Document:

Unassociated Document

    Exhibit
      10.1

    [Date]

    

    [Name
      of
      Executive]

    [Address
      of Executive]

    

    Re:
      Retention Agreement

    

    Dear
      [Name of Executive]:

    

    Boston
      Scientific Corporation (the “Company”)
      considers it essential to the best interests of its stockholders to foster
      the
      continuous employment of key management personnel. Further, the Board of
      Directors of the Company (the “Board”)
      recognizes that the possibility of a change in control exists, and that such
      possibility, and the uncertainty and questions that it may raise among
      management, may result in the departure or distraction of management personnel
      to the detriment of the Company and its stockholders.

    

    The
      Board
      has determined that appropriate steps should be taken to reinforce and encourage
      the continued attention and dedication of members of the management of the
      Company, including yourself, to their assigned duties without distraction in
      the
      face of potentially disturbing circumstances arising from any possible change
      in
      control of the Company.

    

    In
      order
      to induce you to remain in the employ of the Company, the Company agrees that
      you shall receive the severance benefits set forth in this letter agreement
      (this “Agreement”)
      in the
      event your employment with the Company is terminated subsequent to a Change
      in
      Control (as defined herein) under the circumstances described
      below.

    

    1. Termination
      Following Change in Control.
      If a
      Change in Control occurs, you will be entitled to the benefits provided in
      Section 2 hereof upon the subsequent termination of your employment by the
      Company without Cause (as defined herein) or by you for Good Reason (as defined
      herein) during the two-year period following such Change in Control (the
“Covered
      Period”).
      Any
      purported termination of your employment by the Company or by you shall be
      communicated by a Notice of Termination to the other party hereto in accordance
      with Section 8 hereof. For purposes of this Agreement, a “Notice
      of Termination”
shall
      mean a written notice which shall indicate the specific termination provision
      in
      this Agreement relied upon and shall set forth in reasonable detail the facts
      and circumstances claimed to provide a basis for termination of your employment
      under the provision so indicated.

    

    2. Compensation
      Upon Termination.
      

    

    (a) Severance
      Benefits.
      If your
      employment by the Company shall be terminated during the Covered Period by
      the
      Company without Cause or by you for Good Reason, then you shall be entitled
      to
      the following benefits:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i) Severance
      Payments.
      The
      Company shall pay you in cash within 5 days of the Date of Termination the
      full
      amount of any earned but unpaid base salary through the Date of Termination
      at
      the rate in effect at the time of the Notice of Termination, plus a cash payment
      for all unused vacation time which you may have accrued as of the Date of
      Termination. The Company shall also pay you in cash within five days of the
      Date
      of Termination a pro rata portion of the annual bonus for the year in which
      your
      employment terminates, calculated on the basis of your target bonus for that
      year and on the assumption that all performance targets have been or will be
      achieved. In addition, the Company shall pay you in a cash lump sum, within
      five
      days of the Date of Termination, an amount (the “Severance
      Payment”)
      equal
      to three times the sum of (A) your base salary on the Termination Date (without
      giving effect to any salary reductions which satisfy the definition of
“Good
      Reason”),
      (B)
      the greater of (x) the most recent bonus paid to you (which shall be deemed
      to
      be the sum of (I) the cash bonus amount most recently paid to you and (II)
      the
      value of restricted stock (calculated as of the date of vesting) issued to
      you
      as bonus compensation that vested (other than restricted stock that vested
      solely by virtue of the Change in Control) within the immediately preceding
      year) plus
      the
      value of any other shares of stock issued to you without forfeiture provisions
      as bonus compensation within the immediately preceding year and (y) your target
      bonus in effect for the year in which the Change in Control occurred (calculated
      assuming that all performance targets have been or will be achieved) and (C)
      $25,000. The Severance Payment shall be in lieu of any other severance payments
      which you are entitled to receive under any other severance pay plan or
      arrangement sponsored by the Company or any of its subsidiaries;

    

    (ii) Benefit
      Continuation.
      Subject
      to your compliance with the non-solicitation and confidentiality provisions
      described in Section 6, you and your eligible dependents shall continue to
      be
      eligible to participate during the Benefit Continuation Period (as hereinafter
      defined) in the medical, dental, health, life and other welfare benefit plans
      and arrangements applicable to you immediately prior to your termination of
      employment on the same terms and conditions in effect for you and your
      dependents immediately prior to such termination. For purposes of the previous
      sentence, “Benefit
      Continuation Period”
means
      the period beginning on the Date of Termination and ending on the earlier to
      occur of (i) the third anniversary of the Date of Termination and (ii) the
      date that you and your dependents are eligible for coverage under the plans
      of a
      subsequent employer which provide substantially equivalent or greater benefits
      to you and your dependents;

    

    (iii) Legal
      Fees and Expenses.
      The
      Company shall also pay you in cash all legal fees and expenses, if any, incurred
      by you in contesting or disputing any such termination or in seeking to obtain
      or enforce any right or benefit provided by this Agreement;
      provided, however,
      that the
      amount of the payments and reimbursements under this Section 2(a)(iii) shall
      not
      exceed $100,000; and
      provided, further,
      that no
      such legal fees or expenses shall be reimbursed if it is determined by the
      applicable arbitral panel or other tribunal that your claim is entirely without
      merit. Furthermore, nothing 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    shall
      prohibit the arbitral panel or other tribunal from awarding legal fees in excess
      of $100,000 if, in the interests of fairness and equity, the arbitral panel
      or
      other tribunal deems such award appropriate. 

