UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 


 

Date of Report (Date of earliest event reported): August 7, 2013

 

AmerisourceBergen Corporation

(Exact name of Registrant as specified in its charter)

 

Delaware

 

1-16671

 

23-3079390

(State or Other

 

Commission File Number

 

(I.R.S. Employer

Jurisdiction of

 

 

 

Identification

Incorporation or

 

 

 

Number)

Organization)

 

 

 

 

 


 

1300 Morris Drive

 

 

Chesterbrook, PA

 

19087

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code:   (610) 727-7000

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 5.02.  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On August 7, 2013, the Compensation and Succession Planning Committee (the “Committee”) of the Board of Directors of AmerisourceBergen Corporation (the “Company”) granted Steven H. Collis, the Company’s President and Chief Executive Officer, an equity award under the AmerisourceBergen Corporation Equity Incentive Plan (the “Plan”).  The award is comprised of a stock option to acquire 107,826 shares of the Company’s common stock (“Common Stock”) and a restricted stock award for 77,995 shares of Common Stock.  The stock option has an exercise price per share equal to $58.74, the closing price per share of Common Stock on the grant date and vests in four equal annual installments upon Mr. Collis’s completion of each year of employment over the four-year period measured from the August 7, 2013 grant date.  The stock option has a term of seven years.  Following Mr. Collis’s completion of a three-year service period measured from the August 7, 2013 grant date, the restricted stock award will vest on any date between August 7, 2016 and November 14, 2019 on which the average daily closing price per share of Common Stock calculated for the immediately preceding ninety (90) consecutive trading days is greater than $40.21.

 

In November 2012, the Committee revised its policy on the timing of annual equity awards to executives and other eligible employees.  Previously, the Committee reviewed annual equity awards in February or March of each year.  The Committee now reviews annual equity awards in November of each year.  As a result, fiscal year 2012 equity awards and fiscal year 2013 equity awards were made in the same calendar year.

 

The Committee granted the August 2013 equity award to Mr. Collis to replace the value of a portion of an unvested stock option (originally covering an aggregate of 373,250 shares of Common Stock) granted to Mr. Collis on November 14, 2012 as part of his fiscal year 2013 equity award.  A portion of the November 2012 option was void because the aggregate number of shares of Common Stock subject to equity grants made to Mr. Collis in calendar year 2012 inadvertently exceeded the per person limit under the Plan by 272,423 shares.  The Plan’s per person limit restricts the number of shares of Common Stock that may be subject to awards to any individual in respect of any calendar year.  Accordingly, the November 2012 option was reduced to cover 100,827 shares of Common Stock.  The November 2012 option has an exercise price of $40.21 per share.

 

The description of the stock option granted to Mr. Collis on August 7, 2013 is qualified by reference to the full text of the stock option award agreement attached as Exhibit 10.1 to this report.  The description of the restricted stock granted to Mr. Collis on August 7, 2013 is qualified by reference to the full text of the restricted stock award agreement attached as Exhibit 10.2 to this report.  Exhibits 10.1 and 10.2 to this report are incorporated herein by reference.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d) Exhibits

 

The following exhibits are filed as part of this report:

 

10.1

 

Stock Option Award to Steven H. Collis, dated August 7, 2013

 

 

 

10.2

 

Restricted Stock Award to Steven H. Collis, dated August 7, 2013

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

AMERISOURCEBERGEN CORPORATION

 

 

Date: August 9, 2013

 

 

 

 

By:

/s/ Tim G. Guttman

 

 

 

 

Name: Tim G. Guttman

 

Title: Senior Vice President

 

and Chief Financial Officer

 

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EXHIBIT INDEX

 

Exhibit
Number

 

Description

10.1

 

Stock Option Award to Steven H. Collis, dated August 7, 2013

10.2

 

Restricted Stock Award to Steven H. Collis, dated August 7, 2013

 

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Exhibit 10.1

 

AMERISOURCEBERGEN CORPORATION

 

NONQUALIFIED STOCK OPTION GRANT TO EMPLOYEE

 

Participant:

 

Steven H. Collis

 

 

 

Number of Shares
Subject to Options:

 

107,826

 

 

 

Exercise Price:

 

$58.74

 

 

 

Date of Grant:

 

August 7, 2013

 

 

 

Termination Date:

 

August 7, 2020

 

RECITALS

 

A.                                     By authority of the Board of Directors of AmerisourceBergen Corporation (the “Company”), the Company has adopted the AmerisourceBergen Corporation Equity Incentive Plan (the “Plan”) and as a result, shares thereunder are available for grant to employees of the Company and its direct and indirect subsidiaries. The Board of Directors of the Company has directed the Compensation and Succession Planning Committee (the “Committee”) to administer the Plan.

