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  Exhibit 10.26    
    


 
 

  LONE PINE RESOURCES INC.
  2011 STOCK INCENTIVE PLAN
  STOCK OPTION AGREEMENT FOR CANADIAN GRANTEES    
    


        AGREEMENT made as
of                                    , between LONE PINE
RESOURCES INC., a Delaware corporation (the "Company"),
and                                    ("Employee"). 


        To
carry out the purposes of the LONE PINE RESOURCES INC. 2011 STOCK INCENTIVE PLAN (the "Plan"), by affording Employee the
opportunity to purchase shares of the common stock of the Company, par value $.01 per share ("Stock"), and in consideration of the mutual agreements and other matters set forth herein and in the Plan,
the Company and Employee hereby agree as follows: 



        1.    Grant of Option.    The Company hereby irrevocably grants to Employee the right and
option ("Option") to purchase all or any part of an aggregate of                        newly-issued shares of Stock on the terms
and conditions set forth herein and in the Plan, which Plan is incorporated
herein by reference as a part of this Agreement. Employee agrees that this Option shall be subject to all of the terms and provisions of the Plan, including future amendments thereto, if any, pursuant
to the terms thereof. In the event of any conflict between the terms of this Agreement and the Plan, the Plan shall control. Capitalized terms used but not defined in this Agreement shall have the
meaning attributed to such terms under the Plan, unless the context requires otherwise. This Option shall not be treated as an incentive stock option within the meaning of section 422(b) of the
Code. 


        2.    Purchase Price.    The purchase price of Stock purchased pursuant to the exercise of
this Option shall be $        per share, which has been determined to be not less than the Fair Market Value of the Stock at the date of grant of this Option. For all purposes of this
Agreement, Fair Market Value of Stock shall be determined in accordance with the provisions of the Plan. 


        3.    Exercise of Option.    Subject to the earlier expiration of this Option as herein
provided, this Option may be exercised, by written notice to the Company at its principal executive office addressed to the attention of its Corporate Secretary (or such other officer or employee of
the Company as the Company may designate from time to time), at any time and from time to time after the date of grant hereof, but, except as otherwise provided below, this Option shall not be
exercisable for more than the aggregate number of shares offered by this Option determined in accordance with the following schedule:  



	•
	this Option shall vest and thereupon become exercisable with respect to        shares
on                        ;  



	•
	this Option shall vest and thereupon become exercisable with respect to        shares
on                        ;
  



	•
	this Option shall vest and thereupon become exercisable with respect to        shares
on                        ; and  



	•
	this Option shall vest and thereupon become exercisable with respect to        shares
on                        . 





        This
Option may be exercised only while Employee remains an employee of the Company and will terminate and cease to be exercisable or have any further force or effect upon termination of
Employee's employment with the Company, except that: 



        (a)    Disability.    If Employee's employment with the Company terminates by reason of disability (within the meaning
of section 22(e)(3) of the Code), this Option may be exercised in full (without regard to the vesting schedule set forth above) by Employee (or Employee's estate or the person who acquires this
Option by will or the laws of descent and distribution or otherwise by 








 

reason
of the death of Employee) at any time during the period of one year following such termination. 


        (b)    Death.    If Employee dies while in the employ of the Company, Employee's estate (or the person who acquires
this Option by will or the laws of descent and distribution or otherwise by reason of the death of Employee) may exercise this Option in full (without regard to the vesting schedule set forth above)
at any time during the period of one year following the date of Employee's death. 


        (c)    Retirement.    If an Employee retires from the Company (within the meaning of the Company's standard corporate
policies), this Option may be exercised in full (without regard to the vesting schedule set forth above) by such Employee (or Employee's estate or the person who acquires this Option by will or the
laws of descent and distribution or otherwise by reason of the death of such Employee) at any time during the period of one year following such retirement. 



        (d)    Other Termination.    If Employee's employment with the Company terminates for any reason other than as
described in (a), (b) or (c) above, unless such employment is terminated for cause, this Option may be exercised by Employee at any time during the period of three months following such
termination, or by Employee's estate (or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Employee) during a period of one
year following Employee's death if Employee dies during such three-month period, but in each case only as to the number of shares Employee was entitled to purchase hereunder as of the date Employee's
employment so terminates. If Employee's employment with the Company is terminated for cause, then this Option (including the vested and nonvested portions thereof) will terminate and cease to be
exercisable upon the date of such termination. As used in this paragraph, the term "cause" shall mean Employee (i) has been convicted of a misdemeanor involving moral turpitude or of a felony,
(ii) has engaged in gross negligence or willful misconduct in the performance of the duties of Employee's employment, (iii) has willfully disregarded any written corporate policies
established by the Company or any of its Affiliates, or (iv) has materially breached any material provision of any written agreement between Employee and the Company or any of its Affiliates. 




This
Option shall not be exercisable in any event after the expiration of ten years from the date of grant hereof. The purchase price of shares as to which this Option is exercised shall be paid in
full at the time of exercise (a) in cash (including check, bank draft or money order payable to the order of the Company), (b) by delivering or constructively tendering to the Company
shares of Stock having a Fair Market Value equal to the purchase price (provided such shares used for this purpose must have been held by Employee for such minimum period of time as may be established
from time to time by the Committee and further provided that such shares were not acquired by Employee pursuant to the exercise of another Option granted by the Company), (c) if the Stock is
readily tradable on a national securities market, through a "cashless-broker" exercise in accordance with a Company established policy or program for the same, or (d) any combination of the
foregoing. No fraction of a share of Stock shall be issued by the Company upon exercise of an Option or accepted by the Company in payment of the exercise price thereof; rather, Employee shall provide
a cash payment for such amount as is necessary to effect the issuance and acceptance of only whole shares of Stock. Unless and until a certificate or certificates representing such shares shall have
been issued by the Company to Employee, Employee (or the person permitted to exercise this Option in the event of Employee's death) shall not be or have any of the rights or privileges of a
stockholder of the Company with respect to shares acquirable upon an exercise of this Option. 



