Document:

exv10w1

Exhibit 10.1

     As amended effective

December 10, 2009

SYNOVIS LIFE TECHNOLOGIES, INC.

EMPLOYEE STOCK PURCHASE PLAN

     Section 1. Purpose. The purpose of this Employee Stock Purchase Plan (the “Plan”) is
to advance the interests of Synovis Life Technologies, Inc. (“the Company”) and its shareholders by
providing Employees of the Company and its Designated Subsidiaries (as defined in Section 2(e)
below) with an opportunity to acquire an ownership interest in the Company through the purchase of
Common Stock of the Company on favorable terms through payroll deductions. It is the intention of
the Company that the Plan qualify as an “employee stock purchase plan” under Section 423 of the
Internal Revenue Code of 1986, as amended (the “Code”). Accordingly, provisions of the Plan shall
be construed so as to extend and limit participation in a manner consistent with the requirements
of Section 423 of the Code.

     Section 2. Definitions.

	 	(a)	 	“Board” means the Board of Directors of the Company.
	 
	 	(b)	 	“Common Stock” means the common stock, par value $.01 per
share, of the Company, or the number and kind of shares of stock or other
securities into which such common stock may be changed in accordance with
Section 13 of the Plan.
	 
	 	(c)	 	“Committee” means the entity administering the Plan, as
provided in Section 3 below.
	 
	 	(d)	 	“Compensation” means regular straight-time earnings and
commissions that are included in regular compensation, excluding all other
amounts such as amounts attributable to overtime, shift premium, incentive
compensation and bonuses (except to the extent that the inclusion of any such
item is specifically directed by the Committee), determined in a manner
consistent with the requirements of Section 423 of the Code, as provided in
Section 1 above.
	 
	 	(e)	 	“Designated Subsidiary” means a Subsidiary that has been
designated by the Board from time to time, in its sole discretion, as eligible
to participate in the Plan.
	 
	 	(f)	 	“Employee” means any person, including an officer, who is
employed by the Company or one of its Designated Subsidiaries, exclusive of any
such person whose customary employment with the Company or a Designated
Subsidiary is for 20 hours or less per week.
	 
	 	(g)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.
	 
	 	(h)	 	“Fair Market Value” means, with respect to the Common Stock, as of any date:

	 	(i)	 	the closing sale price of the Common Stock as
reported on the Nasdaq Global Market System or on any national exchange
(or, if no shares were

 

 

	 	 	 	traded on such date, as of the next preceding date on which there was
such a trade); or
	 
	 	(ii)	 	if the Common Stock is not so listed, admitted
to unlisted trading privileges, or reported on any national exchange or
on the Nasdaq Global Market System, the closing sale price as of such
date at the end of the regular trading session, as reported by the
Nasdaq SmallCap Market, OTC Bulletin Board, the Bulletin Board Exchange
(BBX) or the Pink Sheets, LLC, or other comparable service (or, if no
shares were traded or quoted on such date, as of the next preceding
date on which there was such a trade or quote); or
	 
	 	(iii)	 	if the Common Stock is not so listed or
reported, such price as the Committee determines in good faith by the
reasonable application of a reasonable valuation method, taking into
account all available information material to the value of the Common
Stock, but in a manner acceptable under Section 423 of the Code.

	 	(i)	 	“Insider” means any Participant who is subject to Section 16 of
the Exchange Act.
	 
	 	(j)	 	“Offering” means any of the offerings to Participants of
options to purchase Common Stock under the Plan, each continuing for three
months, as described in Section 5 below.
	 
	 	(k)	 	“Offering Date” means the first day of the period of an
Offering under the Plan, as described in Section 5 below.
	 
	 	(l)	 	“Option Price” is defined in Section 8 below.
	 
	 	(m)	 	“Participant” means an eligible Employee who elects to
participate in the Plan pursuant to Section 6 below.
	 
	 	(n)	 	“Securities Act” means the Securities Act of 1933, as amended.
	 
	 	(o)	 	“Subsidiary” means any subsidiary corporation of the Company
within the meaning of Section 424(f) of the Code.
	 
	 	(p)	 	“Termination Date” means the last day of the period of an
Offering under the Plan, as described in Section 5 below.

     Section 3. Administration. So long as the Company has a class of its equity
securities registered under Section 12 of the Exchange Act, the Plan will be administered by a
committee (the “Committee”) consisting solely of not less than two members of the Board who are
“non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act. Members of such
a committee shall be appointed from time to time by the Board, shall serve at the pleasure of the
Board, and may resign at any time upon written notice to the Board. A majority of the members of
such a committee shall constitute a quorum. Such a committee shall act by majority approval of the
members and shall keep minutes of its meetings. Action of such a committee may be taken without a
meeting if unanimous written consent is given. Copies of minutes of such a committee’s meetings
and of its actions by written consent shall be kept with the corporate records of the Company. As
used in this Plan, the term

 

 

“Committee” will refer to such committee. In accordance with and subject to the provisions of
the Plan, the Committee shall have authority to make, administer and interpret such rules and
regulations as it deems necessary to administer the Plan, and any determination, decision or action
in connection with construction, interpretation, administration or application of the Plan shall be
final, conclusive and binding upon all Participants and any and all persons claiming under or
through any Participant. No member of the Committee shall be liable for any action or
determination made in good faith with respect to the Plan or any option granted under the Plan.

