POLYMEDICA CORPORATION Restricted Stock Agreement Granted Under 2000 Stock Incentive Plan
Exhibit 10.54
POLYMEDICA CORPORATION
Restricted Stock Agreement
Granted Under 2000 Stock Incentive Plan
Granted Under 2000 Stock Incentive Plan
AGREEMENT
made this ___ day of ___, between PolyMedica Corporation, a Massachusetts
corporation (the “Company”), and
________ (the “Participant”).
For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:
1. Purchase of Shares.
The Company shall issue and sell to the Participant, and the Participant shall purchase from
the Company, subject to the terms and conditions set forth in this Agreement and in the Company’s
2000 Stock Incentive Plan (the “Plan”),
___ shares (the “Shares”) of common stock, $0.01
par value, of the Company (“Common Stock”), at a purchase price of $0.01 per share. The aggregate
purchase price for the Shares shall be paid by the Participant by check payable to the order of the
Company or such other method as may be acceptable to the Company. Upon receipt by the Company of
payment for the Shares, the Company shall issue to the Participant one or more certificates in the
name of the Participant for that number of Shares purchased by the Participant. The Participant
agrees that certain of the Shares shall be subject to the purchase options set forth in Section 2
of this Agreement and the restrictions on transfer set forth in Section 4 of this Agreement.
2. Purchase Option. Upon the termination of the employment agreement dated
________ by and between the Company and the Participant (the “Employment Agreement”), for
any reason or no reason, with or without cause, prior to
________, the Company shall have
the right and option (the “Purchase Option”) to purchase from the Participant, for a sum of $0.01
per share (the “Option Price”), some or all of the Unvested Shares (as defined below).
“Unvested Shares” means the total number of Shares less the total number of Vested Shares (as
defined herein) at the time the Purchase Option becomes exercisable by the Company. Of the Shares,
___ shall be “Vested Shares” on
________ and the remaining
___ Shares shall vest in
equal installments at the end of each calendar quarter beginning
________ and ending on
________.
3. Exercise of Purchase Option and Closing.
(a) The Company may exercise the Purchase Option by delivering or mailing to the Participant
(or his estate), within 60 days after the termination of the Employment Agreement, a written notice
of exercise of the Purchase Option. Such notice shall specify the number of Shares to be
purchased. If and to the extent the Purchase Option is not so exercised
by the giving of such a notice within such 60-day period, the Purchase Option shall
automatically expire and terminate effective upon the expiration of such 60-day period.
(b) Within 10 days after delivery to the Participant of the Company’s notice of the exercise
of the Purchase Option pursuant to subsection (a) above, the Participant (or his estate) shall,
pursuant to the provisions of the Joint Escrow Instructions referred to in Section 5 below, tender
to the Company at its principal offices the certificate or certificates representing the Shares
which the Company has elected to purchase in accordance with the terms of this Agreement, duly
endorsed in blank or with duly endorsed stock powers attached thereto, all in form suitable for the
transfer of such Shares to the Company. Promptly following its receipt of such certificate or
certificates, the Company shall pay to the Participant the aggregate Option Price for such Shares
(provided that any delay in making such payment shall not invalidate the Company’s exercise of the
Purchase Option with respect to such Shares).
(c) After the time at which any Shares are required to be delivered to the Company for
transfer to the Company pursuant to subsection (b) above, the Company shall not pay any dividend to
the Participant on account of such Shares or permit the Participant to exercise any of the
privileges or rights of a stockholder with respect to such Shares, but shall, in so far as
permitted by law, treat the Company as the owner of such Shares.
(d) The Option Price may be payable, at the option of the Company, in cancellation of all or a
portion of any outstanding indebtedness of the Participant to the Company or in cash (by check) or
both.
(e) The Company shall not purchase any fraction of a Share upon exercise of the Purchase
Option, and any fraction of a Share resulting from a computation made pursuant to Section 2 of this
Agreement shall be rounded to the nearest whole Share (with any one-half Share being rounded
upward).
(f) The Company may assign its Purchase Option to one or more persons or entities.
4. Restrictions on Transfer.
(a) The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose
of, by operation of law or otherwise (collectively “transfer”) any Shares, or any interest therein,
that are subject to the Purchase Option, except that the Participant may transfer such Shares (i)
to or for the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and
any other relatives approved by the Board of Directors (collectively, “Approved Relatives”) or to a
trust established solely for the benefit of the Participant and/or Approved Relatives,
provided that such Shares shall remain subject to this Agreement (including without
limitation the restrictions on transfer set forth in this Section 4 and the Purchase Option) and
such permitted transferee shall, as a condition to such transfer, deliver to the Company a written
instrument confirming that such transferee shall be bound by all of the terms and conditions of
this Agreement or (ii) as part of the sale of all or substantially all of the shares of capital
stock of the Company (including pursuant to a merger or consolidation), provided that, in
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accordance with the Plan, the securities or other property received by the Participant in
connection with such transaction shall remain subject to this Agreement.
