<PAGE>
As filed with the Securities and Exchange Commission on May 22, 2000.
Registration No. 333-___.
_______________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
ACUSON CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 94-2784998
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1220 Charleston Road, Mountain View, CA 94043
(Address of Principal Executive Offices) (Zip Code)
Acuson Corporation 1995 Employee Stock Incentive Plan
(Full title of the plan)
Charles H. Dearborn
Senior Vice President, General Counsel and Secretary
Acuson Corporation
1220 Charleston Road, Mountain View, CA 94043
(Name and address of agent for service)
415-969-9112
(Telephone number, including area code,
of agent for service)
_____________________________
Calculation of Registration Fee
<TABLE>
<CAPTION>
Proposed Proposed
Title of Number of Maximum Maximum
Securities to be to be shares Offering rice Aggregate Amount of
Registered Registered Per Share Offering Price Registration Fee
<S> <C> <C> <C> <C>
Common Stock 3,000,000 $*12.00 $36,000,000.00 $**9,504.00
</TABLE>
_______________________________________
* Estimate based on the average of the high and low sales prices of Acuson
Common Stock on May 18, 2000, on the New York Stock Exchange.
** Calculated pursuant to paragraphs (c) and (h)(1) of Rule 457.
<PAGE>
PART II
This Registration Statement is being filed to increase the number of shares
available under the Registrant's 1995 Stock Incentive Plan, as amended (the
"Plan"). The contents of the Registration Statement on Form S-8 (File No. 33-
59707) relating to the Plan are incorporated herein by reference.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
Charles H. Dearborn, who has rendered an opinion as to the validity of the
shares offered hereby, is General Counsel to the Company. As of May 10, 2000,
Mr. Dearborn owned 3,087 shares, and had options to purchase 290,851 shares, of
the Company's common stock.
ITEM 8. EXHIBITS.
Exh. No. Description
-------- -----------
(4) (a) Restated Certificate of Incorporation. Filed as Exhibit 3.8 to
the Company's Registration Statement on Form S-1 (File No. 33-
7838) and incorporated herein by reference.
(b) Bylaws. Filed as Exhibit 3.2 to the Company's Form 10-K for the
year ended December 31, 1998 and incorporated herein by
reference.
(c) Acuson Corporation 1995 Stock Incentive Plan, as amended.
(5) Opinion of Charles H. Dearborn, General Counsel.
(23) (a) Consent of Arthur Andersen LLP, independent public accountants.
(b) Consent of Charles H. Dearborn (included in Exhibit 5).
(24) Manually executed Powers of Attorney (located on signature pages
hereof).
II-1
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Mountain View, State of California on May 15, 2000.
ACUSON CORPORATION
By: /s/ Samuel H. Maslak
--------------------
Samuel H. Maslak
Chairman of the Board and
Chief Executive Officer
POWER OF ATTORNEY AND ADDITIONAL SIGNATURES
KNOW ALL PERSONS BY THESE PRESENTS, that each of the undersigned persons
hereby constitutes and appoints Charles H. Dearborn and Robert J. Gallagher, and
each of them, whether acting individually or jointly, his true and lawful
attorneys-in-fact and agents, with full power of substitution and
resubstitution, for such person and in his name, place and stead, in any and all
capacities, to sign any and all amendments to this Registration Statement
(including post-effective amendments) and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and
Exchange Commission, granting unto said attorneys-in-fact and agents full power
and authority to do and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully as to all intents and
purposes he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents, or their substitutes, may lawfully do
and cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
Signature Title Date
--------- ----- ----
/s/ Samuel H. Maslak Chairman of the Board and Chief May 15, 2000
- -------------------------
Samuel H. Maslak Executive Officer
/s/ Barry Zwarenstein Senior Vice President, Chief May 17, 2000
- -------------------------
Barry Zwarenstein Financial Officer and Treasurer
(principal financial officer)
/s/ L. Thomas Morse Vice President & Corporate May 15, 2000
- -------------------------
L. Thomas Morse Controller (chief accounting
officer)
/s/ Albert L. Greene Director May 17, 2000
- ------------------------
Albert L. Greene
Director
- ------------------------
Karl H. Johannsmeier
/s/ William J. Mercer Director May 17, 2000
- ------------------------
William J. Mercer
II-2
<PAGE>
EXHIBIT 4C
----------
ACUSON CORPORATION
1995 STOCK INCENTIVE PLAN
Adopted by the Board of Directors on March 1, 1995
Approved by stockholders on May 31, 1995
Amended by the Board of Directors on February 29, 1996
Amendment approved by stockholders on July 23, 1996
Amended by the Board of Directors on February 19, 1999
Amended by the Board of Directors on March 9, 2000
1. Establishment, Purpose, and Definitions.
----------------------------------------
(a) Acuson Corporation (the "Company") hereby adopts the Acuson
Corporation 1995 Stock Incentive Plan (the "Plan").
(b) The purpose of the Plan is to allow the Company to provide
incentives to Eligible Individuals (as defined in Section 4, below) for
employment, increased efforts and successful achievements on behalf of or
in the interests of the Company and its Affiliates and to maximize the
rewards due them for those efforts and achievements. In the case of
Employees (including officers and directors who are Employees) of the
Company and of its Affiliates such incentives include (i) an opportunity to
purchase shares of common stock, par value $.0001 per share, of the Company
("Stock") pursuant to options which may qualify as incentive stock options
(referred to as "incentive stock options") under Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"), (ii) an opportunity
to purchase shares of Stock pursuant to options which are not described in
Sections 422 or 423 of the Code (referred to as "nonqualified stock
options"), (iii) the sale or bonus of restricted Stock ("Restricted
Stock"), and (iv) the grant of stock appreciation rights ("SARs"), either
separately or in relation ("tandem") with stock options, entitling holders
to compensation measured by appreciation in the value of Stock. The Plan
also provides for the grant of similar incentives (other than incentive
stock options) to independent contractors and consultants to the Company
and its Affiliates. Finally, the Plan provides for the automatic,
nondiscretionary grant of nonqualified stock options to directors of the
Company who are not Employees of the Company or any Affiliate ("Non-
Employee Directors").
