Document:

Exhibit 10.7

 

FORM OF RESTRICTED STOCK AGREEMENT

 

AGREEMENT entered into effective                  (“Grant Date”) by and between Valmont Industries, Inc., a Delaware corporation (“Company”) and                           , an employee of the Company (“Employee”).

 

1.             Award.

 

(a)           Shares:  Pursuant to the 2008 Valmont Stock Plan (“Plan”),                shares (the “Restricted Shares”) of the Company’s common stock, par value One Dollar per share (“Stock”), shall be issued as hereinafter provided in Employee’s name subject to certain restrictions thereon.

 

(b)           Plan Incorporated:  Employee acknowledges receipt of a copy of the Plan, and agrees that this award of Restricted Shares shall be subject to all of the terms and conditions set forth in the Plan, including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as part of this Agreement.

 

2.             Dividends and Voting Rights.  The Employee shall be entitled to receive any dividends paid with respect to the Restricted Shares that become payable; provided, however, that no dividends shall be payable to or for the benefit of the Employee for the Restricted Shares with respect to the record dates occurring prior to the Grant Date, or with respect to record dates occurring on or after the date, if any, on which the Employee has forfeited the Restricted Shares.  The Employee shall be entitled to vote the Restricted Shares to the same extent as would have been applicable to the Employee if the Employee was then vested in the shares; provided, however, that the Employee shall not be entitled to vote the shares with respect to record dates for such voting rights arising prior to the Grant Date, or with respect to record dates occurring on or after the date, if any, on which the Employee has forfeited the Restricted Shares.

 

3.             Restricted Shares.  Employee hereby accepts the Restricted Shares when issued and agrees with respect thereto as follows:

 

(a)           Forfeiture Restrictions:  The Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent then subject to the Forfeiture Restrictions (as hereinafter defined), and in the event of termination of Employee’s employment with the Company or employing subsidiary for any reason other than those described below, Employee shall, for no consideration, forfeit to the Company all Restricted Shares to the extent then subject to the Forfeiture Restrictions.  The prohibition against transfer and the obligation to forfeit and surrender Restricted Shares to the Company upon termination of employment are herein referred to as “Forfeiture Restrictions.”  The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of Restricted Shares.  Notwithstanding the foregoing, the Forfeiture Restrictions shall lapse as to all of the Restricted Shares on the earlier of (i) the occurrence of a Change of Control (as such term is defined in the Plan), (ii) the date Employee’s employment with the Company is terminated by reason of death or total disability (as determined by the Compensation Committee of the Board of Directors of the Company (the “Committee”) using the definition of total disability of the

 

 

Company’s long term disability plan), (iii) the Employee’s involuntary termination from the Company prior to age sixty-two without Cause, or (iv) [Date] (if the Employee’s employment with the Company has not previously terminated).  For purposes of this Agreement, “Cause” shall include the Employee’s (i) indictment, conviction, or plea of guilty or nolo contendere to a misdemeanor involving moral turpitude or a felony, (ii) breach of duties to the Company which cause material financial loss to the Company, which is not cured within five days following receipt by Employee of written notice from the Chief Executive Officer, or (iii) failure of Employee to act at all times in the best interests of the Company or to carry out the duties of his position as assigned by the Chief Executive Officer or his designee, if any such failure is not cured within five days following receipt by Employee of written notice from the Chief Executive Officer or his designee.

 

(b)           Certificates:  A certificate evidencing the Restricted Shares shall be issued by the Company in Employee’s name, or at the option of the Company, in the name of a nominee of the Company, pursuant to which Employee shall have voting rights and shall be entitled to receive all dividends as described in Paragraph 2 of this Agreement.  The certificate shall bear a legend evidencing the nature of the Restricted Shares, and the Company may cause the certificate to be delivered upon issuance to the Secretary of the Company or to such other depository as may be designated by the Company as a depository for safekeeping until the forfeiture occurs or the Forfeiture Restrictions lapse pursuant to the terms of the Plan and this Award.  Upon the lapse of the Forfeiture Restrictions without forfeiture and Employee’s delivery to the Company of the Restricted Shares, the Company shall cause a new certificate or certificates to be issued without legend in the name of Employee for the shares upon which Forfeiture Restrictions lapsed.  Notwithstanding any other provisions of this Agreement, the issuance or delivery of any shares of Stock (whether subject to the restrictions or unrestricted) may be postponed for such period as may be required to comply with applicable requirements of any national securities exchange or any requirements under any law or regulation applicable to the issuance or delivery of such shares.  The Company shall not be obligated to issue or deliver any shares of Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or any regulation of any governmental authority or any national securities exchange.

 

4.             Withholding of Tax.  To the extent that the receipt of the Restricted Shares or the lapse of any Forfeiture Restriction results in income to Employee for federal or state income tax purposes, Employee shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money or shares of unrestricted Stock as the Company may require to meet its withholding obligation under applicable tax laws or regulations, and if Employee fails to do so, the Company is authorized to withhold from any cash or Stock remuneration then or thereafter payable to Employee any tax required to be withheld by reason of such resulting compensation income.