(b) The Participant shall have the right, at any time and from time to time, to pledge or
hypothecate the Shares to a commercial bank or financial institution (the “Bank”) as security for a
loan from such Bank. During the term of the pledge or hypothecation agreement, the Company may not
exercise the Purchase Option with respect to the Shares that are subject to the pledge (the
“Pledged Shares”), and if the Participant defaults on such loan, then the Bank may take possession
of the Pledged Shares provided that such Pledged Shares shall remain subject to this
Agreement, other than the Purchase Option which shall terminate with respect to the Pledged Shares
and such permitted transferee shall, as a condition to such transfer, deliver to the Company a
written instrument confirming that such transferee shall be bound by all of the other terms and
conditions of this Agreement.
5. Escrow.
The Participant shall, upon the execution of this Agreement, execute Joint Escrow Instructions
in the form attached to this Agreement as Exhibit A. The Joint Escrow Instructions shall
be delivered to the Secretary of the Company, as escrow agent thereunder. The Participant shall
deliver to such escrow agent a stock assignment duly endorsed in blank, in the form attached to
this Agreement as Exhibit B, and hereby instructs the Company to deliver to such escrow
agent, on behalf of the Participant, the certificate(s) evidencing the Shares issued hereunder.
Such materials shall be held by such escrow agent pursuant to the terms of such Joint Escrow
Instructions.
6. Restrictive Legends.
All certificates representing Shares shall have affixed thereto legends in substantially the
following form, in addition to any other legends that may be required under federal or state
securities laws:
“The shares of stock represented by this certificate are subject to
restrictions on transfer and an option to purchase set forth in a
certain Restricted Stock Agreement between the corporation and the
registered owner of these shares (or his predecessor in interest),
and such Agreement is available for inspection without charge at the
office of the Secretary of the corporation.”
7. Provisions of the Plan.
(a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.
(b) As provided in the Plan, upon the occurrence of an Acquisition Event (as defined in the
Plan), the repurchase and other rights of the Company hereunder shall inure to the benefit of the
Company’s successor and shall apply to the cash, securities or other property which the Shares were
converted into or exchanged for pursuant to such Acquisition Event in the same manner and to the
same extent as they applied to the Shares under this Agreement. If, in
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connection with an Acquisition Event, a portion of the cash, securities and/or other property
received upon the conversion or exchange of the Shares is to be placed into escrow to secure
indemnification or similar obligations, the mix between the vested and unvested portion of such
cash, securities and/or other property that is placed into escrow shall be the same as the mix
between the vested and unvested portion of such cash, securities and/or other property that is not
subject to escrow.
8. Withholding Taxes; Section 83(b) Election.
(a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to the purchase of the Shares by the Participant or the
lapse of the Purchase Option.
(b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the
Participant (and not the Company) shall be responsible for the Participant’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement. The
Participant understands that it may be beneficial in many circumstances to elect to be taxed at the
time the Shares are purchased rather than when and as the Company’s Purchase Option expires by
filing an election under Section 83(b) of the Code with the I.R.S. within 30 days from the date of
purchase.
THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY AND NOT THE
COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THE
COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT’S BEHALF.
9. Miscellaneous.
(a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares pursuant to Section 2 hereof is earned only by continuing service pursuant to the
Employment Agreement (not through the act of being hired or purchasing shares hereunder). The
Participant further acknowledges and agrees that the transactions contemplated hereunder and the
vesting schedule set forth herein do not constitute an express or implied promise of continued
engagement as an employee or consultant for the vesting period, for any period, or at all.
(b) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.
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(c) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.
(d) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.
(e) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery or five days after deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto
at the address shown beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance with this Section
9(e).
(f) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.
(g) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersede all prior agreements and understandings, relating to the subject
matter of this Agreement.
(h) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.
(i) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to any
applicable conflicts of laws.
(j) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the preparation, negotiation, and execution
of this Agreement by legal counsel of the Participant’s own choice or has voluntarily declined to
seek such counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully
aware of the legal and binding effect of this Agreement; and (v) understands that the law firm of
________, is acting as counsel to the Company in connection with the transactions
contemplated by the Agreement, and is not acting as counsel for the Participant.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.
| POLYMEDICA CORPORATION | ||||
| By: | ||||
| Title: | ||||
| Address: 00 Xxxxx Xxxxxx | ||||
| Xxxxxx, XX 00000 | ||||
| PARTICIPANT | ||||
| Address: | ||||
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