Document:

Exhibit 10.32

 

AUXILIUM PHARMACEUTICALS, INC.

2004 EQUITY COMPENSATION PLAN

 

RESTRICTED STOCK GRANT AGREEMENT

 

Auxilium Pharmaceuticals, Inc. (the “Company”) has granted you restricted stock under the Auxilium Pharmaceuticals, Inc. 2004 Equity Compensation Plan, as amended (the “Plan”).  The terms of the grant are set forth in this Summary of Grant, the Restricted Stock Grant Agreement (the “Agreement”) attached hereto and the Plan.  You should read this Summary of Grant, the Agreement, and the Plan, to fully understand the grant.

 

SUMMARY OF GRANT

 

	
Grantee:
    	
 
    	
[                        ]
    
	
 
    	
 
    	
 
    
	
Date   of Grant:
    	
 
    	
[                        ]
    
	
 
    	
 
    	
 
    
	
Number   of Shares
    	
 
    	
 
    
	
Subject   to Grant*:
    	
 
    	
[                ] shares of   Restricted Stock
    
	
 
    	
 
    	
 
    
	
Vesting   Schedule:
    	
 
    	
The   shares of Restricted Stock set forth above shall become vested, and the   restrictions shall lapse, as follows: (i) 331/3% on the first anniversary   of the Date of Grant, (ii) 331/3% on the second   anniversary of the Date of Grant, and (iii) 331/3% on the third anniversary   of the Date of Grant (each a “Vesting Date”); provided that, the Grantee   continues to be employed by, or provide service, to the Employer (as defined   in the Plan) from the Date of Grant until the applicable Vesting Date (the   foregoing schedule is referred to as the “Vesting Schedule”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If   the foregoing Vesting Schedule would result in the Grantee vesting in a   fractional share of Restricted Stock, the number of shares in which the   Grantee becomes vested shall be rounded down to the nearest whole share of   Restricted Stock.
    

 

*                                         The Grantee must be employed by, or providing service to, the Employer (as defined in the Plan) on the applicable Vesting Date. Section 2.2(b)(iii) of the Employment Agreement (as defined in this Grant) provides for accelerated vesting and shall apply to this Grant.

 

 

Grantee Acceptance:

 

By signing the acknowledgement below, the Grantee agrees to be bound by the terms and conditions of the Plan, the Restricted Stock Agreement and this Summary of Grant and accepts the shares of Restricted Stock in accordance with the terms of this Summary of Grant, the Restricted Stock Agreement and the Plan.  The Grantee will accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, this Summary of Grant or the Restricted Stock Grant Agreement.

 

The Grantee acknowledges that the Plan and the Plan prospectus are available on our intranet under “Human Resources” at [                      ]; provided that paper copies of the Plan and the Plan prospectus are available upon request by contacting Human Resources Department at [                          ] (      )       -        ).

 

	
 
    	
Agreed and accepted:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Grantee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date
    

 

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AUXILIUM PHARMACEUTICALS, INC.

2004 EQUITY COMPENSATION PLAN

 

RESTRICTED STOCK GRANT

 

This RESTRICTED STOCK GRANT AGREEMENT (this “Agreement”), dated as of [                          ], 20     (the “Date of Grant”), is delivered by Auxilium Pharmaceuticals, Inc. (the “Company”), to [                                    ] (the “Grantee”).

 

RECITALS

 

A.                                    The Auxilium Pharmaceuticals, Inc. 2004 Equity Compensation Plan, as amended (the “Plan”), provides for the grant of restricted stock in accordance with the terms and conditions of the Plan.

 

B.                                    The Compensation Committee of the Board of Directors of the Company (the “Committee”) has decided to make a restricted stock grant as an inducement for the Grantee to promote the best interests of the Company and its stockholders.

 

C.                                    The Plan and the Plan prospectus are available on our intranet under “Human Resources” at [                                    ]; provided that paper copies of the Plan and the Plan prospectus are available upon request by contacting Human Resources Department at [                            ] (      )       -        ).

