Document:

exv4w1

 

Exhibit 4.1

FIRST AMENDMENT TO RIGHTS AGREEMENT

     FIRST AMENDMENT (this “Amendment”) dated as of February 21, 2008, to the
RIGHTS AGREEMENT, dated as of January 2, 2002 (the “Rights Agreement”), between
ENCYSIVE PHARMACEUTICALS INC. (formerly TEXAS BIOTECHNOLOGY CORPORATION), a
Delaware corporation (the “Company”), and THE BANK OF NEW YORK, a New York
corporation (the “Rights Agent”).

RECITALS

          WHEREAS, the Company and the Rights Agent have heretofore executed and entered into the Rights
Agreement (capitalized terms used herein but not defined herein shall have the meanings given to
such terms in the Rights Agreement);

          WHEREAS, pursuant to Section 27 of the Rights Agreement, for as long as the Rights are
redeemable, the Company may in its sole and absolute discretion, and the Rights Agent shall, if the
Company so directs, supplement or amend any provision of the Rights Agreement without the approval
of any holders of the Rights;

          WHEREAS, the Company desires to amend the Rights Agreement to render the Rights inapplicable
to the Offer and the Merger (each as defined in the Merger Agreement (as defined below)) and the
other transactions contemplated by the Merger Agreement; and

          WHEREAS, the Board of Directors has determined that it is in the best interests of the Company
and its stockholders to amend the Rights Agreement as set forth below.

AGREEMENT

          NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and
other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, hereby amend the Rights Agreement
as follows:

          Section 1. Amendments.

          (a) Amendment to Section 1(a). The following text is added at the end of the
definition of “Acquiring Person” in Section 1(a) of the Rights Agreement:

“Notwithstanding the foregoing or anything in this Agreement to the
contrary, none of Parent or Purchaser shall be deemed to be an Acquiring
Person, either individually or collectively, by virtue of (i) the approval,
execution or delivery of the Merger Agreement, (ii) the announcement of the
Merger or the Offer, (iii) the consummation of the Offer, the Merger or the
other transactions contemplated by the Merger Agreement or (iv) the
acquisition of Common Stock pursuant to the Offer, the Merger or the Merger
Agreement.”

          (b) Amendment to Section 1(h). The following text is added at the end of the
definition of “Distribution Date” in Section 1(h) of the Rights Agreement:

“Notwithstanding the foregoing or anything in this Agreement to the
contrary, no Distribution Date shall occur by virtue of (i) the approval,
execution or delivery

 

 

of the Merger Agreement, (ii) the announcement of the Merger or the Offer,
(iii) the commencement of the Offer, (iv) the consummation of the Offer, the
Merger or the other transactions contemplated by the Merger Agreement or (v)
the acquisition of Common Stock pursuant to the Offer, the Merger or the
Merger Agreement.”

          (c) Amendment to Section 1(l). The definition of “Expiration Date” shall be amended
and restated in its entirety to read as follows:

“ “Expiration Date” means the earlier of (i) the Final Expiration Date, (ii)
the time at which all Rights are redeemed as provided in Section 23 are
exchanged as provided in Section 24 and (iii) the Effective Time.”

          (d) Amendment to Section 1(x). The following text is added at the end of the
definition of “Stock Acquisition Date” in Section 1(x) of the Rights Agreement:

“Notwithstanding the foregoing or anything in this Agreement to the
contrary, no Stock Acquisition Date shall occur by virtue of (i) the
approval, execution or delivery of the Merger Agreement, (ii) the
announcement of the Merger or the Offer, (iii) the commencement of the
Offer, (iv) the consummation of the Offer, the Merger or the other
transactions contemplated by the Merger Agreement or (v) the acquisition of
Common Stock pursuant to the Offer, the Merger or the Merger Agreement.”

          (e) The following definitions are added to Section 1 of the Rights Agreement in the
appropriate alphabetical order:

     “Effective Time” shall have the meaning assigned to such term in the
Merger Agreement.

