THE SHARES ISSUABLE PURSUANT TO THIS AGREEMENT ARE SUBJECT TO THE PROVISIONS OF THE COMPANY’S 2005 EQUITY-BASED COMPENSATION PLAN AND THIS AGREEMENT IS ENTERED INTO PURSUANT THERETO. A COPY OF SUCH PLAN IS AVAILABLE UPON WRITTEN REQUEST TO THE COMPANY...
EXHIBIT
10.6.2
THE
SHARES ISSUABLE PURSUANT TO THIS AGREEMENT ARE SUBJECT TO THE PROVISIONS OF
THE
COMPANY’S 2005 EQUITY-BASED COMPENSATION PLAN AND THIS AGREEMENT IS ENTERED INTO
PURSUANT THERETO. A COPY OF SUCH PLAN IS AVAILABLE UPON WRITTEN REQUEST TO
THE
COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES.
X.XXXXXXX
CORPORATION
2005
EQUITY-BASED COMPENSATION PLAN
__________________
Re: Grant
of Stock Option
Dear
Xxxxx:
The
board
of directors (the “Board”)
of
x.Xxxxxxx Corporation (the “Company”)
has
adopted the Company’s 2005 Equity-Based Compensation Plan (the “Plan”)
for
certain employees and service providers of the Company and its Subsidiaries.
A
copy of the Plan is being furnished to you concurrently with the execution
of
this Nonstatutory Stock Option Agreement (the “Option
Agreement”)
and
shall be deemed a part of this Option Agreement as if fully set forth herein.
Unless the context otherwise requires, all terms defined in the Plan shall
have
the same meaning when used herein.
1. The
Grant. Subject to the conditions set forth below, the Company hereby grants
to
you, effective as of ______________
(“Grant
Date”),
as a
matter of separate inducement and not in lieu of any salary or other
compensation for your services, the right and option to purchase (the
“Option”),
in
accordance with the terms and conditions set forth herein and in the Plan,
an
aggregate of ___________
shares
of Stock of the Company (the “Option
Shares”),
at
the Exercise Price (as hereinafter defined). As used herein, the term
“Exercise
Price”
shall
mean a price equal to $________
per
share, subject to the adjustments and limitations set forth herein and in the
Plan. In no event shall the exercise price exceed the Fair Market Value of
a
share of Stock as of the Grant Date. The Option granted hereunder is intended
to
constitute an Option which is not designed pursuant to section 422 of the
Internal Revenue Code of 1986, as amended: however, you should consult with
your
tax advisor concerning the proper reporting of any federal or state tax
liability that may arise as a result of the grant or exercise of the
Option.
2. Exercise.
(a) For
purposes of this Option Agreement, the Option Shares shall be deemed
“Nonvested
Shares”
unless
and until they have become “Vested
Shares.”
The
Option shall in all events terminate at the close of business on the
_________ anniversary of the date of
this
Option Agreement. Subject to other terms and conditions set forth herein, the
Option may be exercised in cumulative installments as follows:
On
or After Each of the Following Vesting Dates
|
Cumulative
Percentage of Shares as to Which Option is
Exercisable
|
|||
Upon
Grant Date
|
__
|
%
|
||
First
Anniversary of the Grant Date
|
__
|
%
|
||
Second
Anniversary of the Grant Date
|
___
|
%
|
Option
Shares shall constitute Vested Shares once they are exercisable.
(b) Subject
to the relevant provisions and limitations contained herein and in the Plan,
you
may exercise the Option to purchase all or a portion of the applicable number
of
Vested Shares at any time prior to the termination of the Option pursuant to
this Option Agreement. In no event shall you be entitled to exercise the Option
for any Nonvested Shares or for a fraction of a Vested Share.
(c) Any
exercise by you of the Option shall be in writing addressed to the Secretary
of
the Company at its principal place of business (a copy of the form of exercise
to be used will be available upon written request to the Secretary), and shall
be accompanied by a certified or bank check payable to the order of the Company
in the full amount of the Exercise Price of the shares so purchased, or in
such
other manner as described in the Plan and approved by the Committee.
The
terms
and provisions of the employment agreement, if any, between you and the Company
or any Subsidiary (the “Employment
Agreement”)
that
relate to or affect the Option are incorporated herein by reference.