(c) Except for purposes of Section 12, the term "Affiliate" means
parent or subsidiary corporations of the Company, as defined in Sections
424(e) and (f) of the Code (but substituting "the Company" for "employer
corporation"), including parents or subsidiaries of the Company that become
such after adoption of the Plan.
1
<PAGE>
(d) The term "Employee" means any person, including officers and
directors, who is an employee of the Company or an Affiliate for purposes
of income tax withholding under the Code. Neither service as a director nor
payment of a director's fee by the Company shall be sufficient to
constitute a person an Employee.
2. Administration of the Plan.
--------------------------
(a) The Plan may be administered by different committees with respect
to: (i) Non-Employee Directors; (ii) Eligible Individuals who are (A)
officers or directors subject to Section 16(b) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), or (B) "covered employees"
within the meaning of Section 162(m)(3) of the Code ("Covered Employees");
and (iii) Eligible Individuals who are neither officers or directors
subject to Section 16(b) of the Exchange Act nor Covered Employees. Each
committee, in addition to satisfying any specific requirements imposed by
this Section 2, shall also satisfy any legal requirements relating to the
administration of stock-based compensation plans under applicable state
corporate and securities laws and the Code ("Applicable Laws"). References
herein to the "Plan Administrator" shall refer to the applicable
committee(s) or, if the Board of Directors of the Company (the "Board")
does not delegate administration of some aspects of the Plan to a
committee, shall be construed to refer to the Board.
(b) With respect to awards made to Eligible Individuals who are
officers or directors subject to Section 16(b) of the Exchange Act or
Covered Employees, the Plan shall be administered by a committee of the
Board, which committee shall be constituted (i) in such manner as to permit
such grants and related transactions under the Plan to be exempt from
Section 16(b) of the Exchange Act in accordance with Rule 16b-3 (or any
successor thereto) promulgated under the Exchange Act ("Rule 16b-3") and as
a (ii) "committee comprised solely of two or more outside directors" for
purposes of Section 162(m) of the Code. Once appointed, such committee
shall continue to serve in its designated capacity until otherwise directed
by the Board. From time to time, the Board may increase the size of the
committee and appoint additional members, remove members (with or without
cause) and substitute new members, fill vacancies (however caused), all to
the extent permitted by Rule 16b-3, Section 162(m) of the Code, the rules
and regulations with respect to each, and Applicable Laws. The committee
shall select one of its members as chair of the committee and shall hold
meetings at such times and places as it may determine. To the extent
permitted by Rule 16b-3, Section 162(m) of the Code, the rules and
regulations with respect to each, and Applicable Laws, a majority of the
committee shall constitute a quorum, and acts of the committee at which a
quorum is present, or acts
2
<PAGE>
reduced to or approved in writing by all the members of the committee,
shall be the valid acts of the committee.
(c) With respect to awards made to Eligible Individuals who are
neither officers nor directors subject to Section 16(b) of the Exchange Act
nor Covered Employees, the Plan shall be administered by (i) the Board; or
(ii) a committee of one or more persons (which may be the committee
established pursuant to Section 2(b), above) designated by the Board. Once
appointed, such committee shall continue to serve in its designated
capacity until otherwise directed by the Board. From time to time, the
Board may increase the size of the committee and appoint additional
members, remove members (with or without cause) and substitute new members,
fill vacancies (however caused), and remove all members of the committee
and thereafter directly administer the Plan, all to the extent permitted by
Applicable Laws. The committee shall select one of its members as chair of
the committee and shall hold meetings at such times and places as it may
determine. To the extent permitted by Applicable Laws, a majority of the
committee shall constitute a quorum, and acts of the committee at which a
quorum is present, or acts reduced to or approved in writing by all the
members of the committee, shall be the valid acts of the committee.
(d) The Plan Administrator shall determine which Eligible Individuals
shall be granted options under the Plan, the timing of such grants, the
terms thereof (including any restrictions on the Stock), and the number of
shares subject to such options.
(e) The Plan Administrator shall also determine which Eligible
Individuals shall be granted or issued SARs or Restricted Stock (other than
pursuant to the exercise of options) under the Plan, the timing of such
grants or issuances, the terms thereof (including any restrictions and the
consideration, if any, to be paid therefor) and the number of shares or
SARs to be granted.
(f) Subject to Section 2(h) of this Plan, the Plan Administrator may
amend the terms of any outstanding option or SAR granted under this Plan,
but any amendment that would adversely affect the holder's rights under an
outstanding option or SAR shall not be made without the holder's written
consent. The Plan Administrator may, with the holder's written consent,
cancel any outstanding option or SAR or accept any outstanding option or
SAR in exchange for a new option or SAR. The Plan Administrator also may
amend any Restricted Stock purchase agreement or Restricted Stock bonus
agreement relating to sales or bonuses of Restricted Stock under the Plan,
but any amendment that would adversely affect the individual's rights to
the Restricted Stock shall not be made without his or her written consent.
3
<PAGE>
(g) The Plan Administrator shall have the sole authority, in its
absolute discretion, to adopt, amend, and rescind such rules and
regulations as, in its opinion, may be advisable for the administration of
the Plan, to construe and interpret the Plan, the rules and the
regulations, and the instruments evidencing options, SARs or Restricted
Stock granted or issued under the Plan and to make all other determinations
deemed necessary or advisable for the administration of the Plan. All
decisions, determinations, and interpretations of the Plan Administrator
shall be binding on all participants.
