Document:

The Cooper Companies, Inc. 2011 Incentive Payment Plan

 Exhibit 10.1 

 

 

 2011 INCENTIVE PAYMENT PLAN 
 Final 
 December 13, 2010 

 THE COOPER COMPANIES, INC. 

2011 INCENTIVE PAYMENT PLAN 
 SECTION I - NAME 
 The name of this plan is the “2011 Incentive Payment Plan” (the
“Plan” or “IPP”). 
 SECTION II - SCOPE 
 This Plan sets out the IPP guidelines for the following Business Units of The Cooper Companies, Inc. and its subsidiaries (the “Company” or “TCC”): 

CooperVision (“CVI”) Consolidated 
 CooperSurgical (“CSI”) Consolidated 
 Corporate HQ 

Where the terms of this Plan differ from the terms of any Participant’s employment or severance contract, the terms of such contract will dictate.
No new such arrangements shall be entered into without the advance written approval of all of the following: The Company’s Chief Financial Officer (“CFO”), its Chief Executive Officer (“CEO”) and the Organization and
Compensation Committee of the Board of Directors (the “Committee”). 
 SECTION III - PURPOSE 

The purpose of the Plan is to provide incentives to officers and key employees of the Company who are in a position to contribute significantly to
increasing (1) Revenue, (2) Income, (3) Income excluding Archer, (4) Earnings Per Share (“EPS”) and (5) Cash Flow, as defined in the Plan. The Plan also includes a discretionary pool designed to allow for a
subjective evaluation of each Business Unit’s and/or Participant’s performance and for awards for achievement not otherwise adequately reflected in the awards tied to Revenue, Income, EPS or Cash Flow. 

SECTION IV - COMPENSATION PHILOSOPHY 
 It
is the Company’s philosophy that: 
  

	 	•	 	 The Company’s executive compensation programs are designed to attract, motivate, and retain executive talent with the skills, experience,
motivation and commitment needed to optimize stockholder value in a competitive environment. 

  

	 	•	 	 The Company believes that employee performance and achievement will result in economic benefits and support the goal of increasing stockholder value in
the Company by achieving specific financial and strategic objectives. 

  

	 	•	 	 All employees be paid a base salary that is competitive with salaries paid by comparable organizations, based on each employee’s experience,
performance and geographical location. 

  
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	 	•	 	 Employees whose efforts achieve the goals outlined in Section III - Purpose, be provided with the opportunity to significantly increase their total
compensation, via this Plan and certain other benefit plans. 

 SECTION V - DEFINITIONS 

“Budget” or “Budgeted,” when used in conjunction with any measuring device under this Plan (e.g., Revenue Budget or Budgeted Revenue)
shall mean the approved 2011 Budget for each Participant’s Business Unit, adjusted where appropriate to reflect acquisitions and/or divestitures in accordance with “deal sheets” approved by, and in the sole discretion of, the Board of
Directors. 
 “Business Unit” shall mean any operating or headquarters unit so established by the Company. For the 2011 Plan, the
designated Business Units are set out in Section II - Scope, above. 
 “Cash Flow” shall mean the following: 

For all Business Units, Cash Flow is defined as cash provided by operating activities less purchases of property, plant and equipment
(i.e. free cash flow) in accordance with the policies and procedures of the Company and Accounting Principles Generally Accepted in the United States of America “GAAP”). 

For ALL measurements of Cash Flow, the balance sheet increases and decreases detailed above shall be the result of comparing the fiscal
2011 year-end balance sheet to the final ACTUAL balance sheet as at the end of fiscal 2010. 
 “Earnings Per Share” or “EPS”
shall mean fully diluted earnings per share as computed in accordance with GAAP except for adjustments mutually agreed between Executive Management and the Board of Directors or Organization & Compensation Committee. 

“Eligible Individual” shall mean any person employed by the Company who is paid a salary or a fixed monthly amount, as distinguished from an
hourly wage. 
 “Executive Management” shall mean the CEO and the CFO for purposes of administering this Plan. 