    

    (b) No
      Mitigation.
      You
      shall not be required to mitigate the amount of any payment or benefit provided
      for in this Section 2 by seeking other employment or otherwise.

    

    3. Additional
      Payment.
      

    

    (a) Gross-Up
      Payment.
      Notwithstanding anything herein to the contrary, if it is determined that any
      Payment (as defined herein) would be subject to the excise tax imposed by
      Section 4999 of the Code or any interest or penalties with respect to such
      excise tax (such excise tax, together with any interest or penalties thereon,
      is
      herein referred to as an “Excise
      Tax”),
      then
      you shall be entitled to an additional cash payment (a “Gross-Up
      Payment”)
      in an
      amount that will place you in the same after-tax economic position that you
      would have enjoyed if the Excise Tax had not applied to the Payment. The amount
      of the Gross-Up Payment shall be determined by the Accounting Firm (as defined
      herein) in accordance with such formula as the Accounting Firm deems
      appropriate. No Gross-Up Payments shall be payable hereunder if the Accounting
      Firm determines that the Payments are not subject to an Excise Tax. The
      Accounting Firm shall be paid by the Company for services performed
      hereunder.

    

    (b) Determination
      of Gross-Up Payment.
      Subject
      to the provisions of Section 3(c), all determinations required under this
      Section 3, including whether a Gross-Up Payment is required, the amount of
      the
      Payments constituting excess parachute payments, and the amount of the Gross-Up
      Payment, shall be made by the Accounting Firm, which shall provide detailed
      supporting calculations both to you and the Company within fifteen days of
      any
      date reasonably requested by you or the Company on which a determination under
      this Section 3 is necessary or advisable. The Company shall pay you in cash
      the
      initial Gross-Up Payment within five days of the receipt by you and the Company
      of the Accounting Firm's determination. If the Accounting Firm determines that
      no Excise Tax is payable by you, the Company shall cause the Accounting Firm
      to
      provide you with an opinion that the Accounting Firm has substantial authority
      under the Code and Regulations not to report an Excise Tax on your federal
      income tax return. Any determination by the Accounting Firm shall be binding
      upon you and the Company. If the initial Gross-Up Payment is insufficient to
      completely place you in the same after-tax economic position that you would
      have
      enjoyed if the Excise Tax had not applied to the Payments (hereinafter an
“Underpayment”),
      the
      Company, after exhausting its remedies under Section 3(c) below, shall promptly
      pay you in cash an additional Gross-Up Payment in respect of the
      Underpayment.

    

    (c) Procedures.
      You
      shall notify the Company in writing of any claim by the Internal Revenue Service
      that, if successful, would require the payment by the Company of a Gross-Up
      Payment. Such notice shall be given as soon as practicable after you know of
      such claim and shall apprise the Company of the nature of the claim and the
      date
      on which the claim is requested to be paid. You agree not to pay the claim
      until
      the expiration of the thirty-day period 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    following
      the date on which you notify the Company, or such shorter period ending on
      the
      date the Taxes with respect to such claim are due (the “Notice
      Period”).
      If
      the Company notifies you in writing prior to the expiration of the Notice Period
      that it desires to contest the claim, you shall: (i) give the Company any
      information reasonably requested by the Company relating to the claim; (ii)
      take
      such action in connection with the claim as the Company may reasonably request,
      including, without limitation, accepting legal representation with respect
      to
      such claim by an attorney reasonably selected by the Company and reasonably
      acceptable to you; (iii) cooperate with the Company in good faith in contesting
      the claim; and (iv) permit the Company to participate in any proceedings
      relating to the claim. You shall permit the Company to control all proceedings
      related to the claim and, at its option, permit the Company to pursue or forgo
      any and all administrative appeals, proceedings, hearings, and conferences
      with
      the taxing authority in respect of such claim. If requested by the Company,
      you
      agree either to pay the tax claimed and sue for a refund or contest the claim
      in
      any permissible manner and to prosecute such contest to a determination before
      any administrative tribunal, in a court of initial jurisdiction and in one
      or
      more appellate courts as the Company shall determine; provided,
      however,
      that,
      if the Company directs you to pay such claim and pursue a refund, the Company
      shall advance the amount of such payment to you on an after-tax and
      interest-free basis (the “Advance”).
      The
      Company's control of the contest related to the claim shall be limited to the
      issues related to the Gross-Up Payment and you shall be entitled to settle
      or
      contest, as the case may be, any other issues raised by the Internal Revenue
      Service or other taxing authority. If the Company does not notify you in writing
      prior to the end of the Notice Period of its desire to contest the claim, the
      Company shall pay you in cash an additional Gross-Up Payment in respect of
      the
      excess parachute payments that are the subject of the claim, and you agree
      to
      pay the amount of the Excise Tax that is the subject of the claim to the
      applicable taxing authority in accordance with applicable law.

