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EXHIBIT 10.2

FIRST
AMENDMENT TO

THE STB
BEAUTY, INC. 2004 EQUITY INCENTIVE PLAN

 

                THIS FIRST AMENDMENT TO THE STB
BEAUTY, INC. 2004 EQUITY INCENTIVE PLAN (this “Amendment”),
dated as of October 5, 2005, is made and adopted by STB BEAUTY, INC., a
Delaware corporation (the “Company”).  Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the Plan (as defined
below).

RECITALS

                WHEREAS, the Company maintains the
STB Beauty, Inc. 2004 Equity Incentive Plan (the “Plan”);

                WHEREAS, the Company desires to
amend the Plan as set forth below;

                WHEREAS, pursuant to Section 12
of the Plan, the Plan may be amended by the Board of Directors of the Company;
and

                WHEREAS, the Board of Directors
of the Company has approved this Amendment pursuant to resolutions adopted by
unanimous written consent effective October 5, 2005.

                NOW, THEREFORE, in consideration
of the foregoing, the Company hereby amends the Plan as follows:

1.                                       Section 6(e) of
the Plan is hereby amended to read as follows:

                “(e)         Payment for and Delivery
of Stock.  Stock purchased upon exercise of
an Option under the Plan shall be paid for as follows:  (i) in cash, check acceptable to the Company
(determined in accordance with such guidelines as the Board may prescribe), or
money order payable to the order of the Company, or (ii) if so permitted by the
Board, (A) through the delivery of shares of Stock (which, in the case of Stock
acquired from the Company, shall have been held for at least six months unless
the Board specifies a shorter period) having a fair market value on the last
business day preceding the date of exercise equal to the purchase price, (B) by
delivery of an unconditional and irrevocable undertaking by a broker to deliver
promptly to the Company sufficient funds to pay the exercise price, (C) by
delivery of a promissory note bearing interest at no less than
such rate as shall then preclude the imputation of interest under the Code, which
promissory note shall be in a form approved by the Board, or (D) by any
combination of the permissible forms of payment.  Notwithstanding any other
provision of the Plan to the contrary, no participant who is a member of the
Board or an “executive officer” of the Company within the meaning of Section
13(k) of the 1934 Act shall be permitted to pay the exercise price of an
Option, or continue any extension of credit with respect to the exercise price
of an Option with a loan from the Company or a loan arranged by the Company, in
any method which would violate Section 13(k) of the 1934 Act.”

2.             This Amendment shall be and is hereby incorporated in
and forms a part of the Plan.  All other
terms and provisions of the Plan shall remain unchanged except as specifically
modified herein.  The Plan, as amended by
this Amendment, is hereby ratified and confirmed.

 

 

 

                I
hereby certify that the foregoing Amendment was duly adopted by the Board of
Directors of STB Beauty, Inc. on October 5, 2005.

 

	
   

  	
  By:

  	
  /s/ Myles McCormick

  
	
   

  	
   

  	
  Name: Myles McCormick

  
	
   

  	
   

  	
  Title: Secretary

  

 

 

2EXHIBIT 10.3

 

SECOND
AMENDMENT TO

THE STB
BEAUTY, INC. 2004 EQUITY INCENTIVE PLAN

 

                THIS SECOND AMENDMENT TO THE STB
BEAUTY, INC. 2004 EQUITY INCENTIVE PLAN (this “Amendment”),
dated as of December 13, 2005, is made and adopted by STB BEAUTY, INC., a Delaware
corporation (the “Company”).  Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the Plan (as defined
below).

RECITALS

                WHEREAS, the Company maintains the
STB Beauty, Inc. 2004 Equity Incentive Plan (the “Plan”);

                WHEREAS, the Company desires to
amend the Plan as set forth below;

                WHEREAS, pursuant to Section 12
of the Plan, the Plan may be amended by the Board of Directors of the Company;
and

                WHEREAS, the Board of Directors
of the Company has approved this Amendment pursuant to resolutions adopted
effective December 13, 2005.

                NOW, THEREFORE, in consideration
of the foregoing, the Company hereby amends the Plan as follows:

1.                                       The following
paragraph is hereby added to the end of Section 2 of the Plan:

“The
Board or the Committee may, but need not, from time to time delegate to a
committee of one or more members of the Board or one or more officers of the
Company the authority to grant or administer Awards to participants in the Plan
other than (a) executive officers of the Company (including executive officers
who are subject to Section 16 of the Exchange Act), (b) (1) employees who are
at the date of grant “covered employees,” within the meaning of Section 162(m)
of the Code or who are expected to be “covered employees” at the time of
recognition of income resulting from such Award or (2) persons with respect to
whom the Company wishes to comply with Section 162(m) of the Code, or (c)
officers of the Company (or members of the Board) to whom authority to grant or
administer Awards has been delegated hereunder. 
Any delegation pursuant to this paragraph shall be subject to the
restrictions and limits that the Board or the Committee specifies at the time
of such delegation of authority and may be rescinded at any time by the Board
or the Committee, as applicable.  At all
times, any committee appointed under this paragraph shall serve in such
capacity at the pleasure of the Board or the Committee, as applicable.”