        4.    Withholding of Tax.    The Committee may, in its discretion, require Employee to pay to
the Company at the time of the exercise of this Option or thereafter, the amount that the Committee deems necessary to satisfy the Company's current or future obligation to withhold federal, state, 



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provincial
or local income or other taxes that Employee may incur by exercising this Option. In connection with such an event requiring tax withholding, Employee may (a) direct the Company to
withhold from the shares of Stock to be issued to Employee 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; or (c) deliver sufficient cash to the Company to satisfy its tax withholding obligation. If Employee elects to use a Stock withholding feature, then Employee must make
the election at the time and in the manner that the Committee prescribes. The Committee may, at its sole option, deny Employee's request to satisfy withholding obligations through shares of 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 Employee 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. To the extent that the disposition of shares of Stock acquired by exercise of this Option results in employment income, compensation income or wages to
Employee for federal, state, provincial or local tax purposes, Employee shall deliver to the Company at the time of such disposition such
amount of money as the Company may require to ensure it can comply with its withholding obligations under applicable tax laws or regulations. 


        5.    Status of Stock.    The Company intends to register for issuance under the United States
Securities Act of 1933, as amended (the "Act") the shares of Stock acquirable upon exercise of this Option, and to keep such registration effective throughout the period this Option is exercisable. In
the absence of such effective registration or an available exemption from registration under the Act, issuance of shares of Stock acquirable upon exercise of this Option will be delayed until
registration of such shares is effective or an exemption from registration under the Act is available. The Company intends to use its reasonable efforts to ensure that no such delay will occur. In the
event exemption from registration under the Act is available upon an exercise of this Option, Employee (or the person permitted to exercise this Option in the event of Employee's death or incapacity),
if requested by the Company to do so, will execute and deliver to the Company in writing an agreement containing such provisions as the Company may require to assure compliance with applicable
securities laws. 




        Employee
agrees that the shares of Stock which Employee may acquire by exercising this Option will not be sold or otherwise disposed of in any manner which would constitute a violation
of any applicable U.S. or Canadian federal, state, or provincial securities laws. Employee also agrees that (i) the certificates representing the shares of Stock purchased under this Option may
bear such legend or legends as the Committee, in its sole discretion, deems appropriate in order to comply with the terms and provisions of this Agreement and applicable securities laws and stock
exchange rules, (ii) the Company may refuse to register the transfer of the shares of Stock purchased under this Option on the stock transfer records of the Company if such proposed transfer
would, in the opinion of counsel satisfactory to the Company, constitute a violation of any applicable securities law, and (iii) the Company may give related instructions to its transfer agent,
if any, to stop registration of the transfer of the shares of Stock purchased under this Option. 



        6.    Employment Relationship.    For purposes of this Agreement, Employee shall be considered
to be in the employment of the Company as long as Employee remains an employee of either the Company, an Affiliate, or a corporation or a parent or subsidiary of such corporation assuming or
substituting a new option for this Option. Without limiting the scope of the preceding sentence, it is expressly provided that Employee shall be considered to have terminated employment with the
Company at the time of the termination of the "Affiliate" status under the Plan of the entity or 



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other
organization that employs Employee. Any question as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Committee
and its determination shall be final. 


        7.    Binding Effect.    This Agreement shall be binding upon and inure to the benefit of any
successors to the Company and all persons lawfully claiming under Employee. 


        8.    Entire Agreement; Amendment.    This Agreement constitutes the
entire agreement of the parties with regard to the subject matter hereof; provided, that the terms of this Agreement shall not modify and shall be subject to the terms and conditions of any employment
or severance agreement between the Company (or an Affiliate) and Employee in effect on the date a determination is made under this Agreement. Without limiting the scope of the preceding sentence,
except as therein provided, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.
Any modification of this Agreement shall be effective only if it is in writing and signed by both Employee and an authorized officer of the Company. 


        9.    Clawback.    Notwithstanding any provisions in this Agreement to the contrary, any
portion of the payments and benefits provided under this Agreement or the sale of shares of Stock purchased under this Option shall be subject to a clawback to the extent necessary to comply with
applicable law including, without limitation, the requirements of the United States Dodd-Frank Wall Street Reform and Consumer Protection Act or any United States Securities and Exchange
Commission rule. 


        10.    Governing Law.    This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.




        IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer thereunto duly authorized, and Employee has
executed this Agreement, all as of the day and year first above written. 

 






					
	 
	 	 LONE PINE RESOURCES INC.
	 
	 	 By:
	 	 







     [name]

    [title]
	 
	 	 By:
	 	 







     [Employee Name]
	 
	 	SIN:	 	 




 

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Exhibit 10.26


LONE PINE RESOURCES INC. 2011 STOCK INCENTIVE PLAN STOCK OPTION AGREEMENT FOR CANADIAN GRANTEES