(h) Notwithstanding any other provision of this Plan, options granted
under this Plan may not be repriced unless such repricing is approved by
the vote of the holders of a majority of the shares of the Common Stock of
the Company present in person or represented by proxy and entitled to vote
at a meeting of stockholders.
3. Stock Subject to the Plan.
-------------------------
(a) The maximum aggregate number of shares of Stock available for
issuance under the Plan and during the life of the Plan shall equal
6,500,000 shares, subject to adjustment from time to time in accordance
with this Section 3. The Stock subject to the Plan may be unissued shares,
treasury shares or shares purchased by the Company on the open market or
otherwise.
(b) For purposes of the limitation specified in Section 3(a), the
following principles shall apply:
(1) the following transactions, if granted pursuant to this
Plan, shall count against and decrease the number of shares of Stock that
may be issued for purposes of Section 3(a): (i) shares of Stock subject to
outstanding options, outstanding shares of Restricted Stock, and shares
subject to SARs granted independently of options (based upon a good faith
estimate by the Company or the Plan Administrator of the maximum number of
shares for which the SAR may be settled (assuming payment in full in shares
of Stock), and (ii) in the case of options granted in tandem with SARs, the
greater of the number of shares of Stock that would be counted if one or
the other alone was outstanding (determined as described in clause (i)
above);
(2) the following shall be added back to the number of shares of
Stock that may be issued for purposes of Section 3(a): (i) shares of Stock
with respect to which options, SARs granted independent of options, or
Restricted Stock awards expire, are cancelled, or otherwise terminate
without being exercised, converted,
4
<PAGE>
or vested, as applicable, and (ii) in the case of options granted in tandem
with SARs, shares of Stock as to which an option has been surrendered in
connection with the exercise of a tandem SAR, to the extent the number
surrendered exceeds the number issued upon exercise of the SAR; provided
--------
that, in any case, the holder of such awards did not receive any dividends
----
or other benefits of ownership with respect to the underlying shares being
added back, other than voting rights and the accumulation (but not payment)
of dividends of Stock;
(3) shares of Stock subject to SARs granted independently of
options (calculated as provided in clause (1) above) that are exercised and
paid in cash shall be added back to the number of shares of Stock that may
be issued for purposes of Section 3(a), provided that the holder of such
SAR did not receive any dividends or other benefits of ownership, other
than voting rights and the accumulation (but not payment) of dividends,
relative to the shares of Stock subject to the SARs;
(4) shares of Stock that are transferred by a holder of an award
(or withheld by the Company) as full or partial payment to the Company of
the purchase price of shares of Stock subject to an option or the Company's
or any Affiliate's tax withholding obligations shall not be added back to
the number of shares of Stock that may be issued for purposes of Section
3(a) and shall not again be subject to awards; and
(5) if the number of shares of Stock counted against the number
of shares that may be issued for purposes of Section 3(a) is based upon an
estimate made by the Company or the Plan Administrator as provided in
clause (1) above and the actual number of shares of Stock issued pursuant
to the applicable award is greater or less than the estimated number, then
upon such issuance, the number of shares of Stock that may be issued
pursuant to Section 3(a) shall be further reduced by the excess issuance or
increased by the shortfall, as applicable.
(c) If there is any change in the Stock through merger,
consolidation, reorganization, recapitalization, reincorporation, stock
split, stock dividend (in excess of 2%), or other change in the capital
structure of the Company, appropriate adjustments shall be made by the Plan
Administrator, in order to preserve but not to increase the benefits to the
outstanding options, SARs and Restricted Stock purchase or Restricted Stock
bonus awards under the Plan, including adjustments to the aggregate number
and kind of shares subject to the Plan, or to outstanding Restricted Stock
purchase or Restricted Stock bonus agreements, or SAR agreements, and the
number and kind of shares and the price per share subject to outstanding
options.
5
<PAGE>
(d) The Plan Administrator shall have the discretion, to the extent
permitted by Applicable Law, to include provisions in any agreements
evidencing awards granted under the Plan providing that, in the event of a
dissolution, liquidation, merger or consolidation of the Company, or any
other event that the Plan Administrator deems to have effected a change in
control of the Company, any such awards shall accelerate and become fully
vested, and all forfeiture and/or transfer restrictions with respect
thereto shall lapse, regardless of whether such awards are otherwise to be
assumed or replaced in connection with such event.
4. Eligible Individuals. Individuals who shall be eligible to have the Plan
--------------------
Administrator grant to them options, SARs or Restricted Stock under the Plan
("Eligible Individuals") shall be such employees, officers (including officers
who are directors of the Company), independent contractors, and consultants of
the Company or an Affiliate as the Plan Administrator, in its discretion, shall
designate from time to time. Notwithstanding the foregoing, only Employees
shall be eligible to receive incentive stock options. Eligible Individuals
shall not include Non-Employee Directors. Non-Employee Directors shall receive
automatic and nondiscretionary option grants pursuant to Section 5 and will not
be otherwise eligible to receive any other option grants or awards of SARs or
Restricted Stock under the Plan or any other stock plan of the Company or any
Affiliate.
5. Automatic Option Grants to Non-Employee Directors.
-------------------------------------------------
(a) All grants of options pursuant to this Section 5 shall be
automatic and nondiscretionary and shall be made strictly in accordance
with the provisions of this Section 5. No person shall have any discretion
to determine which Non-Employee Directors shall be granted options, the
number of shares of Stock to be covered by options granted to Non-Employee
Directors, the timing of such option grants or the exercise price thereof.
(b) An option to purchase 7,500 shares of Stock shall be granted to
each Non-Employee Director continuing in office immediately following each
annual meeting of the Company's stockholders which occurs on or after the
date of approval of the Plan by the stockholders of the Company and prior
to the termination of the Plan.
