Document:

Exhibit
10-h

 

ADC
EXECUTIVE STOCK OWNERSHIP POLICY

FOR SECTION 16 OFFICERS

(Effective January 1, 2004)

 

 

Overview

 

ADC executives that are
designated by ADC as reporting officers under Section 16 of the Securities
Exchange Act of 1934 (“Section 16 Officers”) are generally the most senior
executives of ADC.  As such, ADC
believes that it is important for them to build and maintain a long-term
ownership position in ADC stock to strengthen their financial alignment with
shareholders’ interests. The ADC Executive Stock Ownership Policy for Section
16 Officers specifies target ownership levels of ADC common stock for each
participant. This policy replaces the previous program (“The ADC Executive
Stock Ownership Policy” as last modified in February 2002).  The program consists of three core
components.  The first is a statement of
targeted ownership, expressed as a fixed number of shares of ADC common
stock.  The second is a means of progressing
toward the targeted ownership: a holding requirement imposed on a portion of
exercised stock options or full-value grants of stock provided by ADC unless
the ownership target is satisfied.  The
third is a prohibition against certain stock transactions that would mitigate
the desired financial alignment with shareholders’ interests and could also
raise certain legal risks associated with these types of transactions.

 

Participation and Effective Date

 

All Section 16 Officers
are subject to this policy.  This policy
is effective as of January 1, 2004, and the holding requirements set forth
herein will apply to any and all grants of stock options or full value grants
made on or after January 1, 2004, provided such grant was made while an
executive was a Section 16 Officer.  For
purposes of this policy “full-value grants” includes all grants or awards of
shares of restricted stock, restricted stock units, performance shares, or
performance share units.  These are all
grants or potential grants of ADC common stock or the right to receive ADC common
stock, without payment of monetary consideration to ADC, that are made
contingent on either continued employment over a period of time or the
achievement of specified performance levels. 
Section 16 Officers will remain subject to the holding requirements
under this policy for so long as they remain Section 16 Officers of ADC, unless
this policy is expressly terminated.

 

Ownership Targets

 

The
ownership target is expressed as a fixed number of shares, based on the salary
grade of the Section 16 Officer.  Except
for adjustments necessary to reflect any stock splits or similar non-economic
events, these numbers of shares will remain constant until the salary grade of
the Section 16 Officer’s position changes or the Compensation Committee of the
Board changes the targeted level of ownership. 
Although the Compensation Committee reserves the right to change the
targeted number of shares, we do not expect frequent changes to the targets.

 

The
target ownership levels are as follows:

 

	
  Position/Grade

  	
   

  	
  Number of Shares

  	
   

  
	
  CEO

  	
   

  	
  860,000

  	
   

  
	
  Grade 25

  	
   

  	
  210,000

  	
   

  
	
  Grade 24

  	
   

  	
  190,000

  	
   

  
	
  Grade 23

  	
   

  	
  170,000

  	
   

  
	
  Grade 22

  	
   

  	
  120,000

  	
   

  
	
  Grade 21

  	
   

  	
  105,000

  	
   

  
	
  Grade 20

  	
   

  	
  95,000

  	
   

  

 

 

Measurement
of Ownership Targets and Achievement

 

For purposes of this
policy “ownership” is defined as any shares deemed as beneficially owned for purposes
of Section 16 reporting, excluding however any shares that are not yet vested,
even if they are deemed to be beneficially owned for Section 16 reporting
purposes. Included within this definition would be ADC common stock acquired
and currently held through open market purchases, the 401(k), 401(k) Excess and
Supplemental Retirement Plans, employee stock purchase plan holdings, retained
shares from stock option exercises, and vested shares from full-value
grants.  Shares owned or credited in any
form not recognized for Section 16 reporting will not be counted for purposes
of this program.

 

Stock
Holding Requirement

 

ADC does not expect or
require Section 16 Officers to engage in extraordinary out-of-pocket investment
transactions to meet these ownership targets. Rather, the ownership obligations
of Section 16 Officers are limited to complying with certain holding
requirements as applied to the stock option grants and full-value grants that
they are awarded on or after January 1, 2004. 
Grants made prior to the time an individual becomes a Section 16 Officer
are not subject to this holding requirement, even if they were made on or after
January 1, 2004.

