Document:

Exhibit 10.2

 

	
  Notice
  of Grant of

  	
   

  	
  Cephalon, Inc.

  
	
  Non-Qualified
  Stock Option

  	
   

  	
  41
  Moores Road

  
	
   

  	
   

  	
  Frazer,
  PA 19355

  
	
   

  	
   

  	
   

  
	
  Grantee
  Name & Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Plan:                   2004 Equity Compensation
  Plan

  

 

Effective
as of XX/XX/XXXX (“Date of Grant”), you have been granted a Non-Qualified Stock
Option (“Option”) to purchase XXXX shares of the common stock of Cephalon, Inc.
(“Shares”) under the Cephalon, Inc. 2004 Equity Compensation Plan (the “Plan”)
at an exercise price of $XX.XX per Share.

 

Unless
otherwise provided in the corresponding Grant Agreement or the Plan, the Option
shall become exercisable according to the following schedule, provided you are
employed by Cephalon, Inc. (“Company”) or a subsidiary of the Company, on
the applicable Exercisability Date:

 

	
  Exercisability Date

  	
   

  	
  Portion of Option Exercisable 

  on or after Exercisability Date

  	
   

  
	
  First
  Anniversary of the Date of Grant

  	
   

  	
  25

  	
  %

  
	
  Second
  Anniversary of the Date of Grant

  	
   

  	
  25

  	
  %

  
	
  Third
  Anniversary of the Date of Grant

  	
   

  	
  25

  	
  %

  
	
  Fourth
  Anniversary of the Date of Grant

  	
   

  	
  25

  	
  %

  

 

The
exercisability of the Option is cumulative, but shall not exceed 100% of the
Shares subject to the Option.  If the
foregoing schedule would produce fractional Shares, the number of Shares for
which the Option becomes exercisable shall round down to the nearest whole
Share.  The Option shall become fully
exercisable on the Fourth Anniversary of the Date of Grant, provided you are
employed by the Company or a subsidiary of the Company on such date.

 

The
Option will have a term of ten years from the Date of Grant and, therefore,
will remain exercisable until xx/xx/xxxx unless terminated on an earlier date
as set forth in the Grant Agreement or the Plan.

 

To
accept this Option and acknowledge your agreement to the terms and conditions
of the Option, you must click on the “Accept” box below.

 

By
accepting this Option, you accept the Option described in this Notice of Grant
of Non-Qualified Stock Option and the corresponding Grant Agreement and the
Plan, and agree to be bound by the terms and conditions of this Notice of Grant
of Non-Qualified Stock Option and the Grant Agreement and the Plan, each of
which is made part of this Notice of Grant of Non-Qualified Stock Option.  By accepting this Option, you also agree that
all of the decisions and determinations of the Committee (as defined in the
Plan) and the Company’s Board of Directors, as applicable, with respect to this
Option are final and binding.

 

In
addition, by accepting this Option you hereby certify to the following:

·                  I have read and understand the Company’s
Policy Statement on Securities Traded by Cephalon Personnel (updated July 2008)
(the “Policy Statement”) and have retained a copy for my records.  I also understand that Todd Longsworth,
Senior Counsel, is available to answer any questions regarding the Policy
Statement.

·                  Since the date of my last certification (or
for new employees, since the date I became an employee of the Company or a
subsidiary), I have complied with the Policy Statement.

·                  I will continue to comply with the Policy
Statement for as long as I am subject to it.

 

 

GRANT AGREEMENT

 

THIS
GRANT AGREEMENT (the”Agreement”) sets forth the terms and conditions of the
non-qualified stock option that has been granted to you pursuant to the
corresponding Notice of Grant of Non-Qualified Stock Option (the “Notice”)
effective as of the Date of Grant (as defined in the Notice).

 

1.                                     Grant
of Option.

 

Subject
to the terms and conditions set forth in the Notice, this Agreement and the
Cephalon, Inc. 2004 Equity Compensation Plan (the “Plan”), Cephalon, Inc.
(the “Company”) has granted to you, as of the Date of Grant, a non-qualified
stock option (the “Option”) to purchase the number of shares of common stock of
the Company as listed in the Notice (the “Shares”) at the exercise price per
Share (the “Exercise Price”) set forth in the Notice.  This Option will become exercisable as
described in Section 2, below.

