Document:

exv10w1

 

Exhibit 10.1

OCULAR SCIENCES, INC.

1997 EQUITY INCENTIVE PLAN

As Adopted June 2, 1997 and Amended

July 14, 1997, March 25, 1999, May 24, 2001,
September 27, 2001 and February 4, 20041

     1. PURPOSE. The purpose of this Plan is to provide incentives to attract,
retain and motivate eligible persons whose present and potential contributions
are important to the success of the Company, its Parent and Subsidiaries, by
offering them an opportunity to participate in the Company’s future performance
through awards of Options, Restricted Stock and Stock Bonuses. Capitalized
terms not defined in the text are defined in Section 23.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 Number of Shares Available. Subject to Sections 2.2 and 18, the total
number of Shares reserved and available for grant and issuance pursuant to this
Plan will be 5,900,000 Shares. Subject to Sections 2.2 and 18, Shares that: (a)
are subject to issuance upon exercise of an Option but cease to be subject to
such Option for any reason other than exercise of such Option; (b) are subject
to an Award granted hereunder but are forfeited or are repurchased by the
Company at the original issue price; or (c) are subject to an Award that
otherwise terminates without Shares being issued, will again be available for
grant and issuance in connection with future Awards under this Plan. Any
authorized shares not issued or subject to outstanding grants under the
Company’s 1989 Stock Option Plan (the “PRIOR PLAN”) on the Effective Date (as
defined below) and any shares that are issuable upon exercise of options
granted pursuant to the Prior Plan that expire or become unexercisable for any
reason without having been exercised in full, will no longer be available for
grant and issuance under the Prior Plan, but will be available for grant and
issuance under this Plan. At all times the Company shall reserve and keep
available a sufficient number of Shares as shall be required to satisfy the
requirements of all outstanding Options granted under this Plan and all other
outstanding but unvested Awards granted under this Plan. The sum of (a)
Restricted Stock Awards, (b) Stock Bonus Awards, or (c) Options with a Purchase
Price or Exercise Price, as the case may be, below Fair Market Value issued
under this Plan may not exceed 20% of the total number of Shares reserved for
grant and issuance pursuant to this Plan as of any date.

          2.2 Adjustment of Shares. In the event that the number of outstanding
Shares is changed by a stock dividend, recapitalization, stock split, reverse
stock split, subdivision, combination, reclassification or similar change in
the capital structure of the Company without consideration, then (a) the number
of Shares reserved for issuance under this Plan, (b) the Exercise Prices of and
number of Shares subject to outstanding Options, and (c) the number of Shares
subject to other outstanding Awards will be proportionately adjusted, subject
to any required action by the Board or the stockholders of the Company and
compliance with applicable securities laws; provided, however, that fractions
of a Share will not be issued but will either be replaced by a cash payment
equal to the Fair Market Value of such fraction of a Share or will be rounded
up to the nearest whole Share, as determined by the Committee.

     3. ELIGIBILITY. ISOs (as defined in Section 5 below) may be granted only
to employees (including officers and directors who are also employees) of the
Company or of a

1 Adjusted to
reflect the authorization of 1,500,000 additional shares of Common
Stock for issuance under this Plan approved by the Company’s
stockholders

   on May 21, 2004.

 

 

Parent or Subsidiary of the Company. All other Awards may be granted to
employees, officers, directors, consultants, independent contractors and
advisors of the Company or any Parent or Subsidiary of the Company; provided
such consultants, contractors and advisors render bona fide services not in
connection with the offer and sale of securities in a capital-raising
transaction. No person will be eligible to receive more than 1,200,000 Shares
in any calendar year under this Plan pursuant to the grant of Awards hereunder,
other than new employees of the Company or of a Parent or Subsidiary of the
Company (including new employees who are also officers and directors of the
Company or any Parent or Subsidiary of the Company) who are eligible to receive
up to a maximum of 1,600,000 Shares in the calendar year in which they commence
their employment. A person may be granted more than one Award under this Plan.

     4. ADMINISTRATION.

          4.1 Committee Authority. This Plan will be administered by the Committee
or by the Board acting as the Committee. Subject to the general purposes, terms
and conditions of this Plan, and to the direction of the Board, the Committee
will have full power to implement and carry out this Plan. Without limitation,
the Committee will have the authority to:

	(a)	 	construe and interpret this Plan, any Award
Agreement and any other agreement or document executed
pursuant to this Plan;
	 
	(b)	 	prescribe, amend and rescind rules and
regulations relating to this Plan or any Award;
	 
	(c)	 	select persons to receive Awards;
	 
	(d)	 	determine the form and terms of Awards;
	 
	(e)	 	determine the number of Shares or other
consideration subject to wards;
	 
	(f)	 	determine whether Awards will be granted singly,
in combination with, in tandem with, in replacement of, or as
alternatives to, other Awards under this Plan or any other
incentive or compensation plan of the Company or any Parent or
Subsidiary of the Company;
	 
	(g)	 	grant waivers of Plan or Award conditions;
	 
	(h)	 	determine the vesting, exercisability and payment
of Awards;
	 
	(i)	 	correct any defect, supply any omission or
reconcile any inconsistency in this Plan, any Award or any
Award Agreement;
	 
	(j)	 	determine whether an Award has been earned; and
	 
	(k)	 	make all other determinations necessary or
advisable for the administration of this Plan.

