Document:

exv4wxcyx23y

 

Exhibit 4(c)(23)

2-Year Cliff and Vesting

ELAN CORPORATION, plc

2006 LONG TERM INCENTIVE PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

	 	 	 
	Nonstatutory Stock Option

	 	This Option is not intended to be an
incentive stock option under section 422
of the Internal Revenue Code and will be
interpreted accordingly.
	 
	 	 
	Vesting

	 	Your right to exercise this Option vests
in total on the second anniversary of
the Vesting Start Date, as shown on the
cover sheet. The percentage of the
total number of Shares for which this
Option will be exercisable is as
follows:

	 	 	 	 	 
	Anniversary of Vesting	 	 
	Start Date:	 	Percentage
	 
	 	 	 	 
	Second

	 	 	100	%

	 	 	 
	 

	 	Except as otherwise provided in the
Plan, the entire Option becomes
exercisable if (i) you have served as a
member of the Board of Directors of Elan
for six or more years and your service
as a Director terminates due to your
retirement or resignation; (ii) Elan is
subject to a Change in Control (as
defined in the Plan) and your service as
a Director terminates for any reason;
(iii) you die while you are still a
Director; or (iv) your service as a
Director terminates because of your
Total and Permanent Disability (as
defined below).
	 
	 	 
	 

	 	No additional Shares will vest after the
date your Elan service has terminated
for any reason.
	 
	 	 
	Term

	 	Your Option will expire in any event at
the close of business at Elan’s
registered office on the day before the
10th anniversary of the Date of Option
Grant, as shown on the cover sheet. (It
will expire earlier if your Elan service
terminates, as described below.)
	 
	 	 
	Death

	 	If you die prior to expiration of this
Option, then the right to exercise
vested Shares under this Option will
expire at the

-1-

 

	 	 	 
	 

	 	close of business at
Elan’s registered office on the date
twenty-four months after the date of
death (or on the tenth anniversary of
the Date of Option Grant, if earlier).
During that twenty-four month period,
your estate or heirs may exercise this
Option.
	 
	 	 
	Disability

	 	If your service as a Director terminates
because of your Total and Permanent
Disability, then your right to exercise
vested Shares under this Option will
expire at the close of business at
Elan’s registered office on the date
twenty-four months after your
termination date (or on the tenth
anniversary of the Date of Option Grant,
if earlier). “Total and Permanent
Disability” means that you are unable to
engage in any substantial gainful
activity by reason of any medically
determinable physical or mental
impairment which can be expected to
result in death or which has lasted, or
can be expected to last, for a
continuous period of not less than one
year.
	 
	 	 
	Six Years of Service with Elan

	 	If you have served as a Director for six
or more years and your service as a
Director is terminated by your
retirement or resignation, then your
right to exercise vested Shares under
this Option will expire at the close of
business at Elan’s registered office on
the date twenty-four months after your
termination date (or on the tenth
anniversary of the Date of Option Grant,
if earlier).
	 
	 	 
	Regular Termination

	 	Except as provided above, if you have
not served as a Director for at least
six years at the time your service as a
Director terminates, then your right to
exercise vested Shares under this Option
will expire at the close of business at
Elan’s registered office on the 90th day
after your termination date (or on the
tenth anniversary of the Date of Option
Grant, if earlier).
	 
	 	 
	 

	 	Elan determines when your service
terminates for this purpose.
	 
	 	 
	Restrictions on Exercise

	 	Elan will not permit you to exercise
this Option if the issuance of Shares at
that time would violate any law or
regulation.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this Option,
you must notify Elan by filing the
proper “Notice of Exercise” form at the
address given on the form. Your notice
must specify how many Shares you wish to
purchase. Your notice must also specify
how your Shares should be registered (in
your name only or in your and your
spouse’s names as community property or
as joint tenants with right to
survivorship). The notice will be
effective when it is received by Elan.

-2-

 

	 	 	 
	 

	 	If someone else wants to exercise this
Option after your death, that person
must prove to Elan’s satisfaction that
he or she is entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your Notice of Exercise,
you must include payment of the Exercise
Price for the Shares you are purchasing.
Payment may be made by your personal
check, a cashier’s check or a money
order.
	 
	 	 
	Taxes

	 	You will not be allowed to exercise this
Option unless you make acceptable
arrangements to pay any taxes that may
be due as a result of the Option
exercise.
	 
