Document:

Exhibit 10.1

 

OPTION AGREEMENT

 

THIS AGREEMENT,
dated as of
[                  ],
is entered into by and between Duratek, Inc., a Delaware corporation (the “Company”),
and an employee of the Company, hereinafter referred to as the “Employee”:

 

RECITALS

 

WHEREAS, the Company wishes to afford the Employee the
opportunity to purchase shares of its $0.01 par value common stock (“Common
Stock”); and

 

WHEREAS, the Company has determined that it would be
to the advantage and best interest of the Company and its shareholders to grant
the Option provided for herein to the Employee as an inducement for the
Employee to remain in the service of the Company or its Subsidiaries and as an
incentive for increased efforts during such service;

 

NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

 

ARTICLE I

CERTAIN DEFINITIONS

 

Whenever the following terms are used in this
Agreement, they shall have the meaning specified below unless the context
clearly indicates to the contrary.  The
masculine pronoun shall include the feminine and neuter, and the singular and
the plural, where the context so indicates.

 

“Agreement” means this Option Agreement.

 

“Board” means the Board of Directors of
Duratek, Inc.

 

“Disability” shall have the meaning assigned to
such term in the Company’s Northwestern Mutual Life group disability insurance
policy number L652259 effective January 1, 1992 or any successor policy
thereto.

 

“Eligible Representative” shall mean, upon
Employee’s death, Employee’s personal representative or such other person as is
empowered under Employee’s will or the then applicable laws of descent and
distribution to exercise Employee’s rights hereunder.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

 

“Market Price” shall mean the closing price of
a share of Common Stock on the NASDAQ National Market, or, if there has been no
sale on the NASDAQ National Market on such day, the average of the highest bid
and lowest asked prices on the NASDAQ National Market at the end of such day.

 

“Option” shall mean the non-qualified option
granted under this Agreement.

 

“Secretary” shall mean the Secretary of the
Company.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended.

 

“Subsidiary” shall mean any corporation in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

 

“Termination of Employment” shall mean the time
when the employee-employer relationship between the Employee and the Company or
a Subsidiary is terminated for any reason, with or without cause, including,
without limitation, a termination by resignation, discharge, death or
retirement, but excluding any termination where there is a simultaneous
reemployment by the Company or a Subsidiary.

 

“Total Option Shares” shall mean the number of
shares of Common Stock set forth in Section 2.1.

 

“Transfer” shall mean, with respect to the
Option, or any Common Stock issued pursuant thereto, any transfer, sale,
assignment, pledge or other disposition thereof.

 

 

ARTICLE II

GRANT OF OPTION

 

2.1                                 Grant of Option. 
On the date hereof, the Company irrevocably grants to the Employee as a
matter of separate agreement and not in lieu of salary or any other
compensation for services, an Option to purchase any part or all of an
aggregate amount shares of Common Stock, referred to in [                     ],
upon and subject to the terms and conditions set forth in this Agreement.

 

2.2                                 Purchase Price. 
The purchase price of the Common Stock covered by the Option shall be $[•] the Market Price per share (without commission or
other charge) on the date hereof.

 

 

ARTICLE III

PERIOD OF EXERCISABILITY

 

3.1                                 Commencement of Exercisability.

 

                                                                                                (a)                                  Subject to Section 3.3, the Option
shall become exercisable in five (5) cumulative installments as follows:

 

                                                                                                                                                (i)                                     One-fifth of the Total Option Shares
shall be immediately exercisable on the first year anniversary.

 

                                                                                                                                                (ii)                                  One-fifth of the Total Option Shares
shall be immediately exercisable on the second year anniversary.

 

                                                                                                                                                (iii)                               One-fifth of the Total Option Shares
shall be immediately exercisable on the third year anniversary.

 

                                                                                                                                                (iv)                              One-fifth of the Total Option Shares
shall be immediately exercisable on the fourth year anniversary.

 

                                                                                                                                                (v)                                 One-fifth of the Total Option Shares
shall be immediately exercisable on the fifth year anniversary.

