Document:

ENERGY CONVERSION DEVICES, INC.

Form Of Restricted Stock Unit Award Agreement

under the Energy Conversion Devices, Inc.

2006 Stock Incentive Plan

 

 

	
            Participant:
 	
             
 	
             

 
	
            Grant Date:
 	
             
 	
             , 2008
 	
             
 

	
            Number of
 	
             
 	
             
 
	
            Restricted Stock Units:
 	
             
 	
             
 

 

This Restricted Stock Unit Award Agreement (“Agreement”), dated as of the Grant Date, is entered into by and between Energy Conversion Devices, Inc., a Delaware corporation (the “Company”), and the Participant under the Company’s 2006 Stock Incentive Plan (the “Plan”).  The words “you,” “your,” and similar terms refer to the Participant to whom this Award is granted.

1.         Definitions and the Plan.  All capitalized terms that are not otherwise defined in this Agreement have the meanings set forth in the Plan, the text of which is incorporated into this Agreement by reference.  In case of any conflict between this Agreement and the Plan, the terms of the Plan shall control.

2.         Number of Shares.  

(a)    This Agreement entitles you to the number of Restricted Stock Units set forth above.  Each Restricted Stock Unit will have a nominal value equal to the Fair Market Value of one Share.   

(b)    The number of Restricted Stock Units shall be adjusted to reflect certain events affecting the Company’s capitalization in accordance with Section 5.7 of the Plan.  

3.         Vesting and Lapse of the Restriction Period.  The Restricted Stock Units (i.e., your rights to receive Shares) in this Award are subject to forfeiture until they vest.  The Restricted Stock Units vest ratably during the 12-month period beginning on the grant date, 1/12 each month.

 

 

Energy Conversion Devices, Inc.

	
            Restricted Stock Unit Award Agreement
 	
            Page 2 of 4
 

 

 

4.         Payment.  The Shares represented by the vested Restricted Stock Units shall be delivered to you within 30 days after you cease to be a director of the Company.  Payment in Shares shall be subject to the Restrictions on Delivery and Resale set forth below.

5.         Rights of the Participant as Shareholder.  

(a)    This Agreement does not give you any rights of a stockholder.  However, if these Restricted Stock Units vest, you will gain stockholder rights when Shares are transferred to you.

(b)    You shall receive payments equivalent to dividends or other distributions with respect to Restricted Stock Units underlying Shares on the same date and in the same form as the Company’s shareholders, provided that you remain a director of the Company until such dividends or other distributions are paid. 

6.         Change in Control.  

(a)    In the event of a Change in Control, there shall be substituted for each Share subject to the Restricted Stock Units, the number and class of shares into which each outstanding Share shall be converted pursuant to such Change in Control, except as follows.  If, in connection with the Change in Control, each outstanding Share is not converted into a class of shares that are publicly traded, in lieu of each Share subject to the Restricted Stock Units, there shall be credited to a hypothetical account for you on the date of the Change in Control a vested amount equal to the Fair Market Value of one Share immediately before the Change in Control, and such amount shall be increased by interest at a rate equal to 1% plus the prime rate as published by the Wall Street Journal on the date of the Change in Control (or, if not published on that date, on the most recent business day before the
Change in Control, or, if not published on that date, as determined by the Committee immediately before the Change in Control).

(b)    The Restricted Stock Units shall, notwithstanding Section 3, become immediately vested upon the Change in Control.

(c)    The Restricted Stock Units (or the account described in subsection (a), above) shall be paid within 90 days of a Change in Control if such Change in Control constitutes a change in control determined under Section 409A(a)(2)(A)(v) of the Code and the regulations thereunder.  Otherwise, payment shall be made on the payment date determined without regard to this subsection (c).

 

 

Energy Conversion Devices, Inc.

	
            Restricted Stock Unit Award Agreement
 	
            Page 3 of 4
 

 

 

7.         Nontransferability.  

(a)    Unless the Committee or its designee determines otherwise, you may not transfer the Restricted Stock Units awarded under this Agreement.  

(b)    Unless otherwise required by law, your rights and interests under this Award may not be subject to lien, obligation, or liability.