     “Merger Agreement” shall mean the Agreement and Plan of Merger dated as
of February 20, 2008, among Parent, Purchaser and the Company, as the same
may be amended from time to time.

     “Merger” shall have the meaning assigned to such term in the Merger
Agreement.

     “Purchaser” shall mean Explorer Acquisition Corp., a Delaware
corporation, and a wholly owned subsidiary of Parent.

     “Offer” shall have the meaning assigned to such term in the Merger
Agreement.

     “Parent” shall mean Pfizer Inc., a Delaware corporation.

          (f) Amendment to Section 7(e). Section 7(e) of the Rights Agreement is amended
by adding the following sentence at the end thereof:

“Notwithstanding the foregoing or anything in this Agreement to the
contrary, the time from and after which any Person first becomes an
Acquiring Person shall not occur by virtue of (i) the approval, execution or
delivery of the Merger

 

 

Agreement, (ii) the announcement of the Merger or the Offer, (iii) the
consummation of the Offer, the Merger or the other transactions contemplated
by the Merger Agreement or (iv) the acquisition of Common Stock pursuant to
the Offer, the Merger or the Merger Agreement.”

          (g) Section 11(a)(ii) of the Rights Agreement is amended by adding the following sentence at
the end thereof:

“Notwithstanding the foregoing or anything in this Agreement to the
contrary, this Section 11(a)(ii) shall not apply by virtue of (i)
the approval, execution or delivery of the Merger Agreement, (ii)
the announcement of the Merger or the Offer, (iii) the consummation
of the Offer, the Merger or the other transactions contemplated by
the Merger Agreement or (iv) the acquisition of Common Stock
pursuant to the Offer, the Merger or the Merger Agreement.”

          (h) Section 13 of the Rights Agreement is amended by adding the following provision at the end
thereof:

“(i) Notwithstanding the foregoing or anything in this Agreement to
the contrary, this Section 13 shall not apply by virtue of (i) the
approval, execution or delivery of the Merger Agreement, (ii) the
announcement of the Merger or the Offer, (iii) the consummation of
the Offer, the Merger or the other transactions contemplated by the
Merger Agreement or (iv) the acquisition of Common Stock pursuant to
the Offer, the Merger or the Merger Agreement.”

          Section 2. Full Force and Effect. Except as expressly amended hereby, the Rights
Agreement shall continue in full force and effect in accordance with the provisions thereof on the
date hereof.

          Section 3. Governing Law. This Amendment for all purposes shall be governed by, and
construed in accordance with, the laws of the State of Texas applicable to contracts executed in
and to be performed entirely in such State.

          Section 4. Counterparts. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.

          Section 5. Authority. Each party represents that such party has full power and
authority to enter into this Amendment and that this Amendment constitutes a legal, valid and
binding obligation of such party, enforceable against such party in accordance with its terms.

          Section 6. Severability. If any term, provision, covenant or restriction of this
Amendment or applicable to this Amendment is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions of this Amendment shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

[SIGNATURE PAGE FOLLOWS]

 

 

          IN WITNESS,WHEREOF, the Company has caused this Amendment to be duly executed as of the day
and year first above written.

	 	 	 	 	 
	ENCYSIVE PHARMACEUTICALS INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Paul Manierre	 	 
	 

	 	 	 	 
	 

	 	Name: Paul Manierre	 	 
	 

	 	Title: Vice President and General Counsel	 	 
	 
	 	 	 	 
	Acknowledged and Approved by:	 	 
	 
	 	 	 	 
	THE BANK OF NEW YORK, as Rights Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ Steven Myers	 	 
	 

	 	 	 	 
	 

	 	Name: Steven Myers	 	 
	 

	 	Title:   Vice Presidentexv10w1

 