    

    (d) Repayments.
      If,
      after receipt by you of an Advance, you become entitled to a refund with respect
      to the claim to which such Advance relates, you shall pay the Company the amount
      of the refund (together with any interest paid or credited thereon after Taxes
      applicable thereto). If, after receipt by you of an Advance, a determination
      is
      made that you shall not be entitled to any refund with respect to the claim
      and
      the Company does not promptly notify you of its intent to contest the denial
      of
      refund, then the amount of the Advance shall not be required to be repaid by
      you
      and the amount thereof shall offset the amount of the additional Gross-Up
      Payment then owing to you. 

    

    (e) Further
      Assurances.
      The
      Company shall indemnify you and hold you harmless, on an after-tax basis, from
      any costs, expenses, penalties, fines, interest or other liabilities
      (“Losses”)
      incurred by you with respect to the exercise by the Company of any of its rights
      under this Section 3, including, without limitation, any Losses related to
      the
      Company's decision to contest a claim or any imputed income to you resulting
      from any Advance or action taken on your behalf by the Company hereunder. The
      Company shall pay all legal fees and expenses incurred under this Section 3,
      and
      shall promptly reimburse you for the reasonable expenses incurred by you in
      connection with any actions taken by the Company or required to be taken by
      you
      hereunder. The Company shall also pay all of the fees and expenses of the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Accounting
      Firm, including, without limitation, the fees and expenses related to the
      opinion referred to in Section 3(b).

     

    4. Equity
      Incentive Awards.

     

    (a) Options.
      

    

    
       
All
        options granted to you under the Company’s equity incentive plans will
        immediately become exercisable upon a Change in Control (as defined
        herein).

    

    

    (b) Restricted
      Stock Awards.
      All
      restricted stock awards will immediately become free from restriction upon
      a
      Change in Control (as defined herein).

    

    5.  Successors;
      Binding Agreement.

     

    (a) Assumption
      By Successor.
      The
      Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation or otherwise) to all or substantially all of the business
      or assets of the Company to expressly assume and agree to perform this Agreement
      in the same manner and to the same extent that the Company would be required
      to
      perform it if no such succession had taken place. Failure of the Company to
      obtain such assumption and agreement prior to the effectiveness of any such
      succession shall be a breach of this Agreement and shall entitle you to
      compensation from the Company in the same amount and on the same terms as you
      would be entitled hereunder if you had terminated your employment for Good
      Reason following a Change in Control, except that for purposes of implementing
      the foregoing, the date on which any such succession becomes effective shall
      be
      deemed the Date of Termination. As used in this Agreement, “the
      Company”
shall
      mean the Company as hereinbefore defined and any successor to its business
      or
      assets which assumes and agrees to perform this Agreement by operation of law,
      by agreement or otherwise.

    

    (b) Enforceability
      By Beneficiaries.
      This
      Agreement shall inure to the benefit of and be enforceable by your personal
      or
      legal representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees. If you should die while any amount would
      still be payable to you hereunder if you had continued to live, all such
      amounts, unless otherwise provided herein, shall be paid in accordance with
      the
      terms of this Agreement to your devisee, legatee or other designee or, if there
      is no such designee, to your estate. 

    

    6. Nonsolicitation;
      Confidentiality

    

    (a) Nonsolicitation.
      For
      three years following your Date of Termination, you shall not, without the
      prior
      written consent of the Company, directly or indirectly, as a sole proprietor,
      member of a partnership, stockholder or investor, officer or director of a
      corporation, or as an employee, associate, consultant, independent contractor
      or
      agent of any person, partnership, corporation or other business organization
      or
      entity other than the Company: (i) solicit or endeavor to entice away from
      the Company or any of its affiliates or subsidiaries, any person or entity
      who
      is, or, during the then most recent 12-month period, was, employed by,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    or
      had
      served as an agent or key consultant of, the Company or any of its subsidiaries,
      or (ii) solicit or endeavor to entice away from the Company or any of its
      subsidiaries any person or entity who is, or was within the then most recent
      12-month period, a customer or client (or reasonably anticipated (to your
      general knowledge or the public's general knowledge) to become a customer or
      client) of the Company or any of its subsidiaries. 