“Executive Team” shall mean certain senior executives, including members of management covered by Rule 16(b) under the Securities and Exchange
Act of 1934, designated by the Committee as the key executive management of the Company, CVI and CSI. 
 “Income” shall mean the
operating income for each individual Business Unit in accordance with GAAP except for adjustments mutually agreed between Executive Management and the Board of Directors or Organization & Compensation Committee. 

  
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 “Participant” shall mean any Eligible Individual selected to have the opportunity to earn an award
under the Plan in accordance with its terms. 
 “Revenue” shall mean net revenue accounted for in accordance with GAAP, including
freight costs reimbursed by customers but adjusted for the use of budgeted currency rates. In general terms, net revenue is the result of deducting from total gross revenue any returns, discounts, rebates and any sales tax charged to customers.

 “Salary” shall mean the actual base salary paid to an Eligible Individual during the Year while a Participant in the Plan. No items
of supplemental compensation (prior year bonus, relocation or automobile allowances, special stipends, etc.) will be considered part of Salary. 

“Year” shall mean the fiscal year of the Company, which is November 1 through October 31. 

SECTION VI - ELIGIBILITY FOR PARTICIPATION 
 Participation in the Plan will be offered to those Eligible Individuals who, in the opinion of the Company, are in a position to significantly influence the Company’s Revenue, Income, EPS and/or Cash
Flow. Eligibility for participation shall be at the sole discretion of the Committee, which may delegate this authority to Executive Management for non Executive Team reporting levels. 
 SECTION VII - AWARD OPPORTUNITY 
 At the beginning of each Year, or as otherwise
appropriate, the Committee, which may delegate this authority to Executive Management for non Executive Team reporting levels, will classify each Participant into a category indicating his or her incentive opportunity for achievement of 100% of
established goals. The incentive opportunity will range from 10% to 100% of Salary and may be adjusted upward or downward from the previous Year’s level. 
 SECTION VIII - DETERMINATION OF INCENTIVE PAYMENT 
 Each Participant’s incentive award
opportunity will be based in part on the performance of the Business Unit of which Participant is a member and in part based on a discretionary evaluation of his or her performance. In the event that any Participant, other than members of the
Executive Team, works for more than one Business Unit over the course of the Year, Executive Management shall, in its sole and absolute discretion, prorate IPP achievement; however, in no event shall any Participant receive a total IPP amount
greater than the maximum amount that would have been payable had Participant been employed solely by the Business Unit which receives the greatest IPP achievement. The total award opportunity for Business Units will be the sum of applicable assigned
percentage weightings for Revenue, Income, EPS and Cash Flow (together, “Quantitative Criteria”) and discretionary, as set out in Attachment I. At the discretion of Executive Management, the calculations for certain individual
Participants’ quantitative incentive awards may be prorated between a Business Unit and Corporate Headquarters. 

  
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 Goals for earning an award payment will be based on the percentage of Budget achievement generated for each
of the Quantitative Criteria. Executive Management will provide the Committee a report on variances to the consolidated Budgets for Revenue, Income, Income excluding Archer, EPS and Cash Flow, highlighting key variances including nonrecurring,
noncontrollable and/or discretionary items. The Committee may elect to include or exclude certain of these items for purposes of determining the overall Corporate HQ quantitative Budget achievement. Executive Management may exercise this same
discretion in assessing the Budget achievement of each of the Company’s other Business Units. The amount of discretionary payments reflects the qualitative assessment of each individual Participant’s performance, by his or her supervisor,
senior management and/or Executive Management. Executive Management will consult with the Committee before determining the overall level of achievement of each Business Unit’s discretionary criteria, the percentage achievements of which may
vary from Participant to Participant. The level of achievement of both the quantitative and discretionary components for each of the Executive Team shall be recommended by Executive Management to the Committee. The determination of the amounts of
said components for each Executive Team will be made by the Committee. 
 Each Quantitative Criteria will be measured separately for achievement
of Budget. The matrix below indicates the level of IPP achievement that coincides with a given Budget achievement. The two primary or larger Quantitative Criteria, which may be two of three if there are three primary, must achieve at least 95% IPP
percentage achievement before the total IPP payment associated with Quantitative Criteria can exceed 100%. The IPP achievement of the discretionary portion may also range from 0% to a percentage deemed appropriate by Executive Management and, in the
case of the Executive Team, determined by the Committee after receipt of recommendations from Executive Management. 
  