 

B.                                     On November 14, 2012, the Company granted to the Participant an option to acquire up to 373,250 Shares (the “November 2012 Option”) with respect to the 2013 fiscal year compensation.  It has been determined that a portion of the November 2012 Option covering 272,423 Shares was invalidly granted and accordingly, the maximum number of Shares subject to the November 2012 Option is 100,827 Shares.

 

C.                                     The Company has agreed to grant and issue to the Participant shares of restricted stock and a stock option in replacement of the portion of the November 2012 Option that was deemed to be invalid.  The stock option is subject to the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE , in consideration of the foregoing and the premises contained herein and intending to be legally bound:

 

1.                                       Grant of Option .   Subject to the terms and conditions set forth in this Agreement and in the Plan, the Company hereby grants to the Participant a nonqualified stock option (the “Option”) to purchase shares of common stock of the Company (“Shares”) at an option purchase price of $58.74 per Share (the “Exercise Price”). The Option shall become exercisable according to Paragraph 2 below.

 

2.                                       Exercisability of Option .   Subject to the provisions of Section 7, the Option shall become exercisable as of the following dates, if the Participant is employed by the Company as of the applicable date:

 

Date

 

Percentage Exercisable

 

8/7/2014

 

25

%

8/7/2015

 

25

%

8/7/2016

 

25

%

8/7/2017

 

25

%

 

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Notwithstanding the above but subject to Section 7, the Option shall continue to vest following the Participant’s termination of employment with the Company if such termination of employment with the Company is due to the Participant’s Voluntary Retirement (as defined below).

 

Solely for purposes of this Agreement, employment with the Company will be deemed to include employment with any Subsidiary of the Company (for only so long as such entity remains a Subsidiary of the Company).

 

3.                                       Term of Option .

 

(a)                                  The Option shall have a term of seven years from the date of grant and shall terminate at the expiration of that period (August 7, 2020), unless it is terminated at an earlier date pursuant to the provisions of this Agreement or the Plan.

 

(b)                                  The Option shall automatically terminate upon the occurrence of the first of the following events:

 

(i)                          The expiration of the one-year period after the Participant’s termination of employment with the Company, if the termination is for any reason other than voluntary termination or cause (as defined in the Plan);

 

(ii)                       The expiration of the three-month period after the Participant’s voluntary termination of employment from the Company other than due to the Participant’s Voluntary Retirement;

 

(iii)                    The date on which the Participant’s employment is terminated for cause (as defined in the Plan); or

 

(iv)                   The occurrence of a Triggering Event as described in Section 7(a)(i).

 

For purposes of this Agreement, “Voluntary Retirement” means any voluntary termination of employment by the Participant after reaching age 62 and completing sixty months of continuous service with the Company or its Subsidiaries.

 

Notwithstanding the foregoing, in no event may the Option be exercised after the date that is seven years from the date of grant. Except as specifically set forth herein, any portion of the Option that is not exercisable at the time the Participant ceases to be employed by the Company shall immediately terminate.

 

4.                                       Exercise Procedures .

 

(a)                                  The Participant may exercise part or all of the exercisable portion of the Option. The exercise price of a Stock Option may be paid in cash or previously owned shares or a combination thereof or in whole or in part through the withholding of shares subject to the Stock Option with a value equal to the exercise price. In accordance with the rules and procedures established by the Committee for this purpose, the Stock Option may also be exercised through a “cashless exercise” procedure which is approved by the Committee involving a broker or dealer approved by the Committee, which affords the Participant the opportunity to sell immediately some or all of the shares underlying the exercised portion

 

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of the Stock Option in order to generate sufficient cash to pay the Stock Option exercise price and/or to satisfy withholding tax obligations related to the Stock Option.

 

(b)                                  Subject to Committee consent, the Participant may elect to satisfy the income tax withholding obligation with respect to the exercise of the Option by having shares withheld up to an amount that does not exceed the Participant’s maximum marginal tax rate for federal (including FICA), state and local tax liabilities.

