Document:

exv4wxcyx19y

 

Exhibit 4(c)(19)

	 	 	 	 	 	 	 	 	 	 	 	 	 
		 	 	 	875 Third Avenue
New
York, NY 10022
T (212) 407-5748
F (212) 755-2947	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	MEMO
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	To

	 	 	 	 	 	Date	 	May 17, 2007	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	From

	 	Kathleen Martorano
	 	 	 	CC	 	Kelly Martin	 	 	 	 
	 

	 	 	 	 	 	 	 	Kevin Hickey	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Subject	 	Amendment to Your Outstanding Stock Option and 2007 RSU Grants	 	 

 

The purpose of this memo agreement is to document and notify you of the amendment to certain
outstanding grant agreements for restricted stock units (RSUs) — issued under the Elan
Corporation, plc 2006 Long Term Incentive Plan — redeemable for shares of Elan Corporation, plc
(the “Company”) and all stock options to purchase shares of the Company.

The Leadership Development and Compensation Committee (LDCC) of the Board of Directors recently
approved amending your outstanding stock option and 2007 RSU grants to provide that if your
employment with the Company or a Subsidiary (as defined in your grant agreements) is terminated by
the Company or a Subsidiary for any reason other than Cause (as defined in your grant agreements)
or you resign from your employment with the Company or a Subsidiary on account of Good Reason (as
defined in your grant agreements), your unvested RSUs granted in 2007 and all stock options will
become fully vested as of the date of your termination or resignation.1 In addition,
with respect to all outstanding stock options, you will have two years from your termination or
resignation date or the original termination date of the option, if earlier, to exercise your stock
options.

This action is a significant improvement for you as, prior to this amendment, for the acceleration
of vesting and extension of the period of time to exercise your stock options to occur, your
termination without Cause or resignation for Good Reason had to occur within the two year period
following a Change in Control of the Company (as defined in your grant agreements).

 

			
	1	 	Your RSUs granted in 2006 will not be so amended.
Instead, your 2006 unvested RSUs will be cancelled if you are terminated for
any reason other than Cause or resign for Good Reason prior to the vesting date
of such RSUs. The company will pay you the fair market value of such cancelled
RSUs (less required tax withholding) as determined by multiplying the number of
such RSUs by the closing price of our stock on the NYSE on the effective date
of your termination or resignation.

 

 

The following RSU and stock option awards will be impacted by the above LDCC approval (note: data
as of 05/04/07):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Total Options/RSUs	 	Options/RSUs Outstanding
	Grant Date	 	Grant Type	 	Option Price	 	Outstanding	 	Vested	 	Unvested
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	NQSO = Non-Qualified Stock Option
	 
	RSU = Restricted Stock Unit

Regarding all future RSU and/or stock option grants, the specific terms will be reflected in the
grant documentation that is provided at that time.

Please acknowledge your agreement to the foregoing changes to the above listed grant agreements by
signing below where indicated and returning this memo agreement to me no later than June 1, 2007.
In addition, you should retain a copy of this memo agreement with your affected outstanding grant
agreements.

Should you have any questions, please contact me at (212) 407-5748.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	, 	 	2007	 	 	 
	Elan Corporation, plc

	 	 	 	Date	 	 	 	 	 	 
	Kathleen Martorano
	 	 	 	 	 	 	 	 	 	 
	EVP, Strategic Human Resources
	 	 	 	 	 	 	 	 	 	 

 

I hereby agree to the amendment to my outstanding stock options and 2007 RSUs as described in this
memo agreement:

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	, 	 	2007	 	 	 
	 

	 	 	 	Dateexv4wxcyx20y

 

Exhibit
4(c)(20)

ELAN CORPORATION, PLC Limited Group of EVP+ and

Certain SVPs

Restricted Stock Unit Agreement

     THIS AGREEMENT, dated as of      , 200[ ], between Elan Corporation, plc (the
“Company”) and                                          (the “Employee” or “you”).

     WHEREAS, the Employee has been granted the award set forth below under the Company’s 2006 Long
Term Incentive Plan (the “Plan”);

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the
parties hereto agree that the following terms shall apply to the award.

     1. Award of Share Units. Pursuant to the provisions of the Plan, the terms of which
are incorporated herein by reference, the Employee is hereby awarded                                          Restricted
Stock Units (the “Restricted Stock Units”), subject to the terms and conditions herein set forth.
Capitalized terms used herein and not defined shall have the meanings set forth in the Plan. In
the event of any conflict between this Agreement and the Plan, the Plan shall control.

     2. Terms and Conditions. It is understood and agreed that the award of Restricted
Stock Units evidenced hereby is subject to the following terms and conditions:

          (a) Vesting of Restricted Stock Units. Subject to Section 2(b) below and the other
terms and conditions of this Agreement, the Restricted Stock Units shall become vested in four
equal annual installments, commencing on the first anniversary of the date hereof and continuing
thereafter on the second, third and fourth anniversaries thereof if you are an employee of the
Company or a Subsidiary on each such date. Unless otherwise provided by the Company, all amounts
receivable in connection with any adjustments to the Shares under Section 3(c) of the Plan shall be
subject to the vesting schedule in this Section 2(a).

          Except as otherwise provided in the Plan, all Restricted Stock Units will become vested if (i)
your employment with the Company or a Subsidiary is terminated for any reason other than Cause (as
defined below) or you resign for Good Reason (as defined below); (ii) you die while you are still
an employee of the Company or a Subsidiary; or (iii) your service as an employee of the Company or
a Subsidiary terminates because of your Total and Permanent Disability (as defined below).