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          4.2 Committee Discretion. Any determination made by the Committee with
respect to any Award will be made in its sole discretion at the time of grant
of the Award or, unless in contravention of any express term of this Plan or
Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under this Plan to Participants other than himself or
herself.

     5. OPTIONS. The Committee may grant Options to eligible persons and will
determine whether such Options will be Incentive Stock Options within the
meaning of the Code (“ISO”) or Nonqualified Stock Options (“NQSOS”), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

          5.1 Form of Option Grant. Each Option granted under this Plan will be
evidenced by an Award Agreement which will expressly identify the Option as an
ISO or an NQSO (“STOCK OPTION AGREEMENT”), and will be in such form and contain
such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

          5.2 Date of Grant. The date of grant of an Option will be the date on
which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

          5.3 Exercise Period. Options may be exercisable within the times or upon
the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that no Option will be
exercisable after the expiration of ten (10) years from the date the Option is
granted; and provided further that no ISO granted to a person who directly or
by attribution owns more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of any Parent or Subsidiary of
the Company (“TEN PERCENT STOCKHOLDER”) will be exercisable after the
expiration of five (5) years from the date the ISO is granted. The Committee
also may provide for Options to become exercisable at one time or from time to
time, periodically or otherwise, in such number of Shares or percentage of
Shares as the Committee determines.

          5.4 Exercise Price. The Exercise Price of an Option will be determined by
the Committee when the Option is granted and may be not less than 85% of the
Fair Market Value of the Shares on the date of grant; provided that: (i) the
Exercise Price of an ISO will be not less than 100% of the Fair Market Value of
the Shares on the date of grant; and (ii) the Exercise Price of any ISO granted
to a Ten Percent Stockholder will not be less than 110% of the Fair Market
Value of the Shares on the date of grant. Payment for the Shares purchased may
be made in accordance with Section 8 of this Plan.

          5.5 Method of Exercise. Options may be exercised only by delivery to the
Company of a written stock option exercise agreement (the “EXERCISE AGREEMENT”)
in

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a form approved by the Committee (which need not be the same for each
Participant), stating the number of Shares being purchased, the restrictions
imposed on the Shares purchased under such Exercise Agreement, if any, and such
representations and agreements regarding Participant’s investment intent and
access to information and other matters, if any, as may be required or
desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

          5.6 Termination. Notwithstanding the exercise periods set forth in the
Stock Option Agreement, exercise of an Option will always be subject to the
following:

	(a)	 	If the Participant is Terminated for any reason
except death or Disability, then the Participant may exercise
such Participant’s Options only to the extent that such
Options would have been exercisable upon the Termination Date
no later than three (3) months after the Termination Date (or
such shorter or longer time period not exceeding five (5)
years as may be determined by the Committee, with any exercise
beyond three (3) months after the Termination Date deemed to
be an NQSO), but in any event, no later than the expiration
date of the Options.
	 
	(b)	 	If the Participant is Terminated because of
Participant’s death or Disability (or the Participant dies
within three (3) months after a Termination other than because
of Participant’s death or disability), then Participant’s
Options may be exercised only to the extent that such Options
would have been exercisable by Participant on the Termination
Date and must be exercised by Participant (or Participant’s
legal representative or authorized assignee) no later than
twelve (12) months after the Termination Date (or such shorter
or longer time period not exceeding five (5) years as may be
determined by the Committee, with any such exercise beyond (a)
three (3) months after the Termination Date when the
Termination is for any reason other than the Participant’s
death or Disability, or (b) twelve (12) months after the
Termination Date when the Termination is for Participant’s
death or Disability, deemed to be an NQSO), but in any event
no later than the expiration date of the Options.
	 
	(c)	 	If a Participant is determined by the Board to
have committed an act of theft, embezzlement, fraud,
dishonesty or a breach of fiduciary duty to the Company or
Subsidiary, neither the Participant, the Participant’s estate
nor such other person who may then hold the Option shall be
entitled to exercise any Option with respect to any Shares
whatsoever, after termination of service, whether or not after
termination of service the Participant may receive payment
from the Company or Subsidiary for vacation pay, for services
rendered prior to termination, for services rendered for the
day on which termination occurs, for salary in lieu of notice,
or for any other benefits. In making such determination, the
Board shall give the Participant an opportunity to present to
the Board evidence on his behalf. For the purpose of this
paragraph, termination of service

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	 	 	shall be deemed to occur on the date when the Company
dispatches notice or advice to the Participant that his
service is terminated.