(c) The term of each option granted pursuant to this Section 5 shall
be ten years from the date of grant, unless a shorter period is required to
comply with any Applicable Law, and except for the early termination
provisions contained in the written stock option agreement in the form of
Exhibit A hereto, in either of which cases such shorter period shall apply.
6
<PAGE>
(d) Each option granted pursuant to this Section 5 shall vest and
become fully exercisable as to fifty percent (50%) of the shares subject to
the option on the date which is six (6) months from the date the option is
granted, then daily thereafter as to 1/365th of the total shares subject to
the option so that the option is fully exercisable no later than one year
following the date the option is granted.
(e) Each option grant to an Non-Employee Director pursuant to this
Section 5 shall be evidenced by a written stock option agreement, in the
form of Exhibit A hereto, executed by the Company and the Non-Employee
Director to whom such option is automatically granted.
6. Terms and Conditions of Options.
-------------------------------
(a) Each option granted pursuant to the Plan will be evidenced by a
written stock option agreement executed by the Company and the person to
whom such option is granted.
(b) Except for options granted under Section 5 above, the Plan
Administrator shall determine the term of each option granted under the
Plan; provided, however, that the term of an incentive stock option shall
not be for more than ten years and that, in the case of an incentive stock
option granted to a person possessing more than 10% of the combined voting
power of the Company or an Affiliate on the date the option is granted, the
term of each incentive stock option shall be no more than five years.
(c) In the case of incentive stock options, the aggregate fair market
value (determined as of the time such option is granted) of the Stock with
respect to which incentive stock options are exercisable for the first time
by an Eligible Individual in any calendar year (under this Plan and any
other plans of the Company or its Affiliates) shall not exceed $100,000. If
the aggregate fair market value of the Stock with respect to which
incentive stock options are exercisable by an optionee for the first time
in any calendar year exceeds $100,000, such options shall be treated, to
the minimum extent required to preserve incentive stock option treatment
for as many options as possible, as nonqualified stock options. The rule
set forth in the preceding sentence shall be applied by taking options into
account in the order in which they were granted.
(d) The exercise price of each incentive stock option shall be not
less than the per share fair market value of the Stock subject to such
option on the date the option is granted. The exercise price of each
nonqualified stock option shall be as determined by the Plan Administrator.
Notwithstanding the foregoing, (i) in the case of an incentive stock option
granted to a person possessing more than 10% of the combined voting power
of the Company or an Affiliate on the date the
7
<PAGE>
option is granted, the exercise price shall be not less than 110% of the
fair market value of the Stock on the date the option is granted, and (ii)
in the case of an option granted pursuant to Section 5 above, the exercise
price shall be not less than the per share fair market value of the Stock
subject to such option on the date the option is granted. The exercise
price of an option shall be subject to adjustment to the extent provided in
Section 3(c), above.
(e) The stock option agreement may contain such other terms,
provisions, and conditions consistent with this Plan as may be determined
by the Plan Administrator. If an option, or any part thereof, is intended
to qualify as an incentive stock option, the stock option agreement shall
contain those terms and conditions which are necessary to so qualify it.
(f) The maximum number of shares of Stock with respect to which SARs
or options to acquire Stock may be granted to any individual during any
calendar year shall not exceed 1,000,000 shares (which number may be
increased without stockholder approval to reflect adjustments under Section
3(c), above, to the extent such increase does not cause the grant to fail
to qualify as remuneration payable solely on account of one or more
performance goals within the meaning of Section 162(m) of the Code). To the
extent required by Section 162(m) of the Code or the regulations
thereunder, in applying the foregoing limitation with respect to any
employee, if any option is cancelled, the cancelled option shall continue
to count against the maximum number of shares for which options may be
granted to the employee under this Section 6(f). For this purpose, the
repricing of an option shall be treated as a cancellation of the existing
option and the grant of a new option to the extent required by Section
162(m) of the Code or the regulations thereunder.
7. Payment Upon Exercise of Options.
--------------------------------
(a) Payment of the purchase price upon exercise of any option granted
under this Plan shall be made in cash, by optionee's personal check, a
certified check, bank draft, or postal or express money order payable to
the order of the Company in lawful money of the United States
(collectively, "Cash Consideration"); provided, however, that, except for
options granted under Section 5 above, the Plan Administrator, in its sole
discretion, may permit an optionee to pay the option price in whole or in
part (i) with shares of Stock owned by the optionee or with shares of Stock
withheld from the shares otherwise deliverable to the optionee upon
exercise of an option; (ii) by delivery on a form prescribed by the Company
of an irrevocable direction to a securities broker approved by the Company
to sell shares of Stock and deliver all or a portion of the proceeds to the
Company in payment for the Stock; (iii) by delivery of the optionee's
promissory note with such recourse, interest, security, and
8
<PAGE>
redemption provisions as the Plan Administrator in its discretion
determines appropriate; or (iv) in any combination of the foregoing. The
exercise price of any options granted under Section 5 above, shall be paid
in Cash Consideration, the consideration specified in clauses (i) or (ii)
of the preceding sentence or in any combination thereof. Any Stock used to
exercise options shall be valued at its fair market value on the date of
the exercise of the option. In addition, the Plan Administrator, in its
sole discretion, may authorize the surrender by an optionee of all or part
of an unexercised option (excluding options granted under Section 5 above)
and authorize a payment in consideration thereof of an amount equal to the
difference between the aggregate fair market value of the Stock subject to
such option and the aggregate option price of such Stock. In the Plan
Administrator's discretion, such payment may be made in cash, shares of
Stock with a fair market value on the date of surrender equal to the
payment amount, or some combination thereof.
