RESTRICTED STOCK AWARD AGREEMENT PURSUANT TO (With Additional Change of Control Provisions)
Exhibit
(10)-vv
RESTRICTED
STOCK AWARD AGREEMENT PURSUANT TO
2003
LONG-TERM INCENTIVE PLAN
(With
Additional Change of Control Provisions)
RESTRICTED
STOCK AWARD AGREEMENT, by Bausch & Lomb Incorporated, a New York corporation
(referred to hereinafter as the "Company"), dated as of the date which appears
on the “Date of Award and Agreement” in the Award Summary attached hereto (the
“Award Summary”) in favor of the individual who appears on the Award Summary
(the "Recipient").
In
accordance with the provisions of the Company’s 2003 Long-term Incentive Plan
(referred to hereinafter as the "Plan"), approved by the shareholders of the
Company on April 29, 2003, the Compensation Committee (referred to hereinafter
as the "Committee") of the Board of Directors of the Company has authorized
the
execution and delivery of this Agreement (the form of which was approved by
the
Committee on April 10, 2007). The Award Summary contains the details of the
awards covered by this Agreement and is incorporated herein in its
entirety.
NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration, the Company and Recipient agree as follows:
1. Award
of Restricted Stock.
Subject
to all the terms and conditions of the Plan and this Agreement, the Company
has
granted to Recipient as of the date set forth on the Award Summary, a restricted
stock award of the number of shares of $.40 par value common stock of the
Company (the “Grant”) indicated on the Award Summary (such number of shares
being subject to adjustment as provided in Section 7 of this
Agreement).
Recipient
acknowledges that shares issued by the Company hereunder are an award and are
neither an option nor a sale to Recipient.
2. Vesting.
Recipient's ownership of the shares granted herein shall vest (meaning that
the
Restriction Period (as defined in the Plan) shall lapse) as provided in the
Award Summary. The Recipient must be a full time, active employee of the Company
on the Vesting Dates as indicated in the Award Summary as a condition to
becoming vested. The vesting requirements of this Section 2 shall be waived
automatically and the entire award granted hereunder shall be fully vested
upon
(i) termination of employment (a) of the Recipient by the Company other than
for
Cause (as defined below) or (b) by the Recipient for Good Reason (as defined
below), in either case following a Change in Control (as defined below), or
(ii)
termination of employment due to death or disability. The terms “Cause” and
“Good Reason” shall have the meaning assigned to them in the Change of Control
Employment Agreement dated __________ between the Company and the Recipient.
The
Committee or the Board of Directors shall determine whether authorized leave
of
absence shall constitute termination of employment, which determination shall
be
final and conclusive. Notwithstanding the foregoing:
(a) This
Grant shall not become fully vested and transferable upon a Change in
Control;
(b) If,
in
connection with a Change in Control, the restricted stock which is the subject
of such grant is converted into cash, securities or other property (the “Change
in Control Consideration”), Recipient shall have a contract right to receive
such Change in Control Consideration provided that such payments shall only
be
made to Recipient on the earlier of (a) the date vesting is schedule to occur
hereunder or (b) the date the Recipient’s employment is terminated by the
Company without Cause or by the Recipient for Good Reason, in each case
following the Change in Control; and
(c) If
the
payments under Section 2(b) would otherwise be subject to tax under Section
409A
of the Internal Revenue Code, such payments shall not commence until six months
after the termination date.