          5.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

          5.8 Limitations on ISO. The aggregate Fair Market Value (determined as of
the date of grant) of Shares with respect to which ISO are exercisable for the
first time by a Participant during any calendar year (under this Plan or under
any other incentive stock option plan of the Company, Parent or Subsidiary of
the Company) will not exceed $100,000. If the Fair Market Value of Shares on
the date of grant with respect to which ISO are exercisable for the first time
by a Participant during any calendar year exceeds $100,000, then the Options
for the first $100,000 worth of Shares to become exercisable in such calendar
year will be ISO and the Options for the amount in excess of $100,000 that
become exercisable in that calendar year will be NQSOs. In the event that the
Code or the regulations promulgated thereunder are amended after the Effective
Date of this Plan to provide for a different limit on the Fair Market Value of
Shares permitted to be subject to ISO, such different limit will be
automatically incorporated herein and will apply to any Options granted after
the effective date of such amendment.

          5.9 Modification, Extension or Renewal. The Committee may modify, extend
or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of a Participant, impair any of such Participant’s rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

          5.10 No Disqualification. Notwithstanding any other provision in this
Plan, no term of this Plan relating to ISO will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

     6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company
to sell to an eligible person Shares that are subject to restrictions. The
Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the price to be paid (the “PURCHASE PRICE”), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

          6.1 Form of Restricted Stock Award. All purchases under a Restricted Stock
Award made pursuant to this Plan will be evidenced by an Award Agreement
(“RESTRICTED STOCK PURCHASE AGREEMENT”) that will be in such form (which need

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not be the same for each Participant) as the Committee will from time to
time approve, and will comply with and be subject to the terms and conditions
of this Plan. The offer of Restricted Stock will be accepted by the
Participant’s execution and delivery of the Restricted Stock Purchase Agreement
and full payment for the Shares to the Company within thirty (30) days from the
date the Restricted Stock Purchase Agreement is delivered to the person. If
such person does not execute and deliver the Restricted Stock Purchase
Agreement along with full payment for the Shares to the Company within thirty
(30) days, then the offer will terminate, unless otherwise determined by the
Committee.

          6.2 Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted.

          6.3 Terms of Restricted Stock Awards. Restricted Stock Awards shall be
subject to such restrictions as the Committee may impose. These restrictions
may be based upon completion of a specified number of years of service with the
Company or upon completion of the performance goals as set out in advance in
the Participant’s individual Restricted Stock Purchase Agreement. Restricted
Stock Awards may vary from Participant to Participant and between groups of
Participants. Prior to the grant of a Restricted Stock Award, the Committee
shall: (a) determine the nature, length and starting date of any Performance
Period for the Restricted Stock Award; (b) select from among the Performance
Factors to be used to measure performance goals, if any; and (c) determine the
number of Shares that may be awarded to the Participant. Prior to the payment
of any Restricted Stock Award, the Committee shall determine the extent to
which such Restricted Stock Award has been earned. Performance Periods may
overlap and Participants may participate simultaneously with respect to
Restricted Stock Awards that are subject to different Performance Periods and
having different performance goals and other criteria.

          6.4 Termination During Performance Period. If a Participant is Terminated
during a Performance Period for any reason, then such Participant will be
entitled to payment (whether in Shares, cash or otherwise) with respect to the
Restricted Stock Award only to the extent earned as of the date of Termination
in accordance with the Restricted Stock Purchase Agreement, unless the
Committee will determine otherwise.

     7. STOCK BONUSES.

          7.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares (which
may consist of Restricted Stock) for services rendered to the Company or any
Parent or Subsidiary of the Company. A Stock Bonus may be awarded for past
services already rendered to the Company, or any Parent or Subsidiary of the
Company pursuant to an Award Agreement (the “STOCK BONUS AGREEMENT”) that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject
to the terms and conditions of this Plan. A Stock Bonus may be awarded upon
satisfaction of such performance goals as are set out in advance in the
Participant’s individual Award Agreement (the “PERFORMANCE STOCK BONUS
AGREEMENT”) that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. Stock

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Bonuses may vary from Participant to Participant and between groups of
Participants, and may be based upon the achievement of the Company, Parent or
Subsidiary and/or individual performance factors or upon such other criteria as
the Committee may determine.

          7.2 Terms of Stock Bonuses. The Committee will determine the number of
Shares to be awarded to the Participant. If the Stock Bonus is being earned
upon the satisfaction of performance goals pursuant to a Performance Stock
Bonus Agreement, then the Committee will: (a) determine the nature, length and
starting date of any Performance Period for each Stock Bonus; (b) select from
among the Performance Factors to be used to measure the performance, if any;
and (c) determine the number of Shares that may be awarded to the Participant.
Prior to the payment of any Stock Bonus, the Committee shall determine the
extent to which such Stock Bonuses have been earned. Performance Periods may
overlap and Participants may participate simultaneously with respect to Stock
Bonuses that are subject to different Performance Periods and different
performance goals and other criteria. The number of Shares may be fixed or may
vary in accordance with such performance goals and criteria as may be
determined by the Committee. The Committee may adjust the performance goals
applicable to the Stock Bonuses to take into account changes in law and
accounting or tax rules and to make such adjustments as the Committee deems
necessary or appropriate to reflect the impact of extraordinary or unusual
items, events or circumstances to avoid windfalls or hardships.

