Document:

Exhibit 10.2 Form of Option Grant Award

Exhibit 10.2
OMEROS CORPORATION
2008 EQUITY INCENTIVE PLAN
NOTICE OF GRANT OF STOCK OPTION 
Unless otherwise defined herein, the terms defined in the Omeros Corporation 2008 Equity Incentive Plan (the “Plan”) will have the same defined meanings in this Notice of Grant of Stock Option (the “Notice of Grant”) and Terms and Conditions of Stock Option Grant, attached hereto as Exhibit A (together, the “Agreement”).
Participant:                                    
Address:                                    
                                        
Participant has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Agreement, as follows:
Grant Number                                    
Date of Grant                                    
Vesting Commencement Date                            
Number of Shares Granted                            
Exercise Price per Share    $                        
Total Exercise Price        $                        
Type of Option        ___ Incentive Stock Option
___ Nonstatutory Stock Option
Term/Expiration Date                            
Vesting Schedule:
Subject to accelerated vesting as set forth below or in the Plan, this Option will be exercisable, in whole or in part, in accordance with the following schedule:
________________________________
If at any time Participant's employment is terminated without Cause or as a result of a Constructive Termination within twelve (12) months after the consummation of a Change in Control, one hundred percent (100%) of the number of shares of Common Stock subject to the Option shall vest.  The terms "Cause" and "Constructive Termination" as used in the preceding sentence have the meanings given to them in the Company's Second Amended and Restated 1998 Stock Option Plan.  The term "Change in Control" shall have the meaning given to it in the Company's 2008 Equity Incentive Plan.

Termination Period:
This Option will be exercisable for                      after Participant ceases to be a Service Provider, unless such termination is due to Participant’s death or Disability, in which case this Option will be exercisable for                      after Participant ceases to be a Service Provider.  Notwithstanding the foregoing, in no event may this Option be exercised after the Term/Expiration Date as provided above and may be subject to earlier termination as provided in Section 13 of the Plan.  
By Participant’s signature and the signature of the Company’s representative below, Participant and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Agreement.  Participant has reviewed the Plan and this Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understands all provisions of the Plan and Agreement.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Agreement.  Participant further agrees to notify the Company upon any change in the residence address indicated below.
PARTICIPANT                        OMEROS CORPORATION

                                                        
Signature                        By
                                                        
Print Name                        Title
Address:                        

                                        
                        

EXHIBIT A

TERMS AND CONDITIONS OF STOCK OPTION GRANT

1.Grant.  The Company hereby grants to the Participant named in the Notice of Grant (the “Participant”) an option (the “Option”) to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”), subject to all of the terms and conditions in this Agreement and the Plan, which is incorporated herein by reference.  Subject to Section 18(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan will prevail.
If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an ISO under Section 422 of the Code.  However, if this Option is intended to be an ISO, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it will be treated as a Nonstatutory Stock Option (“NSO”).
2.Vesting Schedule.  Except as provided in Section 3, the Option awarded by this Agreement will vest in accordance with the vesting provisions set forth in the Notice of Grant.  Shares scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest in Participant in accordance with any of the provisions of this Agreement, unless Participant will have been continuously a Service Provider from the Date of Grant until the date such vesting occurs.
3.Administrator Discretion.  The Administrator, in its discretion, may accelerate the vesting of the balance, or some lesser portion of the balance, of the unvested Option at any time, subject to the terms of the Plan.  If so accelerated, such Option will be considered as having vested as of the date specified by the Administrator.
4.Exercise of Option.  This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Agreement.
This Option is exercisable by delivery of an exercise notice, in the form attached as Exhibit B (the “Exercise Notice”) or in a manner and pursuant to such procedures as the Administrator may determine, which will state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice will be completed by Participant and delivered to the Company.  The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares together with any applicable tax withholding.  This Option will be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price.  
5.Method of Payment.  Payment of the aggregate Exercise Price will be by any of the following, or a combination thereof, at the election of Participant:
(a)cash; 
(b)check; or
(c)consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan.
6.Tax Obligations.  
(a)Withholding of Taxes.  Notwithstanding any contrary provision of this Agreement, no certificate representing the Shares will be issued to Participant, unless and until satisfactory arrangements 

