STOCK OPTION AGREEMENT
EXHIBIT
10.6
Grant #
________
This
Stock Option Agreement (“Agreement”) is made and entered into as of [DATE] (the “Grant Date”) by
and between Computer Sciences
Corporation, a Nevada corporation (the “Company”), and [NAME], a full-time employee
of the Company and/or one or more of its subsidiaries (the
“Employee”).
WHEREAS,
pursuant to the Company’s [PLAN] Stock Incentive Plan
(the “Plan”), the Company desires to grant to the Employee, and the Employee
desires to accept, an option to purchase shares of the common stock, par value
$1.00 per share, of the Company (the “Common Stock”), upon the terms and
conditions set forth herein, which terms and conditions have been approved by
the committee of the Board of Directors administering the Plan (the
“Committee”);
NOW,
THEREFORE, in consideration of the foregoing recital and the covenants set forth
herein, the parties hereto hereby agree as follows:
The
Company hereby grants to the Employee, and the Employee hereby accepts, an
option to purchase [SHARES] shares of Common
Stock (the “Option Shares”) at an exercise price of [EXERCISE PRICE] per share
(the “Exercise Price”), which option shall expire at 5:00 p.m., California,
U.S.A. time, on [EXPIRATION
DATE] (the “Expiration Date”) and shall be subject to all of the terms
and conditions set forth in the Plan and this Agreement, including, without
limitation, the terms and conditions set forth in Schedule “[__]” attached hereto and
incorporated herein by this reference (the “Option”). The Option
shall not initially be exercisable to purchase any Option Shares; provided,
however, that upon each of the dates indicated below, the Option shall become
exercisable to purchase (“vest with respect to”) the number of the Option Shares
indicated below across from such date:
Number of Option Shares
Vesting Date
(Shares) 1st Anniversary of
the Grant Date
(Shares) 2nd
Anniversary of the Grant Date
(Shares) 3rd Anniversary of
the Grant Date
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the Grant Date.
EMPLOYEE COMPUTER
SCIENCES CORPORATION
The
Employee acknowledges receipt of the Plan and a Prospectus relating to the
Option, and further acknowledges that he or she has reviewed this
Agreement and the related documents and accepts the provisions
thereof.
|
_____________________________________________
[NAME]
The
Employee acknowledges receipt of the Plan and a Prospectus relating to the
Option, and further acknowledges that he or she has reviewed this
Agreement and the related documents and accepts the provisions
thereof.
|
___________________________________________
[NAME]
[ADD1]
[ADD2]
[ADD3]
By
______________________________
Xxxxxxx
X. Xxxxxx
President
and Chief Executive Officer
By
______________________________
Xxxxxx
X. XxXxxx
Vice
President and Chief Financial Officer
b
STOCK
OPTION SCHEDULE [__]
ADDITIONAL
TERMS AND CONDITIONS
The
Option is intended not to qualify as an incentive option under Section 422
of the U.S. Internal Revenue Code.
Capitalized
terms not otherwise defined in this Stock Option Schedule (the “Schedule”) shall
have the same meanings as set forth in the Stock Option Agreement (the
“Agreement”) and the Plan.
This
Schedule has been incorporated by reference into the Agreement and, by signing
the Agreement, the Employee has acknowledged and agreed to the additional terms
and conditions of this Schedule. This Schedule and the Agreement are
collectively referred to as the “Agreement” herein.
1. Forfeiture
Obligations.
(a) Certain
Definitions. For purposes of this
Section, the following terms shall have the following meanings:
(i) “Stock
Option” shall mean the Option and each other stock option to purchase shares of
Common Stock (except stock options granted in lieu of an annual cash bonus) that
has previously been granted to the Employee by the Company or any of its
affiliates or predecessors-in-interest.
(ii) “Stock
Option Exercise Date” shall mean, with respect to each exercise of a Stock
Option, the date upon which such Stock Option is exercised.
(iii) “Restricted
Period” shall mean, with respect to each exercise of a Stock Option, the period
set forth in Section 1(c)(i) or (ii) hereof, respectively.
