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EXHIBIT 10.3

 

FIRST AMENDMENT TO  
  RESTRICTED STOCK UNIT AWARD AGREEMENT

 

 

DST SYSTEMS, INC. 2005 EQUITY INCENTIVE PLAN

 

 

(DST Output Performance Vesting; Restricted Stock Exchange)

 

THIS FIRST AMENDMENT to the Restricted Stock Unit Award Agreement (“RSU Agreement”) originally dated as of February 23, 2010, is made and entered as of the “Amendment Date” (see Paragraph 1) by and between DST SYSTEMS, INC. (the “Company”) and recipient (“Employee”).

 

WHEREAS, unless otherwise defined herein, all undefined capitalized terms have the meanings as set forth in the RSU Agreement and the DST Systems, Inc. 2005 Equity Incentive Plan, as amended and interpreted from time to time (the “Plan”);

 

WHEREAS, pursuant to the RSU Agreement and as of the Grant Date, Employee received a grant of RSUs (the “Exchange RSUs”) under the Plan in replacement of certain performance-based restricted stock previously granted by the Company on February 22, 2008;

 

WHEREAS, the Exchange RSUs are eligible to Vest (resulting in the issuance of the underlying Shares) if DST Output on a consolidated basis satisfies an established Goal and, with certain exceptions, Employee has continued Employment through the applicable Vesting Date;

 

WHEREAS, due to certain key strategic decisions made in the long term interests of maintaining service volumes and continuing significant customer relationships, it is unlikely that the Goal will be satisfied by the final eligible Vesting Date, absent certain adjustments by the Committee to the calculation of Goal attainment;

 

WHEREAS, the Committee wishes to deem the Goal satisfied and allow an amendment to the terms and conditions of the Exchange RSUs so that they will Vest for each respective Grantee only if, subject to certain exceptions set forth herein and in the RSU Agreement, the Grantee continues Employment until March 9, 2012 (“New Vesting Terms”); provided however, that the Committee is willing to take such action  only if all Grantees holding Exchange RSUs consent to amend their respective RSU Agreements to incorporate the New Vesting Terms (“Unanimous Consent”);

 

WHEREAS, Employee desires for the New Vesting Terms to apply to the Exchange RSUs granted to Employee and is therefore contributing to the Unanimous Consent and entering into this First Amendment, which shall be effective only upon achievement of Unanimous Consent.

 

 

The parties agree as follows:

 

1.             AMENDMENT CONDITIONS AND AMENDMENT DATE.

 

a.     This First Amendment shall be effective only upon, and as of the date of, achievement of Unanimous Consent (the “Amendment Date”).  If less than all of the Grantees holding Exchange RSUs agree to the terms and conditions of the First Amendment, this First Amendment will be void and have no affect on the Grantee, other recipients of the Exchange RSUs, the RSU Agreement or the Company.

 

b.     This First Amendment shall be accepted by Employee in the manner set forth in the email communication to Employee to which this First Amendment is attached.  For Unanimous Consent to occur, Employee and the other recipients of the Exchange RSUs must timely confirm acceptance of the terms and conditions of this First Amendment pursuant to the instructions in the email communication.

 

2.             AMENDMENT TO RSU AGREEMENT.

 

a.     Paragraphs 3(a), 3(b), 3(c) and 3(d) of the RSU Agreement and Appendix A to the RSU Agreement shall be deleted in their entirety.  Appendix A shall not be replaced and Paragraphs 3(a), 3(b), 3(c) and 3(d) shall be replaced with the following paragraphs:

 

3.             VESTING, FORFEITURE, AND SHARE ISSUANCE.

 

a.             [Intentionally Omitted.  All references to this Paragraph in this Agreement may be ignored.]

 

b.             Service Vesting.  Except as otherwise provided in Paragraph 3(d), the RSUs shall become Vested on the earlier of (i) March 9, 2012 or (ii) upon Employee’s death, Disability or Resignation for Good Reason following a Change in Control as provided in Paragraph 3(c).

 

c.             Other Vesting.

 

(i)            Effect of Death and Disability on Vesting.  Upon Employee’s death or Disability before March 9, 2012, a pro rata portion of the RSUs shall Vest.  The pro rata portion of the RSUs Vesting shall be determined by (A) dividing the RSUs by twenty-four (24) and then (B) multiplying the quotient obtained in (A) by the number of calendar months elapsed from January 1, 2010 to the date of Employee’s death or Disability.

 

(ii)           Effect of Resignation for Good Reason Following a Change in Control on Vesting. Upon a termination of Employment prior to March 9, 2012 in connection with a “Resignation for Good Reason” (as defined in Paragraph 3(h)) following a “Change in Control” (as defined in Paragraph 6(b)), a pro rata portion of the RSUs shall Vest.  The pro rata portion of the RSUs Vesting shall be determined by (A) dividing the RSUs by twenty-four (24) and then (B) multiplying the quotient obtained in (A) by the number of calendar

 

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months elapsed from January 1, 2010 to the date of the Resignation for Good Reason.

