Document:

Exhibit 10.2

 

GENZYME CORPORATION

(the “Company”)

 

Senior Executive Long -Term Incentive Plan

 

I.                                         Purpose

 

The
Genzyme Corporation Senior Executive Long-Term Incentive Plan (the “Plan”) has
been established to attract, motivate and retain executives and other senior
officers and key employees by providing appropriate performance-based long-term
incentive awards and to align executive and shareholder interests.

 

II.                                     Administration

 

The Plan will be administered by the Compensation Committee
of the Company’s Board of Directors (the “Committee”).  The Committee has
discretionary authority, subject only to the express provisions of the Plan, to
interpret the Plan; determine eligibility for and grant Awards; determine,
modify or waive the terms and conditions of any Performance Award; prescribe
forms, rules and procedures; and otherwise do all things necessary to
carry out the purposes of the Plan. 
Determinations made by the Committee shall be final and binding upon
Participants (defined in Section III below), the Company, and all other
interested parties.

 

The
Committee may delegate to (i) one or more of its members such of its
duties, powers and responsibilities as it may determine; and (ii) such
employees of the Company or its Affiliates (as defined in Section III
below) or other persons as it determines such ministerial tasks as the
Committee deems appropriate.

 

III.                                 Eligibility

 

The
Company’s chief executive officer, and those executive and senior officers of
the Company and key employees of the Company or its Affiliates recommended by
the Company’s chief executive officer and approved by the Committee, are
eligible to participate in the Plan.

 

For
purposes of the Plan, “Affiliate” means any corporation or other entity that
stands in a relationship to the Company that would result in the Company and
such corporation or other entity being treated as one employer under Section 414(b) or
Section 414(c) of the U.S. Internal Revenue Code of 1986, as amended
(the “Code”).  A “Participant” means an
eligible person who is granted an Award under the Plan.

 

IV.                                Awards
and Performance Periods

 

Long-term
incentive awards (“Awards”) granted under this Plan will consist of (i) time
vesting stock options (“Option Awards”); and (ii) performance vesting
awards (“Performance Awards”) tied to the achievement of pre-established
performance goals (“Performance Measures”) over a three-year performance period
(each, a “Performance Period”). 
Performance

 

 

Awards
may be comprised of performance vesting restricted stock or restricted stock
units (“RSU Awards”), performance cash (“Cash Awards”), or a combination of the
two.  Option Awards and RSU Awards will
be granted pursuant to the Company’s 2004 Equity Incentive Plan and the terms
and conditions set forth in the agreement to be entered into by the Participant
for each Option Award (“Option Award Agreement”) and each RSU Award (“RSU Award
Agreement”), as applicable.  The
Committee shall determine annually the proportion of Option Awards and
Performance Awards that will be granted to Participants.

 

Unless
otherwise established by the Committee, a Performance Period shall begin on January 1
of a calendar year.  The Committee may
establish a Performance Period that begins prior to the termination of one or
more other Performance Periods.

 

V.                                    Grants
of Performance Awards and Establishment of Performance Measures

 

For
each Performance Period, the Committee shall set a target Performance Award for
each Participant.  The Committee also
shall specify the Performance Measure(s) for the Performance Period, the
target for each Performance Measure, and the levels or ranges of performance
and payout opportunities associated with the Performance Measures.  An eligible person who is designated to be a
Participant in the Plan after the beginning of a Performance Period shall
participate on terms and conditions to be decided by the Committee.

 

Performance
Measures shall be expressed in terms of one or more criteria such as the
following (measured either absolutely or by reference to an index or indices
and determined either on a consolidated basis or, as the context permits, on a
divisional, subsidiary, line of business, project or geographical basis or in
combinations thereof):   return on
equity, investments, capital or assets; sales or revenues; assets; expenses;
earnings before or after deduction for all or any portion of interest, taxes,
depreciation, or amortization, whether or not on a continuing operations or an
aggregate or per share basis; one or more operating ratios; stock price, total
shareholder return; or any other objectively determinable criteria set by the
Committee that is not capable of being determined before the end of the
Performance Period.