For
purposes of this Agreement, "Change in Control" shall mean:
A. The
acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (a "Person") of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 20% or more of either (i) the
then
outstanding shares of common stock of the Company (the "Outstanding Company
Common Stock") or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however,
that
the following acquisitions shall not constitute a Change of Control: (i) any
acquisition directly from the Company (excluding an acquisition by virtue of
the
exercise of a conversion privilege unless the security being so converted was
itself acquired directly from the Company), (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company,
or
(iv) any acquisition by any corporation pursuant to a reorganization, merger
or
consolidation, if, following such reorganization, merger or consolidation,
the
conditions described in clauses (i), (ii) and (iii) of paragraph C below are
satisfied; or
B. Individuals
who, as of April 28, 2003, constitute the Board of Directors of the Company
(the
"Board" and, as of April 28, 2003, the "Incumbent Board") cease for any reason
to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to April 28, 2003 whose election,
or
nomination for election by the Company's shareholders, was approved by a vote
of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption
of
office occurs as a result of either an actual or threatened election contest
(as
such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board; or
C. Approval
by the shareholders of the Company of a reorganization, merger, binding share
exchange or consolidation, in each case, unless, following such reorganization,
merger, binding share exchange or consolidation, (i) more than 60% of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger, binding share exchange or
consolidation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such reorganization, merger,
binding share exchange or consolidation in substantially the same proportions
as
their ownership, immediately prior to such reorganization, merger, binding
share
exchange or consolidation, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person
(excluding the Company, any employee benefit plan (or related trust) of the
Company or such corporation resulting from such reorganization, merger, binding
share exchange or consolidation and any Person beneficially owning, immediately
prior to such reorganization, merger, binding share exchange or consolidation,
directly or indirectly, 20% or more of the Outstanding Company Common Stock
or
Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such reorganization,
merger, binding share exchange or consolidation or the combined voting power
of
the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors, and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
reorganization, merger, binding share exchange or consolidation were members
of
the Incumbent Board at the time of the execution of the initial agreement
providing for such reorganization, merger, binding share exchange or
consolidation; or
D. Approval
by the shareholders of the Company of (i) a complete liquidation or dissolution
of the Company or (ii) the sale or other disposition of all or substantially
all
of the assets of the Company, other than to a corporation, with respect to
which
following such sale or other disposition, (a) more than 60% of, respectively,
the then outstanding shares of common stock of such corporation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities immediately
prior
to such sale or other disposition in substantially the same proportion as their
ownership, immediately prior to such sale or other disposition, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities,
as
the case may be, (b) no Person (excluding the Company and any employee benefit
plan (or related trust) of the Company or such corporation and any Person
beneficially owning, immediately prior to such sale or other disposition,
directly or indirectly, 20% or more of the Outstanding Company Common Stock
or
Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of
the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors, and (c) at least a majority of the
members of the board of directors of such corporation were members of the
Incumbent Board at the time of the execution of the initial agreement or action
of the Board providing for such sale or other disposition of assets of the
Company.
3. General
Restriction.
This
award shall be subject to the requirement that if at any time the Board of
Directors shall determine, in its discretion, that the listing, registration
or
qualification of the shares subject to such award upon any securities exchange
or under any state or federal law, or the consent or approval of any government
regulatory body, is necessary or desirable as a condition of, or in connection
with, the granting of such award or the issue or vesting of shares thereunder,
such award may not be effective in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Board of
Directors.
4. Dividend
and Voting Rights for Unvested Shares.
Subject
to the risk of forfeiture set forth in Section 2, the Recipient shall have
dividend and voting rights as to unvested common shares. Recipient shall have
all other rights as a shareholder with respect to shares covered by this award
as such shares vest.
5. Non-Transferability
of Award.
The
award granted under this Agreement shall not be transferable by the Recipient
except as may be set forth in the Plan.
6. Share
Withholding Upon Vesting.
Recipient
may elect to have a portion of the stock otherwise issuable to him or her upon
vesting withheld by the Company in order to satisfy applicable federal, state
and local withholding tax requirements, provided that such election complies
with the following:
(a) The
election shall be submitted to the Company in writing and shall be irrevocable;
and
(b) The
value
of the shares subject to the withholding election shall not exceed the maximum
marginal tax rate to which Recipient is subject in connection with the award
granted hereunder.
For
purposes of the foregoing, the shares withheld shall be deemed to have a value
per share equal to the fair market value of the shares on the date the tax
liability arises.
7. Recapitalization.
In the
event there is any recapitalization in the form of a stock dividend,
distribution, split, subdivision or combination of shares of common stock of
the
Company, resulting in an increase or decrease in the number of common shares
outstanding, there shall be a proportionate adjustment made in the number of
shares of common stock issuable upon vesting.
8. No
Right to Employment.
(a) Benefits
and rights provided under the Plan are wholly discretionary and, although
provided by the Company, do not constitute regular and periodic payments. The
benefits and rights provided under the Plan are not to be considered part of
the
Recipient’s salary or compensation under Recipient’s employment for purposes of
calculating any severance, resignation, redundancy or other end of service
payments, vacation, bonuses, long-term service awards, indemnification, pension
or retirement benefits, or any other payments, benefits or rights of any
kind.