(b) In the event that the exercise price is satisfied by shares
withheld from the shares of Stock otherwise deliverable to the optionee,
the Plan Administrator may issue the optionee an additional option, with
terms identical to the option agreement under which the option was
exercised, entitling the optionee to purchase additional shares of Stock
equal to the number of shares so withheld but at an exercise price equal to
the fair market value of the Stock on the grant date of the new option;
provided, however, that no Such additional options may be granted with
respect to options granted pursuant to Section 5, above.
8. Terms and Conditions of Restricted Stock Purchases and Bonuses.
--------------------------------------------------------------
(a) Each sale (other than upon exercise of options) or bonus grant of
Restricted Stock pursuant to the Plan will be evidenced by a written
Restricted Stock purchase or Restricted Stock bonus agreement, as
applicable, executed by the Company and the person to whom such Restricted
Stock is sold or granted.
(b) The Restricted Stock purchase agreement or Restricted Stock bonus
agreement may contain such terms, provisions, and conditions consistent
with this Plan as may be determined by the Plan Administrator, including
not by way of limitation, payment terms, restrictions on transfer,
forfeiture provisions, repurchase provisions, and vesting provisions.
(c) The Plan Administrator may condition the award or the exercise of
any right under an award under this Section 8 upon the attainment of one or
more preestablished objective performance goals meeting the requirements of
Section 162(m) of the Code and the regulations thereunder.
9
<PAGE>
9. Terms and Conditions of SARs. The Plan Administrator may, under such terms
----------------------------
and conditions as it deems appropriate, authorize the issuance of SARs evidenced
by a written SAR agreement (which, in the case of tandem options, may be part of
the option agreement to which the SAR relates) executed by the Company and the
person to whom the SARs are granted. The SAR agreement shall specify the term
for the SARs covered thereby and contain such other terms, provisions and
conditions consistent with this Plan as may be determined by the Plan
Administrator.
10. Withholding Taxes.
-----------------
(a) No Stock shall be granted or sold under the Plan to any Eligible
Individual, and no SAR may be exercised, until the individual has made
arrangements acceptable to the Plan Administrator for the satisfaction of
federal, state, and local income and employment tax withholding
obligations, including without limitation obligations incident to the
receipt of Stock under the Plan, the lapsing of restrictions applicable to
such Stock, the failure to satisfy the conditions for treatment as
incentive stock options under applicable tax law, or the receipt of cash
payments. Upon the exercise of an option or the lapsing of a restriction on
Stock issued under the Plan, the Company (or the optionee's or
stockholder's employer) may withhold from the shares otherwise deliverable
to the optionee upon such exercise, or require the stockholder to surrender
shares of Stock as to which the restriction has lapsed, such number of
shares having a fair market value sufficient to satisfy federal, state and
local income and employment tax withholding obligations.
(b) In the event that such tax withholding is satisfied by the
Company or the optionee's employer withholding shares of Stock otherwise
deliverable to the optionee, the Plan Administrator may issue the optionee
an additional option, with terms identical to the option agreement under
which the option was exercised, entitling the optionee to purchase
additional shares of Stock equal to the number of shares so withheld but at
an exercise price equal to the fair market value of the Stock on the grant
date of the new option; provided, however, that no such additional options
may be granted with respect to options granted pursuant to Section 5,
above.
10
<PAGE>
11. Assignability. Incentive stock options may not be sold, pledged, assigned,
-------------
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the optionee, only by the optionee. Nonqualified stock options and SARs shall
be transferable to the extent provided in the stock option or SAR agreement or
as determined by the Plan Administrator. Stock subject to a Restricted Stock
purchase agreement or a Restricted Stock bonus agreement shall be transferable
only as provided in such agreement.
12. Change in Control.
-----------------
(a) Notwithstanding anything to the contrary contained in the Plan,
each stock option, SAR, Restricted Stock bonus or Restricted Stock purchase
agreement (or an amendment thereto) evidencing an option, SAR, Restricted
Stock bonus or Restricted Stock purchase hereunder shall automatically and
without further action be fully vested, nonforfeitable and become
exercisable, and any Restricted Stock covered by such an agreement shall be
released from restrictions on transfer and repurchase or forfeiture rights,
on the twenty-second day after any Share Acquisition Date, unless prior to
such twenty-second day a majority of the Continuing Directors then in
office has determined that the transaction pursuant to which a Person has
become an Acquiring Person is an Approved Transaction.
(b) Certain Definitions. For purposes of this Section 12, the
-------------------
following definitions shall apply:
"Acquiring Person" means any Person who or which, together with all
----------------
Affiliates and Associates of such Person, shall be the Beneficial Owner of 20%
or more of the Common Shares then outstanding, but shall not include the
Company, any Subsidiary of the Company or any employee benefit plan of the
Company or any Subsidiary of the Company, or any entity holding Common Shares
for or pursuant to the terms of any such plan. Notwithstanding the foregoing,
no Person shall become an "Acquiring Person" as the result of an acquisition of
Common Shares by the Company which, by reducing the number of shares
outstanding, increases the proportionate number of shares beneficially owned by
such Person to 20% or more of the Common Shares of the Company then outstanding;
provided, however, that if a Person becomes the Beneficial Owner of 20% or more
- -------- -------
of the Common Shares of the Company then outstanding by reason of share
purchases by the Company and shall, after such share purchases by the Company,
becomes the Beneficial Owner of any additional Common Shares of the Company,
then such Person shall be deemed to be an "Acquiring Person".
"Affiliate" and "Associate" have the respective meanings ascribed to such
--------- ---------
terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act.
11
<PAGE>
"Approved Transaction" means any transaction that occurs at a time when
--------------------
Continuing Directors are in office and a majority of the Continuing Directors
then in office has determined that the transaction is in the best interest of
the Company and its stockholders.