(iv) The “Fair
Market Value” of a share of Common Stock on any day shall be equal to the last
sale price, regular way, of a share of Common Stock on such day (or in case the
principal United States national securities exchange on which the Common Stock
is listed or admitted to trading is not open on such date, the next preceding
date upon which it is open), or in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities listed or admitted to trading on the principal United States
national securities exchange on which the Common Stock is listed or admitted to
trading.
(b) Refund of
Stock Option Gains; Termination of Stock Options. If the Employee
shall exercise a Stock Option at any time on or after the Grant Date and any of
the events set forth in Section 1(c)(i) or (ii) hereof shall occur during
the respective Restricted Period for such exercise, then:
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(i) Refund of
Stock Option Gains. The Employee
shall immediately deliver to the Company with respect to such exercise, an
amount in cash equal to:
(A) the
aggregate Fair Market Value, determined as of the Stock Option Exercise Date, of
the shares of Common Stock issued upon such exercise; minus
(B) the
aggregate exercise price paid, whether in cash or by the delivery or withholding
of shares of Common Stock, upon such exercise.
(ii) Termination
of All Stock Options. All Stock Options
that would otherwise be outstanding shall terminate on the Stock Option Exercise
Date.
(c) Triggering
Events. The events
referred to in Section 1(b) hereof are as follows:
(i) Competing
With the Company After Voluntary Termination of Employment and Prior to Six
Months After the Stock Option Exercise Date. The Employee
participating, as a director, officer, employee, agent, consultant or greater
than 5% equity holder (collectively, “Participating”), in any of the following
during the period of time commencing on the date upon which the Employee’s
status as a full-time employee of the Company or its affiliates is voluntarily
terminated (the “Voluntary Employment Termination Date”), there being a
presumption that any termination of employment is voluntary, and continuing
until six months after the Stock Option Exercise Date (for the purpose of such
event, the “Restricted Period”):
(A) Participating
in any manner in any enterprise that competes with, or is becoming a competitor
of, the Company (if the Employee is a Corporate Employee) or any operating
business unit of the Company in which the Employee has been employed within one
year prior to the Voluntary Employment Termination Date (if the Employee is not
a Corporate Employee) in any city in which the Company or such business unit,
respectively, provides services or products on the Voluntary Employment
Termination Date; or
(B) Participating
in any other organization or business, which organization or business, or which
Participation therein, is or is becoming otherwise prejudicial to or in conflict
with the interests of the Company.
(ii) Engaging
in Certain Activities After Voluntary Or Involuntary Termination of Employment
and Prior to One Year After the Stock Option Exercise Date. The Employee
engaging in any of the following activities during the period of time commencing
on the date upon which the Employee’s status as a full-time employee of the
Company or its affiliates is voluntarily or involuntarily terminated (the
“Employment Termination Date”) and continuing until one year after the Stock
Option Exercise Date (for the purpose of such events, the “Restricted
Period”):
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(A) Solicitation
of Customers or Prospective Customers. Directly or
indirectly soliciting any of the following with respect to any of the services
or products that the Company or any of its affiliates then provide to
customers:
(1) any
person or entity that the Employee knew to be a customer of the Company or any
of its affiliates; or
(2) any
person or entity whose business the Employee solicited on behalf of the Company
or its affiliates during the one-year period preceding the Employment
Termination Date.
(B) Solicitation
or Hiring of Employees. Directly or
indirectly soliciting or hiring any person who then is an employee of the
Company or any of its affiliates.
(C) Disclosure
of Confidential Information. Use, or
disclosure, communication or delivery to any person or entity, of any
confidential business information or trade secrets that the Employee obtained
during the course of his or her employment with the Company or any of its
affiliates (collectively, “Confidential Information”). Confidential
Information includes, without limitation, the following:
(1) non-public
financial information;
(2) non-public
operational information, including, without limitation, information relating to
business or market strategies, pricing policies and methodologies, research and
development plans, or the introduction of new services or products;
(3) information
regarding employees, including, without limitation, names, addresses, contact
information and compensation;
(4) information
regarding customers and suppliers, including, without limitation, names,
addresses, contact information and requirements, and the terms and conditions of
the business arrangements with such customers and suppliers;
(5) information
regarding potential acquisitions or dispositions of businesses or products;
and
(6) information
relating to proprietary technological or intellectual property, or the
operational or functional features or limitations thereof.
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(d) Release
of Forfeiture Obligations.
