**Exbihit 10.10(b)**

 

2004 Unit Option Agreement 

 

**CONSOLIDATED CONTAINER HOLDINGS LLC**

**2004 UNIT OPTION AGREEMENT**

 

THIS AGREEMENT (the“Agreement”), which shall be effective as of the Award Date (defined in paragraph 1 below), is made and entered into by and between Consolidated Container Holdings LLC, a Delaware limited liability company (the“Company”), and the individual named in Exhibit A attached hereto (the “Participant”). 

 

**WHEREAS**, the Company has implemented the Second Amended and Restated Consolidated Container Holdings LLC 1999 Unit Option Plan (the“Plan”), which provides for the grant of options to selected officers, key employees, and consultants of the Company or its Subsidiaries to purchase Units of the Company; 

 

**WHEREAS**, the committee that administers the Plan (the “Committee”) has selected the Participant toparticipate in the Plan and has awarded the Unit option herein described (the “Option”) to the Participant; and 

 

**WHEREAS**, the parties desire to evidence in writing the terms and conditions of the Option, which the parties intend to supersede all prior optiongrants from the Company to the Participant; 

 

**NOW,THEREFORE**, in consideration of the foregoing and of the mutual covenants and agreements herein contained, and as an inducement to the Participant to continue as an employee of the Company or its Subsidiary and/or to promote the success of thebusiness of the Company and its Subsidiaries, the parties hereby agree as follows: 

 

1. Grant of Option. The Company hereby grants to the Participant, upon the terms and subject to the conditions, limitations and restrictions set forth in the Plan and in this Agreement, the Option to acquirethe number of Units set forth in Exhibit A (the “Number of Units”), at an exercise price of five cents ($0.05) to acquire each Unit (the “Exercise Price”), effective as of July 1, 2004 (the “AwardDate”). The Participant hereby accepts the Option from the Company. 

 

2. Vesting. 

 

(a)Exhibit A sets forth the percentage of the Units subject to the Option that will be vested as of the Award Date. Thereafter, the Units subject to the Option shall vest ratably on a daily basis (over a 365-day year) at a rate of twenty percent (20%)per year while the Participant is employed; provided, however, the Option shall immediately vest in full as to all Units subject hereto upon any Sale of the Company (as defined in section (b) below); provided, further,that the Option shall also vest up to such number of Units subject hereto as are necessary to permit the Participant to participate in any sale of Units in which the Participant is permitted or required to sell pursuant to Section 11.5 or 11.6 ofthe LLC Agreement. 

2004 Unit Option Agreement 

 

(b) A “Sale of the Company” shall occur if the Company engages in a merger, consolidation,recapitalization, reorganization or sale, lease or transfer of all or substantially all of the Company’s assets and (i) the Company and its members and affiliates immediately before such transaction beneficially own, immediately after or as aresult of such transaction, equity securities of the surviving or acquiring entity or such entity’s parent entity (the “Acquiror”) possessing less of the voting power of the Acquiror or such entity’s parent entity thananother shareholder or member and (ii) the Company and its members and affiliates immediately before such transaction have fewer representatives on the Board of the Acquiror than another shareholder or member, provided that a Sale of the Companyshall not be deemed to occur upon any public offering or series of such offerings of securities of the Company or its affiliates that results in any such change in beneficial ownership. 

 

3. Exercise. In order to exercise the Option with respect to any vested Units hereunder, the Participant shallprovide written notice to the Company at its principal executive office. At the time of exercise, the Participant shall pay to the Company the Option price per Unit set forth in Section 1 times the number of vested Units as to which theOption is being exercised. The Participant shall make such payment by delivering (a) cash or (b) a check or (c) at the Committee’s option any other consideration that the Committee determines is consistent with the Plan and applicable law. Ifthe Option is exercised in full, the Participant shall surrender this Agreement to the Company for cancellation. If the Option is exercised in part, the Participant shall surrender this Agreement to the Company so that the Company may makeappropriate notation hereon or cancel this Agreement and issue a new agreement representing the unexercised portion of the Option. Prior to acquiring any of the Units pursuant to the Option, the Participant shall execute and deliver the Special UnitAcquisition, Ownership and Redemption Agreement attached as Exhibit A to the Plan and the LLC Agreement. 

 

4. Who May Exercise. The Option shall be exercisable during the lifetime of the Participant only by the Participant. To the extent exercisableafter the Participant’s death, only by the Participant’s representatives, executors, successors or beneficiaries may exercise the Option. 

 

5. Expiration of Option.

 

(a) Vested Options. Subject to paragraph (b) below, the Option shall expire, and shall not be exercisable with respect to any vested Unitshereunder as to which the Option has not been exercised, on the first to occur of (a) the 10th anniversary of the Award Date or (b) one year after the Participant ceases to be an Employee or consultant of the Company for any reason. 

