Document:

EXHIBIT 10.3

 

	
  2005 NSO 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Shares

  	
   

  

 

BENTLEY PHARMACEUTICALS, INC.

 

2005 Equity and Incentive Plan

 

Non-Statutory Stock Option Certificate

 

Bentley Pharmaceuticals, Inc.
(the “Company”), a Delaware corporation, hereby grants to the person named
below an option to purchase shares of Common Stock, $0.02 par value per share,
of the Company (the “Option”) pursuant to and subject to the Company’s 2005
Equity and Incentive Plan (the “Plan”) (all such terms and conditions of the
Plan being incorporated herein by reference as fully as if set forth herein),
exercisable on the following terms and conditions including
those set forth on the reverse side of this Certificate:

 

	
  Name of
  Optionholder:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Social Security
  No:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  No. of
  Shares:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Option Price:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exercisability
  Schedule:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
   

  	
   

  	
   

  
					

 

This Option shall not
be treated as an Incentive Stock Option under section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

By acceptance of this
Option, the Optionholder agrees to all the terms and conditions hereof
including, without limitation, those set forth in the Plan and on the reverse
side hereof.

 

	
   

  	
  BENTLEY
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  ACCEPTED AND
  AGREED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Optionholder

  	
   

  

 

 

BENTLEY PHARMACEUTICALS, INC. 2005 EQUITY AND
INCENTIVE PLAN

Non-Statutory Stock Option Terms and Conditions

 

1.              Plan
Incorporated by Reference. 
This Option is issued pursuant to the terms of the Plan and may be amended
as provided in the Plan.  Capitalized
terms used and not otherwise defined in this certificate have the meanings
given to them in the Plan. This certificate does not set forth all of the terms
and conditions of the Plan, which are incorporated herein by reference.  The Committee administers the Plan and its
determinations regarding the operation of the Plan are final and binding.  Copies of the Plan may be obtained upon written
request without charge from the Secretary of the Company.

 

2.              Option
Price.  The price to be
paid for each share of Common Stock issued upon exercise of the whole or any
part of this Option is the Option Price set forth on the face of this
certificate.

 

3.              Exercisability
Schedule.  This Option may
be exercised at any time and from time to time for the number of shares and in
accordance with the exercisability schedule set forth on the face of this
certificate, but only for the purchase of whole shares.  This Option may not be exercised as to any
shares after the Expiration Date.

 

4.              Method of
Exercise. To exercise this Option, the Optionholder shall
deliver written notice of exercise to the Company specifying the number of
shares with respect to which the Option is being exercised, accompanied by
payment in full of the Option Price for such shares. Such payment may be made
in whole or in part in cash or to the extent permitted by the Committee at or
after the grant of the Option, pursuant to any of the following methods: (i) by
actual delivery and transfer, or attestation of ownership and delivery of a
valid instrument of transfer, to the Company of shares of Common Stock owned by
the Optionholder, including vested Restricted Stock, (ii) by retaining
shares of Common Stock otherwise issuable pursuant to the Option, (iii) for
consideration received by the Company under a broker-assisted cashless exercise
program acceptable to the Company, or (iv) for such other lawful
consideration as the Committee may determine. Promptly following such notice,
the Company will deliver to the Optionholder a certificate representing the
number of shares with respect to which the Option is being exercised.

 

5.              Rights as
a Stockholder or Employee. 
The Optionholder shall not have any rights in respect of shares as to
which the Option shall not have been exercised and payment made as provided
above.  The Optionholder shall not have
any rights to continued employment or service by the Company or its Affiliates
by virtue of the grant of this Option.

 

6.              Change in
Control.  As provided in
the Plan, in the event of a Change in Control affecting the Company’s
outstanding Common Stock, the Committee shall equitably adjust the number and
kind of shares subject to this Option and the exercise price hereunder or make
provision for a cash payment. If such Change in Control involves a
consolidation or merger of the Company with another entity, the sale or
exchange of all or substantially all of the assets of the Company or a
reorganization or liquidation of the Company, then in lieu of the foregoing,
the Committee may upon written notice to the Optionholder provide that this
Option shall terminate on a date not less than 20 days after the date of such
notice unless theretofore exercised. In connection with such notice, the
Committee may in its discretion accelerate or waive any deferred exercise
period.

 

7.              Option
Not Transferable.  This
Option is not transferable by the Optionholder otherwise than by will or the
laws of descent and distribution, and is exercisable during the Optionholder’s
lifetime only by the Optionholder or the Optionholder’s guardian or legal
representative. The naming of a Designated Beneficiary does not constitute a
transfer.

