joanne
Boyle can also assist you with this process.

Enclosed
with this award letter is an information packet that contains a form of
Irrevocable Notice of Exercise of Stock Option for Stock Swaps, a Summary of
Key Terms and a Participant Information Statement.  Details of the exercise and termination
provisions are contained in the enclosed Summary of Key Terms, which you should
read carefully.  The Participant
Information Statement, which contains additional information about the Plan,
including the U.S. federal tax consequences of awards based on the state of the
law at the time of the grant.  We
strongly suggest that you consult a qualified financial or tax advisor before
exercising your options or disposing of your stock.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  John R. Gailey III

  
	
   

  	
   

  	
  Secretary

  

 

JRG/kmt

Enclosures

 
  

 

2006 Non-Qualified Stock
Option Award

Summary of Key Terms (Excerpted from Participant Information
Statement) for

Director Stock Option Grants

 

	
   Option Price . . .

  	
   

  	
  . . . is the fair market value of West common stock
  on the grant date as determined by the Plan.

  
	
   First Exercisable Date . . .

  	
   

  	
  . . . is generally one
  year from the date of the grant, unless the options have become exercisable
  or have been terminated earlier. See events below.

  
	
   Total Exercise Price . . .

  	
   

  	
  . . . is equal to the
  exercise price per share specified in the grant multiplied by the total
  number of shares to be received, and is payable: . . . in cash (i.e., by
  delivery of a check), . . . in cash received from a broker-dealer whom the
  optionee has authorized to sell all or a portion of the Common Stock covered
  by the option, . . . by delivery of a number of shares of Common Stock held
  by the optionee for at least six months and valued at their fair market value
  on the date of exercise.

  
	
  Termination Event

  	
   

  	
  Exercisable Options

  	
   

  	
   

  	
  Unexercisable Options

  
	
   Termination of Employment . . . . . . for
  reasons other than retirement, cause, disability or death

  	
   

  	
  . . . expire 90 days
  after the date of termination, but not beyond the expiration date of the
  grant.

  	
   

  	
   

  	
  . . . expire at the
  close of business on the date of termination.

  
	
   . . . on account of death

  	
   

  	
  . . . may be exercised
  by the person the optionee names in the Will, the legal representative or the
  spouse, as the case may be, for up to 1 year following the date of death, but
  not beyond the expiration date of the grant.

  	
   

  	
   

  	
  . . . expire at the
  close of business on the date of death.

  
	
   . . . on account of retirement

  	
   

  	
  . . . may be exercised
  up to the full term of the grant.

  	
   

  	
   

  	
  . . . vest in full as
  of the date of retirement and immediately become exercisable for the full term
  of the grant.

  
	
   . . . on account of disability

  	
   

  	
  . . . may be exercised
  up to the full term of the grant.

  	
   

  	
   

  	
  . . . expire at the
  close of business on the date of termination.

  
	
   . . . for cause

  	
   

  	
  . . . expire on the
  commencement of business on the date of the termination.

  	
   

  	
   

  	
  . . . expire on the
  commencement of business on the date of the termination.

  

 

 
  

2006 Non-Qualified Stock
Option Award

 

 

	
   Death After Retirement

  	
   

  	
  . . . may be
  exercised by the person the optionee names in the Will, the legal
  representative or the spouse, as the case may be, for up to 1 year following
  the date of death, but not beyond the expiration date of the grant.

  	
   

  	
   

  	
  . . . expire at
  the close of business on the date of death.

  
	
   Upon or following a Change of Control . . .

  	
   

  	
  . . . may be exercised
  for the full term of the grant.

  	
   

  	
   

  	
  . . . vest in full as
  of the date of the Change of Control and immediately become exercisable for
  the full term of the grant.

  

 

This Award and the
option granted hereunder is subject to the applicable terms and conditions of
the Plan, which are incorporated herein by reference, and in the event of any
contradiction, distinction or differences between this award letter and its
summary and the terms of the Plan, the terms of the Plan will control.EXHIBIT 10.2

2006 Stock Unit Award

May
17, 2006

2006 Stock
Unit Award for:

[Name
of Director]

	
  Grant Date:

  	
   

  	
  May 2, 2006

  
	
  Stock
  Units Awarded:

  	
   

  	
  2,000

  

This
notice confirms the grant of 2,000 stock units by the Company on May 2, 2006.

This
grant of stock units awarded to you will vest on May 2, 2007 and is granted
under and is subject to the terms and conditions specified in the West
Pharmaceutical Services, Inc. 2004 Stock-Based Compensation Plan.  This grant is also subject to the terms and
conditions of the Company’s Non-Qualified Deferred Compensation Plan for
Outside Directors, as amended, and the accompanying grant documentation.

Enclosed
with this award letter is an information packet that contains a Summary of Key
Terms and a Participant Information Statement, which you should read carefully.

The
Participant Information Statement, which contains additional information about
the Plan, including the U.S. federal tax consequences of awards based on the
state of the law at the time of the grant. 
We strongly suggest that you consult a qualified financial or tax
advisor.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  John R. Gailey III

  
	
   

  	
   

  	
  Secretary

  

 

JRG/kmt

Enclosures

 

 

2006 Stock Unit Award

Summary of Key Terms (Excerpted from Participant
Information Statement) for

Director Stock Unit Awards

1.                                       Credit of Stock Units.  All
Stock Units will be credited to your account under the Company’s Non-Qualified
Deferred Compensation Plan for Outside Directors, as amended (the “Deferred Compensation
Plan”) and will be “Stock Units” for all purposes under the Deferred
Compensation Plan.