(i) Notwithstanding
the foregoing, the Employee shall be released from (A) all of his or her
obligations under Section 1(b) hereof in the event that a Change of Control (as
hereinafter defined) occurs within three years prior to the Employment
Termination Date, and (B) some or all of his or her obligations under
Section 1(b) hereof in the event that the Committee (if the Employee is an
executive officer of the Company) or the Company’s Chief Executive Officer (if
the Employee is not an executive officer of the Company) shall determine, in
their respective sole discretion, that such release is in the best interests of
the Company.
(ii) “Change
in Control” shall mean the consummation of a “change in the ownership” of
Computer Sciences Corporation, a “change in effective control” of Computer
Sciences Corporation or a “change in the ownership of a substantial portion of
the assets” of Computer Sciences Corporation, in each case, as defined in
Section 409A of the U.S. Internal Revenue Code and the regulations
thereunder.
(e) Effect on
Other Rights and Remedies. The rights of the
Company set forth in this Section 1 shall not limit or restrict in any manner
any rights or remedies which the Company or any of its affiliates may have under
law or under any separate employment, confidentiality or other agreement with
the Employee or otherwise with respect to the events described in Section 1(c)
hereof.
(f) Certification
Upon Exercise of Stock Options. Upon exercise of
any Stock Option, the Employee shall certify on a form acceptable to the
Committee that none of the events set forth in Section 1(c)(i) or 1(c)(ii)
hereof shall have occurred.
(g) Amendment
of All Other Stock Option Agreements. All other stock
option agreements covering Stock Options shall be deemed covered and amended by
Section 1(b)(ii) and 1(f) hereof.
(h) Reasonableness. The Employee
agrees that the terms and conditions set forth in Section 1 hereof are fair and
reasonable and are reasonably required for the protection of the interests of
the Company. If, however, in any judicial proceeding any provision of Section 1
hereof is found to be so broad as to be unenforceable, the Employee and the
Company agree that such provision shall be interpreted to be only so broad as to
be enforceable.
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2. Acceleration
and Termination.
(a) Termination of Status as
Full-Time Employee.
(i) Termination at Age 62 or
Older.
(A) If the
Employee’s status as a full-time employee of the Company or any of its
subsidiaries is terminated at age 62 or older for no reason, or for any reason
other than Cause (as hereinafter defined), including, without limitation, by
reason of death or Disability (as hereinafter defined), then:
(1) if the
Employee shall have been (or for any other purpose shall have been treated as if
he or she had been) a continuous full-time employee of the Company or its
subsidiaries for at least 10 years immediately prior to the date of termination
of full-time status (the “Employment Termination Date”), then (a) the portion of
the Option that has not vested on or prior to such date shall fully vest
immediately prior to such date, and (b) subject to Section 2(a)(ii) hereof, the
Option shall terminate upon the earlier of the Expiration Date or the fifth
anniversary of the Employment Termination Date; and
(2) if the
Employee shall not have been (and shall not for any other purpose have been
treated as if he or she had been) a continuous full-time employee of the Company
or its subsidiaries for at least 10 years immediately prior to the Employment
Termination Date, then, subject to Section 2(a)(ii) hereof (a) the portion of
the Option that has not vested on or prior to such date shall terminate on such
date, and (b) the remaining vested portion of the Option shall terminate upon
the earlier of the Expiration Date or the fifth anniversary of the Employment
Termination Date.
(B) If the
Employee’s status as a full-time employee of the Company or any of its
subsidiaries is terminated at age 62 or older for Cause, then (1) the portion of
the Option that has not vested on or prior to such date shall terminate on such
date, and (2) the remaining vested portion of the Option shall terminate upon
the earlier of the Expiration Date or three months after the Employment
Termination Date.
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(C) “Cause”
shall mean: (1) fraud, misappropriation, embezzlement or other act of material
misconduct against the Company or any of its affiliates; (2) conviction of a
felony involving a crime of moral turpitude; (3) willful and knowing violation
of any rules or regulations of any governmental or regulatory body material to
the business of the Company; or (4) substantial and willful failure to render
services in accordance with the terms of his or her employment (other than as a
result of illness, accident or other physical or mental incapacity), provided
that (a) a demand for performance of services has been delivered to the Employee
in writing by the Employee’s supervisor at least 60 days prior to termination
identifying the manner in which such supervisor believes that the Employee has
failed to perform and (b) the Employee has thereafter failed to remedy such
failure to perform.