 

The
Performance Measures established by the Committee may be different each
Performance Period and different Performance Measures may be applicable to
different Participants.  Unless otherwise
specified in a written resolution adopted by the Committee for the applicable
Performance Period, the performance measures shall be (i) relative total
shareholder return measured against a relevant subset of biotechnology, medical
devices and pharmaceutical companies in the S&P 500 Health Care Index as
approved by the Committee and (ii) cash flow return on invested capital.

 

For
each Performance Period, the composition of Performance Awards, the Performance
Measures and targets, and the performance levels/ranges and payout
opportunities approved by the Committee shall be set forth in a summary that
will be maintained with a copy of this Plan.

 

 

VI.                            Conditions
to Earning Awards and Payment of Actual Earned Awards

 

After
the completion of a Performance Period, the Committee will determine for each
Participant the number of RSU Awards that have potentially vested and any
amounts potentially earned under Cash Awards no later than March 15th of the year following the end of such
Performance Period.  Performance Awards
shall be potentially earned for a particular Performance Period only if the
Performance Measure(s) with respect to such Performance Period are
achieved at the threshold level of performance set by the Committee in the
Committee’s sole determination.  Where
applicable, the attainment of the Performance Measures shall be determined in
accordance with generally accepted accounting principles (“GAAP”) or, with
respect to non-GAAP measures, in accordance with how the Company reports such
non-GAAP measures to investors.  Except
as the Committee may otherwise provide at the time of granting an Award,
objectively determinable adjustments shall be made to any Performance Measure
for one or more items of gain, loss, profit or expense (A) determined to
be extraordinary or unusual in nature or infrequent in occurrence, (B) related
to the disposal of a business segment, (C) related to a change in
accounting principle under GAAP, (D) related to discontinued operations
that do not qualify as a segment of a business under GAAP, or (E) attributable
to the business operations of any entity acquired by the Company during the
fiscal year.  Such adjustments shall be
determined in accordance with GAAP, where applicable, or if such adjustments
relate to a non-GAAP measure, in accordance with how the Company reports non-GAAP
measures to investors.

 

Except
as provided in Sections VII and VIII below, actual vesting of potentially vested
RSU Awards and actual earning of potentially earned Cash Awards shall not occur
unless a Participant remains employed by the Company or its Affiliates through
the date that actual earned RSU Awards are settled and actual earned Cash
Awards are paid.  Delivery of shares of
Genzyme common stock underlying actual vested RSU Awards shall be made in
accordance with the terms of the 2004 Equity Incentive Plan and the RSU Award
Agreement provided to Participants. 
Actual earned Cash Awards will be paid as soon as practicable after the
potentially earned Award is determined, but in no event later than March 15th of the year following the end of the
Performance Period.

 

VII.                            Termination
of Service for Certain Reasons; Other Change in Employee Status

 

If
a Participant terminates employment with the Company or its Affiliates before
the settlement and payment of potentially earned Performance Awards by reason
of death, disability (in accordance with the Company’s Long Term Disability
Policy or any other applicable Human Resources policy in effect at the time of
the Participant’s employment termination) or Retirement, the Participant’s
Awards for all Performance Periods in effect at the time of such termination of
service shall be deemed actually earned on a prorated basis with the ratio of (x) the
number of completed months (rounded to the nearest whole number) of employment
during each such Performance Period to (y) the number of months in each
such Performance Period.  Payment of such
pro-rated actually earned Performance Awards shall occur only if they are
potentially earned such that the Performance Measures(s) for the
applicable Performance Period are achieved at the threshold level of
performance set by the Committee and shall occur after the end of the
applicable Performance Periods on the dates that all other Participants receive
settlement or payment of their respective actual earned Performance
Awards.  For purposes of the Plan, “Retirement”
means a Participant’s termination of employment with the Company or an 

 

 

