1
EXHIBIT 10.25
Xxxxxxxxxx Option Grant
AMN HOLDINGS, INC.
1999 SUPER-PERFORMANCE STOCK OPTION PLAN
Nonqualified Stock Option Agreement
STOCK OPTION AGREEMENT dated November 20, 2000, between AMN HOLDINGS,
INC., a Delaware corporation (the "Company"), and Xxxxx X. Xxxxxxxxxx (the
"grantee").
All words and phrases not otherwise expressly defined herein shall have
the same meanings as are ascribed to such words and phrases in the Plan
document.
The Committee has determined that the objectives of the Plan will be
furthered by granting to the grantee an option pursuant to the Plan.
In consideration of the foregoing and of the mutual undertakings set
forth in this Stock Option Agreement, the Company and the grantee agree as
follows:
SECTION 1. Grant of Option. The Company hereby grants to the grantee a
nonqualified stock option to purchase 1,562 shares of Stock at a purchase price
of $163.9743 per share.
SECTION 2. Exercisability.
(a) In General. Subject to Section 4 hereof, the option shall become
vested and exercisable if, and only if certain performance targets are met, as
follows:
Number of Shares
as to which
Fiscal Year EBITDA Option Becomes Exercisable
----------- ------ --------------------------
2000 at least $21,752,000 390.5
2001 at least $26,088,000 390.5
2002 at least $45,845,000 390.5
2003 at least $52,734,000 390.5
Any portion of the option that becomes exercisable pursuant to the
above shall become exercisable as of the date of delivery of audited financial
statements by the Company's independent auditor for the applicable Fiscal Year
(in each case, the "Fiscal Year Vesting Date"), provided that the grantee was
employed on the last day of the applicable Fiscal Year.
(b) Change of Control Acceleration. Notwithstanding the foregoing, in
the event a Change of Control occurs prior to December 31, 2003, in which the
net proceeds actually received by HWH Capital Partners, L.P. and its affiliates
(collectively, "HWP") in the form of cash and marketable securities exceeds, on
an aggregate basis (after taking into account any prior sales by HWP of any
portion of its investment in the
2
2
Company), $491.92 per share of Stock, the portion of the option which was
eligible to become vested pursuant to Section 2(a) with respect to the Fiscal
Year in which a Change of Control occurs and, if any, later Fiscal Years shall
become exercisable, effective immediately prior to such event.
(c) Expiration of Option.
(i) Generally. Subject to the provisions of this Section 2(c)
and Section 4, the option shall terminate and cease to be
exercisable on December 31, 2009.
(ii) Special Rule. Notwithstanding the provisions of Section
2(c)(i), if the Company does not meet the performance target
established in Section 2(a) for a Fiscal Year, that portion
of the option which was eligible to become vested with
respect to such Fiscal Year shall immediately terminate.
SECTION 3. Method of Option Exercise. The option or any part thereof may be
exercised only by giving to the Company written notice of exercise in the form
prescribed by the Committee. Full payment of the purchase price shall be made on
the option exercise date by certified or official bank check or, in the
Committee's discretion (which shall not be unreasonably withheld), by personal
check (subject to collection), payable to the Company, or delivery of shares of
Stock already owned by the grantee for at least six months prior to the option
exercise date as described in Section 5.4(b)(iii) of the Plan. The grantee shall
have no right to pay the option exercise price, or to receive shares of Stock
with respect to an option exercise, prior to the option exercise date. For
purposes of this Stock Option Agreement, the "option exercise date" shall be
deemed to be the first business day immediately following the date written
notice of exercise is received by the Company.
SECTION 4. Termination of Employment.
(a) Unvested Options.
(i) General Rule. All unvested portions of an option granted to
a grantee shall terminate and no longer be exercisable upon
such grantee's termination of employment for any reason,
except to the extent that options may become exercisable
post-employment in accordance with Section 5.5 of the Plan
or may remain eligible for vesting pursuant to Section
4(a)(ii) of this Agreement.
(ii) Termination Before Performance Verified. Notwithstanding
Section 4(a)(i), if a grantee terminates employment after
the end of a Fiscal Year, but before the Fiscal Year Vesting
date, (if applicable), the portion of such grantee's option
that was eligible to vest upon
3
3
delivery of audited financial statements confirming that
performance targets were met for such Fiscal Year shall
remain outstanding and eligible for vesting until delivery
of such audited financial statements. Therefore, the
unvested portion of such option shall immediately terminate
and the treatment of the vested portion of the option shall
be governed by Section 4(b).
(b) Vested Options.
