SYNUTRA INTERNATIONAL, INC. INCENTIVE STOCK OPTION AGREEMENT
EXHIBIT
10.16A
2008
STOCK INCENTIVE PLAN
THIS INCENTIVE STOCK OPTION
AGREEMENT (this “Option
Agreement”) dated _____________________ by and between Synutra
International, Inc., a Delaware corporation (the “Corporation”), and
___________________________ (the “Grantee”) evidences the
incentive stock option (the “Option”) granted by the
Corporation to the Grantee as to the number of shares of the Corporation’s
Common Stock first set forth below.
|
Number of Shares of Common
Stock:1
|
_______
|
Award Date: __________________
|
|
Exercise Price per
Share:1
|
$________
|
Expiration Date:1,2
_____________
|
|
Vesting1,2
[The Option
shall become vested as to 25% of the total number of shares of Common
Stock subject to the Option on the first anniversary of the Award
Date. The remaining 75% of the total number of shares of Common
Stock subject to the Option shall become vested in 36 substantially equal
monthly installments, with the first installment vesting on the last day
of the month following the month in which the first anniversary of the
Award Date occurs and an additional installment vesting on the last day of
each of the 35 months thereafter.]
|
||
The
Option is granted under the Synutra International, Inc. 2008 Stock Incentive
Plan (the “Plan”) and
subject to the Terms and Conditions of Incentive Stock Option (the “Terms”) attached to this
Option Agreement (incorporated herein by this reference) and to the
Plan. The Option has been granted to the Grantee in addition to, and
not in lieu of, any other form of compensation otherwise payable or to be paid
to the Grantee. The Option is intended as an incentive stock option
within the meaning of Section 422 of the Code (an “ISO”). Capitalized
terms are defined in the Plan if not defined herein. The parties
agree to the terms of the Option set forth herein. The Grantee
acknowledges receipt of a copy of the Terms, the Plan and the Prospectus for the
Plan.
|
“GRANTEE”
|
a
Delaware corporation
|
||
|
Signature
|
By: | ||
|
Print Name:
|
|||
|
Print
Name
|
|
Title:
|
2 Subject
to early termination under Section 4 of the Terms and Section 7.2 of the
Plan.
CONSENT
OF SPOUSE
In
consideration of the Corporation’s execution of this Option Agreement, the
undersigned spouse of the Grantee agrees to be bound by all of the terms and
provisions hereof and of the Plan.
|
Signature
of Spouse
|
Date
|
TERMS
AND CONDITIONS OF INCENTIVE STOCK OPTION
|
1.
|
Vesting; Limits on
Exercise.
|
The
Option shall vest and become exercisable in percentage installments of the
aggregate number of shares subject to the Option as set forth on the cover page
of this Option Agreement. The Option may be exercised only to the
extent the Option is vested and exercisable.
|
|
·
|
Cumulative
Exercisability. To the extent that the Option is vested
and exercisable, the Grantee has the right to exercise the Option (to the
extent not previously exercised), and such right shall continue, until the
expiration or earlier termination of the
Option.
|
|
|
·
|
No Fractional
Shares. Fractional share interests shall be disregarded,
but may be cumulated.
|
|
|
·
|
Minimum
Exercise. No fewer than 100 shares of Common Stock
(subject to adjustment under Section 7.1 of the Plan) may be purchased at
any one time, unless the number purchased is the total number at the time
exercisable under the Option.
|
|
|
·
|
ISO Value
Limit. If the aggregate fair market value of the shares
with respect to which ISOs (whether granted under the Option or otherwise)
first become exercisable by the Grantee in any calendar year exceeds
$100,000, as measured on the applicable Award Dates, the limitations of
Section 5.1.2 of the Plan shall apply and to such extent the Option will
be rendered a nonqualified stock
option.
|
|
2.
|
Continuance of
Employment/Service Required; No Employment/Service
Commitment.
|
The vesting schedule applicable to the
Option requires continued employment or service through each applicable vesting
date as a condition to the vesting of the applicable installment of the Option
and the rights and benefits under this Option Agreement. Employment
or service for only a portion of the vesting period, even if a substantial
portion, will not entitle the Grantee to any proportionate vesting or avoid or
mitigate a termination of rights and benefits upon or following a termination of
employment or services as provided in Section 4 below or under the
Plan.