Affiliate
for any reason except Cause after attaining 60 years of age and five years of
combined service with the Company or any Affiliate.  For purposes of the Plan, “Cause” shall mean (A) the
willful and continued failure by a Participant to substantially perform his or
her duties with the Company or any Affiliate (other than any such failure
resulting from his or her incapacity due to physical or mental illness) after a
written demand for substantial performance is delivered to the Participant by the
Company or Affiliate, which demand specifically identifies the manner in which
the Company or Affiliate believes that he or she has not substantially
performed his or her duties, or (B) the willful engaging by the
Participant in conduct which is demonstrably and materially injurious to the
Company or its Affiliates, monetarily or otherwise.  No act, or failure to act, on the Participant’s
part shall be deemed “willful” unless done, or omitted to be done, by him or
her not in good faith and without reasonable belief that his or her action or
omission was in the best interest of the Company or its Affiliates.

 

The
Committee in its sole discretion will make determinations for the application
of the Plan to eligible persons or Participants who have a change in employee
status, such as demotion, change in hours or leave of absence.

 

VIII.                        Change
in Control

 

If
the effective date of a Change in Control (as defined in a Participant’s RSU
Award Agreement) occurs during a Participant’s employment with the Company, then
as of such date:  all Performance Periods
for any RSU Awards in effect shall be deemed to have been completed, the target
levels of performance set for the respective Performance Measures for such RSU
Awards shall be deemed to have been attained, and such RSU Awards shall be
deemed to be actually earned at the target level on a prorated basis with the
ratio of  (x) the number of
completed months (rounded to the nearest whole number) from the beginning of
each such Performance Period to the effective date of the Change in Control to (y) the
number of months in each such Performance Period.  Notwithstanding the foregoing and Section VII,
for a Participant whose employment terminated during any Performance Period by
reason of death, disability or Retirement prior to the effective date of a
Change in Control, the target levels of performance set for the respective
Performance Measures for all of such Participant’s outstanding RSU Awards shall
be deemed to have been attained, and such RSU Awards shall be deemed to be
actually earned at the target level on a pro-rated basis with the ratio of (x) the
number of completed months (rounded to the nearest whole number) of employment
during each such Performance Period to (y) the number of months in each
such Performance Period.  Delivery of
shares of Genzyme common stock underlying actual pro-rated vested RSU Awards
shall be made in accordance with the terms of the 2004 Equity Incentive Plan
and the RSU Award Agreement provided to Participants.

 

IX.                                Section 409A

 

Each
Performance Award will contain such terms as the Committee determines in
accordance with this Plan, and shall be construed and administered, such that
the Performance Award either (i) qualifies for an exemption from the
requirements of Section 409A of the Code or (ii) satisfies such
requirements.

 

 

X.                                    Amendment
and Termination

 

The
Committee may at any time or times amend the Plan or any outstanding
Performance Awards for any purpose that may at the time be permitted by law,
and may at any time terminate the Plan as to future grants of Performance
Awards; provided, however, that except as otherwise expressly provided in the
Plan, the Committee may not, without a Participant’s consent, alter the terms
of a Performance Award so as to affect adversely the Participant’s rights under
the Performance Award, unless the Committee expressly reserved the right to do
so when the Performance Award was granted.

 

XI.                                Miscellaneous

 

(a)                                  Rights Limited.  Nothing in the Plan will be construed as
giving any person the right to continued employment or employment for a
specific period of time with the Company or its Affiliates, or any rights as a
shareholder except to shares of the Company’s common stock issued under the
2004 Equity Incentive Plan in connection with the settlement of actual earned
RSU Awards.  In no event shall the Plan,
or any Performance Award under the Plan, form a part of an employee’s contract
of employment, if any.  The loss of
existing or potential profit in any Performance Award will not constitute an element
of damages in the event of termination of employment for any reason, even if
the termination is in violation of an obligation of the Company or Affiliate to
the Participant.

 

(b)                                 Other
Compensation Arrangements.  The
existence of the Plan or the grant of any Performance Award will not in any way
affect the Company’s right to provide any employee bonuses or other
compensation in addition to Performance Awards granted under the Plan.