    

    (b) Confidentiality.
      On and
      after the date of this Agreement, you will not, except in the performance of
      your obligations to the Company hereunder or as may otherwise be approved in
      advance by the Board, directly or indirectly, disclose or use (except for the
      direct benefit of the Company) any confidential information that you may learn
      or have learned by reason of your association with the Company, any customer
      or
      client of the Company or any of their respective subsidiaries and affiliates.
      The term “confidential
      information”
      includes all data, analyses, reports, interpretations, forecasts, documents
      and
      information in any form concerning or otherwise reflecting information and
      concerning the Company and its affairs, including, without limitation, with
      respect to clients, products, policies, procedures, methodologies, trade secrets
      and other intellectual property, systems, personnel, confidential reports,
      technical information, financial information, business transactions, business
      plans, prospects or opportunities, but shall exclude any portion of such
      information that (i) was acquired by you prior to your employment by, or other
      association with, the Company or any affiliated or predecessor entity,
      (ii) is or becomes generally available to the public or is generally known
      in the industry or industries in which the Company or any customer or client
      of
      the Company operates, in each case other than as a result of disclosure by
      you
      in violation of this Section 6 or (iii) you are required to disclose under
      any applicable laws, regulations or directives of any government agency,
      tribunal or authority having jurisdiction in the matter or under subpoena or
      other process of law. As used in this Section 6, an “affiliate”
of
      a
      person or entity is a person or entity in control of, controlled by, or in
      common control with, such first person or entity.

    

    7. Definitions.
      For
      purposes of this Agreement, the following capitalized words shall have the
      meanings set forth below:

    

    “Accounting
      Firm”
shall
      mean the then-current independent auditors of the Company or, if such firm
      is
      unable or unwilling to perform such calculations, such other national accounting
      firm as shall be designated by agreement between you and the
      Company.

    

    “Cause”
shall
      mean the willful engaging by you in criminal or fraudulent acts or gross
      misconduct that is demonstrably and materially injurious to the Company,
      monetarily or otherwise. No act or failure to act on your part shall be deemed
      “willful”
unless
      done, or omitted to be done, by you not in good faith and without reasonable
      belief that your action or omission was in the best interest of the Company.
      Notwithstanding the foregoing, you shall not be deemed to have been terminated
      for Cause unless and until there shall have been delivered to you a copy of
      a
      resolution duly adopted by the affirmative vote of not less than three quarters
      of the entire membership of the Board at a meeting of the Board called and
      held
      for such purpose (after reasonable notice to you and an opportunity for you,
      together with your counsel, to be heard before the Board), finding that in
      the
      good faith opinion of the Board you were guilty of conduct 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    set
      forth
      above in the first sentence of this subsection and specifying the particulars
      thereof in detail.

    

    “Change
      in Control”
shall
      mean the happening of any of the following:

    

    (a) The
      acquisition, other than from the Company, by any individual, entity or group
      (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
      Act of 1934, as amended (the “Exchange
      Act”))
      of
      beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
      Exchange Act) of 20% or more of either (i) the then outstanding shares of common
      stock of the Company (the “Outstanding
      Company Common Stock”)
      or
      (ii) the combined voting power of the then outstanding voting securities of
      the
      Company entitled to vote generally in the election of directors (the
“Company
      Voting Securities”);
      provided,
      however,
      that
      any acquisition by (x) any non-corporate shareholder of the Company as of the
      effective date of the initial registration of an offering of Stock under the
      Securities Act of 1933, (y) the Company or any of its affiliates or
      subsidiaries, or any employee benefit plan (or related trust) sponsored or
      maintained by the Company or any of its subsidiaries or (z) any corporation
      with
      respect to which, following such acquisition, more than 60% of, respectively,
      the then outstanding shares of common stock of such corporation and combined
      voting power of the then outstanding voting securities of such corporation
      entitled to vote generally in the election of directors is then beneficially
      owned, directly or indirectly, by all or substantially all of the individuals
      and entities who were the beneficial owners, respectively, of the Outstanding
      Company Common Stock and Company Voting Securities immediately prior to such
      acquisition in substantially the same proportion as their ownership, immediately
      prior to such acquisition, of the Outstanding Common Stock and Company Voting
      Securities, as the case may be, shall not constitute a Change in Control of
      the
      Company; or

    

    (b) Individuals
      who, as of the effective date of the initial registration of an offering of
      Stock under the Securities Act of 1933, constitute the Board (the “Incumbent
      Board”)
      cease
      for any reason to constitute at least a majority of the Board, provided that
      any
      individual becoming a director subsequent to such effective date whose election
      or nomination for election by the Company's shareholders, was approved by a
      vote
      of at least a majority of the directors then comprising the Incumbent Board
      shall be considered as though such individual were a member of the Incumbent
      Board, but excluding, for this purpose, any such individual whose initial
      assumption of office is in connection with an actual or threatened election
      contest relating to the election of the Directors of the Company (as such terms
      are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act);
      or

    

    (c) Consummation
      of a reorganization, merger, consolidation or similar transaction involving
      the
      Company (a “Business
      Combination”),
      in
      each case, with respect to which all or substantially all of the individuals
      and
      entities who were the respective beneficial owners of the Outstanding Company
      Common Stock and Company