          As used herein, “Cause” shall mean any of the following: (a) your willful breach, habitual
neglect, or poor performance of your job duties and responsibilities, as determined by the Company in its sole discretion; (b) your conviction (or the entry of a
guilty plea or plea of nolo contendre) of any crime, excluding minor traffic offenses; (c) your
commission of an act of dishonesty or breach of fiduciary duty; (d) your commission of a

 

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material
violation of any of the personnel policies of the Company or a Subsidiary, including but not
limited to, violations of the Company’s confidentiality or stock trading policies or its policies
against any form of harassment; or (e) any action or omission by you, which, as reasonably
determined by the Company, is contrary to the business interest, reputation or goodwill of the
Company or a Subsidiary.

          As used herein “Good Reason” means (a) a material diminution in your title, duties,
responsibilities or authority, or (b) the requirement that you move your principal place of
business by more than 30 miles from that previously the case without your consent.

          As used herein “Total and Permanent Disability” means that you are unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted, or can be expected to last, for a
continuous period of not less than one year.

          (b) Termination of Service; Forfeiture of Unvested Restricted Stock Units. Except as
provided in Section 2(a), if you cease to be an employee of the Company or a Subsidiary for any
reason prior to the date the Restricted Stock Units become vested, the unvested Restricted Stock
Units shall be forfeited and become the property of the Company.

          (c) Distribution of Shares. At the time of vesting of a Restricted Stock Unit, a
number of Shares equal to the number of Restricted Stock Units that become vested shall be
distributed to you as soon as practicable but, in any event, within the same calendar year.

          (d) Rights and Restrictions. The Restricted Stock Units shall not be transferable,
other than pursuant to will or the laws of descent and distribution. Prior to vesting of the
Restricted Stock Units and delivery of the Shares, you shall not have any rights or privileges of a
shareholder as to the Shares subject to the Restricted Stock Units. Specifically, you shall not
have the right to receive dividends or the right to vote such Shares prior to vesting of the
Restricted Stock Units and delivery of the Shares.

          (e) Withholding Obligations. In consideration of the award of the Restricted Stock
Units, you agree and acknowledge that, whenever under the Plan Shares are to be delivered, the
Company, in its sole discretion, shall be entitled to withhold from your regular salary or wages
the minimum amount it determines necessary to satisfy any required federal, state, local, foreign
or other withholding tax relating to such amount, or to require as a condition of delivery that the
Employee remit, when due, the minimum amount necessary to satisfy all required federal, state,
local, foreign, or other withholding tax relating thereto. You agree to execute any additional
documents, including documents required for a third-party broker to process any withholding, at the
request of the Company. Any failure by you to comply with the foregoing may result in a forfeiture
of the Restricted Stock Units and the resultant Shares.

          (f) Brokerage Account with Charles Schwab. A condition to the vesting of the
Restricted Stock Units is that you shall have a brokerage account with Charles Schwab. The Shares
will be deposited into such account if all or parts of the Restricted Stock

 

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Units become vested (to
the extent of such vesting) in accordance with the terms of this Agreement and the Plan. Absent
provisions otherwise made to fulfill the withholding obligations referenced in Section 2(e), you
agree that Charles Schwab shall, upon deposit of Shares into such brokerage account as the result
of vesting of all or part of the Restricted Stock Units, sell such portion of the Shares as is
necessary to generate sufficient funds to cover the withholding obligations and shall remit such
funds to the Company.

          (g) Restrictions on Sale of Shares. By signing this Agreement, you agree not to sell
any Shares at a time when applicable laws or the Company’s policies prohibit a sale.

     3. Notices. Any notice required or permitted to be given under this Agreement shall
be in writing and shall be deemed to have been given when delivered personally or by courier, by
telegram, cablegram, facsimile message, electronic mail or telex message, or sent by certified or
registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned
at the address indicated below or to such changed address as such party may subsequently by similar
process give notice of:

If to the Company:

c/o Elan Pharmaceuticals, Inc.

800 Gateway Boulevard

South San Francisco, CA 94080

Attn.: Stock Administrator

If to the Employee:

To the last address delivered to the Company by the
Employee in the manner set forth herein.

     4. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of Ireland, without giving effect to principles of conflict of laws.

     5. Entire Agreement. This Agreement and the Plan constitute the entire agreement
among the parties relating to the subject matter hereof, and any previous agreement or
understanding among the parties with respect thereto is superseded by this Agreement and the Plan.
By signing this Agreement you agree to all of the terms and conditions described in this Agreement
and the Plan and you evidence your acceptance of the powers of the Committee of the Board of
Directors of the Company that administers the Plan.

     6. Section 409A. In the case of Restricted Stock Units awarded to Employees subject
to the Code, it is intended that the Plan and the Restricted Stock Units will comply with Section
409A of the Code (and any regulations and guidelines issued thereunder) to

 

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the extent the Plan and
Units are subject thereto, and the Plan and the Restricted Stock Units shall be interpreted on a
basis consistent with such intent. The Plan and this Agreement may be amended in any respect
deemed by the Company to be necessary in order to preserve compliance with Section 409A of the
Code.

     7. Counterparts. This Agreement may be executed in two counterparts, each of which
shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	ELAN CORPORATION, PLC

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 
	 	
Employee

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