8.         Additional Restrictions on Delivery and Resale.  Shares that are otherwise due to be provided under this Agreement shall not be delivered and you may not sell any Shares awarded under this Agreement at a time when lifting the restrictions or sale of the Shares would be prohibited under any applicable federal, state, local, or exchange laws, rules, or regulations (“Applicable Law”).  If payment is delayed pursuant to this Section 8, payment shall be made no later than the earliest date at which the Committee reasonably anticipates that the making of the payment will not cause a violation of Applicable Law.

9.         Notices.  

(a)    Any notice from you to the Company must be in writing and shall be deemed effective when it is received by the Company at the Company’s principal office.

(b)    Any notice from the Company to you must be in writing and shall be deemed effective when it is personally delivered to you or when it is deposited in the U.S. Mail, with postage and fees prepaid.

10.       Governing Law.  This Agreement shall be governed by and interpreted in accordance with Delaware law, without regard to any principles of Delaware law that might direct resolution to the laws of a different jurisdiction.

11.       Severability.  If any provision in this Agreement is determined to be unenforceable or invalid, such invalidity or unenforceability shall not affect any other provision hereof, and the Plan shall be construed and enforced as if such provision had not been included.

12.       Waiver.  The waiver by you or the Company or an Affiliate of any provision of this Agreement at any time or for any purpose shall not operate as or be construed to be a waiver of the same or any other provision of this Agreement at any subsequent time or for any other purpose.

13.       Interpretation and Construction.  This Agreement shall be construed and interpreted by the Committee, in its sole discretion.  Any interpretation or other determination by the Committee (including, but not limited to, correction of any defect or omission and reconciliation of any inconsistency in the Agreement or the Plan) shall be binding and conclusive.

 

 

Energy Conversion Devices, Inc.

	
            Restricted Stock Unit Award Agreement
 	
            Page 4 of 4
 

 

 

14.       Headings.  The headings in this Agreement are provided solely as a convenience to facilitate reference.  The headings shall not be relevant for purposes of construing or interpreting any part of this Agreement.

15.       Entire Understanding.  This Agreement and the Plan constitute the entire understanding between you and the Company and its Affiliates regarding this Award.  Any prior agreements, commitments, or negotiations concerning this Award are superseded.

16.       Code Section 409A.  This Agreement is intended, and shall be construed, to comply with the requirements of Section 409A of the Code.  Payments made on account of a cessation of Board service shall be made upon a “separation from service” within the meaning for Section 409A of the Code.

	
             
 	
            ENERGY CONVERSION DEVICES, INC.,
 	
             
 

 

	
             
 	
            By:
 	
             
 	
             
 
	
             
 	
            Title:
 	
             
 	
             
 

 

I have read this Agreement and the Plan, and I understand and agree to their terms and conditions.         

 

	
             
 	
            Participant’s Signature
 	
             
 

 

	
             
 	
            Participant’s Name (please print)TERMINATION AGREEMENT

EXHIBIT 10.32

 

TERMINATION AGREEMENT

 

between

 

	
ELIZABETH ARDEN INTERNATIONAL Sàrl

28, chemin de Joinville

CH-1216 Cointrin

	 	
as party of the first part

	
(hereinafter "ARDEN")
	 	 

and

 

	
Mr. Jacobus A.J. Steffens

Chemin des Lilas Blancs

CH-1225 Chêne-Bourg

	 	
as party of the second part

	
(hereinafter "Mr. STEFFENS")
	 	 

 

 

WHEREAS, the parties have agreed that Mr. STEFFENS's employment with ARDEN shall terminate on December 31st, 2008;

WHEREAS, the parties desire to enter into this Termination Agreement ("Agreement") to define their respective rights and obligations, including for the period from execution of this Agreement by both parties until December 31st, 2008 (the "Transition Period");

NOW THEREFORE, in consideration of the promises and terms set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

Article 1

The parties agree that Mr. STEFFENS's employment with ARDEN shall terminate on December 31st, 2008.