(as determined by the Administrator) will have been made by Participant with respect to the payment of income, employment and other taxes which the Company determines must be withheld with respect to such Shares.  To the extent determined appropriate by the Company in its discretion, it will have the right (but not the obligation) to satisfy any tax withholding obligations by reducing the number of Shares otherwise deliverable to Participant.  If Participant fails to make satisfactory arrangements for the payment of any required tax withholding obligations hereunder at the time of the Option exercise, Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.
(b)Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Grant Date, or (ii) the date one (1) year after the date of exercise, Participant will immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant.
(c)Code Section 409A.  Under Code Section 409A, an option that vests after December 31, 2004 that was granted with a per Share exercise price that is determined by the Internal Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the date of grant (a “Discount Option”) may be considered “deferred compensation.”  A Discount Option may result in (i) income recognition by Participant prior to the exercise of the option, (ii) an additional twenty percent (20%) federal income tax, and (iii) potential penalty and interest charges.  The Discount Option may also result in additional state income, penalty and interest charges to the Participant.  Participant acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the per Share exercise price of this Option equals or exceeds the Fair Market Value of a Share on the Date of Grant in a later examination.  Participant agrees that if the IRS determines that the Option was granted with a per Share exercise price that was less than the Fair Market Value of a Share on the date of grant, Participant will be solely responsible for Participant’s costs related to such a determination.
7.Rights as Shareholder.  Neither Participant nor any person claiming under or through Participant will have any of the rights or privileges of a Shareholder of the Company in respect of any Shares deliverable hereunder unless and until certificates representing such Shares will have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to Participant.  After such issuance, recordation and delivery, Participant will have all the rights of a Shareholder of the Company with respect to voting such Shares and receipt of dividends and distributions on such Shares.
8.No Guarantee of Continued Service.  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

9.Address for Notices.  Any notice to be given to the Company under the terms of this Agreement will be addressed to the Company at Omeros Corporation, 1420 Fifth Avenue, Suite 2600, Seattle, Washington 98101, or at such other address as the Company may hereafter designate in writing.
10.Grant is Not Transferable.  This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Participant only by Participant.  
11.Binding Agreement.  Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.
12.Additional Conditions to Issuance of Stock.  If at any time the Company will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company.  The Company will make all reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority.  Assuming such compliance, for income tax purposes the Exercised Shares will be considered transferred to Participant on the date the Option is exercised with respect to such Exercised Shares.
13.Plan Governs.  This Agreement is subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Agreement and one or more provisions of the Plan, the provisions of the Plan will govern.  Capitalized terms used and not defined in this Agreement will have the meaning set forth in the Plan.
14.Administrator Authority.  The Administrator will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any Shares subject to the Option have vested).  All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Company and all other interested persons.  No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.
15.Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to Options awarded under the Plan or future Options that may be awarded under the Plan by electronic means or request Participant’s consent to participate in the Plan by electronic means.  Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any on-line or electronic system established and maintained by the Company or another third party designated by the Company.
16.Captions.  Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.
17.Agreement Severable.  In the event that any provision in this Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement.
18.Modifications to the Agreement.  This Agreement constitutes the entire understanding of the parties on the subjects covered.  Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized 

officer of the Company.  Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without the consent of Participant, to comply with Code Section 409A or to otherwise avoid imposition of any additional tax or income recognition under Code Section 409A in connection to this Option.
19.Amendment, Suspension or Termination of the Plan.  By accepting this Award, Participant expressly warrants that he or she has received an Option under the Plan, and has received, read and understood a description of the Plan.  Participant understands that the Plan is discretionary in nature and may be amended, suspended or terminated by the Company at any time.
20.Governing Law.  This Agreement will be governed by the laws of the State of Washington, without giving effect to the conflict of law principles thereof.  For purposes of litigating any dispute that arises under this Option or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of Washington, and agree that such litigation will be conducted in the courts of King County, Washington, or the federal courts for the United States for the Western District of Washington, and no other courts, where this Option is made and/or to be performed.

EXHIBIT B
OMEROS CORPORATION
2008 EQUITY INCENTIVE PLAN
EXERCISE NOTICE
Omeros Corporation
1420 Fifth Avenue, Suite 2600
Seattle, Washington 98101

Attention:  ___________

1.Exercise of Option.  Effective as of today, ________________, _____, the undersigned (“Purchaser”) hereby elects to purchase ______________ shares (the “Shares”) of the Common Stock of Omeros Corporation (the “Company”) under and pursuant to the 2008 Equity Incentive Plan (the “Plan”) and the Stock Option Agreement dated ________ (the “Agreement”).  The purchase price for the Shares will be $_____________, as required by the Agreement.
2.Delivery of Payment.  Purchaser herewith delivers to the Company the full purchase price of the Shares and any required tax withholding to be paid in connection with the exercise of the Option.
3.Representations of Purchaser.  Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Agreement and agrees to abide by and be bound by their terms and conditions.
4.Rights as Shareholder.  Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a Shareholder will exist with respect to the Shares subject to the Option, notwithstanding the exercise of the Option.  The Shares so acquired will be issued to Participant as soon as practicable after exercise of the Option.  No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 13 of the Plan.
5.Tax Consultation.  Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares.  Purchaser represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice.
6.Entire Agreement; Governing Law.  The Plan and Agreement are incorporated herein by reference.  This Exercise Notice, the Plan and the Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the State of Washington.
Submitted by:                        Accepted by:
PURCHASER                        OMEROS CORPORATION