Notwithstanding the foregoing provisions of this Section 2, in the event of
any
conflict or inconsistency between the terms and conditions of this Section
2 and
the terms and conditions of the Employment Agreement, the terms and conditions
of the Employment Agreement shall be controlling.
3. Termination
of Employment. Except as provided below in this Section 3 upon the termination
of your employment with the Company or any Subsidiary, any and all Options
heldby you that are not then exercisable will become null and void upon the
date
of such terminationand you may, until the earlier of (x) ninety (90) days from
the date of such termination or (y) the expiration of the Option in accordance
with its terms, exercise the Option with respect to all orany part of the Vested
Shares which you were entitled to purchase immediately prior to such termination
and, thereafter, the Option shall, to the extent not previously exercised,
automatically terminate and become null and void, provided that:
(a) in
the
case of termination of your employment with the Company or any Subsidiary due
to
death, your estate (or any Person who acquired the right to exercise such Option
by bequest or inheritance or otherwise by reason of your death) may, until
the
earlier of (x) the date that is one (1) year after the date of death or (y)
the
expiration of the Option in accordance with its terms, exercise the Option
with
respect to all or any part of the Vested Shares to which the Option
relates;
2
(b) in
the
case of termination of your employment with the Company or any Subsidiary due
to
your Disability, as determined in the sole discretion of the Committee and
as
defined in Section 15, you or your legal representative may, until the earlier
of (x) the one hundred and eightieth (180) day after the date your employment
was terminated or (y) the expiration of the Option in accordance with its terms,
exercise the Option with respect to all or any part of the Vested Shares to
which the Option relates;
(c) in
the
case of termination of your employment by the Company or any Subsidiary for
any
reason other than Cause, as determined in the sole discretion of the Committee
and as defined in Section 15, within one (1) year of a Change in Control or
in
the case of your resignation from the Company or any Subsidiary for Good Reason,
as determined in the sole discretion of the Committee and as defined in Section
15, within one (1) year of a Change in Control, then any portion of the Option
held by you as of the date of separation that is not yet exercisable but would,
pursuant to Section 2(a), become exercisable over the twelve month period
immediately following such termination, shall become exercisable, as of the
date
of separation, and any portion of the Option held by you as of the date of
separation that is exercisable (either as a result of this sentence or
otherwise) shall be exercisable for a period of the lesser of (x) the remainder
of the term of the Option or (y) the date which is one (1) year after the
termination of employment; and
(d) if
you
are on leave of absence for any reason, the Company may, in its sole discretion,
determine that you will be considered to still be in the employ of or providing
services for the Company, provided that rights to the Option Shares will be
limited to the extent to which those rights were earned or vested when the
leave
or absence began.
Notwithstanding
the foregoing provisions of this Section 3, in the event of any conflict
or
inconsistency
between the terms and conditions of this Section 3 and the terms and conditions
of
the
Employment Agreement, the terms and conditions of the Employment Agreement
shall
be
controlling.
4. Transferability.
Any rights or interests herein will be assignable or transferable by you only
as
provided in Section 10(a) of the Plan and by will or the laws of descent and
distribution.
5. Withholding
Taxes. The Committee may, in its discretion, require you to pay to the Company
(or the Company’s Subsidiary if you are an employee of a Subsidiary of the
Company), at the time of the exercise of an Option or thereafter, the amount
that the Committee deems necessary to satisfy the Company’s or its Subsidiary’s
current or future obligation to withhold federal, state or local income or
other
taxes that you incur by exercising an Option. In connection with the exercise
of
an Option requiring tax withholding, you may (a) direct the Company to withhold
from the shares of Stock to be issued to you the number of shares necessary
to
satisfy the Company’s obligation to withhold taxes, that determination to be
based on the shares’ Fair Market Value as of the date of exercise; (b) deliver
to the Company sufficient shares of Stock (based upon the Fair Market Value
as
of the date of such delivery) to satisfy the Company’s tax withholding
obligation, which tax withholding obligation is based on the shares’ Fair Market
Value as of the later of the date of exercise or the date as of which the shares
of Stock issued in connection with such exercise become includable in your
income; or (c) deliver sufficient cash to the Company to satisfy its tax
withholding obligations. If you elect to use such a Stock withholding feature
you must make the election at the time and in the manner that the Committee
prescribes. The Committee may, at its sole option, deny your request to satisfy
withholding obligations through Stock instead of cash. In the event the
Committee subsequently determines that the aggregate Fair Market Value (as
determined above) of any shares of Stock withheld or delivered as payment of
any
tax withholding obligation is insufficient to discharge that tax withholding
obligation, then you shall pay to the Company, immediately upon the Committee’s
request, the amount of that deficiency in the form of payment requested by
the
Committee.