 

                                                                                                (b)                                 No portion of the Option which is
unexercisable at Termination of Employment shall thereafter become exercisable.

 

3.2                                 Duration of Exercisability. 
The installments provided for in Section 3.1 are cumulative.  Each such installment which becomes
exercisable pursuant to Section 3.1 shall remain exercisable until it
becomes unexercisable under Section 3.3.

 

                                                3.3                                 Expiration of Option. 
The Option may not be exercised to any extent by anyone after the first
to occur of the following events:

 

(a)                        The close of business on [•];

 

                                                                                                (b)                                 One (1) year following the date of the
Employee’s Termination of Employment, provided, however, that such
termination is caused by (i) Employee’s death, (ii) Employee’s retirement on or
after attaining the age of sixty-five (65), or (iii) Employee’s “Long-Term
Disability”. Employee’s “Long-Term Disability” shall be deemed to have occurred
when, due to a Disability, Employee shall have been unable or shall have failed
to perform the essential functions of his position, with or without reasonable
accommodation, and is presently suffering from a Disability, as determined in
the judgment of the Board exercised in good faith and based on competent
advice.  Such one (1) year period shall
be tolled by the number of days during such period as (i) the Employee
possesses material non-public information the possession of which would 

 

 

subject the Employee to liability under the Exchange Act upon purchase
or sale of the Company’s securities, in the reasonable judgment of Employee and
his legal advisors and with the Company’s consent which shall not be
unreasonably withheld (ii) the Employee shall be subject to Section 16(b) of
the Exchange Act; or (iii) the Company has restricted employee stock
transactions due to the presence of material non-public information.

 

                                                                                                (c)                                  Ninety (90) days following the date of
the Employee’s Termination of Employment for any reason other than as provided
in Section 3.3(b).  Such ninety
(90) day period shall be tolled for such time that either (i) the Employee
possesses material non-public information the possession of which would subject
the Employee to liability under the Exchange Act upon purchase or sale of the
Company’s securities; (ii) the Employee shall be subject to Section 16(b) of
the Exchange Act; or (iii) the Company has restricted employee stock
transactions due to the presence of material non-public information.

 

                                                3.4                                 Merger, Consolidation, Acquisition, or
Dissolution of the Company — Effect on Option.

 

                                                (a)                                  In the event of a merger, consolidation, or reorganization of the Company with one or
more other entities in which the Company is not the surviving entity, a sale of
substantially all of the assets of the Company to another entity, or any
transaction (including, without limitation, a merger or reorganization in which
the Company is the surviving entity) approved by the Board that results in any
person or entity (or person or entities acting as a group or otherwise in
concert), owning fifty percent (50%) or more of the combined voting power of
all classes of securities of the Company, the Option shall be assumed or
an equivalent option substituted by any successor corporation to the Company.

 

                                                                                                (b)                                 The aggregate present value of all
parachute payments payable to or for the benefit of Employee, whether payable
to or for the benefit of Employee,
whether payable pursuant to this Agreement or otherwise, shall be limited to three
times the Employee’s base amount less one dollar.  For purposes of this subsection (b),
the terms parachute payment, base amount and present value shall have the
meanings assigned thereto under Section 280G of the Internal Revenue Code (the “Code”).  It is the intention of this subsection (b)
to avoid excise taxes on the Employee under Section 4999 of the Code or the
disallowance of a deduction to the Company pursuant to Section 280G of the
Code.

 

ARTICLE IV

EXERCISE OF OPTION

 

4.1                                 Person Eligible to Exercise. 
During the Employee’s lifetime, only he may exercise the Option, or any
portion thereof.  After the death of the
Employee, any exercisable portion of the Option may, prior to the time when the
Option becomes unexercisable under Section 3.3, be exercised by such
Employee’s Eligible Representative.

 

 

4.2                                 Partial Exercise. 
Any exercisable portion of the Option may be exercised in whole or in
part at any time prior to expiration under Section 3.3; provided,
however, that each exercise shall be for not less than one hundred (100)
shares (or, if less, the maximum number of shares for which the Option is then
exercisable) and shall be for whole shares only.

