Document:

optionagreement.htm

  

  

  

Alexandria Claims Option Agreement

 

THIS AGREEMENT is dated for reference the 12th day of March, 2011

 

BETWEEN:

 

ANK CONSULTING, LLC of 2533 N. Carson Street, Suite 4127, Carson City, Nevada

 

89706

 

(Optionor)

 

AND:

 

OF THE FIRST PART

 

PEPPER ROCK RESOURCES CORP., of 8200 Wilshire Blvd., Suite 200, Beverly Hills,

 

California, U.S.A. 90211

 

(Optionee) OF THE SECOND PART

 

WHEREAS

 

WHEREAS the Optionor is the full beneficial optionee of certain mineral claims described in

 

Schedule "A" attached hereto and forming part of this Agreement (hereinafter called "the claims")

 

AND WHEREAS the Optionor desires to grant an Option to Purchase the claims to the Optionee

 

and the Optionee is desirous of obtaining an Option to Purchase the claims upon the terms and

 

conditions hereof.

 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual

 

covenants, agreements and provisos hereinafter contained, the parties hereto agree as follows:

 

1. The Optionor hereby gives and grants to the Optionee the sole and exclusive option to purchase

 

the claims for the sum of $400,000.00 (hereinafter called the "Purchase Price").

 

2. The Purchase Price of $400,000.00 shall be paid as follows:

 

(a) The sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00) on or

 

before March 18, 2011

 

(b) The sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) on or before

 

April 01, 2012

 

(c) The sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) on or before

 

April 01, 2013

 

(d) The sum of FIFTY THOUSAND DOLLARS ($50,000.00) on or before April 01,

 

2014

 

Notwithstanding the procedure set forth herein, the Optionee may, at any time and, at its sole

 

election complete the payment of the Purchase Price, which payment shall be the Purchase Price

 

less all payments made hereunder to the date of its election to complete payment of the Purchase

 

Price.

 

3. Upon completion of the Purchase Price herein, the Optionor shall transfer all right, title, and

 

interest of the Optionor in the said claims to the Optionee, or its assignee, absolutely save and

 

except that a three percent (3%) Net Smelter Return interest shall continue to be a charge against

 

the claims in favor of the Optionor. The Optionee shall have the option to purchase the Net

 

Smelter Return by paying the Optionor Five Hundred Thousand Dollars ($500,000).

 

4. In addition to the payment of the Purchase Price herein, the Optionee shall pay to the Optionor,

 

three percent (3%) of the Net Smelter Returns received from the claims commencing when the

 

claims are brought into commercial production and throughout the entire commercial lifetime of

 

the claims, provided that mining operations are being conducted thereon. The Net Smelter Return

 

payments shall be payable upon the 31st day of December in each year during which mining

 

operations have been conducted on the claims.

 

For the purpose of this Agreement, "Net Smelter Returns" shall mean the amount received from a

 

smelter upon the sale of all metals removed from ores, minerals or concentrates after deducting

 

from the gross value the cost of smelting and actual freight or haulage charges from the claims to

 

the smelter; and the term "Smelter" shall mean conventional smelters as well as any other type of

 

production plant used in lieu of a conventional smelter to reduce ores or concentrates.

 

5. It is hereby provided that the Optionee, its servants, agents and·workmen shall have the

 

exclusive right forthwith to access to and from and to enter upon and take possession of and

 

prospect, develop and mine the claims in such manner as it in its sole discretion may deem

 

advisable, and shall have the right to remove and ship there from all ores, bullions, concentrates

 

and minerals recovered in any way or manner therefrom and to dispose of the same as it shall

 

think fit (subject to the Optionor three percent (3%) Net Smelter Return).

 

6. The Optionor covenants and agrees with the Optionee as follows:

 

(a) That the claims are in good standing and that they have good title to the claims and the

 

right to enter into this Agreement and to dispose of the claims.

 

(b) That the claims are free and clear of encumbrances, liens or charges.

 

7. The Optionee covenants and agrees with the Optionor that during the term ofthis option:

 

(a) It shall carry out and record work for assessment purposes as required to maintain the

 

property in good standing, and record a minimum of two (2) years assessment work in

 

favor of the property in each year of the payment schedule of this agreement.