(ii) Lay-Off
or Leave of Absence.
(A) If the
Employee’s status as a full-time employee of the Company or any of its
subsidiaries is terminated by reason of a permanent or temporary lay-off, or a
leave of absence other than a military leave of absence, then the Option shall
be suspended, but not canceled, as of the Employment Termination
Date. If the Employee shall thereafter become a full-time employee of
the Company or any of its subsidiaries on or prior to the earlier of (i) the
Expiration Date or (ii) the first anniversary of the Employment Termination
Date, then the Option shall be reinstated. If the Option has not been
so reinstated on or prior to such earlier date, then the Option shall be
canceled on that date.
(B) If the
Employee’s status as a full-time employee of the Company or any of its
subsidiaries is terminated by reason of a military leave of absence, then the
Option shall be suspended, but not canceled, as of the Employment Termination
Date. If the Employee shall thereafter become a full-time employee of
the Company or any of its subsidiaries on or prior to the earliest of
(i) the Expiration Date, (ii) the fifth anniversary of the Employment
Termination Date or (iii) the date upon which the military leave of absence
terminates, then the Option shall be reinstated. If the Option has
not been so reinstated on or prior to such earliest date, then the Option shall
be canceled on that date.
(C) During
any period in which the Option is suspended, it shall be treated for all
purposes under this Agreement as though the Employee’s status as a full-time
employee of the Company or any of its subsidiaries had been voluntarily
terminated by the Employee other than for death, Permanent Disability or
Cause. If the Option is reinstated, then it shall thereafter be
treated, for all purposes under this Agreement other than the vesting of any
portion of the Option that shall have theretofore vested, as though the Employee
had never ceased to be a full-time employee of the Company or any of its
subsidiaries.
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(iii) Death or Disability at Age
61 or Younger.
(A) If the
Employee’s status as a full-time employee of the Company or any of its
subsidiaries is terminated at age 61 or younger by reason of the death or
Disability of the Employee, then (1) the portion of the Option that has not
vested on or prior to the Employment Termination Date shall fully vest
immediately prior to such date and (2) the Option shall terminate upon the
earlier of the Expiration Date or the first anniversary of the Employment
Termination Date.
(B) “Disability”
shall mean the Employee has become “disabled,” as such term is defined in
Section 409A of the U.S. Internal Revenue Code and the regulations
thereunder.
(iv) Other
Termination at Age 61 or Younger. If the Employee’s
status as a full-time employee of the Company or any of its subsidiaries is
terminated at age 61 or younger for no reason, or for any reason (including
Cause) other than death, Disability, permanent or temporary lay-off, or Approved
Leave of Absence, then (A) the portion of the Option that has not vested on or
prior to the Employment Termination Date shall terminate on such date and (B)
the remaining vested portion of the Option shall terminate upon the earlier of
the Expiration Date or three months after the Employment Termination
Date.
(b) Death
Following Termination of Full-Time Status. Notwithstanding
anything to the contrary in this Agreement, if the Employee shall die at any
time after the termination of his or her status as a full-time employee of the
Company or any of its subsidiaries and at a time when the Option is exercisable,
then the Option shall remain exercisable until, and shall terminate upon, the
earlier of the Expiration Date or the first anniversary of the date of such
death.
(c) Acceleration of
Option.
(i) The
Committee, in its sole discretion, may accelerate the exercisability of the
Option at any time and for any reason.
(ii) Notwithstanding
anything to the contrary in this Agreement, upon the date of a Change of
Control: (A) the portion of the Option that has not vested on or prior thereto
shall fully vest on such date and (B) the Option shall remain exercisable until,
and shall terminate upon, the earlier of the Expiration Date or, if applicable,
the first anniversary of the date of the Employee’s death.
