Exhibit 10.1
STOCK OPTION
AGREEMENT
THIS AGREEMENT,
dated as of December 14, 2007 is made by and between Rockwood
Holdings, Inc., a Delaware corporation (hereinafter referred
to as the “Company”), and [NAME] an employee of the
Company or a Subsidiary (as defined below) or Affiliate (as defined
below) of the Company, hereinafter referred to as
“Optionee.”
WHEREAS, the
Company wishes to afford the Optionee the opportunity to purchase
shares of its common stock, par value $0.01 per share (the
“Common Stock”);
WHEREAS, the
Company wishes to carry out the Plan (as hereinafter defined), the
terms of which are hereby incorporated by reference and made a part
of this Agreement; and
WHEREAS, the
committee of the Company’s board of directors appointed to
administer the Plan (the “Committee”) has determined
that it would be to the advantage and best interest of the Company
and its shareholders to grant the Option provided for herein to the
Optionee as an incentive for increased efforts during his term of
office with the Company or its Subsidiaries or Affiliates, and has
advised the Company thereof and instructed the undersigned officers
to issue said Option;
NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other
good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as
follows:
ARTICLE I
DEFINITIONS
Whenever the
following terms are used in this Agreement, they shall have the
meaning specified in the Plan or below unless the context clearly
indicates to the contrary.
Section 1.1. -
Affiliate
“Affiliate” shall mean, with
respect to the Company, any entity directly or indirectly
controlling, controlled by, or under common control with, the
Company or any other entity designated by the Board of Directors in
which the Company or an Affiliate has an interest.
Section 1.2. -
Cause
“Cause” shall mean (i) the
Optionee’s willful and continued failure to perform duties,
which are within the control of the Optionee and consistent with
such Optionee’s title and position, that is not cured within
15 days following written notice of such failure, (ii) the
Optionee’s conviction of or plea of guilty or no contest to a
(x) felony or (y) crime involving moral turpitude,
(iii) the Optionee’s willful malfeasance or misconduct
which is injurious to the Company or its Subsidiaries, other than
in a manner that is insignificant or inconsequential, (iv) a
breach by Optionee of the material terms of any non-compete,
non-solicitation or confidentiality covenants or agreements by
which the Optionee may be bound, following notice of such breach
(which notice may be oral or written) or (v) any violation by
the Optionee of any material written Company policy after written
notice of such breach, if such violation is shown by the Company to
be reasonably expected to result in material injury to the
business, reputation or financial condition of the
Company.
Section 1.3. -
Change of Control
“Change of
Control” shall mean (i) sales of all or substantially
all of the assets of the Company to a Person who is not Kohlberg
Kravis Roberts & Co. Ltd (“KKR”) or an
affiliate of KKR (collectively, the “KKR
Partnerships”), (ii) a sale by KKR or any of its
respective affiliates resulting in more than 50% of the voting
stock of the Company being held by a Person or Group that does not
include KKR or any of its respective affiliates, or (iii) a
merger, consolidation, recapitalization or reorganization of the
Company with or into another Person which is not an affiliate of
KKR; if, and only if, as a result of any of the foregoing events in
clauses (i), (ii) or (iii) above, the KKR Partnerships
lose the ability, without the approval of any Person (applicable to
the respective foregoing events in clauses (i), (ii) or
(iii) above) who is not an affiliate of KKR, to elect a
majority of the Board of Directors (or the board of directors of
the resulting entity). Notwithstanding the foregoing, if any
of the transactions described in clauses (i), (ii) or
(iii) of the preceding sentence shall occur and the other
Person involved in such transaction (or its ultimate parent entity)
is an operating company controlled by KKR or an affiliate of KKR
prior to such transaction (an “Alternate KKR Entity”),
then the determination of whether a change of control has occurred
shall be made by determining whether an event set forth in clauses
(i), (ii) or (iii) above has occurred (including the
ability to elect a majority of the Board or the board of directors
of the resulting entity) if the Alternate KKR Entity is treated as
being unaffiliated with KKR and by treating the voting power of the
Alternate KKR Entity in the Company (or the resulting entity) as if
it were held by a Person unaffiliated with KKR.
Section 1.4. -
Disability
“Disability” shall mean a
determination, made at the request of the Optionee or upon the
reasonable request of the Company set forth in a notice to the
Optionee, by a physician selected by the Company and the Optionee,
that the Optionee is unable to perform his duties as an employee of
the Company or its subsidiaries and in all reasonable medical
likelihood such inability will continue for a period in excess of
180 consecutive days.