 

5.             Reimbursement.  In the event that (i) the Company is required to restate and submit to the Securities and Exchange Commission a restatement of its audited financial statements for a fiscal year after fiscal 2006 due to material noncompliance with any financial reporting requirement and (ii) Employee engaged in fraud or intentional misconduct that caused or contributed to the need for the restatement, as determined by the Board of Directors, the Company, in an appropriate case as determined by the Board of Directors, shall be entitled to (i)

 

 

cancel and forfeit any Restricted Shares and/or (ii) require Employee to return to the Company the value of such Restricted Shares (valued as of the date of the lapse of Forfeiture Restrictions with respect thereto), in whole or part, and return of all dividends paid thereon, [include the following additional provision in CEO, CFO and Group President agreements: “; provided further, however, that the Board of Directors may apply this right of reimbursement in all cases to the Chief Executive Officer, Chief Financial Officer, and Group President (if the conduct occurred in the Group) if an employee of the Company engaged in fraud or intentional misconduct as described above”].  The rights of reimbursement of the Company shall be in addition to any other right of reimbursement provided by law.

 

6.             Administration.  The authority to manage and control the operation and administration of this Agreement shall be vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan.  Any interpretation of the Agreement by the Committee and any decision made by it with respect to the Agreement is final and binding.

 

7.             Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under Employee.

 

8.             Governing Law.  This agreement shall be governed by, and construed in accordance with, the laws of the State of Nebraska.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and Employee has executed this Agreement, effective as of the Grant Date.

 

	
VALMONT   INDUSTRIES, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Mogens   Bay, Chairman and Chief
    	
 
    	
Employee
    
	
 
    	
Executive   Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Date
    	
 
    	
DateExhibit 10.20

 

 

November 8, 2011

 

Jeff George

Sandoz AG

Lichtstrasse 35

CH-4058 Basel

Switzerland

 

Don DeGolyer

Sandoz Inc.

506 Carnegie Center, Suite 400

Princeton, New Jersey 08540

 

	
Re:
    	
Allocation   of Preliminary Injunction Bond Liability under the Joint Prosecution/Common   Interest Agreement
    

 

Dear Jeff and Don:

 

Reference is hereby made to the Collaboration and License Agreement (the “Agreement”) entered into as of November 1, 2003 by and among Sandoz AG (via assignment from Sandoz N.V. (f/k/a Biochemie West Indies N.V.)), Sandoz Inc. (f/k/a Geneva Pharmaceuticals, Inc.) (collectively, “Sandoz”) and Momenta Pharmaceuticals, Inc. (“Momenta”) (Sandoz or Momenta, a “Party”, and together, the “Parties”).  Reference is also made to the letter agreement attached hereto (the “Amphastar Litgation Letter”) dated September 22, 2011 among the Parties relating to the mechanics, lead role, allocation of costs, and allocation of damages or settlements pursuant to Section 8.7 of the Agreement in relation to the patent infringement suit filed by Momenta and Sandoz against Amphastar Pharmaceuticals, Inc., Watson Pharmaceuticals, Inc. and/or their appropriate subsidiaries, affiliates, agents and distributors (the “Amphastar Litigation”) as well as the letter referenced therein dated December 1, 2010 and executed by the Parties in connection with the initiation of litigation against Teva Pharmaceuticals (the “Section 8.7 Implementation Letter”) (such suit against Teva referred to herein as the “Teva Litigation”).  Capitalized terms used in this letter that are not otherwise defined in this letter shall have the meanings ascribed to them in the Agreement.

 

The Parties hereby agree that paragraphs 5 and 6 of the Section 8.7 Implementation Letter are amended and restated as follows:

 

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5. The JSC expressly reserves the right to approve in writing, or to delegate to an officer of each Party, the right to approve in writing, the posting of a bond or bonds in connection with the issuance of a preliminary injunction in the Amphastar Litigation and in the Teva Litigation.  With respect to the Amphastar Litigation, the Parties agree as follows:

 

a.              For the period prior to March 1, 2012, Momenta shall post a bond of $35 million and Sandoz shall post of bond of $65 million on or before the close of business on November 10, 2011 to satisfy the $100 million bond requirement established by the court to maintain the preliminary injunction against Amphastar Pharmaceuticals, Inc., Watson Pharmaceuticals, Inc. and/or their appropriate subsidiaries, affiliates, agents and distributors (the “Defendants”).  Each Party shall bear its own costs for such bonds.  The Parties agree that should the Aventis TPC Period (as further discussed in paragraph b, below) terminate prior to March 1, 2012, each Party shall bear ultimate liability for payment of damages to the Defendants as a result of the injunctive relief awarded (should such damages be awarded by the court) in the following allocated percentages:  sixty-five percent (65%) by Sandoz and thirty-five percent (35%) by Momenta; provided that such damages so awarded to Defendants are not in excess of the current $100 million aggregate bond obligation.