 

8.              Exercise
of Option After Termination of Employment.  If the Optionholder’s status as an employee
or consultant of (a) the Company, (b) an Affiliate, or (c) a
corporation (or parent or subsidiary corporation of such corporation) issuing
or assuming a stock option in a transaction to which section 424(a) of
the Code applies, is terminated for any reason other than by disability (within
the meaning of section 22(e)(3) of the Code) or death, the
Optionholder may exercise the rights which were available to the Optionholder
at the time of such termination only within three months following the date of
termination.  If such status is
terminated as a result of disability, such rights may be exercised within one
year from the date of termination.  Upon
the death of the Optionholder, his or her Designated Beneficiary shall have the
right, at any time within one year after the date of death, to exercise in
whole or in part any rights that were available to the Optionholder at the time
of death.  Notwithstanding the foregoing,
no rights under this Option may be exercised after the Expiration Date.  The aforesaid three-month and one-year periods
may be extended by the Committee in its sole discretion up to the Expiration
Date of the option.  If an Optionholder’s
employment relationship with the Company or any Affiliate is terminated for
cause (as defined by the Committee in its sole discretion), all such
Optionholder’s options shall terminate immediately and be of no further force
or effect.  Whether authorized leaves of
absence or absence on military or governmental service may constitute
termination for purposes of the Plan shall be conclusively determined by the
Committee.  Nothing in the Plan or in any
option granted thereunder shall be deemed to give the Optionholder the right to
continue his or her employment with the Company or any of its Affiliates or
shall be deemed to interfere in any way with the right of the Company to
terminate any Optionholder’s employment relationship at any time and for any
reason.  Options granted under the Plan
shall not be affected by any change of employment among the Company and its
Affiliates so long as the Optionholder continues to have an employment
relationship with the Company or one of its Affiliates.

 

9.              Compliance
with Securities Laws.  It
shall be a condition to the Optionholder’s right to purchase shares of Common
Stock hereunder that the Company may, in its discretion, require (a) that
the shares of Common Stock reserved for issue upon the exercise of this Option
shall have been duly listed, upon official notice of issuance, upon any
national securities exchange or automated quotation system on which the Company’s
Common Stock may then be listed or quoted, (b) that either (i) a
registration statement under the Securities Act of 1933 with respect to the
shares shall be in effect, or (ii) in the opinion of counsel for the
Company, the proposed purchase shall be exempt from registration under that Act
and the Optionholder shall have made such undertakings and agreements with the
Company as the Company may reasonably require, and (c) that such other
steps, if any, as counsel for the Company shall consider necessary to comply
with any law applicable to the issue of such shares by the Company shall have
been taken by the Company or the Optionholder, or both.  The certificates representing the shares
purchased under this Option may contain such legends as counsel for the Company
shall consider necessary to comply with any applicable law.

 

10.       Payment
of Taxes.  The
Optionholder shall pay to the Company, or make provision satisfactory to the
Company for payment of, any taxes required by law to be withheld with respect
to the exercise of this Option.  The
Committee may, in its discretion, require or permit any other federal or state
taxes imposed on the Optionholder on the exercise of this option or the sale of
the shares to be paid by the Optionholder. 
In the Committee’s discretion, such tax obligations may be paid in whole
or in part in shares of Common Stock, including shares retained from the
exercise of this Option, valued at their Fair Market Value on the date of
delivery.  The Company and its Affiliates
may, to the extent permitted by law, deduct any such tax obligations from any
payment of any kind otherwise due to the Optionholder.

 

Adopted 05/24/2005Exhibit 10.1

 

TYCO
INTERNATIONAL LTD.

DEFERRED COMPENSATION PLAN FOR DIRECTORS

 

Effective
June 1, 2003

 

 

Section 1.              Definitions

 

The following words and terms shall have the indicated meanings
wherever they appear in the Plan:

 

1.1           “Account” shall mean the separate account established under
the Plan for each Participant.

 

1.2           “Administrator” shall mean the person or persons named as
such by the Committee or its designee.

 

1.3           “Annual Deferral Amount” shall mean that portion of a
Participant’s compensation that a Participant elects to have and is actually
deferred for any calendar year.  All
deferrals are made in U.S. dollars.

 

1.4           “Board of Directors,”  “Directors,” or
“Director” shall mean, respectively,
the Board of Directors, the Directors, or a Director of the Company.  Director shall also mean any former Director
during the period immediately following service as a Director while he is in
the role of a paid advisor.

 

1.5           “Code” shall mean the Internal Revenue Code of 1986, as
amended.

 

1.6           “Committee” shall mean the Compensation Committee of the
Board of Directors.

 

1.7           “Company” shall mean Tyco International Ltd.

 

1.8           “Notice Form” shall mean the form attached hereto and marked
as Exhibit A or any other document which incorporates information
substantially similar to Exhibit A.

 

1.9           “Participant” shall mean each non-employee Director of the
Company who participates in the Plan in accordance with its terms and
conditions.