					
	 If Revenue Is
	 	 If EPS, Free Cash

Flow or Income

Achievement is (2) (4)
	 	 IPP Achievement is (1)

	Less than 85%	 	Less than 85%	 	0%
	88%	 	88%	 	25%
	92%	 	92%	 	50%
	96%	 	96%	 	75%
	100%	 	100%	 	100%
	105%	 	110%	 	150%
	110% or more	 	120% or more	 	200% Maximum(2)

  

	(1)	This is of the level indicated as the “Incentive Opportunity” in Section VII. 

	(2)	Executive Management and/or the Committee reserves the right to adjust indicated levels for quantitative criteria where target figures are so small as to invite
anomalous results. 

	(3)	The Committee in its discretion may reduce the bonus that otherwise would be payable based on satisfaction of the foregoing quantitative goals to take into account such
qualitative factors as it may determine; provided however, the Committee may not reduce such bonus by more than 25%. 

  
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	(4)	Non GAAP EPS will be considered where circumstances warrant and are approved by the Board of Directors or Organization & Compensation Committee.

 Specific examples of the award determination process are included as Attachment III. 

SECTION IX - FORM OF PAYMENT 
 Payments
under this Plan may be made in the form of a combination of cash and common stock of the Company. The percentage mix of the payment will be at the sole discretion of the Board of Directors of the Company, subject to the limitation that the stock
portion of the payment will not exceed 50% of the total. Such determination will be made at the time the Board approves payments to be made under the Plan. Unless recommended otherwise by the Committee to the Board of Directors, any common stock
portion of the payment will be made in shares of restricted stock bearing a restriction of up to 30 days, at no cost to the Participant other than required payments for taxes. The Committee may elect to pay the CEO, for achievement above 75%, in
restricted stock or restricted stock units with up to three-year cliff vesting. 
 SECTION X - TIMING OF AWARD PAYMENTS 

Incentive award payments for each Participant will be made net of all required withholdings, and will be calculated and accrued in the appropriate
Business Unit’s books from time to time during the Year based on projected results for Quantitative Criteria and a reasonable estimate of the discretionary percentage. The indicated payment for Quantitative Criteria plus a reasonable estimate
of discretionary must be accrued for as at the end of each Year. No IPP payments for Quantitative Criteria in excess of the accrual balance will be made. Such accruals will be calculated based upon each Business Unit’s performance against
Budget for the Year then ended as discussed above and illustrated in the attached examples. No payments will be made to any Participant until Executive Management has had an opportunity to review the results of the first two months of the subsequent
Year. To the extent that such first two months results reflect negative anomalies that are determined by Executive Management to relate back to the previous Year, award payments for such Year may be delayed by Executive Management and, subject to
approval by the Committee, may be decreased or canceled. The target date to release payments, therefore, will be January 31, 2012, subject to acceleration or delay by Executive Management, in its sole and absolute discretion. 

SECTION XI - TERMINATION OF EMPLOYMENT 

Except where required pursuant to a previously existing employment agreement (or extenuating circumstances, which will be handled on an ad hoc basis by
Executive Management), any Participant whose employment is terminated by the Company prior to the end of the Year, or by the Participant prior to the payment for such Year for any reason other than death or retirement or disability consistent with
the Company’s then current provisions for retirement and/or disability, will forfeit any opportunity to receive an award under the Plan for that Year. 