     Section 4. Eligibility.

	 	(a)	 	With respect to an Offering, any Employee employed by the
Company or a Designated Subsidiary on the Offering Date shall be eligible to
participate in the Plan, subject to the limitations imposed by Section 423(b)
of the Code.
	 
	 	(b)	 	Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan if:

	 	(i)	 	immediately after the grant, such Employee (or
any other person whose stock ownership would be attributed to such
Employee pursuant to Section 424(d) of the Code) would own shares of
Common Stock and/or hold outstanding options to purchase shares of
Common Stock possessing 5% or more of the total combined voting power
or value of all classes of shares of the Company or of any Subsidiary;
or
	 
	 	(ii)	 	the amount of payroll deductions that the
Employee has elected to have withheld under such option (pursuant to
Section 7 below) would permit the Employee to purchase shares of Common
Stock under all “employee stock purchase plans” (within the meaning of
Section 423 of the Code) of the Company and its Subsidiaries to accrue
(i.e., become exercisable) at a rate that exceeds $25,000 of the Fair
Market Value of such shares of Common Stock (determined at the time
such option is granted) for each calendar year in which such option is
outstanding at any time.

     Section 5. Offerings. Options to purchase shares of Common Stock shall be offered to
Participants under the Plan through a continuous series of Offerings, each continuing for three
months, and each of which shall commence on February 1, May 1, August 1 and November 1 of each
year, as the case may be (the “Offering Date”), and shall terminate on April 30, July 31, October
31 and January 31 of such year, as the case may be (the “Termination Date”). The first Offering
under the Plan, following its amendment on December 10, 2009, shall have an Offering Date of
February 1, 2010 and a Termination Date of April 30, 2010. Offerings under the Plan shall continue
until either (a) the Committee decides, in its sole discretion, that no further Offerings shall be
made because the Common Stock remaining available under the Plan is insufficient to make an
Offering to all eligible Employees, or (b) the Plan is terminated in accordance with Section 17
below.

     Section 6. Participation.

	 	(a)	 	An eligible Employee may become a Participant in the Plan by
completing a subscription agreement authorizing payroll deductions on the form
provided by the Company (the “Participation Form”) and filing the Participation
Form with the Company’s Human Resources Department not less than 15 days before
the Offering Date of the first Offering in which the Participant wishes to
participate.

 

 

	 	(b)	 	Except as provided in Section 7(a) below, payroll deductions
for a Participant shall begin with the first payroll following the applicable
Offering Date, and shall continue until the termination date of the Plan,
subject to earlier termination by the Participant as provided in Section 11
below or increases or decreases by the Participant in the amount of payroll
deductions as provided in Section 7(c) below.

	 	 	Section 7. Payroll Deductions.

	 	(a)	 	By completing and filing a Participation Form, a Participant
shall elect to have payroll deductions made from the Participant’s total
Compensation (in whole percentages from 1% to a maximum of 10% of the
Participant’s total Compensation) on each payday during the time he is a
Participant in the Plan in such amount as he shall designate on the
Participation Form; provided, however, that no Participant’s payroll deductions
shall be less than $10.00 per pay period.
	 
	 	(b)	 	All payroll deductions authorized by a Participant shall be
credited to an account established under the Plan for the Participant. The
monies represented by such account shall be held as part of the Company’s
general assets, usable for any corporate purpose, and the Company shall not be
obligated to segregate such monies. A Participant may not make any separate
cash payment or contribution to such account.
	 
	 	(c)	 	No increases or decreases of the amount of payroll deductions
for a Participant may be made during an Offering. A Participant may increase
or decrease the amount of the Participant’s payroll deductions under the Plan
for subsequent Offerings by completing an amended Participation Form and filing
it with the Company’s Human Resources Department not less than 15 days prior to
the Offering date as of which such increase or decrease is to be effective.
	 
	 	(d)	 	A Participant may discontinue the Participant’s participation
in the Plan at any time as provided in Section 11 below.

     Section 8. Grant of Option. On each Offering Date, each eligible Employee who is then
a Participant shall be granted (by operation of the Plan) an option to purchase (at the Option
Price) as many full shares of Common Stock as he will be able to purchase with (a) the payroll
deductions credited to the Participant’s account during the Participant’s participation in the
Offering beginning on such Offering Date and (b) the balance (if any) carried forward from the
Employee’s payroll deduction account from the preceding Offering. Notwithstanding the foregoing,
in no event may the number of shares purchased by any Employee during an Offering exceed 500 shares
of Common Stock. The option price per share of such shares (the “Option Price”) shall be equal to
95% of the Fair Market Value of one share of Common Stock on the Termination Date.

     Section 9. Exercise of Option.