 

2.                                     Dates
of Exercise.

 

Unless
otherwise provided in this Agreement, this Option will become exercisable in
accordance with the exercisability schedule set forth in the Notice, provided
that you are employed by the Company or a subsidiary of the Company
(collectively, the “Employer”) on the applicable date.

 

3.                                     Term
of Option.

 

(a) 
This Option will terminate at the close of business on the date specified in
the Notice (“Expiration Date”), unless it is terminated at an earlier date
pursuant to the provisions of the Notice, this Agreement or the Plan.

 

(b) 
This Option shall automatically terminate upon the happening of the first of
the following events:

 

(i)                                     Should you
terminate employment with the Employer (other than by reason of retirement (as
defined below), death, permanent disability (as defined below) or termination
for cause (as defined below)), this Option will, solely to the extent that it
is exercisable immediately prior to such termination of employment, remain
exercisable during the three-month period following the date of such
termination of employment; provided, however, that in no event will this Option
be exercisable at any time after the Expiration Date.   Notwithstanding the foregoing, if, at the
time of your termination of employment, you are unable to sell the Shares
acquired upon 

 

 

exercise
of the Option (i) without liability under Section 16(b) of the
Securities Exchange Act of 1934, as amended (or any successor provision) (“Section 16(b)”)
or (ii) because you are in possession of material non-public information
about the Employer (“Non-public Information”), then the three-month period referred
to in the preceding sentence shall not commence until the later of the first
day that you may sell such Shares without liability under Section 16(b) or
the first day that you are not in possession of Non-public Information;
provided, however, that in no event will this Option be exercisable at any time
after the Expiration Date.

 

(ii)                                  Should you
terminate employment with the Employer on account of retirement, this Option
will, solely to the extent that it is exercisable immediately prior to such
termination of employment, remain exercisable until the Expiration Date.  You will be deemed to cease to be an employee
of the Employer on account of retirement if you resign as an employee of the
Employer on or after you have attained age 55 and completed 10 years of service
with the Employer.

 

(iii)                               Should you
become permanently disabled and terminate employment with the Employer, this
Option will, solely to the extent that it is exercisable immediately prior to
such termination of employment, remain exercisable during the one-year period
following the date of such termination of employment; provided, however, in no
event will this Option be exercisable at any time after the Expiration
Date.  You will be deemed to be “permanently
disabled” if you are, by reason of any medically determinable physical or
mental impairment expected to result in death or to be of continuous duration
of not less than one year, unable to engage in any substantial gainful
employment.

 

(iv)                              Should you die
while employed by the Employer, this Option, to the extent it is at the time
outstanding under this Plan, shall automatically accelerate and become fully
exercisable as to all Shares subject to the Option and shall remain exercisable
until the Expiration Date.  In addition,
if you die during the three-month period referred to in clause (i) or
during the one-year period referred to in clause (iii), this Option shall
remain exercisable until the Expiration Date. 
Your executors or administrators of estate or heirs or legatees (as the
case may be) will have the right to exercise this Option, during the remainder
of the term of this Option.

 

(v)                                 Should your
employment with the Employer be terminated for cause (including, but not
limited to, any act of dishonesty, unethical conduct, willful misconduct, fraud
or embezzlement, or any unauthorized disclosure of confidential information or
trade secrets), this Option, whether 

 

 

exercisable
or not, will immediately terminate and cease to be exercisable when notice of
termination of employment is given.

 

Any
portion of this Option that is not exercisable when you terminate employment
with the Employer shall immediately terminate as of such date.

 

4.                                     Privilege
of Stock Ownership.

 

The
holder of this Option will have none of the rights of a stockholder with
respect to the Shares until such individual has exercised the Option and has
been issued a stock certificate for the Shares.

