INVENTIV HEALTH, INC.
2006 LONG-TERM INCENTIVE
PLAN
(Amended April 27, 2009)
inVentiv
Health, Inc. (the “Company”), a Delaware corporation,
hereby establishes and adopts the following 2006 Long-Term
Incentive Plan (the “Plan”).
The purpose of
the Plan is to assist the Company and its Subsidiaries in
attracting and retaining selected individuals to serve as
directors, employees , consultants and/or advisors of the Company
and its Subsidiaries who are expected to contribute to the
Company's success and to achieve long-term objectives which will
inure to the benefit of all stockholders of the Company through the
additional incentives inherent in the Awards hereunder.
2.1.
“Award” shall mean any Option, Stock Appreciation
Right, Restricted Stock Award, Other Stock Unit Award, Performance
Award or any other right, interest or option relating to Shares or
other property (including cash) granted pursuant to the provisions
of the Plan.
2.2.
“Award Agreement” shall mean any written agreement,
contract or other instrument or document evidencing any Award
granted by the Committee hereunder, including through an electronic
medium.
2.3.
“Board” shall mean the board of directors of the
Company.
2.4.
“Change of Control” shall mean a transaction or a
series of related transactions involving (i) a sale, transfer or
other disposition of all or substantially all of the
Company’s assets, (ii) the consummation of a merger or
consolidation of the Company or (iii) a sale or exchange of capital
stock of the Company, in any case as a result of which the
stockholders of the Company immediately prior to such transaction
or series of related transactions own, in the aggregate, less than
a majority of the outstanding voting capital stock or equity
interests of the surviving, resulting or transferee
entity.
2.5
“Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time.
2.6.
“Committee” shall mean the Compensation Committee of
the Board or a subcommittee thereof formed by the Compensation
Committee to act as the Committee hereunder. The Committee shall
consist of no fewer than two Directors, each of whom is (i) a
“Non-Employee Director” within the meaning of Rule
16b-3 of the Exchange Act, (ii) an “outside director”
within the meaning of Section 162(m) of the Code, and (iii) an
“independent director” for purpose of the rules and
regulations of the NASDAQ Stock Market (or such other principal
securities market on which the Shares are traded).
2.7.
“Covered Employee” shall mean an employee of the
Company or its Subsidiaries who is a “covered employee”
within the meaning of Section 162(m) of the Code.
2.8.
“Director” shall mean a non-employee member of the
Board.
2.9.
“Dividend Equivalents” shall have the meaning set forth
in Section 12.5.
2.10.
“Employee” shall mean any employee of the Company or
any Subsidiary and any prospective employee conditioned upon, and
effective not earlier than, such person’s becoming an
employee of the Company or any Subsidiary. Solely for purposes of
the Plan, an Employee shall also mean any consultant or advisor who
is a natural person and who provides services to the Company or any
Subsidiary, so long as such person (i) renders bona fide services
that are not in connection with the offer and sale of the Company's
securities in a capital-raising transaction and (ii) does not
directly or indirectly promote or maintain a market for the
Company's securities.
2.11.
“Exchange Act” shall mean the Securities Exchange Act
of 1934, as amended.
2.12.
“Fair Market Value” shall mean, with respect to any
property other than Shares, the market value of such property
determined by such methods or procedures as shall be established
from time to time by the Committee. The Fair Market Value of Shares
as of any date shall be the per Share closing price of the Shares
as reported on the NASDAQ Stock Market on that date (or if there
were no reported prices on such date, on the last preceding date on
which the prices were reported) or, if the Company is not then
listed on the NASDAQ Stock Market, on such other principal
securities exchange on which the Shares are traded, and if the
Company is not listed on the NASDAQ Stock Market or any other
securities exchange, the Fair Market Value of Shares shall be
determined by the Committee in its sole discretion using
appropriate criteria.
2.13.
“Limitations” shall have the meaning set forth in
Section 10.5.
2.14.
“Option” shall mean any right granted to a Participant
under the Plan allowing such Participant to purchase Shares at such
price or prices and during such period or periods as the Committee
shall determine.
2.15.
“Other Stock Unit Award” shall have the meaning set
forth in Section 8.1.
2.16.
“Participant” shall mean an Employee or Director who is
selected by the Committee to receive an Award under the
Plan.
2.17.
“Payee” shall have the meaning set forth in Section
13.1.
2.18.
“Performance Award” shall mean any Award of Performance
Shares, Performance Units or a Performance Cash Award granted
pursuant to Article 9.
2.19.
“Performance Cash Award” shall mean any cash incentive
granted pursuant to Article 9, the value of which will be paid to
the Participant in cash (unless the Committee determines in its
discretion to make payment thereof in Shares), upon achievement of
such performance goals during the Performance Period as the
Committee shall establish.