 

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as follows:

 

1.                                      Restricted Stock Grant.  Subject to the terms, restrictions and conditions set forth in the Summary of Grant, this Agreement and the Plan, the Company hereby grants to the Grantee shares of Company Stock in the amount and on the terms set forth in the Summary of Grant, subject to the restrictions set forth below, in the Summary of Grant, and in the Plan (the “Restricted Stock”).  Shares of Restricted Stock may not be transferred by the Grantee or subjected to any security interest until the shares have become vested pursuant to this Agreement and the Plan.

 

2.                                      Vesting and Nonassignability of Restricted Stock.

 

(a)                                 The shares of Restricted Stock shall become vested, and the restrictions described in Sections 2(b) and 2(c) shall lapse, upon the Grantee’s satisfaction of the requirements of the Vesting Schedule set forth in the Summary of Grant.  The Restricted Stock may accelerate in vesting in accordance with Section 2.2(b)(iii) of the Grantee’s employment agreement with the Company, dated February 3, 2012 (the “Employment Agreement”).

 

(b)                                 If the Grantee ceases to be employed by, or provide service to, the Employer for any reason before the Restricted Stock fully vests, the shares of Restricted Stock that are not then vested shall be forfeited and must be immediately returned to the Company.

 

 

(c)                                  During the period before the shares of Restricted Stock vest (the “Restriction Period”), the non-vested Restricted Stock may not be assigned, transferred, pledged or otherwise disposed of by the Grantee.  Any attempt to assign, transfer, pledge or otherwise dispose of the shares contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the shares, shall be null, void and without effect.

 

3.                                      Issuance of Certificates.

 

(a)                                 Stock certificates representing the Restricted Stock may be issued by the Company and held in escrow by the Company until the Restricted Stock vests, or the Company may hold non-certificated shares until the Restricted Stock vests.  During the Restriction Period, the Grantee shall receive any cash dividends with respect to the shares of Restricted Stock, may vote the shares of Restricted Stock and may participate in any distribution pursuant to a plan of dissolution or complete liquidation of the Company.  In the event of a dividend or distribution payable in stock or other property or a reclassification, split up or similar event during the Restriction Period, the shares or other property issued or declared with respect to the non-vested shares of Restricted Stock shall be subject to the same terms and conditions relating to vesting as the shares to which they relate.

 

(b)                                 When the Grantee obtains a vested right to shares of Restricted Stock, a certificate representing the vested shares shall be issued to the Grantee, free of the restrictions under Section 2 of this Agreement.

 

(c)                                  The obligation of the Company to deliver shares upon the vesting of the Restricted Stock shall be subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriately to comply with relevant securities laws and regulations.

 

4.                                      Change of Control.  The provisions of the Plan applicable to a Change of Control (as defined in the Plan) shall apply to the Restricted Stock, and, in the event of a Change of Control, the Board may take such actions as it deems appropriate pursuant to the Plan.

 

5.                                      Grant Subject to Plan Provisions.  This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan.  The grant is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Board in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the registration, qualification or listing of the shares, (c) changes in capitalization of the Company, and (d) other requirements of applicable law.  The Board shall have the authority to interpret and construe the grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

 

6.                                      Withholding.  The Grantee shall be required to pay to the Company, or make other arrangements satisfactory to the Company to provide for the payment of, any federal, state, local or other taxes that the Employer is required to withhold with respect to the grant or vesting of the Restricted Stock.  Subject to Board approval, the Grantee may elect to satisfy any tax withholding obligation of the Employer with respect to the Restricted Stock by having shares

 

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withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and other tax liabilities.

 

7.                                      Section 83(b) Election.  The Grantee hereby acknowledges that the Grantee has been informed that, with respect to the Restricted Stock, the Grantee may file an election with the Internal Revenue Service, within 30 days of the execution of this Agreement, electing pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, (the “Code”) to be taxed currently on any difference between the purchase price of the Restricted Stock and their fair market value on the date of purchase.  Absent such an election, taxable income will be measured and recognized by the Grantee at the time or times at which the forfeiture restrictions on the Restricted Stock lapse.  The Grantee is strongly encouraged to seek the advice of his own tax consultants in connection with the issuance of the Restricted Stock and the advisability of filing of the election under Section 83(b) of the Code.  A form of Election under Section 83(b) is attached hereto as Exhibit A for reference.