 

5.                                     Option
Nontransferable.

 

This
Option is not transferable or assignable by you other than by will or by the
laws of descent and distribution, and during your lifetime, this Option is
exercisable only by you.  Any attempt to
transfer or assign this Option by you will be deemed null, void and without
effect.  The rights and protections of
the Company hereunder shall extend to any successor or assigns of the Company
and to the Company’s parents, subsidiaries and affiliates.  This Agreement and the Notice may be assigned
by the Company without your consent.

 

6.                                     Manner
of Exercising Option.

 

In
order to exercise all or any part of the Shares that are exercisable, you (or
in the case of exercise after your death, the executor, administrator, heir or
legatee, as the case may be) must take the following actions:

 

(a)                                  Provide notice
of intent to exercise by executing those materials issued by the Company and/or
its designated administrator.  The
instructions should contain, at a minimum, payment method, number of Shares
subject to this Option to be exercised, Exercise Price per Share and Date of
Grant.

 

(b)                                 Pay the
aggregate Exercise Price, plus applicable withholding taxes, for the Shares to
be purchased in accordance with procedures established by the Committee (as
defined in the Plan) from time to time based on type of payment being made but,
in any event, prior to the issuance of the Shares

 

(c) You
may pay the Exercise Price and applicable withholding taxes in one or more of
the following alternative forms:  (i) full
payment, in cash or by check payable as required in the amount of the exercise
price for the Shares 

 

 

being
purchased and applicable withholding taxes; (ii) full payment in Shares
held for at least six months and having an aggregate fair market value on the
day of exercise (as determined under the terms of the Plan) equal to the
exercise price for the Shares being purchased and ; (iii) a combination of
Shares held for at least six months and valued at fair market value on the day
of exercise (as determined under the terms of the Plan) and cash or check
payable as per the Company’s instruction, equal in the aggregate to the
Exercise Price and applicable withholding taxes for the Shares being purchased;
or (iv) to the extent permitted by applicable law, by such other method as
the Committee may approve; and

 

(d)                                 In the event of
your death, the person or persons exercising the Option must furnish the
Company with appropriate documentation that they have the right to exercise
this Option.

 

7.                                     Certain
Company Transactions.

 

The
provisions of the Plan applicable to a Change of Control (as defined in the
Plan) and Corporation Transaction (as defined in the Plan) shall apply to the
Option, and, in the event of a Change of Control and Corporation Transaction,
the Committee may take such actions as it deems appropriate pursuant to the
Plan.

 

8.                                     Compliance
with Laws and Regulations.

 

(a)                                  The exercise of
this Option and the issuance of Shares upon such exercise is subject to
compliance by the Company and you with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange on
which the Shares may be listed at the time of such exercise and issuance.

 

(b)                                 In connection
with the exercise of this Option, the Company may require you (or in the case
of exercise after your death, your executor, administrator, heir or legatee, as
the case may be) to execute and deliver to the Company such representations in
writing as may be requested by the Company so that it may comply with the
applicable requirements of federal and state securities laws.

 

(c)                                  All obligations
of the Company under this Agreement and the Notice shall be subject to the
rights of the Company as set forth in the Plan to withhold amounts required to
be withheld for any taxes that result from your (or in the case of exercise
after your death, your executor, administrator, heir or legatee, as the case
may be) exercise of the Option.

 

 

9.                                     Liability
of Company.

 

The
inability of the Company to obtain approval from any regulatory body having
authority deemed by the Company to be necessary to the lawful issuance and sale
of any Shares pursuant to this Option will relieve the Company of any liability
with respect to the non-issuance or sale of the Shares as to which such
approval is not obtained.

 

10.                               No
Employment Contract.

 

Nothing
in this Agreement, the Notice or in the Plan confers upon you any right to
continue in the employ of the Employer or interferes with or restricts in any
way the rights of the Employer, which are hereby expressly reserved, to
discharge you at any time for any reason or no reason, with or without cause.  Except to the extent the terms of any
employment contract between you and the Employer expressly provide otherwise,
neither the Company nor any of its subsidiaries is under any obligation to
continue your employment for any period of specified duration.