                                                    

____________________________________    ____________________________________
Signature                        By
____________________________________    ____________________________________        Print Name                        Its
Address:                        

____________________________________                            
                            
____________________________________                                
                            

____________________________________
Date ReceivedExhibit 10.1

September 20, 2013

Michael S. Burnett
18215 North 53rd Street
Scottsdale, Arizona 85254

Re:     Conditional Offer of Employment by Avatar Properties Inc. and 
AV Homes of Arizona, LLC d/b/a AV Homes (“AV Homes”) 

Dear Mike,

I am extremely pleased to extend to you a conditional offer of employment as Executive Vice President & Chief Financial Officer for AV Homes, Inc.

Outlined below are the terms and conditions of employment that we are extending:  

Terms of Employment    
    
Your compensation will be based on an annual salary of $275,000, payable bi-weekly ($10,576.92/check) per AV Homes’ policies and procedures and shall be subject to deductions (employment taxes, deductions and withholdings as are required by law or by further agreement with you).  Your base salary will be subject to periodic review and adjustment by AV Homes.  In addition, you  will be eligible to participate in the AV Homes Annual Incentive Bonus Plan with a  bonus potential of up to 60% of your base salary upon attainment of the specified level of performance contained within the incentive bonus plan for the year in question beginning with calendar year 2014.  The bonus for 2013 will be guaranteed at $50,000 for this time period.  The current Plan is based on 70% Individual Performance and 30% Corporate Performance, as determined by the Compensation Committee and the Chief Executive Officer.  Bonus payments are made annually following determinations of corporate objectives by the Board of Directors of AV Homes, and you must be employed by AV Homes at the time the payment is made.

Also, if the Compensation Committee of the Board of Directors of AV Homes approves, you will be eligible for an annual equity award in the form of restricted stock as described below.  AV Homes will propose that for the 2014 award cycle, you be initially granted shares of restricted stock worth 60% of your base salary with a market value of $165,000.  The current restricted stock share award program is a combination of time based vesting (30%) and performance based vesting (70%), as determined by the Compensation Committee from time-to-time.  The price of the restricted stock used to determine the number of shares to be issued will be the closing price of the common stock of AV Homes as of the date of grant of such shares.  The vesting schedule for all restricted stock, and all other terms and limitations of such grants will be those set forth in the AV Homes Amended and Restated 1997 Incentive and Capital Accumulation Plan (2001 Restatement) (the "ICAP Plan") and in any grant agreement thereunder and may be either time-based or performance-based or both and is subject to the final determination of the board of directors in its sole discretion.  In addition, upon approval of the board of directors you will be eligible to participate in a one-time Stock Option grant for key employees being finalized by the Compensation Committee.  The award for your position will be 65,000 stock options that will vest ratably over a four year period.  

Our employment relationship will be terminable at will. Either you or AV Homes, from a sole discretion standpoint, may terminate your employment at any time for any reason whatsoever. 

In addition to the compensation outlined above, as a full-time employee, you are eligible to participate in our benefits program.  Some of the benefits will begin as early as the first of the month following one month of completed service.

As a condition of employment, all job applicants must voluntarily submit to a urinalysis test screening within 72 hours of an offer having been made for the presence of illegal drugs and alcohol, which may indicate a potential impaired or unsafe job performance.

Additionally, this offer is conditional upon AV Homes completing its standard background and reference checks.

Should you accept this conditional offer of employment, we will be expecting you to start on or before October 14, 2013, unless a different arrangement is determined and agreed in writing.  

Please sign and return a copy of this letter to our HR Department via email at av@hradv.com or via fax at 847-904-1251.  At that time we will send the appropriate paperwork needed for the additional background check and drug testing.

If you should have any questions, please do not hesitate to call me 480-214-7402.

Sincerely,
Roger A. Cregg
President &
Chief Executive Officer

Acceptance is hereby acknowledged:

Signature: __/s/Michael S. Burnett_________________________    Date: ___9/24/13_________

      

8601 N Scottsdale Rd.  Suite 225  | Scottsdale AZ  85253

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