Article 2

The recitals set forth above are incorporated into and made a part of this Agreement.  Mr. STEFFENS agrees that he will work in a full-time capacity for the International Business Unit of ARDEN through the Transition Period; provided that Mr. STEFFENS will be permitted to spend a reasonable amount of work time to interview and research new job opportunities, and ARDEN agrees:

(a) to continue to pay Mr. STEFFENS his current base salary in accordance with ARDEN's normal pay practices, including his 13th month salary through the Transition Period;

(b)  to pay to Mr. STEFFENS any balance for untaken vacation days accrued for calendar year 2008 by December 31st, 2008;

(c) that Mr. STEFFENS will receive his normal employee benefits through the Transition Period;  

(d) that Mr. STEFFENS will be permitted to exercise any outstanding stock options that are vested as of December 31, 2008; provided that such exercise occurs no later than March 31st, 2009. Mr. STEFFENS is entitled to vest in any restricted stock that vests on or before December 31st, 2008;

(e) that Mr STEFFENS will retain his full eligibility to receive a cash bonus in accordance with the Management Bonus Plan for executive officers of Elizabeth Arden, Inc. ("EA"), which provides that he is eligible to receive a quarterly bonus corresponding to 5% of 50% of his annual base salary if EAI achieves the specified earnings per share target set forth by the Compensation Committee of the Board of Directors of EAI on August 12, 2008 (the "Target") for EAI's fiscal quarter ending September 30, 2008 in accordance with the terms of such plan.

Article 3

During the Transition Period, Mr. STEFFENS will assist in the hand-over of the International Business Unit and the orientation of the new Vice President Commercial and Operation Finance. To the extent Mr. STEFFENS satisfactorily fulfils the above-referenced responsibilities for ARDEN through the Transition Period, and in addition to the consideration set forth in Article 2, ARDEN agrees 

(i) to give Mr. STEFFENS on the last day of the Transition Period a lump-sum amount corresponding to twelve (12) months of Mr. STEFFENS' current base annual salary, twelve (12) months of health insurance allowance and twelve (12) months of car allowance (less any applicable withholdings) to assist in his transition to a new job opportunity; 

(ii) to permit Mr. STEFFENS to retain his full eligibility to receive a cash bonus in accordance with the Management Bonus Plan of EAI corresponding to 5% of 50% of his annual base salary if EAI achieves the Target for EAI's fiscal quarter ending December 31, 2008; 

(iii) to provide the payments set forth in Article 9; and 

(iv) to provide the payments set forth in Article 10. 

Article 4

Should Mr. STEFFENS decide to leave employment with ARDEN prior to the end of the Transition Period, ARDEN will nevertheless pay his normal salary, health insurance premiums and car allowances until December 31st, 2008, his thirteenth salary for the calendar year 2008 and the balance of any untaken vacation days remaining due by December 31st, 2008, provided however that Mr. STEFFENS will not be entitled to the payments and benefits mentioned in Articles 3, 9 and 10.

Article 5

On the basis of the benefits outlined in Articles 3 (if applicable), 4, 9 and 10 granted to Mr. STEFFENS on December 31st, 2008 pursuant to the present Agreement, and ARDEN's undertaking to pay the outplacement program mentioned in article 10, Mr. STEFFENS understands and agrees that any illness or incapacity to work during the Transition Period will not extend the final term of employment beyond December 31st, 2008.

Article 6

Mr. STEFFENS agrees to inform his medical insurance provider of his departure from ARDEN in order to be covered for medical expenses in the case of a non-professional accident. Mr. STEFFENS acknowledges that he will be covered by the Helsana Assurances policy until January 30, 2009 and must therefore arrange for his own accident insurance by January 31st, 2009. 

Mr. STEFFENS has the option to remain with Helsana on an individual basis following his last day of employment.  Application forms may be obtained from ARDEN payroll department for this purpose. Should Mr. STEFFENS exercise this option, he should bear in mind that the minimum coverage (LAA) will apply, which is less than he currently receives from ARDEN, unless he specifically requests and pays for for additional coverages.

Article 7

If Mr. STEFFENS is registered with PROGRES under ARDEN's collective health insurance contract, the last day that he will be covered will be December 31st, 2008.

 

Article 8

The contributions Mr. STEFFENS and ARDEN have made to the Pension Plan will be transferred by Swiss Life to an account designated by him as per his instructions on a form provided by Human Resources.

