Exhibit 10.19
TECHNISOURCE, INC.
NONQUALIFIED STOCK OPTION AGREEMENT
This Nonqualified Stock Option Agreement (the "Agreement"), effective as of
August 17, 2001 (the "Date of Grant"), is made by and between Technisource,
Inc., a Florida corporation (the "Company"), and Xxxxxx X. Xxxx (the
"Participant").
Background
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The Company has established the Technisource, Inc. Long-Term Incentive Plan (the
"Plan"). The Company wishes to grant to the Participant a Nonqualified Stock
Option pursuant to the terms of the Plan.
Therefore, in consideration of the mutual covenants contained in this Agreement
and other good and valuable consideration, the Company and the Participant agree
as follows:
1. Grant of Option. In consideration of service to the Company and for other
good and valuable consideration, the Company grants to the Participant a
Nonqualified Stock Option (the "Option") to purchase 25,000 shares of the
Company's common stock. The Company grants the Option in accordance with
the terms and conditions of the Plan and this Agreement.
2. Option Price. The urchase price of the shares of stock covered by the
Option shall be the Fair Market Value of the stock on the Date of Grant,
which was $1.51 per share.
3. Adjustments in Option. If the outstanding shares of stock subject to the
Option are changed into or exchanged for a different number or kind of
shares of the Company or other securities of the Company by reason of
merger, consolidation, recapitalization, reclassification, stock split,
stock dividend or combination of shares, the shares subject to the Option
and the price per share shall be equitably adjusted to reflect such
changes. Such adjustment in the Option shall be made without change in the
total price applicable to the unexercised portion of the Option (except for
any change in the aggregate price resulting from rounding-off of share
quantities or prices) and with any necessary corresponding adjustment in
the Option price per share. Any such adjustment made by the Committee shall
be final and binding upon the Participant, the Company and all other
interested persons.
4. Person Eligible to Exercise Option. During the lifetime of the Participant,
only the Participant may exercise the Option or any portion of the Option.
After the death of the Participant, any exercisable portion of the Option
may, prior to the time when the Option becomes unexercisable under the
terms of the Plan, be exercised by the Participant's personal
representative or by any other person empowered to do so under the
Participant's will, trust or under then applicable laws of descent and
distribution.
5. Manner of Exercise. The Option, or any portion of the Option, shall be
exercised only in accordance with the provisions of the Plan and this
Agreement. The person exercising the Option
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shall give to the Company a written notice that shall: (i) state the number
of Shares with respect to which the Option is being exercised; and (ii)
specify a date (other than a Saturday, Sunday or legal holiday) not less
than five nor more than ten days after the date of such written notice, as
the date on which the Shares will be purchased. Such tender and conveyance
shall take place at the principal office of the Company during ordinary
business hours, or at such other hour and place agreed upon by the Company
and the person or persons exercising the Option. On the date specified in
such written notice, the Company shall accept payment for the Option Shares
in cash, by bank or certified check, by wire transfer, or by such other
means as may be approved by the Committee and shall deliver to the person
or persons exercising the Option in exchange therefor an appropriate
certificate or certificates for fully paid nonassessable Shares or
undertake to deliver certificates within a reasonable period of time. In
the event of any failure to take up and pay for the number of Shares
specified in such written notice on the date set forth therein (or on the
extended date as above provided), the right to exercise the Option shall
terminate with respect to such number of Shares, but shall continue with
respect to the remaining Shares covered by the Option and not yet acquired
pursuant thereto.
The person who exercises the Option shall warrant to the Company that, at
the time of such exercise, such person is acquiring his or her Option
Shares for investment and not with a view to, or for or in connection with,
the distribution of any such Shares, and shall make such other
representations, warranties, acknowledgments, and affirmations, if any, as
the Committee may require. In such event, the person acquiring such Shares
shall be bound by the provisions of an appropriate legend which shall be
endorsed upon the certificate(s) evidencing his or her Option Shares issued
pursuant to such exercise. The Company may delay issuance of the Shares
until completion of any action or obtaining any consent that the Company
deem necessary under any applicable law (including without limitation state
securities or "blue sky" laws).
6. Conditions to Issuance of Stock Certificates. The shares of stock
deliverable upon the exercise of the Option, or any portion thereof, may be
either previously authorized but unissued shares or issued shares which
have been reacquired by the Company. Such shares shall be fully paid and
nonassessable.
7. Rights of Shareholders. The Participant shall not be, nor have any of the
rights or privileges of, a shareholder of the Company in respect of any
shares purchasable upon the exercise of any part of the Option unless and
until certificates representing such shares shall have been issued by the
Company to the Participant.