  
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 In the case of a Participant’s retirement, disability or death, such Participant (or designated heir in
the event of the Participant’s death) may, at the discretion of Executive Management, be eligible to receive a pro rata payment under the Plan for the period prior to cessation of active full-time employment. Pro rata payments will be made
concurrently with other payments under the Plan. 
 SECTION XII - NEW HIRES AND PROMOTIONS 

Individuals hired or promoted during the Year may become Participants in the Plan subject to the approval of Executive Management. Partial Year
Participants may be eligible to earn a pro rata award. Separate pro rata calculations will be made for any Participant who is promoted to a higher Incentive Opportunity during the Year. 
 SECTION XIII - GENERAL PROVISIONS 
  

	(1)	Each Participant shall treat as personal and strictly confidential any and all information related to Participant’s inclusion in the Plan.

  

	(2)	The expenses of administering the Plan shall be borne by the Company. 

  

	(3)	No employee has any right or claim to be a Participant in the Plan or to receive a payment under the Plan. 

 

	(4)	Participation in the Plan does not provide any employee the right to be retained in the employment of the Company. 

 

	(5)	A Participant may not assign or transfer any rights under the Plan. Any attempt to do so will invalidate those rights. 

 

	(6)	The Plan shall be subject to all applicable federal and state laws and regulations. Payments made under the Plan shall only be made to the extent permitted by such laws
and regulations, subject to all applicable taxes. 

 SECTION XIV - AMENDMENT OR TERMINATION 

The Plan may be amended or terminated at any time by action of the Board of Directors of the Company. 

SECTION XV - ADMINISTRATION AND INTERPRETATION 
 Executive Management shall be responsible, in its sole discretion, for administration of the Plan, and the Committee shall be responsible for interpretation of this Plan. Such interpretations shall be
final. 
  

			
	Attachments:	  	   I     Weighting Factors

		  	  II     List of Participants and Levels of
Participation

		  	 III     Example of Award Determinations [Redacted]

		
	Budgets:	  	2011 Budgets – Previously provided in the 2011 Budget Presentation approved by the BOD, and that Cash Flow will be revised to launch off a certified 10/31/10 balance sheet
except for subsequent changes for acquisitions or divestitures or any other changes approved by the Committee.

  
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 ATTACHMENT I 

WEIGHTING FACTORS 
 ----- Weighting Percentages of IPP Entitlement Factors ----- 
  

													
	 	  	Revenue	  	Income	 	EPS	  	Cash Flow	  	Discretionary	  	Total
	 All CVI Units
	  	20	  	25	 	10	  	20	  	25	  	100
	 All CSI Units
	  	20	  	25	 	10	  	20	  	25	  	100
	 Corporate HQ
	  	20	  	10*	 	25	  	20	  	25	  	100

 Two top financial metrics in the
Quantitative Criteria, which may be two of three if there are three primary, must achieve at least 95% of IPP percentage achievement before the total IPP payment associated with the Quantitative Criteria can exceed 100%. 

 

	*	Weighting 50% CVI and 50% CSI 

  
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 ATTACHMENT II 

NAMED EXECUTIVE OFFICERS AND LEVELS OF PARTICIPATION 

 

					
	 NAME
	    	 TITLE
	  	 FY 2011 IPP

ELIGIBILITY %

	Robert S. Weiss	    	President & Chief Executive Officer	  	100%
	Eugene J. Midlock	    	Senior Vice President & Chief Financial Officer	  	60%
	John A. Weber	    	President, CooperVision, Inc.	  	60%
	Nicholas J. Pichotta	    	Chief Executive Officer, CooperSurgical, Inc.	  	45%
	Paul L. Remmell	    	President & Chief Operating Officer, CooperSurgical, Inc.	  	45%

  
 9Form of Restricted Stock Award Agreement (Named Executive Officer)

 Exhibit 10.1 
 RESTRICTED STOCK AWARD AGREEMENT 
 Name of Participant: 

Date of Grant: 
 Number of Shares: 

Value of each Share on Date of Grant: $ 
 This Restricted Stock Agreement (the “Agreement”), dated as of             , 20    , is made between
Intervest Bancshares Corporation (the “Company”) and the above-named individual (the “Participant”) to record the granting of Restricted Stock on             ,
20     (the “Grant Date”) to the Participant pursuant to the Company’s Long Term Incentive Plan (the “Plan”) by the Company’s Compensation Committee pursuant to the Plan. 