 

For full-value grants
subject to the holding requirement, the Section 16 Officer must hold at least 50%
of all vested shares remaining after withholding or sale of vested shares to
cover the cost of withholding taxes. 
For stock options subject to the holding requirement, the Section 16
Officer must hold at least 50% of all the exercised options after the
withholding or sale of shares to cover the exercise price and the withholding
taxes related to the option exercise. 
Once the net ownership target is achieved, this holding requirement will
not apply to the extent that the sale of shares would still result in a net
ownership position that equals or exceeds the ownership target.

 

Prohibited
Transactions

 

In furtherance of the
objectives of this Policy, and in addition to prohibitions under the Federal
securities laws, Section 16 Officers are prohibited from purchasing, selling or
writing any exchange-traded call and put options that have Company stock as
their underlying security.  In addition,
Section 16 Officers may not engage in any hedging transaction on Company stock
that they beneficially own, including but not limited to “forward contracts,”
“collars,” “equity swaps,” or “straddles.”

 

No
Compensation for Achieving the Ownership Target; No Entitlement to Receive
Grants

 

The Section 16 Officer
will obtain no additional compensation or reward for achieving the targeted
ownership level.  In addition, ADC does
not make any commitment to any persons covered by this policy that they will
receive any particular level of stock option grants or full-value grants.  While no Section 16 Officer has any
entitlement to receive any such grants, if a grant is made, it will be subject
to the requirements of this policy.

 

 

Administration

 

Annually in October, ADC
will tally each Section 16 Officer’s ownership position and report it to them
in conjunction with this ownership policy. 
This tally will also be available to each Section 16 Officer upon
request.  Each Section 16 Officer is
responsible for promptly bringing to ADC’s attention any discrepancy between
ADC’s records and any records maintained by the executive with respect to his
or her ownership position.

 

Each Section 16 Officer
shall be required to sign a certificate that they understand this policy and
will comply with its terms.  A copy of
this certificate is attached to this document as “Exhibit A.”

 

Amendment
and Termination

 

ADC reserves the right to
terminate or amend this program at any time. 
This program is not a contract of employment or compensation or
guarantee thereof.

 

Attachment:  Exhibit A

 

 

Exhibit
A

 

 

CERTIFICATE

FOR

ADC EXECUTIVE STOCK OWNERSHIP POLICY

FOR SECTION 16 OFFICERS

 

 

I, the undersigned
Section 16 Officer of ADC, understand and acknowledge that I have received a
copy of the ADC Executive Stock Ownership Policy for Section 16 Officers
effective January 1, 2004, and that I will comply with the terms and
requirements of such policy.

 

This Certificate was
acknowledged and signed on the date indicated below.

 

 

	
  Date

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TitleExhibit 10.32

 

Employment
Letter

 

December
24, 2003

 

Alan
Rubinfeld

68
Redner Road

Morristown,
N J07960

 

Dear
Alan;

 

Please
allow this letter to serve as the entire agreement between Savient
Pharmaceuticals, Inc. (the “Company”) and you, Alan Rubinfeld (the “Employee”)
with respect to certain aspects of your employment with the Company.

 

Acknowledgement

 

The Company acknowledges and
agrees that the Employee is and will remain a partner of, and has and will
retain an interest in, Tatum CFO Partners, LLP (“Tatum”), which will benefit
the Company in that the Employee will have access to certain Tatum
resources.  The Employee acknowledges
and agrees that as compensation for access to Tatum’s resources, the company
will pay certain specified amounts to Tatum as provided in the Resources
Agreement between the Company and Tatum, dated on or about the date of this
agreement, and acknowledges that such amounts might otherwise have been paid to
Employee as compensation, and that Employee shall have no right to such amounts.  The Company and the Employee agree that any
payments made to Tatum are not to be treated as compensation to the Employee
for purposes of determining taxable income and should not be reflected as
compensation in the Employee’s W-2 report.