Nothing contained in this Option
Agreement or the Plan constitutes a continued employment or service commitment
by the Corporation or any of its Subsidiaries, affects the Grantee’s status, if
he or she is an employee, as an employee at will who is subject to termination
without cause, confers upon the Grantee any right to remain employed by or in
service to the Corporation or any Subsidiary, interferes in any way with the
right of the Corporation or any Subsidiary at any time to terminate such
employment or service, or affects the right of the Corporation or any Subsidiary
to increase or decrease the Grantee’s other compensation.
|
3.
|
Method of Exercise of
Option.
|
The
Option shall be exercisable by the delivery to the Secretary of the Corporation
(or such other person as the Administrator may require pursuant to such
administrative exercise procedures as the Administrator may implement from time
to time) of:
|
|
·
|
a
written notice stating the number of shares of Common Stock to be
purchased pursuant to the Option or by the completion of such other
administrative exercise procedures as the Administrator may require from
time to time,
|
|
|
·
|
payment
in full for the Exercise Price of the shares to be purchased in cash,
check or by electronic funds transfer to the Corporation, or (subject to
compliance with all applicable laws, rules, regulations and listing
requirements and further subject to such rules as the Administrator may
adopt as to any non-cash payment) in shares of Common Stock already owned
by the Grantee, valued at their fair market value (as determined under the
Plan) on the exercise date;
|
|
|
·
|
any
written statements or agreements required pursuant to Section 8.1 of the
Plan; and
|
|
|
·
|
satisfaction
of the tax withholding provisions of Section 8.5 of the
Plan.
|
The
Administrator also may, but is not required to, authorize a non-cash payment
alternative by notice and third party payment in such manner as may be
authorized by the Administrator, or, subject to such procedures as the
Administrator may adopt, authorize a “cashless exercise” with a third party who
provides simultaneous financing for the purposes of (or who otherwise
facilitates) the exercise of the Option.
The
Option will qualify as an ISO only if it meets all of the applicable
requirements of the Code. The Option may be rendered a nonqualified
stock option if the Administrator permits the use of one or more of the non-cash
payment alternatives referenced above.
|
4.
|
Early
Termination of Option.
|
4.1 Expiration
Date. Subject to earlier termination as provided below in this
Section 4, the Option will terminate on the “Expiration Date” as set forth on
the cover page of this Option Agreement (the “Expiration
Date”).
4.2 Possible Termination of Option upon
Certain Corporate Events. The Option is subject to termination
in connection with certain corporate events as provided in Section 7.2 of the
Plan.
4.3 Termination of Option upon a
Termination of Grantee’s Employment or Services. Subject to
earlier termination on the Expiration Date of the Option or pursuant to Section
4.2 above, if the Grantee ceases to be employed by or ceases to provide services
to the Corporation or a Subsidiary, the following rules shall apply (the last
day that the Grantee is employed by or provides services to the Corporation or a
Subsidiary is referred to as the Grantee’s “Severance Date”):
|
|
·
|
other
than as expressly provided below in this Section 4.3, (a) the Grantee will
have until the date that is 3 months after his or her Severance Date to
exercise the Option (or portion thereof) to the extent that it was vested
on the Severance Date, (b) the Option, to the extent not vested on the
Severance Date, shall terminate on the Severance Date, and (c) the Option,
to the extent exercisable for the 3-month period following the Severance
Date and not exercised during such period, shall terminate at the close of
business on the last day of the 3-month
period;
|
|
|
·
|
if
the termination of the Grantee’s employment or services is the result of
the Grantee’s death or Total Disability (as defined below), (a) the
Grantee (or his beneficiary or personal representative, as the case may
be) will have until the date that is 12 months after the Grantee’s
Severance Date to exercise the Option (or portion thereof) to the extent
that it was vested on the Severance Date, (b) the Option, to the extent
not vested on the Severance Date, shall terminate on the Severance Date,
and (c) the Option, to the extent exercisable for the 12-month period
following the Severance Date and not exercised during such period, shall
terminate at the close of business on the last day of the 12-month
period;
|
|
|
·
|
if
the Grantee’s employment or services are terminated by the Corporation or
a Subsidiary for Cause (as defined below), the Option (whether vested or
not) shall terminate on the Severance
Date.
|
For
purposes of the Option, “Total
Disability” means a “permanent and total disability” (within the meaning
of Section 22(e)(3) of the Code or as otherwise determined by the
Administrator).