This Agreement is intended to satisfy the requirements for long term restricted stock grants under the Department of the Treasury’s
regulations governing executive compensation for recipients of financial assistance under the Troubled Asset Relief Program, 31 CFR Part 30, and related guidance (the “TARP Rules”), whose requirements are incorporated by reference. This
Agreement shall be interpreted and construed in accordance with that intent. 
 The Committee and the Participant hereby agree
as follows: 
 1. Grant. The Company hereby grants to the Participant, as of the Grant Date, subject to and in accordance with the terms
and conditions of the Plan and this Agreement,              shares of the Company’s Class A Common Stock, par value $1.00 per share (the “Common Stock”). The
grant of shares of Common Stock to the Participant, evidenced by this Agreement, is an award of Restricted Stock (as defined in the Plan) and such shares of Restricted Stock are referred to in this Agreement as the “Shares.” 

2. Vesting. Ownership of the shares shall vest on the third anniversary of the Grant Date, provided that the Participant provides substantial
services and remains in continuous employment with the Company (or an affiliated entity that is treated along with the Company as a TARP recipient (within the meaning of the TARP Rules)) until the Shares Vest. 

Notwithstanding the foregoing vesting date, if, prior to the third anniversary of the Grant Date, there is a Change of Control of the
Company (as that term is defined in the Plan) or the Participant’s employment terminates because of death or disability, all Shares not yet vested shall become immediately vested. 

 3. Forfeiture. Shares that do not become vested in accordance with the vesting set forth in
Section 2 shall be forfeited to the Company. 
 4. TARP Transferability Restrictions. Vested Shares awarded under this Agreement
shall not become transferable (as defined in 26 C.F.R. § 1.83-3(d)), at any time earlier than permitted under the following schedule (except as necessary to reflect a merger or acquisition of the TARP Recipient (within the meaning of the TARP
Rules)): 
  

	 	(a)	25% of the Shares granted at the time of repayment of 25% of the aggregate financial assistance received; 

 

	 	(b)	An additional 25% of the Shares (for an aggregate of 50% of the Shares) at the time of repayment of 50% of the aggregate financial assistance received;

  

	 	(c)	An additional 25% of the Shares (for an aggregate of 75% of the Shares) at the time of repayment of 75% of the aggregate financial assistance received;

  

	 	(d)	The remainder of the Shares at the time of repayment of 100% of the aggregate financial assistance received. 

Notwithstanding the foregoing, in the case of Restricted Stock for which the Participant does not make an election under section 83(b) of
the Internal Revenue Code, at any time beginning with the date upon which the Restricted Stock becomes substantially vested (as defined in 26 C.F.R. § 1.83-3(b)) and ending on December 31 of the calendar year including that date, a portion
of the Restricted Stock may be made transferable as may reasonably be required to pay the Federal, State, local or foreign taxes that are anticipated to apply to the income recognized due to this vesting, and the amounts made transferable for this
purpose shall not count toward the percentages in the schedule above. 
 5. Legend. Each share certificate representing the Shares shall
bear a legend indicating that such Shares are “Restricted Stock” and are subject to the provisions of this Agreement and the Plan. 

6. Withholding Taxes. If the Participant is an employee of the Company or any of its subsidiaries, the Participant shall, at the request of the Company,
remit to the Company in cash the amount needed to satisfy any federal, state or local withholding taxes that may arise or be applicable as the result of the award or vesting of Shares. The Participant may, with the Committee’s consent, elect to
satisfy, totally or in part, such Participant’s obligations pursuant to this section by electing to have Shares withheld, provided that such election is made in writing prior to the vesting of the Shares pursuant to Section 2. 

  
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 7. Restriction on Issuance of Stock Certificates. The Company shall not be required to deliver any
certificate representing the Shares until it has been furnished with such opinions, representations or other documents as it may deem necessary or desirable, in its discretion, to ensure compliance with any laws or rules of the Securities and
Exchange Commission or any other governmental authority or securities exchange having jurisdiction under the Plan or over the Company, the Participant, or the Shares or any interests granted thereunder. 