3
6. Adjustments.
The terms of an Option shall be subject to adjustment from time to time, in
accordance with the following provisions:
(a) If
at any
time, or from time to time, the Company shall subdivide as a whole (by
reclassification, by a Stock split, by the issuance of a distribution on Stock
payable in Stock or otherwise) the number of shares of Stock then outstanding
into a greater number of shares of Stock, then (i) the number of shares of
Stock
(or other kind of securities) that may be acquired under the Option shall be
increased proportionately and (ii) the price (including Exercise Price) for
each
share of Stock (or other kind of shares or securities) subject to the then
outstanding Option shall be reduced proportionately, without changing the
aggregate purchase price or value of the outstanding Option.
(b) If
at any
time, or from time to time, the Company shall consolidate as a whole (by
reclassification, reverse Stock split or otherwise) the number of shares of
Stock then outstanding into a lesser number of shares of Stock, (i) the number
of shares of Stock (or other kind of shares or securities) that may be acquired
under the Option shall be decreased proportionately; and (ii) the price
(including Exercise Price) for each share of Stock (or other kind of shares
or
securities) subject to the Option shall be increased proportionately, without
changing the aggregate purchase price or value of the outstanding
Option.
(c) Whenever
the number of shares of Stock subject to the Option and the price for each
share
of Stock subject to the Option are required to be adjusted as provided in this
Section 6, the Committee shall promptly prepare a notice setting forth, in
reasonable detail, the event requiring adjustment, the amount of the adjustment,
the method by which such adjustment was calculated, and the change in price
and
the number of shares of Stock, other securities, cash, or property purchasable
subject to the Option after giving effect to the adjustments. The Committee
shall promptly give you such a notice.
(d) Adjustments
under this Section 6 shall be made by the Committee, and its determination
as to
what adjustments shall be made and the extent thereof shall be final, binding,
and conclusive. No fractional interest shall be issued under the Plan on account
of any such adjustments.
4
7. Notice.
All notices required or permitted under this Option Agreement must be in writing
and personally delivered or sent by mail and shall be deemed to be delivered
on
the date on which it is actually received by the person to whom it is properly
addressed. A notice shall be effective when actually received by the Company
in
writing and in conformance with this Option Agreement and the Plan. Until
changed in accordance herewith, the Company and the optionee specify their
respective addresses as set forth below:
Company:
|
x.Xxxxxxx
Corporation
|
00000
Xxxxxxx Xx. Xx. X.
|
Xxx
Xxxxx, XX 00000
|
Attention:
Xxxxxx Xxxxxx
|
Optionee:
|
_______________
|
_____________________________________________
|
_____________________________________________
|
8. Information
Confidential. As partial consideration for the granting of this Option, you
agree that you will keep confidential all information and knowledge that you
have relating to the manner and amount of your participation in the Plan;
provided, however, that such information may be disclosed as required by law
and
may be given in confidence to your spouse, tax and financial advisors, or a
financial institution to the extent that such information is necessary to obtain
a loan.
9. Furnish
Information. You agree to furnish to the Company all information requested
by
the Company to enable it to comply with any reporting or other requirement
imposed upon the Company by or under any applicable statute or
regulation.
10. Company
Records. Records of the Company or its Subsidiaries regarding your period of
employment, termination of employment and the reason therefor, leaves of
absence, re-employment, and other matters shall be conclusive for all purposes
hereunder.
11. Successors.
This Agreement shall be binding upon you, your legal representatives, heirs,
legatees and distributees, and upon the Company, its successors and
assigns.
12. Headings.
The titles and headings of paragraphs are included for convenience of reference
only and are not to be considered in construction of the provisions
hereof.
