Document:

SPLS EX 10.7 080214

                                

Exhibit 10.7

Non-Management Director Compensation Summary

Our non-management directors (“Outside Directors”) will be compensated as follows through a combination of cash payments and equity grants:

		
	1. 
	Cash Retainer.

Each director will receive $18,750 after each regularly scheduled quarterly Board meeting, and the Chair of the Audit Committee will receive an additional $3,750 at such time.  The quarterly cash retainer paid to a director leaving the Board will be pro-rated based on the number of days such director served on the Board between regularly scheduled meetings.

		
	2. 
	Equity Grants for All Outside Directors.

Initial Grant

In connection with his or her initial election to the Board, each director will be granted Staples restricted stock units with an aggregate value of $150,0001 on the grant date.  Such shares will be granted on the second business day following a director’s initial election to the Board and will vest in full on the third anniversary of the grant date.  

Annual Grant

Each director will receive an annual grant of Staples restricted stock units with an aggregate value of $175,0002 on the second business day following election to the Board at the annual meeting of stockholders (the “Annual Equity Award Date”)(such grant will vest in full one year after the Annual Equity Award Date); provided, that if a director is elected to the Board after Annual Equity Award Date, such equity grant will be granted on the second business day following the first regularly scheduled Board meeting that occurs after his or her election and such grant will be pro-rated based on the number of regularly scheduled meetings occurring on or after his or her election.  In the event of a pro-rata award, the shares will vest on the first anniversary of the Annual Equity Award Date.

		
	3.
	Equity Grants for the Lead Director/Committee Chairpersons.

The Lead Director will be granted Staples restricted stock units with an aggregate value of $40,0002 on the Annual Equity Award Date, which grant vests pro-rata on the date of each of the four regularly scheduled quarterly Board meetings that are held during the Staples’ fiscal year that includes the date of the award and at which the director is the Lead Director. Each of the Chairpersons of the Audit, Compensation, and Nominating and Corporate Governance Committees will be granted Staples restricted stock units with an aggregate value of $32,0002 on the Annual Equity Award Date, which grant vests pro-rata on the date of each of the four regularly scheduled quarterly Board meetings that are held during the Staples’ fiscal year that 

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includes the date of the award and at which each director is a chair of one of these three committees.  The chair of the Finance Committee will be granted Staples restricted stock units with an aggregate value of $16,0002 on the Annual Equity Award Date, which grant will vest pro-rata on the date of each of the four regularly scheduled Board meetings that are held during the Staples’ fiscal year that includes the date of the award and at which the director is the Finance Committee chair.  In the event a director becomes the Lead Director and/or chair of any of the above mentioned committees after the first regularly scheduled Board meeting of the fiscal year, such director will receive their award two business days after the next regularly scheduled Board meeting.  The restricted stock units will be paid in full on the first anniversary of the Annual Equity Award Date.    

		
	4.
	Unvested Awards.  

Unvested options and shares of restricted stock/restricted stock units are subject to accelerated vesting (and, in the case of restricted stock units, accelerated payment) upon a director’s death, disability, retirement from the Board after reaching the Board’s mandatory retirement age of 72, or the occurrence of a change in control of Staples.  In such instances, the unvested award(s) will vest in full.  All unvested awards are otherwise forfeited upon termination of the director’s service on the Board.

5.  Ownership Guidelines.  

The Board considers ownership of Staples stock by Board members to be important to align the interests of directors with those of stockholders.  Accordingly, it is a policy of the Board that, prior to five (5) years after joining the Board, all directors shall attain minimum stock ownership equal in value to at least five (5) times the annual Board cash retainer as set from time to time by the Board.  Management directors shall also maintain equity ownership consistent with guidelines adopted for Staples’ executives.

All shares owned outright, unvested restricted stock and vested stock options, whether obtained through employment, Board membership, or otherwise, shall be taken into consideration in determining compliance with the above stock ownership guidelines.   The value of stock options for this purpose shall be the excess of the market price of the underlying stock over the exercise price. 

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	Summary Table for Director Compensation

	Event
	Payment/Award
	Vesting/Holding Requirement

	One-Time Initial Election Award
	$150,000 of restricted stock units
	Cliff vest and paid 3 years after grant.