	 	(a)	 	Unless a Participant gives written notice to the Company as
provided in Section 9(d) below or withdraws from the Plan pursuant to Section
11 below, the Participant’s option for the purchase of shares of Common Stock
granted for an Offering will be exercised automatically at the Termination Date
of such Offering for the purchase of the number of full shares of Common Stock
that the

 

 

	 	 	 	accumulated payroll deductions in the Participant’s account on such
Termination Date will purchase at the applicable Option Price.
	 
	 	(b)	 	A Participant may only purchase one or more full shares in
connection with the automatic exercise of an option granted for any Offering.
That portion of any balance remaining in a Participant’s payroll deduction
account at the close of business on the Termination Date of any Offering that
is less than the purchase price of one full share will be carried forward into
the Participant’s payroll deduction account for the following Offering. In no
event will the balance carried forward be equal to or greater than the purchase
price of one share on the Termination Date of an Offering. Notwithstanding the
foregoing, the Committee may determine, in its sole discretion, that in lieu of
carrying such cash balances forward, such balances will be deemed to have
purchased such number of fractional shares of Common Stock as would then be
purchasable at the applicable Option Price, with such fractional shares
calculated to the fourth (4th) decimal place.
	 
	 	(c)	 	No Participant (or any person claiming through such
Participant) shall have any interest in any Common Stock subject to an option
under the Plan until such option has been exercised, at which point such
interest shall be limited to the interest of a purchaser of the Common Stock
purchased upon such exercise pending the delivery or credit of such Common
Stock in accordance with Section 10 below. During the Participant’s lifetime,
a Participant’s option to purchase shares of Common Stock under the Plan is
exercisable only by the Participant.
	 
	 	(d)	 	By written notice to the Company prior to the Termination Date
of any Offering, a Participant may elect, effective on such Termination Date,
to:

	 	(i)	 	withdraw all of the accumulated payroll
deductions in the Participant’s account as of the Termination Date
(which withdrawal may, but need not, also constitute a notice of
termination and withdrawal pursuant to Section 11(a)); or
	 
	 	(ii)	 	exercise the Participant’s option for a
specified number of full shares not less than five that is less than
the number of full shares of Common Stock that the accumulated payroll
deductions in the Participant’s account will purchase on the
Termination Date of the Offering at the applicable Option Price, and
withdraw the balance in the Participant’s payroll deduction account.

     Section 10. Delivery.

	 	(a)	 	Except as provided in paragraph (b) below, as promptly as
practicable after the Termination Date of each Offering, the Company will
deliver to each Participant, as appropriate, either:

	 	(i)	 	(A) certificate representing the shares of
Common Stock purchased upon exercise of the Participant’s option
granted for such Offering, registered in the name of the Participant
or, if the Participant so directs on the Participant’s Participation
Form, in the names of the Participant and the Participant’s spouse, and
(B) in the event the Participant makes an

 

 

	 	 	 	election pursuant to Section 9(d)(ii), a check in the amount of the
balance of any payroll deductions credited to the Participant’s
account that were not used for the purchase of Common Stock; or
	 
	 	(ii)	 	if the Participant makes an election pursuant
to Section 9(d)(i) for the Offering, a cash payment equal to the total
of the payroll deductions credited to the Participant’s account.

	 	(b)	 	Notwithstanding paragraph (a) above, in lieu of delivering
certificates to each of the Participants with respect to shares of Common Stock
purchased in connection with an Offering, the Company may deliver a certificate
to a third party representing an aggregate of all of the shares of Common Stock
purchased in connection with the Offering (including an aggregate of all of the
fractional shares deemed to have been purchased pursuant to Section 9(b), if
applicable) rounded down to the nearest full share, plus cash in an amount
equal to the Option Price multiplied by any remaining fractional share deemed
to have been purchased pursuant to Section 9(b), if applicable, which shares
will be held for the benefit of the Participants in accordance with their
respective interests, and will deliver a statement of account to each
Participant indicating the number of shares of Common Stock purchased by that
Participant in connection with that Offering. In the event shares are held for
the benefit of Participants, all full shares purchased and fractional shares
deemed to have been purchased by a Participant in an Offering and in any
subsequent Offerings will accumulate for the benefit of the Participant until
the Participant’s withdrawal or termination pursuant to Section 11.

     Section 11. Withdrawal; Termination of Employment.

	 	(a)	 	A Participant may terminate the Participant’s participation in
the Plan and withdraw all, but not less than all, the payroll deductions
credited to the Participant’s account under the Plan at any time prior to the
Termination Date of an Offering, for such Offering, by giving written notice to
the Company. Such notice shall state that the Participant wishes to terminate
the Participant’s involvement in the Plan, specify a termination date and
request the withdrawal of all of the Participant’s payroll deductions held
under the Plan. All of the Participant’s payroll deductions credited to the
Participant’s account will be paid to the Participant as soon as practicable
after the termination date specified in the notice of termination and
withdrawal (or, if no such date is specified, as soon as practical after
receipt of the Participant’s notice of termination and withdrawal), and the
Participant’s option for such Offering will be automatically canceled, and no
further payroll deductions for the purchase of shares of Common Stock will be
made for such Offering or for any subsequent Offering, except in accordance
with a new Participation Form filed pursuant to Section 6 above. In the event
that shares are held for the benefit of Participants pursuant to Section 10(b),
then on the withdrawal and termination of a Participant’s participation in the
Plan, the Participant will be entitled to receive, at the Participant’s option,
(i) cash equal to the Fair Market Value of all full shares of Common Stock and
any fractional share deemed purchased pursuant to Section 9(b) then held for
the benefit of the Participant; or (ii) a certificate representing the number
of full shares of Common Stock held for the benefit of the Participant plus
cash in an amount equal to the Fair Market Value of any remaining fractional
shares deemed to have been

