MANAS PETROLEUM CORPORATION NON-QUALIFIED STOCK OPTION AGREEMENT
XXXXX
PETROLEUM CORPORATION
2007
OMNIBUS PLAN
NON-QUALIFIED
STOCK OPTION AGREEMENT
THIS
AGREEMENT is made and entered into as of __________ ___, 200_, between
grantor Xxxxx Petroleum Corporation, a Nevada corporation (formerly known as
Express Systems Corporation) (the "Corporation"), DWM Petroleum AG, a Swiss
corporation and wholly-owned subsidiary of the Corporation ("DWM Petroleum”),
and grantee, ____________________ (the "Consultant").
WITNESSETH:
WHEREAS,
Consultant is a valued advisor of the Corporation or a subsidiary of the
Corporation (the “Subsidiary”);
WHEREAS,
the Corporation considers it desirable and in its best interest and the best
interest of the Subsidiary, that the Consultant be provided an inducement to
acquire an ownership interest in the Corporation and an additional incentive
to
advance the interest of the Corporation and Subsidiary through the grant of
an
option to purchase shares of the common stock of the Corporation pursuant to
the
Corporation’s 2007 Omnibus Plan (the “Plan”); and
WHEREAS,
the Omnibus Committee of the Board of Directors of the Corporation (the
"Compensation Committee") on ___________ ___, 200_, (the “Grant Date”) upon the
request of Xxxxx Petroleum, approved the grant to Consultant of awards under
the
Plan and established the terms and conditions of such awards, as contained
in
this Agreement.
NOW,
THEREFORE, the parties hereto agree as follows:
1.
GRANT
OF OPTION. Consultant shall have the right and option to purchase on the terms
and conditions set forth herein and in the Plan, all or any part of an aggregate
of ___________ shares ("Option Shares") of the $0.001 par value common stock
of
the Corporation (the "Common Stock") at the purchase price of $__ per share
(the
"Option Price"). The Option Price is 100% of the fair market value of the Common
Stock on the Grant Date.
2.
TERMS
AND CONDITIONS. It is understood and agreed that the option evidenced hereby
is
subject to the following terms and conditions:
(a)
Expiration Date. The option shall expire on the tenth anniversary of the Grant
Date, unless earlier terminated as provided herein or under the Plan (the
"Expiration Date"). After the Expiration Date, Consultant shall have no further
rights to exercise any option granted hereunder. Nothing contained in this
Agreement, including without limitation no part of this Section 2 or Section
8,
shall extend the time period during which the option can be exercised beyond
the
Expiration Date.
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(b)
Exercise of Option. The option covered by this Agreement may
be
exercised by Consultant from time to time, in whole or in part, up to the
amount
set forth in the following schedule during the period beginning on the
date
indicated below and ending on the Expiration Date:
Cumulative
Number of
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On
or after
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Options
Exercisable
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____________________
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_______________________
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Vesting
strategy: 1/12 per quarter
Notwithstanding
the foregoing, upon the occurrence of a Change in Control (as defined in the
Plan) of the Corporation, all options that have not been previously exercised
and have not previously expired shall, as of such Change of Control, become
fully and immediately vested and exercisable and may be exercised for the
remaining term of such option.
(c)
Method of Exercise and Payment of Purchase Price Upon Exercise.
The method of exercise of the option shall be by giving written notice to the
Corporation. Payments shall be made at the time of exercise and shall be in
cash
or in shares of Common Stock. In the event payment is made in shares of Common
Stock, such shares shall be valued at their fair market value on the date of
exercise. Such fair market value shall be determined as provided for in the
Plan, including the provisions of Section 10 of the Plan. Consultant
acknowledges that (i) if no public market exists for the Common Stock on any
date on which the fair market value is to be determined, the Compensation
Committee shall, in its sole discretion and best judgment, determine the fair
market value of a share, and (ii) any such determination by the Compensation
Committee of the fair market value of a share shall be conclusive. The option
is
not exercised until both the written notice and the payment for the shares
exercised are actually received by the Corporation.
(d)
Exercise Upon Death. In the event that Consultant ceases to be employed by
Corporation or its subsidiaries by reason of death, the option shall become
immediately exercisable, notwithstanding the schedule in Section 2(b) hereof,
and may thereafter be exercised as to all shares subject to the option by the
legal representative of the estate, by the person or persons entitled to the
option under the Consultant's will or the laws of descent and distribution,
as
appropriate, until the earlier of (i) the third anniversary of the date of
Consultant’s death and (ii) the Expiration Date.