2.             This Amendment shall be and is hereby incorporated in
and forms a part of the Plan.  All other
terms and provisions of the Plan shall remain unchanged except as specifically
modified herein.  The Plan, as amended by
this Amendment, is hereby ratified and confirmed.

 

 

 

                I
hereby certify that the foregoing Amendment was duly adopted by the Board of
Directors of STB Beauty, Inc. on December 13, 2005.

 

 

	
   

  	
  By:

  	
  /s/ Myles McCormick

  
	
   

  	
   

  	
  Name: Myles McCormick

  
	
   

  	
   

  	
  Title: Secretary

  

 

 

2EXHIBIT 10.4

 

THIS OPTION AND THE SHARES RECEIVED UPON EXERCISE OF THIS OPTION SHALL
BE SUBJECT TO THE RIGHTS, RESTRICTIONS AND OBLIGATIONS APPLICABLE TO SUCH
SECURITIES, ALL AS PROVIDED IN THE STOCKHOLDERS AGREEMENT DATED AS OF JUNE 10,
2004 AMONG THE COMPANY AND CERTAIN OTHER PARTIES THERETO, AS AMENDED AND IN
EFFECT FROM TIME TO TIME (THE “STOCKHOLDERS AGREEMENT”).

 

STB BEAUTY, INC.

2004 STOCK OPTION

 

TIME
OPTION CERTIFICATE

 

This stock option
is granted by STB Beauty, Inc., a Delaware corporation (the “Company”), to __________ (the “Optionee”), pursuant to the
Company’s 2004 Equity Incentive Plan (the “Plan”).  All capitalized terms not otherwise defined
herein shall have the meaning provided in the Plan.

 

1.             Grant of Option.

This certificate
evidences the grant by the Company on _________
to the Optionee of an option to purchase, in whole or in part, on the terms
provided herein and in the Plan, a total of _______
shares of Common Stock of the Company, $.01 par value per share (the “Shares”)
at $_____ per Share.

 

The latest date on
which this option may be exercised (the “Final Exercise Date”) is the earliest
of (a) the tenth anniversary of the date hereof or (b) the termination hereof
in accordance with this certificate, the Stockholders Agreement or the Plan.

 

The option
evidenced by this certificate is not intended to qualify as an incentive stock
option under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

This option shall
vest and become exercisable as to 20% of the total number of Shares on __________, respectively.  Notwithstanding the foregoing, this option
shall vest and become exercisable as to 100% of the total number of Shares on
the date of the consummation of a Sale Transaction (as defined below).  No option shall vest after the termination of
the Optionee’s employment with the Company or any of its subsidiaries.

 

As used herein,
the following terms shall have the meanings set forth below:

 

“Affiliate” shall
mean, with respect to any specified Person, any other Person which, directly or
indirectly, through one or more intermediaries controls, or is controlled by,
or is under common control with, such specified Person (for the purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,”
“controlled by” and “under common control with”), as used with respect to any
Person, means the possession, directly or

 

 

1

 

indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting
securities, by agreement or otherwise).

 

“Group” shall mean
any two or more Persons who, directly or indirectly, through any contract,
arrangement, understanding, relationship or otherwise, act as a partnership,
limited partnership, syndicate or other group for the purpose of acquiring or
holding securities of the Company.

 

“Person” shall
mean any individual, partnership, corporation, association, limited liability
company, trust, joint venture, unincorporated organization or entity, or any
government, governmental department or agency or political subdivision thereof.

 

“Sale Transaction” shall mean (i) any transaction or
series of related transactions in which any Person who is not an Affiliate of
the Company, or any two or more such Persons acting as a Group, and all
Affiliates of such Person or Persons, who prior to such time owned no shares of
the Company’s Common Stock or shares of the Company’s Common Stock representing
less than fifty percent (50%) of the voting power at elections for the Board of
Directors of the Company (the “Board”), shall (A) acquire, whether by purchase,
exchange, tender offer, merger, consolidation, recapitalization or otherwise,
or (B) otherwise be the owner of (as a result of a redemption of shares of the Company’s Common Stock
or otherwise), shares of the Company’s Common Stock (or shares in a successor
corporation by merger, consolidation or otherwise) such that following such
transaction or transactions, such Person or Group and their respective
Affiliates beneficially own fifty percent (50%) or more of the voting power at
elections for the board of directors of the Company or any successor
corporation, or (ii) the sale or transfer of all or substantially all the
Company’s or MD Beauty, Inc.’s assets and following such sale or transfer,
there is a liquidation of the Company. 
For purposes of this definition, it is understood and agreed that as of
the date hereof, the only stockholders of the Company which constitute
Affiliates of the Company are Berkshire Fund VI Investment Corp., Berkshire
Fund V, Limited Partnership, Berkshire Fund VI, Limited Partnership, Berkshire
Investors LLC, and JH MDB Investors, L.P.