 

 

	 	 	 	purchased. In any event, Fair Market Value will be determined as of the
termination date specified in the notice of termination and withdrawal (or,
if no such date is specified, as of the date the notice of termination and
withdrawal is received), and such certificate will be delivered and such
amounts paid as soon thereafter as practicable.
	 
	 	(b)	 	Upon termination of a Participant’s employment for any reason,
including retirement or death, the payroll deductions accumulated in the
Participant’s account will be returned to the Participant as soon as
practicable after such termination or, in the case of the Participant’s death,
to the person or persons entitled thereto under Section 14 below, and the
Participant’s option will be automatically canceled. In the event that shares
are held for the benefit of Participants pursuant to Section 10(b), then upon
the termination of a Participant’s employment for any reason, including
retirement or death, the Participant, or, in the case of death, the
Participant’s Designated Beneficiary (if allowed by the Committee) or the
executor or administrator of the Participant’s estate will be entitled to
receive, at their option, (i) cash equal to the Fair Market Value of all full
shares of Common Stock and any fractional share deemed purchased pursuant to
Section 9(b) then held for the benefit of the Participant; or (ii) a
certificate representing the number of full shares of Common Stock held for the
benefit of the Participant plus cash in an amount equal to the Fair Market
Value of any remaining fractional share deemed to have been purchased. In any
event, Fair Market Value will be determined as of such termination and such
certificate will be delivered and such amounts paid as soon thereafter as
practicable. For purposes of the Plan, the termination date of employment
shall be the Participant’s last date of actual employment and shall not include
any period during which such Participant receives any severance payments. A
transfer of employment between the Company and a Designated Subsidiary or
between one Designated Subsidiary and another Designated Subsidiary, or absence
or leave approved by the Company, shall not be deemed a termination of
employment under this Section 11(b).
	 
	 	(c)	 	A Participant’s termination and withdrawal pursuant to Section
11(a) above will not have any effect upon the Participant’s eligibility to
participate in a subsequent Offering by completing and filing a new
Participation Form pursuant to Section 6 above or in any similar plan that may
hereafter be adopted by the Company; provided, however, that, unless otherwise
permitted by the Committee in its sole discretion, a Participant who is an
Insider may not participate in the Plan for at least six months after the
effective date of the Participant’s termination and withdrawal.

     Section 12. Interest. No interest shall accrue on a Participant’s payroll deductions
under the Plan.

     Section 13. Stock Subject to the Plan.

	 	(a)	 	The maximum number of shares of Common Stock that shall be
reserved for sale under the Plan shall be 400,000 shares, subject to adjustment
upon changes in capitalization of the Company as provided in Section 13(b)
below. The shares to be sold to Participants under the Plan may be, at the
election of the Company, either treasury shares or shares authorized but
unissued. If the total number of

 

 

	 	 	 	shares of Common Stock that would otherwise be subject to options granted
pursuant to Section 8 above on any Termination Date exceeds the number of
shares then available under the Plan (after deduction of all shares for
which options have been exercised or are then outstanding), the Company
shall make a pro rata allocation of the shares of Common Stock remaining
available for issuance in as uniform and equitable a manner as is
practicable. In such event, the Company shall give written notice of such
reduction of the number of shares subject to the option to each Participant
affected thereby and shall return any excess funds accumulated in each
Participant’s account as soon as practicable after the Termination Date of
such Offering.
	 
	 	(b)	 	If any option under the Plan is exercised after any Common
Stock dividend, split-up, recapitalization, merger, consolidation, combination
or exchange of Common Stock or the like, occurring after the shareholders of
the Company approve the Plan, the number of shares of Common Stock to which
such option shall be applicable and the Option Price for such Common Stock
shall be appropriately adjusted by the Company.
	 
	 	(c)	 	In the event that Participants are deemed to have purchased
fractional shares of Common Stock pursuant to Section 9(b), the aggregate of
such fractional share interests at any given time will be applied to reduce the
maximum number of shares of Common Stock remaining available for issuance under
the Plan; provided, however, that any fractional shares that are paid out to a
Participant in cash pursuant to Section 11 will automatically again become
available for issuance under the Plan.

     Section 14. Designation of Beneficiary.

