Document:

exv10w1

 

Exhibit 10.1

EXHIBIT A

DIGENE CORPORATION

AMENDMENT TO THE AMENDED AND RESTATED 1999 INCENTIVE PLAN

Stock Option Awards to Employees Working in France

1. Purpose of this Amendment.

     The purpose of this Amendment (the “French Sub-Plan”) to the Amended and Restated 1999
Incentive Plan (the “Plan”) of Digene Corporation (the “Company”), is to enable the Company to
grant to Employees, working in France, either temporarily or permanently and employed by either the
Company or any Subsidiary, or working for the Company or any Subsidiary and residing in France (the
“French Employees”), Stock Options under the Plan in a manner consistent with applicable law.
Without limiting the foregoing, as of and after the date this French Sub-Plan is adopted and
approved by the Committee, the Stock Options granted to French Employees under this French Sub-Plan
are intended to qualify under Sections L. 225-177 to L. 225-186 of the French commercial code to
benefit from both preferential tax treatment and an exemption from social charges.

     Unless otherwise defined herein, the capitalized terms used in this French Sub-Plan shall have
the meanings set forth in the Plan.

     In the event of a conflict between the provisions of the Plan and this French Sub-Plan with
respect to Stock Options granted to any French Employee, the provisions of this French Sub-Plan
shall control. Except as amended by this French Sub-Plan, the Plan shall continue in full force
and effect.

2. Provisions Specific to Stock Option Awards to French Employees.

     (a) Eligible Participants.

     (i) The Participants eligible to receive Stock Option Awards under this French Sub-Plan
include the French Employees and any director or manager having a management function for
the Company or any Subsidiary organized under French law. No other Participants under the
Plan or independent contractors or consultants to the Company or any of its Subsidiaries are
eligible to receive Stock Option Awards under this French Sub-Plan.

     (ii) Stock Options shall not be granted under this French Sub-Plan to any French
Employee who holds shares representing 10% or more of the Company’s outstanding common stock
at the time of the Award.

     (b) Eligible Subsidiary. In the event of any future change to the definition of Subsidiary
under the Plan, French Employees who receive Stock Options issued by the Company must be employed
by a company with sufficiently close capital links to the Company, therefore, at least 10% of the French
Employee’s employer company’s capital must be held, directly or indirectly, by the Company (or the employer company must directly or indirectly hold at least 10% of the Company’s capital) or at
least 50% of the employer’s company capital must be held,

 

directly or indirectly, by a company
which holds, directly or indirectly, at least 50% of the Company’s capital.

     (c) Exercise Price of Stock Options.

     (i) The exercise price at the time of the grant of any Stock Option granted to a French
Employee under this French Sub-Plan shall be no less than 80% of the average Fair Market
Value of the Common Stock during the 20 trading days preceding the Award or 80% of the
average repurchase price of the shares of Common Stock held by the Company if the Company
elects to grant Stock Options based on authorized and issued shares reacquired by the
Company and allocated to cover the Stock Option Award to a French Employee.

     (ii) Notwithstanding any other provision of the Plan, including, without limitation,
Section 4.3 (Changes) and Section 6.4(j) (Merger and Other Fundamental Transactions), the
exercise price of any Stock Option granted to a French Employee under this French Sub-Plan
is fixed as of the date of grant and shall be adjusted only upon the occurrence of an event
specified under the French commercial code (Section L. 225-181).

     (d) Restrictions on Granting of Awards. Notwithstanding any other provision of the Plan or
applicable law, no Stock Option Awards shall be made to any French Employee under this French
Sub-Plan:

     (i) within twenty (20) trading days of the principal stock exchange on which the
Company’s Common Stock is then listed following a distribution of dividends or a capital
increase of the Company;

     (ii) during the ten (10) trading days preceding and following the filing, with the U.S.
Securities and Exchange Commission, of the Company’s Annual Report on Form 10-K or any
Quarterly Report on Form 10-Q (or any successor form to either the Form 10-K or Form 10-Q);
or

     (iii) during a period starting on the date that the Company becomes aware of
information which could have a significant impact on the Company’s Common Stock price and
ending ten (10) trading days after this information has been made public in compliance with
applicable law. The Committee shall have the authority to make the determination called for
by this Section 2(d)(iii) at the time of any applicable Award.