(i) Death and Disability. Unless otherwise provided herein, if a
grantee's employment with the Company and its subsidiaries
terminates by reason of death or Disability (as defined in a
grantee's employment agreement, if applicable, or if not
applicable, as defined in section 22(e)(3) of the Code), the
portion, if any, of the option granted to such grantee which
was exercisable immediately prior to such termination of
employment or which becomes exercisable thereafter in
accordance with Section 4(a)(ii) of this Agreement may be
exercised by such grantee or, as the case may be, by such
grantee's court-appointed legal representative or, in the
case of the grantee's death, by the person or persons to
whom such option passes under the grantee's will (or, if
applicable, pursuant to the laws of descent and
distribution) until the earlier of (x) the later of (1) one
year after the grantee's termination by reason of death or
Disability and (2) with respect to any portion of the option
that vests in accordance with Section 4(a)(ii) of this
Agreement, one year after the date of delivery of audited
financial statements and (y) the date on which such portion
of the option terminates or expires in accordance with the
provisions of the Plan and the other provisions of this
Stock Option Agreement.
(ii) Regular Termination; Leaves of Absence. Unless otherwise
provided herein, if the grantee's employment terminates for
reasons other than as provided in Section 4(b)(i), the
portion, if any, of the option granted to such grantee which
was exercisable immediately prior to such termination of
employment or which becomes exercisable thereafter in
accordance with Section 4(a)(ii) of this Agreement may be
exercised by such grantee until the earlier of (x) the later
of (1) 90 days after the grantee's date of termination and
(2) with respect to any portion of the Option that vests in
accordance with Section 4(a)(ii) of this Agreement, 90 days
after the date of delivery of audited financial statements,
and (y) the date on which such option
4
4
terminates or expires in accordance with the provisions of
the Plan and the other provisions of this Stock Option
Agreement. The Committee may in its discretion determine (A)
whether any leave of absence (including short-term or
long-term disability or medical leave) shall constitute a
termination of employment for purposes of the Plan and (B)
the impact, if any, of any such leave on outstanding options
under the Plan.
(c) Right of Discharge Reserved. Nothing in the Plan or this Stock
Option Agreement shall confer upon the grantee or any other person the right to
continue in the employment of the Company or any of its subsidiaries or affect
any right which the Company or any of its subsidiaries may have to terminate the
employment of the grantee or any other person.
SECTION 5. Withholding Tax Requirements. Shares of Stock deliverable to the
grantee upon exercise, pursuant to the terms of the Plan and this Stock Option
Agreement, shall be subject to income tax withholding as provided in Section 10
of the Plan. Subject to the Committee's consent (which shall not be unreasonably
withheld), a grantee may elect to satisfy all or part of such requirements by
delivery of unrestricted shares of Stock owned by the grantee as provided in
Section 10.2 of the Plan.
SECTION 6. Agreement Provisions to Prevail. This Stock Option Agreement
shall be subject to all of the terms and provisions of the Plan, which are
incorporated hereby and made a part hereof, including, without limitation, the
provisions of Section 8 of the Plan (generally relating to consents required by
securities and other laws) and Section 11 of the Plan (generally relating to the
effects of certain reorganizations and other extraordinary transactions and
providing the Committee with the ability to adjust performance targets). In the
event there is any inconsistency between the provisions of this Stock Option
Agreement and the Plan, the provisions of this Stock Option Agreement shall
govern.
SECTION 7. Grantee's Acknowledgments. By entering into this Stock Option
Agreement, the grantee agrees and acknowledges that (a) he has received and read
a copy of the Plan, including Section 14.3 of the Plan (generally relating to
waivers of claims to continued exercisability of awards, damages and severance
entitlements related to non-continuation of awards), and accepts this option
upon all of the terms thereof, and (b) no member of the Committee shall be
liable for any action or determination made in good faith with respect to the
Plan or any award thereunder or under this Stock Option Agreement.
SECTION 8. Stockholder Restrictions.
(a) Restrictions on Transfer of Stock Acquired by Option Exercise.
(i) Limitation on Transfer. The grantee shall not sell, give,
assign, hypothecate, pledge, encumber, grant a security
5
5
interest in or otherwise dispose of (whether by operation of
law or otherwise) (each a "transfer") any Stock or any
right, title or interest therein or thereto, except in
accordance with the provisions of this Agreement. Any
attempt to transfer any Stock or any rights hereunder in
violation of the preceding sentence shall be null and void
ab initio.