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(e)
Exercise Upon Termination of Employment While Disabled. In the event that
Consultant ceases to be employed by the Corporation or its subsidiaries while
Disabled, as defined below, except for Cause, as defined in Section 8, the
option shall become immediately exercisable, notwithstanding the schedule in
Section 2(b) hereof, and may thereafter be exercised as to all shares subject
to
the option until the earlier of (i) the first anniversary of the date of
Consultant’s termination of employment and (ii) the Expiration Date; provided
however that if Consultant dies prior to the expiration of his options as
provided for in the preceding clauses (i) and (ii), his option may thereafter
be
exercised as to all shares subject to the option by the legal representative
of
the estate, by the person or persons entitled to the option under the
Consultant's will or the laws of descent and distribution, as appropriate,
until
the earlier of (x) the third anniversary of the date of Consultant’s termination
of employment and (y) the Expiration Date. As an express condition to the
applicability of this Section 2(e), Consultant agrees to cooperate with the
Corporation in determining whether Consultant is Disabled, including without
limitation providing documentation from health care providers and submitting
to
medical examinations upon request by the Corporation. For purposes of this
Agreement, Consultant shall be considered to be Disabled if Consultant is
totally and permanently disabled according to the standards contained in the
Corporation's long-term disability plan, as applied by the Corporation, or
according to such other reasonable standard that the Corporation may apply,
in
its sole discretion.
(f)
Exercise Upon Normal or Early Retirement. In the event that Consultant ceases
to
be employed by the Corporation or its subsidiaries by reason of Normal
Retirement or Early Retirement (as defined below), the option shall become
immediately exercisable, notwithstanding the schedule in Section 2(b) hereof,
and may thereafter be exercised as to all shares subject to the option until
the
earlier of (i) the first anniversary of the date of Consultant’s termination of
employment and (ii) the Expiration Date; provided however that if Consultant
dies prior to the expiration of his options as provided for in the preceding
clauses (i) and (ii), his option may thereafter be exercised as to all shares
subject to the option by the legal representative of the estate, by the person
or persons entitled to the option under the Consultant's will or the laws of
descent and distribution, as appropriate, until the earlier of (x) the third
anniversary of the date of Consultant’s termination of employment and (y) the
Expiration Date. For the purposes of this section 2(f) "Early Retirement" shall
mean the Consultant's retirement on a date prior to the Consultant's
65th
birthday
and "Normal Retirement" shall mean the Consultant's retirement on or following
the Consultant's 65th
birthday.
(g)
Exercise Upon Termination of Employment by Reason Other than Death, Disability,
or Retirement. Except as provided in Section 2(d), Section 2(e) and Section
2(f), in the event that Consultant ceases to be employed by the Corporation
or
its subsidiaries for any reason, the option or any unexercised portions thereof
shall expire upon termination of Consultant's employment with the Corporation
or
its subsidiaries; provided that if the Consultant’s termination is other than
for Cause, Consultant’s option, to the extent then exercisable, may thereafter
be exercised as to such then exercisable options until the earlier of (i) the
three month anniversary of the date of Consultant’s termination of employment
and (ii) the Expiration Date; provided however that if Consultant dies prior
to
the expiration of his exercisable options as provided for in the preceding
clauses (i) and (ii), his option may thereafter be exercised as to all shares
subject to the option by the legal representative of the estate, by the person
or persons entitled to the option under the Consultant's will or the laws of
descent and distribution, as appropriate, until the earlier of (x) the third
anniversary of the date of Consultant’s termination of employment and (y) the
Expiration Date. The exercise of the option after termination of employment
may
cause the option to become a non-qualified stock option.
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3.
NON-QUALIFIED STOCK OPTION. This option is intended to be a non-qualified stock
option for all of the shares subject to the option hereunder that shall be
governed by the provisions of the Plan relating to non-qualified stock options.
It is not intended to be an incentive stock option within the meaning of Section
422(b) of the Internal Revenue Code of 1986, as amended (the "Code").
4.
NO
RIGHTS AS SHAREHOLDER. No option granted hereunder shall entitle the holder
thereof to any rights as a shareholder in the Corporation with respect to any
shares to which the option relates until such option has been exercised properly
and paid for in full and stock certificates for the corresponding shares have
been so issued and delivered. Except as may be provided for in the Plan, no
adjustment will be made for dividends or other rights for which the record
date
is prior to the date such stock certificates are issued.
