OCULAR SCIENCES INC /DE/
EXHIBIT 10.3
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<TYPE>EX-10.3
<SEQUENCE>3
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<DESCRIPTION>EXHIBIT 10.3
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<P align="right"><FONT size="2"><B>Exhibit&nbsp;10.3</B>
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<P align="left"><FONT size="2"><B>May&nbsp;19, 2003</B>
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<P align="left"><FONT size="2">Mr.&nbsp;Steve Neil
</FONT>

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    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2"><B><I>Ref: Employment Offer</I></B></FONT></TD>
</TR>
</TABLE>

<P align="left"><FONT size="2">Dear Steve:
</FONT>

<P align="left"><FONT size="2">Following our recent meetings both John and I know you can add real value to
Ocular Sciences, Inc. Your experience in the industry will allow you to
contribute quickly to the overall execution of our strategies and tactics.
This letter contains our responses to your requested changes in our original
offer.
</FONT>

<P align="left"><FONT size="2">On behalf of Ocular Sciences, Inc. (the &#147;Company&#148;), I am pleased to offer you
the position of Executive Vice President and Chief Financial Officer reporting
to me as the President and CEO of Ocular Sciences, Inc.
</FONT>

<P align="left"><FONT size="2">The terms of your new position with the Company are as set forth below:
</FONT>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">1.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Compensation.</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>


<P>
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    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">a.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="90%"><FONT size="2">Base Salary. You will be paid an annual
salary of $325,000.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">b.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Management Incentive Compensation Plan.
Our bonus plan is referred to as the MICP or Management
Incentive Compensation Plan. The plan consists of a
Corporate Portion (75%) and an Individual Portion (25%)
based on PMO&#146;s (Personal Management Objectives). We will
guarantee a bonus payment of $56,875 (gross)&nbsp;that will be
paid following the February 2004 Board meeting. This
represents one-half of the annual target bonus of 35% of
your base salary. Bonus target percentages and amounts,
performance targets and overall plan design for the
upcoming year will be developed during Q 4 of this year.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">c.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Annual Review. Your base salary will be
reviewed annually as part of the Company&#146;s annual
performance and salary review process.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">d.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">New Hire Bonus. Within 10&nbsp;days following
your actual start date the Company will pay you a New Hire
Bonus of $150,000 with an additional payment of $65,000 to
cover a major portion of the increased tax. Should you
voluntarily resign or terminate your employment within 24
months of your employment date you will be required to
repay this amount within 90&nbsp;days of your termination date.</FONT></TD>
</TR>
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<P align="right"><FONT size="2">1</FONT>

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<P>
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<TR valign="top">
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="90%"><FONT size="2">Should you voluntarily resign for &#147;Good Reason&#148; you will not be
required to repay the $215,000. For purposes of this letter
agreement, &#147;Good Reason&#148; shall mean (1)&nbsp;a material diminution of
your duties or authority with the Company, or the assignment of
duties and responsibilities inconsistent with your status at the
Company, as of the date of the Change of Control, any of which
are made without your express written consent: 2) a reduction in
base salary or material reduction in benefits as of the date of
the Change of Control without your express written consent: (3)
any breach of the Company of any material obligation of the
Company under this agreement or any employment agreement with
you or (4)&nbsp;a reassignment which requires you to move your
principle work location more than 50 miles from the Company&#146;s
principle office maintained at the time this letter agreement
was executed.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">e.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The Company will provide a mileage reimbursement to begin 12
months from your date of employment for business miles driven.</FONT></TD>
</TR>
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>