 

(iii)          Calculations.  The pro rata calculations set forth in this Paragraph 3(c) shall include the calendar month in which the Vesting event occurred only if the date of such event is subsequent to the 15th day of such month.  For any calculations in this Agreement that require the number of RSUs to be divided or for a designated percentage of the RSUs to Vest, if such number is not evenly divisible or an applied percentage would result in the issuance of a fractional Share, any fractional Share shall be rounded up to the next whole number and the Corporate Secretary’s office shall allocate the additional Shares(s) to the Vesting tranche.  In no event shall Vesting occur with respect to a number of RSUs that exceeds the original RSU grant amount.

 

d.             Forfeiture.  Forfeiture of RSUs shall occur under the circumstances set forth below. Upon any such forfeiture, under no circumstance will Company be obligated to make any payment to Employee, and no Shares shall be issued, as a result of such forfeited RSUs.  In addition to the forfeiture of all RSUs, upon forfeiture for “Cause” (as defined in Paragraph 3(h)) all Shares previously issued under this Agreement shall also be forfeited and transferred to Company as provided in Section 5.

 

(i)            Subject to the other provisions of this Section 3, all non-Vested RSUs shall be forfeited if Employee ceases Employment before March 9, 2012.  Employee is not deemed to have terminated Employment through, and the RSUs shall not be forfeited solely as a result of, any change in Employee’s duties or position or Employee’s temporary leave of absence approved by Company.

 

(ii)           Notwithstanding any other provision of this Agreement, Cause shall result in forfeiture of the RSUs and all Shares issued pursuant thereto.  Employee acknowledges and agrees that forfeiture for Cause can occur during any Original Delay Period or Extended Delay Period and prior or subsequent to any RSU Vesting or Share issuance.

 

 

b.     Subparagraph 3(h)(viii) shall be deleted in its entirety and replaced with the following:

 

(viii)                [Intentionally Omitted.]

 

Except as otherwise set forth in this Amendment, the RSU Agreement is not amended or otherwise modified in any respect and shall remain in full force and effect in accordance with the terms set forth therein.  Any election by Employee with respect to an Extended Issuance Delay or Retirement Installment election is not modified by this Amendment and shall continue to be operative in accordance with the terms and conditions of such election.

 

3Exhibit 10.25

 

AMENDMENT NO. 1 (this “Amendment”), dated as of December 31, 2010 among VALEANT PHARMACEUTICALS INTERNATIONAL, a Delaware corporation (the “Borrower”), VALEANT PHARMACEUTICALS INTERNATIONAL, INC. (“Parent”) and certain subsidiaries of Borrower and Parent, as guarantors, the lenders party thereto and GOLDMAN SACHS LENDING PARTNERS LLC (“GSLP”), as Administrative Agent (the “Administrative Agent”). Capitalized terms used herein and not defined shall have the meaning set forth in the Credit Agreement (as defined herein).

 

W  I  T  N  E  S  S  E  T  H :

 

WHEREAS, the Borrower, Parent and the other guarantors party thereto entered into that certain Credit and Guaranty Agreement dated as of September 27, 2010 (the “Credit Agreement”) among Borrower, Parent, certain Subsidiaries of the Borrower, as Guarantors, and certain Subsidiaries of Parent, as Guarantors, the Lenders party thereto from time to time, GSLP, Morgan Stanley Senior Funding, Inc. and Jefferies Finance LLC, as Joint Lead Arrangers, Joint Bookrunners and Syndication Agents, GSLP, as Administrative Agent and as Collateral Agent, and each of Bank of America, N.A., DnB NOR Bank ASA, SunTrust Bank and The Bank of Nova Scotia, as Documentation Agent; and

 

WHEREAS, pursuant to Section 10.5 of the Credit Agreement, the Borrower and each of the undersigned Lenders hereby agree to the following amendments of the Credit Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

SECTION ONE - Amendment. Subject to the satisfaction of the conditions set forth in Section Two hereof, the Credit Agreement is hereby amended as follows:

 

(a) Amendments to Section 1.1.

 

The following definitions are hereby added to Section 1.1 in appropriate alphabetical order:

 

“Amendment No. 1” means Amendment No. 1 to this Credit Agreement dated as of December 31, 2010.