(ii) Permitted Transfers. At any time after December 31, 2003,
the grantee may, subject to this Section 8(a)(ii), Section
8(a)(iii) and Section 8(b), transfer all, but not less than
all, of the Stock owned by the grantee to any Person other
than a Person involved with the medical or employee staffing
industry other than through the Company (each a "Permitted
Transferee"); provided that the consideration for such
transfer shall consist solely of cash. No such transfer to a
Permitted Transferee shall be effective unless such
Permitted Transferee becomes a party to a separate agreement
setting forth substantially the same terms as this Section
8. No Permitted Transferee of Stock pursuant to this Section
8(a)(ii) shall thereafter re-transfer such Stock except in
accordance with this Section 8(a)(ii) and Section 8(a)(iii).
(iii) Permitted Transfer Procedures. The grantee shall give
notice to the Company and AMN Acquisition Corp., a Delaware
corporation ("AMN") of its intention to make any transfer
permitted under Section 8(a)(ii) not less than thirty (30)
calendar days prior to effecting such transfer, which notice
shall state the name and address of the party to whom such
transfer is proposed and the Stock proposed to be
transferred.
(b) Proposed Voluntary Transfers by the Grantee; Right of First
Refusal.
(i) Offering Notice. If after December 31, 2003 the grantee has
received a bona fide offer from a Person (the "Third Party
Purchaser") to pay for cash (a "Third Party Offer") all of
its Stock (the "Offered Stock") and the grantee desires to
accept the Third Party Offer, then the grantee (the "Selling
Stockholder") shall make an offer (the "Offer") to sell the
Offered Stock to AMN and the Company by sending written
notice (the "Offering Notice") to the Company and AMN, which
notice shall state (x) the number of shares of Offered Stock
and (y) all material terms and conditions of
6
6
such proposed sale (including the proposed purchase price
per share of Stock).
(ii) Offer Price. Upon receipt of the Offering Notice, AMN or its
designee and the Company (to the extent that AMN or its
designee does not exercise its right of first refusal for
the Offered Stock) shall have the right, but not the
obligation, to purchase collectively all, but not less than
all, of the Offered Stock. If the Offer is accepted by AMN's
designee, AMN shall remain responsible for such designee's
performance hereunder. The right of first refusal shall be
exercisable with respect to the Offered Stock (i) by AMN or
its designee and (ii) by the Company, to the extent that AMN
or its designee does not exercise its right of first refusal
for all of the Offered Stock, by written notice to the
Selling Stockholder (with a copy to the Company) within
twenty (20) calendar days (in the case of AMN) and within
thirty (30) calendar days (in the case of the Company) of
receipt of the Offering Notice. Failure by AMN or the
Company to respond within the applicable Notice Period shall
be regarded as a rejection of the Offer.
(iii) Sell Option. If all of the Offered Stock has not been
acquired by AMN or its designee or the Company, the Selling
Stockholder(s) shall have the right to sell such Stock to
the Third Party Offeror on the terms and conditions of the
Third Party Offer; provided, that any such sale must be
consummated within 45 calendar days of the date of the
Offering Notice; provided however, that if compliance with
the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 is
necessary to consummate such sale, the 45-day period may be
extended to the end of the waiting period thereunder (but in
no event to more than 75 calendar days after the date of the
Offering Notice). In the event that such sale is not
consummated within such 45-day period (as extended if
applicable) for any reason, then the restrictions provided
for herein shall again become effective, and no transfer of
such Offered Stock may be made thereafter by such Selling
Stockholder(s) without again complying with this Section
8(b)(iii).
(c) Drag-Along Right.
(i) Sale of the Company. In the event AMN (the "Initiating
Seller") proposes to sell any of its Stock in one or more
related transactions, including without limitation, a merger
or consolidation (a "Drag-Along Sale") to a bona fide third
7
7
party purchaser (the "Proposed Transferee") on an arm's
length basis, the Initiating Seller shall have the right
(the "Drag-Along Right") to require the grantee (the
"Drag-Along Seller") to sell, and the Drag-Along Seller
hereby agrees to sell, to the Proposed Transferee:
(1) Until AMN has sold (or will have sold as a result of
such sale (assuming no tag-along rights are exercised on such sale)) Stock to a
third party in an amount equal to at least 75 percent (75%) of the Stock owned
by AMN as of the date hereof (the "Threshold Event"), that number of shares of
Stock (but not less than such number of shares of Stock) which is equal to the
product of (x) the number of Shares held by the grantee and (y) a fraction (A)
the numerator of which is the number of outstanding shares of Stock proposed to
be sold by the Initiating Seller and (B) the denominator of which is the number
of shares of Stock owned by the Initiating Seller; and
(2) from and after the Threshold Event, all, but not less
than all, of its Stock (such amount referred to in clause (1) or (2), as the
case may be, for the grantee being herein referred to as the "Drag-Along
Amount").