	 	(a)	 	In the discretion of the Committee, a Participant may file
written designation of a beneficiary who is to receive shares of Common Stock
and/or cash, if any, from the Participant’s account under the Plan in the event
of such Participant’s death at a time when cash or shares of Common Stock are
held for the Participant’s account.
	 
	 	(b)	 	Such designation of beneficiary may be changed by the
Participant at any time by written notice. In the event of the death of a
Participant in the absence of a valid designation of a beneficiary who is
living at the time of such Participant’s death, the Company shall deliver such
shares of Common Stock and/or cash to the executor or administrator of the
estate of the Participant; or, if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its discretion,
may deliver such shares of Common Stock and/or cash to the spouse or to any one
or more dependents or relatives of the Participant; or, if no spouse, dependent
or relative is known to the Company, then to such other person as the Company
may designate.

     Section 15. Transferability. Neither payroll deductions credited to a Participant’s
account nor any rights with regard to the exercise of an option or to receive shares of Common
Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way
(other than by will, the laws of descent and distribution, or as provided in Section 14 above) by
the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be
without effect, except that the Company may treat such act as an election to withdraw funds in
accordance with Section 11(a) above.

 

 

     Section 16. Share Transfer Restrictions.

	 	(a)	 	Shares of Common Stock shall not be issued under the Plan
unless such issuance is either registered under the Securities Act and
applicable state securities laws or is exempt from such registrations.
	 
	 	(b)	 	Shares of Common Stock issued under the Plan may not be sold,
assigned, transferred, pledged encumbered, or otherwise disposed of (whether
voluntarily or involuntarily) except pursuant to registration under the
Securities Act and applicable state securities laws, or pursuant to exemptions
from such registrations.
	 
	 	(c)	 	Notwithstanding any other provision of the Plan or any
documents entered into pursuant to the Plan and except as permitted by the
Committee in its sole discretion, any shares of Common Stock issued to a
Participant who is an Insider may not be sold, assigned, transferred, pledged,
encumbered or otherwise disposed of for a six-month period after the
Termination Date of the Offering with respect to which they were issued.
	 
	 	(d)	 	Each certificate representing shares of Common Stock issued
under the Plan to an Insider shall be stamped with a legend in substantially
the following form, unless the Committee, in its sole discretion, determines
not to require such a legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, ENCUMBERED,
HYPOTHECATED OR OTHERWISE DISPOSED OF ON OR BEFORE [INSERT APPROPRIATE DATE] WITHOUT THE
PRIOR WRITTEN CONSENT OF THE COMPANY.

     Section 17. Amendment or Termination. The Plan may be amended by the Board from time
to time to the extent that the Board deems necessary or appropriate in light of, and consistent
with, Section 423 of the Code; provided, however, that no such amendment shall be effective,
without approval of the shareholders of the Company, if shareholder approval of the amendment is
then required pursuant to Rule 16b-3 under the Exchange Act or any successor rule or Section 423 of
the Code. The Board also may terminate the Plan or the granting of options pursuant to the Plan at
any time; provided, however, that the Board shall not have the right to modify, cancel, or amend
any outstanding option granted pursuant to the Plan before such termination unless each Participant
consents in writing to such modification, amendment or cancellation.

     Section 18. Notices. All notices or other communications by a Participant to the
Company in connection with the Plan shall be deemed to have been duly given when received by the
Treasurer of the Company or by any other person designated by the Company for the receipt of such
notices or other communications, in the form and at the location specified by the Company.

     Section 19. Effective Date of Plan. The Plan shall be effective as of December 18,
1995, the date it was adopted by the Board. The Plan has been adopted by the Board subject to
shareholder approval, and prior to shareholder approval shares of Common Stock may be issued under
the Plan subject to such approval.

 

 

     Section 20. Miscellaneous. The headings to Sections in the Plan have been included
for convenience of reference only. The masculine pronoun shall include the feminine and the
singular the
plural, whenever appropriate. Except as otherwise expressly indicated, all references to
Sections in the Plan shall be to Sections of the Plan. The Plan shall be interpreted and construed
in accordance with the laws of the State of Minnesota.

 

 

SYNOVIS LIFE TECHNOLOGIES, INC.

EMPLOYEE STOCK PURCHASE PLAN

PAYROLL DEDUCTION AUTHORIZATION FORM AND SUBSCRIPTION AGREEMENT

_____           Original Application

_____           Change in Payroll Deduction Amount

	1.	 	___________________
hereby elects to participate in the Synovis Life Technologies, Inc.
Employee Stock Purchase Plan (the “Plan”) and subscribes to purchase shares of the Company’s
Common Stock (the “Shares”) in accordance with this Agreement and the Plan.
	 
	2..	 	I hereby authorize payroll deductions, beginning _________, 20___, from each paycheck in
the amount of $____________(may not exceed 10% of total compensation on each payday) in
accordance with the Plan.
	 
	3.	 	I understand that said payroll deductions shall be accumulated for the purchase of shares in
accordance with the Plan, and that shares will be purchased for me automatically at the end of
each three-month offering period under the Plan unless I withdraw my accumulated payroll
deductions, withdraw from the Plan, or both, by giving written notice to the Company prior to
the end of the offering period, as provided in the Plan.
	 
