Document:

Description of Compensation Payable to Non-Employee Directors

Exhibit
10.3

Description
of Compensation Payable to Non-Employee Directors

Directors
of Express Scripts, Inc. (the “Company”) who are not employees of the Company,
or its subsidiaries, are entitled to receive the following compensation in
respect of their service on the Company’s Board:

	 	
      -
	
      an
      annual retainer of $30,000

	 	
      -
	
      an
      annual retainer of $10,000 for the chair of the Audit Committee and $5,000
      for the Directors who chair the other committees of the
    Board

	 	
      -
	
      a
      meeting fee of $2,000 for each meeting attended in person, and $1,000 for
      each meeting attended telephonically.

	 	
      -
	
      reimbursement
      for out-of-pocket expenses incurred in connection with attending Board and
      Committee meetings

Each
non-employee director also receives an option to purchase 4,500 shares of the
Company’s common stock on the date of the first Board of Directors meeting he or
she attends as a non-employee director, and an option to acquire 6,000 shares of
the Company’s common stock on the date of the Company’s Annual Meeting of
Stockholders thereafter (prorated for Directors who begin service as a
non-employee Director after January 1).

Directors
who are employed by the Company or its subsidiaries do not receive compensation
for serving as directors.Exhibit 10.1

MILESTONE STOCK OPTION AGREEMENT

 

               
THIS AGREEMENT is made as of «Agreement_Date» by and between MINRAD
INTERNATIONAL, INC., a Delaware corporation, (the "Company") and «FirstName»
«LastName» (the "Optionee").

               
WHEREAS, the Company has the adopted MINRAD INTERNATIONAL, INC. 2004 Stock
Option Plan (the "Plan"); and

               
WHEREAS, the Plan provides for grants of new options to persons otherwise
eligible under the Plan; and 

               
WHEREAS, the Company desires to grant to the optionee one or more Qualified
Stock Options under the Plan to acquire up to an aggregate of <<Total
Shares>> shares of common stock of the Company, $.0l par value per share
(the "Shares") on the terms set forth below.

               
NOW, THEREFORE, the parties hereby agree as follows:

1.        Definitions.

               
Capitalized terms not otherwise defined herein shall have the meaning set forth
in the Plan.

2.        Grant of Options

               
Subject to the provisions of Section 4, the Optionee is hereby granted the
following Incentive Stock options (the "Options") to purchase Shares under the
Plan, which grants will become when the respective Milestones and other
conditions of Section 4 are reached or satisfied:

	 	(a)	Option 1 to purchase up to
    ________ Shares;
	 	(b)	Option 2 to purchase up to
    ________ Shares;
	 	(c)	Option 3 to purchase up to
    ________ Shares;
	 	(d)	Option 4 to purchase up to
    ________ Shares; and 
	 	(e)	Option 5 to purchase up to
    ________ Shares.

3.        Option Price.

               
The exercise price of each Option shall be 110% of the price per share of Shares
at close of trading on the date the grant of that Option becomes effective. 

4.        Conditions to Effectiveness
of Option Grants.

	 	(a)	For purposes of this agreement,
    the "Milestones" shall be as follows:
	 	 	 
	 	(i)	In the case of Option 1, the
    Milestone shall be the last day of the first calendar quarter in which the
    Company's reported net sales equal or exceed $5 million.
	 	(ii)	In the case of Option 2, the
    Milestone shall be the last day of the first calendar quarter in which the
    Company's reported net sales equal or exceed $10 million.
	 	(iii)	In the case of Option 3, the
    Milestone shall be the last day of the first calendar quarter in which the
    Company's reported net sales equal or exceed $15 million. 
	 	(iv)	In the case of Option 4, the
    Milestone shall be the day on which the Company achieves cumulative
    aggregate SabreSource sales/placements of 500 units.
	 	(v)	In the case of Option 5, the
    Milestone shall be the date the Company files the NDA for Conscious
    Sedation. 

 

	 	 	 
	 	(b) 	An Option grant will NOT become
    effective when a Milestone is reached unless BOTH:
	 	 	 
	 	(i) 	the Milestone is reached by
    September 30, 2007; and 
	 	(ii)	the Optionee continues to be an
    eligible participant under the Plan at the time the Milestone is reached.

5.        Period of Options.

               
Each Option shall become exercisable with respect to the Shares covered by that
Option when the grant of the Option becomes effective, and, subject to the terms
of this Agreement and the terms of the Plan, the Option will continue to be
exercisable until the earliest of:

	 	(a)	The fifth anniversary of the
    date the Option first becomes exercisable under this Agreement;
	 	 	 
	 	(b)	One (1) month following
    termination of the Optionee's employment with or service to the Company (as
    the case may be) for any reason other than death or permanent and total
    disability within the meaning of Section 22(e)(3) of the Code (or any
    successor provision);
	 	 	 
