FORM OF 2002 INCENTIVE AND NONSTATUTORY OPTION PLAN OF FROZEN FOOD EXPRESS INDUSTRIES, INC. INCENTIVE OPTION AWARD AGREEMENT This Incentive Option Award Agreement (this “Agreement”) is made and entered into by and between Frozen Food Express...
Exhibit
10.10 (b)
FORM
OF 2002 INCENTIVE AND NONSTATUTORY OPTION PLAN
OF
FROZEN
FOOD EXPRESS INDUSTRIES, INC.
This
Incentive Option Award Agreement (this “Agreement”) is made and entered into by
and between Frozen Food Express Industries, Inc., a Texas corporation (“FFE” or
the “Corporation”) and ______________(the “Optionee”), as of February 1, 2005
(the “Date of Grant”). If the Optionee is presently or subsequently becomes
employed by a subsidiary of the Corporation, the term “Corporation” shall be
deemed to refer collectively to FFE, and the subsidiary or subsidiaries which
employ the Optionee.
W I T
N E S S E T H:
WHEREAS,
the Corporation has adopted the Frozen Food Express Industries, Inc. 2002
Incentive and Nonstatutory Option Plan (the “Plan”), a copy of which is attached
hereto and incorporated herein by reference, to provide an incentive for key
employees and certain consultants and advisors of the Corporation to remain in
the service of the Corporation and to extend them the opportunity to acquire a
proprietary interest in the Corporation so that they will apply their best
efforts for the benefit of the Corporation; and
WHEREAS,
the committee established pursuant to the Plan (the “Committee”) believes that
the granting of the stock option herein described to the Optionee is consistent
with the stated purposes for which the Plan was adopted;
NOW,
THEREFORE, in consideration of the mutual covenants and conditions hereinafter
set forth and for other good and valuable consideration, the Corporation and the
Optionee agree as follows:
1. Grant
of Option. Under
the terms and conditions of Section 5 of the Plan, FFE hereby grants to the
Optionee the right and option (the “Option”) to purchase an aggregate of
xxxxx shares
(such number being subject to adjustment as provided in Section 6 of the
Plan) of the common stock, $1.50 par value (“Common Stock”), of FFE (“Plan
Shares.”)
Subject
to Paragraph 9 herein, the Option granted hereunder is intended to qualify
as an “incentive stock option” under Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”) and shall be construed; provided, however,
that nothing in this Agreement shall be interpreted as a representation,
guarantee, or other undertaking on the part of the Corporation that this Option
is or will be determined to be an “incentive stock option” within such section
or any other section of the Code.
2. Exercise
Price. The
price at which the Optionee shall be entitled to purchase the Plan Shares
covered by the Option shall be xyz
and ab/100 U.S. dollars ($xx.ab) per Plan
Share (the “Exercise Price”).
3. Option
Plan. The
Option hereby granted shall be and remain in force and effect during the “Option
Period.” The Option Period shall begin on February 1, 2006, and end on the
normal close of business of the Corporation on the “Expiration Date.” The
Expiration Date is the earliest of (i)
February 1, 2015, or (ii) in the case of the Optionee’s termination of
employment, loss of eligibility, death, retirement or disability, the date
specified in Sections 7.1, 7.2, 7.3, 7.4, or 7.4 of the Plan.
4. Exercise
of Option. The
Optionee may exercise the Option at any time during the Option Period, with
respect to all or any part of the Plan Shares covered hereby; provided, however,
that no Option may be exercised for a fraction of a Plan Share, by delivery to
the Committee of written notice of exercise and payment of the purchase price as
provided in Paragraphs 5 and 6 herein.
An Option
will cease to be exercisable with respect to the Plan Shares when the Optionee
purchases the Plan Shares, or when the Option expires or is
terminated.
5. Method
of Exercise. The
Option shall be exercisable only by written notice of exercise (the “Exercise
Notice”) delivered to the Corporation during the term of the Option, which
notice shall (a) state the number of Plan Shares with respect to which the
Option is being exercised, (b) be signed by the Optionee or, if the
Optionee is dead or disabled, by the person authorized to exercise the Option
pursuant to Paragraphs 7.3 and 7.5 of the Plan, (c) be accompanied by
the Exercise Price for all Plan Shares for which the Option is exercised, and
(d) include such other information, instruments, and documents as may be
required to satisfy any other condition to exercise contained herein. The
Committee may require that the Exercise Notice be provided on a form or forms
prescribed by the Committee.
6. Medium
and Time of Payment. The
Exercise Price shall be payable in full upon the exercise of the Option
(a) in cash or by an equivalent means acceptable to the Committee,
(b) with shares of Common Stock owned by the Optionee for at least six
months and having a Fair Market Value at least equal to the aggregate Exercise
Price payable in connection with such exercise, or (c) by any combination
of clauses (a) and (b). Instead of surrendering shares of Common Stock that the
Optionee has owned for at least six months, the Optionee may attest to the
ownership of those shares on a form provided by the Committee and have the same
number of shares subtracted from the Option shares to be issued to the Optionee.