 

11.                               Notices.

 

Any
notice required to be given or delivered to the Company under the terms of this
Agreement will be in writing and addressed to the Company in care of its
Executive Vice President & Chief Administrative Officer at its
corporate office at 41 Moores Road, Frazer, Pennsylvania, 19355.  Any notice required to be given or delivered
to you will be in writing and addressed to you at the address provided on the
notice of grant or such other address provided in writing by you to the
Employer.  All notices will be deemed to
have been given or delivered upon personal delivery or upon deposit in the U.S.
mail, postage prepaid and properly addressed to the party to be notified.

 

12.                               Grant
Subject to Plan Provisions

 

The
grant of this Option is made pursuant to the Plan, the terms of which are
incorporated herein by reference, and in all respects shall be interpreted in
accordance with the Plan.  The grant and
exercise of this Option are subject to interpretations, regulations and
determinations concerning the Plan established from time to time by the
Committee in accordance with the provisions of the Plan, including, but not
limited to, provisions pertaining to (i) the registration, qualification
or listing of the Shares, (ii) changes in capitalization of the Company,
and (iii) other requirements of applicable law.  The Committee shall have the authority to
interpret and construe this 

 

 

Option
pursuant to the terms of the Plan, and its decisions shall be conclusive and
binding on all persons having an interest in this Option.

 

13.                               Governing
Law.

 

The
interpretation, performance and enforcement of this Agreement, the Notice and
the Plan will be governed by the laws of the Commonwealth of Pennsylvania,
without giving effect to the conflicts of laws provisions thereof.

 

“Accept”Exhibit 10.3

 

	
  Notice
  of Grant of

  	
  Cephalon, Inc.

  
	
  Restricted
  Stock Award

  	
  41
  Moores Road

  
	
   

  	
  Frazer,
  PA 19355

  
	
   

  	
   

  
	
  Grantee
  Name & Address

  	
   

  
	
   

  	
   

  
	
   

  	
  Plan:      2004 Equity Compensation Plan

  

 

Effective as of XX/XX/XXXX (“Date
of Grant”), you have been granted the right to receive *** shares of the common
stock of Cephalon, Inc. (“Shares”) pursuant to a Restricted Stock Grant (“Award”)
under the Cephalon, Inc. 2004 Equity Compensation Plan.

 

The restrictions on the
Shares lapse according to the following schedule, provided you are employed by
Cephalon, Inc. (“Company”) or a subsidiary of the Company, on the
applicable Vesting Date.  If your
employment terminates prior to the applicable Vesting Date, you will forfeit
any Shares for which the restrictions have not lapsed as of your termination
date, unless otherwise provided in the Grant Agreement.

 

	
  Vesting Date

  	
   

  	
  Vest %

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First Anniversary of the
  Date of Grant

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Second Anniversary of the
  Date of Grant

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Third Anniversary of the
  Date of Grant

  	
   

  	
  25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Fourth Anniversary of the
  Date of Grant

  	
   

  	
  25

  	
  %

  

 

The vesting of the Shares
subject to the Award is cumulative, but shall not exceed 100% of the Shares
subject to the Award.  If the foregoing
schedule would produce fractional Shares, the number of Shares for which the
Award becomes vested shall be rounded down to the nearest whole Share.  The Award shall become fully vested on the
Fourth Anniversary of the Date of Grant, provided that you are employed by the
Company or a subsidiary of the Company on such date.

 

To accept this Award and
acknowledge your agreement to the terms and conditions of the Award, you must
click on the box below “Accept Award.”

 

By accepting this Award, you
accept the Award described in this Notice of Grant of Restricted Stock Award and
the corresponding Grant Agreement and the Plan, and agree to be bound by the
terms and conditions of this Notice of Grant of Restricted Stock Award and the
Grant Agreement and the Plan, each of which is made part of this Notice of
Grant of Restricted Stock Award.  By
accepting this Award, you also agree that all of the decisions and
determinations of the Committee (as defined in the Plan) 

 

 

and the Company’s Board of
Directors, as applicable, with respect to the Award are final and binding.