2.20.
“Performance Period” shall mean that period established
by the Committee at the time any Performance Award is granted or at
any time thereafter during which any performance goals specified by
the Committee with respect to such Award are to be
measured.
2.21.
“Performance Share” shall mean any grant pursuant to
Article 9 of a unit valued by reference to a designated number of
Shares, which value may be paid to the Participant by delivery of
such property as the Committee shall determine, including cash,
Shares, other property, or any combination thereof, upon
achievement of such performance goals during the Performance Period
as the Committee shall establish at the time of such grant or
thereafter.
2.22.
“Performance Unit” shall mean any grant pursuant to
Section 9 of a unit valued by reference to a designated amount of
property other than Shares (including cash), which value may be
paid to the Participant by delivery of such property as the
Committee shall determine, including cash, Shares, other property,
or any combination thereof, upon achievement of such performance
goals during the Performance Period as the Committee shall
establish at the time of such grant or thereafter.
2.23.
“Permitted Assignee” shall have the meaning set forth
in Section 12.3.
2.24.
“Prior Plan” shall mean the Company’s 1999 Stock
Incentive Plan.
2.25.
“Restricted Stock” shall mean any Share issued with the
restriction that the holder may not sell, transfer, pledge or
assign such Share and with such other restrictions as the
Committee, in its sole discretion, may impose (including any
restriction on the right to vote such Share and the right to
receive any dividends), which restrictions may lapse separately or
in combination at such time or times, in installments or otherwise,
as the Committee may deem appropriate.
2.26.
“Restricted Stock Award” shall have the meaning set
forth in Section 7.1.
2.27.
“Shares” shall mean the shares of common stock of the
Company, par value $0.001 per share.
2.28.
“Stock Appreciation Right” shall mean the right granted
to a Participant pursuant to Section 6.
2.29.
“Subsidiary” shall mean any corporation (other than the
Company) in an unbroken chain of corporations beginning with the
Company if, at the time of the granting of the Award, each of the
corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in
the chain.
2.30.
Substitute Awards” shall mean Awards granted or Shares issued
by the Company in assumption of, or in substitution or exchange
for, awards previously granted, or the right or obligation to make
future awards, by a company acquired by the Company or any
Subsidiary or with which the Company or any Subsidiary
combines.
2.31.
“Vesting Period” shall have the meaning set forth in
Section 7.1.
3. SHARES
SUBJECT TO THE PLAN
3.1 Number of
Shares. (a) Subject to adjustment as provided in Sections 3.1(d)
and 12.2, a total of 6,575,219 Shares shall be authorized for grant
under the Plan. Any Shares that are subject to Awards of Options or
Stock Appreciation Rights shall be counted against this limit as
one Share for every one Share granted. Any Shares that are subject
to Awards other than Options or Stock Appreciation Rights shall be
counted against this limit as (i) 1.5 Shares for every one Share
granted prior to June 17, 2009 or (ii) 1.61 Shares for every one
Share granted on or after June 17, 2009.
(b) If any
Shares subject to an Award or to an award under the Prior Plan are
forfeited or expire, or any Award or award under the Prior Plan is
settled for cash, the Shares shall, to the extent of such
forfeiture, expiration or cash settlement, again be available for
Awards under the Plan, subject to Section 3.1(d) below.
Notwithstanding anything to the contrary contained herein, the
following Shares shall not be added to the Shares authorized for
grant under paragraph (a) of this Section: (i) Shares tendered by
the Participant or withheld by the Company in payment of the
purchase price of an Option, (ii) Shares tendered by the
Participant or withheld by the Company to satisfy any tax
withholding obligation with respect to an Award, (iii) Shares
repurchased by the Company with Option proceeds, and (iv) Shares
subject to a stock-settled Stock Appreciation Right that are not
issued in connection with the stock settlement of the Stock
Appreciation Right on exercise thereof.
(c) Substitute
Awards shall not reduce the Shares authorized for grant under the
Plan or authorized for grant to a Participant in any calendar
year.
(d) Any Shares
that again become available for grant pursuant to this Article
shall be added back as (i) one Share if such Shares were subject to
Options or Stock Appreciation Rights granted under the Plan or
options or stock appreciation rights granted under the Prior Plan
and (ii) as 1.5 Shares (or, if such Shares again become available
for grant on or after June 17, 2009, 1.61 Shares) if such Shares
were subject to Awards other than Options or Stock Appreciation
Rights granted under the Plan or awards other than options or stock
appreciation rights granted under the Prior Plan.