 

                                                4.3                                 Manner of Exercise. 
The Option, or any portion thereof, may be exercised solely by delivery
to the Board of all of the following prior to the expiration of the Option
under Section 3.3:

 

                                                                                                (a)                                  Notice in writing signed by the Employee
or his Eligible Representative, stating that the Option, or a portion thereof,
is thereby exercised.  Such notice shall
comply with all reasonable rules established by the Board and previously
conveyed in writing to the Employee or his Eligible Representative;

 

                                                                                                (b)                                 Full payment (in cash or by bank or
cashier’s check) for the shares with respect to which such Option, or portion
thereof, is exercised;

 

                                                                                                (c)                                  Unless the shares of Common Stock
acquired are registered prior to the exercise of the Option, a bona fide
written representation and agreement, in a form satisfactory to the Company,
signed by the Employee or his Eligible Representative, stating that the shares
of Common Stock are being acquired for his own account, for investment and
without any present intention of distributing or reselling said shares or any
of them except as may be permitted under the Securities Act and then applicable
rules and regulations thereunder, and that the Employee or his Eligible
Representative, will indemnify the Company against and hold it free and
harmless from any loss, damage, expense or liability resulting to the Company
if any sale or distribution of the shares by such person is contrary to the
representation and agreement referred to above. 
The Company may, in its discretion, take whatever additional actions it
deems appropriate to insure the observance and performance of such
representation and agreement and to effect compliance with the Securities Act
and any other federal or state securities laws or regulations.  Without limiting the generality of the
foregoing, the Company may require an opinion of counsel acceptable to it to
the effect that any subsequent Transfer of shares acquired through exercise of
the Option, or any portion thereof, does not violate the Securities Act, and
may issue stop-transfer orders covering such shares.  Share certificates evidencing the Common Stock
issued on exercise of this Option shall bear an appropriate legend referring to
the provisions of this subsection (c) and the agreements herein.  The written representation and agreement
referred to in the first sentence of this subsection (c) shall, however,
not be required if the shares to be issued pursuant to such exercise have been
registered under the Securities Act, and such registration is then effective in
respect of such shares;

 

                                                                                                (d)                                 Full payment to the Company (or successor
corporation) of all amounts which, under federal, state or local tax law, it is
required to withhold upon exercise of the Option; and

 

 

                                                                                                (e)                                  In the event the Option, or any portion
thereof, shall be exercised pursuant to Section 4.1 by an Eligible
Representative, appropriate proof of the right of such person or persons to
exercise the Option.

 

4.4                                 Conditions to Issuance of Stock
Certificates.  The Common Stock deliverable upon the
exercise of the Option, or a portion thereof, may be either previously
authorized but unissued shares or issued shares which have then been reacquired
by the Company.  Such shares shall be
fully paid and nonassessable.  The
Company shall not be required to issue or deliver any certificate or
certificates for shares of Common Stock purchased upon the exercise of the
Option, or any portion thereof, prior to fulfillment of all of the following
conditions, which the Company shall use its best efforts to satisfy:

 

                                                                                                (a)                                  The admission of such shares to listing
on all stock exchanges on which such class of stock is then listed; and

 

                                                                                                (b)                                 The completion of any registration or
other qualification of such shares under any state or federal law or under
rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Company shall reasonably
determine to be necessary or advisable; and

 

                                                                                                (c)                                  The obtaining of any approval or other
clearance from any state or federal governmental agency which the Company shall
reasonably determine to be necessary or advisable.

 

4.5                                 Rights as Shareholder. 
The holder of the Option shall not be, nor have any of the rights or
privileges of, a shareholder of the Company in respect of any shares
purchasable upon the exercise of any part of the Option unless and until certificates
representing such shares shall have been issued by the Company to such holder.

 

ARTICLE V

OTHER PROVISIONS

 

5.1                                 Option Not Transferable. 
Neither the Option nor any interest or right therein or part thereof
shall be pledged against the debts, contracts or engagements of the Employee or
his successors in interest or shall be subject to disposition by Transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect; provided, however that this Section
5.1 shall not prevent Transfers by will or by the applicable laws of
descent and distribution.