 

THE GRANTEE ACKNOWLEDGES THAT IT IS NOT THE COMPANY’S, BUT RATHER THE GRANTEE’S SOLE RESPONSIBILITY TO FILE THE ELECTION UNDER SECTION 83(b) TIMELY.

 

8.                                      No Employment or Other Rights.  This grant shall not confer upon the Grantee any right to be retained by or in the employ or service of the Employer and shall not interfere in any way with the right of the Employer to terminate the Grantee’s employment or service at any time. The right of the Employer to terminate at will the Grantee’s employment or service at any time for any reason is specifically reserved.

 

9.                                      Assignment by Company.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates.  This Agreement may be assigned by the Company without the Grantee’s consent.

 

10.                               Applicable Law.  The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions thereof.

 

11.                               Notice.  Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the President at the corporate headquarters of the Company, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Employer, or to such other address as the Grantee may designate to the Employer in writing.  Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and attest this instrument, and the Grantee has placed his or her signature hereon, effective as of the Date of Grant.

 

 

	
 
    	
AUXILIUM   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

I hereby accept the grant of Restricted Stock described in this Agreement, and I agree to be bound by the terms of the Plan and this Agreement.  I hereby further agree that all of the decisions and determinations of the Board shall be final and binding.

 

	
 
    	
Grantee:
    	
 
    

 

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ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED

 

The undersigned taxpayer hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder (the “Regulations”), and in connection with this election supplies the following information:

 

(1)                                 Name of taxpayer making election:                                             

Address:                                                                                       

Social Security Number:                                                              

Tax Year for which election is being made:                                 

 

(2)                                 The property with respect to which the election is being made consists of            shares of common stock of Auxilium Pharmaceuticals, Inc. (the “Company”).

 

(3)                                 Date the property was transferred:                                  (the “Date of Grant”).

 

(4)                                 The stock is subject to forfeiture to the Company if the taxpayer ceases to be employed by, or provide service to, the Company during the restriction period.  The restriction period lapses according to the following schedule, if the taxpayer is employed by, or providing service to, the Company from the Date of Grant until the applicable vesting date:

 

	
 
    	
Vesting Date
    	
 
    	
Shares Vested on Vesting Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

(5)                                 The fair market value at the time of the transfer of the stock (determined without regard to any restriction other than a restriction which by its terms will never lapse) is $         per share.

 

(6)                                 The amount paid for the stock is $       per share ($        aggregate consideration).

 

(7)                                 A copy of this statement has been furnished to the Company (and to the transferee of the Stock, if different from the taxpayer) as required by §1.83-2(d) of the Regulations.

 

(8)                                 This statement is executed as of                      .

 

	
 
    	
 
    
	
Taxpayer
    	
 
    

 

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INSTRUCTIONS FOR FILING SECTION 83(B) ELECTION

 

Attached is a form of election under section 83(b) of the Internal Revenue Code.  If you wish to make such an election, you should complete, sign and date the election and then proceed as follows:

 

1.  Execute three counterparts of your completed election (plus one extra counterpart for each person other than you, if any who receives property that is the subject of your election), retaining at least one photocopy for your records.

 

2.  Send one counterpart to the Internal Revenue Service Center with which you will file your Federal income tax return for the current year (e.g., Kansas City, Missouri for Pennsylvania residents) via certified mail, return receipt requested.  THE ELECTION SHOULD BE SENT IMMEDIATELY, AS YOU ONLY HAVE 30 DAYS FROM THE ISSUANCE/PURCHASE/GRANT DATE WITHIN WHICH TO MAKE THE ELECTION — NO WAIVERS, LATE FILINGS OR EXTENSIONS ARE PERMITTED.

 

3.  Deliver one counterpart of the completed election to the Company for its files.

 

4.  If anyone other than you (e.g., one of your family members) will receive property that is the subject of your election, deliver one counterpart of the completed election to each such person.