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Voting
      Securities immediately prior to such Business Combination do not own
      beneficially, directly or indirectly, more than 60% of, respectively, the then
      outstanding shares of common stock and the combined voting power of the then
      outstanding voting securities entitled to vote generally in the election of
      directors, as the case may be, of the corporation resulting from such Business
      Combination in substantially the same proportion as their ownership immediately
      prior to such Business Combination of the Outstanding Company Common Stock
      and
      Company Voting Securities, as the case may be; or

    

    (d) A
      complete liquidation or dissolution of the Company or a sale or other
      disposition of all or substantially all of the assets of the Company other
      than
      to a corporation with respect to which, following such sale or disposition,
      more
      than 60% of, respectively, the then outstanding shares of common stock and
      the
      combined voting power of the then outstanding voting securities entitled to
      vote
      generally in the election of directions is then owned beneficially, directly
      or
      indirectly, by all or substantially all of the individuals and entities who
      were
      the beneficial owners, respectively, of the Outstanding Company Common Stock
      and
      Company Voting Securities immediately prior to such sale or disposition in
      substantially the same proportion as their ownership of the Outstanding Company
      Common Stock and Company Voting Securities, as the case may be, immediately
      prior to such sale or disposition.

    
    

    
      
        Notwithstanding
          the foregoing, with respect to any amounts payable under this Agreement
          that are
          subject to Section 409A of the Code where the payment is to be accelerated
          in
          connection with the Change of Control, no event(s) set forth above shall
          constitute a Change in Control for purposes of the Agreement unless such
          event(s) also constitutes a “change in the ownership”, “change in the effective
          control” or a “change in the ownership of a substantial portion of the assets”
of the Company as defined under Section 409A of the
          Code.

      

    

    

    “Code”
shall
      mean the Internal Revenue Code of 1986, as amended, and any successor provisions
      thereto.

    

    “Date
      of Termination”
shall
      mean, if your employment is terminated by the Company without Cause or by you
      for Good Reason, the date specified in the Notice of Termination (which, in
      the
      case of a termination by the Company without Cause shall not be less than 30
      days, and in the case of a resignation by you for Good Reason shall not be
      less
      than 30 nor more than 60 days from the date such Notice of Termination is
      given); provided,
      that if
      within 30 days after any Notice of Termination is given the party receiving
      such
      Notice of Termination notifies the other party that a dispute exists concerning
      the termination, the Date of Termination shall be the date on which the dispute
      is finally determined, either by mutual written agreement of the parties, by
      a
      binding arbitration award, or by a final judgment, order or decree of a court
      of
      competent jurisdiction (which is not appealable or the time for appeal therefrom
      having expired and no appeal having been perfected); provided,
      further,
      that the
      Date of Termination shall be extended by a notice of dispute only if such notice
      is given in good faith and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    the
      party
      giving such notice pursues the resolution of such dispute with reasonable
      diligence. Notwithstanding the pendency of any such dispute, the Company will
      continue to pay you your full compensation in effect when the notice giving
      rise
      to the dispute was given and continue you as a participant in all compensation,
      benefit, and insurance plans and perquisites in which you were participating
      when the notice giving rise to the dispute was given, until the dispute is
      finally resolved in accordance with this Subsection. Amounts paid under this
      Subsection are in addition to all other amounts due under this Agreement and
      shall not be offset against or reduce any other amounts due under this
      Agreement.

    

    “Good
      Reason”
shall
      mean, without your express written consent, any of the following:

    

    (i) A
      meaningful and detrimental alteration in your position or in the nature or
      status of your responsibilities (including those as a director of the Company,
      if any) from those in effect immediately prior to the Change in Control;

    

    (ii) A
      reduction by the Company in your annual base salary as in effect on the date
      hereof or as the same may be increased from time to time; a failure by the
      Company to increase your salary at a rate commensurate with that of other key
      executives of the Company; a reduction in your annual bonus (expressed as a
      percentage of base salary) below the target in effect for you immediately prior
      to the Change in Control; or any adverse change in your long-term incentive
      opportunities in comparison to those in effect prior to the Change in
      Control.

    

    (iii) The
      relocation of the office of the Company where you are employed at the time
      of
      the Change in Control (the “CIC
      Location”)
      to a
      location which is more than 50 miles away from the CIC Location or the Company's
      requiring you to be based more than 50 miles away from the CIC Location (except
      for required travel on the Company's business to an extent substantially
      consistent with your customary business travel obligations in the ordinary
      course of business prior to the Change in Control);

    

    (iv) The
      failure by the Company to continue in effect any incentive or deferred
      compensation plan in which you participate or the failure by the Company to
      continue your participation therein on at least as favorable a basis, both
      in
      terms of the amount of benefits provided and the level of your participation
      relative to other participants, as existed at the time of the Change in
      Control;

    

