Exhibit 4.7
GREATER CHINA CORPORATION
a Delaware corporation
NON-QUALIFIED STOCK OPTION AGREEMENT
Xxxxxx X. Xxxx October 14, 1996
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Name of Optionee Date Option Granted
0 Xxxxxxxx Xxxx
Xxxxxxxxxx, Xxx Xxxx 00000
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Residence Address No. 006
This Agreement ("Agreement") is made as of the date set forth above between
Greater China Corporation, a Delaware corporation (hereinafter the "Company"),
and the optionee named above (hereinafter "Optionee"). The option granted by
this Agreement is designated a "Non-Qualified Option" granted pursuant to the
Greater China Corporation 1996 Consultants Stock Option Plan dated September 4,
1996 (the "Plan").
1. GRANT OF OPTION. Pursuant to and subject to the terms and conditions
of the Agreement, the Company grants to the Optionee, a consultant to the
Company, the right and option (the "Option") to purchase at $0.75 per share on
the terms and conditions hereinafter set forth all or any part of an aggregate
of 5,500 shares (the "Shares") of the currently authorized and unissued Common
Stock, par value $0.02 per share. The Option shall be exercisable, in whole or
in part, during the period commencing with the date on which it is granted and
ending on December 31, 1996.
Nothing contained herein shall be construed to limit or restrict the right
of the Company or a parent or subsidiary corporation of the Company to terminate
the Optionee's services for the Company.
2. METHOD OF EXERCISE. The Option may be exercised pursuant thereto by
written notice to the Company stating the number of shares with respect to which
the Option is being exercised, together with payment in full, by cancellation of
indebtedness for services rendered to the Company, of the purchase price for the
number of Shares being purchased. Optionee hereby acknowledges that, as of the
date this Agreement, the aggregate exercise price for the Options reflects the
full amount owing by the Company for services rendered or otherwise, and that
these Options represent satisfaction in full of all amounts owing by the Company
to Optionee. If requested by the Board of Directors, prior to the delivery of
any Shares, the Optionee shall supply the Board of Directors with a
representation that the Shares are not being acquired with a view to
distribution and will be sold or otherwise disposed of only in accordance with
applicable federal and state statutes, rules and regulations.
As soon after the notice of exercise as the Company is reasonably able to
comply, the Company shall, without payment of any transfer or issue tax by the
Optionee, deliver to the Optionee or any such other person, at the main office
of the Company or such other place as shall be mutually acceptable, a
certificate or certificates for the Shares being purchased upon exercise of the
Option. Notwithstanding the foregoing, the Company shall have the right to
postpone the time of delivery of the Shares for such period as may be required
for it with reasonable diligence to comply with any applicable listing
requirements of any national securities exchange or any federal, state or local
law. The Optionee may exercise the Option for less than the total number of
Shares for which the Option is then exercisable, provided that a partial
exercise may not be for fewer than 100 Shares, unless the remaining shares
exercisable under the Option is for less than 100 Shares. The Option may be
exercisable for whole Shares only.
3. TERMINATION OF OPTION. The Option shall terminate and expire
immediately and in total upon the earlier of:
(a) The Expiration Date of the Option as specified in Section 1 of
this Agreement; or
(b) The date of termination of the Option pursuant to Section 5
hereof.
This Option shall survive and be exercisable notwithstanding that Optionee shall
(i) terminate its relationship with the Company, (ii) cease to provide services
to the Company or (iii) otherwise be subject to the provisions of Sections 7(a)-
(d) of the Plan, and shall terminate only as provided in Sections 3(a) or (b) of
this Agreement.
4. ADJUSTMENTS. If there is any change in the capitalization of the
Company affecting in any manner the number or kind of outstanding shares of
Common Stock of the Company, whether by stock dividend, stock split,
reclassification or recapitalization of such stock, or because the Company has
merged or consolidated with one or more other corporations (and provided the
Option does not thereby terminate pursuant to Section 5 hereof), then the number
and kind of shares then subject to the Option and the price to be paid therefor
shall be appropriately adjusted by the Board of Directors; PROVIDED, HOWEVER,
that in no event shall any such adjustment result in the Company's being
required to sell or issue any fractional shares. Any such adjustment shall be
made without change in the aggregate purchase price applicable to the
unexercised portion of the Option, but with an appropriate adjustment to the
price of each Share or other unit of security covered by this Option.
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5. CESSATION OF CORPORATE EXISTENCE. Notwithstanding any other provision
of this Option, upon the dissolution or liquidation of the Company, the
reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation,
or the sale of substantially all the assets of the Company or of more than 50%
of the then outstanding stock of the Company to another corporation or other
entity, the Option granted hereunder shall terminate; provided, however, that:
(i) each Option for which no option has been tendered by the surviving
corporation in accordance with all of the terms of provision (ii) immediately
below shall, within five days before the effective date of such dissolution or
liquidation, merger or consolidation or sale of assets in which the Company is
not the surviving corporation or sale of stock, become fully exercisable; or
(ii) in its sole and absolute discretion, the surviving corporation may, but
shall not be so obligated to, tender to any Optionee, an option to purchase
shares of the surviving corporation, and such new option or options shall
contain such terms and provisions as shall be required substantially to preserve
the rights and benefits of this Option.
6. NON-TRANSFERABILITY. The Option is not assignable or transferable by
the Optionee, either voluntarily or by operation of law, otherwise than by will
or by the laws of descent and distribution, and is exercisable, during the
Optionee's lifetime, only by the Optionee. Upon any attempted transfer of this
Option contrary to the provisions hereof, the Board of Directors may, at its
discretion, terminate this Option.
7. NO STOCKHOLDER RIGHTS. The Optionee or other person entitled to
exercise this Option shall have no rights or privileges as a stockholder with
respect to any Shares subject hereto until the Optionee or such person has
become the holder of record of such Shares, and no adjustment (except such
adjustment as may be effected pursuant to the provisions of Section 4 hereof)
shall be made for dividends or distributions of rights in respect of such Shares
if the record date is prior to the date on which the Optionee or such person
becomes the holder of record.
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8. METHOD OF ACCEPTANCE. This Agreement is addressed to the Optionee in
duplicate and shall not be effective until the Optionee has executed the
acceptance below and returned one copy to the Company, thereby acknowledging
that he has read and agreed to all the terms and conditions of this Agreement.
Executed by the Company as of this 14th day of October, 1996.
GREATER CHINA CORPORATION
a Delaware corporation
By: /s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
Chief Executive Officer
ACCEPTED:
("Optionee")
By: /s/ Xxxxxx X. Xxxx October 14, 1996
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Xxxxxx X. Xxxx Date
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