 

5.  Attach one counterpart of the completed election to your Federal income tax return for this year when you file that return next year.

 

6Exhibit 10.34

 

AUXILIUM PHARMACEUTICALS, INC.

2004 EQUITY COMPENSATION PLAN

2012 PERFORMANCE SHARE AWARD

 

RESTRICTED STOCK UNIT GRANT AGREEMENT

 

Auxilium Pharmaceuticals, Inc. (the “Company”) has granted you a 2012 Performance Share Award in the form of a restricted stock unit grant under the Auxilium Pharmaceuticals, Inc. 2004 Equity Compensation Plan, as amended (the “Plan”).  The terms of the grant are set forth in this Summary of Grant, the Restricted Stock Unit Grant Agreement (the “Agreement”) attached hereto and the Plan.  You should read this Summary of Grant, the Agreement, and the Plan, to fully understand the grant.

 

SUMMARY OF GRANT

 

	
Grantee:
    	
 
    	
[insert   name]
    
	
 
    	
 
    	
 
    
	
Date   of Grant:
    	
 
    	
[                      ], 20
    
	
 
    	
 
    	
 
    
	
Target   Number of Shares
    	
 
    	
 
    
	
 
    	
 
    	
Subject   to Grant*:  This grant   represents the right to receive  a target of   [          ] shares of   Company Stock (as defined in the Plan) upon the achievement of the   Performance Goals (as defined below) described below. The actual number of   shares of Company Stock earned may be greater or less than the target number   of shares set forth in the preceding sentence, or even zero, and will be   based on the actual performance level achieved by the Company with respect to   the Performance Goals set forth below.
    
	
 
    	
 
    	
 
    
	
Performance   Period:
    	
 
    	
[                                          ] (the   “Performance Period”).
    
	
 
    	
 
    	
 
    
	
Performance   Goals:
    	
 
    	
PERFORMANCE   GOAL:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
                   shares   shall be earned by the Grantee, subject to the Vesting Schedule set forth   below, upon the earliest to occur of (i) a final determination by the   Compensation Committee of the Board of Directors of the Company (the   “Committee”) that the Company has achieved U.S. net revenues for XIAFLEX,   exclusive of revenue from Pfizer, Inc., for the Performance Period of   [                ]   (the “XIAFLEX Performance Goal”) (ii) a Change of Control (as defined in   the Plan) is consummated before the final determination in (i) above is   made by the Committee and the Committee determines that it is reasonably   likely that the XIAFLEX Performance Goal would have been
    

 

 

	
 
    	
 
    	
achieved   for the Performance Period if not for the Change of Control, or   (iii) such other vesting event provided for in the written employment   agreement by and between the Grantee and the Company; provided that,   notwithstanding any provision of the Grantee’s employment agreement to the   contrary, vesting shall only occur with respect to this award if the Grantee   continues to be employed by, or provide service to, the Employer through the   end of the Performance Period and the XIAFLEX Performance Goal has been met   in accordance with the terms and conditions set forth herein.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
                 shares shall be earned if the Company has achieved U.S. net revenues for   XIAFLEX, exclusive of revenue from Pfizer, Inc., for the Performance   Period of at least   [                ]   but less than   [                ].
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   the foregoing, if the Company has achieved U.S. net revenues for XIAFLEX,   exclusive of revenue from Pfizer, Inc., for the Performance Period of
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(A) at   least   [                ]   but less than   [                ],   the number of shares of Company Stock the Grantee will earn between              shares and                            shares.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(B) at   least   [                ]   but less than   [                ],   the Grantee will earn between              shares and              shares.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(C) [                ]   or more, the Grantee will earn              shares.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   actual number of shares of Company Stock earned upon achievement of the   XIAFLEX Performance Goal will be based on the actual performance level   achieved at or between each level of net revenues set forth above and, except   with respect to performance between   [                ]   and   [                ],   will be interpolated on a straight line basis for pro-rata achievement of the   XIAFLEX Performance Goal, rounded down to the nearest whole number; provided   that if the actual performance level achieved does not meet threshold   performance (i.e., less than   [                ]   in net revenues), then no shares will be earned with respect to the XIAFLEX   Performance Goal.
    

