Document:

ex10_3.htm

Exhibit 10.3

 

PDL BIOPHARMA, INC.

2012 Long-Term Incentive Plan

 

This 2012 Long-Term Incentive Plan (the “Plan”) is intended to enhance stockholder value by promoting a connection between the performance of PDL BioPharma, Inc. (the “Company”) and the compensation of personnel of the Company and retaining high performing personnel.  This Plan is envisioned to be the first long-term incentive plan in a series of long-term incentive plans, each plan overlapping the previous plan and having a subsequent vesting date to provide maximum continuity and retention effects.  The Plan will be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”).  The Committee shall have all powers and discretion necessary to administer the Plan and to control its operation, and may delegate any and all such powers and discretion to any officer of the Company.  The Plan is effective as of January 1, 2011 (the “Effective Date”), and will fully vest on December 31, 2012 (the “Vesting Period”).  The Plan will terminate when all payments and benefits under the Plan have been made.

1. Eligibility

 

The employees of the Company set forth in Exhibit A (each, a “Participant”) are eligible to receive a long-term incentive for the period ending December 31, 2012, according to this Plan.  To be eligible, a Participant must be employed by the Company as of December 31, 2012, or otherwise eligible because of separation from the Company entitling such Participant to acceleration, vesting and payment of the Plan under any outstanding severance agreement.

 

2. Incentive

 

The long-term incentive shall consist of (i) a target cash payment, as increased by the Adjustments in Section 3, and (ii) a grant of restricted stock pursuant to the Company’s 2005 Equity Incentive Plan.  All incentives shall vest and pay on December 31, 2012, subject to compliance with Section 409A of the Internal Revenue Code and except as accelerated by a Change in Control.

 

Each Participant’s incentive as of the Effective Date is set forth in Exhibit A.

 

3. Adjustments

 

The cash component of each Participant’s incentive may be increased based on Company performance.  If any of the performance goals set forth in Exhibit B are achieved on or before December 31, 2012, the Participant may receive an additional cash payment equal to a percentage of the Participant’s target cash payment (the “Adjustment”).  The amount of the Adjustment and the achievement of each performance goal will be determined by the Committee in its sole discretion, provided that the aggregate maximum cash payment that any Participant may receive under the Plan may not exceed two times his or her target cash payment.

 

 

  

  

  

The following examples demonstrate the calculation of the Adjustments.  If, at December 31, 2012, Mr. McLaughlin remains employed by the Company and the Company has successfully protected its European Union Queen et al. patent rights and completed its recapitalization, then Mr. McLaughlin’s cash payment will be equal to $703,500 ($469,000 (employment through December 31, 2012) + $187,600 (EU intellectual property) + $46,900 (recapitalization) = $703,500).

 

Alternatively, if, at December 31, 2012, Mr. McLaughlin remains employed by the Company and the Company successfully achieved maximum performance of all of the performance goals on or before December 31, 2012, then, while the cash payment would be equal to $1,172,500 ($469,000 (employment through December 31, 2012) + $187,600 (EU intellectual property) + $234,500 (merger) + $46,900 (recapitalization) + $234,500 (royalty rights) = $1,172,500), the maximum cash payment would be limited to two times the target cash amount or $938,000 (two times his target cash payment of $469,000).

 

4. Restricted Stock

 

The restricted stock award will fully vest on December 31, 2012, provided the Participant remains employed by the Company through such date.  Dividend payments and other distributions made on the restricted stock during the Vesting Period will accrue through the Vesting Period and will be paid, plus interest (based on the prevailing interest rate of the Merrill Lynch FFI Select Institutional Fund), to the Participant upon vesting of the restricted stock award.  For avoidance of doubt, the dividend payment made by the Company on March 15, 2011, shall be included in the amounts accruing and shall be based on the number of shares set forth in Exhibit A.  The number of shares underlying the restricted stock award shall be determined based on the closing price of the Company’s common stock on May 23, 2011.

 

5. Change in Control

 

Notwithstanding the foregoing, in the event of a Change in Control, (i) the vesting of the restricted stock award, (ii) the payment of any accrued but unpaid dividends or other distributions, plus interest (at the rate set forth above), and (iii) the payment of the target cash payment, plus any Adjustments that the Committee determines has been earned as of the Change in Control, will accelerate and pay in connection with the Change in Control.