A Person shall be deemed the "Beneficial Owner" of and shall be deemed to
----------------
"beneficially own" any securities: (i) which such Person or any of such Person's
Affiliates or Associates beneficially owns, directly or indirectly; (ii) which
such Person or any of such Person's Affiliates or Associates has (A) the right
to acquire (whether such right is exercisable immediately or only after the
passage of time) pursuant to any agreement, arrangement or understanding, or
upon the exercise of conversion rights, exchange rights, rights (other than the
Rights), warrants or options, or otherwise; provided, however, that a Person
-------- -------
shall not be deemed the Beneficial Owner of, or to beneficially own, securities
tendered pursuant to a tender or exchange offer made by or on behalf of such
Person or any of such Person's Affiliates or Associates until such tendered
securities are accepted for purchase or exchange; or (B) the right to vote
pursuant to any agreement, arrangement or understanding; provided, however, that
-------- -------
a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
any security if the agreement, arrangement or understanding to vote such
security (1) arises solely from a revocable proxy or consent given to such
person in response to a public proxy or consent solicitation made pursuant to,
and in accordance with, the applicable rules and regulations of the Exchange Act
and (2) is not also then reportable on Schedule 13D under the Exchange Act (or
any comparable or successor report); or (iii) which are beneficially owned,
directly or indirectly, by any other Person with which such Person or any of
such Person's Affiliates or Associates has any agreement, arrangement or
understanding for the purpose of acquiring, holding, voting (except to the
extent contemplated by the proviso to clause (ii)(B) of this definition) or
disposing of any securities of the Company; provided further, however, that
nothing in this Section 12 shall cause a Person to be the Beneficial Owner of,
or to beneficially own, any securities (x) acquired through such Person's
participation in the business of underwriting securities in good faith in a firm
commitment underwriting until the expiration of forty days after the date of
such acquisition or (y) which such Person has reported on Schedule 13G under the
Exchange Act and has not ceased to be eligible to report on Schedule 13G
pursuant to Rule 13d-1 under the Exchange Act.
"Common Shares" means the shares of common stock, par value $.0001 per
-------------
share, of the Company.
"Continuing Director" means (i) any member of the Board of Directors of the
-------------------
Company, while such Person is a member of the Board, who is not an Acquiring
Person, or an Affiliate or Associate of an Acquiring Person, or a representative
of an Acquiring Person or of any such Affiliate or Associate, and who was, if
applicable, a member of the Board prior to the time that any Person becomes an
Acquiring Person, or (ii) any Person who subsequently becomes a member of the
Board, while such Person is a member of the Board, who is not
12
<PAGE>
an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, or a
representative of an Acquiring Person or of any such Affiliate or Associate, if
such Person's nomination for election or election to the Board is recommended or
approved by a majority of Continuing Directors.
"Exchange Act" means the Securities Exchange Act of 1934, as amended, and
------------
the rules and regulations promulgated thereunder.
"Person" means any individual, firm, partnership, corporation or other
------
entity, and shall include any successor (by merger or otherwise) of such entity.
"Rights" means the rights granted to the Company's shareholders to purchase
------
additional Common Shares under certain circumstances, as described in that
certain Rights Agreement, dated as of May 5, 1988, by and between the Company
and The First National Bank of Boston, as rights agent.
"Share Acquisition Date" means the first date of public announcement by the
----------------------
Company or an Acquiring Person that a Person has become an Acquiring Person.
"Subsidiary" of any Person means any corporation or other entity of which a
----------
majority of the voting power of the voting equity securities or equity interest
is owned, directly or indirectly, by such Person, or which is otherwise
controlled by such Person.
13. Amendment, Suspension, or Termination of the Plan.
-------------------------------------------------
(a) The Board may at any time amend, suspend or terminate the Plan as
it deems advisable; provided that such amendment, suspension or termination
complies with all applicable requirements of state and federal law,
including any applicable requirement that the Plan or an amendment to the
Plan be approved by the stockholders, and provided further that, except as
provided in Section 3(c) above, the Board shall in no event amend the Plan
in the following respects without the consent of stockholders then
sufficient to approve the Plan in the first instance:
(1) To materially increase the benefits accruing to participants
under the Plan;
(2) To materially increase the number of shares of Stock
available under the Plan or to increase the number of shares of Stock
available for grant of incentive stock options under the Plan; or
(3) To materially modify the eligibility requirements for
participation in the Plan or the class of employees eligible to receive
options under the Plan or to change the designation or class of persons
eligible to receive incentive stock options under the Plan.
13
<PAGE>
(b) No option or SAR may be granted nor may any Stock be issued
(other than upon exercise of outstanding options) under the Plan during any
suspension or after the termination of the Plan, and no amendment,
suspension, or termination of the Plan shall, without the affected
individual's consent, alter or impair any rights or obligations under any
option or SAR previously granted under the Plan.
14. Term of Plan. The Plan shall terminate with respect to the grant of
------------
additional awards on the tenth anniversary of the date the Plan is approved by
the stockholders, unless previously terminated by the Board pursuant to Section
13.
15. Use of Proceeds. Cash proceeds realized from the exercise of options
---------------
granted under the Plan or from other sales of Stock under the Plan shall
constitute general funds of the Company.
16. Stockholder Approval. The Plan was adopted by the Board on March 1, 1995
--------------------
and became effective when approved by the Company's stockholders on May 31,
1995. On February 29, 1996, the Board adopted and approved an amendment to
increase the automatic option grants to Non-Employee Directors from 5,000 to
7,500 shares of Stock which became effective when approved by the Company's
stockholders on July 23, 1996. On February 19, 1999, the Board adopted and
approved an amendment and restatement of the Plan to reflect amendments
promulgated by the Securities and Exchange Commission to Rule 16b-3 applicable
to the Plan, which amendment and restatement was not subject to stockholder
approval. On March 9, 2000, the Board adopted and approved an amendment to the
Plan to eliminate the ability of the Plan Administrator to reprice outstanding
options, which amendment was not subject to stockholder approval, and also
adopted and approved an amendment to the Plan to increase the maximum aggregate
number of shares of stock available for issuance under the Plan from 3,500,000
to 6,500,000, which will become effective if approved by the Company's
stockholders.