(d) Certain
Events Causing Termination of Option. Notwithstanding
anything to the contrary in this Agreement, the Option shall terminate upon the
consummation of any of the following events, or, if later, the thirtieth day
following the first date upon which such event shall have been approved by both
the Board of Directors and the stockholders of the Company, or upon such later
date as shall be determined by the Committee:
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(i) the
dissolution or liquidation of the Company;
(ii) a sale of
substantially all of the property and assets of the Company, unless the terms of
such sale shall provide otherwise; or
(iii) a
reorganization, merger or consolidation of the Company that results in the
outstanding securities of any class then subject to the Option being exchanged
for or converted into cash, property and/or securities not issued by the
Company, unless the terms of such reorganization, merger or consolidation
provide otherwise.
3. Adjustments. In the event that
the outstanding securities of the class then subject to the Option are
increased, decreased or exchanged for or converted into cash, property and/or a
different number or kind of securities, or cash, property and/or securities are
distributed in respect of such outstanding securities, in either case as a
result of a reorganization, merger, consolidation, recapitalization,
reclassification, dividend (other than a regular, quarterly cash dividend) or
other distribution, stock split, reverse stock split or the like, or in the
event that substantially all of the property and assets of the Company are sold,
then, unless such event shall cause the Option to terminate pursuant to
Section 2(d) hereof, the Committee shall make appropriate and proportionate
adjustments in the number and type of shares or other securities or cash or
other property that may thereafter be acquired upon the exercise of the Option;
provided, however, that any such adjustments in the Option shall be made without
changing the aggregate Exercise Price of the then unexercised portion of the
Option.
4. Exercise. The Option shall
be exercisable during the Employee’s lifetime only by the Employee or by his or
her guardian or legal representative, and after the Employee’s death only by the
person or entity entitled to do so under the Employee’s last will and testament
or applicable intestate law. The Option may only be exercised by the
delivery to the Company of a written notice of such exercise, in the form
specified by the Company, which notice shall, among other things, specify the
number of Option Shares to be purchased and the aggregate Exercise Price for
such shares, together with payment in full of such aggregate Exercise Price by
check or pursuant to the Company’s cashless exercise program; provided, however,
that payment of such aggregate Exercise Price may instead be made, in whole or
in part, by the delivery to the Company of shares of Common Stock (including
Option Shares otherwise issuable upon such exercise), which delivery effectively
transfers to the Company good and valid title to such shares, free and clear of
any pledge, commitment, lien, claim or other encumbrance (such shares to be
valued on the basis of the aggregate Fair Market Value thereof on the date of
such exercise), provided that the Company is not then prohibited from purchasing
or acquiring such shares of Common Stock.
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5. Payment
of Taxes.
(a) If the
Company and/or the Employee’s employer (the “Employer”) are obligated to
withhold an amount on account of any federal, state or local tax imposed as a
result of the exercise of the Option (collectively, “Taxes”), including, without
limitation, any federal, state or other income tax, or any F.I.C.A., state
disability insurance tax or other employment tax, then, concurrently with such
exercise, the Employee shall pay to the Company, by check, the minimum aggregate
amount that the Company and the Employer are so obligated to withhold, as such
amount shall be determined by the Company (the “Minimum Withholding Liability”);
provided, however, that the Employee may instead pay all or any part of the
Minimum Withholding Liability by either of the following methods:
(i) pursuant
to the Company’s cashless exercise program; or
(ii) by
instructing the Company to withhold shares of Common Stock otherwise issuable
upon such exercise of the Option (such withholding to be valued on the basis of
the aggregate Fair Market Value of the withheld shares on the date of such
exercise), provided that if the Employee is then subject to Section 16(b) of the
Exchange Act, such method of payment may only be used if, in the opinion of the
General Counsel of the Company, such use would not cause the Employee to incur
any liability pursuant to Section 16(b); and
provided,
further, however, that if all of such payment is made by check and/or pursuant
to the Company’s cashless exercise program, then the Employee shall be entitled,
but not obligated, so to pay an amount that is greater than the Minimum
Withholding Liability.
(b) The
Employee acknowledges that neither the Company nor the Employer
has:
(i) except to
the extent specifically set forth in a prospectus delivered by the Company to
the Employee together with this Agreement, made any representation or given any
advice to the Employee with respect to the realization or recognition of any
Taxes by the Employee; or
(ii) undertaken
or agreed to structure the Option, or the grant of the Option, to reduce or
eliminate the Employee’s liability or potential liability for
Taxes.