5.
RESTRICTIONS ON TRANSFER OF SHARES. Consultant hereby agrees for himself or
herself and his or her legal representative, heirs and distributees, that if
a
registration statement covering the shares issuable upon exercise of any option
hereunder is not effective under the Securities Act of 1933, as amended (the
"Act"), at the time of such exercise, or if some other exemption from the
provisions of the Act is not available, then all shares of Common Stock then
received or purchased upon such exercise shall be acquired for investment,
and
that the notice of exercise delivered to the Corporation shall be
accompanied by a representation in writing acceptable in scope and form to
counsel to the Corporation and signed by Consultant or Consultant's legal
representative, heirs or distributees, as the case may be, to the effect that
the shares are being acquired in good faith for investment and not with a view
to distribution thereof. Any shares so acquired may be deemed restricted
securities under Rule 144 as promulgated by the Securities and Exchange
Commission under the Act, and as the same may be amended or replaced and
subject
to restrictions upon sale or other disposition and may bear any required legend,
or other legend deemed appropriate by the Corporation, to that effect.
6.
REGISTRATION OF SHARES. If at any time the Board of Directors of the Corporation
or the Compensation Committee shall determine that the listing, registration
or
qualification of any shares subject to the option upon any securities exchange,
or under any state or federal law, or the consent or approval of any
governmental or regulatory body is necessary or desirable as a condition of
or
in connection with the issuance or purchase of shares hereunder, the option
may
not be exercised in whole or in part unless such listing, registration,
qualification, consent, or approval has been effected or obtained free of any
conditions not acceptable to the Board of Directors or to the Compensation
Committee.
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7.
TRANSFER OF RIGHTS. This option is not transferable except by will or by the
laws of descent and distribution and shall be exercisable during Consultant's
lifetime only by Consultant. After the death of Consultant, this option may
be
exercised only by Consultant's estate or by the person or persons entitled
to
the option under Consultant's will or the laws of descent and distribution,
as
appropriate. In the event the option is transferred by reason of the
Consultant's death, the option may be exercised thereafter only to the extent
that the Consultant would have been entitled to exercise the option had the
option not been transferred.
8.
COVENANTS. In consideration of the Corporation, DWM Petroleum, or one or more
of
the subsidiaries or affiliates of either (hereinafter collectively referred
to
as the “Xxxxx Petroleum Group”) disclosing confidential and proprietary
information, as more fully described below, after the date hereof, the grant
by
the Corporation of the option, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Consultant, the
Corporation and DWM Petroleum, intending to be legally bound, hereby agree
as
follows:
(a)
Consultant specifically recognizes and affirms that each of the covenants
contained in the “Covered Provisions” (as defined below) is a material and
important term of this Agreement which has induced the Corporation to provide
for the award of the option granted hereunder, the disclosure of confidential
information referenced herein, and the other promises made by the Corporation
herein, and Consultant further agrees that should all or any part or application
of the Covered Provisions be held or found invalid or unenforceable for any
reason whatsoever by a court of competent jurisdiction in an action between
Consultant and the Corporation, or any member of the Xxxxx Petroleum Group,
the
Corporation shall be entitled to receive (but not obligated to acquire) from
Consultant all Common Stock held by Consultant which was obtained by Consultant
under this Agreement (including all shares obtained by virtue of any stock
dividend or distribution, recapitalization, merger, consolidation, split-up,
combination, exchange of shares, or other transaction, hereinafter "stock
dividends") by returning to Consultant
for each share received the Option Price paid by Consultant (as adjusted for
stock dividends). If Consultant has sold, transferred, or otherwise disposed
of
Common Stock obtained under this Agreement (including all shares obtained by
virtue of any stock dividend), the Corporation shall be entitled to receive
from
Consultant the difference between the Option Price paid by Consultant and the
fair market value of the Common Stock (including all shares obtained by virtue
of any stock dividends) on the date of sale, transfer, or other
disposition.
(b)
For
purposes of this Agreement, the “Covered Provisions” shall mean those covenants
relating to the Consultant’s agreement to (i) not disclose and/or use
confidential or proprietary information of any member of the Xxxxx Petroleum
Group, (ii) not compete against any member of the Xxxxx Petroleum Group, or
(iii) not solicit customers, vendors or Consultants of any member of the Xxxxx
Petroleum Group which covenants are contained in any employment agreement,
confidentiality or non-disclosure agreement or non-competition agreement between
Consultant, on the one hand, and one or more members of the Xxxxx Petroleum
Group on the other hand.