Exhibit 10.1

                     Restricted Stock Units

2008 EMPLOYEE RESTRICTED STOCK UNIT AGREEMENT

     This 2008 Employee Restricted Stock Unit Agreement (this “Agreement”) is between
Oceaneering international, inc. (the “Company”) and                     (the “Participant”), an employee of
the Company or one of its Subsidiaries, regarding an award (“Award”) of                     units (“Restricted Stock
Units”) representing shares of Common Stock (as defined in the 2005 Incentive plan of
oceaneering international, inc. (the “Plan”), awarded to the Participant effective February
22, 2008 (the “Award Date”), such number of Restricted Stock Units subject to adjustment as
provided in Section 15 of the Plan, and further subject to the following terms and conditions:

     1. Relationship to Plan. This Award is subject to all of the terms, conditions and
provisions of the Plan and administrative interpretations thereunder, if any, which have been
adopted by the Committee thereunder and are in effect on the date hereof. Except as defined or
otherwise specifically provided herein, capitalized terms shall have the same meanings ascribed to
them under the Plan.

     2. Vesting.

     (a) All Restricted Stock Units subject to this Award shall vest in full on the
third anniversary of the Award Date, provided the Participant is in Employment on such
anniversary.

     (b) Restricted Stock Units subject to this Award shall vest, irrespective of the
provisions set forth in subparagraph (a) above, provided that the Participant has been in
continuous Employment from the Award Date until the December 15th following the later of (i)
the Award Date, and (ii) his attainment of Retirement Age, in the following amounts provided
the Participant is in Employment on the applicable December 15th:

     (i) if such December 15th occurs within one year following the Award
Date, on such December 15th, one-third of the Award shall be thereupon
vested and an additional one-third of the Award shall vest on each of the
two subsequent anniversaries of such December 15th;

     (ii) if such December 15th occurs between one and two years following
the Award Date, on such December 15th, two-thirds of the Award shall
thereupon be vested and an additional one-third of the Award shall vest on
the subsequent anniversary of such December 15th; and

     (iii) if such December 15th occurs between two and three years
following the Award Date, on such December 15th, the entire Award shall
thereupon be vested.

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     (c) All Restricted Stock Units (and any substitute security and cash component
distributed in connection with a Change of Control) subject to this Award shall vest in
full, irrespective of the provisions set forth in subparagraphs (a) or (b) above, provided
that the Participant has been in continuous Employment since the Award Date, upon the
earliest to occur of:

     (i) the date that the Company or any successor to the Company
terminates the Participant’s Employment for any reason on or after a Change
of Control; or

     (ii) the date that the Participant’s aggregate value of total annual
compensation (including salary, bonuses, long and short-term incentives,
deferred compensation and award of stock options, as well as all other
benefits in force on the date immediately prior to a Change of Control) is
reduced to a value that is ninety-five percent (95%) or less of the value
thereof on the date immediately prior to the Change of Control, or the
Participant’s scope of work responsibility is materially reduced from that
existing on the date immediately prior to the Change of Control, or the
Participant is requested to relocate more than 25 miles from his place of
Employment with the Company on the date immediately prior to the Change of
Control, in each case, on or after a Change of Control; or

     (iii) the Participant’s termination of Employment by reason of
Disability or death.

     (d) For purposes of this Agreement:

     (i) “Change of Control” means:

     (A) any Person is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended and the rules
and regulations promulgated thereunder), directly or indirectly, of
securities of the Company representing 20% or more of the combined voting
power of the Company’s outstanding Voting Securities, other than through the
purchase of Voting Securities directly from the Company through a private
placement; or

     (B) individuals who constitute the Board on the date hereof (the
“Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a Director subsequent to the date
hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the Directors
comprising the Incumbent Board shall from and after such election be deemed
to be a member of the Incumbent Board; or

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     (C)
the Company is merged or consolidated with another corporation or
entity and as a result of such merger or consolidation less than 60% of the
outstanding Voting Securities of the surviving or resulting corporation or
entity shall then be owned by the former shareholders of the Company; or

     (D) a tender offer or exchange offer is made and consummated by a
Person other than the Company for the ownership of 20% or more of the Voting
Securities of the Company then outstanding; or

     (E) all or substantially all of the assets of the Company are sold or
transferred to a Person as to which:

     (1) the Incumbent Board does not have authority (whether by law
or contract) to directly control the use or further disposition of
such assets; and

     (2) the financial results of the Company and such Person are not
consolidated for financial reporting purposes.