	 	 
	Restrictions on Resale

	 	By signing this Agreement, you agree not
to sell any Option Shares at a time when
applicable laws or Elan policies
prohibit a sale.
	 
	 	 
	Transfer of Option

	 	Prior to your death, only you may
exercise this Option. You cannot
transfer or assign this Option. For
instance, you may not sell this Option
or use it as security for a loan. If
you attempt to do any of these things,
this Option will immediately become
invalid. You may, however, dispose of
this Option in your will.
	 
	 	 
	 

	 	Regardless of any marital property
settlement agreement, Elan is not
obligated to honor a Notice of Exercise
from your former spouse, nor is Elan
obligated to recognize your former
spouse’s interest in your Option in any
other way.
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have no
rights as a shareholder of Elan until a
proper Notice of Exercise has been filed
with Elan and the Exercise Price has
been tendered. No adjustments are made
for dividends or other rights if the
applicable record date occurs before a
proper Notice of Exercise has been filed
with Elan and the Exercise Price has
been tendered, except as described in
the Plan.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a stock
dividend or a similar change in Elan
stock, the number of Shares covered by
this Option and the Exercise Price per
Share may be adjusted pursuant to the
Plan. In the event where Elan is a
party to a merger, this Option will be
handled in accordance with the Plan.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted and
enforced under the laws of Ireland.

-3-

 

	 	 	 
	The Plan and Other Agreements

	 	The text of the Plan and any amendments
thereto are incorporated in this
Agreement by reference.
	 
	 	 
	 

	 	This Agreement and the Plan constitute
the entire understanding between you and
Elan regarding this Option. Any prior
agreements, commitments or negotiations
concerning this Option are superseded.

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan and evidence your acceptance of the powers of the Committee of the
Board of Directors of the Company that administers the Plan.

Revised: September 2006

-4-Exhibit 10.19

 

EXHIBIT 10.19

THIRD AMENDMENT

TO

ALLERGAN, INC.

SAVINGS AND INVESTMENT PLAN

(RESTATED 2005)

Section 2.18 of the ALLERGAN, INC. SAVINGS AND INVESTMENT PLAN (the “Plan”) is hereby amended by
adding the following paragraph (i):

     (i)     In accordance with paragraph (f) above, an Eligible Employee who was
employed by Esprit Pharma Holding Company, Inc. on October 16, 2007 and who is
classified or identified as such in the payroll records of the Company or in the
Agreement and Plan of Merger, dated as of September 18, 2007, by and among Allergan,
Inc., Esmeralde Acquisition, Inc., Esprit Pharma Holding Company, Inc. and the
Escrow Participant’s Representative, for purposes of the vesting and in-service
withdrawal provisions of the Plan only, receive Credited Service for any period of
employment with Esprit Pharma Holding Company, Inc. prior to it becoming an
Affiliated Company but only to the extent provided in paragraph (e) above.
Notwithstanding anything in this Section to the contrary and for purposes of
determining Credited Service under this paragraph, the Employment Commencement Date
(or Reemployment Commencement Date) of an Eligible Employee described in this
paragraph (i) shall mean, for purposes of paragraph (b), the date (or, in the case
of a Reemployment Commencement Date, the date following a Severance) on which the
Eligible Employee was first credited with an Hour of Service with Esprit Pharma
Holding Company, Inc. including any date prior to Esprit Pharma Holding Company,
Inc. becoming an Affiliated Company.

     IN WITNESS WHEREOF, Allergan, Inc. hereby executes this Third Amendment to the Allergan, Inc.
Savings and Investment Plan (Restated 2005) on this 16th day of October, 2007.

	 	 	 	 	 
	 	 	 
	By:  	/s/ Douglas S. Ingram
 	 	 
	 	Douglas S. Ingram 	 	 
	 	Executive Vice President,

Chief Administrative Officer,

General Counsel and Secretaryexv10w34

 

EXHIBIT 10.34

2008 PERFORMANCE OBJECTIVES – CEO AND PRESIDENT

TARGET BONUS AS A PERCENTAGE OF BASE SALARY

The 2008 target bonus for the Chief Executive Officer (“CEO”) of Allergan, Inc. (the
“Company”) will be an amount equal to 120% of the CEO’s annual base salary as of the last
day of the 2008 fiscal year. The 2008 target bonus for the President of the Company
(“President”) will be an amount equal to 70% of the President’s annual base salary as of
the last day of the 2008 fiscal year. The 2008 target bonus amounts for the CEO and the President
are referred to herein individually as a “Target Bonus Amount” and collectively as the
“Target Bonus Amounts.”