 

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PEYRONIE’S   PERFORMANCE GOAL:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
              shares  shall be earned by the Grantee, subject to the Vesting Schedule   set forth below upon the filing of the Peyronie’s sBLA filing   [                ];   provided that the Grantee continues to be employed by, or provide service to,   the Employer through the end of the Performance Period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
              shares   shall be earned by the Grantee, subject to the Vesting Schedule set forth   below, upon the filing of the Peyronie’s sBLA filing   [                ];   provided that the Grantee continues to be employed by, or provide service to,   the Employer through the end of the Performance Period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
              shares   shall be earned by the Grantee, subject to the vesting schedule set forth   below, upon the filing of the Peyronie’s sBLA filing   [                ];   provided that the Grantee continues to be employed by, or provide service to,   the Employer through the end of the Performance Period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If   the Peyronie’s sBLA filing is filed   [                ],   no portion of the target number of shares attributable to the Peyronie’s sBLA   filing will be earned by the Grantee.
    
	
 
    	
 
    	
 
    
	
Vesting   Schedule:
    	
 
    	
Provided   that the Grantee continues to be employed by, or provide service to, the   Employer through the end of the Performance Period and all or a part of the   Performance Goals are achieved as set forth above (as certified by the Committee),   the Grantee shall become vested in the right to receive the shares of Company   Stock earned upon achievement of the Performance Goals set forth above (as   certified by the Committee) as follows: (i) 33% on the date the   Performance Goals are certified by the Committee as achieved, (ii) 33%   on the first anniversary of the date on which the Committee certified that   the Performance Goals were achieved, and (iii) 34% on the second   anniversary of the date on which the Committee certified that the Performance   Goals were achieved (each a “Vesting Date”); provided that, the Grantee   continues to be employed by, or provide service, to the Employer from the   Date of Grant until the applicable Vesting Date, on the date the Change of   Control is consummated, or such other vesting event provided for in the   written employment agreement by and between the Grantee and the Company, as   applicable (the foregoing schedule is referred to as the “Vesting Schedule”);   provided that, notwithstanding any provision
    

 

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of   the Grantee’s employment agreement to the contrary, vesting shall only occur   with respect to this award if the Grantee continues to be employed by, or   provide service to, the Employer through the end of the Performance Period   and all or a part of the Performance Goals have been met in accordance with   the terms and conditions set forth herein.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If   the foregoing Vesting Schedule would result in the Grantee vesting in the   right to receive a fractional share of Company Stock, the number of shares in   which the Grantee becomes vested in the right to receive shall be rounded   down to the nearest whole share of Company Stock.
    
	
 
    	
 
    	
 
    
	
Issuance   Schedule:
    	
 
    	
One   share of Company Stock shall be issued to the Grantee for each share of   Company Stock that the Grantee earns upon attainment of the Performance Goals   and vests in the right to receive pursuant to the Vesting Schedule, within   thirty (30) days following the applicable Vesting Date.
    

 

*           The Grantee must be employed by, or providing service to, the Employer (as defined in the Plan) through the end of the Performance Period, or on the date the Change of Control is consummated, as applicable.

 

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Grantee Acceptance:

 

By signing the acknowledgement below, the Grantee agrees to be bound by the terms and conditions of the Plan, the Restricted Stock Unit Agreement and this Summary of Grant and accepts the right to receive shares of Company Stock following the date of the Company’s certification to the Grantee of the award of the shares of Company Stock and satisfaction of the Vesting Schedule in accordance with the terms of this Summary of Grant, the Restricted Stock Unit Agreement and the Plan.  The Grantee will accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, this Summary of Grant or the Restricted Stock Unit Grant Agreement.

 

The Grantee acknowledges that the Plan and the Plan prospectus are available on our intranet under “Human Resources” at [                ]; provided that paper copies of the Plan and the Plan prospectus are available upon request by contacting Human Resources Department at [                ] or [                ].