3.2. Character
of Shares. Any Shares issued hereunder may consist, in whole or in
part, of authorized and unissued shares, treasury shares or shares
purchased in the open market or otherwise.
4. ELIGIBILITY
AND ADMINISTRATION
4.1.
Eligibility. Any Employee or Director shall be eligible to be
selected as a Participant.
4.2.
Administration. (a) The Plan shall be administered by the
Committee. The Committee shall have full power and authority,
subject to the provisions of the Plan and subject to such orders or
resolutions not inconsistent with the provisions of the Plan as may
from time to time be adopted by the Board, to: (i) select the
Employees and Directors to whom Awards may from time to time be
granted hereunder; (ii) determine the type or types of Awards, not
inconsistent with the provisions of the Plan, to be granted to each
Participant hereunder; (iii) determine the number of Shares to be
covered by each Award granted hereunder; (iv) determine the terms
and conditions, not inconsistent with the provisions of the Plan,
of any Award granted hereunder; (v) determine whether, to what
extent and under what circumstances Awards may be settled in cash,
Shares or other property; (vi) determine whether, to what extent,
and under what circumstances cash, Shares, other property and other
amounts payable with respect to an Award made under the Plan shall
be deferred either automatically or at the election of the
Participant; (vii) determine whether, to what extent and under what
circumstances any Award shall be canceled or suspended; (viii)
interpret and administer the Plan and any instrument or agreement
entered into under or in connection with the Plan, including any
Award Agreement; (ix) correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Award in the manner
and to the extent that the Committee shall deem desirable to carry
it into effect; (x) establish such rules and regulations and
appoint such agents as it shall deem appropriate for the proper
administration of the Plan; (xi) determine whether any Award will
have Dividend Equivalents; and (xii) make any other determination
and take any other action that the Committee deems necessary or
desirable for administration of the Plan. Except as otherwise
provided in Section 10, the Compensation Committee may accelerate
the vesting of any Award in its discretion.
(b) Decisions
of the Committee shall be final, conclusive and binding on all
persons or entities, including the Company, any Participant, and
any Subsidiary. A majority of the members of the Committee may
determine its actions and fix the time and place of its meetings.
No members of the Committee or the Board shall be personally liable
for any action or determination made in good faith with respect to
the Plan, any Award or any settlement of any dispute between a
Participant and the Company.
(c) To the
extent not inconsistent with applicable law, including Section
162(m) of the Code, or the rules and regulations of the principal
securities market on which the Shares are traded, the Committee may
delegate to a committee of one or more directors of the Company or,
to the extent permitted by law, to one or more executive officers
or a committee of executive officers the right to grant Awards to
Employees who are not Directors of the Company and the authority to
take action on behalf of the Committee pursuant to the Plan to
cancel or suspend Awards to Employees who are not Directors or
executive officers of the Company.
5.1. Grant of
Options. Options may be granted hereunder to Participants either
alone or in addition to other Awards granted under the Plan.
Options shall be subject to such terms and conditions, not
inconsistent with the provisions of the Plan, as shall be
determined from time to time by the Committee in its sole
discretion.
5.2. Award
Agreements. All Options granted pursuant to this Article shall be
evidenced by a written Award Agreement. The terms of Options need
not be the same with respect to each Participant. Granting an
Option pursuant to the Plan shall impose no obligation on the
recipient to exercise such Option. Any individual who is granted an
Option pursuant to this Article may hold more than one Option
granted pursuant to the Plan at the same time.
5.3. Option
Price. Other than in connection with Substitute Awards, the option
price per each Share purchasable under any Option granted pursuant
to this Article shall not be less than 100% of the Fair Market
Value of such Share on the date of grant of such Option. Other than
pursuant to Section 12.2, the Committee shall not without the
approval of the Company’s stockholders (a) lower the option
price per Share of an Option after it is granted, (b) cancel an
Option in exchange for cash or another Award (other than in
connection with Substitute Awards) or (c) take any other action
with respect to an Option that may be treated as a repricing under
the rules and regulations of the principal securities market on
which the Shares are traded.
5.4. Option
Term. The term of each Option shall be fixed by the Committee in
its sole discretion; provided that no Option shall be exercisable
after the expiration of (i) ten (10) years from the date the Option
is granted, if the Option was granted prior to June 17 2009, or (i)
seven (7) years from the date the Option is granted, if the Option
was granted on or after June 17 2009.