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6. Data
Privacy.
(a) In
order to implement, administer, manage and account for the Employee’s
participation in the Plan, the Company and/or the Employer may:
(i) collect
and use certain personal data regarding the Employee, including, without
limitation, the Employee’s name, home address and telephone number, work address
and telephone number, work e-mail address, date of birth, social insurance or
other identification number, term of employment, employment status, salary,
nationality and tax residence, and any details regarding the terms and
conditions, grant, vesting, exercise, cancellation, termination and expiration
of all stock options and other stock-based incentives granted, awarded or sold
to the Employee by the Company (collectively, the “Data”);
(ii) transfer
the Data to any third parties who may be involved in the implementation,
administration and/or management of the Plan, which recipients may be located in
the Employee’s country or in other countries that may have different data
privacy laws and protections than the Employee’s country;
(iii) transfer
the Data to a broker or other third party with whom the Employee has elected to
deposit any Option Shares acquired upon exercise of the Option; and
(iv) retain
the Data for only as long as may be necessary in order to implement, administer,
manage and account for the Employee’s participation in the Plan.
(b) The
Employee hereby explicitly and unambiguously consents to the collection, use,
transfer and retention of the Data, as described in this Agreement, in
electronic or other form, for the exclusive purpose of implementing,
administering, managing and accounting for the Employee’s participation in the
Plan.
(c) The
Employee understands that by contacting his or her local human resources
representative, the Employee may:
(i) view
the Data;
(ii) correct
any inaccurate information included within the Data;
(iii) request
additional information regarding the storage and processing of the Data;
and
(iv) request
a list with the names and addresses of any potential recipients of the
Data.
(d) The
Employee understands that he or she may refuse or withdraw the consents herein,
in any case without cost, by contacting in writing his or her local human
resources representative. The Employee understands, however, that
refusing or withdrawing his or her consent may affect his or her ability to
participate in the Plan. For more information on the consequences of
the Employee’s refusal to consent or withdrawal of consent, the Employee
understands that he or she may contact his or her local human resources
representative.
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7. Stock
Exchange Requirements; Applicable Laws. Notwithstanding
anything to the contrary in this Agreement, no Option Shares purchased upon
exercise of the Option, and no certificate representing all or any part of such
shares, shall be issued or delivered if, in the opinion of counsel to the
Company, such issuance or delivery would cause the Company to be in violation
of, or to incur liability under, any securities law, or any rule, regulation or
procedure of any U.S. national securities exchange upon which any securities of
the Company are listed, or any listing agreement with any such securities
exchange, or any other requirement of law or of any administrative or regulatory
body having jurisdiction over the Company.
8. Nontransferability. Neither the
Option nor any interest therein may be sold, assigned, conveyed, gifted,
pledged, hypothecated or otherwise transferred in any manner other than by will
or the laws of descent and distribution.
9. Plan. The Option is
granted pursuant to the Plan, as in effect on the Grant Date, and is subject to
all the terms and conditions of the Plan, as the same may be amended from time
to time; provided, however, that no such amendment shall deprive the Employee,
without his or her consent, of the Option or of any of the Employee’s rights
under this Agreement. The interpretation and construction by the
Committee of the Plan, this Agreement, the Option and such rules and regulations
as may be adopted by the Committee for the purpose of administering the Plan
shall be final and binding upon the Employee. Until the Option shall
expire, terminate or be exercised in full, the Company shall, upon written
request therefor, send a copy of the Plan, in its then-current form, to the
Employee or any other person or entity then entitled to exercise the
Option.
10. Stockholder
Rights. No person or
entity shall be entitled to vote, receive dividends or be deemed for any purpose
the holder of any Option Shares until the Option shall have been duly exercised
to purchase such Option Shares in accordance with the provisions of this
Agreement.