          7.3 Form of Payment. The earned portion of a Stock Bonus may be paid
currently or on a deferred basis with such interest or dividend equivalent, if
any, as the Committee may determine. Payment may be made in the form of cash or
whole Shares or a combination thereof, either in a lump sum payment or in
installments, all as the Committee will determine.

          7.4 Termination During Performance Period. If a Participant is Terminated
during a Performance Period for any reason, then such Participant will be
entitled to payment (whether in Shares, cash or otherwise) with respect to the
Stock Bonus only to the extent earned as of the date of Termination in
accordance with the Performance Stock Bonus Agreement, unless the Committee
will determine otherwise.

     8. PAYMENT FOR SHARE PURCHASES.

          8.1 Payment. Payment for Shares purchased pursuant to this Plan may be
made in cash (by check) or, where expressly approved for the Participant by the
Committee and where permitted by law:

	(a)	 	by cancellation of indebtedness of the Company to
the Participant;
	 
	(b)	 	by surrender of shares that either: (1) have been
owned by Participant for more than six (6) months and have
been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory
note, such note has been fully paid with respect to such shares); or (2) were obtained by Participant in the public
market;
	 
	(c)	 	by tender of a full recourse promissory note
having such terms as may be approved by the Committee and
bearing interest at a rate sufficient to

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	 	 	avoid imputation of income under Sections 483 and 1274 of the
Code; provided, however, that Participants who are not
employees or directors of the Company will not be entitled to
purchase Shares with a promissory note unless the note is
adequately secured by collateral other than the Shares;
	 
	(d)	 	by waiver of compensation due or accrued to the
Participant for services rendered;
	 
	(e)	 	with respect only to purchases upon exercise of
an Option, and provided that a public market for the Company’s
stock exists:

	(1)	 	through a “same day sale” commitment
from the Participant and a broker-dealer that is a
member of the National Association of Securities Dealers
(an “NASD DEALER”) whereby the Participant irrevocably
elects to exercise the Option and to sell a portion of
the Shares so purchased to pay for the Exercise Price,
and whereby the NASD Dealer irrevocably commits upon
receipt of such Shares to forward the Exercise Price
directly to the Company; or
	 
	(2)	 	through a “margin” commitment from
the Participant and a NASD Dealer whereby the
Participant irrevocably elects to exercise the Option
and to pledge the Shares so purchased to the NASD Dealer
in a margin account as security for a loan from the NASD
Dealer in the amount of the Exercise Price, and whereby
the NASD Dealer irrevocably commits upon receipt of such
Shares to forward the Exercise Price directly to the
Company; or

	(f)	 	by any combination of the foregoing.

          8.2 Loan Guarantees. The Committee may help the Participant pay for Shares
purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

     9. WITHHOLDING TAXES.

          9.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan,
payments in satisfaction of Awards are to be made in cash, such payment will be
net of an amount sufficient to satisfy federal, state, and local withholding
tax requirements.

          9.2 Stock Withholding. When, under applicable tax laws, a Participant
incurs tax liability in connection with the exercise or vesting of any Award
that is subject to tax withholding and the Participant is obligated to pay the
Company the amount required to be withheld, the Committee may in its sole
discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be

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issued that number of Shares having a Fair Market Value equal to the
minimum amount required to be withheld, determined on the date that the amount
of tax to be withheld is to be determined. All elections by a Participant to
have Shares withheld for this purpose will be made in accordance with the
requirements established by the Committee and be in writing in a form
acceptable to the Committee.

     10. PRIVILEGES OF STOCK OWNERSHIP.

          10.1 Voting and Dividends. No Participant will have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will
be a stockholder and have all the rights of a stockholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as
the Restricted Stock; provided, further, that the Participant will have no
right to retain such stock dividends or stock distributions with respect to
Shares that are repurchased at the Participant’s original Purchase Price
pursuant to Section 12.

          10.2 Financial Statements. The Company will provide financial statements
to each Participant prior to such Participant’s purchase of Shares under this
Plan, and to each Participant annually during the period such Participant has
Awards outstanding; provided, however, the Company will not be required to
provide such financial statements to Participants whose services in connection
with the Company assure them access to equivalent information.

     11. TRANSFERABILITY. Awards granted under this Plan, and any interest
therein, will not be transferable or assignable by Participant, and may not be
made subject to execution, attachment or similar process, otherwise than by
will or by the laws of descent and distribution or as determined by the
Committee and set forth in the Award Agreement with respect to Awards that are
not ISOs. During the lifetime of the Participant an Award will be exercisable
only by the Participant, and any elections with respect to an Award may be made
only by the Participant unless otherwise determined by the Committee and set
forth in the Award Agreement with respect to Awards that are not ISOs.

     12. RESTRICTIONS ON SHARES. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant’s Termination at any time within ninety (90) days
after the later of Participant’s Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase
money indebtedness, at the Participant’s Exercise Price or Purchase Price, as
the case may be.