Section 1.5. -
Good Reason
“Good
Reason” shall mean without the Optionee’s consent,
(i) a reduction in the Optionee’s base salary or annual
bonus opportunity (other than a reduction in base salary that is
offset by an increase in bonus opportunity upon the attainment of
reasonable financial targets, which reduction may not exceed 10% of
the Optionee’s base salary in any 12 month period),
(ii) a substantial reduction in the Optionee’s duties
and responsibilities, which continues beyond 15 days after written
notice by the Optionee to the Company of such reduction,
(iii) the elimination or reduction of the Optionee’s
eligibility to participate in the Company’s benefit programs
that is inconsistent with the eligibility of similarly situated
employees of the Company to participate therein, (iv) a
transfer of the Optionee’s primary workplace by more than 35
miles from the current workplace, (v) any serious chronic
mental or physical illness of an immediate family member that
requires the Optionee to terminate his or her employment with the
Company because of a substantial interference with his or her
duties at the Company or (vi) any failure by the Company to
pay when due any payment owed to the Optionee within 15 days after
the date such payment becomes due.
Section 1.6. - Grant
Date
“Grant
Date” shall mean December 14, 2007, the date on which
the Option provided for in this Agreement is granted.
Section 1.7. -
Group
“Group” shall mean two or more
Persons acting together as a partnership, limited partnership,
syndicate or other group for the purpose of acquiring, holding or
disposing of securities of the Company.
Section 1.8. -
Option
“Option” shall mean the Option
(which shall, in part and to the extent permitted by applicable law
and as set forth on the signature page hereto, be an
“incentive stock option”, within the meaning of
Section 422 of the Code) to purchase Common Stock granted
under this Agreement. To the extent that, for any reason, an
Option intended to be an incentive stock option does not qualify as
an incentive stock option, it shall be deemed an option that is not
an incentive stock option.
Section 1.9. -
Person
“Person” shall mean
“person”, as such term is used for purposes of
Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended (or any successor section
thereto).
Section 1.10. -
Plan
“Plan”
shall mean the Amended and Restated 2005 Stock Purchase and Option
Plan of Rockwood Holdings, Inc. and Subsidiaries.
Section 1.11.
- Retirement
“Retirement” shall mean retirement
at age 62 or over (or such other age as may be approved by the
Board of Directors) after having been employed by the Company or a
Subsidiary for at least five full years.
Section 1.12.
- Secretary
“Secretary” shall mean the
Secretary of the Company.
ARTICLE II
GRANT OF
OPTIONS
Section 2.1.
- Grant of Option
For good and
valuable consideration, on and as of the date hereof the Company
irrevocably grants to the Optionee an Option to purchase any part
or all of an aggregate of the number of shares set forth on the
signature page hereof of its Common Stock upon the terms and
conditions set forth in this Agreement.
Section 2.2.
- Exercise Price
Subject to
Section 2.4, the exercise price of the shares of Common Stock
covered by the Option shall be $32.39 per share without commission
or other charge (which is the fair market value per share of the
Common Stock on the Grant Date).
Section 2.3.
- No Guarantee of Employment
Nothing in this
Agreement or in the Plan shall confer upon the Optionee any right
to continue in the employ of the Company or any Subsidiary or
Affiliate or shall interfere with or restrict in any way the rights
of the Company and its Subsidiaries or Affiliates, which are hereby
expressly reserved, to terminate the employment of the Optionee at
any time for any reason whatsoever, with or without
cause.
Section 2.4.
- Adjustments in Option Pursuant to Merger, Consolidation,
etc.
(a) Subject
to Sections 8 and 9 of the Plan, in the event that the outstanding
shares of the stock subject to the Option, are, from time to time,
changed into or exchanged for a different number or kind of shares
of the Company or other securities of the Company by reason of a
merger, consolidation, recapitalization, reclassification, stock
split, stock dividend, combination of shares, or other corporate
event, the Committee shall make, as appropriate and equitable, an
adjustment in the number and kind of shares and/or the amount of
consideration as to which or for which, as the case may be, such
Option, or portions thereof then unexercised, shall be exercisable
and/or, other than in an event that is a Change of Control, shall
pay to the Optionee a dividend in respect of the shares of Common
Stock subject to the Option, in any event in order to allow the
Optionee to participate in such corporate event in an equitable
manner. Any such adjustment made by the Committee shall be
final and binding upon the Optionee, the Company and all other
interested persons.
(b) Subject
to Sections 8 and 9 of the Plan, in the event of a Change of
Control in which all of the then outstanding Common Stock will be
cancelled and converted into the right to receive a cash payment
per share of Common Stock (such cash payment, the “Change of
Control Consideration”), the Committee may, in its
discretion, either: (i) cause the Option (to the extent then
outstanding and not previously exercised) to, effective as of the
effective date of such a Change of Control, be converted into a
right to receive a cash payment (payable as soon as practicable
after the Change of Control) equal to the product of (x) the
excess, if any, of (A) the Change of Control Consideration,
over (B) the exercise price per share of Common Stock subject
to such Option, multiplied by (y) the total number of shares
of Common Stock subjec
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