 

b.              If as of the close of business on February 29, 2012, the Aventis TPC Period remains in effect under Section 4.8 of the Agreement (which provides for payment of a hybrid royalty and profit share arrangement), then:

 

i.                  Momenta shall, to the extent the preliminary injunction and bonding obligation remain in effect, post an additional bond in the amount of $15 million and Sandoz shall have the right to reduce its bond obligation by such amount. The Parties shall cooperate to ensure the replacement of bonding responsibility occurs in a timely manner on March 1, 2012 and without disruption to the preliminary injunction.

 

ii.               Subject to paragraph c., Momenta and Sandoz shall each thereafter be liable for fifty percent (50%) of the liability for payment of damages to the Defendants as a result of the injunctive relief awarded should such damages be awarded by the Court.

 

c.               Should the court determine that the bond requirements are insufficient, the Parties shall discuss and consider an increase in good faith, but

 

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neither Party shall be obligated to post a bond in excess of the applicable obligations set forth in paragraphs a and b, above, or to otherwise assume liability to the other Party for damages to the Defendants as a result of the injunctive relief awarded should such damages be awarded by the Court in excess of the limits set forth in paragraphs a and b, above.  Each Party may elect to proceed at its sole risk and expense to post an increase in any such bond requirements in support of a preliminary injunction, and such Party shall bear all responsibility for damages, interest, penalties, attorney’s fees or other expenses in excess of the applicable obligated liability amounts of the other Party under paragraphs a and b, above in connection with the continuation of the preliminary injunction or the bond after such Party makes such election to post an increase in the bond and continue the preliminary injunction. Notwithstanding anything contained in the Amphastar Litigation Letter, the Section 8.7 Litigation Letter, or herein, the Parties expressly agree that neither Party shall have the right to withdraw its agreed-upon share of the bond or disclaim its agreed-upon allocated liability for damages related to the Amphastar Litigation without the prior, written consent of the other Party.

 

6.  In the event of the approval by both Parties to post security in support of a temporary restraining order and a preliminary injunction in the Teva Litigation, Momenta and Sandoz shall each be liable for (a) posting fifty percent (50%) of the bonding requirement at their own expense and (b) fifty (50%) of the liability for payment of damages to the defendants in the Teva Litigation as a result of any such injunctive relief awarded should such damages be awarded by the Court.  If the Parties do not otherwise agree to post a bond, then either Party, may elect to proceed at its sole risk and expense to post the entire bond in support of a preliminary injunction, and such Party shall bear all responsibility for damages, interest, penalties, attorney’s fees or other expenses in the Teva Litigation incurred after such Party makes such election to solely post the bond and implement the preliminary injunction.

 

The Parties agree that paragraphs 6 and 7 of the Section 8.7 Litigation Letter are hereby renumbered as paragraphs 7 and 8, respectively, and that such paragraphs shall remain in full force and effect.

 

The Parties agree that should any disputes arise relating to the conduct of the Amphastar Litigation or the Teva Litigation, including without limitation, under amended and restated paragraphs 5 and 6 of the Section 8.7 Litigation Letter, the President and CEO of Momenta and Sandoz AG shall promptly meet or discuss by teleconference the dispute and seek in good faith to resolve any differences.

 

The Parties further agree that this amendment to the Amphastar Litigation Letter and the Section 8.7 Litigation Letter shall be effective as of November 8, 2011 and may be signed in counterparts by each of the Parties.

 

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Except as expressly amended by this letter, the Amphastar Litigation Letter and the Section 8.7 Litigation Letter shall remain in full force and effect.

 

If the foregoing is consistent with your understanding, please signify your assent by signing both copies of this letter.

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
/s/   Bruce Leicher
    	
 
    
	
 
    	
 
    
	
Bruce   A. Leicher
    	
 
    
	
Sr.   Vice President and General Counsel
    	
 
    

 

Agreed:

 

 

	
SANDOZ INC.
    	
SANDOZ AG 
    
	
 
    	
 
    
	
By:   
    	
/s/   Don Degolyer
    	
 
    	
By:   
    	
/s/   C. Ackermann 
    
	
Name:
    	
Don   Degolyer
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Christina   Ackermann
    
	
Title:   
    	
President
    	
 
    	
 
    	
 
    
	
 
    	
Title:   
    	
General   Counsel Sandoz
    
	
Date:   
    	
11/8/2011
    	
 
    	
 
    	
 
    
	
 
    	
Date:   
    	
May 8/2011
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jeff George
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Jeff   George
    
	
 
    	
 
    	
 
    
	
 
    	
Title:   
    	
Head   of Sandoz
    
	
 
    	
 
    	
 
    
	
 
    	
Date:   
    	
Nov   8/2011
    

 

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