     13. CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders,
legends and other restrictions as the Committee may deem necessary or
advisable, including restrictions under any applicable federal,

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state or foreign securities law, or any rules, regulations and other
requirements of the SEC or any stock exchange or automated quotation system
upon which the Shares may be listed or quoted.

     14. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant’s Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause
a legend or legends referencing such restrictions to be placed on the
certificates. Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will
be required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant’s obligation to
the Company under the promissory note; provided, however, that the Committee
may require or accept other or additional forms of collateral to secure the
payment of such obligation and, in any event, the Company will have full
recourse against the Participant under the promissory note notwithstanding any
pledge of the Participant’s Shares or other collateral. In connection with any
pledge of the Shares, Participant will be required to execute and deliver a
written pledge agreement in such form as the Committee will from time to time
approve. The Shares purchased with the promissory note may be released from the
pledge on a pro rata basis as the promissory note is paid.

     15. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and
cancellation of any or all outstanding Awards. The Committee may at any time
buy from a Participant an Award previously granted with payment in cash, Shares
(including Restricted Stock) or other consideration, based on such terms and
conditions as the Committee and the Participant may agree.

     16. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be
effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance.
Notwithstanding any other provision in this Plan, the Company will have no
obligation to issue or deliver certificates for Shares under this Plan prior
to: (a) obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and/or (b) completion of any
registration or other qualification of such Shares under any state or federal
law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the registration,
qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability
for any inability or failure to do so.

     17. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the
right of the Company or any Parent or Subsidiary of the

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Company to terminate Participant’s employment or other relationship at any
time, with or without cause.

     18. CORPORATE TRANSACTIONS.

          18.1 Assumption or Replacement of Awards by Successor. In the event of (a)
a dissolution or liquidation of the Company, (b) a merger or consolidation in
which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the stockholders of the Company immediately prior to such
merger (other than any stockholder that merges, or which owns or controls
another corporation that merges, with the Company in such merger) cease to own
their shares or other equity interest in the Company, (d) the sale of
substantially all of the assets of the Company, or (e) the acquisition, sale,
or transfer of more than 50% of the outstanding shares of the Company by tender
offer or similar transaction, all outstanding Options shall be assumed by the
successor corporation (if any), which assumption shall be binding on all
Participants, unless the Board, in its sole discretion, provides that the
vesting of any or all Options granted pursuant to this Plan will accelerate. If
the Board exercises such discretion with respect to Options, such Options will
become exercisable in full prior to the consummation of such event at such
times and on such conditions as the Board determines, and if such Options are
not exercised prior to the consummation of the corporate transaction, they
shall terminate in accordance with the provisions of this Plan.

          18.2 Other Treatment of Awards. Subject to any greater rights granted to
Participants under the foregoing provisions of this Section 18, in the event of
the occurrence of any transaction described in Section 18.1, any outstanding
Awards will be treated as provided in the applicable agreement or plan of
merger, consolidation, dissolution, liquidation, sale of assets or other
“corporate transaction.”

          18.3 Assumption of Awards by the Company. The Company, from time to time,
also may substitute or assume outstanding awards granted by another company,
whether in connection with an acquisition of such other company or otherwise,
by either; (a) granting an Award under this Plan in substitution of such other
company’s award; or (b) assuming such award as if it had been granted under
this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

11

 

     19. ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become effective on
the date on which the registration statement filed by the Company with the SEC
under the Securities Act registering the initial public offering of the
Company’s Common Stock is declared effective by the SEC (the “EFFECTIVE DATE”).
This Plan shall be approved by the stockholders of the Company (excluding
Shares issued pursuant to this Plan), consistent with applicable laws, within
twelve (12) months before or after the date this Plan is adopted by the Board.
Upon the Effective Date, the Board may grant Awards pursuant to this Plan;
provided, however, that: (a) no Option may be exercised prior to initial
stockholder approval of this Plan; (b) no Option granted pursuant to an
increase in the number of Shares subject to this Plan approved by the Board
will be exercised prior to the time such increase has been approved by the
stockholders of the Company; and (c) in the event that stockholder approval of
such increase is not obtained within the time period provided herein, all
Awards granted hereunder will be canceled, any Shares issued pursuant to any
Award will be canceled, and any purchase of Shares hereunder will be rescinded.

     20. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate February 4, 20142. This Plan and all agreements
thereunder shall be governed by and construed in accordance with the laws of
the State of California.

     21. AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate
or amend this Plan in any respect, including without limitation amendment of
any form of Award Agreement or instrument to be executed pursuant to this Plan;
provided, however, that the Board will not, without the approval of the
stockholders of the Company, amend this Plan in any manner that requires such
stockholder approval.

     22. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the
Board, the submission of this Plan to the stockholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

     23. DEFINITIONS. As used in this Plan, the following terms will have the
following meanings:

          “AWARD” means any award under this Plan, including any Option, Restricted
Stock or Stock Bonus.