13. Governing
Law. All questions arising with respect to the provisions of this Agreement
shall be determined by application of the laws of the State of Delaware except
to the extent Delaware law is preempted by federal law. The obligation of the
Company to sell and deliver Stock hereunder is subject to applicable laws and
to
the approval of any governmental authority required in connection with the
authorization, issuance, sale, or delivery of such Stock.
5
14. Word
Usage. Words used in the masculine shall apply to the feminine where applicable,
and wherever the context of this Agreement dictates, the plural shall be read
as
the singular and the singular as the plural.
15. Miscellaneous.
(a) This
Option Agreement is subject to all the terms, conditions, limitations and
restrictions contained in the Plan. In the event of any conflict or
inconsistency between the terms hereof and the terms of the Plan, the terms
of
the Plan shall be controlling.
(b) This
Option Agreement is not a contract of employment and the terms of your
employment shall not be affected by, or construed to be affected by, this Option
Agreement, except to the extent specifically provided herein. Nothing herein
shall impose, or be construed as imposing, any obligation (i) on the part of
the
Company or any Subsidiary to continue your employment, or (ii) on your part
to
remain in the employ of the Company or any Subsidiary.
(c) This
Option Agreement may be amended as provided in Section 10(c) of the
Plan.
(d) Definitions.
(i) Cause
shall
have the meaning given such term in your Employment Agreement (if any) with
the
Company or a Subsidiary of the Company; provided, however, that if you do not
have an Employment Agreement or such agreement does not define Cause, Cause
shall mean, as determined by the Board or Committee in its sole discretion
exercised in good faith, (A) your breach of any nondisclosure, noncompetition,
or other agreement to which you and the Company are parties; (B) your commission
of a felony or of a misdemeanor involving moral turpitude; (C) the participation
by you in any fraud; (D) your dishonesty that is detrimental to the best
interest of the Company; (E) the willful and continued failure by you to
substantially perform your duties to the Company (other than any such failure
resulting from your incapacity due to physical or mental illness) after written
demand for substantial performance is delivered by the Company specifically
identifying the manner in which the Company believes you have not substantially
performed your duties; or (F) the willful engagement by you in misconduct which
is materially injurious to the Company, monetarily or otherwise.
(ii) Disability
shall
have the meaning given such term in your Employment Agreement (if any) with
the
Company or a Subsidiary of the Company; provided,
however, that
if
you do not have an Employment Agreement or it does not define Disability,
Disability shall mean, as determined by the Board or Committee in its sole
discretion exercised in good faith, a physical or mental impairment of
sufficient severity that either you are unable to continue performing the duties
you performed before such impairment or your condition entitles you to
disability benefits under any insurance or employee benefit plan of the Company
or its subsidiaries and that impairment or condition is cited by the Company
as
the reason for termination of your employment.
6
(iii) Good
Reason
shall
have the meaning given such term in your Employment Agreement (if any) with
the
Company or a Subsidiary of the Company; provided,
however, that
if
you do not have an Employment Agreement or the Employment Agreement does not
define Good Reason, Good Reason shall mean, as determined by the Board or
Committee in its sole discretion exercised in good faith, the occurrence of
one
or more of the following events: (A) breach by the Company of any provision
of
you Employment Agreement where such breach continues for a period of ten (10)
days after written notice thereof by you; (B) the Company gives notice to you
pursuant to the provisions of your Employment Agreement that the Company does
not wish to extend the Employment Agreement and you resign before the expiration
of the Employment Agreement; (C) relocation of your regular work address by
more
than fifty miles without your consent; or (D) any material adverse change in
your job responsibilities, duties, functions, status, offices, title,
prerequisites or support staff. By way of example only and without limiting
the
applicability of the preceding clause, a material adverse change in your job
responsibilities, functions and status would result from a demotion which
significantly reduces your discretion and independent judgment within the
Company or significantly reduces the number of employees subject to your
authority.
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7
Please
indicate your acceptance of all the terms and conditions of the Option and
the
Plan by signing and returning a copy of this Option Agreement.
x.Xxxxxxx
Corporation
|
||
|
|
|
By: | ||
Name: W.A. Xxxxxxxx |
||
Title: President
|
ACCEPTED:
__________________________________
Signature
of Optionee
__________________________________
Name
of
Optionee (Please Print)
Date:
_________________, ___________
8