(ii) Sale Notice. The Initiating Seller shall notify the Company,
and the Company shall promptly notify the Drag-Along Seller
in writing of such proposed Transfer (the "Sale Notice").
The Sale Notice shall set forth (a) the name and address of
the Proposed Transferee and (b) a copy of the written
proposal pursuant to which the Drag-Along Sale will be
effected, containing all of the material terms and
conditions thereof, including (1) the number of shares of
Stock (calculated on a fully diluted, as converted basis)
proposed to be transferred by the Initiating Seller, (2) the
applicable Drag-Along Amount, (3) the price per share of
Stock to be paid, (4) the terms and conditions of payment
offered by the Proposed Transferee, (5) whether the
Initiating Seller has determined to exercise the Drag-Along
Right, (6) in the event the Initiating Seller has determined
to exercise the Drag-Along Right, that the Proposed
Transferee has been informed of the Drag-Along Right
provided for in this Section 8(c) and has agreed to purchase
the applicable Drag-Along Amount in accordance with the
terms hereof and (7) the date and location of and procedures
for selling Stock to the Proposed Transferee.
(iii) Purchase of Drag-Along Amount. The Stock purchased from the
Drag-Along Seller by the Proposed Transferee pursuant to
this Section 8(c) shall be paid for at the same price per
share and upon terms and conditions no less
8
8
favorable than the terms and conditions applicable to the
Stock to be sold by the Initiating Seller.
(d) Stock Certificate Legend; Recording of Transfer. A copy of this
Agreement shall be filed with the Secretary of the Company and kept with the
records of the Company. Each certificate representing Stock now held or
hereafter acquired by the grantee shall, at the option of the Company, for as
long as this Section 8 is effective, bear a legend as follows:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE
SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
HEREOF THAT SUCH REGISTRATION IS NOT REQUIRED AS TO SUCH SALE OR
OFFER.
THE TRANSFER AND PLEDGE OF ANY OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED BY THE TERMS OF THIS STOCK OPTION
AGREEMENT, DATED AS OF NOVEMBER 20, 2000, AMONG THE COMPANY AND THE
GRANTEE, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY'S PRINCIPAL
OFFICE.
(e) All Transfers in Compliance with Law and Subject to this Agreement.
Any transfer of Stock permitted or required by this Agreement must be in
compliance with the applicable provisions of this Agreement and with federal and
state securities laws, including, without limitation, the Securities Act.
(f) Specific Performance. The parties hereto intend that each of the
parties have the right to seek damages and/or specific performance in the event
that any other party hereto fails to perform such party's obligations hereunder.
Therefore, if any party shall institute any action or proceeding to enforce the
provisions hereof, any party against whom such action or proceeding is brought
hereby waives any claim or defense therein that the plaintiff party has an
adequate remedy at law.
(g) Definitions. For purposes hereof, the following terms shall have
the meanings set forth below:
9
9
"Person" means any individual, corporation, partnership,
limited liability company, firm, joint venture, association, joint stock
company, trust, unincorporated organization, governmental body or other entity.
"Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.
"Stock" means, with respect to each Stockholder, all shares,
whether now owned or hereafter acquired, of Common Stock owned by such
Stockholder.
(h) Term. This entire Section 8 shall terminate upon the closing of a
bona fide initial public offering of Common Stock of the Company.
SECTION 9. Nontransferability. No option granted to the grantee under the
Plan or this Stock Option Agreement shall be assignable or transferable by the
grantee (whether by operation of law or otherwise and whether voluntarily or
involuntarily), other than by will or by the laws of descent and distribution.
During the lifetime of the grantee, all rights granted to the grantee under the
Plan or under this Stock Option Agreement shall be exercisable only by the
grantee or the grantee's court appointed legal representative. Notwithstanding
the foregoing, with the Committee's consent, the option may be transferred to
one or more members of the grantee's immediate family or trusts all of the
beneficiaries (other than contingent beneficiaries) of which are members of the
grantee's immediate family.
SECTION 10. Forfeiture for Non-Compete Violation.
