NONQUALIFIED STOCK OPTION AGREEMENT (For U.S. Participants)
Exhibit 99.1
NONQUALIFIED STOCK OPTION AGREEMENT
(For U.S. Participants)
AGREEMENT by and between AsiaInfo-Linkage, Inc. (the “Company”) and [ ] (the “Participant”), dated as of [ ] (the “Grant Date”).
WHEREAS, the Company maintains the AsiaInfo-Linkage, Inc. 2011 Stock Incentive Plan (the “Plan”);
WHEREAS, the Participant is an employee of the Company; and
WHEREAS, the Committee has determined that it is in the best interests of the Company and its stockholders to grant a stock option to the Participant, subject to the terms and conditions set forth below;
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1. | Grant of Option. |
The Company hereby grants to the Participant an option (the “Option”) to purchase [ ] shares of the Company’s Common Stock, subject to the following terms and conditions and subject to the provisions of the Plan. The Plan is hereby incorporated herein by reference as though set forth herein in its entirety. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed thereto by the Plan.
The Option is not intended to be and shall not be qualified as an “incentive stock option” under Section 422 of the Code.
2. | Exercise Price. |
The exercise price of the Option shall be US$[ ] per share.
3. | Exercisability of Option. |
Subject to paragraphs 6, 7, 8 and 9 below, the Option, to the extent that there has been no termination of the Participant’s Service and the Option has not otherwise expired or been forfeited, shall become exercisable at the times and in the cumulative installments set forth on the vesting schedule attached as Appendix A hereto and made a part hereof.
Upon the occurrence of any of the events set forth below, the Company may, in its sole discretion and by giving a notice to the Participant, forfeit up to 80% of the unvested portion of the Option as of the date of such notice and amend Appendix A hereto accordingly:
(a) the Participant is reassigned to a different position at the same level within the Company with lesser responsibilities;
(b) the Participant is demoted to a lower level position within the Company; or
(c) the Participant receives a level “D” classification or below in his/her performance review.
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4. | Method of Exercise. |
Exercise of the Option shall be by means of electronic or written notice (the “Exercise Notice”) in a form authorized by the Company. An electronic Exercise Notice must be digitally signed or authenticated by the Participant in such manner as required by the notice and transmitted to the Company or an authorized representative of the Company (including a third-party administrator designated by the Company). In the event that the Participant is not authorized or is unable to provide an electronic Exercise Notice, the Option shall be exercised by a written Exercise Notice addressed to the Company, which shall be signed by the Participant and delivered in person, by certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such other means as the Company may permit, to the Company, or an authorized representative of the Company (including a third-party administrator designated by the Company). Each Exercise Notice, whether electronic or written, must state the Participant’s election to exercise the Option, the number of whole shares of Common Stock for which the Option is being exercised and such other representations and agreements as to the Participant’s investment intent with respect to such shares as may be required pursuant to the provisions of this Agreement. Further, each Exercise Notice must be received by the Company prior to the termination of the Option as set forth in paragraph 8 and must be accompanied by full payment of the aggregate exercise price for the number of shares of Common Stock being purchased. The Option shall be deemed to be exercised upon receipt by the Company of such electronic or written Exercise Notice and the aggregate exercise price.
5. | Payment of Exercise Price. |
Payment of the aggregate exercise price for the number of shares of Common Stock for which the Option is being exercised shall be made in cash or by check or, if permitted by the Company, by means of one or more of the following:
(a) by tendering (either actually or, if and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by attestation) Common Stock already owned by the Participant for at least six months (or any shorter period necessary to avoid a charge to the Company’s earnings for financial reporting purposes) having a Fair Market Value on the day prior to the exercise date equal to the aggregate Option exercise price; or
(b) if and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, by delivery of irrevocable instructions, to (i) a brokerage firm designated by the Company to deliver promptly to the Company the aggregate amount of sale or loan proceeds to pay the Option exercise price and any withholding tax obligations that may arise in connection with the exercise and (ii) the Company to deliver the certificates for such purchased shares directly to such brokerage firm, all in accordance with the regulations of the United States Federal Reserve Board; or
(c) by means of a net exercise procedure pursuant to which (i) the Company will reduce the number of shares otherwise issuable to the Participant upon the exercise of the Option by the largest whole number of shares having a Fair Market Value that does not exceed the aggregate exercise price for the shares with respect to which the Option is exercised, and (ii) the Participant shall pay to the Company in cash or by check the remaining balance of such aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; or
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(d) by delivery of a promissory note pursuant to Section 16 of the Plan; or
(e) by such other consideration as the Plan Administrator may permit.
6. | Tax Withholding. |
(a) At the time the Option is exercised, in whole or in part, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax (including any social insurance) withholding obligations of the Company, if any, which arise in connection with the Option. The Company shall have no obligation to deliver shares of Common Stock until the tax withholding obligations of the Company have been satisfied by the Participant.
(b) The Company shall have the right, but not the obligation, to require the Participant to satisfy all or any portion of the Company’s tax withholding obligations upon exercise of the Option by deducting from the shares of Common Stock otherwise issuable to the Participant upon such exercise a number of whole shares having a fair market value, as determined by the Company as of the date of exercise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates.
7. | Exercisability Upon and After Termination of Participant. |
(a) If the Participant’s Service is terminated other than for Cause or by reason of death, Retirement or Disability, the Option to the extent vested in accordance with paragraph 3 on the date of termination, may be exercised during a period of three (3) months following such termination, or if earlier, until the expiration of the term of the Option as provided by paragraph 8 below; provided that, if the Participant should die within three (3) months following termination of Service, such termination being for a reason other than Cause, Disability or Retirement, but while the Option is exercisable, the Option, to the extent vested in accordance with paragraph 3 on the date of termination, may be exercised in the manner provided by the Plan until the earlier of (i) one year from the date of termination of the Participant’s Service or (ii) the date on which the term of the Option expires in accordance with paragraph 8 below.
