Document:

Exhibit 10.9

 

CONFIDENTIAL SEVERANCE AND RELEASE AGREEMENT

 

This Confidential Severance and Release Agreement (“Agreement”) is made and entered into by and between Kerry W. Boekelheide (hereafter, the “Employee”) and Summit Hotel Properties, Inc. and all affiliates of Summit Hotel Properties, Inc., including without limitation Summit Hotel OP, LP, (hereafter, collectively, the “Employer”) (the signatories to this Agreement will be referred to collectively as the “Parties”) as follows:

 

WHEREAS, Employer employed Employee;

 

WHEREAS, Employee has resigned from his employment with Employer;

 

WHEREAS, in consideration of Employee’s promises provided for herein, Employer has agreed to compensate Employee by providing the consideration described in this Agreement;

 

WHEREAS, the Parties have agreed, without any Party admitting liability of any kind, to enter into this Agreement pursuant to which each and every claim and/or cause of action asserted or which could have been asserted by Employee against Employer will be forever and finally released;

 

WHEREAS, the Parties have read and understand the terms and provisions of this Agreement, and desire and intend to be bound by the terms and provisions of this Agreement;

 

NOW, THEREFORE, in consideration of the covenants and mutual promises and agreements herein contained, and other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.                                      RELEASE AND WAIVER AGREEMENT.  Employee acknowledges and understands that this Agreement is a release and waiver contract and that this document is legally binding.  Employee and Employer understand that by signing this Agreement, each party is agreeing to all of the provisions set forth in the Agreement, and has read and understood each provision.

 

2.                                      CLAIMS COVERED BY AGREEMENT.  Employee and Employer acknowledge and understand that this Agreement applies only to claims which accrue or have accrued prior to Employee’s execution of this Agreement and that this Agreement shall become effective upon the eighth (8th) day after Employee signs this Agreement provided that Employee does not revoke this Agreement as provided in paragraph 8 (the “Effective Date”).

 

3.                                      SEPARATION.  Employee hereby resigns from his employment with Employer effective July 30, 2015 (hereafter, the “Separation Date”).  Effective on the Separation Date, Employee will no longer be an employee, officer, director, member, partner, agent or trustee of Employer and will no longer have the authority to act on behalf of the Employer or Released Parties (as defined below).

 

	
 
    	
 
    	
Initialed
    

 

1

 

4.                                      SEVERANCE PAYMENT.  In exchange for the promises and/or covenants of Employee contained herein, subject to the provisions contained within this Agreement, Employer covenants and agrees to pay Employee $1,950,000, less all applicable federal, state, and local taxes and withholding (“Severance Payment”), in a single payment on Employer’s first normal payroll date following the Effective Date.  Employee understands and agrees that he is not entitled any post-termination payments under his May 28, 2014 Employment Agreement and that he would not receive the Severance Payment specified in this paragraph, except for his execution of this Agreement and fulfillment of the promises contained in this Agreement.

 

5.                                      EQUITY AWARDS.

 

A.                                    Employee was awarded a total of 149,307 shares of common stock under Stock Award Agreements (Performance-Based Shares) dated April 18, 2013 and May 28, 2014 and under Stock Award Agreements (Service-Based Shares) dated April 18, 2013, May 28, 2014 and April 24, 2015.  A total of 46,153 of the shares of common stock have vested in accordance with the terms of the Stock Award Agreements.  On the Effective Date the remaining 103,154 shares of unvested common stock will vest.

 

B.                                    Employee was granted an option to purchase 376,000 shares of common stock under a Stock Option Agreement dated February 14, 2011.  The option is currently exercisable with respect to 300,800 shares of common stock.  On the Effective Date the option will become exercisable with respect to the remaining 75,200 shares of common stock.  All of the options will remain exercisable, in whole or in part, until October 29, 2015, and thereafter shall be forfeited.

 

6.                                      BENEFIT PLAN PARTICIPATION.  Employee’s eligibility to participate in Employer’s employee benefit plans (including without limitation its 401(k), group life, FSA(s), STD and LTD coverage) will terminate on the Separation Date.

 

7.                                      PLAN RIGHTS.  Employee’s rights and benefits, if any, under Employer’s 401(k) plan will be determined pursuant to the terms of such plan and will not be affected by whether Employee signs this Agreement.