 

(c)                                  Withholding
Taxes.  Any taxes required to be
withheld by federal, state or local governments will be deducted from all
payments of actual earned Cash Awards under the Plan and, for actual earned RSU
Awards, will be handled in accordance with the terms of the Participant’s RSU
Award Agreement for each such RSU Award.

 

(d)                                 Unfunded Status
of Cash Awards.  All actual
earned Cash Awards will be paid from the Company’s general assets.  Nothing contained in this Plan will require
the Company to set aside or hold in trust any funds for the benefit of any
Participant.

 

(e)                                  Effective Date.  The Plan is effective as of January 22,
2010.Exhibit 10.3

 

GENZYME CORPORATION

(the “Company”)

[Tier I]

 

Performance Restricted Stock Unit Award Agreement (the “Award Agreement”)

 

under

 

Genzyme Corporation 2004 Equity Incentive Plan (the “Equity Plan”) and Senior
Executive Long-Term Incentive Plan (the “LTI Plan” and together with the Equity
Plan, the “Plans”)

 

1.                                       Plans
Incorporated by Reference.  This
Performance Restricted Stock Unit Award (the “Award”) is issued pursuant to the
terms of the Plans (as amended or may be amended) and this Award Agreement, and
may be amended as provided in the Plans. 
This Award Agreement does not set forth all of the terms and conditions
of the Plans, which are incorporated herein by reference. Copies of the Plans
may be obtained upon written request without charge from the Shareholder
Relations Department of the Company.

 

2.                                       Grant of
Performance Vesting Restricted Stock Units (“Performance RSUs”).  The Compensation Committee of the Company’s
Board of Directors (the “Committee”) has granted to you the opportunity to earn
the number of Performance RSUs set forth in the Notice of Grant of Award
attached to this Award Agreement based on the achievement of the Performance
Measures at the end of the Performance Period specified in Exhibit A to
this Award Agreement and your continued employment in accordance with the
terms, conditions and restrictions set forth in this Award Agreement.  Earned Performance RSUs will be settled by
delivery of one share of the Company’s common stock, $.01 par value per share
(each a “Share” and together, the “Shares”) for each RSU being settled.

 

3.                                       Exhibit A.  The Performance Period, Performance Measures
and Performance Levels for your Performance RSUs are specified on Exhibit A
to this Award Agreement.

 

4.                                       Potential and
Actual Vesting of Performance RSUs.  The number of your Performance RSUs that vest
will be conditioned upon both “Performance” vesting and “Continuous Service”
vesting.  As soon as practicable after
the completion of the Performance Period, the Committee shall determine the
actual level of attainment for each Performance Measure, and from this, your
number of potential vested Performance RSUs shall
be determined as described in Exhibit A (the “Performance Qualified Shares”).  The number of Performance Qualified Shares
that you actually earn is conditioned and determined upon your satisfaction of
the Continuous Service vesting requirements set forth in Section 5 below.

 

5.                                       Continuous
Service Requirement.   If you
have been continuously employed by (i) the Company, (ii) an Affiliate
(as defined in the Equity Plan) or (iii) a corporation or other entity (or
parent or subsidiary thereof) assuming this Award Agreement or issuing a
substitute 

 

 

equity-based
award pursuant to the Equity Plan (collectively, “Group”) through the date on
which Performance Qualified Shares are settled with respect to the Performance
Period (the “Settlement Date”), 100% of your Performance Qualified Shares
determined in accordance with Section 4 above shall be earned and this
Award shall be considered vested upon the Settlement Date.  Notwithstanding the foregoing sentence, if
your employment with the Group terminates before the Settlement Date by reason
of death, disability (in accordance with the Company’s Long Term Disability
Policy or any other applicable Human Resources policy in effect at the time of
your employment termination) or Retirement (as defined in the LTI Plan), then
you shall earn and vest in the number of your Performance Qualified Shares, if
any, multiplied by a ratio calculated by dividing (x) the number of
completed months (rounded to the nearest whole number) of continuous employment
actually completed by you in the Performance Period by (y) the number of
months constituting the entire Performance Period.