 

(b) It shall keep the claims clear of liens, and any other charges arising from his

 

operations and keep the Optionor indemnified in respect thereof.

 

(c) It shall carry on all operations on the claims in a good and miner-like manner and in

 

accordance with standard engineering, and technical practices.

 

(d) It shall allow the Optionor, or any duly authorized agent of the Optionor, to inspect the

 

claims at reasonable times.

 

8. Upon termination of this Agreement, prior to payment in full:

 

(a) The Optionee shall deliver to the Optionor copies of all data obtained by it including

 

geological, geochemical, geophysical reports, maps, drill logs, assay results, etc.

 

(b) The Optionee shall have the right to remove from the claims during the first six (6)

 

months after such termination, such equipment, tools, materials and supplies brought and

 

placed thereon by it during the currency of this Agreement. Any equipment, tools,

 

materials or supplies and ore already mined and not removed during this period shall

 

become the property of the Optionor.

 

(c) The Optionee shall be responsible for any required reclamation pertaining to work

 

performed in the lifetime of this agreement.

 

9. This is an option only and except as specifically provided otherwise, nothing herein contained

 

shall be construed as obligating the Optionee to do any acts or make any payments hereunder and

 

any act or acts, or payment or payments as shall be made hereunder shall not be construed as

 

obligating the Optionee to do any further act or make any further payment. If this Agreement is

 

terminated the Optionee shall not be bound thereafter in debt, damages or otherwise under this

 

Agreement; excepting obligations and commitments made during the life of this Option

 

Agreement and not settled or performed as of the date of the termination of this Option

 

Agreement such as paying outstanding wages, reclamation costs, transportation costs, equipment

 

rentals or any other unpaid debts directly connected with the Optionees work and for which the

 

Optionee is responsible.

 

IO.All payments theretofore paid by the Optionee shall be retained by the Optionor in

 

consideration for entering into this Agreement and for the rights conferred on the Optionee

 

thereby.

 

l1.The time for performance for any act or making any payment required under this Agreement

 

shall be extended by the period of any delay or inability to perform to the extent that such delay

 

or inability to perform is due to fire, strikes, labor disturbances, riots, civil_ commotion, wars

 

(whether de facto or formally declared), acts of God, any present or future law or governmental

 

regulations, any shortages of labor, equipment or materials or any other cause beyond the control

 

of the party in default.

 

12.Any notice which either party may desire to give to the other party may be sent by registered

 

mail to the address of such party as herein before contained. Any notice shall be deemed to be

 

given upon the day following the mailing of the same by prepaid or registered mail and/or fax or

 

other rnutually acceptable form of communication.

 

13. Any party may at any time give notice in writing to the others of any change of address, and

 

from and after the giving of such notice, the address therein specified will be deemed to be the

 

address of such party for the purposes of giving notice hereunder.

 

14. The parties hereto agree to execute all such further or other assurances and documents and to

 

do or cause to be done all acts or things necessary to implement and carry into effect the

 

provisions and intent of this Agreement.

 

15. This Agreement shall enure to the benefit of the parties hereto, their respective heirs,

 

executors, administrators, successors or assigns, as the case may be.

 

IN WITNESS WHEREOF the parties have executed this Agreement as of the day, month and

 

year first above written.

 

ANK CONSULTING, LLC PEPPER ROCK RESOURCES CORP.

 

PER: PER:

 

W.D. Charters Don Nicholson

 

Authorized Signatory President

 

SCHEDULE "A"

 

Claim Tenure # Current Expiry Date

 

MINERAL CREEK 606384 August/02/2011

 

MC 1 606543 August/02/2011

 

MC2 606545 August/02/2011

 

WHITE BEAUTY 521629 October/21/2011

 

ALEXANDRIA 537361 October/21/2011

 

MC EXTRA 705226 November/02/2011

 

MCROAD 848429 March/09/2012Exhibit 10.2

 

STAG INDUSTRIAL, INC. 
 2011 EQUITY INCENTIVE PLAN

 

1.                                      Establishment, Purpose and Types of Awards

 

STAG Industrial, Inc. (the “Company”) hereby establishes the STAG Industrial, Inc. 2011 Equity Incentive Plan (the “Plan”).  The purpose of the Plan is to promote the long-term growth and profitability of the Company and its Affiliates by (i) providing key people with incentives to improve shareholder value and to contribute to the growth and financial success of the Company and its Affiliates through their future services, and (ii) enabling the Company and its Affiliates to attract, retain and reward the best-available persons.