     (F) Anything else in this definition to the contrary notwithstanding:

     (1) no Change of Control shall be deemed to have occurred by
virtue of any transaction which results in the Participant, or a
group of Persons which includes the Participant, acquiring more than
20% of either the combined voting power of the Company’s outstanding
Voting Securities or the Voting Securities of any other corporation
or entity which acquires all or substantially all of the assets of
the Company, whether by way of merger, consolidation, sale of such
assets or otherwise; and

     (2) no Change of Control shall be deemed to have occurred unless
such event constitutes an event specified in Code Section
409A(2)(A)(v) and the Treasury regulations promulgated thereunder.

     (ii) “Disability” means the Participant is unable to engage in any
substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or
can be expected to last for a continuous period of not less than 12 months.
The Participant’s inability and its anticipated duration shall be determined
solely by a medical physician of the Participant’s choice to be approved by
the Company, which approval shall not be unreasonably withheld.

     (iii) “Employment” means employment with the Company or any of its
Subsidiaries.

Page 3 of 8

 

     (iv) “Person” means, any individual, corporation, partnership, group,
association or other “person,” as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended, and the related
rules and regulations promulgated thereunder.

     (v) “Retirement Age” means the earlier to occur of:

     (A) age 65 or more, or

     (B) age 60 or more with at least 15 years of continuous Employment,

provided that the Participant has remained in Employment until the earlier
to occur of (A) or (B).

     (vi) “Voting Securities” means, with respect to any corporation or
other business enterprise, those securities, which under ordinary
circumstances are entitled to vote for the election of directors or others
charged with comparable duties under applicable law.

     3. Forfeiture of Award. If the Participant’s Employment terminates under any circumstances
(except those provided in Paragraph 2 of this Agreement or in any other written agreement between
the Participant and the Company which provides for vesting of the Restricted Stock Units granted
hereby), all unvested Restricted Stock Units as of the termination date shall be forfeited.

     4. Registration of Units. The Participant’s right to receive the Restricted Stock Units shall
be evidenced by book entry registration (or by such other manner as the Committee may determine).

     5. Dividend Equivalent Payments. The Company will pay dividend equivalents for each
outstanding Restricted Stock Unit in cash as soon as administratively practicable after dividends,
if any, are paid on the Company’s outstanding shares of Common Stock. Such payments shall be made
no later than March 15th following the year in which the dividends are paid.

     6. Shareholder Rights. The Participant shall have no rights of a shareholder with respect to
shares of Common Stock subject to this Award unless and until such time as the Award has been
settled by the transfer of shares of Common Stock to the Participant.

     7. Settlement and Delivery of Shares.

     (a) Third Anniversary; Termination After Disability or Death; Actual or Constructive
Termination by Company After Change of Control. Settlement of vested Restricted Stock Units
that vest in accordance with Subparagraph 2(a) or 2(c) shall be made as soon as
administratively practicable after vesting, but in no case later than the
March 15th following the year in which vesting occurs. Settlement will be made by
payment in shares of Common Stock.

Page 4 of 8

 

     (b) Termination After Attainment of Retirement Age. Settlement of vested Restricted Stock
Units that vest in accordance with Subparagraph 2(b) to a Participant who terminates
Employment after attainment of his Retirement Age (whether or not there has been a Change of
Control) shall be made as soon as administratively practicable after termination, but in no
case later than the March 15th following the year in which termination occurs. Settlement
will be made by payment in shares of Common Stock.