 

8.                                      REVIEW AND REVOCATION PERIOD.

 

A.                                    This Agreement was delivered to Employee on July 15, 2015.  Employee acknowledges that Employee has been provided with a period of at least twenty-one (21) days from July 15, 2015 within which to consider, review and reflect upon the terms of this Agreement.

 

B.                                    Employee shall have seven (7) days in which to revoke this Agreement after Employee signs this Agreement.

 

	
 
    	
 
    	
Initialed
    

 

2

 

C.                                    Employee acknowledges that through this Agreement, Employee releases Employer, along with the other Released Parties (as defined below), from any and all claims as provided herein in exchange for the consideration recited herein, which Employee would not otherwise receive.

 

D.                                    Nothing in this Agreement shall be construed to affect the rights and responsibilities of the National Labor Relations Board or the Equal Employment Opportunity Commission, or any other state or local agency with similar responsibilities (the “Commission”), to enforce any laws pertaining to employment, discrimination or retaliation.  Likewise, this waiver will not be used to justify interfering with the protected right of any employee to file a charge or participate in an investigation or proceeding conducted by the Commission; however, Employee waives the right to any money, recovery, relief, or any other benefit arising out of any such proceeding.

 

9.                                      In exchange for the promises and/or covenants of Employer contained herein and subject to the provisions contained within this Agreement, Employee covenants and agrees as follows:

 

A.                                    RELEASE AND WAIVER BY EMPLOYEE.  In consideration for the promises set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, Employee, on behalf of Employee and Employee’s family, assigns, representatives, agents, heirs and attorneys, if any, hereby covenants not to sue and fully, finally, and forever releases, acquits and discharges Employer, and its past, present and future, parents, subsidiaries, affiliates, divisions, successors, predecessors, joint ventures, and related companies, and each of the aforementioned entities’ past, present, and future shareholders, owners, investors, managers, principals, committees, administrators, sponsors, executors, trustees, partners, assigns, representatives, attorneys, directors, officers, fiduciaries, employees and agents; and any employee benefit plans maintained by Employer, its past, present and future parents, subsidiaries, affiliates, divisions, successors and predecessors, and the fiduciaries, consultants, agents and service providers of each such plan (collectively, the “Released Parties”) whether in their respective individual or official capacities, from any and all claims, demands, actions, liabilities, obligations and causes of action of whatever kind or character, whether known or unknown, which Employee has or might claim to have against the Released Parties for any and all injuries, harm, damages (actual and punitive), penalties, costs, losses, expenses, attorneys’ fees and liability or other detriment, if any, whatsoever and whenever incurred or suffered by Employee arising out of, relating to, or in connection with any transaction, occurrence or omission which transpired prior to Employee’s execution of this Agreement, including, without limitation:

 

(i) any claim under federal, state, or local law which provides civil remedies for the enforcement of rights arising out of the employment relationship, including, without limitation, discrimination and retaliation claims, such as claims or causes of action under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000 et seq.; The Civil Rights Act of 1866, as amended, 42 U.S.C. § 1981; The Civil Rights Act of 1991, as amended, 42 U.S.C. § 1981a; the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., Age

 

	
 
    	
 
    	
Initialed
    

 

3

 

Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq.; Americans With Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; Fair Labor Standards Act, as amended, 29 U.S.C. § 201, et seq.; Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1000 et seq.; Family and Medical Leave Act, as amended, 29 U.S.C. § 2601, et seq.; the Texas Commission on Human Rights Act § 21.001 et seq. of the Texas Labor Code; or any other statute prohibiting discrimination or retaliation in employment under any federal, state, or local law;

 

(ii) any action under common law or in equity, including, but not limited to claims based on alleged breach of an obligation or duty arising in contract or tort, such as breach of contract, fraud, quantum meruit, wrongful discharge, defamation, infliction of emotional distress, assault, battery, malicious prosecution, false imprisonment, harassment, negligence, gross negligence, and strict liability;

 

(iii) any claim for lost, unpaid, or unequal wages, salary, bonuses, stock options or any other benefits;

 

(iv) any alleged unlawful act;

 