For
purposes of the Option, “Cause” means that the
Grantee:
|
|
(1)
|
has
been negligent in the discharge of his or her duties to the Corporation or
any of its Subsidiaries, has refused to perform stated or assigned duties
or is incompetent in or (other than by reason of a disability or analogous
condition) incapable of performing those
duties;
|
|
|
(2)
|
has
been dishonest or committed or engaged in an act of theft, embezzlement or
fraud, a breach of confidentiality, an unauthorized disclosure or use of
inside information, customer lists, trade secrets or other confidential
information; has breached a fiduciary duty, or willfully and materially
violated any other duty, law, rule, regulation or policy of the
Corporation, any of its Subsidiaries or any affiliate of the Corporation
or any of its Subsidiaries; or has been convicted of a felony or
misdemeanor (other than minor traffic violations or similar
offenses);
|
|
|
(3)
|
has
materially breached any of the provisions of any agreement with the
Corporation, any of its Subsidiaries or any affiliate of the Corporation
or any of its Subsidiaries; or
|
|
|
(4)
|
has
engaged in unfair competition with, or otherwise acted intentionally in a
manner injurious to the reputation, business or assets of, the
Corporation, any of its Subsidiaries or any affiliate of the Corporation
or any of its Subsidiaries; has improperly induced a vendor or customer to
break or terminate any contract with the Corporation, any of its
Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries; or has induced a principal for whom the Corporation, any of
its Subsidiaries or any affiliate of the Corporation or any of its
Subsidiaries acts as agent to terminate such agency
relationship.
|
In all
events the Option is subject to earlier termination on the Expiration Date of
the Option or as contemplated by Section 4.2. The Administrator shall
be the sole judge of whether the Grantee continues to render employment or
services for purposes of this Option Agreement.
Notwithstanding
any post-termination exercise period provided for herein or in the Plan, the
Option will qualify as an ISO only if it is exercised within the applicable
exercise periods for ISOs under, and meets all of the other requirements of, the
Code. If the Option is not exercised within the applicable exercise
periods for ISOs or does not meet such other requirements, the Option will be
rendered a nonqualified stock option.
|
5.
|
Non-Transferability.
|
The
Option and any other rights of the Grantee under this Option Agreement or the
Plan are nontransferable and exercisable only by the Grantee, except as set
forth in Section 5.7 of the Plan.
|
6.
|
Notices.
|
Any
notice to be given under the terms of this Option Agreement shall be in writing
and addressed to the Corporation at its principal office to the attention of the
Secretary, and to the Grantee at the address last reflected on the Corporation’s
payroll records, or at such other address as either party may hereafter
designate in writing to the other. Any such notice shall be delivered
in person or shall be enclosed in a properly sealed envelope addressed as
aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch post office regularly
maintained by the United States Government. Any such notice shall be
given only when received, but if the Grantee is no longer employed by the
Corporation or a Subsidiary, shall be deemed to have been duly given five
business days after the date mailed in accordance with the foregoing provisions
of this Section 6.
|
7.
|
Plan.
|
The
Option and all rights of the Grantee under this Option Agreement are subject to
the terms and conditions of the Plan, incorporated herein by this
reference. The Grantee agrees to be bound by the terms of the Plan
and this Option Agreement (including these Terms). The Grantee
acknowledges having read and understanding the Plan, the Prospectus for the
Plan, and this Option Agreement. Unless otherwise expressly provided
in other sections of this Option Agreement, provisions of the Plan that confer
discretionary authority on the Board or the Administrator do not and shall not
be deemed to create any rights in the Grantee unless such rights are expressly
set forth herein or are otherwise in the sole discretion of the Board or the
Administrator so conferred by appropriate action of the Board or the
Administrator under the Plan after the date
hereof.
|
8.
|
Entire
Agreement.
|
This
Option Agreement (including these Terms) and the Plan together constitute the
entire agreement and supersede all prior understandings and agreements, written
or oral, of the parties hereto with respect to the subject matter
hereof. The Plan and this Option Agreement may be amended pursuant to
Section 8.6 of the Plan. Such amendment must be in writing and
signed by the Corporation. The Corporation may, however, unilaterally
waive any provision hereof in writing to the extent such waiver does not
adversely affect the interests of the Grantee hereunder, but no such waiver
shall operate as or be construed to be a subsequent waiver of the same provision
or a waiver of any other provision hereof.
|
9.
|
Governing
Law.
|
This
Option Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Delaware without regard to conflict of law
principles thereunder.
|
10.
|
Effect of this
Agreement.
|
Subject
to the Corporation’s right to terminate the Option pursuant to Section 7.2 of
the Plan, this Option Agreement shall be assumed by, be binding upon and inure
to the benefit of any successor or successors to the Corporation.
|
11.
|
Counterparts.
|
This
Option Agreement may be executed simultaneously in any number of counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.
|
12.
|
Section
Headings.
|
The
section headings of this Option Agreement are for convenience of reference only
and shall not be deemed to alter or affect any provision
hereof.