 

	
 
    	
Agreed and accepted:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Grantee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date
    

 

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AUXILIUM PHARMACEUTICALS, INC.

 

2004 EQUITY COMPENSATION PLAN

 

RESTRICTED STOCK UNIT GRANT AGREEMENT

 

This RESTRICTED STOCK UNIT GRANT AGREEMENT (this “Agreement”) dated as of the Date of Grant set forth in the Summary of Grant is delivered by Auxilium Pharmaceuticals, Inc. (the “Company”) to the individual named in the Summary of Grant (the “Grantee”).

 

RECITALS

 

A.                                    The Auxilium Pharmaceuticals, Inc. 2004 Equity Compensation Plan, as amended (the “Plan”), provides for the grant of restricted stock units in accordance with the terms and conditions of the Plan.

 

B.                                    The Compensation Committee of the Board of Directors of the Company (the “Committee”) has decided to make a restricted stock unit grant as an inducement for the Grantee to promote the best interests of the Company and its stockholders.

 

C.                                    The Plan and the Plan prospectus are available on our intranet under “Human Resources” at [                ]; provided that paper copies of the Plan and the Plan prospectus are available upon request by contacting Human Resources Department at [                ] or [                ].

 

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as follows:

 

1.                                      Restricted Stock Unit Grant.

 

(a)                                 Subject to the terms, restrictions and conditions set forth in the Summary of Grant, this Agreement and the Plan, the Company hereby grants to the Grantee the right to receive the shares of Company Stock in the amount and on the terms set forth in the Summary of Grant upon achievement of the Performance Goals as set forth in the Summary of Grant and satisfaction of the requirements of the Vesting Schedule set forth in the Summary of Grant.  No shares of Company Stock shall be issued to the Grantee on the Date of Grant.

 

(b)                                 The Committee shall, as soon as practicable following the last day of the Performance Period, certify (i) the extent, if any, to which, the Performance Goals has been achieved with respect to the Performance Period and (ii) the number of shares of Company Stock, if any, earned upon attainment of the Performance Goals.  Such certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum extent permitted by law. In the event that the Committee makes a final determination that the Performance Goals have not been achieved, the Grantee shall have no further rights to receive shares of Company Stock hereunder.

 

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2.                                      Stockholder Rights.  Prior to the issuance, if any, of shares of Company Stock pursuant to the terms of the Summary of Grant, this Agreement and the Plan, the Grantee shall not (a) have any of the rights or privileges of, a stockholder of the Company; (b) have the right to receive any dividends or other distributions; and (c) have any interest in any fund or specific assets of the Company by reason of this Agreement.

 

3.                                      Vesting.

 

(a)                                 The shares of Company Stock subject to this Agreement will become earned based on the actual level performance achieved with respect to the Performance Goals for the Performance Period on the terms set forth in the Summary of Grant and as determined by the Committee and provided that the Grantee satisfies the requirements of the Vesting Schedule set forth in the Summary of Grant.

 

(b)                                 If the Grantee ceases to be employed by, or provide service to, the Employer for any reason prior to the applicable Vesting Date, the Grantee shall forfeit all rights to receive shares of Company Stock hereunder and the Grantee will not have any rights with respect to any portion of the shares of Company Stock that have not yet become vested as of the date of the Grantee ceases to be employed by, or provide service to, the Employer, irrespective of the level of achievement of the Performance Goals.

 

4.                                      Issuance.

 

(a)                                 Shares of Company Stock equal to the number of shares of Company Stock that the Grantee earns upon achievement of the Performance Goals and becomes vested in the right to receive in accordance with the Vesting Schedule, in each case, as set forth in the Summary of Grant shall be issued to the Grantee as set forth in the Summary of Grant and a certificate representing the Company Stock shall be issued to the Grantee, free of the restrictions under Section 5 of this Agreement.

 

(b)                                 The obligation of the Company to deliver the Company Stock to the Grantee following the applicable Vesting Date shall be subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate to comply with relevant securities laws and regulations.