 

(b) Early Termination of Option. Participant’s Option willterminate prior to the time period specified in paragraph (a) above under any of the following circumstances: 

 

i. Resignation without Good Reason. If the Participant ceases to be an Employee or consultant of the Company without Good Reason (as definedbelow), 50% of any vested Option shall terminate immediately upon termination of employment or termination of his engagement as a consultant with the Company. 

 

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2004 Unit Option Agreement 

 

ii. Termination for Cause. The Committee may, by written notice to the Participant, immediately terminate the Optionif the Participant (a) is terminated for dishonesty or other acts detrimental to the interests of the Company or its Subsidiaries, or for willful misconduct or gross negligence in the performance of, or willful neglect of, his or her duties, or (b)Competes (as defined below) with the Company or its Subsidiaries, or (c) is convicted or, or enters a plea of *nolo contendere* to, a felony. 

 

(c) Unvested Options. The Option shall expire, and shall not be exercisable, with respect to any unvested Units hereunder and with respectto any Units as to which the Exercise Price exceeds the Fair Market Value (determined as of the date of such termination), immediately upon (i) the termination of the Participant’s employment with the Company if Participant was awarded theOption for his services as an employee, or (ii) when the Participant ceases to be a member of the management committee of the Company if Participant was awarded the Option for his services as a member of the management committee of the Company, or(iii) when Participant’s engagement as a consultant terminates if Participant was awarded the Option for his services as a consultant of the Company. 

 

(d) Definitions. For purposes of this Section 5, the following terms shall be defined as follows: 

 

i. The term “Compete” shall mean, directly or indirectly (i) tobe engaged in or have financial interest (other than an ownership position of less than 5% in any company whose share are publicly traded or any non-voting non-convertible debt securities in any company) in any business which directly competes withthe business of the Company or any of its Subsidiaries or (ii) to solicit or offer employment to any person who has been employed by the Company or any of its Subsidiaries at any time during the 12 months immediately preceding such solicitation.

 

ii. The term “Good Reason” shall mean (a) voluntaryretirement, (b) a substantial, involuntary, adverse change in job requirements, base salary or incentive opportunity, (c) involuntary relocation, (d) death or (e) disability rendering Participant unable to continue his employment or consultingarrangement with the Company or any of its Subsidiaries. 

 

6.Tax Withholding. Any provision of this Agreement to the contrary notwithstanding, the Company may take such steps as it deems necessary or desirable for the withholding of any taxes that it is required by law or regulation of any governmentalauthority, federal, state or local, domestic or foreign, to withhold in connection with any of the Units subject hereto. 

 

7. Transfer of Option. The Participant shall not, directly or indirectly, sell, transfer, pledge, encumber or hypothecate(“Transfer”) the Option or the rights and privileges pertaining 

 

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2004 Unit Option Agreement 

 

thereto other than by will or the laws of descent and distribution. Any permitted transferee to whom the Participant shall Transfer the Option pursuant to this Section 7shall agree to be bound by this Agreement. The Option is not liable for or subject to, in whole or in part, the debts, contracts, liabilities or torts of the Participant, nor shall it be subject to garnishment, attachment, execution, levy or otherlegal or equitable process. 

 

8. Certain LegalRestrictions. The Company shall not be obligated to sell or issue any Units upon the exercise of the Option or otherwise unless the issuance and delivery of such Units shall comply with all relevant provisions of law and other legal requirementsincluding, without limitation, any applicable federal or state securities laws. As a condition to the exercise of the Option or the sale by the Company of any additional Units to the Participant, the Company may require the Participant to make suchrepresentations and warranties as may be necessary to assure the availability of an exemption from the registration requirements of applicable federal or state securities laws. The Company shall not be liable for refusing to sell or issue any Unitsif the Company cannot obtain authority from the appropriate regulatory bodies deemed by the Company to be necessary to lawfully sell or issue such Units. In addition, the Company shall have no obligation to the Participant, express or implied, tolist, register or otherwise qualify any of the Participant’s Units. The Units issued upon the exercise of the Option may not be transferred except in accordance with applicable federal or state securities laws. At the Company’s option, thecertificate evidencing Units issued to the Participant may be legended as follows: 

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE SOLD,ASSIGNED, TRANSFERRED OR PLEDGED EXCEPT IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH ACT AND THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. 

 

9. Plan Incorporated. The Participant accepts the Option herein subject to all the provisions of the Plan, which are incorporated herein,including the provisions that authorize the Committee to administer and interpret and make adjustments pursuant to the Plan and that provide that the Committee’s decisions, determinations and interpretations with respect to the Plan are finaland conclusive on all persons affected thereby. Except as otherwise set forth in this Agreement, terms defined in the Plan have the same meanings herein. 