          “AWARD AGREEMENT” means, with respect to each Award, the signed written
agreement between the Company and the Participant setting forth the terms and
conditions of the Award.

          “BOARD” means the Board of Directors of the Company.

          “CODE” means the Internal Revenue Code of 1986, as amended.

          “COMMITTEE” means the committee appointed by the Board to administer this
Plan, or if no such committee is appointed, the Board.

2 Amendment to
extend the termination date of this Plan from June 2, 2007 to February
4, 2014 was approved by the Company’s stockholders on May 21,

   2004.

12

 

          “COMPANY” means Ocular Sciences, Inc. or any successor corporation.

          “DISABILITY” means a disability, whether temporary or permanent, partial
or total, within the meaning of Section 22(e)(3) of the Code, as determined by
the Committee.

          “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended.

          “EXERCISE PRICE” means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

          “FAIR MARKET VALUE” means, as of any date, the value of a share of the
Company’s Common Stock determined as follows:

	(a)	 	if such Common Stock is then quoted on the Nasdaq
National Market, its closing price on the Nasdaq National
Market on the date of determination as reported in The Wall
Street Journal;
	 
	(b)	 	if such Common Stock is publicly traded and is
then listed on a national securities exchange, its closing
price on the date of determination on the principal national
securities exchange on which the Common Stock is listed or
admitted to trading as reported in The Wall Street Journal;
	 
	(c)	 	if such Common Stock is publicly traded but is
not quoted on the Nasdaq National Market nor listed or
admitted to trading on a national securities exchange, the
average of the closing bid and asked prices on the date of
determination as reported in The Wall Street Journal;
	 
	(d)	 	in the case of an Award made on the Effective
Date, the price per share at which shares of the Company’s
Common Stock are initially offered for sale to the public by
the Company’s underwriters in the initial public offering of
the Company’s Common Stock pursuant to a registration
statement filed with the SEC under the Securities Act; or
	 
	(e)	 	if none of the foregoing is applicable, by the
Committee in good faith.

          “INSIDER” means an officer or director of the Company or any other person
whose transactions in the Company’s Common Stock are subject to Section 16 of
the Exchange Act.

          “OPTION” means an award of an option to purchase Shares pursuant to
Section 5.

          “PARENT” means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if each of such corporations
other than the Company owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in such
chain.

          “PARTICIPANT” means a person who receives an Award under this Plan.

13

 

          “PERFORMANCE FACTORS” means the factors selected by the Committee from
among the following measures to determine whether the performance goals
established by the Committee and applicable to Awards have been satisfied:

	(a)	 	Net revenue and/or net revenue growth;
	 
	(b)	 	Earnings before income taxes and amortization
and/or earnings before income taxes and amortization growth;
	 
	(c)	 	Operating income and/or operating income growth;
	 
	(d)	 	Net income and/or net income growth;
	 
	(e)	 	Earnings per share and/or earnings per share
growth;
	 
	(f)	 	Total shareholder return and/or total shareholder
return growth;
	 
	(g)	 	Return on equity;
	 
	(h)	 	Operating cash flow return on income;
	 
	(i)	 	Adjusted operating cash flow return on income;
	 
	(j)	 	Economic value added; and
	 
	(k)	 	Individual confidential business objectives.

          “PERFORMANCE PERIOD” means the period of service determined by the
Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses.

          “PLAN” means this Ocular Sciences, Inc. 1997 Equity Incentive Plan, as
amended from time to time.

          “RESTRICTED STOCK AWARD” means an award of Shares pursuant to Section 6.

          “SEC” means the Securities and Exchange Commission.

          “SECURITIES ACT” means the Securities Act of 1933, as amended.

          “SHARES” means shares of the Company’s Common Stock reserved for issuance
under this Plan, as adjusted pursuant to Sections 2 and 18, and any successor
security.

          “STOCK BONUS” means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

          “SUBSIDIARY” means any corporation (other than the Company) in an unbroken
chain of corporations beginning with the Company if each of the corporations
other

14

 

than the last corporation in the unbroken chain owns stock possessing 50%
or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

          “TERMINATION” or “TERMINATED” means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director, consultant, independent
contractor, or advisor to the Company or a Parent or Subsidiary of the Company.
An employee will not be deemed to have ceased to provide services in the case
of (i) sick leave, (ii) military leave, or (iii) any other leave of absence
approved by the Committee, provided, that such leave is for a period of not
more than 90 days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute or unless provided otherwise pursuant to
formal policy adopted from time to time by the Company and issued and
promulgated to employees in writing. In the case of any employee on an approved
leave of absence, the Committee may make such provisions respecting suspension
of vesting of the Award while on leave from the employ of the Company or a
Subsidiary as it may deem appropriate, except that in no event may an Option be
exercised after the expiration of the term set forth in the Option agreement.
The Committee will have sole discretion to determine whether a Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the “TERMINATION DATE”).

          “UNVESTED SHARES” means “Unvested Shares” as defined in the Award
Agreement.

          “VESTED SHARES” means “Vested Shares” as defined in the Award Agreement.