2008 PERFORMANCE OBJECTIVES AND BONUS AMOUNT DETERMINATION

If the Company’s 2008 Adjusted EPS is greater than the Threshold EPS, the CEO and President will be
eligible to receive a bonus based on the following three criteria: (i) 2008 Adjusted EPS, (ii)
2008 Revenue Growth and (iii) 2008 R&D Reinvestment Rate. The bonus (if any) payable will be an
amount determined by multiplying (i) the Target Bonus Amount by (ii) the Target Bonus Multiplier.
In no event, however, will the CEO or President be eligible to receive all or any portion of such
bonus if the Company’s 2008 Adjusted EPS does not exceed the Threshold EPS. For sake of clarity,
if the Company’s performance exceeds any of the targets for 2008 Revenue Growth and/or 2008 R&D
Reinvestment Rate, but actual 2008 Adjusted EPS does not exceed the Threshold EPS, no bonus will be
payable. Payment of the CEO’s and President’s 2008 performance bonus (if any) will be made in
accordance with, and subject to, the terms of the Allergan, Inc. 2006 Executive Bonus Plan, as in
effect on the date hereof (the “Plan”), including, without limitation, the provisions of
Sections 2.4, 3.3 and 6.3 of the Plan.

For purposes of determining the CEO’s and President’s 2008 performance bonus, the following terms
will have the following meanings:

     “2008 Adjusted EPS” means the Company’s 2008 Adjusted Net Earnings divided by the
weighted average number of common shares outstanding on a diluted basis during 2008, rounded to the
fourth decimal place.

     “2008 Adjusted Net Earnings” means the Company’s net earnings from continuing
operations for the 2008 fiscal year, adjusted to:

	 	•	 	remove the effects of extraordinary, unusual or non-recurring items;
	 
	 	•	 	remove the effects of items that are outside the scope of the Company’s core,
on-going business activities;
	 
	 	•	 	remove the effects of accounting changes required by United States generally accepted
accounting principles;
	 
	 	•	 	remove the effects of financing activities;
	 
	 	•	 	remove the effects of expenses for restructuring or productivity initiatives;
	 
	 	•	 	remove the effects of non-operating items;
	 
	 	•	 	remove the effects of spending for acquisitions;
	 
	 	•	 	remove the effects of divestitures; and
	 
	 	•	 	remove the effects of amortization of acquired intangible assets.

1

 

			
	2008 PERFORMANCE OBJECTIVES
	 	ALLERGAN, INC.

     “2008 Revenue Growth” means the percentage increase (if any) in net product sales for
the 2008 fiscal year relative to net product sales for the 2007 fiscal year, adjusted for the
translation effect of changes in foreign exchange rates between each fiscal year, rounded to the
nearest one-hundredth of one percent.

     “2008 R&D Reinvestment Rate” means total research and development expenses for the
2008 fiscal year as a percentage of the Company’s total net sales, for the 2008 fiscal year,
rounded to the nearest one-hundredth of one percent.

     “EPS Target” means an amount per share specified by the Organization and Compensation
Committee at the time of adoption of these performance objectives.

     “Target Bonus Multiplier” means the sum of the “% of Target Bonus Amount”
corresponding to: (a) the Company’s 2008 Adjusted EPS, (b) the Company’s 2008 Revenue Growth, and
(c) the Company’s 2008 R&D Reinvestment Rate, in each case as determined in accordance with the
tables set forth on Exhibit A.

     “Threshold EPS” means the EPS Target, less $0.08.