 

1.10         “Plan” shall mean the Tyco International Ltd. Deferred
Compensation Plan for Directors as set forth herein, or as it may be amended
from time to time by the Board of Directors.

 

1.11         “Time Certain Payout” shall mean the payout set forth in Section 4.

 

1.12         “Trust” shall mean the trust arrangement, if any, between
the Company and the trustee named therein, as amended from time to time.

 

Section 2.              Participation

 

2.1           Each
non-employee Director is eligible to participate in the Plan.

 

2.2           (a) A
Director, or a nominee for that office, may elect to participate in the Plan by
giving a properly completed Notice Form to the Administrator.  The effective date of

 

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participation in the Plan for a Participant shall be
the first of the month next following the date that the Administrator receives
a properly completed Notice Form.  Such
election shall remain in effect until (x) the termination of the Participant’s
services as a Director, or (y) he provides a subsequent Notice Form to the
Administrator requesting the termination or the modification of such election.

 

(b) An
election to modify a prior election to defer compensation shall operate only
for compensation not yet earned or paid. 
Accordingly, such an election shall be effective as of the first of the
month immediately following the date on which the Administrator receives a
properly completed Notice Form.  An
election to terminate a prior election can be made at any time.  After such termination, a re-election to
start deferrals is treated like a modification provided, however, that such election
shall not be effective sooner than six months following the date on which
occurs the prior termination of deferrals.

 

(c) A
Participant may change his beneficiary at any time by providing a Notice Form to
the Administrator.  A Participant may
change the time of distribution of compensation at any time by providing a
Notice Form to the Administrator; however, such change shall apply only to
deferrals beginning with the calendar year immediately following the valid
filing of such change.

 

Section 3.              Compensation
Deferred

 

3.1           A
Participant may elect that the payment of all or a specified portion of the
compensation otherwise payable to him in cash only for services as a Director
be deferred until such time as elected by the Participant pursuant to the terms
of this Plan.  Such compensation includes
retainer and meeting fees for service on the Board but does not include travel
expense allowance or any other expense reimbursement.  At the time of making any such election, a
Participant shall elect that such compensation be deferred and credited to his
Account.  Any compensation earned by a
Director that is not deferred under the Plan shall be paid to the Director in
accordance with normal Company policy.

 

3.2           At
the time that a Participant makes an election to defer compensation under the
Plan, the Participant shall elect the manner in which the Annual Deferral
Amount shall be deemed to be invested under the Plan.  The Participant shall elect between the
hypothetical investment alternatives made available under the Plan as described
in Section 3.3 below.  The
Participant may change and/or make new investment elections in accordance with
procedures established by the Administrator.

 

3.3           A
Participant may elect to invest all or a specified portion of his Account in
some or all of the hypothetical investment alternatives listed in Appendix A
(each, a “Measurement Fund”), to the extent the Committee makes such investment
alternatives available under the Plan.

 

The Committee may make
additional investment alternatives available under the Plan which shall be
listed in Appendix A (as may be amended by the Committee from time to time).

 

The specified portion of
an Account that is deemed invested in a Measurement Fund shall be adjusted for
investment experience (either gains or losses) in a manner that equals the

 

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investment experience attributable to such
investment.  Deemed investments in a
Measurement Fund shall be credited and debited in accordance with procedures established
by the Committee.

 

In the event that a
Participant does not submit a complete and accurate investment election, the
Account shall be deemed invested in the Interest Income Measurement Fund or, if
none, as determined by the Administrator.

 

3.4           The
Company shall not be required to acquire any securities in connection with
deemed investment elections under this Plan. 
No Participant shall have any right to receive a distribution in kind
from the Plan or have the right to vote any security in which a Participant’s
Account is deemed invested.

 

3.5           Each
Participant shall receive a statement of the balance of his Account at least
annually or within a reasonable period following the Administrator’s receipt of
a request for a statement.

 

Section 4.              Distribution

 

4.1           A
Participant will receive a single lump sum payment of each Annual Deferral
Amount.  He/she may elect to receive
distribution within 60 days after the calendar year in which the Director
terminates service from the Board or to receive the distribution in a Time
Certain payment as described in 4.2.  The
lump sum payment shall be in cash and equal to the value of the Account
applicable to the original Annual Deferral Amount(s) as adjusted for deemed
investment results.

 

4.2           Subject
to Section 4.3, a Participant may elect to receive a Time Certain Payout
from the Plan with respect to an Annual Deferral Amount.  The Time Certain Payout shall be a lump sum
payment in cash equal to the value of the Account applicable to the original
Annual Deferral Amount as adjusted for deemed investment results.  Subject to the other terms and conditions of
this Plan, each Time Certain Payout elected shall be paid within sixty (60)
days of the first day of the calendar year that is at least five (5) years
or a multiple of five (5) years, as elected by the Participant, after the
first day of the calendar year to which the applicable Annual Deferral Amount
election relates.