 

 

(b) Amendments to Section 9. Section 9 of the Credit Agreement is hereby amended by adding a new Section 9.10 at the end thereof as follows:

 

9.10 Quebec Security. To the extent that any Canadian Credit Party now or in the future is required to grant security pursuant to the laws of the Province of Quebec, each Agent (other than the Collateral Agent) and Lender acting for itself and on behalf of all present and future Affiliates of such Agent or Lender that are or become a Lender Counterparty, hereby irrevocably authorizes and appoints the Collateral Agent to act as the holder of an irrevocable power of attorney (fondé de pouvoir) (within the meaning of Article 2692 of the Civil Code of Quebec) in order to hold any hypothec granted under the laws of the Province of Quebec as security for any debenture, bond or other title of indebtedness that may be issued by any Canadian Credit Party pursuant to a deed of hypothec and to exercise such rights and duties as are conferred upon a fondé de pouvoir under the relevant deed of hypothec and applicable laws (with the power to delegate any such rights or duties). Moreover, in respect of any pledge by any such Canadian Credit Party of any such debenture, bond or other title of indebtedness as security in respect of any obligations arising hereunder or under the other Credit Documents, the Collateral Agent shall also be authorized to hold such debenture, bond or other title of indebtedness as agent, mandatary, custodian and pledgee for the benefit of the Agents, the Lenders and the Lender Counterparties, the whole notwithstanding the provisions of Section 32 of the An Act respecting the Special Powers of Legal Persons (Quebec). The execution prior to the date hereof by the Collateral Agent of any deed of hypothec or other security documents made pursuant to the laws of the Province of Quebec, is hereby ratified and confirmed. Any person who becomes a Lender, an Agent or a Lender Counterparty shall be deemed to have consented to and ratified the foregoing appointment of each of the Collateral Agent as fondé de pouvoir, agent, mandatary and custodian on behalf of all Agents, Lenders and the Lender Counterparties, including such person. For greater certainty, the Collateral Agent, when acting as the holder of an irrevocable power of attorney (fondé de pouvoir), shall have the same rights, powers, immunities, indemnities and exclusions from liability as are prescribed in favour of the Collateral Agent in this Agreement, which shall apply mutatis mutandis. In the event of the resignation and appointment of a successor Collateral Agent, such successor of the Collateral Agent shall also act as the holder of an irrevocable power of attorney (fondé de pouvoir), and as agent, mandatary and custodian for the purposes set forth above.

 

SECTION TWO - Conditions to Effectiveness. This Amendment shall become effective when, and only when, the Administrative Agent shall have received counterparts of this Amendment executed by the Borrower, the Guarantors, the Administrative Agent, the Collateral Agent and the Requisite Lenders.

 

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SECTION THREE - Representations and Warranties. The Borrower and Parent hereby represent and warrant to each of the Lenders and the Administrative Agent that after giving effect to this Amendment, (x) no Event of Default or Default has occurred and is continuing; and (y) the representations and warranties contained in the Credit Agreement and in the other Credit Documents are true and correct in all material respects (and any such representations and warranties that contain a materiality qualification are true and correct in all respects) on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects on and as of such earlier date.

 

SECTION FOUR - Reference to and Effect on the Credit Agreement and the Notes. On and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the Notes and each of the other Credit Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment. The Credit Agreement, the Notes and each of the other Credit Documents, as specifically amended by this Amendment, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations of the Credit Parties under the Credit Documents. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as an amendment or waiver of any right, power or remedy of any Lender or any Agent under any of the Credit Documents, nor constitute an amendment or waiver of any provision of any of the Credit Documents. Each Guarantor ratifies and confirms its Guaranty, and, if applicable, its Canadian Guarantee as being in full force and effect after giving effect to the Amendment herein set forth.

 

SECTION FIVE - Costs, Expenses and Taxes. The Borrower agrees to pay all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, if any (including, without limitation, the reasonable fees and expenses of Cahill Gordon & Reindel LLP) in accordance with the terms of Section 10.2 of the Credit Agreement.

 

SECTION SIX - Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate

 

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counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION SEVEN - Governing Law. This Amendment shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without regard to the principles of conflicts of laws thereof.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

 

	
 
    	
VALEANT PHARMACEUTICALS INTERNATIONAL,
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VALEANT PHARMACEUTICALS INTERNATIONAL, INC.,

as Parent and Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ATON PHARMA, INC.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CORIA LABORATORIES, LTD.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

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DOW PHARMACEUTICAL SCIENCES, INC.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DR. LEWINN’S PRIVATE FORMULA INTERNATIONAL, INC.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
OCEANSIDE PHARMACEUTICALS, INC.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PRINCETON PHARMA HOLDINGS, LLC,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

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PRIVATE FORMULA CORP.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RENAUD SKIN CARE LABORATORIES, INC.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VALEANT BIOMEDICALS, INC.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
VALEANT PHARMACEUTICALS NORTH AMERICA LLC (f/k/a VALEANT   PHARMACEUTICALS NORTH AMERICA), as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

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BIOVAIL AMERICAS CORP.,

as Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title: 
    

 

8

 

	
 
    	
GOLDMAN SACHS LENDING PARTNERS LLC,
    
	
 
    	
 
    
	
 
    	
as Administrative Agent   and Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
Title:  
    

 

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