	Quarterly Cash Retainer
	$18,750 
($3,750 additional for Audit Committee Chair)
	N/A

	Annual Equity Retainer
	$175,000 of restricted stock
	Vest and paid 1 year after grant.

	Lead Director
	$40,0002 of restricted stock units annually
	Vest and paid 1 year after grant.

	Committee Chairperson
	$32,0002 of restricted stock units annually 
($16,000 Finance Committee Chair)
	Vest and paid 1 year after grant.

	Retirement after age 72
	All unvested options and restricted stock/units vest in full.
	N/A

                                                                      
1 The number of restricted stock units will be equal to the number arrived at by dividing 150,000 by the closing stock price on the grant date.

2  The number of restricted stock units will be equal to the number arrived at by dividing the dollar value of the award by the closing price on the grant date.  

3Exhibit 10.1

 

ARRAY BIOPHARMA INC.

 

DESCRIPTION OF PERFORMANCE BONUS PROGRAM

 

Array BioPharma Inc. (the “Company”) has established an annual performance bonus program for employees, including the Company’s executive officers. Through this program, employees can receive an annual bonus payable in cash, stock or stock option equivalents based on achievement of key Company and individual goals.  There is no guarantee that bonuses will be awarded in any given year. The bonus program is intended to strengthen the connection between individual compensation and Company success; reinforce the Company’s pay-for-performance philosophy by awarding higher bonuses to higher performing employees; and help ensure that the Company’s cash compensation is competitive.

 

The Compensation Committee recommends for approval by the independent directors of the Board the minimum, target and stretch corporate performance goals, and the relative weighting of these goals, for the upcoming fiscal year. The goals generally are based on the following objective performance criteria: revenues, earnings per share, license revenue, year-end cash, discovery research goals and clinical development goals. Each participant in the bonus program may be eligible to receive a target bonus amount calculated by multiplying the participant’s base salary by a percentage value later assigned to the participant or his or her position with the Company by the Compensation Committee.

 

Following the end of each fiscal year, the Compensation Committee determines in its discretion the extent to which the company-wide and individual performance goals were attained. Based on this assessment, the Compensation Committee will award bonuses equal to a varying percentage of an employee’s target bonus amount. The Compensation Committee may award a bonus in an amount less than or greater than the amount earned by a participant under the bonus program.

 

Individual bonuses can vary significantly based on performance. Any bonuses for a particular year are paid as a lump sum in cash, stock or stock option equivalents (or any combination thereof), less applicable payroll and other withholdings, in the quarter following that year. The plan can be amended in whole or in part by the Compensation Committee at any time until paid.

 

*****Exhibit 10.2

 

Array BioPharma Inc.

 

Notice of Grant of Restricted Stock Units

 

	
Participant Name:
    	
[Name]
    
	
 
    	
 
    
	
Employee Number:
    	
[SW Data]
    
	
 
    	
 
    
	
Grant Name:
    	
[SW Data]
    
	
 
    	
 
    
	
Grant Date:
    	
[Date]
    
	
 
    	
 
    
	
Expiration Date:
    	
[Date]
    
	
 
    	
 
    
	
Number of Stock Units:
    	
[SW Data]
    
	
 
    	
 
    
	
Vesting Start Date:
    	
[Date]
    
	
 
    	
 
    
	
Vesting Schedule:
    	
[Vesting   Schedule or Conditions]
    

 

ATTACHMENT

 

Restricted Stock Unit Agreement

 

This cover sheet and the attached Restricted Stock Unit Agreement are not

a stock certificate or a negotiable instrument.

 

 

ARRAY BIOPHARMA INC.

AMENDED AND RESTATED STOCK OPTION AND INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AGREEMENT

 

Array BioPharma Inc., a Delaware corporation (the “Company”), hereby grants to the participant named on the attached cover sheet a number of restricted stock units set forth on such cover sheet (the “Stock Units”). The terms and conditions of the Stock Units are set forth on the attached cover sheet, this Restricted Stock Unit Agreement (the “Agreement”) and in the Amended and Restated Array BioPharma Inc. Stock Option and Incentive Plan (the “Plan”).