 

The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and nonstatutory stock options), stock appreciation rights, restricted or unrestricted stock awards, performance awards and other stock-based awards in the Company, or any combination of the foregoing.

 

2.                                      Definitions

 

Under this Plan, except where the context otherwise indicates, the following definitions apply:

 

(a)                                  “Administrator” means the Board or the committee(s) or officer(s) appointed by the Board that have authority to administer the Plan as provided in Section 3 hereof.

 

(b)                                 “Affiliate” means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and partnerships).  For this purpose, “control” shall mean ownership of 50% or more of the total combined voting power or value of all classes of stock or interests of the entity, or the power to direct the management and policies of the entity, by contract or otherwise.

 

(c)                                  “Award” means with respect to the Company, any stock option, stock appreciation right, stock award, restricted stock unit, performance award, or other stock-based award (including an LTIP Unit).

 

(d)                                 “Board” means the Board of Directors of the Company.

 

(e)                                  “Change in Control” means:  (i) the acquisition in one or more transactions by any Person, as defined in this Section 2(e), of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (A) the then outstanding shares of Common Stock, or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors; (ii) the closing of a sale or other conveyance of all or substantially all of the assets of the Company other than a sale or other conveyance by the Company to an entity at least 50% of the combined voting power of the voting securities of which are owned by the stockholders of the Company in substantially the same proportion as their ownership of the Common Stock immediately prior to such sale or other conveyance; (iii) the effective time of any merger, share exchange, consolidation, or other business combination involving the Company or a direct or indirect subsidiary of the Company that results in the voting securities of the Company outstanding immediately prior to such transaction representing (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) less than 50% of the combined voting power of the securities of the surviving entity or its parent outstanding 

 

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immediately after such transaction; (iv) during any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new director or directors (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in clause (i), (ii) or (iii)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two-year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or (v) approval by the stockholders of the Company of the liquidation or dissolution of the Company; provided, however, that for purposes of any Award or subplan that constitutes a “nonqualified deferred compensation plan,” within the meaning of Code section 409A, the Administrator, in its discretion, may specify a different definition of Change in Control in order to comply with the provisions of Code section 409A.  For purposes of this Section 2(e), a “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company; an underwriter of the Common Stock in a registered public offering; or any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the Common Stock.

 

(f)                                    “Code” means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

 

(g)                                 “Common Stock” means shares of common stock of the Company.

 

(h)                                 “Fair Market Value” means, with respect to a share of the Company’s Common Stock for any purpose on a particular date, the value determined by the Administrator in good faith.  However, if the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended, and listed for trading on a national exchange or market, “Fair Market Value” means, as applicable, (i) either the closing price or the average of the high and low sale price on the relevant date, as determined in the Administrator’s discretion, quoted on the New York Stock Exchange, the American Stock Exchange, the Nasdaq Global Select Market, or the Nasdaq Global Market; (ii) the last sale price on the relevant date quoted on the Nasdaq Capital Market; (iii) the average of the high bid and low asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the closing bid and asked prices on the relevant date furnished by a professional market maker for the Common Stock, or by such other source, selected by the Administrator.  If no public trading of the Common Stock occurs on the relevant date but the shares are so listed, then Fair Market Value shall be determined as of the last date before the relevant date on which trading of the Common Stock did occur.  For all purposes under this Plan, the term “relevant date” as used in this Section 2(h) means either the date as of which Fair Market Value is to be determined or the next preceding date on which public trading of the Common Stock occurs, as determined in the Administrator’s discretion.

 

(i)                                     “Grant Agreement” means a written document, including an electronic writing acceptable to the Administrator, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan.

 

(j)                                     “IPO” means the consummation of the first fully underwritten, firm commitment public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale by the Company of its equity securities, or such other event as a result of or following which the Common Stock shall be publicly held.

 

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(k)                                  “LTIP Unit” means an LTIP Unit as defined in the Partnership’s partnership agreement. An LTIP Unit granted under this Plan represents the right to receive the benefits, payments or other rights set forth in that partnership agreement, subject to the terms and conditions of the applicable Grant Agreement and the partnership agreement.