In addition, at the request of the Optionee and to the extent permitted by
applicable law, the Committee may approve arrangements with a brokerage firm
under which that brokerage firm, on behalf of the Optionee, shall pay to FFE the
Exercise Price of the Option being exercised, and FFE shall promptly deliver the
exercised shares to the brokerage firm (a “Cashless Exercise”). To accomplish
the Cashless Exercise, the Optionee must deliver to FFE an Exercise Notice
containing irrevocable instructions from the Optionee to FFE to deliver the
stock certificates directly to the broker.
7. Nontransferability. The
Option granted by this Agreement shall be exercisable only during the Option
Period provided in Paragraph 3 herein and, except as provided in
Sections 7.1, 7.2, 7.3, 7.4, and 7.5 of the Plan, only by the Optionee
during the Optionee’s lifetime and while an employee of the Corporation. No
Option granted by this Agreement is transferable by the Optionee other than by
will or pursuant to applicable laws of descent and distribution. Except as may
be necessary to accomplish the Cashless Exercise, the Option, and any rights and
privileges in connection therewith, cannot be transferred, assigned, pledged, or
hypothecated by the Optionee, or by any other person or persons, in any way,
whether by operation of law, or otherwise, and may not be subject to execution,
attachment, garnishment or similar process. In the event of any such occurrence,
this Agreement will automatically terminate and will thereafter be null and
void. The Optionee may, however, dispose of this Option in the Optionee’s will
or pursuant to a written beneficiary designation executed by the Optionee. Such
a designation must be filed with the Corporation on the proper form and will be
recognized only if it is received at the Corporation’s headquarters before the
Optionee’s death.
8. Delivery
of Plan Shares. No Plan
Shares shall be transferred to the Optionee upon exercise of the Option until
(i) the purchase price is paid in full in the manner herein provided,
(ii) all the applicable taxes required to be withheld have been paid or
withheld in full, (iii) the approval of any governmental authority required
in connection with the Option, or the issuance of Plan Shares thereunder, has
been received by FFE, and (iv) if required by the Committee, the Optionee
has delivered to the Committee assurances in form and content satisfactory to
FFE as provided in Section 7.10 of the Plan.
9. Notice
of Disqualifying Disposition. In
order for FFE to avail itself of any income tax deduction to which it may be
entitled, the Optionee must notify FFE of his disposal of any Plan Shares
purchased pursuant to this Agreement within two (2) years from the Date of Grant
and one (1) year from the date of exercise of this Option. Said notification
shall occur promptly after the disposition and shall include the number of Plan
Shares disposed of, the dates of acquisition and disposition of the Plan Shares,
and the consideration received for such disposition. If in connection with such
disposition FFE becomes liable for withholding taxes and has no amounts owing to
the Optionee with which to discharge its withholding obligation, the Optionee
shall provide FFE with the amount needed to discharge FFE’s withholding
obligation and shall indemnify FFE against any penalties it may incur through
its inability to apply amounts owing the Optionee in discharge of its
withholding obligations.
10. Information
Confidential. As
partial consideration for the granting of the Option, the Optionee agrees that
he will keep confidential all information and knowledge that he has relating to
the manner and amount of his participation in the Plan; provided, however, that
such information may be disclosed as required by law and may be given in
confidence to the Optionee’s spouse, tax and financial advisors, or to a
financial institution to the extent that such information is necessary to obtain
a loan.
11. Definitions;
Copy of Plan. To the
extent not specifically provided herein, all capitalized terms used in this
Agreement shall have the same meaning ascribed to them in the Plan. By the
execution of this Agreement, the Optionee acknowledges receipt of a copy of the
Plan.
12. Administration. This
Agreement is subject to the terms and conditions of the Plan. The Plan will be
administered by the Committee in accordance with its terms. The Committee has
sole and complete discretion with respect to all matters reserved to it by the
Plan and decisions of the Committee with respect to the Plan and to this
Agreement shall be final and binding upon the Optionee and the Corporation. In
the event of any conflict between the terms and conditions of this Agreement and
the Plan, the provisions of the Plan shall control.
13. Continuation
of Employment. This
Agreement shall not be construed to confer upon the Optionee any right to
continue in the employ of the Corporation and shall not limit the right of the
Corporation, in its sole discretion, to terminate the employment of the Optionee
at any time.
14. Obligation
to Exercise. The
Optionee shall have no obligation to exercise any Option granted by this
Agreement.
15. Governing
Law. This
Agreement shall be interpreted and administered under the laws of the State of
Texas (excluding its conflict of law rules) except to the extent such law is
preempted by federal law.
16. Amendments. This
Agreement may be amended only by a written agreement executed by the Corporation
and the Optionee. Any such amendment shall be made only upon the mutual consent
of the parties, which consent (of either party) may be withheld for any
reason.
17. Termination. The
Corporation may terminate the Plan at any time; however, such termination will
not modify the terms and conditions of the Option granted hereunder unless the
Optionee’s prior written consent is obtained.
IN
WITNESS WHEREOF, the Corporation has caused this Agreement to be duly executed
by its officers thereunto duly authorized, and the Optionee has hereunto set his
hand as of the day and year first above written.
FROZEN
FOOD EXPRESS INDUSTRIES, INC.
By:
Name:
Its:
OPTIONEE:
___________________________