 

5.                                      Nonassignability of Company Stock.  During the period prior to the certification of the Performance Goals and prior to the Vesting Date, the right to receive shares of Company Stock may not be assigned, transferred, pledged or otherwise disposed of by the Grantee, except as permitted under the Plan or by the Committee.  Any attempt to assign, transfer, pledge or otherwise dispose of the right to receive shares of Company Stock contrary to the provisions the Summary of Grant, this Agreement and the Plan, and the levy of any execution, attachment or similar process upon the right to receive the shares, shall be null, void and without effect.

 

6.                                      Change of Control.  Except as provided in the Summary of Grant, the provisions of the Plan applicable to a Change of Control shall apply to the right to receive the Company Stock issuable upon attainment of the Performance Goals and satisfaction of the Vesting Schedule set forth in the Summary of Grant, and, in the event of a Change of Control, the Committee may take such actions as it deems appropriate pursuant to the Plan.

 

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7.                                      Grant Subject to Plan Provisions.  This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan.  This grant is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the registration, qualification or listing of the shares, (c) changes in capitalization of the Company and (d) other requirements of applicable law.  The Committee shall have the authority to interpret and construe this grant pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

 

8.                                      Withholding.  The Employer may require that the Grantee pay to the Employer, or make other arrangements satisfactory to the Company to provide for the payment of, any federal, state, local or other taxes that the Employer is required to withhold with respect to the grant or vesting of this grant, or the Employer may deduct from other wages paid by the Employer the amount of any withholding taxes due with respect to this grant.  Subject to Committee approval, the Grantee may elect to satisfy any tax withholding obligation of the Employer with respect to this grant by having shares withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and other tax liabilities.

 

9.                                      No Employment or Other Rights.  This grant shall not confer upon the Grantee any right to be retained by or in the employ or service of the Employer and shall not interfere in any way with the right of the Employer to terminate the Grantee’s employment or service at any time.  The right of the Employer to terminate at will the Grantee’s employment or service at any time for any reason is specifically reserved.

 

10.                               Recoupment Policy.  The Grantee agrees that the Grantee will be subject to any compensation, clawback and recoupment policies that may be applicable to the Grantee as an employee of the Employer, as in effect from time to time and as approved by the Board of Directors or a duly authorized committee thereof, whether or not approved before or after the Date of Grant.

 

11.                               Assignment by Company.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates.  This Agreement may be assigned by the Company without the Grantee’s consent.

 

12.                               Applicable Law.  The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the conflicts of laws provisions thereof.

 

13.                               Notice.  Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the President at the corporate headquarters of the Company, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Employer, or to such other address as the Grantee may designate to the Employer in writing.  Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

 

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14.                               Application of Section 409A of the Internal Revenue Code.  This Agreement, including the right to receive Company Stock upon achievement of the Performance Goals and satisfaction of the Vesting Schedule, is intended to be exempt from the requirements of section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to the short-term deferral exemption thereunder, and this Agreement, including the right to receive Company Stock upon the achievement of the Performance Goals and satisfaction of the Vesting Schedule, shall be interpreted on a basis consistent with such intent.

 

Notwithstanding any provision in this Agreement to the contrary, if the Grantee is a “specified employee” (as defined in section 409A of the Code) and it is necessary to postpone the commencement of any payments otherwise payable under this Agreement to prevent any accelerated or additional tax under section 409A of the Code, then the Company will postpone the payment until five (5) days after the end of the six-month period following the original payment date.  If the Grantee dies during the postponement period prior to the payment of postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of the Grantee’s estate within sixty (60) days after the date of the Grantee’s death.  The determination of who is a specified employee, including the number and identity of persons considered specified employees and the identification date, shall be made by the Committee in accordance with the provisions of sections 416(i) and 409A of the Code.

 

In no event shall the Grantee, directly or indirectly, designate the calendar year of payment.  This Agreement may be amended without the consent of the Grantee in any respect deemed by the Committee to be necessary in order to preserve compliance with section 409A of the Code or other applicable law.

 

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