 

(l)                                     “Partnership” means STAG Industrial Operating Partnership, L.P.

 

3.                                      Administration

 

(a)                                  Administration of the Plan.  The Plan shall be administered by the Board or by such committee or committees as may be appointed by the Board from time to time.  To the extent allowed by applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than stock Awards) to other officers and employees of the Company and its Affiliates (including the Partnership), and, to the extent of such authorization, such officer or officers shall be the Administrator.

 

(b)                                 Powers of the Administrator.  The Administrator shall have all the powers vested in it by the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish programs for granting Awards.

 

The Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to:  (i) determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii) determine the types of Awards to be granted; (iii) determine the number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that, except as provided in Section 6 or 7(d) of the Plan, any modification that would materially adversely affect any outstanding Award (e.g., an extension of the vesting period) shall not be made without the consent of the holder); (vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award; (vii) establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any purpose, including but not limited to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans, and prescribe, amend and rescind rules and regulations relating to such sub-plans.

 

The Administrator shall have full power and authority, in its sole and absolute discretion, to administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and interpret such rules, regulations, agreements, guidelines and instruments for the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent the Administrator shall deem it desirable to carry it into effect.

 

Notwithstanding any provision of the Plan to the contrary, neither the Board nor the Administrator shall have the authority to take any of the following actions, unless the shareholders of the Company have approved such an action within twelve (12) months prior to such an event: (i) the reduction of the exercise price of any outstanding stock option or Stock Appreciation Right under the 

 

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Plan; (ii) the cancellation of any outstanding stock option or Stock Appreciation Right under the Plan and the grant in substitution therefor of (1) a new stock option or Stock Appreciation Right under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (2) a restricted stock Award (including a share bonus), (3) an other stock-based Award, (4) a restricted stock unit, (5) a performance award, (6) cash and/or (7) other valuable consideration (as determined by the Board, in its sole discretion); or (iii) any other action that is treated as a repricing under generally accepted accounting principles.

 

(c)                                  Non-Uniform Determinations.  The Administrator’s determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated.

 

(d)                                 Limited Liability.  To the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision made in good faith relating to the Plan or any Award thereunder.

 

(e)                                  Indemnification.  To the maximum extent permitted by law and by the Company’s charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan.

 

(f)                                    Effect of Administrator’s Decision.  All actions taken and decisions and determinations made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and binding on all parties concerned, including the Company and the Partnership, the Company’s shareholders, the Partnership’s members, any participants in the Plan and any other employee, consultant, or director of the Company or the Partnership, and their respective successors in interest.

 

4.                                      Shares Available for the Plan; Maximum Awards

 

Subject to adjustments as provided in  Section 7(c) of the Plan, the shares of Common Stock that may be issued with respect to Awards granted under the Plan, in the aggregate, shall not exceed 7.5% of the issued and outstanding shares of Common Stock as of the later of the date of the IPO or the last closing date of any shares of Common Stock sold solely to cover overallotments in connection with the IPO (on a fully diluted basis (assuming, if applicable, the exercise of all outstanding options, the conversion of all warrants and convertible securities into shares of Common Stock and the exchange of all interests in the Partnership that may be convertible into shares of Common Stock) and including shares of Common Stock solely to cover overallotments, but excluding any shares of Common Stock issued or issuable under the Plan).  1,300,000 shares of Common Stock may be issued as incentive stock options to qualify under Code section 422.  The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in  Section 7(c) of the Plan. The issuance of any share of Common Stock shall result in a reduction of the number of shares of Common Stock available for Awards. Awards that are LTIP Units shall reduce the maximum aggregate number of shares of Common Stock that may be issued under this Plan on a one-for-one basis, i.e., each such unit shall be treated as an award of shares of Common Stock.  If any Award, or portion of an Award, granted under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or canceled, then any 

 

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shares of Common Stock and any LTIP Units covered by such lapsed, cancelled, expired, unexercised or cash-settled portion of such Award shall be available for the grant of other Awards under this plan.