	 	(c)	One (1) year following
    termination of the Optionee's employment with or service to the Company by
    reason of the Optionee's death or by reason of the Optionee becoming
    permanently and totally disabled within the meaning of Section 22(e)(3) of
    the Code (or any successor provision). In the event of the death of the
    Optionee, the executors, administrators, legatees or distributees of the
    estate of the Optionee, and in the event of the Optionee's permanent and
    total disability (as defined above), the guardian or legal representatives
    of the Optionee, shall have the right to exercise the Options in accordance
    with paragraph 6 hereof. In the event the Options are exercised by the
    executors, administrators, legatees or distributees of the estate of the
    Optionee, or the guardian or legal representative of the Optionee, the
    Company shall be under no obligation to issue shares of Stock hereunder
    unless and until the Company is satisfied that the person (or persons)
    exercising the Options is the duly appointed executor or administrator or
    the proper legatee or distributed of the estate of the Optionee, or duly
    appointed guardian or legal representative of the Optionee, as the case may
    be.

6.        Exercise of Options.

	 	(a)	The Options shall be exercised
    with respect to that portion or all of the Options that shall have become
    exercisable in the following manner. The Optionee shall deliver to the
    Company written notice specifying the number of shares of Stock which the
    Optionee elects to purchase. The Optionee must include with such notice full
    payment of the exercise price for the Stock being purchased pursuant to such
    notice. Payment of the exercise price must be made in cash or in shares of
    Stock having a Fair Market value equal to such Option price or in a
    combination of cash and Stock. In lieu of full payment of the exercise price
    in cash, upon request of the Optionee, the Company may, in its discretion,
    allow Optionee to exercise the Options or a portion thereof through a
    cashless exercise procedure described in the Plan. On exercise of the
    Options, if the Company is required by law to withhold for the payment of
    taxes arising with respect to such exercise, such notice of exercise
    shall also be accompanied by payment in cash or in shares of Stock already
    owned of the amount of any taxes, which are required by law to be so
    withheld.
	 	 	 
	 	(b)	Upon the disposition of shares
    of Stock acquired pursuant to the exercise of the Options, the Company shall
    have the right to require the payment of the amount of any taxes, which are
    required by law to be withheld with respect to such disposition, if any.
	 	 	 
	 	(c)	The Optionee will not be deemed
    to be a holder of any shares of Stock pursuant to exercise of Options until
    the date of the issuance of a stock certificate for such shares and until
    such shares shall have been paid for in full.

7.        Requirements of Law.

               
By accepting the Options, the Optionee represents and agrees for the Optionee
and his or her transferees by will or the laws of descent and distribution that,
unless a registration statement under the Securities Act of 1933, as amended, is
in effect as to Shares purchased upon the exercise of the Options, (a) any and
all Shares so purchased shall be acquired for the Optionee's personal account
and not with a view to or for the sale in connection with any distribution and
(b) any certificate or certificates for Shares purchased upon exercise of the
Options may contain a legend, in form and content acceptable to the Company,
setting forth the restricted nature of such Shares. No certificate or
certificates for Shares purchased upon exercise of the Options shall be issued
and delivered unless and until, in the opinion of legal counsel for the Company,
such Shares may be issued and delivered without causing the Company to be in
violation of or incur any liability under federal, state or other securities law
or any other requirement of law of any regulatory body having jurisdiction over
the Company.

8.        Notices.

               
Any notice to be given hereunder shall be in writing and shall be deemed given
when delivered personally, sent by courier or telecopy or registered or
certified mail, postage prepaid, return receipt requested, addressed to the
party concerned at the address indicated below or to such other address as such
party may subsequently give notice of hereunder in writing:

	 	To Optionee at: 	«Address»
	 	 	«City», «State» «Zip»
	 	 	 
	 	To the Company at: 	MINRAD INTERNATIONAL INC.
	 	 	847 Main Street
	 	 	Buffalo, New York 14203
	 	 	Attention: Rich Tamulski
	 	 	Phone: (716) 855-1068 x202
	 	 	Fax: (716) 855-1078
	 	 	 
	 	With a copy to: 	Hodgson Russ LLP
	 	 	One M&T Plaza, Suite 2000
	 	 	Buffalo, New York 14203
	 	 	Attn: Robert B. Fleming, Jr., Esq.

               
Any notice delivered personally or by courier under this Section shall be deemed
given on the date delivered and any notice sent by telecopy or registered or
certified mail, postage prepaid, return receipt requested, shall be deemed given
on the date telecopied or mailed.

9.        Governing Law.

               
This agreement will be governed by and construed in accordance with the laws of
the State of Delaware, without regard to its conflicts of laws principles.

10.      Construction.

               
This Agreement is made under and subject to the provisions of the Plan, and all
of the provisions of the Plan are hereby incorporated herein as provisions of
this Agreement. If there is a conflict between the provisions of this Agreement
and the provisions of the Plan, the provisions of the Plan will govern. By
signing this Agreement, the Optionee confirms that he has received a copy of the
Plan and has had an opportunity to review the contents thereof.

11.      Counterparts.

               
This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

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

 

MINRAD INTERNATIONAL INC.

By:________________________________

William H Burns, President & CEO

 

OPTIONEE:

 

By:________________________________

«FirstName» «LastName»

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