 

If
your employment with the Group terminates before the Settlement Date for any
reason other than death, disability or Retirement, then you shall not earn any
Performance Qualified Shares, you shall have no right, title or interest in and
to the Shares subject to this Performance Restricted Stock Unit Award, and this
Award shall terminate upon such termination of your employment.

 

6.                                       Change in
Control. Notwithstanding anything to the contrary in Sections 4 and 5 above,
if a Change in Control (as defined in the Participant’s Amended and Restated
Executive Employment Agreement) occurs before the end of the Performance Period
and (A) you have been continuously employed by the Group through the
effective date of the Change in Control, then upon such effective date, you
will immediately earn and vest in the number of Performance RSUs equal to the
designated number of Performance RSUs set forth on your Notice of Grant Award
multiplied by a ratio calculated by dividing (x) the number of completed
months (rounded to the nearest whole number) from the beginning of the
Performance Period through the effective date of the Change in Control by (y) the
number of months constituting the entire Performance Period (“Change in Control
Shares”); or (B) your employment with the Group terminated by reason of
death, disability or Retirement during such Performance Period and before the
effective date of the Change in Control, then upon such effective date, you
shall earn and vest in the number of Performance RSUs equal to the designated
number of Performance RSUs set forth on your Notice of Grant Award multiplied
by the same ratio set forth in the last sentence of Section 5 above and
the Shares to which you are entitled will be delivered at the same time as
Change in Control Shares are delivered pursuant to Section 7 below.

 

7.                                       Delivery of
Shares.  If your Performance Qualified
Shares are determined to be earned in accordance with Section 5 above, or
if any Change in Control Shares are determined to be earned in accordance with Section 6
above, then as soon as practicable after any such determination and in no event
later than March 15th of the calendar year following the calendar year in
which such determination occurs, the Company shall deliver to you the number of
Shares to which you are entitled pursuant to Sections 5 or 6.

 

 

8.                                       Performance
Restricted Stock Unit Award Not Transferable. This Performance
Restricted Stock Unit Award is not transferable by you otherwise than by will
or the laws of descent and distribution. The naming of a Designated Beneficiary
does not constitute a transfer.  A “Designated
Beneficiary” means the beneficiary designated by you to receive amounts due
under the Award in the event of your death. 
In the absence of an effective designation by you, your beneficiary will
be your estate.

 

9.                                       Tax Matters.

 

(a) Withholding.  You shall pay to the Company, or make
provision satisfactory to the Company for payment of any amounts required by
law to be withheld with respect to the vesting of this Performance Restricted
Stock Unit Award or the delivery of Shares hereunder.  The Administrator (as defined in the Equity
Plan) may, in its sole discretion, require that a portion of the Shares that
would otherwise have been delivered to you upon the Settlement Date be sold by
you or retained by the Company to satisfy withholding and payment obligations,
or in the case of any such amounts due upon vesting and prior to the Settlement
Date that the number of shares payable under this Performance Restricted Stock
Unit Award may be reduced to satisfy such withholding or payment
obligations.  Such Shares shall be valued
at the Fair Market Value (as defined in the Equity Plan) on the date of sale if
sold, or vesting if retained or reduced. 
All other terms of the sale or retention shall be determined by the
Administrator in its sole discretion. 
The Administrator may, in its sole discretion, require any other
federal, state or local taxes imposed on the sale of the shares to be paid by
you.  In the Administrator’s sole
discretion, such additional tax obligations may be paid in whole or in part in
Shares (but not in excess of the minimum withholding required by law),
including Shares sold upon or retained from the vesting of this Performance
Restricted Stock Unit Award, valued at their Fair Market Value on the date of sale
if sold, or of vesting if retained.  Any
cash proceeds resulting from a sale of Shares pursuant to this section 9 that
are in excess of the taxes due shall be paid to you. The Company and its
Affiliates may, to the extent permitted by law, deduct any tax obligations from
any payment of any kind otherwise due to you.