15exv4w1

 

Exhibit 4.1

COMSTOCK RESOURCES, INC.,

GUARANTORS

NAMED HEREIN

and

THE BANK OF NEW YORK TRUST COMPANY, N.A.

Trustee

THIRD SUPPLEMENTAL INDENTURE

dated as of July 16, 2004

to

INDENTURE

dated as of February 25, 2004

6 7/8% Senior Notes due 2012

 

 

Exhibit 4.1

     THIS THIRD SUPPLEMENTAL INDENTURE dated as of July 16, 2004 (as originally
executed and as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, this “Third Supplemental Indenture”), is among COMSTOCK
RESOURCES, INC., a Nevada corporation (hereinafter called the “Company”), the
GUARANTORS (as defined in the Indenture) and THE BANK OF NEW YORK TRUST
COMPANY, N.A., as Trustee (hereinafter called the “Trustee”). Capitalized
terms used herein but not otherwise defined shall have the meanings ascribed to
them in the Indenture (as defined below).

RECITALS OF THE COMPANY

     WHEREAS, the Company, the Guarantors and the Trustee entered into an
Indenture dated as of February 25, 2004 (the “Original Indenture”), as the same
was amended and supplemented by that certain First Supplemental Indenture dated
as of February 25, 2004 (the “First Supplemental Indenture”) and by that
certain Second Supplemental Indenture dated as of March 11, 2004 (the “Second
Supplemental Indenture,” and together with the Original Indenture and the First
Supplemental Indenture, the “Indenture”), providing for the issuance by the
Company from time to time, and the establishment of the terms of, the Company’s
6 7/8% Senior Notes due 2012;

     WHEREAS, Section 6.10 of the First Supplemental Indenture provides that
each Restricted Subsidiary that guarantees the payment of, assumes or in any
other manner becomes liable (whether directly or indirectly) with respect to
any Indebtedness of the Company or any other Restricted Subsidiary of the
Company, including, without limitation, Indebtedness under the Bank Credit
Facility, will execute and deliver a supplemental indenture agreeing to be
bound by the terms of the Indenture applicable to a Guarantor and providing for
a Guarantee of the Securities;

     WHEREAS, effective July 16, 2004, (i) Comstock Offshore, LLC, a Nevada
limited liability company (“Comstock Offshore”) transferred substantially all
of its assets to Bois d’Arc Energy, LLC, a Nevada limited liability company
(“Newco”), in exchange for membership interests in Newco, (ii) Bois d’Arc
Holdings, LLC, a Nevada limited liability company (“BDA Holdings”), became a
wholly-owned subsidiary of Newco and owned a 0.1% general partner interest in
Bois d’Arc Properties, LP, a Nevada limited partnership (“BDA Properties”),
(iii) Bois d’Arc Oil & Gas Company, LLC, a Nevada limited liability company
(“BDAOG”), became a wholly-owned subsidiary of Newco and owned a 1% general
partnership interest in Bois d’Arc Offshore, Ltd., a Nevada limited partnership
(“BDAO”), (iv) Newco owned a 99.9% limited partnership interest in BDA
Properties, and (v) Newco owned a 99.0% limited partnership interest in BDAO;
and

     WHEREAS, each of Newco, BDA Holdings, BDA Properties, BDAOG and BDAO
(collectively, the “Additional Guarantors”) have become Restricted Subsidiaries
and desire to execute this Third Supplemental Indenture for the purpose of
agreeing to be bound by the terms of the Indenture applicable to a Guarantor
and providing for a Guarantee of the Securities.

 

 

     NOW, THEREFORE, for the purposes stated herein and for and in
consideration of the premises and covenants contained in the Indenture and in
this Third Supplemental Indenture and for other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged, it is mutually
covenanted and agreed as follows:

ARTICLE I.

     Section 1.1 Additional Guarantors.

     (a) From the date of this Third Supplemental Indenture, in accordance with
Section 6.10 of the First Supplemental Indenture, each of the Additional
Guarantors shall be subject to the provisions, and agrees to be bound by the
terms, of the Indenture applicable to a Guarantor; and each of the Additional
Guarantors hereby unconditionally, jointly and severally, guarantees to each
Holder of Securities authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, the full and prompt performance of the
Company’s obligations under the Indenture and the Securities.

     (b) Notwithstanding the foregoing and the other provisions of the
Indenture, the Guarantees of the Additional Guarantors shall be automatically
and unconditionally released and discharged upon the terms and conditions set
forth in Section 9.3 of the First Supplemental Indenture.

ARTICLE II

     Section 2.1 Ratification of Indenture.

     As supplemented by this Third Supplemental Indenture, the Indenture is in
all respects ratified and confirmed, and the Indenture as supplemented by this
Third Supplemental Indenture shall be read, taken and construed as one and the
same instrument.

     Section 2.2 Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with another
provision hereof which is required to be included in this Third Supplemental
Indenture by any provision of the Trust Indenture Act, such required provisions
shall control.