	4.	 	Shares purchased for me under the Plan should be issued or held in an account in the name(s) of:
	 
	 	 	         (name(s))

	 
	 	 	        (address)

	 	 	  

	 
	 	 	         (social
security number)

	 
	5.	 	I understand that if I dispose of any Shares received by me pursuant to the Plan within two
years after the first day of the offering period during which I purchased such Shares, I may
be treated for federal income tax purposes as having received ordinary income at the time of
such disposition in an amount equal to the excess of the fair market value of the Shares at
the time such Shares were delivered to me over the option price paid for the Shares. I
hereby agree to notify the Company in writing within 30 days after the date of any such
disposition. However, if I dispose of such shares at any time after the expiration of the
two-year holding period, I understand that I will be treated for federal income tax purposes
as having received income only at the time of such disposition, and that such income will be
taxed as ordinary income only to the extent of an amount equal to the lesser of (a) the excess
of the fair market value of the Shares at the time of such disposition over the amount paid
for the Shares under the option, or (b) the

 

 

	 	 	excess of the fair market value of the Shares over the option price, measured as if the
option had been exercised on the first day of the offering period during which I purchased
such shares. The remainder of the gain, if any, recognized on such disposition will be
taxed at capital gains rates.
	 
	6.	 	I have read the current prospectus for the Synovis Life Technologies, Inc. Employee Stock
Purchase Plan.

	 	 	 	 

	Date:
_________________

	 	 
	 
	 

	 	Signature of Employeeexv10w55

EXHIBIT 10.55

EXHIBIT A

CONFIDENTIAL TREATMENT REQUESTED BY EXIDE TECHNOLOGIES

CONFIDENTIAL TREATMENT REQUESTED BY EXIDE TECHNOLOGIES —

CONFIDENTIAL PORTIONS OF THIS DOCUMENT

HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION

[LETTERHEAD]

March 25, 2010

Dear                     :

Exide Technologies (the “Company”) is pleased to inform you that, pursuant to the Company’s 2009
Stock Incentive Plan (the “Plan”), you have been granted                      Performance Shares
(“Performance Shares”) by the Compensation Committee of the Board of Directors (“Committee”) or, if
you are a Section 16 Officer of the Company (pursuant to Section 16 of the Securities Exchange Act
of 1934, as amended), by the non-employee members of the Board of Directors of the Company (the
“Board”), as of the date hereof. You will receive separate award agreements for any restricted
share or restricted share unit awards that you have also been granted as of the same date.

This award letter (the “Agreement”) sets forth the terms of the Performance Shares. However,
please note that the Performance Shares are also subject to the terms the Plan, as interpreted by
the Committee in its full discretion. Furthermore, this Agreement in no way guarantees that you
will receive any payment of shares of Common Stock pursuant to the Performance Shares under the
Plan. Any terms not defined in this Agreement will have the meaning ascribed to them in the Plan.
The Performance Shares are intended to constitute qualified performance-based compensation under
Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).

General Terms

Your right to receive payment pursuant to the Performance Shares is contingent upon the achievement
of certain Management Objectives, which are described in detail below. The achievement of the
Management Objectives will be measured during the period from April 1, 2010 through March 31, 2013
(the “Performance Period”).

Management Objectives

The Management Objectives for the Performance Period are based on the achievement of performance
goals relating to (i) cumulative earnings before interest and taxes for the Performance Period, as
further defined below (“Cumulative EBIT”), and (ii) relative total
shareholder return for the Performance Period (“Relative TSR”) (collectively, the “Performance
Metrics”). The term “Cumulative EBIT” shall mean the sum of earnings before interest and

 

 

taxes and adjusted to exclude gains or losses from currency remeasurement and warrants revaluation,
all as shown on the Company’s audited consolidated Statements of Operations (including the Notes
thereto) for each of the three years during the Performance Period.

As further described below, if minimum thresholds are met with respect to the Performance Metrics,
you will receive a payment of shares of Common Stock pursuant to at least a portion of the
Performance Shares. You will be eligible to earn up to 33.3% of the Performance Shares based on
the Cumulative EBIT Performance Metric and up to 66.7% of the Performance Shares based on the
Relative TSR Performance Metric. However, under no circumstance will you be able to earn more than
100% of the Performance Shares under this Agreement.

If the Committee determines that a change in the business, operations, corporate structure or
capital structure of the Company, the manner in which it conducts business, or other events or
circumstances render the Management Objectives to be unsuitable, the Committee may modify the
Management Objectives or the related levels of achievement, in whole or in part, as the Committee
deems appropriate; provided, however, that no such action will be made in the case
of a Covered Employee where such action may result in the loss of the otherwise available exemption
of the award under Section 162(m) of the Code.