 

(b) Section 409A.  This Performance Restricted Stock Unit Award
is intended to qualify for the “short-term deferral” exemption from Section 409A
and shall be construed by the Administrator accordingly.  Notwithstanding the preceding sentence,
neither the Group, nor the Administrator, nor any person acting on behalf of
any of them, shall be liable to you by reason of any acceleration of income, or
any tax or additional tax, asserted by reason of any failure of this Award or
any portion thereof to satisfy the requirements for exemption from, or
compliance with, Section 409A of the Code.

 

(c) Section 4999.  Neither the Group, nor the Administrator, nor
any person acting on behalf of any of them, shall be liable to you by reason of
any tax asserted under Section 4999 of the Code.

 

10.                                 Rights Limited.  The Administrator, in its sole discretion,
shall determine from the group of eligible persons whether an individual shall
be a participant under the Plans.  Any
grant made under the Plans shall be made in the sole discretion of the
Committee and no prior 

 

 

grant
shall entitle a person to any future grant. 
Nothing in the Plans or any Performance Restricted Stock Unit Award will
be construed as giving any person the right to continued employment or
employment for a specific period with the Group, or any rights as a shareholder
except as to Shares actually issued under the Equity Plan.  In no event shall the Plans, or any grant
made under the Plans, form a part of an employee’s contract of employment, if
any.  The loss of existing or potential
profit in Performance Restricted Stock Units or Shares will not constitute an
element of damages in the event of termination of employment for any reason,
even if the termination is in violation of an obligation of the Group to the
Participant.

 

11.                                 Acceptance.  Your failure to accept the terms and
conditions of this Performance Restricted Stock Unit Award in accordance with
the requirements of the Administrator can result in adverse consequences to
you, including cancellation of the Performance Restricted Stock Unit Award.

 

 

ACKNOWLEDGED
AND AGREED:

 

 

	
   

  	
   

  
	
  Participant
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Participant
  Name (Print)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  

 

 

GENZYME CORPORATION

(the “Company”)

[Tier II]

 

Performance Restricted Stock Unit Award Agreement (the “Award Agreement”)

 

under

 

Genzyme Corporation 2004 Equity Incentive Plan (the “Equity Plan”) and Senior
Executive Long-Term Incentive Plan (the “LTI Plan” and together with the Equity
Plan, the “Plans”)

 

1.                                       Plans
Incorporated by Reference.  This
Performance Restricted Stock Unit Award (the “Award”) is issued pursuant to the
terms of the Plans (as amended or may be amended) and this Award Agreement, and
may be amended as provided in the Plans. 
This Award Agreement does not set forth all of the terms and conditions
of the Plans, which are incorporated herein by reference. Copies of the Plans
may be obtained upon written request without charge from the Shareholder
Relations Department of the Company.

 

2.                                       Grant of
Performance Vesting Restricted Stock Units (“Performance RSUs”).  The Compensation Committee of the Company’s
Board of Directors (the “Committee”) has granted to you the opportunity to earn
the number of Performance RSUs set forth in the Notice of Grant of Award
attached to this Award Agreement based on the achievement of the Performance
Measures at the end of the Performance Period specified in Exhibit A to
this Award Agreement and your continued employment in accordance with the
terms, conditions and restrictions set forth in this Award Agreement.  Earned Performance RSUs will be settled by
delivery of one share of the Company’s common stock, $.01 par value per share
(each a “Share” and together, the “Shares”) for each RSU being settled.

 

3.                                       Exhibit A.  The Performance Period, Performance Measures
and Performance Levels for your Performance RSUs are specified on Exhibit A
to this Award Agreement.

 

4.                                       Potential and
Actual Vesting of Performance RSUs.  The number of your Performance RSUs that vest
will be conditioned upon both “Performance” vesting and “Continuous Service”
vesting.  As soon as practicable after
the completion of the Performance Period, the Committee shall determine the
actual level of attainment for each Performance Measure, and from this, your
number of potential vested Performance RSUs shall
be determined as described in Exhibit A (the “Performance Qualified Shares”).  The number of Performance Qualified Shares
that you actually earn is conditioned and determined upon your satisfaction of
the Continuous Service vesting requirements set forth in Section 5 below.