17. No Employment Right. Nothing in this Plan or any instrument executed or
-------------------
any award granted pursuant thereto shall confer upon any employee, independent
contractor, consultant or director any right to continue in the employ of the
Company or any Affiliate (or to continue acting as an independent contractor,
consultant or director) or shall affect the right of the Company or any
Affiliate to terminate the employment, contractual or consulting relationship or
directorship of any person, with or without cause.
14
<PAGE>
ACUSON CORPORATION
NON-EMPLOYEE DIRECTORS' NON-QUALIFIED STOCK OPTION AGREEMENT
This agreement (the "Agreement") is made as of __________ 199_ (the "Grant
Date") between Acuson Corporation (the "Company") and ("Optionee").
WITNESSETH:
WHEREAS, the Company has adopted the Acuson Corporation 1995 Stock
Incentive Plan (the "Plan"), which Plan is incorporated in this Agreement by
reference and made a part of it (capitalized terms shall have the meaning
ascribed to them in the Plan); and
WHEREAS, the Plan provides for automatic option grants to Non-Employee
Directors of the Company;
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth, the parties to this Agreement hereby agree as follows:
1. Option Grant. The Company hereby grants to Optionee the right and
------------
option to purchase from the Company on the terms and conditions hereinafter set
forth, all or any part of an aggregate of Seven Thousand Five Hundred (7,500)
shares of the Common Stock, $.0001 par value, of the Company (the "Stock"). The
exercise price of the Stock subject to this option shall be $___ per share,
which is not less than the fair market value per share of the Stock on the Grant
Date. This grant is an automatic option grant under Section 5 of the Plan.
2. Option Period. This option shall be exercisable only during the
-------------
period (the "Option Period") commencing on the Grant Date and, except as
provided in paragraph 3, ending on the date (the "Terminal Date") which shall be
ten years from the Grant Date. During the Option Period, the exercisability of
this option shall be subject to the limitations of paragraph 3 and the vesting
provisions of paragraph 4.
3. Limits on Option Period. The Option Period may end before the
-----------------------
Terminal Date, as follows:
(a) If Optionee ceases to be a director on the Company's Board
of Directors (the "Board") for any reason other than death, disability
(within the meaning of subparagraph (c) below) or cause during the Option
Period, the Option Period shall terminate on the earlier of (i) the last
day of the period, beginning on the day next following the day on which the
Optionee ceases to be a director, which equals in length the most recent
period of the Optionee's continuous service as a director (including all
portions of such period prior to the Grant Date), (ii) three years after
the date Optionee ceases to be a director, or (iii) the Terminal Date. In
each case this option shall be exercisable only to the
2
<PAGE>
extent exercisable under paragraph 4 on the date Optionee ceases to be a
director.
(b) If Optionee should die while serving on the Board, the
Option Period shall terminate three years after the date of death or on the
Terminal Date, whichever shall first occur, and this option shall be
exercisable only to the extent exercisable under paragraph 4 on the date of
Optionee's death. In the event of Optionee's death, Optionee's executor or
administrator or the person or persons to whom Optionee's rights under this
option shall pass by will or by the applicable laws of descent and
distribution may exercise the entire unexercised portion of this option to
the extent exercisable on the date of Optionee's death.
(c) If Optionee ceases to be a director by reason of disability,
as defined below, the Option Period shall terminate three years after the
date Optionee ceases to be a director or on the Terminal Date, whichever
shall first occur, and this option shall be exercisable only to the extent
exercisable under paragraph 4 on the date Optionee ceases to be a director.
For purposes of this subparagraph (c), an individual is disabled if he or
she is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last
for a continuous period of not less than 12 months. An individual shall not
be considered to be disabled unless he or she furnishes proof of the
existence thereof in such form and manner, and at such times, as the Board
may require.
(d) If Optionee is removed from the Board for cause during the
Option Period, the Option Period shall terminate on the date of such
Optionee's removal as a director and shall not thereafter be exercisable to
any extent.
4. Vesting of Right to Exercise Options.
------------------------------------
(a) This option shall vest as to fifty percent (50%) of the
number of shares originally covered by this option on the date which is six
months from the Grant Date, then daily thereafter in installments of
1/365th of the total shares subject to this option so that this option will
become fully vested and exercisable no later than one (1) year following
the Grant Date.
(b) Vesting of this option will cease prior to this option
becoming fully vested at such time that Optionee ceases to be a director of
the Company, including by reason of death or disability.
(c) Fractional shares shall not vest until such time as
additional fractional shares included in other installments allocated to
this option can be combined with the existing fractional shares to
constitute one or more whole shares.
3
<PAGE>
(d) Notwithstanding the foregoing, this option shall be fully
vested and nonforfeitable and shall become fully exercisable under the
circumstances specified in Section 12 of the Plan.
5. Method of Exercise.
------------------
(a) Optionee may exercise this option with respect to all or any
part of the shares of Stock then subject to such exercise by giving the
Company written notice of such exercise, specifying the number of such
shares as to which this option is exercised. Such notice shall be
accompanied by an amount equal to the exercise price of such shares, in any
of the forms permitted under Section 7 of the Plan.