 

(c)                                   The obligation of the Company to deliver Shares upon exercise of the Option shall be subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate by the Committee, including such actions as Company counsel shall deem necessary or appropriate to comply with relevant securities laws and regulations. The Company may require that the Participant (or other person exercising the Option after the Participant’s death) represent that the Participant is purchasing Shares for the Participant’s own account and not with a view to or for sale in connection with any distribution of the Shares, or such other representation as the Committee deems appropriate. All obligations of the Company under this Agreement shall be subject to the rights of the Company as set forth in the Plan to withhold amounts required to be withheld for any taxes, if applicable.

 

5.                                       Change of Control .   The provisions of the Plan applicable to a Change of Control shall apply to the Option. In the event of a Change of Control, the Option shall be fully exercisable, and the Committee may take such actions as it deems appropriate pursuant to the Plan.

 

6.                                       Restrictions on Exercise .   Only the Participant may exercise the Option during the Participant’s lifetime.

 

After the Participant’s death, the Option shall be exercisable (subject to the limitations specified in the Plan) solely by the legal representatives of the Participant, or by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution, to the extent that the Option is exercisable pursuant to this Agreement.

 

7.                                       Special Forfeiture and Repayment Rules .

 

(a)                                  The Participant hereby acknowledges and agrees that in the event that the Participant experiences a Triggering Event (as defined in the Plan) and unless the Committee or its delegate determines otherwise, then:

 

(i)                          any portion of the Option that remains unexercised as of the date the Committee determines that the Participant has experienced a Triggering Event, regardless of whether the Option is vested or unvested as of that date, shall be immediately and automatically forfeited; and

 

(ii)                       if the Participant (or his permitted transferee) exercised all or a portion of the Option within the 12-month period immediately prior to the date of the acts or omissions that gave rise to such Triggering Event or anytime thereafter, within 10 days of receiving written notice from the Company that a Triggering Event has occurred, the Participant shall pay to the Company an amount equal to the product of the number of Shares as to which the Option was exercised, multiplied by the excess, if any, of the Fair Market Value per Share on the date of exercise over the exercise price of Option.

 

3



 

(b)                                  The Committee or its delegate shall determine in its sole discretion whether a Triggering Event has occurred with respect to the Participant.

 

(c)                                   The Participant hereby acknowledges and agrees that the restrictions contained in the Plan are being made for the benefit of the Company in consideration of the Participant’s receipt of the Option. The Participant further acknowledges that the receipt of the Option is a voluntary action on the part of the Participant and that the Company is unwilling to provide the Option to the Participant without including the restrictions contained in the Plan.

 

(d)                                  The Participant hereby consents to a deduction from, and set-off against, any amounts owed to the Participant by the Company or its affiliates from time to time (including, but not limited to, amounts owed to the Participant as wages, severance payments or other fringe benefits) to the extent of the amounts owed to the Company by the Participant under this Agreement.

 

(e)                                   The Special Forfeiture and Repayments provisions of this Agreement and the Plan are in addition to, not in lieu of, any other obligation and/or restriction that the Participant may have with respect to the Company, whether by operation of law, contract, or otherwise, including, without limitation, any non-competition and non-solicitation obligations contained in an employment agreement entered into by and between the Participant and the Company or any of its affiliates.

 

8.                                       Grant Subject to Plan Provisions This grant is made pursuant to the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan. The grant and exercise of the Option are subject to the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan established from time to time by the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights and obligations with respect to withholding taxes, (ii) the Special Forfeiture and Repayment provisions of the Plan, (iii) the registration, qualification or listing of the Shares, (iv) capital or other changes of the Company and (v) other requirements of applicable law. The Participant has received a copy of the Plan, a copy of which is attached hereto, has been provided with the opportunity to read the Plan and is familiar with the terms and provisions thereof. The Committee shall have the authority to interpret and construe the Option in accordance with this designation and pursuant to the terms of the Plan, and its decision shall be binding and conclusive as to any questions arising hereunder.

 

9.                                       No Employment Rights .   The grant of the Option shall not confer upon the Participant any right to continue in the employ of the Company and shall not interfere in any way with the right of the Company to terminate the Participant’s employment at any time. The right of the Company to terminate at will the Participant’s employment at any time for any reason is specifically reserved.

 

10.                                Tax Consequences .   The Participant acknowledges that the Company has not advised the Participant regarding the Participant’s income tax liability in connection with the grant or vesting of the Option. The Participant is not relying on any statements or representations of the Company or any of its agents in regard to such liability. 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 the transactions contemplated by this Agreement.

 

11.                                Assignment and Transfers .   The rights and interests of the Participant under this Agreement may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of other than by will or by the laws of descent and distribution.