 

Beginning Date

 

The
Employee will work for the Company beginning on January 5, 2004 and this
contract will expire on April 30, 2004.

 

Position and Duties

 

Employee
shall serve as the acting chief financial officer of the Company, reporting to
the Company’s chief executive officer. 
Employee shall perform such duties and functions as the Company’s chief
executive officer and Board of Directors shall from time to time determine and
Employee shall comply in the performance of such duties with the policies of,
and be subject to the direction of, the Company’s chief executive officer and
Board of Directors.

 

During
the term of this Agreement, Employee shall devote all of his working time and
attention, reasonable vacation time and absences for sickness excepted, to the
business of the Company, as necessary to fulfill his duties.  Employee shall perform the duties assigned
to him with fidelity and to the best of his ability.

 

The
principal location at which the Employee shall perform his duties hereunder
shall be at the Company’s offices in East Brunswick, New Jersey.  Notwithstanding the foregoing, Employee
shall perform such services at such other locations as may be required for the
proper performance of his duties

 

 

hereunder,
and Employee recognizes that such duties may involve periodic travel, including
travel to the United Kingdom and Israel.

 

Compensation

 

Salary

 

Employee
will be paid $20,833 a month

 

Other Compensation Provisions:

 

Benefits

 

The
Employee will be eligible to participate in the Company’s  401(k) plan to the extent permitted by the
terms of such plan and will be eligible for vacation and holidays consistent
with the Company’s policy as it applies to senior management, and to the extent
permitted by the applicable plan the Employee will be exempt from any delay
periods required for eligibility.

 

In
lieu of the Employee participating in the Company-sponsored employee medical
insurance benefit and disability plans, the Employee will participate in
Tatum’s group plans as a partner of Tatum, and the Company will pay the
Employee an amount equal to that portion of the premium paid by the Company in
respect of employee participation in the Company’s medical and disability
insurance plans.  Such payment will be
made monthly as an expense reimbursement and, to the extent permitted by law,
not part of employee compensation. 
Notwithstanding the above, the Company may include the Employee as a
participant in the Company’s own disability plan or other benefit plans if such
plans are not provided by Tatum.

 

The
Employee will be covered by the Company’s director and officer insurance to the
same extent as other senior management of the Company at no additional cost to
the Employee, and the Company will maintain such insurance at all times while
this agreement remains in effect.

 

The
Company agrees to indemnify the Employee to the full extent permitted by law
and to the same extent as it indemnifies its other senior executive for any
losses, costs, damages, and expenses, including reasonable attorneys’ fees, as
they are incurred, in connection with any cause of action, suit, or other
proceeding arising in connection with employment with the Company.

 

Termination

 

The
Company may terminate the Employee’s employment for any reason upon at least 30
days’ prior written notice to the Employee, such termination to be effective on
the date specified in the notice, provided that such date is no earlier than 30
days from the date of delivery of the notice. 
Likewise, the Employee may terminate his or her employment for any
reason upon at least 30 days’ prior written notice to the Company, such
termination to be effective on the date 30 days following the date of the
notice.  The Employee will continue to
render services and to be paid during such 30-day period, regardless of who gives
such notice; provided, however, that the Company may elect not to have Employee
continue to provide services during such period, and may prohibit Employee from
coming to the Company’s offices during such period, but the Company shall be
obligated to continue to pay Employee during such 30 day period.  The Employee may terminate this letter
agreement immediately if the Company has not remained

 

 

current
in its obligations under this letter or if the Company engages in or asks the
Employee to engage in or to ignore any illegal or unethical conduct.

 

This
agreement will terminate immediately upon the death or permanent disability of
the Employee.  For purposes of this
agreement, permanent disability will be as defined by the applicable policy of
disability insurance or, in the absence of such insurance, by the Company’s
Board of Directors acting in good faith.

 

The
Employee’s Salary will be prorated for the final pay period based on the number
of days in the final pay period up to the effective date of termination or
expiration.

 

 If the termination  of this Agreement is within
90 days of the Beginning Date, the Employee will be entitled to receive a
payment equal to the remaining term of the contract.