Payment of Performance Shares

You will receive a payment of shares of Common Stock pursuant to the Performance Shares for the
Performance Period only if payment is otherwise permitted under the terms of the Plan and the Board
(or Committee, in the case of Covered Employees) has certified that the Management Objectives have
been satisfied. You will receive any shares of Common Stock pursuant to the Performance Shares
that you have earned under this Agreement within 90 days after March 31, 2013 (the “Payment Date”),
unless your Continuous Service with the Company or one of its subsidiaries terminates on account of
your death or disability or in connection with a Change in Control prior to the end of the
Performance Period, in which such case you will receive payment, if any, in accordance with the
terms set forth below under the heading “Effect of Early Termination on the Performance Shares.”

Earning of Performance Shares — Cumulative EBIT

Provided that you remain in Continuous Service through the end of the Performance Period, the
actual number of shares of Common Stock, if any, that you will earn pursuant to the Performance
Shares at the end of the Performance Period that are attributable to the Cumulative EBIT
Performance Metric will be determined in accordance with the performance matrix set forth on
Exhibit A to this Agreement. Pursuant to the matrix, you will receive up to 33.3% of your
Performance Shares at the end of the Performance Period if Cumulative EBIT at the end of the
Performance Period equals or exceeds the threshold amount ($***) (the “Cumulative EBIT Threshold
Amount”) as set forth on Exhibit A. If the Cumulative EBIT at the end of the Performance
Period is greater than the Cumulative EBIT Threshold Amount, but less
than the target amount ($***)
(the “Cumulative EBIT Target Amount”) and is not expressly stated on Exhibit A, then each
additional $*** improvement in performance will result in approximately a 0.75% increase in the
number of Performance Shares earned above the Cumulative EBIT Threshold Amount until the Cumulative
EBIT Target Amount is reached. No additional

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

2

 

Performance Shares will be earned if performance exceeds the Cumulative EBIT Target Amount.

Earning of Performance Shares — Relative TSR 

Provided
that the EBIT Threshold, which is defined as $*** in earnings before interest and taxes,
but excluding gains or losses from currency remeasurement and warrants revaluation (the “EBIT
Threshold”), has been achieved at the end of the Performance Period and you remain in Continuous
Service through the end of the Performance Period, the actual number of shares of Common Stock, if
any, that you will earn pursuant to the Performance Shares at the end of the Performance Period
that are attributable to the Relative TSR Performance Metric will be determined in accordance with
the performance matrix set forth on Exhibit B to this Agreement. Pursuant to the matrix,
you will receive up to 66.7% of your Performance Shares at the end of the Performance Period if the
Relative TSR at the end of the Performance Period equals or exceeds the threshold amount
(25th percentile) (the “Relative TSR Threshold Amount”) as set forth on Exhibit
B. If the Relative TSR at the end of the Performance Period is greater than the Relative TSR
Threshold Amount, but less than the target amount (75th percentile) (the “Relative TSR
Target Amount”) and is not expressly stated on Exhibit B, then each whole 1% improvement in
performance will result in approximately a 1% increase in the number of Performance Shares earned
above the Relative TSR Threshold Amount until the Relative TSR Target Amount is reached. No
additional Performance Shares will be earned if performance exceeds the Relative TSR Target Amount.
Furthermore, if the EBIT Threshold is not achieved at the end of the Performance Period, you will
not receive any Performance Shares under the Relative TSR Performance Metric.

For purposes of this award, Relative TSR will be based on the difference between the Beginning
Stock Price (as defined below) and the Ending Stock Price (as defined below) relative to the
performance of the Russell 2000®, plus the amount per share of any cash dividends paid
by the Company during the Performance Period. The term “Beginning Stock Price” means the average
closing price of a share of the Company’s Common Stock for the 20 consecutive trading days
immediately following, but not including, April 1, 2010 as reported by the online edition of The
Wall Street Journal on the NASDAQ Global Market, or as reported by such other source as the
Committee may approve. The term “Ending Stock Price” means the average closing price of a share of
the Company’s Common Stock for the 20 consecutive trading days immediately preceding, but not
including, the last day of the Performance Period as reported by the online edition of The Wall
Street Journal on the NASDAQ Global Market, or as reported by such other source as the Committee
may approve.

Effect of Early Termination on the Performance Shares

Death

If your Continuous Service terminates early on account of your death prior to the end of the
Performance Period, the number of shares of Common Stock that your beneficiary will receive
pursuant to the Performance Shares, if any, will be determined in accordance with Exhibits A
and B attached hereto and will be paid to your designated beneficiary on the Payment Date.
However, the number of shares of Common Stock will be pro-rated for the period starting on the

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

3

 

date hereof and ending on the last day of the month in which your Continuous Service is terminated
on account of your death.

Disability

If your Continuous Service terminates early on account of your disability prior to the end of the
Performance Period, the number of shares of Common Stock that you will receive pursuant to the
Performance Shares, if any, will be determined in accordance with Exhibits A and B attached
hereto and will be paid on the Payment Date. However, the number of shares of Common Stock will be
pro-rated for the period starting on the date hereof and ending on the last day of the month in
which your Continuous Service is terminated on account of your disability.