2.                                       Credit of Earnings.  
Each calendar quarter, the Company will credit to your account an
additional number of Stock Units.  The
number to be credited is determined by dividing the dividends paid in respect
of the number of shares of common stock equal to the Stock Units held in your
account by the fair market value of the common stock on the last business day
of the previous calendar quarter.

3.                                       Adjustments. The value and attributes of each Stock Unit held in your account will
be appropriately adjusted consistent with any change in the Company’s common
stock, including a change resulting from a stock dividend, recapitalization,
reorganization, merger, consolidation, split-up, or combination or exchange of
shares.

4.                                       Payment Upon Termination.  In
the event of a termination of service as a director, the balance in your
account will be distributed in accordance with the terms of the Deferred
Compensation Plan.  The amount of the
distribution will be determined by reference to the fair market value of West
common stock on the termination date.

5.                                       Incorporation of Plans.  This
Award is subject to the applicable terms and conditions of the West
Pharmaceutical Services, Inc. 2004 Stock-Based Compensation Plan and the
Company’s Deferred Compensation Plan, each of which is incorporated herein by
reference, and in the event of any contradiction, distinction or differences
between this summary and the terms of the plan documents, the plan documents
will control.EXHIBIT
10.3

GLOBAL HEADQUARTERS

101 Gordon Drive  ▪ 
Lionville, PA  19341

TEL 610-594-2900  ▪ FAX 594-3013

www.westpharma.com

March 30, 2006

Donald
E. Morel, Jr.

Chief
Executive Officer

101
Gordon Dr

Lionville, PA 19341

Dear Don,

As you know, the Compensation Committee granted to
you certain Performance-Vesting Restricted Shares under the Company’s 2004
Stock-Based Compensation Plan (the “Plan”) on May 5, 2004, June 29, 2004, April
11, 2005 and February 24,  2006 (the “PVR
Awards”).  The PVR Awards were granted
pursuant to Performance Restricted Share Award Agreements (the “PVR Agreements”).   The PVR Awards, as provided in Section 11 of
the PVR Agreements are subject to the terms of the Plan.

The Plan provides in Section 5(d)(2) that “the
maximum payment that can made for Awards granted to any one individual under
Sections 7, 8 and 9 (relating to Deferred Stock, Restricted Stock, Stock Bonus
and Stock Units) shall be $500,000 for any single or combined performance goals
established for any performance period, as determined by reference to the Fair
Market Value on the date of the grant of the Award.”

As we have discussed, this annual $500,000 limit
(the “Annual Limit”) is included in the Plan to satisfy certain requirements
under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).  A portion of the PVR Awards exceeded the
Annual Limit.  Therefore, under the terms
of the Plan and to ensure compliance under Section 162(m) of the Code, payment
of the PVR Awards (i.e., distribution of the Company’s common stock) cannot be
made if this $500,000 limitation is not satisfied.  The PVR Awards cannot be said to have been
made pursuant to another plan or program of the Company, because equity
compensation plans must, under applicable New York Stock Exchange rules be
approved by the shareholders of the Company. 
In addition, the $500,000 limit cannot be increased without the prior
approval of the shareholders of the Company.

Under Section 20(b) of the Plan, the Compensation
Committee has the power unilaterally to amend an existing Award in order to
carry out the purposes of the Plan and “if and to the extent that the Committee
determines the Sponsor’s federal tax deduction in respect of an Award may be
limited as a result of section 162(m) of the 

Global Partners with

Daikyo Seiko Ltd.

West Pharmaceutical Services Mexico S.A. de C.V.

 

 

Donald E. Morel, Jr.

March
30, 2006

Page 2

 

Code, the Committee may take any and all actions it deems necessary, in
its sole and absolute discretion with respect to any Award (including the
amendment, delay or cancellation of an Award to the detriment of a Participant)
hereunder to eliminate or minimize the non-deductible portion of any Award.”  In addition, under Section 22 of the Plan,
the Company is not “obligated to cause to be issued or delivered any
certificates evidencing shares of Common Stock under the Plan unless and until
the Sponsor is advised by its counsel that the issuance is in compliance with
all applicable laws, regulations of governmental authority and the requirements
of any securities exchange on which the shares of Common Stock are traded.”

Therefore, in accordance with these provisions of
the Plan, in order to ensure compliance with the terms of the Plan, minimize
the impact of Section 162(m) of the Code and comply with requirements imposed
by the NYSE, the PVR Awards must be clarified and revised as described below.

To the extent any portion of your PVR Awards exceeds
the Annual Limit, shares shall not be delivered to you until the earlier to
occur of (i) your termination of employment with the Company, or (ii) the year
in which the Company’s stockholders approve an amendment to the Stock Plan that
would increase the Annual Limit (and then, only to the extent, so permitted).

With respect to your 2004 PVR Award that was paid in
2005, you must deliver to the Company the shares of stock that relate to the
amount in excess of the Annual Limit and any dividends that together with the
value of the underlying PVR Award exceed the Annual Limit.  As noted, under the terms of the Plan, you
were not entitled to receive these amounts. 
Your Form W-2 for 2005 shall be adjusted to reflect the rescission of
that portion of your 2004 PVR Award paid in 2005.

Don, to evidence your understanding of the above and
your agreement to the rescission of the excess portion of your 2004 PVR Award,
please execute this letter and return a copy to me.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  West Pharmaceutical Services, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ John R. Gailey Ill

  
	
   

  	
   

  	
   

  	
   

  	
  John R. Gailey Ill, Secretary, acting at the

  
	
   

  	
   

  	
   

  	
   

  	
  direction of the Compensation Committee

  
	
   

  	
   

  	
   

  	
   

  	
  of the Board of Directors

  

 

	
  ACCEPTED AND AGREED:

  
	
  /s/ Donald E.
  Morel, Jr.

  
	
  Donald E. Morel,
  Jr.

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