<P>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">2.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Stock Options. Your initial stock option grant will be for
100,000 shares of the Company&#146;s common stock at an option price
equal to the price of OSI stock at closing on your first day of
employment. These options will vest at the rate of 25% per year
based on your employment date and will be fully vested at the
completion of 4&nbsp;years of employment.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">You will receive consideration for additional grants on an annual
basis. There is a range of shares available and there are
guidelines that utilize the Black Shoals valuation of our shares to
determine the number of shares available for annual grants.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">In the event of a change of control there is a &#147;double trigger&#148;
executive severance and stock option acceleration benefit. This
means that the change of control must occur and you must be
involuntarily terminated or you voluntarily terminate for &#147;Good
Reason&#148; for the acceleration and severance to be triggered. The
severance is 12&nbsp;months base and bonus and there is no time
restriction or &#147;sunset&#148; on this benefit.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">3.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Benefits. The Company provides a comprehensive offering of
employee benefits. These include medical and dental coverage (PPO
or HMO), short term and long disability insurance, company paid
life insurance, a 401K plan with a company match of 50% on the
first 6% of contributions and paid time off and holidays.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">The Company will provide you with 20&nbsp;days of PTO each year for
years 1 through 5, 25&nbsp;days of PTO after the fifth year of
employment.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">You will satisfy the 1000 hour rule for vesting in the Company
sponsored 401 k plan providing we use a start date of July 1st,
2003.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">4.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Demonstration of Best Efforts</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">You agree to the best of your ability and experience that you
will at all times loyally and conscientiously perform all of the
duties and obligations required of and from you pursuant to the
express and implicit terms hereof, and to the reasonable
satisfaction of the Company. During the term of your
employment, you further agree that you will</FONT></TD>
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<P align="right"><FONT size="2">2</FONT>

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<P>
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<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">devote all of your business time and attention to the business
of the Company. The Company will be entitled to all of the
benefits and profits arising from or incident to all such work
services and advice, you will not render commercial or
professional services of any nature to any person or
organization, whether or not for compensation, without the prior
written consent of the CEO and you will not directly or
indirectly engage or participate in any business that is
competitive in any manner with the business of the Company.
Nothing in this offer letter agreement will prevent you from
accepting speaking or presentation engagements in exchange for
honoraria or from serving on boards of charitable organizations.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">5.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Start Date. Subject to fulfillment of any conditions imposed by
this offer letter agreement, you will commence this new position
with the Company on July 1 2003.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">6.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Confidentiality Agreement. Your acceptance of this offer and
commencement of employment with the Company is contingent upon the
execution, and delivery to the Company the Company&#146;s <B><I>Employee
Proprietary Information and Inventions Agreement </I></B>prior to, or on your
start date.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">7.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Confidentiality of Terms. You agree to follow the Company&#146;s strict
policy that employees must not disclose, either directly or
indirectly, any information, including any of the terms of this
agreement, regarding salary, bonuses, or stock purchase or option
allocations to any person; provided, however, that you may discuss
such terms with members of your immediate family and any legal, tax or
accounting specialists who provide you with individual legal, tax or
accounting advice.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">8.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">Referencing. Your acceptance of this offer and commencement of
employment with the Company is contingent upon receipt of appropriate
reference checks.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">9.</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">At-Will Employment. Your employment with the Company will be on an
&#147;at will&#148; basis, meaning that either you or the Company may terminate
your employment at any time for any reason or no reason, without
further obligation or liability.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">To indicate you acceptance of the Company&#146;s offer, please sign and
date this letter in the space provided below and return it to me.
This letter, together with the Company&#146;s Employee Proprietary
Information and Inventions Agreement sets forth the terms of your
employment with the Company&#146;s and supercedes any prior representation
or agreements either written or oral. This letter may not be modified
or amended except by written agreement signed by the Company and you.</FONT></TD>
</TR>
<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="93%"><FONT size="2">I look forward to working with you in the near future.</FONT></TD>
</TR>
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<P>
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    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2">Yours sincerely,</FONT></TD>
</TR>
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    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2"><U>/s/ Stephen Fanning</U><BR>
Stephen Fanning<BR>
President and Chief Executive Officer<BR>
Ocular Sciences, Inc.</FONT></TD>
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<P align="left"><FONT size="2">ACCEPTED AND AGREED:<BR>
Steve Neil
</FONT>
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    <TD valign="top"><FONT size="2">/s/ Steve Neil</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
June&nbsp;1, 2003</FONT></TD>
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    <TD align="left" valign="top"><FONT size="2">
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    <TD valign="top"><FONT size="2">Signature</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Date</FONT></TD>
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<P align="right"><FONT size="2">3</FONT>



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