11. Nature of
Company Option Grants. The Employee
acknowledges and agrees that:
(a) the Plan
was established voluntarily by the Company, it is discretionary in nature and it
may be modified, amended, suspended or terminated by the Company at any time, as
provided in the Plan;
(b) the grant
of the Option is voluntary and occasional and does not create any contractual or
other right to receive any future Option grants, or any benefits in lieu of
Options, even if the Employee has repeatedly received Option grants in the
past;
(c) all
decisions with respect to future grants of Options by the Company will be at the
sole discretion of the Company;
(d) the
Employee’s participation in the Plan shall not create a right to further
employment with the Employer and shall not interfere with the ability of the
Employer to terminate the Employee’s employment relationship at any time with or
without Cause;
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(e) the
Employee is voluntarily participating in the Plan;
(f) the
Option is an extraordinary item which does not constitute compensation of any
kind for services of any kind rendered to the Company or the Employer, and which
is outside the scope of the Employee’s employment contract, if any;
(g) the
Option is not part of normal or expected compensation or salary for any
purposes, including, without limitation, for purposes of calculating any
severance, resignation, termination, redundancy or end-of-service payments, or
any bonuses, long-service awards or pension or retirement benefits, or any
similar payments;
(h) in the
event that the Employee is not an employee of the Company, the Option grant will
not be interpreted to form an employment contract or relationship with the
Company; and furthermore, the Option grant will not be interpreted to form an
employment contract with the Employer or any Subsidiary of the
Company;
(i) the
future value of the underlying Option Shares is unknown and cannot be predicted
with certainty;
(j) if the
underlying Option Shares do not increase in value, the Option will have no
value;
(k) if the
Employee exercises the Option, the value of the Option Shares acquired upon
exercise may increase or decrease in value, even below the Exercise
Price;
(l) in
consideration of the grant of the Option, no claim or entitlement to
compensation or damages shall arise from termination of the Option or diminution
in value of the Option or Option Shares purchased through exercise of the Option
resulting from termination of the Employee’s employment by the Company or the
Employer (for any reason whatsoever and whether or not in breach of local labor
laws) and the Employee irrevocably releases the Company and the Employer from
any such claim that may arise; if, notwithstanding the foregoing, any such claim
is found by a court of competent jurisdiction to have arisen, then, by signing
the Agreement, the Employee shall be deemed irrevocably to have waived his or
her entitlement to pursue such claim; and
12. Successors. The Agreement
shall be binding upon and inure to the benefit of the Company and its successors
and assigns, on the one hand, and the Employee and his or her heirs,
beneficiaries, legatees and personal representatives, on the other
hand.
13. Entire
Agreement; Amendments and Waivers. The Agreement embodies the
entire understanding and agreement of the parties with respect to the subject
matter hereof, and no promise, condition, representation or warranty, express or
implied, not stated or incorporated by reference herein, shall bind either party
hereto. None of the terms and conditions of the Agreement may be
amended, modified, waived or canceled except by a writing, signed by the parties
hereto specifying such amendment, modification, waiver or
cancellation. A waiver by either party at any time of compliance with
any of the terms and conditions of the Agreement shall not be considered a
modification, cancellation or consent to a future waiver of such terms and
conditions or of any preceding or succeeding breach thereof, unless expressly so
stated.
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14. Governing
Law; Consent to Jurisdiction. The Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of Nevada, United States of America, excluding any conflicts or choice
of law rule or principle that might otherwise refer construction or
interpretation of the Agreement to the substantive law of another
jurisdiction. Any action, suit or proceeding to enforce the terms and
provisions of the Agreement, or to resolve any dispute or controversy arising
under or in any way relating to the Agreement, may be brought in the state
courts for the County of Washoe, State of Nevada, United States of America, and
the parties hereto hereby consent to the jurisdiction of such
courts.
15. Language. If the Employee has received
the Agreement or any other document related to the Plan translated into a
language other than English, and the translated version is different than the
English version, the English version will control.
16. Electronic
Delivery. The Company may,
in its sole discretion, decide to deliver any documents related to the Option
granted under and participation in the Plan or future Options that may be
granted under the Plan by electronic means or to request the Employee’s consent
to participate in the Plan by electronic means. The Employee hereby
consents to receive such documents by electronic delivery and, if requested, to
agree to participate in the Plan through an on-line or electronic system
established and maintained by the Company or another third party designated by
the Company.
17. Severability. Any provision of
the Agreement which is invalid, illegal or unenforceable in any jurisdiction
shall, as to that jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability, without affecting in any way the remaining
provisions hereof in such jurisdiction or rendering that or any other provision
of the Agreement invalid, illegal or unenforceable in any other
jurisdiction.
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