 

In addition, by accepting
this Award you hereby certify to the following:

·                  I have read and understand
the Company’s Policy Statement on Securities Traded by Cephalon Personnel
(updated July 2008) (the “Policy Statement”) and have retained a copy for
my records.  I also understand that Todd
Longsworth, Senior Counsel, is available to answer any questions regarding the
Policy Statement.

·                  Since the date of my last
certification (or, for new employees, since the date I became an employee of
the Company or a subsidiary) I have complied with the Policy Statement.

·                  I will continue to comply
with the Policy Statement for as long as I am subject to it.

 

 

GRANT AGREEMENT

 

This GRANT AGREEMENT (the “Agreement”)
sets forth the terms and conditions of the restricted stock award that has been
granted to you pursuant to the corresponding Notice of Grant of Restricted
Stock Award (the “Notice”) effective as of the Date of Grant (as defined in the
Notice).

 

1.             Grant of Restricted Stock.

 

Subject
to the terms and conditions set forth in the Notice, this Agreement and the
2004 Equity Compensation Plan (the “Plan”), Cephalon, Inc. (the “Company”)
has granted to you, as of the Date of Grant, the right to receive the number of
shares of the Company’s common stock (the “Shares”) as listed in the Notice,
subject to the restrictions set forth below and in the Notice and the Plan (the
“Restricted Stock”).  Shares of
Restricted Stock may not be transferred by you or subjected to any security
interest until the Shares have become vested pursuant to this Agreement, the
Notice and the Plan.  The Shares will become
vested as described in the Notice and Paragraph 2 below.

 

2.             Restrictions.

 

(a)           Vesting
Period.  Unless otherwise provided in this Agreement,
the Shares of Restricted Stock shall become vested, and the restrictions described
in Paragraph 2(d) below shall lapse, in accordance with the vesting
schedule set forth in the Notice, provided that you are employed by the Company
or a subsidiary of the Company (collectively, the “Employer”) on the applicable
vesting date.  The period before the
Shares subject to the Restricted Stock vest is referred to herein as the “Restriction
Period”.

 

(b)           Termination
of Employment Other than on Account of Death.  Should your employment with the Employer terminate
for any reason other than by reason of your death before the Restricted Stock
is fully vested, the Shares of Restricted Stock that are not then vested shall
be forfeited and you shall have no further rights with respect to such Shares
of Restricted Stock.

 

(c)           Termination
of Employment on Account of Death.  Should your employment with the Employer
terminate on account of your death, the Shares subject to the Restricted Stock
that have not then vested shall become vested as of the date of your death and
the restrictions described in Paragraph 2(d) below shall lapse.

 

(d)           Restrictions on Transfer; Shares
Subject to Forfeiture.  During the
Restriction Period, you may not sell, assign, transfer, pledge or otherwise
dispose of any portion of the Shares that are subject to the Restriction
Period.  Any attempt to sell, assign,
transfer, pledge or otherwise dispose of such Shares contrary to the provisions
hereof, 

 

 

and the levy of
any execution, attachment or similar process upon the Shares, shall be null,
void and without effect.

 

3.             Issuance of Stock Certificates.

 

Unless the Shares are
forfeited pursuant to Paragraph 2, at the end of the applicable Restriction
Period, you will be entitled to receive an unrestricted certificate
representing the Shares that have become vested.

 

4.             Privilege of Stock Ownership.

 

You
will have none of the rights of a stockholder (including no right to vote or to
receive any cash or other dividends declared on such Shares), with respect to
any Shares, until the Restriction Period has expired with respect to the
Shares.

 

5.             Certain Company Transactions.

 

The provisions of the Plan applicable to a Change of Control (as
defined in the Plan) and a Corporate Transaction (as defined in the Plan) shall
apply to the Shares, and, in the event of a Change of Control or Corporate
Transaction, the Committee (as defined in the Plan) may take such actions as it
deems appropriate pursuant to the Plan.