 

5.2                                 Shares to Be Reserved. 
The Company shall at all times during the term of the Option reserve and
keep available the number of shares of Common Stock necessary to satisfy the
Option.

 

 

5.3                                 The Plan.  The Option is
subject in all respects to the terms of the Company’s 1999 Stock Option and
Incentive Plan (the “Plan”) as such Plan may be further amended from time to
time.

 

5.4                                 Complete Agreement. 
This Agreement contains the complete agreement and understanding between
the parties concerning the Option and shall supersede all other agreements,
understandings or commitments between the parties as to such subject
matter.  The parties stipulate that
neither of them has made any representations concerning the subject matter
hereof except such representations as are specifically set forth herein.  Nothing in this Agreement shall confer upon
the Employee any right to continue in the employ of the Company or any
Subsidiary or shall interfere with or restrict in any way the rights of the
Company and its Subsidiaries to discharge the Employee at any time for any
reason whatsoever, with or without cause, except as otherwise may be provided
in any employment agreement between the Company and Employee.

 

                                                5.5                                 Notices.  Except as
otherwise expressly stated, all notices required to be given or which may be
given under this Agreement shall be in writing and shall be deemed to have been
duly given if sent by recognized overnight delivery service, return receipt
requested, addressed as follows:

 

If to the Company:

 

Duratek

10100 Old Columbia Road

Columbia, MD 21046

Attention: 
Corporate Secretary

 

If to Employee:

 

To the address set forth on the separate option letter
agreement.

 

Either party may change the address to which such notices are to be
addressed by notice thereof to the other party in the manner set forth above.

 

                                                5.6                                 Waiver, Modification or Amendment. 
No waiver, modification or amendment of any provision of this Agreement
shall be effective, binding or enforceable unless in writing and signed by the
party against which it is sought to be enforced.

 

5.7                                 Severability. 
If any provision of this Agreement shall be held to be illegal, invalid
or unenforceable under any applicable law, then such contravention or
invalidity shall not invalidate the entire Agreement.  Such provision shall be deemed to be modified
to the extent necessary to render it legal, valid and enforceable, and if no
such modification shall render it legal, valid and enforceable, then this
Agreement shall be 

 

 

construed as if not containing the provision held to be invalid, and
the rights and obligations of the parties shall be construed and enforced
accordingly.

 

5.8                                 Governing Law. 
The validity of this Agreement and of any of the terms or provisions as
well as the rights and duties of the parties hereunder shall be governed by the
laws of the State of Delaware, without reference to any conflict of law or
choice of law, principles in the State of Delaware that might apply the law of
another jurisdiction.

 

5.9                                 Arbitration. 
Any disputes between the parties relating to the terms of this
Agreement, or the breach thereof, shall be submitted to binding arbitration in
Washington, D.C., in accordance with the rules of the American Arbitration
Association.  In the event that either
party desires to arbitrate any such dispute, such party shall so notify the
other party and the parties shall endeavor, for a period of thirty (30) days,
to resolve such dispute without arbitration. 
In the event that the parties cannot resolve the dispute within such
thirty (30) day period, then within ten (10) days thereafter, the parties shall
jointly designate an arbitrator to hear the dispute, or, if the parties are
unable to jointly select an arbitrator, an arbitrator shall be chosen by the
President of the American Arbitration Association from lists of candidates
provided by each of the parties.  The
decision of the arbitrator shall be binding upon the parties.  In the event that Employee prevails in such arbitration,
the Company shall pay the expenses of Employee incurred in connection with such
arbitration.

 

5.10                           Construction. 
Headings or captions of this Agreement are for reference only and are
not to be construed in any way as part of this Agreement, nor in the
interpretation of this Agreement.  The
masculine pronoun shall include the feminine and neuter, and vice versa, where
the context so requires.