Change in Control

     (a) In the event your Continuous Service is terminated by the Company for any reason other
than Cause or by you for Good Reason (as defined below) on or within twelve (12) months of a Change
in Control, the number of shares of Common Stock that you will receive pursuant to the Performance
Shares, if any, will be determined in accordance with Exhibits A and B attached hereto.
However, in order to determine the number of Performance Shares earned pursuant to both Performance
Metrics, the Performance Metrics will be measured as of the last day of the month in which your
Continuous Service is terminated in connection with the Change in Control instead of the last day
of the Performance Period. Any Performance Shares earned on the date your Continuous Service is
terminated in connection with a Change in Control will be delivered as soon as practicable, and in
all events within 30 days, following the date your Continuous Service is terminated in connection
with a Change in Control; provided, however, that if the termination of Continuous
Service is not a “separation of service” as defined under Section 409A of the Code, payment will be
made to you within 30 days following the earlier of (i) the Payment Date or (ii) the date of your
“separation of service” with the Company (determined in accordance with Section 409A of the Code);
further, provided, that if the date of payment is determined by reference to the
date of your “separation of service” with the Company (determined in accordance with Section 409A
of the Code) or the Change in Control does not constitute a change in ownership or effective
control of the Company or a change in the ownership of a substantial portion of the Company, within
the meaning of Section 409A of the Code, and you are considered a “specified employee” for the
purposes of Section 409A of the Code, payment will be made within 30 days of the first business day
of the seventh month after the date of your “separation of service” with the Company (determined in
accordance with Section 409A of the Code).

For purposes of this Agreement, the term “Good Reason” shall mean (i) a material diminution in your
authority, duties or responsibilities, (ii) a relocation of the office at which you provide
services to the Company or a Subsidiary to a location more than fifty (50) miles from its current
location; or (iii) any material breach of an employment agreement, if any, that is in effect at any
time between you and the Company.

Before a termination will constitute a termination for Good Reason, you must give the Company a
Notice of Good Reason within ninety (90) calendar days following the occurrence of the event that
constitutes Good Reason. Failure to provide such Notice of Good Reason within such 90-

4

 

day period shall be conclusive proof that you shall not have Good Reason to terminate employment.

Good Reason shall exist only if (A) the Company fails to remedy the event or events constituting
Good Reason within thirty (30) calendar days after receipt of the Notice of Good Reason from you
and (B) you terminate you employment within sixty (60) days after the end of the period set forth
in clause (A) above. If you determine that Good Reason for termination exists and timely file a
Notice of Good Reason, such determination shall be presumed to be true and the Company will have
the burden of proving that Good Reason does not exist.

For purposes of this Agreement, “Notice of Good Reason” means a written notice by you to the
Company which sets forth in reasonable detail the specific reason for a termination of employment
for Good Reason and the facts and circumstances claimed to provide a basis for such termination and
is provided to the Company in accordance with the terms set forth above.

Other Terminations

If your Continuous Service with the Company or any subsidiary is voluntarily or involuntarily
terminated during the Performance Period for any reason other than your death or disability, or in
connection with a Change in Control, you will forfeit your entire Performance Share Award.

If there is a conflict between these termination provisions and the termination provisions of the
Plan, the terms of the Plan shall govern.

Taxes and Withholding

To the extent that the Company is required to withhold any federal, state, local or foreign taxes
in connection with the payment of any shares of Common Stock made pursuant to the Performance
Shares and the amounts available to the Company for such withholding are insufficient, you shall
pay such taxes or make provisions that are satisfactory to the Company for the payment thereof.
Unless otherwise determined by the Committee, you may elect to satisfy all or any part of any such
withholding obligation by (i) paying cash, (ii) surrendering to the Company a portion of the shares
of Common Stock that are issued or transferred to you or that become nontransferable by you
hereunder, and the shares of Common Stock so surrendered by you shall be credited against any such
withholding obligation at the Market Value per Share of such shares of Common Stock on the date of
such surrender, or (iii) a combination of such methods.

5

 

Please contact                                          at extension            if you have any questions about the Plan or the
Program.

Very truly yours,

                                                            

By:

The
undersigned hereby accepts the terms of this Award Agreement
and the Plan.

	 	 	 	 	 

	 	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

6

 

Exhibit A

Performance Shares Earned — Cumulative EBIT

	 	 	 
	Cumulative EBIT	 	% of Award Earned
	Less than $***
	 	     0%
	$***
	 	16.7%
	$***
	 	20.0%
	$***
	 	23.3%
	$***
	 	26.7%
	$***
	 	30.0%
	$*** or greater
	 	33.3%

*** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION ***

7

 

Exhibit B

Performance Shares Earned — Relative TSR

	 	 	 
	Percentile Rank Relative to	 	 
	Russell 2000®	 	% of Award Earned
	Less than 20

	 	      0%
	25
	 	16.67%
	30
	 	21.68%
	35
	 	26.68%
	40
	 	31.68%
	45
	 	36.69%
	50
	 	41.69%
	55
	 	46.69%
	60
	 	51.69%
	65
	 	56.70%
	70
	 	61.70%
	75 or greater
	 	  66.7%

8

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