(v) any other claim regardless of the forum in which it might be brought, if any, which Employee has, might have, or might claim to have against any of the Released Parties, for any and all injuries, harm, damages, wages, benefits, salary, reimbursements, penalties, costs, losses, expenses, attorneys’ fees, and/or liability or other detriment, if any, whatsoever and whenever incurred, suffered, or claimed by Employee; and

 

(vi) any damages Employee has allegedly suffered including, but not limited to all damages for: wages, un-repaid loans, bonuses, commissions, front or back pay; comp time; overtime; sick, personal, vacation or PTO days; severance pay, retirement, insurance; unreimbursed: travel, client development, long distance, moving, tuition, or business expenses; health, medical insurance or fringe benefits; personal injuries; mental anguish; grief; nausea; nightmares; sleeplessness; physical pain and suffering; loss:  of contributions, earning capacity, inheritances, society, companionship, reputation, consortium, affection; disability; damages to: real or personal property or reputation; copyright infringement; conversion; mental impairment, emotional trauma, exemplary or punitive damages; hospital, doctor, experts, accountant’s, counseling bills; any type of medical expenses or bills; pre- and post-judgment interest; attorneys’ and litigation costs and expenses, and any other loss or detriment of any kind, whether past, present or future.

 

	
 
    	
 
    	
Initialed
    

 

4

 

It is expressly agreed and understood by Employee that this release includes, but is not limited to any and all claims, actions, demands, and causes of action, if any, arising from or in any way connected with any and all actions, statements, communications, negotiations, dealings, compensation, employment relationships, and separations of employment between Employee and Employer, as a result of any and all alleged acts, omissions, or events, arising in whole or in part prior to the date employee executes this Agreement.

 

Employee intends this release to be as broad as possible.

 

This Agreement does not prevent Employee from filing a charge of discrimination with the EEOC or similar state or local agency, although by signing this Agreement, Employee waives the right to intervene and/or to recover any damages or other relief in any charge, claim or suit brought by Employee or by or through the EEOC, or any other state or local agency on Employee’s behalf, except where prohibited by law.

 

B.                                    FAIR AND ADEQUATE CONSIDERATION. Employee acknowledges and agrees that the payment of monies hereunder constitutes monies to which Employee was not previously entitled and, further, that the payment of monies hereunder constitutes fair and adequate consideration for the execution of this Agreement.

 

C.                                    LIMITATION OF LIABILITY.  Employee understands that this Agreement precludes him from recovering any relief as a result of any lawsuit, grievance or claims brought on his behalf and arising out of his employment or termination of employment, or as a result of any other claim.

 

10.                               CONFIDENTIALITY.  To the extent permitted by law, Employee agrees that he will maintain the strictest secrecy and will not communicate, make known or divulge to any person or agency, any information whatsoever relating to the terms of this Agreement, including but not limited to the negotiations, the sums of money received, and other consideration received, except to Employee’s immediate family or where disclosure is compelled pursuant to legal process or for reporting purposes to the federal, state or local taxing authorities, or to lawyers or accountants engaged for such purposes or engaged in connection with this Agreement or any dispute arising hereunder, who shall likewise make no disclosure to others.

 

11.                               NONDISPARAGEMENT.  Employee agrees that as a material inducement for Employer’s willingness to enter into this Agreement, he has agreed that he will not make any untrue, misleading, or defamatory statements concerning any of the Released Parties.  Employee will not directly or indirectly make, repeat or publish any false, disparaging, negative, unflattering, accusatory, or derogatory remarks or references, whether oral or in writing, concerning the Released Parties, or otherwise take any action which might reasonably be expected to cause damage or harm to the Released Parties.  In agreeing not to make disparaging statements regarding the Released Parties, Employee acknowledges that he is making a knowing, voluntary and intelligent waiver of any and all rights he may have to make disparaging comments about the Released Parties including rights under the First Amendment to the United States Constitution and any other applicable federal and state constitutional rights.  Similarly, the Employer agrees that following the Effective Date, Employer officers, executives, members of the Board and

 

	
 
    	
 
    	
Initialed
    

 

5

 

members of management shall not make any negative comments or otherwise disparage the Employee.