 

For purposes of this Plan, “Change in Control” shall be deemed to have occurred as of the first day after the Effective Date that any one or more of the following conditions is satisfied:

 

(a)           any “person” (as such term is used to Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of (i) the outstanding shares of common stock of the Company or (ii) the combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of directors; or

 

 

  

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(b)           the Company (i) is party to a merger, consolidation or exchange of securities which results in the holders of voting securities of the Company outstanding immediately prior thereto failing to continue to hold at least 50% of the combined voting power of the voting securities of the Company, the surviving entity or a parent of the surviving entity outstanding immediately after such merger, consolidation or exchange, or (ii) sells or disposes of all or substantially all of the Company’s assets (or any transaction or combination of transactions having similar effect is consummated), or (iii) the individuals constituting the Board of Directors immediately prior to such merger, consolidation, exchange, sale or disposition shall cease to constitute at least 50% of the Board of Directors, unless the election of each director who was not a director prior to such merger, consolidation, exchange, sale or disposition was approved by a vote of at least two-thirds of the directors then in office who were directors prior to such merger, consolidation, exchange, sale or disposition.

 

Notwithstanding the foregoing, a transaction will not be considered a Change in Control unless the transaction qualifies as a “change in control” as defined in Treasury Regulation Section 1.409A-3(i)(5)(i).

 

6. 409A

 

This Plan 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 of Code Section 409A, so that none of the payments or benefits under this Plan, or shares of Company common stock issuable pursuant to this Plan, will be subject to the additional tax, penalties or other sanctions imposed under Code Section 409A and this Plan shall in all respects be administered, and any ambiguities herein will be interpreted, to be so exempt.  For purposes of Code Section 409A, each payment under this Plan shall be treated as a separate payment. In no event may a Participant, directly or indirectly, designate the calendar year of any payment to be made under this Plan.

 

7. Miscellaneous

 

The Company shall withhold all applicable taxes from any payment paid or benefit provided under the Plan, including any federal, state and local taxes.

 

Nothing in this Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. Nothing in this Plan should be construed as an employment agreement or create any entitlement to any Participant for any incentive payment or benefit hereunder.

 

This Plan and all awards shall be construed in accordance with and governed by the laws of the State of Nevada, without regard to its conflict of law provisions.

 

Payments under this Plan shall be unsecured, unfunded obligations of the Company.  To the extent a Participant has any rights under this Plan, the Participant’s rights shall be those of a general unsecured creditor of the Company.

 

 

  

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Exhibit A

Participant Incentive

 

	
Name

	
Title

	 	
Target Cash Payment

	 	 	
Value of Restricted Stock Award

	 	 	
Number of Shares Underlying Restricted Stock Award

	 
	
John P. McLaughlin

	
President and Chief Executive Officer

	 	$	469,000	 	 	$	201,000	 	 	 	30,501	 
	
Christine R. Larson

	
Vice President and Chief Financial Officer

	 	$	281,400	 	 	$	120,600	 	 	 	18,300	 
	
Christopher L. Stone

	
Vice President, General Counsel and Secretary

	 	$	258,000	 	 	$	110,600	 	 	 	16,783	 
	
Caroline Krumel

	
Vice President and Principal Accounting Officer

	 	$	70,400	 	 	$	30,200	 	 	 	4,583	 
	
Danny J Hart, Jr.

	
Associate General Counsel and Assistant Secretary

	 	$	58,600	 	 	$	25,100	 	 	 	3,809	 

 

 

-4-ex10_1.htm

Exhibit 10.1

 

ISO No. _________

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

2010 STOCK OPTION PLAN

INCENTIVE STOCK OPTION AGREEMENT

	
Participant Name:

	
Jim Blankenhorn

	  	
Grant  Date:

	
7/25/2011

	  	  	  	
Vesting Schedule

	  	  	  	
Exercise Dates

	  	
Percent

Exercisable

	
Shares Subject to Option:

	
300,000

	  	
7/25

	  	
33.3% per year

	
Expiration Date:

	
7/25/2017

	  	  	  	  
	
Exercise Price:

	
$1.57

	  	  	  	  

  

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PERMA-FIX ENVIRONMENTAL SERVICES, INC.

2010 STOCK OPTION PLAN

INCENTIVE STOCK OPTION AGREEMENT

  THIS AGREEMENT is made as of the Grant Date set forth on the cover page of this Agreement (the “Cover Page”) between PERMA-FIX ENVIRONMENTAL SERVICES, INC., an Delaware corporation (the “Company”), and the participant named on the Cover Page (the “Participant”).  In consideration of the mutual covenants and conditions herein set forth and for good and valuable consideration, the Company and the Participant agree as follows:

1.           Recitations.  The Participant is an employee of the Company or a Subsidiary, and the Company believes that the Participant should be provided an inducement to continue the Participant’s employment with the Company and to advance the interests of the Company.  Accordingly, the Company desires to provide the Participant with the opportunity to purchase certain shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), pursuant to the Company’s 2010 Stock Option Plan, adopted by the Board of Directors, and approved by the Company’s shareholders on September 29, 2010 (the “Plan”).  A copy of the Plan has been delivered to the Participant, and the capitalized terms in this Agreement have the same meaning as set forth in the Plan, unless otherwise indicated.