     (c) Attainment of Retirement Age Without Termination. Settlement of vested Restricted
Stock Units that vest in accordance with Subparagraph 2(b) to a Participant who continues
employment through the third anniversary of the Award Date shall be made as soon as
administratively practicable after the Restricted Stock Units would have otherwise vested by
reason of Subparagraphs 2(a) or 2(c), but in no event after the later of (i) the 15th day of
the third calendar month following the applicable date in Subparagraph 2(a) or 2(c), or (ii)
the end of the calendar year in which the applicable date in Subparagraph 2(a) or 2(c)
occurred. Settlement will be made by payment in shares of Common Stock.

          The Company shall not be obligated to deliver any shares of Common Stock if counsel to the
Company determines that such sale or delivery would violate any applicable law or any rule or
regulation of any governmental authority or any rule or regulation of, or agreement of the Company
with, any securities exchange or association upon which the Common Stock is listed or quoted. The
Company shall in no event be obligated to take any affirmative action in order to cause the
delivery of shares of Common Stock to comply with any such law, rule, regulation or agreement.

     8. Notices. Unless the Company notifies the Participant in writing of a different procedure,
any notice or other communication to the Company with respect to this Agreement or the Plan shall
be in writing addressed to the Corporate Secretary of the Company and shall be: (a) by registered
or certified United States mail, postage prepaid, to 11911 FM 529, Houston, Texas 77041-3011; or
(b) by hand delivery or otherwise to 11911 FM 529, Houston, Texas 77041-3011. Any such notice
shall be deemed effectively delivered or given upon receipt.

     Notwithstanding the foregoing, in the event that the address of the Company’s principal
executive offices is changed prior to the date of any exercise of this Award, notices shall instead
be made pursuant to the foregoing provisions at the then current address of the Company’s principal
executive offices.

     Any notice or other communication to the Participant with respect to this Agreement or the
Plan shall be given in writing and shall be deemed effectively delivered or given upon receipt or,
in the case of notices mailed by the Company to the Participant, five days after deposit in the
United States mail, postage prepaid, addressed to the Participant at the address specified at the
end of this Agreement or at such other address as the Participant hereafter designates by written
notice to the Company.

Page 5 of 8

 

     9. Assignment of Award. Except as otherwise permitted by the Committee and as provided in the
immediately following paragraph, the Participant’s rights under the Plan and this Agreement are
personal, and no assignment or transfer of the Participant’s rights under and interest in this
Award may be made by the Participant other than by a domestic relations order. This Award is
payable during his lifetime only to the Participant, or in the case of the Participant being
mentally incapacitated, this Award shall be payable to his guardian or legal representative.

          The Participant may designate a beneficiary or beneficiaries (the “Beneficiary”) to whom the
Award under this Agreement, if any, will pass upon the Participant’s death and may change such
designation from time to time by filing with the Company a written designation of Beneficiary on
the form attached hereto as Exhibit A, or such other form as may be prescribed by the Committee;
provided that no such designation shall be effective unless so filed prior to the death of the
Participant and no such designation shall be effective as of a date prior to receipt by the
Company. The Participant may change his Beneficiary without the consent of any prior Beneficiary
by filing a new designation with the Company. The last such designation that the Company receives
in accordance with the foregoing provisions will be controlling. Following the Participant’s
death, the Award, if any, will pass to the designated Beneficiary and such person will be deemed
the Participant for purposes of any applicable provisions of this Agreement. If no such
designation is made or if the designated Beneficiary does not survive the Participant’s death, the
Award shall pass by will or, if none, then by the laws of descent and distribution.