(b) The
Grant
issued hereunder, and any future Grants under the Plan are entirely voluntary,
and at the complete discretion of the Company. Neither the Grant nor any future
Grant by the Company shall be deemed to create any obligation to any further
Grants, whether or not such a reservation is explicitly stated at the time
of
such a grant. The Company has the right, at any time and/or on an annual basis,
to amend, suspend or terminate the Plan; provided, however, that no such
amendment, suspension, or termination shall adversely affect the Recipient’s
rights hereunder.
(c) The
Plan
shall not be deemed to constitute, and shall not be construed by the Recipient
to constitute, part of the terms and conditions of employment. The Company
shall
not incur any liability of any kind to the Recipient as a result of any change
or amendment, or any cancellation, of the Plan at any time.
(d) Participation
in the Plan shall not be deemed to constitute, and shall not be deemed by the
Recipient to constitute, an employment or labor relationship of any kind with
the Company.
9. Competing
Work Activities.
(a) Notwithstanding
anything to the contrary contained herein or in the Plan, if Recipient
voluntarily terminates his or her employment with the Company (other than for
Good Reason following a Change in Control) or is terminated for misconduct
or
failure or refusal to perform his or her duties of employment (as determined
by
the Committee), and within a period of one year after such termination shall,
directly or indirectly, engage in a competing activity (as defined below),
Recipient shall be required to remit to the Company, with respect to any shares
granted hereunder which become fully vested on or after the date twelve (12)
months prior to such termination, the fair market value of such shares on the
date of vesting. Such remittance shall be payable in cash or by certified or
bank check or by delivery of shares of Common Stock of the Company registered
in
the name of the grantee duly assigned to the Company with the assignment
guaranteed by a bank, trust company or member firm of the New York Stock
Exchange, or by a combination of the foregoing. Any such shares so delivered
shall be deemed to have a value per share equal to the fair market value of
the
shares on such date. This provision shall, however, become null and void, and
Company's rights to any remittance under this provision automatically shall
be
deemed waived, upon a Change in Control (as defined in Section 2 of this
Agreement).
(b) For
purposes of this Section, Recipient will be deemed to be "engaged in a competing
activity" if he or she owns, manages, operates, controls, is employed by, or
otherwise engages in or assists another to engage in any activity or business
which competes with any business or activity of the Company in which Recipient
was engaged or involved, or which, as of the time of Recipient's termination,
was in a state of research or development by any such business of the
Company.
(c) Nothing
contained in this Section shall be interpreted as or deemed to constitute a
waiver of, or diminish or be in lieu of, any other rights the Company may
possess as a result of Recipient's direct or indirect involvement with a
business competing with the business of the Company.
10. Amendment
of this Agreement.
The
Board of Directors of the Company or the Committee may, from time to time,
require the modification or amendment of the terms of this Agreement, including,
without limiting the foregoing generality, the making of such amendments or
revisions as the Board or the Committee shall deem advisable, provided, however,
that no termination, modification or amendment of this Agreement shall, without
the consent of the Recipient, impair his or her rights hereunder.
11. Notices.
Notices
hereunder shall be in writing and if to the Company shall be delivered
personally to the Secretary of the Company or mailed to its principal office,
Xxx Xxxxxx & Xxxx Xxxxx, Xxxxxxxxx, Xxx Xxxx 00000-0000, addressed to the
attention of the Secretary, and if to the Recipient shall be delivered
personally or mailed to the Recipient at his or her address as the same appears
on the records of the Company.
12. Interpretation
of this Agreement.
All
decisions and interpretations made by the Board of Directors or the Committee
with regard to any question arising hereunder or under the Plan shall be binding
and conclusive on the Company and the Recipient. In the event there is any
inconsistency between the provisions of this Agreement and of the Plan, the
provisions of the Plan shall govern.
13. Successors
and Assigns.
This
Agreement shall bind and inure to the benefit of the parties hereto and the
successors and assigns of the Company and to the extent provided herein to
the
personal representatives, legatees and heirs of the Recipient.
14. Severability
and Saving Provision.