2008 METHOD OF BONUS PAYMENT

     Bonuses will be paid in cash up to a maximum bonus pool equal to 100% of Plan participants’
bonus targets. Bonuses will be paid in restricted stock or restricted stock units to the extent
the bonus pool exceeds 100% of Plan participants’ bonus targets. Such restricted stock or
restricted stock units will provide for cliff vesting two years from the award effective date. Any
payment in the form of restricted stock or restricted stock units will be issued under the
Company’s 1989 Incentive Compensation Plan or, if adopted by the Company’s stockholders, 2008
Incentive Award Plan. Upon a recipient’s death or Total Disability (as defined below), or upon a
recipient’s Normal Retirement Eligibility Date (as defined below), all of the restrictions imposed
on the recipient’s restricted stock or restricted stock units shall lapse. Total Disability shall
be defined as the inability of a recipient, by reason of mental or physical illness or accident, to
perform any and every duty of the occupation at which such recipient was employed when such
disability commenced, which disability is expected to continue for a period of at least 12 months.
A recipient’s Normal Retirement Eligibility Date shall be defined as the date on which the
recipient has (i) attained age 55 and (ii) been employed by the Company for a minimum of 5 years.

2

 

			
	2008 PERFORMANCE OBJECTIVES
	 	ALLERGAN, INC.

EXHIBIT A

TO

2008 PERFORMANCE OBJECTIVES – CEO AND PRESIDENT

2008 ADJUSTED EPS, 2008 REVENUE GROWTH AND

2008 R&D REINVESTMENT RATE PERFORMANCE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of	 	 	 	 	 
	 	 	 	 	 	% of Target	 	2008	 	 	Target	 	2008 R&D	 	 	% of Target
	2008 EPS	 	2008 Adjusted	 	 	Bonus	 	Revenue	 	 	Bonus	 	Reinvestment	 	 	Bonus
	Range %	 	EPS Range $	 	 	Amount	 	Growth	 	 	Amount	 	Rate	 	 	Amount
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	-2.9%

	 	EPS Target - $0.075
	 	 	 	0.0	%	 	 	12.8	%	 	 	 	0.0	%	 	 	15.72	%	 	 	 	0.0	%
	-2.3%

	 	EPS Target - $0.060
	 	 	 	50.0	%	 	 	13.8	%	 	 	 	2.0	%	 	 	15.97	%	 	 	 	2.0	%
	-1.7%

	 	EPS Target - $0.045
	 	 	 	60.0	%	 	 	14.8	%	 	 	 	4.0	%	 	 	16.22	%	 	 	 	4.0	%
	-1.2%

	 	EPS Target - $0.030
	 	 	 	70.0	%	 	 	15.8	%	 	 	 	6.0	%	 	 	16.47	%	 	 	 	6.0	%
	-0.6%

	 	EPS Target - $0.015
	 	 	 	80.0	%	 	 	16.8	%	 	 	 	8.0	%	 	 	16.72	%	 	 	 	8.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EPS Target

	 	EPS Target
	 	 	 	90.0	%	 	 	17.8	%	 	 	 	10.0	%	 	 	16.97	%	 	 	 	10.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	0.8%

	 	EPS Target + $0.020
	 	 	 	94.0	%	 	 	18.8	%	 	 	 	13.8	%	 	 	17.22	%	 	 	 	13.8	%
	1.5%

	 	EPS Target + $0.040
	 	 	 	98.0	%	 	 	19.8	%	 	 	 	17.5	%	 	 	17.47	%	 	 	 	17.5	%
	2.3%

	 	EPS Target + $0.060
	 	 	 	102.0	%	 	 	20.8	%	 	 	 	21.3	%	 	 	17.72	%	 	 	 	21.3	%
	3.1%

	 	EPS Target + $0.080
	 	 	 	106.0	%	 	 	21.8	%	 	 	 	25.0	%	 	 	17.97	%	 	 	 	25.0	%
	3.8%

	 	EPS Target + $0.100
	 	 	 	110.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

If the Company’s performance exceeds the highest performance level shown above for one or more of
the specified performance measures (i.e., 2008 Adjusted EPS, 2008 Revenue Growth, and 2008 R&D
Reinvestment Rate), the “% of Target Bonus Amount” achieved with respect to that performance
measure will be the maximum “% of Target Bonus Amount” specified for that performance measure. For
example, if 2008 Adjusted EPS equals EPS Target + $0.11, the “% of Target Bonus Amount” will
nonetheless be 110% for that performance measure.

If actual results for any one or more of the performance measures falls between the performance
levels shown above, the bonus will be prorated accordingly.

3

 

			
	2008 PERFORMANCE OBJECTIVES
	 	ALLERGAN, INC.

Each component of the Target Bonus Multiplier will be determined independently of each other
component of the Target Bonus Multiplier; provided that no bonus will be payable in the event the
Company’s 2008 Adjusted EPS does not exceed the Threshold EPS.

4

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