     (e) Holding Period. Each Stock Option Award to a French Employee under this French
Sub-Plan shall provide that either: (i) the Stock Options shall not begin to vest until the date
four (4) years after the Date of Grant; or (ii) the Optionee shall be entitled to exercise all or a
portion of the Stock Option Award in accordance with the vesting schedule, but shall not be entitled to sell the underlying Common
Stock until at least four (4) years after the Date of Grant.

     (f) Death of French Employee. In the event of the death of a French Employee with
outstanding Stock Options at the time of his or her death, the Stock Options may be exercised at
any time during a maximum six (6) month period following the date of the French Employee’s

2

 

death by the French Employee’s estate or by a person who acquired the right to exercise the Stock Option by
request or inheritance, but only to the extent that the French Employee was entitled to exercise
the Stock Options at the date of death or would have been entitled to exercise the Stock Options
during the said maximum six (6) month period. If the successors do not exercise the Stock Options
granted to such French Employee during such six-month period, the successors’ rights in respect of
such Stock Options shall lapse in total without any formality and the shares of Common Stock
underlying such Stock Options shall revert to the Plan. This provision specifically alters the
provisions of Section 6.4(f) (Death) of the Plan as related to Stock Option Awards to French
Employees under this French Sub-Plan.

     (g) Size of Award. No more than one-third of the Company’s outstanding Common Stock may be
subject to Stock Options Awards under this French Sub-Plan at any time during the term of the Plan.

     (h) Restrictions on Requirement to Hold Common Stock after Exercise. The Committee shall
not grant a Stock Option, or amend an existing Award, to any French Employee under this French
Sub-Plan that requires the French Employee to hold the shares of Common Stock for more than three
(3) years after exercise of the Stock Option Award.

3. Approval of this French Sub-Plan.

     This French Sub-Plan was approved and adopted by the Committee on February ___, 2005 in
accordance with the provisions of Sections 3.2 (Awards) and 9.1 (Termination or Amendment of the
Plan) of the Plan.

3<PAGE>
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                                                                   EXHIBIT 10.60

          ANNUAL BASE SALARY FOR THE COMPANY'S NAMED EXECUTIVE OFFICERS
                          EFFECTIVE AS OF APRIL 4, 2005

<TABLE>
<CAPTION>
                                                                          APPROVED BASE
                              EXECUTIVE OFFICER                              SALARY
                              -----------------                           -------------
<S>                                                                       <C>
Steven B. Engle
      Chief Executive Officer and Chairman of the Board                     $436,800
Matthew D. Linnik, Ph.D.
      Chief Scientific Officer and Executive Vice President of Research     $305,482
Bruce K. Bennett, Jr.
      Vice President of Manufacturing                                       $209,847
Josefina T. Elchico
      Vice President of Quality Systems                                     $202,000
William J. Welch
      Vice President of Sales and Marketing                                 $245,424
</TABLE><PAGE>
                                                                    EXHIBIT 10.1

SUMMARY SHEET OF DIRECTOR FEES AND EXECUTIVE OFFICER COMPENSATION

I.  DIRECTOR COMPENSATION

For 2005, the compensation payable to the Company's Independent Directors (other
than the Lead Independent Director) consists of:

1.    A $50,000 cash retainer;

2.    2,000 restricted shares of the Company's common stock which shall
constitute "Annual Awards" under the Company's Amended and Restated Independent
Director Stock Compensation Plan (the "Plan"); and

3.    Additional equity compensation equal to the difference resulting from
subtracting the value of the 2,000 Annual Awards referred to in 2. above and
granted in accordance with the Plan from $50,000, provided that such
compensation is taken as "Elective Awards" under the Plan.

For 2005, the compensation payable to the Company's Lead Independent Director
consists of:

     1. A $100,000 cash retainer;

     2. 2,000 restricted shares of the Company's common stock which shall
        constitute an Annual Award under the Plan; and

     3. Additional equity compensation equal to the difference obtained by
        subtracting the value of the 2,000 Annual Award referred to in 2. above
        and granted in accordance with the Plan from $100,000, provided that
        such compensation is taken as an Elective Award under the Plan.

     The 2005 board compensation for the Lead Independent Director is the same
as in 2004, except for the additional equity compensation described in 3. above.