 

10. Miscellaneous. 

 

(a) The granting of the Option herein shall impose no obligation upon the Participant to exercise the Option or any part thereof. Nothing herein containedshall affect the right of the Company to terminate the Participant at any time, with or without cause, or shall be deemed to create any rights to employment on the part of the Participant. 

 

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2004 Unit Option Agreement 

 

(b) The rights and obligations arising under this Agreement are not intended to and do not affect the employmentrelationship or other relationship that otherwise exists between the Company and the Participant, whether such employment relationship is at will or defined by an employment contract, or otherwise. 

 

(c) Neither the Participant nor any person claiming under or through theParticipant shall be or shall have any of the rights or privileges of a member of the Company in respect of any of the Units issuable upon the exercise of the Option herein unless and until such Units shall have been issued and delivered to theParticipant or such Participant’s agent. 

 

(d) Any noticeto be given to the Company under the terms of this Agreement or any delivery of the Option herein to the Company shall be addressed to the Company at its principal executive offices, and any notice to be given to the Participant shall be addressedto the Participant at the address set forth beneath his or her signature hereto, or at such other address for a party as such party may hereafter designate in writing to the other. Any such notice shall be deemed to have been duly given if mailed,postage prepaid, addressed as aforesaid. (e) Subject to the limitations herein on the transferability by the Participant of the Option and any Units, this Agreement shall be binding upon and inure to the benefit of the representatives, executors,successors or beneficiaries of the parties hereto. 

 

(f) **ThisAgreement shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the State of Delaware applicable to contracts entered into and to be performed in the State of Delaware.**

 

(g) If any provision of this Agreement is declared or found to be illegal,unenforceable or void, in whole or in part, then the parties shall be relieved of all obligations arising under such provision, but only to the extent that it is illegal, unenforceable or void, it being the intent and agreement of the parties thatthis Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent or, if that is not possible, by substituting therefor another provision that is legal andenforceable and achieves the same objectives. 

 

(h) All sectiontitles and captions in this Agreement are for convenience only, shall not be deemed part of this Agreement, and in no way shall define, limit, extend or describe the scope or intent of any provisions of this Agreement. 

 

(i) The parties shall execute all documents, provide all information, andtake or refrain from taking all actions as may be necessary or appropriate to achieve the purpose of this Agreement. 

 

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2004 Unit Option Agreement 

 

**(j) This Agreement, including Exhibit A, which is attached hereto and incorporated herein, constitutes the entireagreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto including, without limitation, any prior Consolidated Container Holdings LLC Unit Option Agreementsbetween Company and Participant. In this regard, Participant acknowledges the following: (i) that Company is hereby canceling any and all options Company may have granted to Participant pursuant to any previous Consolidated Container Holdings LLCUnit Option Agreement between Participant and Company or pursuant to any other written or oral promise from Company to grant options to Participant and (ii) that the Options granted to Participant hereunder represent the sole Company options inwhich Participant will have any interest following Participant’s execution hereof .**

 

(k) No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitutewaiver of any such breach or any other covenant, duty, agreement or condition. 

 

(l) This Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original orthe same counterpart.(m) At any time and from time to time the Committee may execute an instrument providing for modification, extension, or renewal of any outstanding option, provided that no such modification, extension or renewal shall impair theoption in any respect without the consent of the holder of the option. Except as provided in the preceding sentence, no supplement, modification or amendment of this Agreement or waiver of any provision of this Agreement shall be binding unlessexecuted in writing by all parties to this Agreement. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision of this Agreement (regardless of whether similar), nor shall any suchwaiver constitute a continuing waiver unless otherwise expressly provided. 

 

(n) In addition to all other rights or remedies available at law or in equity, the Company shall be entitled to injunctive and other equitable relief to prevent or enjoin any violation of the provisions of thisAgreement. 

 

(o) The Participant’s spouse joins thisAgreement for the purpose of agreeing to and accepting the terms of this Agreement and to bind any community property interest he or she has or may have in the Option, any vested portion or any unvested portion of the Option, any Units acquired uponexercise of the Option and any other Units held by the Participant. 

 

***Signatures appear on next page.***

 

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2004 Unit Option Agreement 

 

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement as of the Award Date. 

 
**COMPANY:**Consolidated Container Holdings LLCBy: 
 
  Stephen E. Macadam  President & Chief Executive Officer
 
**PARTICIPANT:** **PARTICIPANT’S SPOUSE:**Signature: 
 
 Signature: 
 
Print Name: 
 
 Print Name: 
 
Address: 
 
 Address: 
 
  
 
   
 
Date: 
 
 Date: 
 

 

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