     10. Withholding. The Company’s obligations under this Agreement shall be subject to the
satisfaction of all applicable federal, state and local income and employment tax withholding
requirements (the “Required Withholding”). The Company may withhold an appropriate amount of cash
(with respect to the payment of dividend equivalents) or number of shares from the Common Stock
that would otherwise have been delivered to the Participant (with respect to the settlement of the
Award) necessary to satisfy the Participant’s Required Withholding, and deliver the remaining
amount of cash or shares of Common Stock to the Participant, unless the Participant has made
arrangements with the Company for the Participant to deliver to the Company cash, check, other
available funds or shares of previously owned Common Stock for the full amount of the Required
Withholding by 5:00 p.m. Central Standard Time on the date an amount is included in the income of
the Participant. The amount of the Required Withholding and the number of shares to satisfy the
Participant’s Required Withholding shall be based on the Fair Market Value of the shares on the
date prior to the applicable date of income inclusion.

     11. Stock Certificates. Certificates representing the Common Stock issued pursuant to the
settlement of an Award will bear all legends required by law and necessary or advisable to
effectuate the provisions of the Plan and this Award. The Company may place a “stop transfer”
order against shares of the Common Stock issued pursuant to this Award until all restrictions and
conditions set forth in the Plan or this Agreement and in the legends referred to in this Section
11 have been complied with.

Page 6 of 8

 

     12. Successors and Assigns. This Agreement shall bind and inure to the benefit of and be
enforceable by the Participant, the Company and their respective permitted successors and assigns
(including personal representatives, heirs and legatees), except that the Participant may not
assign any rights or obligations under this Agreement except to the extent and in the manner
expressly permitted in Section 9 of this Agreement.

     13. No Employment Guaranteed. No provision of this Agreement shall confer any right upon the
Participant to continued Employment with the Company or any Subsidiary.

     14. Code Section 409A Compliance. If any provision of this Agreement would result in the
imposition of an excise tax under Section 409A of the Code and related regulations and Treasury
pronouncements (“Section 409A”), that provision will be reformed to avoid imposition of the excise
tax and no action taken to comply with Section 409A shall be deemed to impair a benefit under this
Agreement.

     15. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of Texas, excluding any choice of law provision thereof that would
result in the application of the laws of any other jurisdiction.

     16. Amendment. Except as set forth herein, this Agreement cannot be modified, altered or
amended except by an agreement, in writing, signed by both the Company and the Participant.

	 	 	 	 	 
	 	OCEANEERING INTERNATIONAL, INC.

 	 
	Award Date: February 22, 2008 	By:  	 	 
	 	 	George R. Haubenreich, Jr. 	 
	 	 	Senior Vice President, General Counsel
and Secretary 	 
	 

     The Participant hereby accepts the foregoing 2008 Employee Restricted Stock Unit Agreement,
subject to the terms and provisions of the Plan and administrative interpretations thereof referred
to above.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	PARTICIPANT:	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 
	 

	 	 	 	 	 	Participant’s Address:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 

	 	 

Page 7 of 8

 

Exhibit A to 2008 Employee

Restricted Stock Unit Agreement

Designation of Beneficiary

     I,                                                             
(“Participant”), hereby declare that upon my death,
                                                
                    (the “Beneficiary”) of
                                                                       
                     (address), who is my
                                         (relationship), will be entitled to the Award which may become payable
under the Plan and all other rights accorded the Participant under the Participant’s 2008 Employee
Restricted Stock Unit Agreement (capitalized terms used but not defined herein have the respective
meanings assigned to them in such agreement).

     It is understood that this designation of Beneficiary is made pursuant to the Agreement and is
subject to the conditions stated therein, including the Beneficiary’s survival of Participant. If
any such condition is not satisfied, such rights shall devolve according to the Participant’s last
will and testament, or if none, then the laws of descent and distribution.

     It is further understood that all prior designations of beneficiary under the Agreement are
hereby revoked upon the filing of this designation with the Company. This designation of
Beneficiary may only be revoked in writing, signed by the Participant, and filed with the Corporate
Secretary of the Company prior to the Participant’s death.

	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

Participant
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

Date
	 	 

Page 8 of 8

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