     Section 2.3 Counterparts.

     This Third Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

 

 

     Section 2.4 Governing Law.

     This Third Supplemental Indenture and the Guarantees contained herein
shall be governed by, and construed and enforced in accordance with, the laws
of the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

[Reminder of Page Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental
Indenture to be duly executed, all as of the day and year first above written.

	 	 	 	 	 
	 	ISSUER:

COMSTOCK RESOURCES, INC.

 	 
	 	By:  	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief Financial
Officer, Secretary and Treasurer 	 
	 
	 	GUARANTORS:

COMSTOCK OIL & GAS, LP

 	 
	 	By:  	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief Financial
Officer, Secretary and Treasurer of
Comstock Resources, Inc., a Nevada
corporation, acting in its capacity as
the sole member of Comstock Oil & Gas
GP, LLC, a Nevada limited liability
company, and as the sole member of such
entity, acting on behalf of such entity
in such entity's capacity as the sole
general partner of Comstock Oil & Gas,
LP, a Nevada limited partnership 	 
	 
	 	COMSTOCK OIL & GAS HOLDINGS, INC.

 	 
	 	By:  	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief Financial
Officer, Secretary and Treasurer 	 
	 

[Signature Pages Continue]

 

 

	 	 	 	 	 
	 	COMSTOCK OIL & GAS-LOUISIANA, LLC

 	 
	 	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Manager, Senior Vice President, Chief
Financial Officer, Secretary and
Treasurer 	 
	 
	 	COMSTOCK OFFSHORE, LLC

 	 
	 	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Manager, Senior Vice President, Chief
Financial Officer, Secretary and
Treasurer 	 
	 
	 	COMSTOCK OIL & GAS GP, LLC

 	 
	 	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Senior Vice President, Chief
Financial Officer, Secretary and
Treasurer of Comstock Resources, Inc.,
a Nevada corporation, acting on behalf
of such entity in its capacity as the
sole member of Comstock Oil & Gas GP,
LLC 	 
	 
	 	COMSTOCK OIL & GAS INVESTMENTS, LLC

 	 
	 	/s/ ROLAND O. BURNS	 
	 	 	Roland O. Burns 	 
	 	 	Manager 	 
	 

[Signature Pages Continue]

 

 

	 	 	 	 	 	 	 	 	 
	

	 	ADDITIONAL GUARANTORS:
	 
	 	 	 	 	 	 	 	 
	

	 	BOIS D’ARC ENERGY, LLC
	 
	 	 	 	 	 	 	 	 
	

	 	 	 		/s/ ROLAND O. BURNS
	

	 	 	 	 	 
	

	 	 	 	 	Roland O. Burns
	

	 	 	 	 	Manager,
	

	 	 	 	 	Chief Financial Officer and
	

	 	 	 	 	Secretary
	 
	 	 	 	 	 	 	 	 
	

	 	BOIS D’ARC HOLDINGS, LLC
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	Bois d’Arc Energy, LLC, its sole member
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	/s/ ROLAND O. BURNS
	

	 	 	 	 	 
	

	 	 	 	 	Roland O. Burns
	

	 	 	 	 	Manager,
	

	 	 	 	 	Chief Financial Officer and Secretary
	 
	 	 	 	 	 	 	 	 
	

	 	BOIS D’ARC PROPERTIES, LP
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	Bois d’Arc Holdings, LLC,

its general partner
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	Bois d’Arc Energy, LLC,
its sole member
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 		/s/ ROLAND O. BURNS
	

	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	Roland O. Burns
	

	 	 	 	 	 	 	Manager,
	

	 	 	 	 	 	 	Chief Financial Officer
	

	 	 	 	 	 	 	and Secretary
	 
	 	 	 	 	 	 	 	 
	 
	 	BOIS D’ARC OIL & GAS COMPANY, LLC
	 
	 	 	 	 	 	 	 	 
	

	 	 
	 	Bois d’Arc Energy, LLC,
its sole member
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	/s/ ROLAND O. BURNS
	

	 	 	 	 	 
	

	 	 	 	 	Roland O. Burns
	

	 	 	 	 	Manager,
	

	 	 	 	 	Chief Financial Officer and Secretary

[Signature Pages Continue]

 

 

	 	 	 	 	 	 	 	 	 
	

	 	BOIS D’ARC OFFSHORE, LTD.
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	Bois d’Arc Oil & Gas Company, LLC,

its general partner
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	
	 	Bois d’Arc Energy, LLC,

its sole member
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 		/s/ ROLAND O. BURNS
	

	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	Roland O. Burns
	

	 	 	 	 	 	 	Manager,
	

	 	 	 	 	 	 	Chief Financial Officer

and Secretary

	 	 	 	 	 
	

	 	TRUSTEE:
	 
	 	 	 	 
	

	 	THE BANK OF NEW YORK TRUST COMPANY, N.A.
	 
	 	 	 	 
	

	 		/s/ PATRICK T. GIORDANO
	

	 	 	 
	

	 	 	Patrick T. Giordano

Vice President

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