(a) Non-Compete. The grantee agrees that during the term of grantee's
employment and for a period of two years thereafter (the "Coverage Period"), the
grantee will not engage in, consult with, participate in, hold a position as
shareholder, director, officer, consultant, employee, partner or investor, or
otherwise assist any business entity (i) in any State of the United States of
America or (ii) in any other country in which the Company has business
activities, in either case, that is engaged in any activities which are
competitive with the business of providing healthcare or other personnel on a
temporary basis to hospitals, healthcare facilities or other entities and any
and all business activities reasonably related thereto in which the Company or
any of its divisions, affiliates or subsidiaries are then engaged.
(b) Non-Solicit. The grantee agrees that during the Coverage Period, he
shall not solicit, attempt to solicit or endeavor to entice away from the
Company any person who, at any time during the Term was a traveling nurse or
other healthcare professional, employee, customer, client or supplier of the
Company.
(c) Confidential and Proprietary Information. The grantee agrees that
he will not, at any time make use of or divulge to any other person, firm or
corporation any confidential or proprietary information concerning the business
or policies of the Company or any of its divisions, affiliates or subsidiaries.
For purposes of this
10
10
Agreement, any confidential information shall constitute any information
designated as confidential or proprietary by the Company or otherwise known by
the grantee to be confidential or proprietary information including, without
limitation, customer information. Grantee acknowledges and agrees that for
purposes of this Agreement, "customer information" includes without limitation,
customer lists, all lists of professional personnel, names, addresses, phone
numbers, contact persons, preferences, pricing arrangements, requirements and
practices. Grantee's obligation under this Section 10(c) shall not apply to any
information which (i) is known publicly; (ii) is in the public domain or
hereafter enters the public domain without the fault of grantee; or (iii) is
hereafter disclosed to grantee by a third party not under an obligation of
confidence to the Company. Grantee agrees not to remove from the premises of the
Company, except as an employee of the Company in pursuit of the business of the
Company or except as specifically permitted in writing by the Company, any
document or other object containing or reflecting any such confidential or
proprietary information. Grantee recognizes that all such information, whether
developed by the grantee or by someone else, will be the sole exclusive property
of the Company. Upon termination of employment, grantee shall forthwith deliver
to the Company all such confidential or proprietary information, including
without limitation all lists of customers, pricing methods, financial
structures, correspondence, accounts, records and any other documents, computer
disks, computer programs, software, laptops, modems or property made or held by
him or under his control in relation to the business or affairs of the Company
or any of its divisions, subsidiaries or affiliates, and no copy of any such
confidential or proprietary information shall be retained by him.
(d) Forfeiture for Violations. If the grantee shall at any time violate
the provisions of section 10(a), (b), or (c), the grantee shall immediately
forfeit all options (whether vested or unvested) and any exercise of an option
which occurs after (or within 6 months before) any such violation shall be void
ab initio.
SECTION 11. Execution of Agreement. Notwithstanding anything contained in
this Stock Option Agreement to the contrary, no option may be exercised until
the grantee has returned an executed copy of this Stock Option Agreement to the
Company.
SECTION 12. Notices. Any notice to be given to the Company hereunder shall
be in writing and shall be addressed to 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx
Xxxxx, Xxxxxxxxxx 00000 or at such other address as the Company may hereafter
designate to the grantee by notice as provided herein. Any notice to be given to
the grantee hereunder shall be addressed to the grantee at the address set forth
below or at such other address as the grantee may hereafter designate to the
Company by notice as provided herein. Notices hereunder shall be deemed to have
been duly given when received by personal delivery or by registered or certified
mail to the party entitled to receive the same.
SECTION 13. Reorganization Event. The option awarded hereunder may be
subject, in the Committee's discretion, to termination on account of a
Reorganization Event affecting the Company, as described in Section 17 of the
Plan.
11
11
SECTION 14. Successors and Assigns. This Stock Option Agreement shall be
binding upon and inure to the benefit of the parties hereto and the successors
and assigns of the Company and, to the extent set forth in the Plan, the heirs
and personal representatives of the grantee.
SECTION 15. Governing Law. This Agreement shall be governed by the laws of
the State of Delaware applicable to agreements made and to be performed entirely
within such State.
SECTION 16. Modifications to Agreement. This Agreement may not be altered,
modified, changed or discharged, except by a writing signed by or on behalf of
both the Company and the grantee.
IN WITNESS WHEREOF, the parties hereto have executed this Stock Option
Agreement as of the date and year first above written.
AMN HOLDINGS, INC.
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------------
Title:
/s/ Xxxxx X. Xxxxxxxxxx
------------------------------------
Grantee
X.X. Xxx 0000
Xxxxxx Xxxxx Xx, XX 00000
------------------------------------
(Address)