8. Vesting and Exercisability. A Participant's interest in the Option shall
vest according to the provisions of this Section 8 and shall be exercisable
as to not more than the vested percentage of the shares subject to the
Option at any point in time. The Option shall become 100% vested on August
16, 2002. The Committee, in its sole and absolute discretion, may
accelerate the vesting of the Option at any time. In the event of a Change
in Control of the Company, any unvested portion of the Option shall
immediately become 100% vested and the Board of Directors of the Company
may, but is not required to, terminate the Option effective upon the date
of the Change in Control and make a cash payment to the Participant equal
to the difference between
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the exercise price of the Option and the fair market value of the shares
that would have been subject to the terminated Option on the date of the
Change in Control
A "Change in Control" shall mean when (i) any person, including a "group"
as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended, who does not currently own ten percent or more of the Company's
capital stock becomes the beneficial owner of thirty-three percent or more
of the capital stock of the Company, (ii) the Company is merged into any
other company and the holder's of the Company's common stock immediately
prior to such merger fail to hold at least fifty percent of the common
stock of the Company immediately following such merger, or substantially
all of the Company's assets are acquired by any other entity, or (iii)
three or more directors nominated by the Board to serve as a director, each
having agreed to serve in such capacity, fail to be elected in a contested
election of directors.
9. Duration of Option. Except as specified below, the Option shall expire on
August 16, 2011. Notwithstanding the foregoing, the Option may expire prior
to August 16, 2001 in the following circumstances:
a. In the case of the Participant's death, the Option shall expire on the
one-year anniversary of the Participant's death.
b. If the Participant's employment or affiliation with the Company
terminates as a result of his total and permanent disability, the
Option will expire on the one-year anniversary of the Participant's
last day of employment.
c. If the Participant ceases employment or affiliation with the
Company for any reason other than death or disability, the Option
shall expire 90 days following the last day that the Participant is
employed by the Company.
d. Notwithstanding any provisions set forth above in this Section 9,
if the Participant shall (i) commit any act of malfeasance or
wrongdoing affecting the Company or its affiliates, (ii) breach any
covenant not to compete or employment agreement with the Company or
any affiliate, or (iii) engage in conduct that would warrant the
Participant's discharge for cause, any unexercised part of the Option
shall expire immediately upon the earlier of the occurrence of such
event or the last day the Participant is employed by the Company.
10. Administration. The Committee shall have the power to interpret this
Agreement and to adopt such rules for the administration, interpretation
and application of the Agreement as are consistent herewith and to
interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee in good faith
shall be final and binding upon the Participant, the Company and all other
interested persons. No member of the Committee shall be personally liable
for any action, determination or interpretation made in good faith with
respect to this Agreement or any similar agreement to which the Company is
a party.
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11. Transfer of Option. Unless otherwise permitted by applicable laws and
approved in advance by the Committee, the Option shall not be transferable
by the Participant and shall be exercisable, during the Participant's
lifetime, only by such Participant or, in the event of the Participant's
incapacity, his guardian or legal representative. Except as otherwise
permitted herein, the Option shall not be assigned, pledged, or
hypothecated in any way (whether by operation of law or otherwise) and
shall not be subject to execution, attachment, or similar process and any
attempted transfer, assignment, pledge, hypothecation or other disposition
of the Option or of any rights granted thereunder contrary to the
provisions of this Section 11, or the levy of any attachment or similar
process upon an option or such rights, shall be null and void. This Section
11 shall not prevent transfers by will or by the applicable laws of descent
and distribution.
12. Shares to be Reserved. The Company shall at all times during the term of
the Option reserve and keep available such number of shares of stock as
will be sufficient to satisfy the requirements of this Agreement.
13. Notices. Any notice to be given under the terms of this Agreement to the
Company shall be addressed to the Company in care of its Secretary and any
notice to be given to the Participant shall be addressed to him at the
address given beneath his signature below. By a notice given pursuant to
this Section 13, either party may hereafter designate a different address
for notices to be given to him. Any notice which is required to be given to
the Participant shall, if the Participant is then deceased, be given to the
Participant's personal representative if such representative has previously
informed the Company of his status and address by written notice under this
Section 13. Any notice shall have been deemed duly given when enclosed in a
properly sealed envelope addressed as aforesaid, deposited (with postage
prepaid) in a United States postal receptacle.
14. Titles. Titles are provided herein for convenience only and are not to
serve as a basis for interpretation or construction of this Agreement.
15. Incorporation of Plan by Reference. The Option is granted in accordance
with the terms and conditions of the Plan, the terms of which are
incorporated herein by reference, and the Agreement shall in all respects
be interpreted in accordance with the Plan. Any term used in the Agreement
that is not otherwise defined in the Agreement shall have the meaning
assigned to it by the Plan.
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The Company and the Participant have executed this Agreement effective as of the
date first written above.
TECHNISOURCE, INC.
By:________________________________
Name: Xxxxx X. Xxxxxxxxx
Title: President, Chief Operating Officer
___________________________________
Xxxxxx X. Xxxx
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