(b) If the Participant’s Service terminates due to the death, Retirement or Disability of the Participant, the Option, to the extent vested in accordance with paragraph 3 on the date of termination, may be exercised until the earlier of (i) one year from the date of termination of the Participant’s Service, or (ii) the date on which the term of the Option expires in accordance with paragraph 8 below.
(c) If the Participant commences or continues service as a director or consultant of the Company or one of its Subsidiaries upon termination of employment, such continued service shall be treated as continued employment hereunder (and for purposes of the Plan), and the subsequent termination of service shall be treated as the applicable termination of employment for purposes of this Agreement.
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(d) Notwithstanding any other provision of this Agreement, if the Participant’s Service is terminated for Cause, the Option, to the extent then unexercised, shall thereupon cease to be exercisable and shall be forfeited forthwith.
(e) Notwithstanding any other provision of this Agreement, other than termination of Service for Cause, if the exercise of the Option within the applicable time periods set forth in this paragraph 7 is prevented by the provisions of paragraph 9 below, the Option shall remain exercisable until the later of (i) thirty (30) days after the date such exercise first would no longer be prevented by such provisions or (ii) the end of the applicable time period under this paragraph 7, but in no event later than the remaining term of the Option.
(f) Notwithstanding any other provision of this Agreement, no Option (or portion thereof) which had not become exercisable at the time of cessation of Service shall ever be or become exercisable. No provision of this paragraph 7 is intended to or shall permit the exercise of the Option to the extent the Option was not exercisable upon cessation of Service.
8. | Term. |
Unless earlier forfeited, the Option shall, notwithstanding any other provision of this Agreement, expire in its entirety upon the tenth (10th) anniversary of the Grant Date. The Option shall also expire and be forfeited at such earlier times and in such circumstances as otherwise provided hereunder or under the Plan.
9. | Restrictions on Exercise of Option and Issuance of Shares. |
The exercise of the Option and the issuance of shares of Common Stock upon exercise shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. The Option may not be exercised if the issuance of shares of Common Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Common Stock may then be listed. In addition, the Option may not be exercised unless (a) a registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (b) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. THE PARTICIPANT IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE PARTICIPANT MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Option shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of the Option, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.
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10. | Nontransferability of the Option. |
During the lifetime of the Participant, the Option shall be exercisable only by the Participant or the Participant’s guardian or legal representative. The Option shall not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. Following the death of the Participant, the Option, to the extent provided by paragraph 7, may be exercised by the Participant’s legal representative or by any person empowered to do so under the deceased Participant’s will or under the then applicable laws of descent and distribution.
11. | Miscellaneous. |
(a) THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE RELATING TO CONTRACTS ENTERED INTO AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE. The parties agree that any proceeding regarding any dispute arising out of the subject matter hereof shall be brought in the federal or state courts sitting in the State of Delaware, U.S.A., and the parties irrevocably waive any objection to such venue based on forum nonconveniens. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified except by a written agreement executed by the parties hereto or their respective successors and legal representatives. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
(b) The Committee may make such rules and regulations and establish such procedures for the administration of this Agreement as it deems appropriate. Without limiting the generality of the foregoing, the Committee may interpret this Agreement, with such interpretations to be conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law. In the event of any dispute or disagreement as to the interpretation of this Agreement or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to this Agreement, the decision of the Committee shall be final and binding upon all persons.
(c) Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by Company or a Subsidiary, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the address of such party set forth below or at such other address as such party may designate in writing from time to time to the other party.
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(i) The Plan documents, which may include but do not necessarily include: the Plan this Agreement, the Plan Prospectus (as defined below), and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically. In addition, if permitted by the Company, the Participant may deliver electronically the Exercise Notice called for by paragraph 4 to the Company or to such third party involved in administering the Plan as the Company may designate from time to time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.
(ii) The Participant acknowledges that the Participant has read paragraph 11(c)(i) of this Agreement and consents to the electronic delivery of the Plan documents and, if permitted by the Company, the delivery of the Exercise Notice, as described in paragraph 11(c)(i). The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing. The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails. Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails. The Participant may revoke his or her consent to the electronic delivery of documents described in paragraph 11(c)(i) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in paragraph 11(c)(i).
(d) The failure of the Participant or the Company to insist upon strict compliance with any provision of this Agreement or the Plan, or to assert any right the Participant or the Company, respectively, may have under this Agreement or the Plan, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement or the Plan.
(e) Nothing in this Agreement shall confer on the Participant any right to continue in the Service of the Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries and its stockholders to terminate the Participant’s Service at any time.
(f) This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.
Very truly yours, |
ASIAINFO-LINKAGE, INC. |
By |
Date |
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ACCEPTANCE AND ACKNOWLEDGMENT
I, a resident of (country), accept and agree to the terms of the Stock Option described in this Agreement and in the Plan, acknowledge receipt of a copy of this Agreement, the Plan and the applicable Plan Summary, and acknowledge that I have read them carefully and that I fully understand their contents.
Dated: |
AILK Staff Code: |
Taxpayer I.D. Number | Participant | |
Address: | ||
No.
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APPENDIX A
VESTING SCHEDULE
Date of Grant:
Vesting Commencement Date:
Exercise Price per Share:
Vesting Schedule:
Date of Installment |
Percent of Optioned Shares |
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