 

12.                               CONFIDENTIAL INFORMATION.  Employee shall keep secret and retain in strictest confidence, and shall not use for his benefit or the benefit of himself or others, all confidential matters relating to the business of Employer or the Released Parties, learned by Employee directly or indirectly from Employer or the Released Parties (the “Confidential Information”), including, without limitation, information with respect to Employer, the Released Parties and any aspect of their businesses, profit or loss figures, and Employer’s or the Released Parties’ properties, and shall not disclose such Confidential Information to anyone outside of Employer except with Employer’s express written consent and except for Confidential Information which (i) at the time of receipt or thereafter becomes publicly known through no wrongful act of Employee; (ii) is clearly obtainable in the public domain; (iii) was not acquired by Employee in connection with Employee’s employment or affiliation with Employer; (iv) was not acquired by Employee from Employer or its representatives or from a third-party who has an agreement with Employer not to disclose such information; or (v) is required to be disclosed by rule of law or by order of a court or governmental body or agency.

 

13.                               NONSOLICITATION.  For a period of two (2) years following the execution of this Agreement, Employee shall not, without Employer’s prior-written consent, directly or indirectly, knowingly solicit or knowingly encourage to leave the employment or other service of Employer, any employee employed by Employer on the Separation Date or knowingly hire (on behalf of Employee or any other person or entity) any employee employed by Employer on the Separation Date who has left the employment or other service of Employer within two (2) years of the termination of such employee’s or independent contractor’s employment or other service with Employer.  Notwithstanding the above, nothing shall prevent Employee from soliciting loans, investment capital, or the provision of management services from third parties if the activities of Employee facilitated thereby do not otherwise adversely interfere with the operations of Employer or any of the Released Parties.

 

14.                               COVENANTS AGAINST COMPETITION.  For a period of one (1) year following the Effective Date, Employee shall not, directly or indirectly, own, manage, control or participate in the ownership, management, or control of, or be employed or engaged by or otherwise affiliated or associated with, in an executive, senior management, strategic or professional capacity, whether as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, director or in any other individual or representative capacity, that is similar to an engagement in an executive, senior management, strategic or professional capacity although otherwise named in any business or venture engaged in the business of owning premium-branded select-service hotels if such hotels are located within a ten (10) mile radius of any hotel the Company owns or is pursuing to acquire, own, develop or re-develop as of the Effective Date, unless otherwise approved by the Employer’s Board of Directors.

 

15.                               COMPANY PROPERTY.  Employee has returned to Employer any and all originals and/or copies of documents, e-mails, electronic documents and data, and electronically stored

 

	
 
    	
 
    	
Initialed
    

 

6

 

information relating to the business of Employer or any of the Released Parties.  Employee has also returned all property belonging to Employer or any of the Released Parties.

 

16.                               ENTIRE AGREEMENT.  The Indemnification Agreement dated February 14, 2011 entered into by Summit Hotel Properties, Inc. and Employee shall remain in force in accordance with its terms.  Except as otherwise provided in the preceding sentence, this Agreement constitutes the entire understanding and agreement of the Parties, and supersedes prior understandings and agreements (including without limitation the May 28, 2014 Employment Agreement between Employee and Summit Hotel Properties, Inc.) among or between the Parties with respect to the subject matter hereof. There are no representations, agreements, arrangements or understandings, oral or written, concerning the subject matter hereof between and among the Parties which are not fully expressed or incorporated by reference herein.

 

17.                               AMENDMENTS.  Any modification of this Agreement or additional obligation assumed by any Party in connection with this Agreement shall be binding only if evidenced in writing signed by Employee and Employer’s President.  Additionally, this Agreement cannot be changed or terminated orally, but may be changed only through written addendum executed by all Parties.

 

18.                               EMPLOYEE AGREES NOT TO SUE.  Employee agrees, promises, represents and warrants not to sue Employer or any Released Party for any of the claims or causes of action or other rights released in this Agreement.  Employee further promises, warrants and represents that this is a complete and final settlement that cannot be reopened at any time in the future, regardless of what might take place or occur at a later time.