 

6.             Withholding.

 

You shall be required to pay to the Company, or make other arrangements
satisfactory to the Company to provide for the payment of, any federal, state,
and local or other taxes that the Employer is required to withhold with respect
to the grant or vesting of the Shares.  You
may make an election to satisfy any income tax withholding obligation with respect
to the Shares by having Shares withheld up to an amount that does not exceed your
minimum applicable withholding tax rate for federal (including FICA), state and
local tax liabilities.  Such election
must be in the form and manner prescribed by the Committee.  If you are a director or officer (within the
meaning of Rule 16a-1(f) promulgated under the Securities Exchange
Act of 1934, as amended), such election must be irrevocable and must be made
six months prior to the date on which all restrictions lapse with respect to
such Shares.

 

7.             Compliance with
Laws and Regulations.

 

(a)           The obligations of the Company to
deliver Shares upon the vesting of the Restricted Stock pursuant to this
Agreement shall be subject to the condition that if at any time the Committee
shall determine, in its discretion, that the listing, registration or
qualification of the Shares upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body is
necessary or desirable as a condition of, or in connection with, the issuance of
such Shares, the Shares may not be issued in whole or in part unless such
listing, 

 

 

 

registration,
qualification, consent or approval shall have been effected or obtained free or
any conditions not acceptable to the Committee. The issuance of Shares to you
pursuant to this Agreement is subject to applicable taxes and other laws and
regulations of the United States or any state having jurisdiction thereof.

 

(b) 
You agree to be bound by the Company’s policies regarding the transfer of shares
of the Company’s common stock and understand that there may be certain times
during the year in which you will be prohibited from selling, transferring,
pledging, donating, assigning, mortgaging, hypothecating or encumbering shares
after the applicable restrictions have lapsed. 
In addition, in connection with this grant, the Company may require you
(or, in the case of your death, your executor, administrator, heir or legatee,
as the case may be) to execute and deliver to the Company such representations
in writing as may be requested by the Company so that it may comply with the
applicable requirements of federal and state securities laws.

 

8.             No Employment Contract.

 

Nothing
in the Agreement, the Notice or in the Plan confers upon you any right to continue
in the employ or service of the Employer or interferes with or restricts in any
way the rights of the Employer, which are hereby expressly reserved, to
discharge you at any time for any reason or no reason, with or without
cause.  Except to the extent the terms of
any employment contract between you and the Employer expressly provides
otherwise, neither the Company nor any of its subsidiaries is under any
obligation to continue your employment for any period of specified duration.

 

9.             Notices.

 

Any
notice required to be given or delivered to the Company under the terms of this
Agreement will be in writing and addressed to the Company in care of its
Executive Vice President and Chief Administrative Officer at its corporate
office at 41 Moores Road; Frazer, Pennsylvania 19355.  Any notice required to be given or delivered
to you will be in writing and addressed to you at the address provided on the
Notice or such other address provided in writing by you to the Employer.  All notices will be deemed to have been given
or delivered upon personal delivery or upon deposit in the U.S. mail, postage
prepaid and properly addressed to the party to be notified.

 

 

10.          Assignment.

 

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

 

11.          Grant Subject to Plan Provisions.

 

This
grant is made pursuant to the Plan, the terms of which are incorporated herein
by reference, and in all respects shall be interpreted in accordance with the
Plan.  Capitalized terms not otherwise
defined herein or in the Notice that are defined in the Plan shall have the
meaning specified in the Plan.  This
grant is also subject to the interpretations, regulations and determinations
concerning the Plan established from time to time by the Committee in
accordance with the provisions of the Plan, including, but not limited to,
provisions pertaining to (i) rights and obligations with respect to
withholding taxes, (ii) the registration, qualification or listing of the
Shares, (iii) changes in capitalization of the Company, and (iv) other
requirements of applicable law.  The
Committee shall have the authority to interpret and construe this grant
pursuant to the terms of the Plan, this Agreement and the Notice, and all
decisions of the Committee with respect to any question or issue arising under
the Plan, this Agreement or the Notice, shall be conclusive and binding on all
persons having an interest in this grant.

 

12.          Governing Law.

 

The
interpretation, performance and enforcement of this Agreement, the Notice and
the Plan will be governed by the laws of the Commonwealth of Pennsylvania
without giving effect to the conflicts of laws provisions thereof.

 

Accept

Award

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]