 

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12.                                Applicable Law .   The validity, construction, interpretation and effect of this instrument shall be governed by and determined in accordance with the laws of the state of Delaware, without giving effect to conflicts of laws principles thereof.

 

13.                                Notice .   Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the Committee at 1300 Morris Drive, Chesterbrook, PA 19087, and any notice to the Participant shall be addressed to such Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

 

14.                                Acknowledgement .   By accepting the terms of this Agreement, the Participant acknowledges that (i) the Participant may exercise the November 2012 Option (subject to the terms and conditions of such option) for up to 100,827 Shares only and (ii) that the November 2012 Option is invalid with respect to 272,423 Shares and the Participant shall have no right to receive any Shares or other consideration with respect to such invalid portion of the November 2012 Option.

 

15.                                GRANT ACCEPTANCE YOU MUST ACCEPT THE TERMS OF THIS AGREEMENT WITHIN 60 DAYS OF RECEIPT. IF YOU DO NOT ACCEPT THE TERMS AS INSTRUCTED, THIS AGREEMENT WILL AUTOMATICALLY, WITHOUT FURTHER ACTION OF THE COMPANY OR THE COMMITTEE, TERMINATE AND THE AWARD WILL BE FORFEITED AT MIDNIGHT ON THE 60TH DAY.

 

IN WITNESS WHEREOF , the Company has caused its duly authorized officer to execute this Agreement effective as of the date of grant.

 

 

 

AMERISOURCEBERGEN CORPORATION

 

 

 

 

 

/s/ John G. Chou

 

John G. Chou

 

Executive Vice President and General Counsel

 

Accepted:

 

/s/ Steven H. Collis

 

 

Steven H. Collis

 

 

President and Chief Executive Officer

 

5


Exhibit 10.2

 

AMERISOURCEBERGEN CORPORATION

 

RESTRICTED STOCK AWARD TO EMPLOYEE

 

Participant:

 

Steven H. Collis

 

 

 

Number of Shares Granted:

 

77,995

 

 

 

Date of Grant:

 

August 7, 2013

 

RECITALS

 

This Restricted Stock Award (the “Award Agreement”) is made by AmerisourceBergen Corporation, a Delaware corporation (the “Company”), pursuant to the AmerisourceBergen Corporation Equity Incentive Plan, as amended (the “Plan”). The Board of Directors of the Company has directed the Compensation and Succession Planning Committee (the “Committee”) to administer the Plan.

 

WHEREAS , on November 14, 2012, the Company granted to the Participant an option to acquire up to 373,250 Shares (the “November 2012 Option”) with respect to the 2013 fiscal year compensation.  It has been determined that a portion of the November 2012 Option covering 272,423 Shares was invalidly granted and accordingly, the maximum number of Shares subject to the November 2012 Option is 100,827 Shares.

 

WHEREAS , the Company has agreed to grant and issue to the Participant shares of Restricted Stock (as defined below) and a stock option in replacement of the portion of the November 2012 Option that was deemed to be invalid.  The Restricted Stock award is subject to certain restrictions and the terms and conditions contained in this Award Agreement.

 

NOW, THEREFORE , in consideration of the foregoing and the premises contained herein and intending to be legally bound hereby:

 

1.                                       Definitions . Unless otherwise defined herein, capitalized terms used in this Award Agreement shall have the meanings ascribed to them in the Plan. As used herein:

 

(a)                                  Average Price ” on any measurement date means the average daily closing selling price per Share at the close of regular hours of trading calculated for the immediately preceding ninety (90) consecutive trading days.

 

(b)                                  Award ” means an award of Restricted Stock hereby granted.

 

(c)                                   Date of Grant ” means the date on which the Company awarded the Restricted Stock to the Participant pursuant to the Plan.

 

(d)                                  Performance Measurement Period ” means the period beginning on August 7, 2016 and ending on November 14, 2019.

 



 

(e)                                   Restricted Stock ” means the shares of Restricted Stock which are the subject of the Award hereby granted.

 

(f)                                    Service Vesting Period ” means the period beginning on the Date of Grant and ending on August 6, 2016.

 

(g)                                   Shares ” mean shares of the Company’s Common Stock.

 

(h)                                  Vesting Date ” means the date on which the Participant vests in the Restricted Stock pursuant to Paragraph 4.

 

2.                                       Grant of Restricted Stock .  Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant the Restricted Stock.