 

19.                               NO REPRESENTATION BEYOND WHAT IS IN THIS AGREEMENT.  Employee has agreed to this Agreement because of the specific benefits Employee is receiving, which are all listed in this Agreement.  Employee promises, warrants and represents that Employee has not been promised any additional benefits by Employer or its attorneys or by any other person.  Employee has decided to sign this Agreement because Employee believes it is a fair settlement because of the listed benefits Employee is to receive.  Employee has not signed this Agreement because of any prior oral or written representations by Employer or its attorneys or other persons.  Likewise, Employee has not signed this Agreement because of any written or oral representations by Employer or its attorneys or any other person regarding any benefits not listed in this Agreement.

 

20.                               INTERPRETATION OF LANGUAGE.  The Parties agree that the language in this Agreement shall not be strictly construed for or against any of the Parties.  No ambiguity or uncertainty in this Agreement shall be interpreted in favor of or against any party.

 

21.                               COOPERATION.  Employee agrees to fully cooperate and assist Employer in any litigation, claims, grievances, arbitrations, investigations, or disputes involving Employer in which Employee has been involved or of which Employee has knowledge.  Employer will reimburse Employee for any out of pocket expenses Employee incurs in complying with this paragraph.

 

	
 
    	
 
    	
Initialed
    

 

7

 

22.                               PARTICIPATION IN OTHER LITIGATION INVOLVING THE PARTIES.  Employee promises, warrants and represents that Employee will not promote, participate in or encourage any litigation against Employer or voluntarily provide any assistance or information to persons or entities suing Employer.  However, Employee shall not be prohibited from responding to and complying with any subpoena served on Employee.  If Employee is so served Employee shall immediately notify Employer’s representative below in writing, via telefax, and e-mail at the following address:

 

Legal Department

12600 Hill Country Boulevard, Suite R-100

Austin, Texas 78738

512-538-2333 (fax)

 

23.                               PAYMENTS NOT PART OF PENSION OR RETIREMENT PLANS.  No part of the consideration paid herein shall count as earnings for purposes of Employee’s pension, regular or supplemental retirement, or savings plan benefits or any other fringe benefit plan offered by Employer.

 

24.                               NO REINSTATEMENT, REEMPLOYMENT, SOLICITATION OR FURTHER DEALINGS.  Employer’s records will reflect that Employee is eligible for rehire; however, Employee agrees that Employee’s employment with Employer has ended permanently and forever.  Employee agrees not to apply for or otherwise seek reinstatement, reemployment or future employment with Employer.

 

25.                               WAIVER.  No waiver of any of the terms of this Agreement shall be valid unless in writing and signed by all Parties to this Agreement.  The waiver by any Party hereto of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by any party, nor shall any waiver operate or be construed as a rescission of this Agreement.

 

26.                               SEVERABILITY.  If a provision of this Agreement is or may be held invalid, void, or unenforceable, the Parties want a court to use the blue pencil procedure to reform or revise any such provision to, if possible, make it enforceable. Even if one or more provisions are totally struck from this Agreement, the Parties want the remaining provisions to survive and continue in full force and effect without being impaired or invalidated.  And, the Parties want the surviving provisions of this Agreement enforced to the fullest extent permitted by law.

 

27.                               SUCCESSORS/ASSIGNS.  This Agreement shall be binding upon and the benefits shall inure to the Released Parties and their respective successors and assigns, as well as to Employee and his/her heirs and representatives.

 

	
 
    	
 
    	
Initialed
    

 

8

 

28.                               BINDING EFFECT.  This Agreement and the terms, covenants, conditions, provisions, obligations, undertakings, rights and benefits hereof shall be binding upon, and shall inure to the benefit of, the Parties and their respective heirs, executors, administrators, representatives, officers, directors, shareholders, predecessors, successors, parents, subsidiaries, affiliated entities, spouses, agents, attorneys, servants, employees, principals, partners, whether limited or general, and assigns, if any.  Each of the Parties represents and warrants that it has the authority to act on its own or representative behalf in executing this Agreement.

 

29.                               SOLE, MANDATORY JURISDICTION, VENUE AND LAW GOVERNING ALL DISPUTES.  This Agreement shall be governed by, construed, interpreted and enforced in accordance with and subject to the laws of the State of Texas without regard to any conflicts of law rules or principles.  If a dispute arises, the Parties agree to the sole, exclusive and mandatory jurisdiction and venue in the state and federal courts in Travis County, Texas.  The Parties waive and agree not to raise or plead any defense of forum non conveniens or that Travis County, Texas is an inconvenient, improper or incorrect place for venue or disputes to be heard.