 

By clicking “Accept” at the end of this Agreement, you agree to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is available by accessing the link at the end of this Agreement.  You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this Agreement should appear to be inconsistent.

 

Array BioPharma Inc.

 

 

	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Ron Squarer, Chief   Executive Officer
    	
 
    

 

 

Capitalized terms used in this Agreement that are not otherwise defined in this Agreement have the meaning given such terms in the Plan.

 

	
Stock Unit Transferability
    	
 
    	
This grant is an award of stock units in the   number of units set forth on the cover sheet, subject to the vesting   conditions described below (“Stock Units”). Your Stock Units may not   be transferred, assigned, pledged or hypothecated, whether by operation of   law or otherwise, nor may the Stock Units be made subject to execution, attachment   or similar process.
    
	
 
    	
 
    	
 
    
	
Vesting Schedule
    	
 
    	
Provided you continue in Service on each vesting date and subject to   the deceleration provisions in the following paragraph and the acceleration   provisions below, your Stock Units shall vest as indicated in the Vesting   Schedule on the attached cover sheet.

 

For Time-Based Stock Units (defined below)   only, notwithstanding the foregoing, if you work less than your scheduled annualized hours   (as determined by the Company on the Grant Date and which equal either 1,664,   1,872 or 2,080 hours per year) (“Annualized Hours”) during the year   ending on the anniversary of the Vesting Start Date (the “Anniversary Date”)   or any subsequent one-year anniversary of the Anniversary Date, then the   number of Stock Units that vest during such year, if any, shall be reduced by   a factor equal to the actual number of hours worked during the year divided   by your Annualized Hours.

 

Any Stock Units that vest solely as a result of your continued   Service to the Company (“Time-Based Stock Units”) and that do not vest   prior to expiration of the Vesting Schedule set forth above because of the   application of the foregoing paragraph shall be eligible for vesting on each   Anniversary Date thereafter at the rate set forth in the Vesting Schedule   above, provided that you remain in Service as of any such date. The maximum   number of Time-Based Stock Units that may vest in any such year shall be 100%   of the Time-Based Stock Units, provided that you work at least your   Annualized Hours during the preceding year, and if you work less than your   Annualized Hours during the preceding year, the number of Time-Based Stock   Units that vest during such year shall be the lesser of (i) 100% of the   Time-Based Stock Units reduced by the formula set forth in the foregoing   paragraph, or (ii) the remaining unvested Stock Units.

 

The resulting aggregate number of vested Stock Units will be rounded   to the nearest whole number. You cannot vest in more than the number of Stock   Units covered by this grant.

 

No additional Stock Units will vest after   your Service has terminated for any reason, except as may be provided in the   section below entitled “Acceleration of Vesting”.
    

 

 

	
Acceleration of Vesting
    	
 
    	
Notwithstanding any other provision of this   Agreement or the Plan, the following acceleration provisions shall apply to   the vesting of the Stock Units:

 

[Insert accelerated   vesting provisions, if any, consistent with the acceleration of vesting   provisions contained in any employment agreement with the recipient.]
    
	
 
    	
 
    	
 
    
	
Leaves of Absence
    	
 
    	
For purposes of this Agreement, your Service   does not terminate when you go on a bona fide   leave of absence (i) that was approved by the Company in writing, if the   terms of the leave provide for continued Service crediting, or (ii) when   continued Service crediting is required by applicable law. However, your   Service will be treated as terminating for purposes of the “Vesting” sections   of this Agreement in accordance with the then effective policies of the   Company relating to leaves of absence, unless your right to return to active   work is guaranteed by law or by a contract. Your Service terminates in any   event when the approved leave ends unless you immediately return to active   employee work.

 

The Company determines, in its sole   discretion, which leaves count for this purpose, and when your Service   terminates for all purposes under the Plan.
    
	
 
    	
 
    	
 
    
	
Delivery of Stock Pursuant to Units
    	
 
    	
A certificate for the shares of Common Stock   represented by your this Agreement shall be delivered to you, or to your   eligible beneficiary or your estate, on the date on which all or the   applicable portion of your Stock Units have vested.