2.           Grant of Option.  The Company hereby grants to Participant the option to purchase the shares of Common Stock set forth on the Cover Page (the “Option”).  The purchase price for each share to be purchased under the Option will be the exercise price set forth on the Cover Page (the “Exercise Price”), subject to adjustment as provided in the Plan, which Exercise Price is the Fair Market Value of the shares of Common Stock as of the Grant Date.  The Option is intended to qualify as an “incentive stock option” as such term is defined under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

3.           Vesting of Option.  The Participant may exercise this Option for the shares of Common Stock, which become vested pursuant to this paragraph 3. The Option will vest 33.3% per year, beginning on the first anniversary date of the Grant Date as stated on the Cover Page. If Participant’s employment with the Company or any Subsidiary remains full-time and continuous at all times prior to any Exercise Date set forth on the Cover Page, then the Option will be deemed vested and may be exercised for the purchase of all or part of the cumulative number of shares of Common Stock determined by multiplying the Shares Subject to Option set forth on the Cover Page by the designated percentage set forth on the Cover Page.

4.           Exercise and Payment.  The Option may not be exercised unless the Participant is a full-time employee of the Company or any Subsidiary at all times during the period commencing with the Grant Date and ending on the earlier of (a) the Expiration Date set forth on the Cover Page; (b) 12 months following  the Participant’s termination of employment as a result of a Disability; (c) six months following the Participant’s termination of employment as a result of Retirement; and (d) three months following the Participant’s termination of employment as a result of Voluntary Termination or Layoff.  If the Participant dies prior to the Expiration Date, the Option may be exercised by the personal representative or executor of the Participant’s estate or by a person who acquired the right to exercise by bequest, inheritance or by reason of the Participant’s death, as provided in the Plan.

  

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4.1

	
Notice and Payment.  The Option will be exercised by the Participant giving the Company written notice at the Company’s principal place of business setting forth the exact number of shares that the Participant is purchasing under the Option.  This written notice will be accompanied by the payment to the Company of the full Exercise Price for the number of shares Participant desires to purchase.  The form of written notice is attached as Exhibit “A” to this Agreement.  The Participant agrees to comply with such other reasonable requirements as the Committee may establish.

	
  

	
4.2

	
Method of Payment.  Pay­ment of the Exercise Price may be made by the following:

	
  

	
(a)

	
cash or wire transfer;

	
  

	
(b)

	
certified check or bank check;

	
  

	
(c)

	
other shares of Common Stock owned by the Participant for at least six months prior to the date of exercise, provided such shares have a Fair Market Value on the date of exercise of the Stock Option equal to the aggregate exercise price for the Common Stock being purchased;

	
  

	
(d)

	
by requesting the Company to withhold such number of Shares then issuable upon exercise of the Option that have an aggregate Fair Market Value equal to the exercise price for the Option being exercised; or

	
  

	
(e)

	
by a combination of the methods described above.

No loan or advance will be made by the Company for the purpose of financing the purchase of shares under the Option.

	
  

	
4.3

	
Issuance of Shares.  As soon as practicable after the Company receives notice and payment pursuant to this paragraph 4, the Company will cause one or more certificates for the shares purchased under the Option to be delivered to the Participant or the personal representative of a deceased Participant’s estate. If any law or regulation requires the Company to take any action with respect to the shares specified in such written notice before the issuance thereof, then the date of issuance of such shares will be extended for a period necessary to take such action.

5.           Term of Option.  The Option will terminate and become null and void at the close of business on the Expiration Date.  Notwithstanding anything contained herein to the contrary, the Option may not be exercised after such Expiration Date.

6.           Disqualifying Disposition of Stock.  If the Participant makes a disposition of any shares of Common Stock covered by the Option within one year after the date of exercise of the Option or within two years after the date of grant of the Option, then the Participant will promptly deliver written notice to the President or Chief Financial Officer of the Company specifying (a) the date of such disposition, (b) the number of shares of Common Stock subject to the disposition, and (c) the amount of any consideration received on such disposition.  The Company may make such provision as it deems appropriate for the withholding of any applicable federal, state or local taxes arising as a result of such disposition.  For purposes of this paragraph 6, the term “disposition” has the meaning set forth in Section 424(c) of the Code and the related regulations.