 

Non-Disclosure of Confidential Information

 

Employee
shall not, during the term of this Agreement, or at any time following
termination of this Agreement, directly or indirectly, disclose or permit to be
known (other than as is required in the regular course of his duties (including
without limitation disclosures to the Company’s advisors and consultants) or is
required by law (in which case Employee shall, to the extent practicable, give
the Company prior written notice of such required disclosure) or with the prior
written consent of the Company’s chief executive officer), to any person, firm
or corporation, any confidential information acquired by him during the course
of, or incident to, his employment hereunder, relating to the Company and its
subsidiaries (collectively, the “SPI Group”), any client of the SPI
Group or any corporation, partnership or other entity owned or controlled,
directly or indirectly, by any of the foregoing, or in which any of the
foregoing has a beneficial interest, including, but not limited to, the
business affairs of each of the foregoing. 
Such confidential information shall include, but shall not be limited
to, proprietary technology, trade secrets, patented processes, research and
development data, know-how, market studies and forecasts, competitive analyses,
pricing policies, employee lists, personnel policies, the substance of
agreements with customers, suppliers and others, marketing or dealership
arrangements, servicing and training programs and arrangements, customer lists
and any other documents embodying such confidential information.  This confidentiality obligation shall not
apply to any confidential information which thereafter becomes publicly
available other than pursuant to a breach of this section by Employee.

 

All
information and documents relating to the SPI Group as hereinabove described
(or other business affairs) shall be the exclusive property of the Company, and
Employee shall use commercially reasonable best efforts to prevent any
publication or disclosure thereof.  Upon
termination of Employee’s employment with the Company, all documents, records,
reports, writings and other similar documents containing confidential
information, including copies thereof, then in Employee’s possession or control
shall be returned and left with the Company.

 

Employee
agrees that if he breaches, or threatens to commit a breach of, any of the
provisions of this non-disclosure of confidential information section of this
agreement (the “Restrictive Covenant”), the Company shall have, in addition to,
and not in lieu of, any other rights and remedies available to the Company
under law and in equity, the right to injunctive relief and/or to have the
Restrictive Covenant specifically enforced by a court of competent
jurisdiction, it being agreed that any breach or threatened breach of the
Restrictive Covenant would cause irreparable injury to the Company and that
money damages would not provide an adequate remedy to the Company.  Notwithstanding the foregoing, nothing
herein shall constitute a waiver by Employee of his right to contest whether a
breach or threatened breach of the Restrictive Covenant has occurred.

 

 

Miscellaneous

 

This
agreement contains the entire agreement between the parties with respect to the
matters contained herein, superseding any prior oral or written statements or
agreements.

 

The
provisions in this agreement concerning the payment of Salary and the
non-disclosure of confidential information will survive any termination or
expiration of this agreement.

 

Neither
party will be liable for any delay or failure to perform under this Agreement
(other than with respect to payment obligations) if and to the extent such
delay or failure is a result of an act of God, war, earthquake, civil
disobedience, court order, labor dispute, or other cause beyond such party’s
reasonable control.

 

The
terms of this letter agreement are severable and may not be amended except in a
writing signed by the parties.  If any
portion of this agreement is found to be unenforceable, the rest of this
agreement will be enforceable except to the extent that the severed provision
deprives either party of a substantial portion of its bargain.

 

This
agreement will be governed by and construed in all respects in accordance with
the laws of the State of New Jersey without giving effect to conflicts-of-laws
principles.

 

Each
person signing below is authorized to sign on behalf of the party indicated,
and in each case such signature is the only one necessary.

 

Please
sign below and return a signed copy of this letter to indicate your agreement
with its terms and conditions.

 

	
  Sincerely
  yours,

  	
   

  
	
   

  	
   

  
	
  Savient  Pharmaceuticals,
  Inc

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/
  Sim Fass

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:
  Dr. Sim Fass

  	
   

  
	
   

  	
   

  
	
  Title:
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged
  and agreed by:

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
    /s/
  Alan Rubinfeld

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  Alan
  Rubinfeld

  
	
   

  	
  (Print
  name)

  
	
   

  	
   

  
	
   

  	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00062-of-00352.parquet"}]]