(b) If required by the Company, Optionee shall give the Company
satisfactory assurance in writing, signed by Optionee or Optionee's legal
representative, as the case may be, that such shares are being purchased
for investment and not with a view to the distribution thereof, provided
that such assurance shall be deemed inapplicable to (i) any sale of such
shares by such Optionee made in accordance with the terms of a registration
statement covering such sale, which has heretofore been (or may hereafter
be) filed and become effective under the Securities Act of 1933, as
amended, and with respect to which no stop order suspending the
effectiveness thereof has been issued, and (ii) any other sale of such
shares with respect to which, in the opinion of counsel for the Company,
such assurance is not required to be given in order to comply with the
provisions of the Securities Act of 1933, as amended.
(c) As soon as practicable after receipt of the notice required
in paragraph 5(a) and satisfaction of the conditions set forth in paragraph
5(b), the Company shall, without transfer or issue tax and without other
incidental expense to Optionee, deliver to Optionee at the office of the
Company at 1220 Charleston Road, Mountain View, CA 94043, attention of the
Corporate Secretary, or such other place as may be mutually acceptable to
the Company and Optionee, a certificate or certificates for such shares of
Stock; provided, however, that the time of such delivery may be postponed
by the Company for such period as may be required for it with reasonable
diligence to comply with applicable registration requirements under the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, any applicable listing requirements of any national securities
exchange, and requirements under any other law or regulation applicable to
the issuance or transfer of such shares. If Optionee fails to accept
delivery of and pay for all or any part of the number of shares specified
in such notice upon tender or delivery thereof, Optionee's right to
purchase such shares may be terminated by the Company at its election. In
no event shall the Company be required to issue fractional shares upon the
exercise of this option.
4
<PAGE>
6. Withholding. Optionee agrees to make appropriate arrangements with the
-----------
Company for satisfaction of any applicable federal, state or local income tax
withholding requirements or social security requirements.
7. Changes in Capitalization. If there should be any change in a class of
-------------------------
Stock subject to this option, through merger, consolidation, reorganization,
recapitalization, reincorporation, stock split, stock dividend (in excess of two
percent) or other change in the capital structure of the Company, appropriate
adjustments shall be made in order to preserve, but not to increase, the
benefits to Optionee, including adjustments of the number and kind of shares of
such Stock subject to this option and of the price per share. Any adjustment
made pursuant to this paragraph 7 as a consequence of a change in the capital
structure of the Company shall not entitle Optionee to acquire a number of
shares of such Stock of the Company or shares of stock of any successor company
greater than the number of shares Optionee would receive if, prior to such
change, Optionee had actually held a number of shares of such Stock equal to the
number of shares subject to this option.
8. Transferability. This Option may be transferred by the Optionee in a manner
---------------
and to the extent acceptable to the Plan Administrator as evidenced by a writing
signed by the Company and the Optionee.
9. No Stockholder Rights. Neither Optionee nor any person entitled to exercise
---------------------
Optionee's rights in the event of Optionee's death shall have any of the rights
of a stockholder with respect to the shares of Stock subject to this option
except to the extent the certificates for such shares shall have been issued
upon the exercise of this option.
10. No Employment Right. Nothing in the Plan or this Agreement shall confer
-------------------
upon the Optionee any right to continue service as a director of the Company or
any Affiliate or shall affect the right of the Company or any Affiliate or the
shareholders of the Company or any Affiliate, as the case may be, to terminate
the directorship of Optionee, with or without cause.
11. Notice. Any notice required to be given to the Company under the terms of
------
this Agreement shall be given in writing and addressed to the Company in care of
its Corporate Secretary at the office of the Company at 1220 Charleston Road,
Mountain View, CA 94043, and any notice to be given to Optionee shall be given
in writing and addressed to Optionee at the address given by Optionee beneath
Optionee's signature to this Agreement, or such other address as either party to
this Agreement may hereafter designate in writing to the other. Any such notice
shall be deemed to have been duly given when enclosed in a properly sealed
envelope addressed as aforesaid, registered or certified and deposited (postage
and registration or certification fee prepaid) in a post office or branch post
office regularly maintained by the United States.
12. Successors. This Agreement shall be binding upon and inure to the benefit
----------
of any successor or successors of the Company. Where the context permits,
"Optionee" as used in this Agreement shall include Optionee's executor,
administrator or other legal
5
<PAGE>
representative or the person or persons to whom Optionee's rights pass by will
or the applicable laws of descent and distribution.
13. Applicable Law. The interpretation, performance, and enforcement of this
--------------
Agreement shall be governed by the laws of the State of California.
IN WITNESS WHEREOF, this Agreement has been executed as of the day and year
first written above.
Acuson Corporation
a Delaware corporation
By:_______________________________
Title:____________________________
Optionee
Signature:________________________
Address:__________________________
__________________________
__________________________
6
<PAGE>
EXHIBIT 5
---------
May 19, 2000
Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
This is with respect to the Registration Statement on Form S-8, to which this
opinion is an exhibit, covering an additional 3,000,000 shares of Acuson Common
Stock which may be issued pursuant to, or pursuant to the exercise of options
granted under, the Acuson Corporation 1995 Stock Incentive Plan.
It is my opinion that:
1. All necessary corporate action has been duly taken to adopt said Plan.
2. Said 3,000,000 shares of Acuson Common Stock have been reserved for
purposes of said Plan and such shares, when issued in accordance with the
terms and conditions of said Plan, will be legally issued, fully paid and
nonassessable.
I hereby consent to the filing of this opinion with the Securities and Exchange
Commission as an exhibit to the aforesaid registration statement.
Very truly yours,
/s/ Charles H. Dearborn
<PAGE>
EXHIBIT 23A
-----------
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this registration statement of our reports dated January 31, 2000,
included or incorporated by reference in Acuson Corporation's Form 10-K for the
year ended December 31, 1999, and to all references to our Firm included in this
registration statement.
/s/ ARTHUR ANDERSEN LLP
San Jose, California
May 19, 2000