 

3.                                       Restrictions on Restricted Stock .  Subject to the terms and conditions set forth herein and in the Plan, until the Participant vests in the Restricted Stock in accordance with Paragraph 4, the Participant shall not be permitted to sell, transfer, pledge, alienate, encumber or assign the Restricted Stock. Furthermore, until the Participant vests in the Restricted Stock, the Restricted Stock shall not be subject in any manner to attachment or other legal process for the debts of the Participant. The Company shall maintain possession of the certificates respecting the Restricted Stock, until the Participant vests in the Restricted Stock.

 

4.                                       Vesting .  Subject to the terms and conditions set forth herein and in the Plan, the Participant shall vest in, and the restrictions set forth in Paragraph 3 on each Share of Restricted Stock that has not been forfeited shall lapse, on the first date during the Performance Measurement Period on which the Average Price exceeds $40.21, provided, the Participant has remained continuously employed by the Company through the Service Vesting Period.  Solely for purposes of this Award Agreement, employment with the Company will be deemed to include employment with any Subsidiary of the Company (for only so long as such entity remains a Subsidiary of the Company).

 

5.                                       Forfeiture of Restricted Stock .  If at any time the Participant is no longer serving the Company as an employee for any reason during the Service Vesting Period or if the Average Price is not attained on any day during the Performance Measurement Period, the Restricted Stock shall be forfeited by the Participant and deemed canceled by the Company. The provisions of this Paragraph 5 shall not apply to Shares of Restricted Stock as to which the restrictions of Paragraph 3 have lapsed.

 

6.                                       Rights of Participant .  Until the Participant vests in the Restricted Stock, the Participant shall have the right to vote the Restricted Stock.  Any dividends paid on the Restricted Stock during such period shall accrue, but shall not be paid until the vesting of the Restricted Stock.  The accrued dividends shall be paid to the Participant at the same time that the certificates for Shares are delivered in accordance with Paragraph 9; provided, however, no accrued dividends shall be paid if the Restricted Stock is forfeited in accordance with Paragraph 5.

 

7.                                       Notices .  Any notice to the Company provided for in this instrument shall be addressed to the Committee at 1300 Morris Drive, Chesterbrook, PA 19087, and any notice to the Participant shall be addressed to such Participant at the current address shown on the payroll of the Company, or to such other address as the Participant may designate to the Company in writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

 

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8.                                       Securities Laws, etc .  The Committee may from time to time impose any conditions on the Restricted Stock as it deems necessary or advisable to ensure that the Plan and this Award satisfy the conditions of Rule 16b-3, and that Shares are issued and resold in compliance with the Securities Act of 1933, as amended.  The Company may require that the Participant represent that the Participant is holding the Shares for the Participant’s own account and not with a view to or for sale in connection with any distribution of the Shares, or such other representation as the Committee deems appropriate.

 

9.                                       Delivery of Shares .  Upon the vesting of the Restricted Stock, the Company shall notify the Participant that the restrictions on the Restricted Stock have lapsed.  Within ten (10) business days of the Vesting Date, the Company shall, without payment from the Participant for the Restricted Stock, deliver to the Participant a certificate for the Restricted Stock without any legend or restrictions, except for such restrictions as may be imposed by the Committee, in its sole judgment, under Paragraph 8, provided that no certificates for Shares will be delivered to Participant until appropriate arrangements have been made with the Company for the withholding of any taxes which may be due with respect to such Shares. The Company may condition delivery of certificates for Shares upon the prior receipt from the Participant of any undertakings which it may determine are required to ensure that the certificates are being issued in compliance with federal and state securities laws. The right to payment of any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount times the Fair Market Value of a Share on the Vesting Date determined by the Committee.

 

10.                                Special Forfeiture and Repayment Rules .

 

(a)                                  The Participant hereby acknowledges and agrees that in the event that the Participant experiences a Triggering Event (as defined in the Plan) and unless the Committee or its delegate determines otherwise, then:

 

(i)                                      any portion of the Award that remains subject to restriction as described in Paragraph 3 as of the date the Committee determines that the Participant has experienced a Triggering Event shall be immediately and automatically forfeited; and

 

(ii)                                   if the restrictions imposed on the Restricted Stock subject to the Award have lapsed within the 12-month period immediately prior to the date of the acts or omissions that gave rise to such Triggering Event or anytime thereafter, within 10 days of receiving written notice from the Company that a Triggering Event has occurred, the Participant shall deliver to the Company a number of unrestricted Shares equal to the number of Shares as to which restrictions have so lapsed during such period; provided that if, at the time delivery of the Shares by the Participant is required, the Participant cannot deliver a number of unrestricted Shares equal to the number of Shares as to which restrictions have so lapsed during such period, in addition to the delivery of the number of unrestricted Shares by the Participant at such time, the Participant shall be required to pay to the Company an amount equal to the product of the number of such Shares as to which restrictions have so lapsed during such period (less the number of Shares contemporaneously delivered by the Participant to the Company), multiplied by the Fair Market Value of one Share as of the date such restrictions lapsed.