 

Notwithstanding the preceding paragraph:

 

·                  If you are a “key employee” within the meaning of Section 409A   of the Code and shares would otherwise be delivered to you on account of your   separation from Service, then such shares shall not be delivered to you until   six months after your separation from Service; and

·                  If the shares relating to the vested Stock Units would otherwise be   delivered during a period in which you are (i) subject to a lock-up   agreement restricting your ability to sell shares of Common Stock in the open   market or (ii) restricted from selling shares of Common Stock in the   open market because you are not then eligible to sell under the Company’s   insider trading or similar plan as then in effect (whether because a trading   window is not open or you are otherwise restricted from trading), delivery of   the shares related to the vested Stock Units may be delayed until no earlier   than the first date on which you are no longer prohibited from selling shares   of Common Stock due to a lock-up agreement or insider trading plan   restriction, but, in any event, not beyond June 30 of the calendar year   following the year in which you vested in the Stock Units.
    
	
 
    	
 
    	
 
    
	
Withholding Taxes
    	
 
    	
You agree, as a condition of this grant,   that you will make acceptable arrangements to pay any withholding or other   taxes that may be due as a result of vesting in Stock Units or your   acquisition of Common Stock under this grant. In the event that the Company   determines that any federal, state, local or foreign tax or withholding   payment is required relating to this grant, unless you shall have provided   funds to the Company to satisfy any required federal, state, local or foreign   tax or withholding payment, then the 
    

 

 

	
 
    	
 
    	
Company will cause an immediate   forfeiture of shares of Common Stock subject to the Stock Unit granted   pursuant to this Agreement having a Fair Market Value equal to the   withholding or other taxes due.
    
	
 
    	
 
    	
 
    
	
No Employment or Service Contract
    	
 
    	
This Agreement does not give you the right   to be retained or employed by the Company (or any Parent or Subsidiary) in   any capacity or for any period of time. The Company (and any Parent or   Subsidiary) reserves the right to terminate your Service at any time and for   any reason.
    
	
 
    	
 
    	
 
    
	
Shareholder Rights
    	
 
    	
You do not have any of the rights of a   shareholder with respect to the Stock Units unless and until the Common Stock   relating to the Stock Units has been delivered to you.
    
	
 
    	
 
    	
 
    
	
Adjustments
    	
 
    	
In the event of a stock split, a stock   dividend or a similar change in the Common Stock, the number of Stock Units   covered by this grant will be adjusted (and rounded down to the nearest whole   number) in accordance with the terms of the Plan.
    
	
 
    	
 
    	
 
    
	
Applicable Law
    	
 
    	
This Agreement will be interpreted and   enforced under the laws of the State of Colorado, other than any conflicts or   choice of law rule or principle that might otherwise refer construction   or interpretation of this Agreement to the substantive law of another   jurisdiction.
    
	
 
    	
 
    	
 
    
	
Consent to Electronic Delivery
    	
 
    	
The Company may choose to deliver certain   statutory materials relating to the Plan in electronic form. By accepting   this grant you agree that the Company may deliver the Plan prospectus and the   Company’s annual report and proxy statement to you in an electronic format.   If at any time you would prefer to receive paper copies of these documents,   as you are entitled to receive, the Company would be pleased to provide   copies. Please contact Human Resources to request paper copies of these   documents.
    
	
 
    	
 
    	
 
    
	
The Plan and Other Rights
    	
 
    	
The text of the Plan is incorporated in this   Agreement by reference. This Agreement, the attached cover sheet and the Plan   constitute the entire understanding between you and the Company regarding   this grant of Stock Units. Any prior agreements, commitments or negotiations   concerning this grant are superseded. The Plan will control in the event any   provision of this Agreement or the attached cover sheet should appear to be   inconsistent with the terms of the Plan.
    

 

By clicking “Accept” below, you agree to all of the terms and conditions described above and in the Plan.

 

[INSERT ‘ACCEPT’ AND ‘DO NOT ACCEPT’ LINKS]

 

[INSERT LINKS TO THE PLAN, PROSPECTUS AND ANNUAL REPORT]

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