 

2.             Exercise
of Option.

Each election to exercise
this option shall be in writing, signed by the Optionee or by his or her
executor or administrator or by the Person or Persons to whom this option is
transferred by will or the applicable laws of descent and distribution (the “Legal
Representative”), and received by the Company at its principal office,
accompanied by payment in full and by such additional documentation evidencing
the right to exercise (or, in the case of a Legal Representative, the authority
of such Legal Representative) as the Company may require.  The purchase price may be paid (i) in cash or
by personal check, bank check or money order payable to the order of the
Company, (ii) through the delivery of shares of Stock that have been
outstanding for at least six months and that have a fair market value on the
last business day preceding the date of exercise equal to the exercise price,
(iii) by delivery of an unconditional and irrevocable undertaking by a broker
to deliver to the Company promptly upon the sale of Shares to be issued sufficient
funds to pay the exercise price, or (iv) by any combination of the permissible
forms of payment.

 

2

 

3.             Stockholders Agreement;
Termination of Employment.

The option
evidenced by this certificate and any Shares received upon the exercise of this
option shall be subject to the Plan and the Stockholders Agreement, and the
issuance of this option certificate shall be conditional upon the execution and
delivery by the Optionee of a joinder to the Stockholders Agreement.  This option and the Shares received upon
exercise of this option shall be subject to the rights, restrictions and
obligations applicable to options and shares of Common Stock of the Company as
provided from time to time in such Stockholders Agreement, including without
limitation, the obligations applicable to options and shares of Common Stock of
the Company under Section 2.2 thereof relating to the Company’s right to call
securities in the event of the termination of the Optionee’s employment with
the Company or any of its subsidiaries. 
In addition to the provisions of the Plan and the Stockholders
Agreement, upon termination of the Optionee’s employment with the Company or
any of its subsidiaries for any reason, any portion of this option that shall
not have vested prior to or upon such termination shall immediately terminate.

 

4.             Restrictions on Transfer.

(a)           In
addition to the provisions of Section 3 above, if at the time this option is
exercised the Company and a majority in interest of the Management Stockholders
(as defined in the Stockholders Agreement) are party to any other agreement
restricting the transfer of any outstanding shares of its Common Stock, this
option may be exercised only if the Shares so acquired are made subject to the
transfer restrictions set forth in that agreement (or if more than one such
agreement is then in effect, the agreement or agreements specified by the
Board).

(b)           Certificates
evidencing any Shares purchased by an Optionee upon exercise of options granted
hereby may bear the following legends, in addition to any legends which may be
required by any agreement referred to in the immediately preceding paragraph:

“The
securities represented by this Certificate have not been registered under the
Securities Act of 1933, as amended, and may not be sold, offered for sale,
pledged or hypothecated in the absence of an effective registration statement
as to the securities under said Act or an opinion of counsel satisfactory to
the Company and its counsel that such registration is not required.”

 

“The
securities represented by this Certificate are subject to the terms and
conditions, including certain restrictions on transfer, of a Stockholders
Agreement dated as of June 10, 2004, as amended from time to time, and none of such
securities, or any interest therein, shall be transferred, pledged, encumbered
or otherwise disposed of except as provided in that Agreement.  A copy of the Stockholders Agreement is on
file with the Secretary of the Company and will be mailed to any properly
interested person without charge within five (5) business days after receipt of
a written request.”

 

All Shares shall
also bear all legends required by federal and state securities laws.

 

 

3

 

5.             Withholding.

No Shares will be
issued pursuant to the exercise of this option unless and until the Person
exercising this option shall have remitted to the Company an amount sufficient
to satisfy any federal, state or local withholding tax requirements, or shall
have made other arrangements satisfactory to the Company with respect to such
taxes.  The Optionee shall be responsible
for filing an election under Section 83(b) of the Internal Revenue Code of
1986, as amended, within 30 days of the exercise of the option to the extent
deemed necessary or desirable by the Optionee and the Optionee shall provide
the Company with a copy of any such election promptly thereafter.

 

6.             Nontransferability of Option.

This option is not
transferable by the Optionee other than by will or the applicable laws of
descent and distribution, and is exercisable during the Optionee’s lifetime
only by the Optionee.

 

7.             Effect on Employment.

Neither the grant
of this option, nor the issuance of Shares upon exercise of this option, shall
give the Optionee any right to be retained in the employ of the Company, affect
the right of the Company to discharge or discipline such Optionee at any time
or affect any right of such Optionee to terminate his or her employment at any
time.

 

8.             Provisions of the Plan.

This option is
subject in its entirety to the provisions of the Plan, a copy of which is
furnished to the Optionee with this option.

 

 

4

 

IN WITNESS
WHEREOF, the Company has caused this Stock Option to be executed by its duly
authorized officer.

 

 

	
   

  	
  STB BEAUTY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Dated:

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