 

(b)                                  The Committee or its delegate shall determine in its sole discretion whether a Triggering Event has occurred with respect to the Participant.

 

(c)                                   The Participant hereby acknowledges and agrees that the restrictions contained in the Plan are being made for the benefit of the Company in consideration of Participant’s

 

3



 

receipt of the Award. The Participant further acknowledges that the receipt of the Award is a voluntary action on the part of the Participant and that the Company is unwilling to provide the Award to the Participant without including the restrictions contained in the Plan.

 

(d)                                  The Participant consents to a deduction from, and set-off against, any amounts owed to the Participant by the Company or its affiliates from time to time (including, but not limited to, amounts owed to the Participant as wages, severance payments or other fringe benefits) to the extent of the amounts owed to the Company by the Participant under this agreement.

 

(e)                                   The Special Forfeiture and Repayments provisions of this Award Agreement and the Plan are in addition to, not in lieu of, any other obligation and/or restriction that the Participant may have with respect to the Company, whether by operation of law, contract, or otherwise, including, without limitation, any non-competition and non-solicitation obligations contained in an employment agreement entered into by and between the Participant and the Company or any of its affiliates.

 

11.                                Miscellaneous .

 

(a)                                  The Award granted hereunder shall not confer upon the Participant any right to continue in the employment of the Company or any subsidiary or affiliate of the Company.

 

(b)                                  The Award granted hereunder is subject to the approval of the Plan by the shareholders of the Company to the extent that such approval (i) is required pursuant to the rules and regulations of the New York Stock Exchange, or (ii) is required to satisfy the conditions of Rule 16b-3.

 

(c)                                   The Participant acknowledges that the Company has not advised the Participant regarding the Participant’s income tax liability in connection with the grant or vesting of the Restricted Stock. The Participant is not relying on any statements or representations of the Company or any of its agents in regard to such liability. 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 the transactions contemplated by this Award Agreement.

 

(d)                                  The validity, performance, construction and effect of this Award shall be governed by and determined in accordance with the law of the State of Delaware, without giving effect to conflicts of laws principles thereof.

 

(e)                                   The Participant has received a copy of the Plan, a copy of which is attached hereto, has been provided with the opportunity to read the Plan and is familiar with the terms and provisions thereof and hereby accepts this Award subject to all of the terms and provisions of this Award Agreement and the Plan, including, without limitation, the Special Forfeiture and Repayment provisions of the Plan. All decisions or interpretations of the Board or the Committee upon any questions arising under the Plan or this Award Agreement shall be binding, conclusive and final.

 

12.                                Acknowledgement .  By accepting the terms of this Agreement, the Participant acknowledges that (i) the Participant may exercise the November 2012 Option (subject to the terms and conditions of such option) for up to 100,827 Shares only and (ii) that the November 2012 Option is invalid with respect to 272,423 Shares and the Participant shall have no right to receive any Shares or other consideration with respect to such invalid portion of the November 2012 Option.

 

13.                                GRANT ACCEPTANCE YOU MUST ACCEPT THE TERMS OF THIS AGREEMENT WITHIN 60 DAYS OF RECEIPT. IF YOU DO NOT ACCEPT THE TERMS AS

 

4



 

INSTRUCTED, THIS AGREEMENT WILL AUTOMATICALLY, WITHOUT FURTHER ACTION OF THE COMPANY OR THE COMMITTEE, TERMINATE AND THE AWARD WILL BE FORFEITED AT MIDNIGHT ON THE 60 TH  DAY.

 

5



 

IN WITNESS WHEREOF , the Company has caused its duly authorized officer to execute this Award Agreement effective as of the Date of Grant.

 

 

 

AMERISOURCEBERGEN CORPORATION

 

 

 

 

 

/s/ John G. Chou

 

J ohn G. Chou

 

Executive Vice President and General Counsel

 

Accepted:

 

/s/ Steven H. Collis

 

 

Steven H. Collis

 

 

President and Chief Executive Officer

 

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