 

5.11                           Counterparts. 
This Agreement may be executed in multiple original counterparts, each
of which shall be deemed an original and all or which together shall constitute
but one and the same document.Exhibit 10.2

 

OPTION AGREEMENT

 

 

THIS AGREEMENT,
dated as of
[                     ],
is entered into by and between Duratek, Inc., a Delaware corporation (the “Company”),
and an employee of the Company, hereinafter referred to as the “Employee”:

 

 

RECITALS

 

WHEREAS, the Company wishes to afford the Employee the
opportunity to purchase shares of its $0.01 par value common stock (“Common
Stock”); and

 

WHEREAS, the Company has determined that it would be
to the advantage and best interest of the Company and its shareholders to grant
the Option provided for herein to the Employee as an inducement for the
Employee to remain in the service of the Company or its Subsidiaries and as an
incentive for increased efforts during such service;

 

NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

 

 

ARTICLE I

CERTAIN DEFINITIONS

 

Whenever the following terms are used in this
Agreement, they shall have the meaning specified below unless the context
clearly indicates to the contrary.  The
masculine pronoun shall include the feminine and neuter, and the singular and
the plural, where the context so indicates.

 

“Agreement” means this Option Agreement.

 

“Board” means the Board of Directors of
Duratek, Inc.

 

“Disability” shall have the meaning assigned to
such term in the Company’s Northwestern Mutual Life group disability insurance
policy number L652259 effective January 1, 1992 or any successor policy
thereto.

 

“Eligible Representative” shall mean, upon
Employee’s death, Employee’s personal representative or such other person as is
empowered under Employee’s will or the then applicable laws of descent and
distribution to exercise Employee’s rights hereunder.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

 

“Market Price” shall mean the closing price of
a share of Common Stock on the NASDAQ National Market, or, if there has been no
sale on the NASDAQ National Market on such day, the average of the highest bid
and lowest asked prices on the NASDAQ National Market at the end of such day.

 

“Option” shall mean the non-qualified option
granted under this Agreement.

 

“Secretary” shall mean the Secretary of the
Company.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended.

 

“Subsidiary” shall mean any corporation in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

 

“Termination of Employment” shall mean the time
when the employee-employer relationship between the Employee and the Company or
a Subsidiary is terminated for any reason, with or without cause, including,
without limitation, a termination by resignation, discharge, death or
retirement, but excluding any termination where there is a simultaneous
reemployment by the Company or a Subsidiary.

 

“Total Option Shares” shall mean the number of
shares of Common Stock set forth in Section 2.1.

 

“Transfer” shall mean, with respect to the
Option, or any Common Stock issued pursuant thereto, any transfer, sale,
assignment, pledge or other disposition thereof.

 

 

ARTICLE II

GRANT OF OPTION

 

2.1                                 Grant of Option. 
On the date hereof, the Company irrevocably grants to the Employee as a
matter of separate agreement and not in lieu of salary or any other
compensation for services, an Option to purchase any part or all of an
aggregate amount shares of Common Stock, referred to in [                     ],
upon and subject to the terms and conditions set forth in this Agreement.

 

2.2         Purchase Price. 
The purchase price of the Common Stock covered by the Option shall be $[•] the Market Price per share (without commission or
other charge) on the date hereof.

 

 

ARTICLE III

PERIOD OF EXERCISABILITY

 

3.1                                 Commencement of Exercisability.

 

                                                                                                (a)                                  Subject to Section 3.3, the Option
shall become exercisable in five (5) cumulative installments as follows:

 

                                                                                                                                                (i)                                     One-fifth of the Total Option Shares
shall be immediately exercisable on the first year anniversary.

 

                                                                                                                                                (ii)                                  One-fifth of the Total Option Shares shall
be immediately exercisable on the second year anniversary.

 

                                                                                                                                                (iii)                               One-fifth of the Total Option Shares
shall be immediately exercisable on the third year anniversary.

 

                                                                                                                                                (iv)                              One-fifth of the Total Option Shares
shall be immediately exercisable on the fourth year anniversary.

 

                                                                                                                                                (v)                                 One-fifth of the Total Option Shares
shall be immediately exercisable on the fifth year anniversary.

 

                                                                                                (b)                                 No portion of the Option which is
unexercisable at Termination of Employment shall thereafter become exercisable.