 

30.                               THE PARTIES WAIVE THEIR RIGHTS TO A JURY TRIAL.  THE PARTIES WAIVE THEIR FUNDAMENTAL, CONSTITUTIONAL RIGHTS TO A JURY TRIAL REGARDING ANY DISPUTES AGAINST ONE ANOTHER.  ALL DISPUTES SHALL BE DECIDED BEFORE A JUDGE WITHOUT A JURY. THE PARTIES WANT ALL DISPUTES BETWEEN OR AMONG THEM EXCLUSIVELY DECIDED BY A FEDERAL OR STATE COURT JUDGE                  IN TRAVIS COUNTY, TEXAS, SITTING WITHOUT A JURY.  THIS INCLUDES, BUT IS NOT LIMITED TO ANY AND ALL LAWSUITS, CLAIMS, COUNTERCLAIMS, AND DISPUTES ARISING UNDER, OUT OF OR RELATED TO THIS AGREEMENT, EMPLOYEE’S WORK FOR EMPLOYER, OR ANY OTHER CLAIMS THE PARTIES MIGHT ASSERT AGAINST ONE ANOTHER.  THE PARTIES INTEND THIS JURY WAIVER AGREEMENT TO BE AS BROAD AS POSSIBLE.

 

THE PARTIES IRREVOCABLY WAIVE THEIR RIGHTS TO A JURY TRIAL. EACH PARTY HAS READ AND PROMISES THEY UNDERSTAND THIS JURY WAIVER.

 

31.                               DISPUTES RELATING TO AGREEMENT.  If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the party prevailing in any such litigation shall recover from the adverse party its actual damages and reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees incurred in connection with such dispute and litigation.  In the event of the violation or threatened violation of any of the covenants and/or promises in this Agreement, the non-breaching party shall be entitled to injunctive relief, both preliminary and final, enjoining and restraining such violation or threatened violation, which injunctive relief shall be in addition to all other remedies available to the non-breaching party, at law or in equity.

 

	
 
    	
 
    	
Initialed
    

 

9

 

32.                               EFFECTIVE PERIOD.             This Agreement is null and void if: (i) Employee fails to execute and return it within 25 calendar days of July 15, 2015; or (ii) Employee signs it within 25 calendar days of July 15, 2015, but revokes his acceptance within seven (7) calendar days after signing it.

 

33.                               FREE WILL.                   Employee acknowledges that Employee has had an opportunity to consult with an attorney concerning the meaning, import, and legal significance of this Agreement, and has read this Agreement, as signified by Employee’s signature hereto, and is voluntarily executing this Agreement.

 

34.                               TAXES.  Employee understands that this Agreement has or may have financial and tax consequences for Employee.  Employee understands and acknowledges that Employer has not advised Employee regarding the tax consequences of this Agreement, that Employer has not made any representations regarding the tax consequences of this Agreement and Employer has no obligation to indemnify or hold Employee harmless against any adverse tax consequences arising under this Agreement, including pursuant to Section 409A of the Internal Revenue Code of 1986, as amended.

 

35.                               ADVICE TO SEEK COUNSEL.  Employee understands that signing this Agreement is an important legal act.  Employer hereby advises Employee in writing to consult an attorney before signing this Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as evidenced by their signatures below.

 

 

	
Employee:
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
Kerry W.   Boekelheide
    
	
 
    	
 
    
	
 
    	
 
    
	
Summit Hotel   Properties, Inc.:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated Effective as of               ,   2015
    	
 
    
	
 
    	
Daniel P. Hansen
    
	
 
    	
President
    
				

 

	
 
    	
 
    	
Initialed
    

 

10EX-10.29

 Exhibit 10.29 
  

			
	 Name:
	  	[●]
	 Number of Shares of Stock subject to Option:
	  	[●]
	 Price Per Share:
	  	$[●]
	 Date of Grant:
	  	[●]

 INVENTIV GROUP HOLDINGS, INC.