 

5.                                       Continuous
Service Requirement.   If you
have been continuously employed by (i) the Company, (ii) an Affiliate
(as defined in the Equity Plan) or (iii) a corporation or other entity (or
parent or subsidiary thereof) assuming this Award Agreement or issuing a
substitute equity-based award pursuant to the Equity Plan (collectively, “Group”)
through the date on 

 

 

which
Performance Qualified Shares are settled with respect to the Performance Period
(the “Settlement Date”), 100% of your Performance Qualified Shares determined
in accordance with Section 4 above shall be earned and this Award shall be
considered vested upon the Settlement Date. 
Notwithstanding the foregoing sentence, if your employment with the
Group terminates before the Settlement Date by reason of death, disability (in
accordance with the Company’s Long Term Disability Policy or any other
applicable Human Resources policy in effect at the time of your employment
termination) or Retirement (as defined in the LTI Plan), then you shall earn
and vest in the number of your Performance Qualified Shares, if any, multiplied
by a ratio calculated by dividing (x) the number of completed months
(rounded to the nearest whole number) of continuous employment actually
completed by you in the Performance Period by (y) the number of months
constituting the entire Performance Period.

 

If
your employment with the Group terminates before the Settlement Date for any
reason other than death, disability or Retirement, then you shall not earn any
Performance Qualified Shares, you shall have no right, title or interest in and
to the Shares subject to this Performance Restricted Stock Unit Award, and this
Award shall terminate upon such termination of your employment.

 

6.                                       Change in
Control. Notwithstanding anything to the contrary in Sections 4 and 5 above,
if a Change in Control (as defined in the Committee vote adopted May 29,
2002) occurs before the end of the Performance Period and (A) you have
been continuously employed by the Group through the effective date of the
Change in Control, then upon such effective date, you will immediately earn and
vest in the number of Performance RSUs equal to the designated number of
Performance RSUs set forth on your Notice of Grant Award multiplied by a ratio
calculated by dividing (x) the number of completed months (rounded to the
nearest whole number) from the beginning of the Performance Period through the
effective date of the Change in Control by (y) the number of months
constituting the entire Performance Period (“Change in Control Shares”); or (B) your
employment with the Group terminated by reason of death, disability or
Retirement during such Performance Period and before the effective date of the
Change in Control, then upon such effective date, you shall earn and vest in
the number of Performance RSUs equal to the designated number of Performance
RSUs set forth on your Notice of Grant Award multiplied by the same ratio set
forth in the last sentence of Section 5 above and the Shares to which you
are entitled will be delivered at the same time as Change in Control Shares are
delivered pursuant to Section 7 below.

 

7.                                       Delivery of
Shares.  If your Performance Qualified
Shares are determined to be earned in accordance with Section 5 above, or
if any Change in Control Shares are determined to be earned in accordance with Section 6
above, then as soon as practicable after any such determination and in no event
later than March 15th of the calendar year following the calendar year in
which such determination occurs, the Company shall deliver to you the number of
Shares to which you are entitled pursuant to Sections 5 or 6.

 

8.                                       Performance
Restricted Stock Unit Award Not Transferable. This Performance
Restricted Stock Unit Award is not transferable by you otherwise than by will
or the laws of 

 

 

descent
and distribution. The naming of a Designated Beneficiary does not constitute a
transfer.  A “Designated Beneficiary”
means the beneficiary designated by you to receive amounts due under the Award
in the event of your death.  In the
absence of an effective designation by you, your beneficiary will be your
estate.

