CORONADO INDUSTRIES, INC.
STOCK OPTION AGREEMENT
UNDER 1998 STOCK OPTION PLAN
Date of Grant: December 21, 1998
CORONADO INDUSTRIES, INC., a Nevada corporation (the "Corporation")
hereby grants to XXXXXXX X. HAIR (the "Optionee"), pursuant to the 1998 Stock
Option Plan of the Corporation (the "Plan") which is incorporated herein by
reference, an option to purchase a total of ONE HUNDRED FIFTY THOUSAND (150,000)
Shares as defined in the Plan (the "Option"), on the terms and conditions set
forth in the Plan and hereinafter. This Option shall not be exercisable later
than December 20, 2008 (herein referred to as the "Expiration Date").
1. VESTING. Subject to the terms and conditions of this Agreement, the
Shares subject to this Option shall be fully vested and exercisable as of this
date of grant, December 21, 1998.
2. OPTION PRICE. The Option price for the 150,000 Shares of this Option
shall be $.075 per share.
3. TERMINATION. This option and all rights hereunder to the extent such
rights shall not have been exercised shall terminate and become null and void if
the Optionee ceases to be engaged by the Company or its subsidiaries (whether by
resignation, retirement, dismissal, death or otherwise), except that (a) in the
event of the death or disability of the Optionee while engaged by the Company,
this option only to the extent exercisable at the date of death or disability
may be exercised within the applicable period of time and by the persons
indicated in Article VII (6) of the Plan, and (b) in the event of the
termination of the Optionee's engagement by the Company for any other reason,
this option only to the extent exercisable at the date of such termination may
be exercised prior to the expiration of three (3) months from the date of such
termination, and shall terminate in all other respects; PROVIDED, HOWEVER, that
in no event may this option be exercised after the Expiration Date.
4. EXERCISE. This Option is exercisable with respect to all, or from
time to time with respect to any portion, of the Shares described above which
have at that time become vested, by delivering written notice of such exercise,
in the form prescribed by the Board, to the principal office of the Secretary of
the Corporation. Each such notice shall be accompanied by payment in full of the
Option price of such Shares. The Corporation hereby grants to the Optionee the
right to make payment for the Shares of this Option pursuant to Article VIII of
the Plan (i.e., with Stock Appreciation Rights).
5. NON-TRANSFERABLE. This Option shall during the Optionee's lifetime
be exercisable only by the Optionee, and neither this Option nor any right
thereunder shall be transferable except by will or laws of descent and
distribution, or be subject to attachment, execution or other similar process.
In the event of any attempt by the Optionee to alienate, assign, pledge,
hypothecate or otherwise dispose of the Option or any right thereunder, except
as provided for herein, or in the event of the levy of any attachment, execution
or similar process upon the rights or interest hereby conferred, the Corporation
may terminate this Option by notice to the Optionee and this Option shall
thereupon become null and void.
6. LEGAL RESTRICTIONS. If the sale of the Shares purchased hereunder is
not registered under the Securities Act of 1933, but an exemption is available
which requires an investment or other representation, the Optionee shall
represent and agree at the time of exercise that the Shares being acquired upon
exercising this Option are being acquired for investment, and not with view to
the sale or distribution thereof, and shall make such other representations as
are deemed necessary or appropriate by the Corporation and its counsel. In
addition, the Optionee agrees that the following legend may be included on the
certificate representing the Shares:
The shares represented hereby have not been registered under the United
States Securities Act of 1933, as amended, and may not be sold, pledged, or
otherwise transferred without an effective registration thereof under such act
or an opinion of counsel, satisfactory to the company and its counsel, that such
registration is not required.
7. CORPORATE TRANSACTIONS.
(a) If the Corporation is merged or consolidated into or with another
corporation (other than by a merger or consolidation in which the Corporation is
the surviving corporation) or the Corporation or the Corporation's assets are
purchased by another company in exchange for stock, the Corporation shall give
the Optionee written notice of the Corporation's initial or preliminary
agreement to the transaction and the details of the transaction at least 60 days
prior to the closing of the transaction and an additional 30 days written notice
prior to the closing date of the transaction and each postponed closing date of
the transaction. The then exercisable but unexercised Shares granted in the
Option may be exercised by the Optionee at any time prior to the closing date of
the transaction and such exercised Shares shall then be deemed outstanding at
the close of the transaction.
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8. MISCELLANEOUS.
(a) Neither the granting of this Option nor the exercise thereof shall
be construed as conferring upon the Optionee any right to continue in the
engagement of the Corporation or any of its subsidiaries, or as interfering with
or restricting in any way the right of the Corporation to terminate such
engagement at any time.
(b) Neither the Optionee, nor any person entitled to exercise his
rights in the event of his death, shall have any of the rights of a stockholder
with respect to the Shares subject to this Option, except after such date the
Optionee or such person has been issued the Shares by the Corporation or its
agent.
(c) The Corporation is relieved from any liability for the non-issuance
or non-transfer or any delay in the issuance or transfer of any Shares subject
to this Option which results from the inability of the Corporation to obtain, or
in any delay in obtaining, from each regulatory body having jurisdiction all
requisite authority to issue or transfer Shares of the Corporation in
satisfaction of this Option if counsel for the Corporation deems such authority
necessary for the lawful issuance or transfer of any such shares.
(d) No Shares acquired by exercise of this Option shall be sold or
otherwise disposed of in violation of any federal or state securities law or
regulation in the Untied States.
(e) This Option shall be exercised in accordance with such
administrative regulations as the Corporation's Board may from time to time
adopt. All decisions of the Board upon any legitimate question arising under the
Plan or under this Stock Option Agreement shall be conclusive and binding upon
the Optionee and all other persons, if determined in good faith.
IN WITNESS WHEREOF, this Stock Option Agreement has been executed as of
the day and year first written above.
CORONADO INDUSTRIES, INC.
By: /s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx, President
ATTEST:
/s/ G. Xxxxxxx Xxxxx
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G. Xxxxxxx Xxxxx, Secretary
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