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(c)
For
purposes of this Agreement, "Cause" shall mean (i) commission of a felony or
a
crime involving moral turpitude, that is materially and demonstrably
injurious
to the Corporation, or (ii) deliberate, willful or gross misconduct and, in
any
event, the determination of the Compensation Committee or the Board of Directors
of the Corporation with respect thereto shall be final and conclusive.
Notwithstanding the foregoing, in the event the Consultant is a party to an
employment agreement with the Corporation or any subsidiary of the Corporation
that contains a definition of “cause,” such definition shall apply to the
Consultant for purposes of this Agreement.
9.
PLAN
TO CONTROL. The Plan is incorporated in this Agreement by this reference. Any
question of interpretation or application of the Plan or this Agreement shall
be
resolved by the Compensation Committee and its determination shall be final
and
binding on the Corporation and Consultant. In the event of any conflict between
the provisions of the Plan and of this Agreement, the Plan shall control.
Consultant hereby acknowledges that a copy of the Plan has been made available
to Consultant and Consultant agrees to be bound by all the terms and provisions
thereof.
10.
EMPLOYMENT. This Agreement shall not obligate the Corporation or any of its
subsidiaries to employ Consultant for any period, nor shall it interfere in
any
way with the right of the Corporation or one of its subsidiaries to reduce
Consultant’s compensation.
11.
WITHHOLDING TAX. Where the Consultant or another person is entitled to receive
the Option Shares pursuant to the exercise of this option, the Corporation
shall
have the right to require the Consultant or such other person to pay to the
Corporation the amount of any taxes which the Corporation or any of its
affiliates is required to withhold with respect to the Option Shares, or in
lieu
thereof, to retain, or sell without notice, a sufficient number of the Option
Shares to cover the amount required to be withheld, or, in lieu of any of the
foregoing, to withhold a sufficient sum from the Consultant’s compensation
payable by the Corporation to satisfy the Corporation’s tax withholding
requirements.
12.
NOTICES. All notices hereunder shall be in writing and, if to the Corporation,
shall be delivered personally to the Corporate Secretary or mailed to the
Corporation's principal office at Xxxxxxxxxxxxxx 0, X.X. Xxx 000, XX-0000 Xxxx,
Xxxxxxxxxxx addressed to the attention of the Corporate Secretary; and if to
Consultant, shall be delivered personally or mailed to him at the address noted
below. Such addresses may be changed at any time by notice from one party to
the
other.
13.
BINDING EFFECT. This Agreement shall bind and inure to the benefit of the
parties hereto, the successors and assigns of the Corporation and the person
to
whom the rights of Consultant are transferred by will or the laws of descent
and
distribution.
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14.
HEADINGS. The section headings used herein are solely for reference only and
shall not affect in any way the meaning and interpretation of the terms and
conditions set forth herein.
15.
GOVERNING LAW. This Agreement and all related matters shall be governed by,
and
construed and enforced in accordance with, the laws of the State of Nevada,
United States of America, from time to time obtaining, without giving effect
to
conflict of law principles thereof. For purposes of litigating any dispute
that
arises under this Agreement, the parties hereby consent to exclusive
jurisdiction in British Columbia, Canada and agree that such litigation shall
be
conducted in the courts of British Columbia, Canada.
16.
SEVERABILITY. The provisions of this Agreement are severable and if any one
or
more provisions may be determined to be illegal or otherwise unenforceable,
in
whole or in part, the remaining provisions, and any partially unenforceable
provision to the extent enforceable in any jurisdiction, shall nevertheless
be
binding and enforceable.
17.
WAIVER. The waiver by the Corporation of a breach of any provision of this
Agreement by Consultant shall not operate or be construed as a waiver of any
subsequent breach by Consultant.
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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the
date first above written.
XXXXX
PETROLEUM CORPORATION
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By:_________________________________
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Name:
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Title:
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DWM
PETROLEUM AG
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By:
________________________________
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Name:
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Title:
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CONSULTANT:
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_________________________________
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Signature
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Date:_____________________________
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_________________________________
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Printed
Name
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_________________________________
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Address
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_________________________________
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City
State Zip
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