    (v) The
      failure by the Company to continue to provide you with benefits at least as
      favorable as those enjoyed by you under any of the Company's retirement, life
      insurance, medical, health and accident, disability or savings plans in which
      you were participating at the time of the Change in Control; the taking of
      any
      action by the Company that would directly or indirectly materially reduce any
      of
      such benefits or deprive you of any material perquisite enjoyed by you at the
      time of the Change in Control including without limitation, the use of a car,
      secretary, office space, telephones, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    expense
      reimbursement and club dues; or the failure by the Company to provide you with
      the number of paid vacation days to which you are entitled on the basis of
      years
      of service with the Company in accordance with the Company's normal vacation
      policy in effect at the time of the Change in Control;

    

    (vi) The
      failure of the Company to pay you any amounts of salary, bonus or expense
      reimbursement then owed to you or the failure of the Company to adhere to its
      payroll and other compensation schedules in place just prior to the Change
      in
      Control;

    

    (vii) The
      failure of the Company to obtain a satisfactory agreement from any successor
      to
      assume and agree to perform this Agreement, as contemplated in Section 5 hereof
      or, if the business of the Company for which your services are principally
      performed is sold at any time after a Change in Control, the purchaser of such
      business shall fail to agree to provide you with the same or a comparable
      position, duties, compensation and benefits (as described in subsections (iv)
      and (v) above) as provided to you by the Company immediately prior to the Change
      in Control; or

    

    (viii) Any
      purported termination of your employment which is not effected pursuant to
      a
      Notice of Termination satisfying the requirements of Section 1 (and, if
      applicable, the requirements set out in the definition of “Cause”
above);
      for purposes of this Agreement, no such purported termination shall be
      effective.

    

    “Payment”
means
      (i) any amount due or paid to you under this Agreement, (ii) any amount
      that is due or paid to you under any plan, program or arrangement of the Company
      and its subsidiaries, and (iii) any amount or benefit that is due or payable
      to
      you under this Agreement or under any plan, program or arrangement of the
      Company and its subsidiaries not otherwise covered under clause (i) or (ii)
      hereof which must reasonably be taken into account under Section 280G of the
      Code and the Regulations in determining the amount of the “parachute
      payments”
      received by you, including, without limitation, any amounts which must be taken
      into account under the Code and Regulations as a result of (x) the
      acceleration of the vesting of Options, restricted stock or other equity awards,
      (y) the acceleration of the time at which any payment or benefit is receivable
      by you or (z) any contingent severance or other amounts that are payable to
      you.

    

    “Regulations”
shall
      mean the proposed, temporary and final regulations under Section 280G of the
      Code or any successor provision thereto.

    

    “Taxes”
shall
      mean the federal, state and local income taxes to which you are subject at
      the
      time of determination, calculated on the basis of the highest marginal rates
      then in effect, plus any additional payroll or withholding taxes to which you
      are then subject.

    

    8. Notice.
      For the
      purpose of this Agreement, notices and all other communications provided for
      in
      the Agreement shall be in writing and shall be deemed to have been duly given
      when delivered or mailed by United States registered mail, return receipt

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    requested,
      postage prepaid, addressed to, General Counsel, Boston Scientific Corporation,
      One Boston Scientific Place, Natick, MA 01760-1537, or to you at the address
      set
      forth on the signature page of this Agreement or to such other address as either
      party may have furnished to the other in writing in accordance herewith, except
      that notice of change of address shall be effective only upon
      receipt.

    

    9. Miscellaneous.
      No
      provision of this Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is agreed to in writing. No waiver by either
      party hereto at any time of any breach by the other party hereto of, or
      compliance with, any condition or provision of this Agreement to be performed
      by
      such other party shall be deemed a waiver of similar or dissimilar provisions
      or
      conditions at the same or at any prior or subsequent time. No agreements or
      representations, oral or otherwise, express or implied, with respect to the
      subject matter hereof have been made by either party that are not expressly
      set
      forth in this Agreement and this Agreement shall supersede all prior agreements,
      negotiations, correspondence, undertakings and communications of the parties,
      oral or written, with respect to the subject matter hereof. The validity,
      interpretation, construction and performance of this Agreement shall be governed
      by the laws of the Commonwealth of Massachusetts.

    

    10. Validity.
      The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provision of this Agreement,
      which shall remain in full force and effect.

    

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

    

    12. Arbitration.
      Any
      dispute or controversy arising under or in connection with this Agreement shall
      be settled exclusively by arbitration in Boston in accordance with the rules
      of
      the American Arbitration Association then in effect. Judgment may be entered
      on
      the arbitrator's award in any court having jurisdiction;
      provided, however,
      that
      you shall be entitled to seek specific performance of your right to be paid
      until the Date of Termination during the pendency of any dispute or controversy
      arising under or in connection with this Agreement.

    

    13. No
      Contract of Employment.
      Nothing
      in this Agreement shall be construed as giving you any right to be retained
      in
      the employ of the Company.

    

    14. Headings.
      The
      headings contained in this Agreement are intended solely for convenience and
      shall not affect the rights of the parties to this Agreement.

    

     

    
 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      this
      letter sets forth our agreement on the subject matter hereof, kindly sign and
      return to the Company the enclosed copy of this letter which will then
      constitute our agreement on this subject.