     In addition, for 2005, additional compensation of $20,000 will be paid to
the Corporate Governance and Nominating Committee chairperson  and the
Compensation and Human Resources Committee chairperson, and additional
compensation of $35,000 will be paid to the Audit Committee chairperson.  Annual
payments of $10,000 will be paid to the non-chairperson members of the Audit
Committee.
<PAGE>
II.     EXECUTIVE COMPENSATION

     BASE SALARIES

     The following table sets for the current base salaries of the Company's CEO
and each of the executive officers who were named in the Summary Compensation
Table in the Company's definitive proxy statement filed with the SEC on April
12, 2005 (the "Named Executive Officers")

<TABLE>
<CAPTION>

EXECUTIVE OFFICER                                      BASE SALARY
-----------------                                -----------
<S>                                              <C>
Robert J. Laikin, Chairman of the Board and      $705,000
Chief Executive Officer

Frank Terence, Executive Vice President,         $410,000
Chief Financial Officer and Treasurer

Steven E. Fivel, Executive Vice President,       $350,000
General Counsel and Secretary

J. Mark Howell, President, Brightpoint, Inc.     $420,000
and Brightpoint North America

Lisa M. Kelley, Senior Vice President, Chief     $225,000
Accounting Officer and Controller, and Acting
Chief Financial Officer

</TABLE>

BONUS AND PARTICIPATION IN STOCK OPTION PLANS

Named Executive Officers are also eligible to:

     -  Participate in the 2005 bonus program for the Named Executive Officers,
       which is based upon certain pre-established targets for: (i) income from
       continuing operations (50%), (ii) return on investment capital (20%), and
       (iii) certain strategic objectives approved by the Committee (30%). If
       all of these targets are reached, Mr. Laikin, the Company's Chief
       Executive Officer, will receive a cash bonus equal to 100% of his base
       salary and each of the other executive officers will receive a cash bonus
       equal to 50% of their respective base salaries as a bonus.

     -  Participate in the Company's 2004 Long-Term Incentive Plan (the "2004
       Plan"), including the 2005 executive equity program adopted pursuant to
       and in furtherance of the goals of the 2004 Plan, pursuant to which the
       Named Executive Officers were granted options and other stock based
       awards in the form of restricted stock units ("RSUs") under, and in
       accordance with, the 2004 Plan.  The number of options and RSUs granted
<PAGE>
to each Named Executive Officer was based on a target percentage of that
executive's base salary, as follows:

<TABLE>
<CAPTION>

Position                      Target Equity Award (Up to % of Base Salary)
--------                      --------------------------------------------
<S>                           <C>
Chief Executive Officer       125%
Chief Financial Officer       100%
General Counsel               100%
President - Americas          100%
Chief Accounting Officer       50%
</TABLE>

The 2004 Plan grants made pursuant to the executive equity program are subject
to forfeiture, in whole or in part, prior to the first anniversary of the date
of grant if the Company does not achieve certain performance goals weighted as
follows: (i) income from continuing operations (50%), (ii) return on invested
capital (20%) and (iii) strategic milestones (30%). If any or all of the
performance goals are not achieved, then the corresponding percentage of the
options and RSUs granted would be forfeited.  Those options and RSUs no longer
subject to forfeiture vest in three equal annual installments beginning with the
first anniversary of the date of grant, subject to, and in accordance with the
2004 Plan and the option and RSU agreements entered into between the Company and
the grantee.

     -  Participate in the Company's 1994 and 1996 Option Plans

Supplemental Retirement Benefit Agreements

     -  Mr. Laikin, the Company's Chief Executive Officer, Mr. Howell, the
       Company's President and Mr. Fivel, the Company's Executive Vice President
       and General Counsel, each entered into Supplemental Retirement Benefit
       Agreements ("Retirement Agreements") with each the Company.  The
       Retirement Agreements provide that the Company will implement a
       supplemental retirement benefit providing each executive with a
       single-life annuity.  The benefit is expressed as the annual payment per
       a single-life annuity commencing at age 62, with such annual payment
       equal to a certain percentage of average base salary and bonus based on
       the executive's final five years of work, with such percentage not to be
       greater than 50%.  If the executive's employment is terminated other than
       for Cause, a discounted annual single-life annuity benefit would commence
       being paid to Mr. Laikin at age 50, to Mr. Howell at age 53 and to Mr.
       Fivel at age 55, or upon termination if that event occurs after the
       respective age.  If the executive is terminated for cause (as defined in
       the executive's employment agreement), then the benefit would not
       commence until age 62.

       Assuming annual salary increases of 5% per year, the anticipated payments
       pursuant to the Retirement Agreements would be approximately $500,000 per
       year to Mr. Laikin commencing at age 50, $344,000 per year to Mr. Howell
       commencing upon age 53 and $229,000 per year to Mr. Fivel commencing upon
       age 55.

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