 

9.                                       Tax Matters.

 

(a) Withholding.  You shall pay to the Company, or make
provision satisfactory to the Company for payment of any amounts required by
law to be withheld with respect to the vesting of this Performance Restricted
Stock Unit Award or the delivery of Shares hereunder.  The Administrator (as defined in the Equity
Plan) may, in its sole discretion, require that a portion of the Shares that
would otherwise have been delivered to you upon the Settlement Date be sold by
you or retained by the Company to satisfy withholding and payment obligations,
or in the case of any such amounts due upon vesting and prior to the Settlement
Date that the number of shares payable under this Performance Restricted Stock
Unit Award may be reduced to satisfy such withholding or payment obligations.  Such Shares shall be valued at the Fair
Market Value (as defined in the Equity Plan) on the date of sale if sold, or
vesting if retained or reduced.  All
other terms of the sale or retention shall be determined by the Administrator
in its sole discretion.  The Administrator
may, in its sole discretion, require any other federal, state or local taxes
imposed on the sale of the shares to be paid by you.  In the Administrator’s sole discretion, such
additional tax obligations may be paid in whole or in part in Shares (but not
in excess of the minimum withholding required by law), including Shares sold
upon or retained from the vesting of this Performance Restricted Stock Unit
Award, valued at their Fair Market Value on the date of sale if sold, or of
vesting if retained.  Any cash proceeds
resulting from a sale of Shares pursuant to this section 9 that are in excess
of the taxes due shall be paid to you. The Company and its Affiliates may, to
the extent permitted by law, deduct any tax obligations from any payment of any
kind otherwise due to you.

 

(b) Section 409A.  This Performance Restricted Stock Unit Award
is intended to qualify for the “short-term deferral” exemption from Section 409A
and shall be construed by the Administrator accordingly.  Notwithstanding the preceding sentence,
neither the Group, nor the Administrator, nor any person acting on behalf of
any of them, shall be liable to you by reason of any acceleration of income, or
any tax or additional tax, asserted by reason of any failure of this Award or
any portion thereof to satisfy the requirements for exemption from, or
compliance with, Section 409A of the Code.

 

(c) Section 4999.  Neither the Group, nor the Administrator, nor
any person acting on behalf of any of them, shall be liable to you by reason of
any tax asserted under Section 4999 of the Code.

 

10.                                 Rights Limited.  The Administrator, in its sole discretion,
shall determine from the group of eligible persons whether an individual shall
be a participant under the Plans.  Any
grant made under the Plans shall be made in the sole discretion of the
Committee and no prior grant shall entitle a person to any future grant.  Nothing in the Plans or any Performance
Restricted Stock Unit Award will be construed as giving any person the right to
continued 

 

 

employment
or employment for a specific period with the Group, or any rights as a
shareholder except as to Shares actually issued under the Equity Plan.  In no event shall the Plans, or any grant
made under the Plans, form a part of an employee’s contract of employment, if
any.  The loss of existing or potential
profit in Performance Restricted Stock Units or Shares will not constitute an
element of damages in the event of termination of employment for any reason,
even if the termination is in violation of an obligation of the Group to the
Participant.

 

11.                                 Acceptance.  Your failure to accept the terms and
conditions of this Performance Restricted Stock Unit Award in accordance with
the requirements of the Administrator can result in adverse consequences to
you, including cancellation of the Performance Restricted Stock Unit Award.

 

 

ACKNOWLEDGED
AND AGREED:

 

 

	
   

  	
   

  
	
  Participant
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Participant
  Name (Print)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  

 

 

Exhibit A

 

2010 — 2012 Performance Restricted Stock Unit Award

 

The
Performance Period is from January 1, 2010 through December 31, 2012.

 

The
Performance Measures are (1) cash flow return on invested capital (“CFROI”),
which comprises 50% of the Performance Restricted Stock Unit Award, and (2) relative
total shareholder return measured against the performance of a relevant subset
of biotechnology, medical devices and pharmaceutical companies in the S&P
500 Health Care Index (“Relative TSR”), which comprises the other 50%.

 

CFROI

 

The
three-year CFROI target is:                                                                          13.1%

 

For
performance between 85% and 100% of the CFROI target, the potential payout
range is between 50% and 100% of the number of Performance RSUs associated with
this Performance Measure.

 

Relative
TSR

 

If
Genzyme’s Relative TSR is between the 40th and 65th percentile rank, the potential payout range is
between 35% and 100% of the number of Performance RSUs associated with this
Performance Measure.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]