 2010 EQUITY INCENTIVE PLAN 

THIS STOCK OPTION AND ANY SECURITIES ISSUED UPON EXERCISE OF 

THIS STOCK OPTION ARE SUBJECT TO RESTRICTIONS ON VOTING AND 

TRANSFER AND REQUIREMENTS OF SALE AND OTHER PROVISIONS AS 

SET FORTH IN THE STOCKHOLDERS AGREEMENT. 

INVENTIV GROUP HOLDINGS, INC. STRONGLY ENCOURAGES YOU TO 

SEEK THE ADVICE OF YOUR OWN LEGAL AND FINANCIAL ADVISORS 

WITH RESPECT TO YOUR STOCK OPTION AND ITS TAX CONSEQUENCES. 

NON-STATUTORY STOCK OPTION AGREEMENT 

This agreement (this “Agreement”) evidences a stock option granted by inVentiv Group Holdings, Inc. (the
“Company”) to the undersigned (the “Optionee”) pursuant to and subject to the terms of the inVentiv Group Holdings, Inc. 2010 Equity Incentive Plan (the “Plan”), which is incorporated herein by
reference. 
 1. Grant of Stock Option. The Company grants to the Optionee on the date of grant set forth above (the “Date of
Grant”) an option (the “Stock Option”) to purchase, on the terms provided herein and in the Plan, the number of shares of Stock of the Company set forth above (the “Shares”) with an exercise price per Share
as set forth above, in each case subject to adjustment pursuant to Section 7 of the Plan in respect of transactions occurring after the date hereof. 

The Stock Option consists of two portions, subject to different vesting and exercise provisions as follows: 

(a) as to [●] Shares of Stock subject hereto, this Stock Option shall be eligible to vest, if at all, on the basis of the time-vesting
criteria set forth on Schedule A attached hereto (the “Time-Based Option”); and 
 (b) as to [●] Shares of Stock
subject hereto, this Stock Option shall be eligible to vest, if at all, on the basis of the EBITDA performance-vesting criteria set forth on Schedule B attached hereto (the “EBITDA Option”). 

The Stock Option evidenced by this Agreement is a non-statutory option (that is, an option that is not to be treated as a stock option
described in subsection (b) of Section 422 of the Code) and is granted to the Optionee in connection with the Optionee’s Employment by the Company and its qualifying subsidiaries. 

 2. Meaning of Certain Terms. Except as otherwise defined herein (including, for the
avoidance of doubt, in the Schedules attached hereto, which are incorporated herein and are a part hereof), all capitalized terms used herein have the same meaning as in the Plan. The following terms have the following meanings: 

 

	 	(a)	“Beneficiary” means the death beneficiary named in the written designation (in form acceptable to the Administrator) most recently filed with the Administrator by the Optionee prior to the
Optionee’s death and not subsequently revoked, or, if there is no such designated beneficiary, the executor or administrator of the Optionee’s estate. An effective beneficiary designation will be treated as having been revoked only upon
receipt by the Administrator, prior to the Optionee’s death, of an instrument of revocation in form acceptable to the Administrator. 

  

	 	(b)	“Change of Control” means (a) any change in the ownership of the capital stock of the Company if, immediately after giving effect thereto, any Person (or group of Persons acting in concert) other
than the Investors (i) will have the direct or indirect power to elect a majority of the members of the Board or (ii) will own more than 50% of the Equivalent Shares or (b) a sale of all or substantially all of the assets of the
Company or inVentiv Health, Inc. 

  

	 	(c)	“Equivalent Shares” means, at any date of determination, (i) as to any outstanding shares of Stock, such number of shares of Stock and (b) as to any outstanding options, warrants or
convertible securities, the maximum number of shares of Stock for which or into which such options, warrants or convertible securities may at the time be exercised, converted or exchanged (or which will become exercisable, convertible or
exchangeable on or prior to, or by reason of, the transaction or circumstance in connection with which the number of Equivalent Shares is to be determined). 

  

	 	(d)	“Investors” means Thomas H. Lee Partners, L.P. and its related investment funds that hold shares of the Company’s Stock. 

 

	 	(e)	“Option Holder” means the Optionee or, if as of the relevant time the Stock Option has passed to a Beneficiary, the Beneficiary who holds the Stock Option pursuant to the terms of this Agreement.