 

3.2                                 Duration of Exercisability. 
The installments provided for in Section 3.1 are cumulative.  Each such installment which becomes
exercisable pursuant to Section 3.1 shall remain exercisable until it
becomes unexercisable under Section 3.3.

 

                                                3.3                                 Expiration of Option. 
The Option may not be exercised to any extent by anyone after the first
to occur of the following events:

 

(a)                        The close of business on [•];

 

                                                                                                (b)                                 One (1) year following the date of the
Employee’s Termination of Employment, provided, however, that such
termination is caused by (i) Employee’s death, (ii) Employee’s retirement on or
after attaining the age of sixty-five (65), or (iii) Employee’s “Long-Term
Disability”. Employee’s “Long-Term Disability” shall be deemed to have occurred
when, due to a Disability, Employee shall have been unable or shall have failed
to perform the essential functions of his position, with or without reasonable
accommodation, and is presently suffering from a Disability, as determined in
the judgment of the Board exercised in good faith and based on competent
advice.  Such one (1) year period shall
be tolled by the number of days during such period as (i) the Employee
possesses material non-public information the possession of which would

 

 

subject the Employee to liability under the Exchange Act upon purchase
or sale of the Company’s securities, in the reasonable judgment of Employee and
his legal advisors and with the Company’s consent which shall not be
unreasonably withheld (ii) the Employee shall be subject to Section 16(b) of
the Exchange Act; or (iii) the Company has restricted employee stock
transactions due to the presence of material non-public information.

 

                                                                                                (c)                                  Ninety (90) days following the date of
the Employee’s Termination of Employment for any reason other than as provided
in Section 3.3(b).  Such ninety
(90) day period shall be tolled for such time that either (i) the Employee
possesses material non-public information the possession of which would subject
the Employee to liability under the Exchange Act upon purchase or sale of the
Company’s securities; (ii) the Employee shall be subject to Section 16(b) of
the Exchange Act; or (iii) the Company has restricted employee stock
transactions due to the presence of material non-public information.

 

                                                3.4                                 Merger, Consolidation, Acquisition, or
Dissolution of the Company — Effect on Option.

 

                                                (a)                                  For purposes of this Stock Option
Agreement and notwithstanding any provision in the Plan to the contrary, the
term “Change in Control” shall mean (i) a merger, consolidation, or
reorganization of the Company with one or more other entities in which the
Company is not the surviving entity, or (ii) a sale of substantially all of the
assets of the Company to another entity.

 

In the event a change in control condition as
described above occurs, the Compensation Committee will consider making a
recommendation to the Board of Directors to vest immediately all outstanding
shares subject to the Option prior to the occurrence of such event.

 

                                                                                                (b)                                 The aggregate present value of all
parachute payments payable to or for the benefit of Employee, whether payable
to or for the benefit of Employee,
whether payable pursuant to this Agreement or otherwise, shall be limited to
three times the Employee’s base amount less one dollar.  For purposes of this subsection (b),
the terms parachute payment, base amount and present value shall have the
meanings assigned thereto under Section 280G of the Internal Revenue Code (the “Code”).  It is the intention of this subsection (b)
to avoid excise taxes on the Employee under Section 4999 of the Code or the
disallowance of a deduction to the Company pursuant to Section 280G of the
Code.

 

 

ARTICLE IV

EXERCISE OF OPTION

 

4.1                                 Person Eligible to Exercise. 
During the Employee’s lifetime, only he may exercise the Option, or any
portion thereof.  After the death of the
Employee, any exercisable portion of the Option may, prior to the time when the
Option becomes unexercisable under Section 3.3, be exercised by such
Employee’s Eligible Representative.

 

4.2                                 Partial Exercise. 
Any exercisable portion of the Option may be exercised in whole or in
part at any time prior to expiration under Section 3.3; provided,
however, that each exercise shall be for not less than one hundred (100)
shares (or, if less, the maximum number of shares for which the Option is then
exercisable) and shall be for whole shares only.