5.5. Exercise
of Options. Vested Options granted under the Plan shall be
exercised by the Participant or by a Permitted Assignee thereof (or
by the Participant’s executors, administrators, guardian or
legal representative, as may be provided in an Award Agreement) as
to all or part of the Shares covered thereby, by the giving of
notice of exercise to the Company or its designated agent
(including any broker designated as an administrator or service
provider with respect to any or all Awards) and paying or making
arrangements for the payment of the purchase price for the number
of Shares being purchased in accordance with the terms of the
applicable Award Agreement and any procedures established by the
Company its designated agent. Unless otherwise provided in an Award
Agreement, full payment of such purchase price shall be made at the
time of exercise and shall be made (a) in cash or cash equivalents
(including certified check or bank check or wire transfer of
immediately available funds), including cash or cash equivalents
generated from the sale of a number of Shares sufficient for such
purpose in accordance with a broker-assisted exercise program
approved by the Company, (b) by tendering previously acquired
Shares (either actually or by attestation, valued at their then
Fair Market Value), (c) with the consent of the Committee, by
delivery of other consideration (including, where permitted by law
and the Committee, other Awards) having a Fair Market Value on the
exercise date equal to the total purchase price, (d) with the
consent of the Committee, by withholding Shares otherwise issuable
in connection with the exercise of the Option, (e) through any
other method specified in an Award Agreement or (f) any combination
of any of the foregoing. In no event may any Option granted
hereunder be exercised for a fraction of a Share. No adjustment
shall be made for cash dividends or other rights for which the
record date is prior to the date of such issuance.
5.6. Form of
Settlement. In its sole discretion, the Committee may provide that
the Shares to be issued upon an Option's exercise shall be in the
form of Restricted Stock or other similar securities.
5.7. Incentive
Stock Options. The Committee may grant Options intended to qualify
as “incentive stock options” as defined in Section 422
of the Code, to any employee of the Company or any Subsidiary,
subject to the requirements of Section 422 of the Code. Solely for
purposes of determining whether Shares are available for the grant
of “incentive stock options” under the Plan, the
maximum aggregate number of Shares that may be issued pursuant to
“incentive stock options” granted under the Plan shall
be 2,100,000 Shares.
6. STOCK
APPRECIATION RIGHTS
6.1. Grant and
Exercise. The Committee may provide Stock Appreciation Rights,
whether or not in conjunction with all or part of any Option or
other Award granted under the Plan, upon such terms and conditions
as the Committee may establish in its sole discretion.
6.2. Terms and
Conditions. Stock Appreciation Rights shall be subject to such
terms and conditions, not inconsistent with the provisions of the
Plan, as shall be determined from time to time by the Committee in
its sole discretion, including the following:
Upon the
exercise of a Stock Appreciation Right, the holder shall have the
right to receive the excess of (i) the Fair Market Value of one
Share on the date of exercise over (ii) the grant price of the
right on the date of grant, as specified by the Committee in its
sole discretion, which, except in the case of Substitute Awards or
in connection with an adjustment provided in Section 12.2, shall
not be less than the Fair Market Value of one Share on such date of
grant of the right.
Upon the
exercise of a Stock Appreciation Right, the Committee shall
determine in its sole discretion whether payment shall be made in
cash, in whole Shares or other property, or any combination
thereof.
The provisions
of Stock Appreciation Rights need not be the same with respect to
each recipient.
The Committee may impose such other conditions
or restrictions on the terms of exercise and the exercise price of
any Stock Appreciation Right, as it shall deem appropriate.
Notwithstanding the foregoing provisions of this Section 6.2, but
subject to Section 12.2, a Stock Appreciation Right shall generally
have the same terms and conditions as Options, including (i) an
exercise price not less than Fair Market Value on the date of grant
to an employee of the Company or a Subsidiary and (ii) a term not
greater than (A) ten (10) years from the date the Stock
Appreciation Right is granted, if the Stock Appreciation Right was
granted prior to June 17 2009, or (i) seven (7) years from the date
the Stock Appreciation Right is granted, if the Stock Appreciation
Right was granted on or after June 17 2009. In addition to the
foregoing, except as provided in Section 12.2, the Committee shall
not without the approval of the Company’s stockholders (a)
lower the grant price per Share of any Stock Appreciation Right
after it is granted, (b) cancel any Stock Appreciation Right in
exchange for cash or another Award (other than in connection with
Substitute Awards) or (c) take any other action with respect to any
Stock Appreciation Right that may be treated as a repricing under
the rules and regulations of the principal securities market on
which the Shares are traded.
7. RESTRICTED
STOCK AWARDS
7.1. Grants.
Awards of Restricted Stock may be issued hereunder to Participants
either alone or in addition to other Awards granted under the Plan
(a “Restricted Stock Award”), and such Restricted Stock
Awards shall also be available as a form of payment of Performance
Awards and other earned cash-based incentive compensation. A
Restricted Stock Award shall be subject to restrictions imposed by
the Committ