 

Subject to adjustments as provided in Section 7(c) of the Plan, the maximum number of shares of Common Stock subject to Awards in the form of stock options and/or Stock Appreciation Rights that may be granted during any one fiscal year of the Company  to any one individual under this Plan shall be limited to 500,000 shares.  Subject to adjustments as provided in Section 7(c) of the Plan, the maximum number of performance awards that may be granted to any individual shall, with respect to Awards representing the right to receive shares of Common Stock, not to exceed 500,000 shares in any one fiscal year of the Company, and with respect to performance awards payable in cash, not to exceed $2,000,000 in any one fiscal year of the Company.  Such per-individual limits shall not be adjusted to effect a restoration of shares of Common Stock with respect to which the related Award is terminated, surrendered or canceled.

 

Upon the exercise of any Award granted in tandem with any other Award, the related Award will be cancelled to the extent as to which the Award is exercised and, notwithstanding anything in this Plan to the contrary, that number of shares of Common Stock will no longer be available for grant.

 

5.                                      Participation

 

Participation in the Plan shall be open to all employees, officers, and directors of, and other individuals providing bona fide services to or for, the Company, or of any Affiliate of the Company (including the Partnership), as may be selected by the Administrator from time to time. The Administrator may also grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date the individual first performs services for the Company or an Affiliate (including the Partnership), provided that such Awards shall not become vested or exercisable, and no shares shall be issued to such individual, prior to the date the individual first commences performance of such services.

 

6.                                      Awards

 

The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan.  Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to outstanding Awards.  All Awards are subject to the terms and conditions provided in the Grant Agreement.

 

(a)                                  Stock Options.  The Administrator may from time to time grant to eligible participants Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock options; provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any current or hereafter existing “parent corporation” or “subsidiary corporation,” as defined in Code sections 424(e) and (f), respectively, of the Company and any other individuals who are eligible to receive incentive stock options under the provisions of Code section 422.  Options shall have an exercise price at least equal to Fair Market Value as of the date of grant.  No stock option shall be an incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such stock option.  No option shall have a term longer than ten (10) years duration.

 

(b)                                 Stock Appreciation Rights.  The Administrator may from time to time grant to eligible participants Awards of Stock Appreciation Rights (“SAR”).  A SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of 

 

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Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or portion thereof, which is exercised.  The base price per share specified in the Grant Agreement shall not be less than the Fair Market Value on the grant date.  No SAR shall have a term longer than ten years’ duration.  Payment by the Company of the amount receivable upon any exercise of a SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator or as specified in the Grant Agreement.  If upon settlement of the exercise of a SAR a grantee is to receive a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date.  No fractional shares shall be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated.

 

(c)                                  Stock Awards.  The Administrator may from time to time grant restricted or unrestricted stock Awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine.  A stock Award may be paid in Common Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion of the Administrator.

 

(d)                                 Restricted Stock Units.  The Administrator may from time to time grant Awards to eligible participants denominated in stock-equivalent units (“Restricted Stock Units”) in such amounts and on such terms and conditions as it shall determine.  Restricted Stock Units granted to a participant shall represent the right at a future date to be settled in Common Stock, in cash or in a combination of the two.  Except as otherwise provided in the applicable Grant Agreement, the grantee shall not have the rights of a shareholder with respect to any shares of Common Stock represented by a Restricted Stock Unit until such Restricted Stock Unit is settled.

 