 

                                                4.3                                 Manner of Exercise. 
The Option, or any portion thereof, may be exercised solely by delivery
to the Board of all of the following prior to the expiration of the Option
under Section 3.3:

 

                                                                                                (a)                                  Notice in writing signed by the Employee
or his Eligible Representative, stating that the Option, or a portion thereof,
is thereby exercised.  Such notice shall
comply with all reasonable rules established by the Board and previously
conveyed in writing to the Employee or his Eligible Representative;

 

                                                                                                (b)                                 Full payment (in cash or by bank or
cashier’s check) for the shares with respect to which such Option, or portion
thereof, is exercised;

 

                                                                                                (c)                                  Unless the shares of Common Stock
acquired are registered prior to the exercise of the Option, a bona fide
written representation and agreement, in a form satisfactory to the Company,
signed by the Employee or his Eligible Representative, stating that the shares
of Common Stock are being acquired for his own account, for investment and
without any present intention of distributing or reselling said shares or any
of them except as may be permitted under the Securities Act and then applicable
rules and regulations thereunder, and that the Employee or his Eligible
Representative, will indemnify the Company against and hold it free and
harmless from any loss, damage, expense or liability resulting to the Company
if any sale or distribution of the shares by such person is contrary to the
representation and agreement referred to above. 
The Company may, in its discretion, take whatever additional actions it
deems appropriate to insure the observance and performance of such representation
and agreement and to effect compliance with the Securities Act and any other
federal or state securities laws or regulations.  Without limiting the generality of the
foregoing, the Company may require an opinion of counsel acceptable to it to
the effect that any subsequent Transfer of shares acquired through exercise of
the Option, or any portion thereof, does not violate the Securities Act, and
may issue stop-transfer orders covering such shares.  Share certificates evidencing the Common
Stock issued on exercise of this Option shall bear an appropriate legend
referring to the provisions of this subsection (c) and the agreements
herein.  The written representation and
agreement referred to in the first sentence of this subsection (c)
shall, however, not be required if the shares to be issued pursuant to such 

 

 

exercise have been registered under the Securities Act, and such
registration is then effective in respect of such shares;

 

                                                                                                (d)                                 Full payment to the Company (or successor
corporation) of all amounts which, under federal, state or local tax law, it is
required to withhold upon exercise of the Option; and

 

                                                                                                (e)                                  In the event the Option, or any portion
thereof, shall be exercised pursuant to Section 4.1 by an Eligible
Representative, appropriate proof of the right of such person or persons to
exercise the Option.

 

4.4                                 Conditions to Issuance of Stock
Certificates.  The Common Stock deliverable upon the
exercise of the Option, or a portion thereof, may be either previously
authorized but unissued shares or issued shares which have then been reacquired
by the Company.  Such shares shall be
fully paid and nonassessable.  The
Company shall not be required to issue or deliver any certificate or
certificates for shares of Common Stock purchased upon the exercise of the
Option, or any portion thereof, prior to fulfillment of all of the following
conditions, which the Company shall use its best efforts to satisfy:

 

                                                                                                (a)                                  The admission of such shares to listing
on all stock exchanges on which such class of stock is then listed; and

 

                                                                                                (b)                                 The completion of any registration or
other qualification of such shares under any state or federal law or under
rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Company shall reasonably determine
to be necessary or advisable; and

 

                                                                                                (c)                                  The obtaining of any approval or other
clearance from any state or federal governmental agency which the Company shall
reasonably determine to be necessary or advisable.

 

4.5                                 Rights as Shareholder. 
The holder of the Option shall not be, nor have any of the rights or
privileges of, a shareholder of the Company in respect of any shares
purchasable upon the exercise of any part of the Option unless and until
certificates representing such shares shall have been issued by the Company to
such holder.

 

ARTICLE V

OTHER PROVISIONS

 

5.1                                 Option Not Transferable. 
Neither the Option nor any interest or right therein or part thereof
shall be pledged against the debts, contracts or engagements of the Employee or
his successors in interest or shall be subject to disposition by Transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including

 

 

bankruptcy), and any attempted disposition thereof shall be null and
void and of no effect; provided, however that this Section 5.1
shall not prevent Transfers by will or by the applicable laws of descent and
distribution.