     

     

    
 

    Sincerely,

    

    BOSTON
      SCIENTIFIC CORPORATION

    

    

    By
      _________________________________ 

    James
      R.
      Tobin

    President
      and Chief Executive Officer

     

     

     

    
 

     

     

    The
      foregoing is accepted and agreed to.

    

    

    __________________________________________

    [Name
      of
      Executive]WWW.EXFILE.COM, INC. -- 14972 -- BOSTON SCIENTIFIC CORP. -- EXHIBIT 10.2 TO FORM 8-K

    Exhibit
      10.2

    

    2007
      PERFORMANCE INCENTIVE PLAN

    

     

    
      	
              I.

            	
              Purpose
                of the Plan

            

    

     

    The
      purpose of the Plan is to align Boston Scientific and employee interests by
      providing incentives for the achievement of key business milestones and
      individual performance objectives that are critical to the success of Boston
      Scientific. To this end, individual performance
      objectives are established during the annual goal setting process. All incentive
      eligible employees are required to develop a set of written, measurable, annual
      goals that are agreed to and approved by their direct manager as part of the
      Performance Achievement and Development Review (PADR) process. Goal setting
      should be completed
      within the required time frame.

     

     

    
      	
              II.

            	
              Eligible
                Participants

            

    

     

    The
      Plan
      year runs from January 1 - December 31. The Plan covers all United States
      employees determined by Boston Scientific to be regular salaried exempt
      (excluding all term employees) employees
      who are ineligible for commissions under any sales compensation plan. The Plan
      also covers those Boston Scientific International and expatriate/inpatriate
      employees selected by Boston Scientific for participation. The Plan does not
      include any other employees, including those in positions covered by sales
      compensation plans. The plan also does not include any employees who are
      eligible for any other Boston Scientific incentive plan or program unless the
      terms of that plan or program expressly permit participation in both that plan
      or program and this Plan. Employees who meet the above eligibility criteria
      and
      who have at least two full months of eligible service during the Plan year
      may
      participate in the Plan on a prorated basis, proration to be based on the
      percentage of time the employee was eligible to participate under all applicable
      criteria and in the following circumstances: if (1) they have less than one
      year
      of eligibility during the Plan year; (2) their incentive target percent has
      changed during the Plan year; or (3) they have changed their business unit
      during the Plan year. Employees who have less than two full months of eligible
      service during the Plan year are not eligible to participate in the Plan. Boston
      Scientific may review Plan participation eligibility criteria from time to
      time
      and may revise such criteria at any time, even within a Plan year, with or
      without notice and within its sole discretion.

     

    Employees
      and managers of those employees who do not timely complete the annual PADR
      goal
      setting process in a given calendar incentive year will be ineligible to
      participate in the Plan for that year.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	III.	
              Boston
                Scientific Performance Measures and Incentive Pool
                Funding

            

    

     

    There
      will be five measurement periods during the Plan year (one for each of the
      four
      calendar quarters and one for the annual Plan year). For each measurement
      period, the Boston Scientific Executive Committee will identify critical
      performance measures and the weighting of total Boston Scientific and
      Group/Division/Region/Country performance (See Performance Measurements and
      Funding document), as well as the incentive pool funding that will be
      established for each level of Boston Scientific and
      Group/Division/Region/Country performance. Each measurement period’s performance
      will be measured against its targets and will be evaluated and funded
      separately. The total annual funding will be the sum of the funding for each
      of
      the five measurement periods.

     

    The
      performance of the operating plants and distribution centers (“Operations”) will
      be measured during the five measurement periods on a year to date basis against
      annual goals; that is, new goals will not be established by measurement period.
      A scorecard has been developed to track leading performance metrics for each
      plant and distribution center. The total funding will be based on cumulative
      BSC
      sales, quality and net income funding for each measurement period, plus the
      latest year to date plant/distribution center metrics and funding. Since goals
      are set on an annual basis, over or under operations metrics achievement in
      a
      given measurement period can be offset by subsequent measurement periods
      reflected in the latest year to date cumulative results.

     

    Except
      as
      noted herein, any payments due to plan participants will be made by March 29,
      of
      the year following the Plan year. Incentive payments are typically paid in
      one
      installment. The unweighted funding levels for Boston Scientific and
      Group/Division/Region/Country and Operations performance will be based on the
      Performance Funding outlined in the Performance Measures and Funding
      document.

     

    The
      Boston Scientific Executive Committee has sole authority over administration
      and
      interpretation of the Plan and retains its right to exercise discretion as
      it
      sees fit. The Boston Scientific Executive Committee will recommend the level
      of
      Plan funding to the Board of Directors for its approval. Subject to the Board’s
      approval, the incentive payment for any participant will be based upon the
      overall funding available and the employee’s overall individual performance
      relative to other Plan eligible employees in the applicable business unit,
      as
      determined by Boston Scientific.

     

     

    
      	
              IV.