The
parties intend that this Agreement shall be enforced to the maximum extent
possible. If a court of competent jurisdiction: (i) finds any provision of
this
Agreement to be unenforceable, that provision shall be deemed excised and the
remainder of the Agreement shall continue in full force and effect; and (ii)
finds any provision of this Agreement to be unenforceable by reason of its
being
extended for too great a period of time, over too large a geographic area,
or
over too great a range of activities, the Agreement shall be interpreted to
extend over the maximum period of time, geographic range and range of activities
as to which it may be enforceable.
15. Tax
Matters.
(a) The
Company shall have the power and the right to deduct or withhold, or require
Recipient to remit to the Company, an amount sufficient to satisfy taxes imposed
under the laws of any country, state, province, city or other jurisdiction,
including but not limited to income taxes, capital gain taxes, transfer taxes,
and social security contributions, that are required by law to be withheld
with
respect to the Grant, the sale of shares acquired by the Grant, and/or payment
of dividends on shares acquired pursuant to the Grant.
(b) Recipient
agrees to take all steps necessary to comply with all applicable provisions
of
laws of any country, state, province, city or other jurisdiction in exercising
his or her rights under the Plan and this Agreement.
16. Administration
and Compliance with Laws.
(a) This
Agreement shall be subject to all applicable laws, rules, and regulations,
and
to such approvals by any governmental agencies or national securities exchanges
as may be required.
(b) The
Company is issuing the Grant(s) hereunder. Furthermore, this Agreement is not
derived from any preexisting labor relationship between the Recipient and the
Company, but rather from a mercantile relationship.
(c) The
Company will administer the Plan from the U.S. and New York State law and the
Federal laws of the United States (except those provisions relating to conflicts
of law) will govern all Grants issued under the Plan.
17. Privacy.
As a
condition of the Grant, the Recipient consents to the collection, use, and
transfer of personal data as described in this Section to the full extent
permitted by and in full compliance with applicable law.
(a) The
Recipient understands that the Company holds, by means of an automated data
file, certain personal information about the Recipient, including, but not
limited to, name, home address and telephone number, date of birth, social
insurance number, salary, nationality, job title, any shares or directorships
held in the Company, details of all options or other entitlement to shares
awarded, cancelled, exercised, vested, unvested, or outstanding in the
Recipient’s favor, for the purpose of managing and administering the Plan
(“Data”).
(b) The
Recipient further understands that part or all of his/her Data may be also
held
by the Company and/or it Subsidiaries, pursuant to a transfer made in the past
with his/her consent, in respect of any previous Grant, which was made for
the
same purposes of managing and administering of previous award/incentive plans,
or for other purposes.
(c) The
Recipient further understands that his/her local employer will transfer Data
to
the Company and/or its Subsidiaries among themselves as necessary for the
purposes of implementation, administration, and management of the Recipient’s
participation in the Plan, and that the Company and/or its Subsidiary may
transfer data among themselves, and/or each, in turn, further transfer Data
to
any third parties assisting the Company in the implementation, administration,
and management of the Plan (“Data Transferees”).
(d) The
Recipient understands that the Company and/or its Subsidiaries, as well as
the
Data Transferees, are or may be located in his or her country of residence
or
elsewhere, such as the United States. The Recipient authorizes the Company
and/or its Subsidiaries, as well as Data Transferees to receive, possess, use,
retain, and transfer Data in electronic or other form, for the purposes of
implementing, administering, and managing his or her participation in the Plan,
including any transfer of such Data, as may be required for the administration
of the Plan and/or the subsequent holding of shares on his or her behalf, to
a
broker or third party with whom the shares acquired on exercise may be
deposited.
(e) The
Recipient understands that he or she may show his/her opposition to the
processing and transfer of his/her Data, and, may at any time, review the Data,
request that any necessary amendments be made to it, or withdraw his or her
consent herein in writing by contacting the Company. The Recipient further
understands that withdrawing consent may affect his or her ability to
participate in the Plan.
18. General.
The
Recipient has received, and therefore has full knowledge of and understands,
the
terms and conditions of this Agreement. The Recipient acknowledges that copies
of the complete rules of the Plan have also been made available to him/her
at
his/her work center with his/her local employer.
IN
WITNESS WHEREOF, the Company and Recipient have executed this Agreement on
the
day and year first set forth in the Award Summary.
RECIPIENT
By:
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BAUSCH
& LOMB INCORPORATED
By:
Xxxx
X. Xxxxxx, Secretary
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Name
Printed:
Date:
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