(e)                                  Performance Awards.  The Administrator may, in its discretion, grant performance awards which become payable on account of attainment of one or more performance goals established by the Administrator.  Performance awards may be paid by the delivery of Common Stock or cash, as determined in the sole discretion of the Administrator.  Notwithstanding anything to the contrary herein, certain awards granted under this Section 6(e) may be granted in a manner which is intended to be deductible by the Company under Section 162(m) of the Code (or any successor section thereto) (“Performance-Based Awards”). A participant’s Performance-Based Award shall be determined based on the attainment of written performance goals approved by the Administrator for a performance period established by the Administrator (i) while the outcome for that performance period is substantially uncertain and (ii) no more than 90 days after the commencement of the performance period to which the performance goal relates or, if less, the number of days which is equal to 25 percent of the relevant performance period. The performance goals, which must be objective, shall be based upon one or more of the following criteria: (i) consolidated earnings before or after taxes (including earnings before interest, taxes, depreciation and amortization); (ii) net income; (iii) operating income; (iv) earnings per share; (v) book value per share; (vi) return on shareholders’ equity; (vii) expense management; (viii) return on investment; (ix) improvements in capital structure; (x) profitability of an identifiable business unit or product; (xi) maintenance or improvement of profit margins; (xii) stock price; (xiii) revenues or sales; (xiv) costs; (xv) cash flow, funds from operations or similar measure; and (xvi) return on assets. The foregoing criteria may relate to the Company, one or more of its Affiliates or one or more of its or their divisions or units, or any combination of the foregoing, and may be applied on an absolute basis and/or be relative to prior years for the Company, one or more peer group companies or indices, or any combination thereof, all as the Administrator shall determine. In addition, to the degree consistent with Section 162(m) of the Code (or any successor section thereto), the performance goals may be calculated without regard to extraordinary items. The Administrator shall determine whether, 

 

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with respect to a performance period, the applicable performance goals have been met with respect to a given participant and, if they have, shall so certify and ascertain the amount of the applicable Performance-Based Award. No Performance-Based Awards will be paid for such performance period until such certification is made by the Administrator. The amount of the Performance-Based Award actually paid to a given Participant may be less than the amount determined by the applicable performance goal formula, at the discretion of the Administrator. The amount of the Performance-Based Award determined by the Administrator for a performance period shall be paid to the participant at such time as determined by the Administrator in its sole discretion after the end of such performance period; provided, however, that a participant may, if and to the extent permitted by the Board and consistent with the provisions of Sections 162(m) and 409A of the Code, elect to defer payment of a Performance-Based Award.

 

(f)                                    Other Stock-Based Awards.  The Administrator may from time to time grant other stock-based awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine.  Other stock-based awards may be denominated in cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation units, in securities or debentures convertible into Common Stock (including LTIP Units), or in any combination of the foregoing and may be paid in Common Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Administrator; provided, however, that the grant of the LTIP Units must satisfy the requirements of the partnership agreement of the Partnership as in effect on the date of the grant.

 

7.                                      Miscellaneous

 

(a)                                  Withholding of Taxes.  Grantees and holders of Awards shall pay to the Company or its Affiliate (including the Partnership), or make provision satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability.  The Company or its Affiliate may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award.  In the event that payment to the Company or its Affiliate of such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation.

 

(b)                                 Transferability.  Except as otherwise determined by the Administrator, and in any event in the case of an incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan shall be transferable by a grantee otherwise than by will or the laws of descent and distribution.  Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee is under a legal disability, by the grantee’s guardian or legal representative.

 

(c)                                  Adjustments for Corporate Transactions and Other Events.

 

(i)                                     Stock Dividend, Stock Split and Reverse Stock Split.  In the event of a stock dividend of, or stock split or reverse stock split affecting, the Common Stock, (A) the maximum number of shares of such Common Stock as to which Awards may be granted under this Plan and the maximum number of shares with respect to which Awards may be granted during any one fiscal year of the Company to any individual, as provided in Section 4 of the Plan, and (B) the number of shares covered by and the exercise price and other terms of outstanding Awards, shall, without further action of the 

 

7

 

Board, be adjusted to reflect such event.  The Administrator may make adjustments, in its discretion, to address the treatment of fractional shares and fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split.

 

(ii)                                  Non-Change in Control Transactions.  Except with respect to the transactions set forth in Section 7(c)(i), in the event of any change affecting the Common Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in Control of the Company, the Administrator, in its discretion and without the consent of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which Awards may be granted under the Plan, in the aggregate and with respect to any individual during any one fiscal year of the Company, as provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not limited to modifying the number, kind and price of securities subject to Awards.

 

(iii)                               Change in Control Transactions.  In the event of any transaction resulting in a Change in Control of the Company, outstanding stock options and other Awards that are payable in or convertible into Common Stock under this Plan will terminate upon the effective time of such Change in Control unless provision is made in connection with the transaction for the continuation or assumption of such Awards by, or for the substitution of the equivalent awards, as determined in the sole discretion of the Administrator, of, the surviving or successor entity or a parent thereof.  In the event of such termination, (A) the outstanding stock options and other Awards that will terminate upon the effective time of the Change in Control shall become fully vested immediately before the effective time of the Change in Control, and (B) the holders of stock options and other Awards under the Plan will be permitted, immediately before the Change in Control, to exercise or convert all portions of such stock options or other Awards under the Plan that are then exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the Change in Control.