  

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7.           Nontransferability.  The Option may not be transferred except by will or the laws of descent and distribution.  Only the Participant may exercise the Option during the Participant’s lifetime. For purposes of this paragraph 7, the term “transfer” includes without limitation, any disposition, assignment, pledge, or hypothecation, whether by operation of law or otherwise.  The Option will not be subject to execution, attachment, or similar process.  Any attempted assignment, transfer, pledge, hypothecation, or other disposition of the Option contrary to the provisions of this Agreement, and the levy of any execution, attachment or similar process upon the Option, will be null and void and without effect.

8.           Investment Representations.  The Participant hereby represents, warrants, covenants, agrees and acknowledges the following:  The Option will be exercised and shares of Common Stock issued only upon compliance with the Securities Act of 1933, as amended (the “Act”), and any other applicable securities law, or pursuant to an exemption therefrom; the Participant will acquire shares of Common Stock under the Option for investment purposes only and with no present intention to resell or distribute the same; and upon request by the Company, the Participant will execute and deliver to the Company an agreement to the foregoing effect.

9.           Annual Limitation.  To the extent that the aggregate Fair Market Value of the shares of Common Stock with respect to which Incentive Stock Option are exer­cisable for the first time by Participant during any calendar year under all of the Company’s plans exceeds $100,000, such excess Options will be treated as Nonqualified Stock Options under the terms of the Plan.

10.         Rights as a Shareholder.   Participant will have no rights as a shareholder with respect to any shares covered by this Agreement or the Option until the date of issuance of a stock certificate to Participant for such shares.  No adjustment will be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued.

11.         Employment.  As long as the Participant continues to be a full-time and continuous employee of the Company or any Subsidiary, the Option will not be effected by any change of duties or position.  The Committee will determine whether a leave of absence or part-time employment will be considered a termination of employment with the Company or any Subsidiary within the meaning of the Plan.  Nothing in the Plan or in this Agreement will confer upon the Participant any right to continue in the employ of the Company or any Subsidiary or will interfere in any way with the right of the Company or any Subsidiary to terminate the Participant’s employment at any time.

12.         Governing Law; Binding Effect.  This Agreement will be governed by, and construed in accordance with, the laws of the State of Delaware without regard to choice of law provisions.  This Agreement will be binding upon the heirs, executors, administrators, and successors of the parties hereto.

  

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13.         Amendments.  Subject to the terms of the Plan, the Board may amend any of the provisions of the Plan, and may at any time terminate the Plan.  However, no amendment may be made to the Plan, which in any material respect impairs the rights of the Participant under this Agreement without the Participant’s consent.

14.         Incorporation by Reference; Interpretation.  The Option is granted pursuant to the Plan, the terms of which are incorporated herein by reference, and the Option and this Agreement will be interpreted in accordance with the Plan.  The Committee will (a) construe and interpret the terms and provisions of the Plan and this Agreement, and (b) in its discretion make general and special rules and regulations for administering the Plan.  The Committee’s construction, interpretation, rules, and regulations will be binding and conclusive upon all persons granted an Option.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

 

	  	
PERMA-FIX ENVIRONMENTAL SERVICES,

INC, a Delaware corporation

	  	  	  
	  	
By:

	
 

	  	  	
Dr. Louis F. Centofanti

	  	  	
CEO & Chairman of the Board

	  	
(“Participant”)

	  	  
	  	
 

	  	
         (Signature)

	  	  
	  	
 

	  	
         (Please Print Name)

  

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PERMA-FIX ENVIRONMENTAL SERVICES, INC.

2010 STOCK OPTION PLAN

NOTICE OF EXERCISE

OF INCENTIVE STOCK OPTION

Date:  ________________________

Perma-Fix Environmental Services, Inc.

8302 Dunwoody Place #250

Atlanta, GA  30350

Re     ISO No.                                                  , dated,                                              ,20       

 

Dear Sir:

Pursuant to paragraph 4 of the referenced Incentive Stock Option Agreement, the undersigned hereby exercises the related Incentive Stock Option for the purchase of ____________ shares of common stock of Perma-Fix Environmental Services, Inc.

Enclosed is a check in the amount of $____________, which represents the Exercise Price for the number of shares to be purchased.  Please issue in my name one certificate for the shares being purchased and deliver the certificate to me at the address set forth below.

Very truly yours,

	  	  
	
      (Please Sign)

	  

Deliver to:

	  	  
	  	  
	  	  
	
      (Address)

	  

 

Enclosure

 

 

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