8. Rights as a Shareholder. Except for the transfer and other restrictions set forth elsewhere in this Agreement and in the Plan, the Participant,
as record holder of the Shares, shall possess all the rights of a holder of the Company’s common stock, including the right to receive dividends on and to vote the Shares; provided, however, that prior to becoming vested and transferable, the
certificates representing such Shares shall be held by the Company for the benefit of the Participant. As the Shares become vested and transferable, certificates representing such Shares shall be released to the Participant. 

9. Transferability. The Shares may not be sold, transferred, pledged, assigned, encumbered, or otherwise alienated or hypothecated until they
become fully vested and transferable in accordance with Sections 2 and 4 of this Agreement and then only to the extent permitted under the Agreement and the Plan and any applicable securities laws. Prior to full vesting and transferability, all
rights with respect to the Shares granted to a Participant under the Plan shall be available, during such Participant’s lifetime, only to such Participant. 
 10. Stock Power. The Participant shall deliver to the Company a stock power, endorsed in blank, relating to the Shares. Such stock power shall be in the form of Exhibit A, attached hereto. The
stock power with respect to any certificate representing Shares that do not vest shall be completed in the name of the Company by an officer of the Company, and the Shares returned to either authorized but unissued shares or treasury shares,
depending upon their original source. 
 11. Section 83(b) Election. The Participant may elect, within 30 days of the Grant Date,
pursuant to Section 83(b) of the Internal Revenue Code, to include in his or her gross income the fair market value of the Shares covered by this Agreement in the taxable year of grant. The election must be made by filing the appropriate notice
with the Internal Revenue Service within 30 days of the Grant Date. If the Participant makes such election, the Participant shall promptly notify the Company by submitting to the Company a copy of the election notice filed with the Internal Revenue
Service. 
 12. Adjustment of Shares. As provided in the Plan, in the event of any change in the Common Stock of the Company by reason of
any stock dividend, stock split, recapitalization, merger, consolidation, split-up, combination or exchange of Shares, or of any similar change affecting the Common Stock, the Shares shall be adjusted automatically consistent with such change to
prevent substantial dilution or enlargement of the rights granted to, or available for, the Participant. 

  
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 13. No Employment Rights. Neither the Plan nor this award shall confer upon the Participant any right
with respect to continuing employment by the Company or any subsidiary of the Company nor shall they interfere in any way with the right of the Company or any subsidiary of the Company to terminate the Participant’s employment at any time, with
or without cause. 
 14. The Plan. The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the
terms and provisions thereof, including any that might conflict with those contained in this Agreement. Capitalized terms used in this Agreement and not otherwise defined herein shall have the meaning given to such terms under the Plan. 

15. Notices. All notices to the Company shall be in writing and sent to the Company’s Secretary at the Company’s offices. Notices to the
Participant shall be addressed to the Participant at the Participant’s address as it appears in the Company’s records. 
 IN WITNESS WHEREOF, the Company and the Participant have caused this Restricted Stock Agreement to be executed on the date set forth opposite their respective signatures, it being understood that the
Grant Date may differ from the date of signature. 
  

							
	Dated:                     , 20    	 		 	INTERVEST BANCSHARES CORPORATION
				
		 		 	By:	 	  

		 		 	Name:
		 		 	Title:
			
	Dated:                     ,
20    	 		 	  

		 		 	Name:

  
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 EXHIBIT A 
 STOCK POWER 
 FOR VALUE RECEIVED, the undersigned does hereby sell, assign
and transfer to Intervest Bancshares Corporation (the “Company”),                      Shares of the Company’s common stock
represented by Certificate No.                     . The undersigned authorizes the Secretary of the Company to transfer the stock on the
books of the Company in the event of any forfeiture of any shares issued under the Restricted Stock Agreement dated as of             , 20     between the
Company and the undersigned. 
  

							
	Dated:                     	 		 		 	  

		 		 		 	[Participant’s Name]

  
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