 

5.2                                 Shares to Be Reserved. 
The Company shall at all times during the term of the Option reserve and
keep available the number of shares of Common Stock necessary to satisfy the
Option.

 

5.3                                 The Plan.  The Option is
subject in all respects to the terms of the Company’s 1999 Stock Option and
Incentive Plan (the “Plan”) as such Plan may be further amended from time to
time.

 

5.4                                 Complete Agreement. 
This Agreement contains the complete agreement and understanding between
the parties concerning the Option and shall supersede all other agreements,
understandings or commitments between the parties as to such subject
matter.  The parties stipulate that
neither of them has made any representations concerning the subject matter
hereof except such representations as are specifically set forth herein.  Nothing in this Agreement shall confer upon
the Employee any right to continue in the employ of the Company or any
Subsidiary or shall interfere with or restrict in any way the rights of the
Company and its Subsidiaries to discharge the Employee at any time for any
reason whatsoever, with or without cause, except as otherwise may be provided
in any employment agreement between the Company and Employee.

 

                                                5.5                                 Notices.  Except as
otherwise expressly stated, all notices required to be given or which may be
given under this Agreement shall be in writing and shall be deemed to have been
duly given if sent by recognized overnight delivery service, return receipt
requested, addressed as follows:

 

If to the Company:

 

Duratek

10100 Old Columbia Road

Columbia, MD 21046

Attention: 
Corporate Secretary

 

If to Employee:

 

To the address set forth on the signature page.

 

Either party may change the address to which such notices are to be
addressed by notice thereof to the other party in the manner set forth above.

 

                                                5.6                                 Waiver, Modification or Amendment. 
No waiver, modification or amendment of any provision of this Agreement
shall be effective, binding or enforceable unless in writing and signed by the
party against which it is sought to be enforced.

 

 

5.7                                 Severability. 
If any provision of this Agreement shall be held to be illegal, invalid
or unenforceable under any applicable law, then such contravention or
invalidity shall not invalidate the entire Agreement.  Such provision shall be deemed to be modified
to the extent necessary to render it legal, valid and enforceable, and if no
such modification shall render it legal, valid and enforceable, then this
Agreement shall be construed as if not containing the provision held to be
invalid, and the rights and obligations of the parties shall be construed and
enforced accordingly.

 

5.8                                 Governing Law. 
The validity of this Agreement and of any of the terms or provisions as
well as the rights and duties of the parties hereunder shall be governed by the
laws of the State of Delaware, without reference to any conflict of law or
choice of law, principles in the State of Delaware that might apply the law of
another jurisdiction.

 

5.9                                 Arbitration. 
Any disputes between the parties relating to the terms of this
Agreement, or the breach thereof, shall be submitted to binding arbitration in
Washington, D.C., in accordance with the rules of the American Arbitration
Association.  In the event that either
party desires to arbitrate any such dispute, such party shall so notify the
other party and the parties shall endeavor, for a period of thirty (30) days,
to resolve such dispute without arbitration. 
In the event that the parties cannot resolve the dispute within such
thirty (30) day period, then within ten (10) days thereafter, the parties shall
jointly designate an arbitrator to hear the dispute, or, if the parties are
unable to jointly select an arbitrator, an arbitrator shall be chosen by the
President of the American Arbitration Association from lists of candidates
provided by each of the parties.  The
decision of the arbitrator shall be binding upon the parties.  In the event that Employee prevails in such
arbitration, the Company shall pay the expenses of Employee incurred in connection
with such arbitration.

 

5.10                           Construction. 
Headings or captions of this Agreement are for reference only and are
not to be construed in any way as part of this Agreement, nor in the
interpretation of this Agreement.  The
masculine pronoun shall include the feminine and neuter, and vice versa, where
the context so requires.

 

5.11                           Counterparts. 
This Agreement may be executed in multiple original counterparts, each
of which shall be deemed an original and all or which together shall constitute
but one and the same document.

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