 

(iv)                              Unusual or Nonrecurring Events.  The Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate (including the Partnership), or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(d)                                 Substitution of Awards in Mergers and Acquisitions.  Awards may be granted under the Plan from time to time in substitution for awards held by employees, officers, consultants or directors of entities who become or are about to become employees, officers, consultants or directors of the Company or an Affiliate (including the Partnership),  as the result of a merger or consolidation of the employing entity with the Company or an Affiliate (including the Partnership), or the acquisition by the Company or an Affiliate (including the Partnership), of the assets or stock of the employing entity.  The terms and conditions of any substitute Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the substitute Awards to the provisions of the awards for which they are substituted.

 

(e)                                  Termination, Amendment and Modification of the Plan.  The Board may terminate, amend or modify the Plan or any portion thereof at any time subject to stockholder approval as required by applicable law or applicable stock exchange listing rules.  Except as otherwise determined by the 

 

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Board, termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

(f)                                    Non-Guarantee of Employment or Service.  Nothing in the Plan or in any Grant Agreement thereunder shall confer any right on an individual to continue in the service of the Company, an Affiliate or the Partnership and shall not interfere in any way with the right of the Company, its Affiliates or the Partnership to terminate such service at any time with or without cause or notice and whether or not such termination results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s interests under the Plan.

 

(g)                                 No Trust or Fund Created.  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company, its Affiliates or the Partnership and a grantee or any other person.  To the extent that any grantee or other person acquires a right to receive payments pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor.

 

(h)                                 Forfeiture Events.

 

(i)                                     A Grant Agreement may specify that the participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award.  Such events may include, but shall not be limited to, termination of service for cause or any act by a participant, whether before or after termination of service, that would constitute cause for termination of service.

 

(ii)                                  If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, any participant who knowingly or through gross negligence engaged in the misconduct, or who knowingly or through gross negligence failed to prevent the misconduct, and any participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, shall reimburse the Company for (i) the amount of any payment in settlement of an Award received by such participant during the twelve- (12-) month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement, and (ii) any profits realized by such participant from the sale of securities of the Company during such twelve- (12-) month period.  In addition, Grant Agreements shall contain such other claw back or recoupment policies as may be required by applicable law or Company or Affiliate (including the Partnership) policies.

 

(i)                                     Governing Law.  Except to the extent otherwise specified in the Grant Agreement, the validity, construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the Commonwealth of Massachusetts, without regard to its conflict of laws principles.

 

(j)                                     409A Savings Clause.  The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, Code section 409A.  The Plan and all Awards granted under the Plan shall be administered, interpreted, and construed in a manner consistent with Code section 409A 

 

9

 

to the extent necessary to avoid the imposition of additional taxes under Code section 409A(a)(1)(B).  Should any provision of the Plan, any Grant Agreement, or any other agreement or arrangement contemplated by the Plan be found not to comply with, or otherwise be exempt from, the provisions of Code section 409A, such provision shall be modified and given effect (retroactively if necessary), in the sole discretion of the Administrator, and without the consent of the holder of the Award, in such manner as the Administrator determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Code section 409A.  Notwithstanding anything in the Plan to the contrary, in no event shall the Administrator exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the meaning of Code section 409A unless, and solely to the extent, that such accelerated payment or settlement is permissible under Treasury Regulation section 1.409A-3(j)(4) or any successor provision.

 

(k)                                  Effective Date; Termination Date.  The Plan is effective as of the date on which the Plan is adopted by the Board, subject to approval of the shareholders within twelve months before or after such date.  No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the effective date of the Plan, or if earlier, the tenth anniversary of the date this Plan is approved by the shareholders.  Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.

 

PLAN APPROVAL

 

	
Date   Approved by the Board:
    	
April 1,   2011
    	
 
    
	
 
    	
 
    	
 
    
	
Date   Approved by the Shareholders:
    	
April 1,   2011
    	
 
    
				

 

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