            	
              Incentive
                Targets

            

    

     

    Incentive
      targets have been established for all eligible participants. These incentive
      targets represent the incentive (as a percent of base salary) that an individual
      is eligible to receive. Funding calculation examples are contained in the
      Performance Measures and Funding document.

     

    The
      incentive pool (see Performance Measures and Funding document) is funded by
      a
      weighted combination of Boston Scientific’s overall performance and the
      applicable 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Group/Division/Region/Country/Operations
      performance. All incentive eligible employees must have established annual
      goals
      agreed to by their direct manager and which link to their appropriate level
      of
      accountability. An individual participant’s incentive payment will be determined
      based on an assessment of the overall individual performance contribution in
      the
      context of the applicable incentive pool(s).

     

    It
      is
      Boston Scientific’s aim to provide significant incentive and reward
      opportunities to employees for world-class performance achievement. Since our
      business goals (e.g., sales, profit) are normally set at a level above our
      business competitors (aggressive but realistic), we have set our incentive
      targets aggressively as well. The incentive pool for Corporate/business unit
      performance may be funded as high as 120% of target for the calendar quarter
      measurement periods and 200% of target for the annual measurement period. Above
      market rewards can be earned for above market performance.

     

    See
      Performance Measures and Funding document for an Incentive Calculation example.
      Except as noted, nothing in this plan guarantees any incentive payment will
      be
      made to any individual. Receipt of an incentive payment in one year does not
      guarantee eligibility in any future year.

     

     

    
      	V.	
              Individual
                Incentive Payments

            

    

     

    The
      incentive payment for any eligible employee may vary from the approved and
      applicable incentive pool funding based on that individual’s overall performance
      and achievement of objectives relative to other eligible employees in the
      applicable business unit. However, the total of incentive payments to all
      eligible individuals may not exceed the total applicable funding
      pool(s).

     

     

    
      	
              VI.

            	
              Payment
                Criteria

            

    

     

    A
      participant must be employed by Boston Scientific on December 31 of the Plan
      year to be eligible to receive any award pay-out under the Plan. For example,
      a
      participant who is not required to report to work during any notification period
      applicable under any Boston Scientific severance or separation plan, but who
      is
      still an employee on December 31, will remain eligible to receive any award
      pay-out under the Plan. A participant who specifically has been exempted under
      a
      specially designed, written Boston Scientific plan or program from the
      requirement to be employed on December 31 may remain eligible, depending on
      the
      terms of the applicable written plan document; in such cases, the terms of
      such
      written plan document will govern in all respects, including as to eligibility,
      timing and amount of any incentive payment. Notwithstanding anything herein,
      this Plan does not confer eligibility on any employee on leave of absence
      status. Also notwithstanding anything herein, a participant whose employment
      ceases prior to December 31 of the Plan year but who has otherwise met all
      Plan
      eligibility criteria and who, as of the date of such cessation of employment,
      (1), has attained age 50, (2) has accrued at least five years of service with
      Boston Scientific; and (3) whose age and years of service as of such date equals
      or exceeds 62, may participate in the Plan on a prorated

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    basis,
      proration to be based on the percentage of time the participant was employed
      and
      eligible to participate under all applicable criteria; further, a participant
      whose employment ceases prior to December 31 of the Plan year by reason of
      death
      but who otherwise met all Plan eligibility criteria may participate in the
      Plan
      on a prorated basis, proration to be based on the percentage of time the
      participant was employed and eligible to participate under the applicable
      criteria. 

     

    Except
      as
      noted above, all incentive payments will be based on a participant’s average
      salary level for the Plan year. Incentive payments will be made by March 29
      of
      the year following the Plan year. 

     

     

    
      	
              VII.

            	
              Incentive
                Compensation Recoupment
                Policy

            

    

    

    Effective
      for compensation awards made on or after February 20, 2007, to the extent
      permitted by governing law, the Board will seek reimbursement of incentive
      compensation paid to any executive officer in the event of a restatement of
      the
      Company’s financial results that reduced a previously granted award’s size or
      payment. In that event, we will seek to recover the amount of the performance
      incentive award paid to the executive officers which is in excess of the amounts
      that would have been paid based on the restated financial results.

    

    

    
      	VIII.	
              Termination,
                Suspension or Modification and Interpretation of the
                Plan

            

    

     

    Boston
      Scientific may terminate, suspend or modify and if suspended, may reinstate
      with
      or without modification all or part of the Plan at any time, with or without
      notice to the participant. Boston Scientific reserves the exclusive right to
      determine eligibility to participate in this Plan and to interpret all
      applicable terms and conditions, including eligibility criteria.

     

     

    
      	IX.	
              Other

            

    

     

    This
      document sets forth the terms of the Plan and is not intended to be a contract
      or employment agreement between the participant and Boston Scientific. As
      applicable, it is understood that both the participant and Boston Scientific
      have the right to terminate the participant’s employment with Boston Scientific
      at any time, with or without cause and with or without notice, in
      acknowledgement of the fact that their employment relationship is “at
      will.”

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