 

4.3           A
Participant may, no later than twelve (12) months prior to the date a Time
Certain Payment is due, elect to postpone such payment so that it will be paid
within sixty (60) days of the first day of the calendar year that is at least
five (5) years or a multiple of five (5) years after the original
payment due date or at termination from the Board, provided such termination
from the Board is at least twelve (12) months after such election is made.

 

Section 5.              Payment
of Deferred Compensation

 

5.1           Subject
to the latest payment date described in Section 5.4, following the
Participant’s termination of services as a Director, he shall receive or
continue to receive distribution of his Account in accordance with his previous
distribution election(s).

 

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5.2           For
each payment year, a Participant shall receive a lump sum payment in cash equal
to the value of his Annual Deferral Amount(s) due to be paid as of the
immediately preceding December 31. 
Provided payment is made within the 60-day period after December 31,
no investment results shall be credited to the Annual Deferral Amount to be
distributed after December 31.

 

5.3           In
the event of a Participant’s death before the balance in his Account is fully
paid out, such balance shall be paid as soon as administratively practicable
after verification of death is received in a lump sum to the beneficiary or
beneficiaries designated by the Participant or, if the Participant has made no
such designation or no beneficiary survives, to the Participant’s estate.

 

5.4           Notwithstanding
the foregoing, once a Participant’s services as a Director terminate, payment
of his Account must be made no later than 60 days following the calendar year
in which the Participant attains age seventy (70).

 

Section 6.              General

 

6.1           The
right of any Participant, beneficiary, or estate to receive payment of any
unpaid balance in any Account of the Participant shall be an unsecured claim
against the general assets of the Company. 
No Participant or other person shall have any right or claim to the
payment of any amount that is in any manner superior or different from the
right or claim of a general and unsecured creditor of the Company.

 

6.2           During
a Participant’s lifetime, any payment under the Plan shall be made only to
him.  No sum or other interest under the
Plan shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, or charge, and any attempt by a
Participant or any beneficiary under the Plan to do so shall be void.  No interest under the Plan shall in any
manner be liable for or subject to the debts, contracts, liabilities,
engagements, or torts of a Participant or beneficiary entitled thereto.

 

6.3           Except
as otherwise provided herein, the Plan shall be administered by the
Administrator which shall have the full discretionary power and authority to
administer the Plan, including without limitation, the power and authority
to:  (i) construe the Plan’s terms; (ii) make
factual determinations; (iii) prepare forms to be used for making
elections under the Plan; (iv) establish rules and procedures for
administering and operating the Plan; (v) evaluate requests made by
Participants; (vi) correct defects under the Plan; (viii) establish
the manner in which decisions are made by the Administrator; (ix) retain
such legal, actuarial, accounting, clerical, and other services as may be
necessary to operate and administer the Plan; (x) establish recordkeeping
procedures for the Plan; and (xi) take any and all similar actions to the
extent necessary to administer the Plan. 
The Administrator may delegate all or some of its authority under the
Plan to any other person or entity.  Any
findings or determinations made by the Administrator in the administration of
the Plan shall be final, conclusive, and binding on all parties.

 

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6.4           The
Plan may at any time or from time to time be amended, modified, or terminated
by the Board of Directors, provided that no amendment, modification, or
termination shall adversely affect the balance in a Participant’s Account
without his consent.

 

6.5           Nothing
contained herein shall be deemed to give any Director the right to be retained
in the service of the Company.

 

6.6           This
Plan shall be governed by and construed in accordance with the laws of the
Commonwealth of Bermuda, notwithstanding the conflict of law rules applicable
therein.

 

6.7           If
a Participant becomes entitled to a distribution of benefits under the Plan,
and if at such time the Participant has outstanding any debt, obligation, or
other liability representing an amount owing to the Company, then the Company may
offset such amount owed to it against the amount of benefits otherwise
distributable.

 

Section 7.              Trust

 

7.1           The
Company may establish a Trust, and the Company may, at least annually, transfer
over to the Trust such assets, if any, as the Company determines, in its sole
discretion, are necessary to provide for the liabilities created with respect
to the Plan for that year.  The trustees
of the Trust shall be selected by the Company from time to time.

 

7.2           The
provisions of the Plan shall govern the rights of a Participant to receive
distributions pursuant to the Plan.  The
provisions of the Trust, if any, shall govern the rights of the Participant and
the creditors of the Company to any assets transferred to the Trust.  The Company shall at all times remain liable
to carry out its obligations under the Plan. 
The Company’s obligations under the Plan may be satisfied with Trust
assets distributed pursuant to the terms of the Trust.

 

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APPENDIX A

 

MEASUREMENT FUNDS

 

(as of June 1,
2003)

 

 

Interest Income
Measurement Fund

 

U.S. Equity Index
Commingled Measurement Fund

 

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