Article 9

Subject to Article 3, the Company will agree to pay the tuition to the International School in Geneva for the attendance of Mr. STEFFENS's children until the end of the 2008/2009 school year. No further tuition will be paid to the school after the current school year.

Article 10

Subject to Article 3, ARDEN will agree  to obtain and pay for a career transitioning service (outplacement) with a reputable company of Mr. STEFFENS's choice up to a maximum amount of Fr. 20,000.-. The outplacement program must start prior to February 1st, 2009 and will be paid directly by ARDEN to the company selected by Mr. STEFFENS.

Article 11

Through the Transition Period, Mr. STEFFENS agrees not to perform any activities (paid or unpaid), for a competitor of ARDEN. In case of failure to comply with this duty of loyalty, Arden reserves the right to deduct any damages suffered by our company from the payments set forth in this Termination Agreement. 

Article 12

Mr. STEFFENS agrees that for a period of two years after the Transition Period he shall not directly or indirectly solicit any employee of ARDEN or its affiliates to become an employee, partner, or independent contractor for any competing business.

 

Article 13

Both before and after the termination of his employment with ARDEN, Mr. STEFFENS undertakes to keep strictly confidential and not disclose to any person, without ARDEN's prior written consent, any and all business information belonging or relating to ARDEN or its affiliated companies, including, but not limited to business, marketing and sales plans and strategies, pricing and cost information, product and inventory information, intellectual property information, operational methods and other trade secrets even if not expressly stated by ARDEN or its affiliates as being confidential. 

Article 14

At the end of his employment and prior to his departure from the office, Mr. STEFFENS agrees to return to ARDEN his keys, access card, laptop and any other property of ARDEN.

On or before the last day of the Transition Period, ARDEN shall provide to Mr. STEFFENS a draft work certificate relating to Mr. STEFFENS.  Mr. STEFFENS will be entitled to make comments on the draft work certificate and ARDEN shall take them into consideration.

Promptly following the date of this Agreement, Mr. STEFFENS and ARDEN shall work out in good faith a brief statement outlining his desired communication to employees relating to his departure from ARDEN, which statement will be consistent with the terms of this Agreement.  Unless otherwise required by law, any formal public statements by ARDEN relating to his departure will just note his departure and/or be consistent with the communication to employees.  

Article 15

ARDEN, on its behalf and on behalf of its subsidiaries and affiliates, and Mr. STEFFENS acknowledge and agree, that they have no claims and hereby release all claims, known or unknown, of any nature whatsoever relating in any way to Mr. STEFFENS's employment with ARDEN, Mr. STEFFENS' position with any affiliates of ARDEN, or termination of such employment or position,  against each other.  In the case of Mr. STEFFENS's release it will also extend to any affiliates of ARDEN and any of ARDEN's or its affiliates', directors, officers, employees, agents and representatives.    Nothing herein shall preclude either party from raising claims relating to their failure to comply with their respective obligations under this Agreement.  Promptly following the date of this Agreement, Mr. STEFFENS agrees to provide a letter of resignation as to his position as an officer or director of ARDEN and its subsidiaries and affiliates. 

 

Article 16

This Agreement is exclusively governed by and construed in accordance with Swiss substantive law.  This Agreement represents the entire agreement of the parties with respect to the subject matter hereof and supersedes any prior agreements, whether orally or in writing, between the parties, and any prior agreements will be of no further force and effect. 

The sole place of jurisdiction shall be Geneva, Switzerland.

 

 

	
Place:   Geneva
	 	
Place:   Geneva

	 	 	 
	
Date:     November 4, 2008
	 	
Date:     November 5, 2008

	 	 	 

	
ELIZABETH ARDEN INTERNATIONAL Sàrl
	 	
Jacobus A.J. STEFFENS

	 	 	 
	
By:
	 	
/s/ Marie Anne Morgan
	 	
/s/ Jacobus A.J. Steffens

	
Name:
	 	
Marie Anne Morgan
	 	 	 	 
	
Title:
	 	
VP Human Resources Int'l
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
By:
	 	
/s/ David Smith
	 	 	 	 
	
Name:
	 	
David Smith
	 	 	 	 
	
Its:
	 	
International Controller

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