 3. Vesting; Method of Exercise; Treatment of the Stock Option Upon Cessation of Employment. 

 

	 	(a)	 Generally. As used herein with respect to the Stock Option or any portion thereof, the term “vest” means to become exercisable and
the term “vested” as applied to any portion of the Stock Option means that such portion is then exercisable, subject in each case to the terms of the Plan. 

  
 -2- 

 Unless earlier terminated, relinquished or expired, each of the Time-Based Option and the EBITDA
Option will vest in accordance with the terms of Schedule A and Schedule B, respectively, attached hereto. 
  

	 	(b)	Exercise of the Stock Option. No portion of the Stock Option may be exercised until such portion vests. Each election to exercise any vested portion of the Stock Option will be subject to the terms and conditions
of the Plan and shall be in writing, subject to any restrictions provided under the Plan and the Stockholders Agreement and to such additional administrative rules as the Administrator may reasonably prescribe. Each such written exercise election
must be received by the Company at its principal office or by such other party as the Administrator may reasonably prescribe and be accompanied by payment in full as provided in the Plan. If the Stock Option is exercised by a person other than the
Optionee, the Company will be under no obligation to deliver shares hereunder unless and until it is satisfied as to the authority of the Option Holder to exercise the Stock Option and compliance with applicable securities laws and the terms of the
Stockholders Agreement. The latest date on which the Stock Option or any portion thereof may be exercised will be the 10th anniversary of the Date of Grant (the “Final Exercise Date”) and if not exercised by such date, or earlier
forfeited or otherwise terminated, the Stock Option or any remaining portion thereof will thereupon immediately terminate. 

  

	 	(c)	Treatment of the Stock Option Upon Cessation of Employment. Except as expressly provided on Schedule B, if the Optionee’s Employment ceases, the Stock Option to the extent not already vested will be
immediately forfeited, and any vested portion of the Stock Option that is then outstanding will be treated as follows: 

 (i)
Subject to clauses (ii), (iii), (iv) and (v) below, the Stock Option to the extent vested immediately prior to the cessation of the Optionee’s Employment will remain outstanding and exercisable until the earlier of (A) the date
that is thirty (30) days following the date of such cessation of Employment, and (B) the Final Exercise Date, and except to the extent previously exercised will thereupon immediately terminate. 

(ii) Subject to clauses (iv) and (v) below, if the Optionee’s Employment terminates by reason of the Optionee’s death or
Disability, the Stock Option, to the extent it is then vested, will remain outstanding and exercisable until the earlier of (A) the first (1st) anniversary of the date of termination, and (B) the Final Exercise Date, and then, except
to the extent previously exercised, will thereupon immediately terminate. 

  
 -3- 

 (iii) Subject to clauses (iv) and (v) below, if the Optionee’s Employment
terminates by reason of an involuntary termination by the Company and its subsidiaries other than for Cause, the Stock Option, to the extent it is then vested, will remain outstanding and exercisable until the earlier of (A) the date that is
ninety (90) days after the date of termination and (B) the Final Exercise Date, and then, except to the extent previously exercised, will thereupon immediately terminate. 

(iv) If the Optionee’s Employment is terminated by the Company and its subsidiaries for Cause, or if the Optionee voluntarily terminates
his or her Employment and, at the time of such termination, there exist circumstances that would have entitled the Company and its subsidiaries to terminate the Optionee’s Employment for Cause, the Stock Option (whether or not vested) will
immediately terminate and be forfeited upon such termination. 
 (v) The Administrator may cancel, rescind, withhold or otherwise limit or
restrict any Stock Option at any time if the Optionee breaches the Restrictive Covenant Obligations set forth below. 
 4. Share
Restrictions, Etc. Not later than upon the execution of this Agreement and as a condition to the effectiveness of this Stock Option, the Optionee shall execute and deliver a counterpart signature page to, and become a party to, the Stockholders
Agreement as a “Manager” thereunder. The Optionee’s rights hereunder (including with respect to shares received upon exercise) are subject to the additional restrictions and other provisions contained in the Stockholders Agreement.

 5. Legends, Etc. Shares issued upon exercise of the Stock Option or otherwise delivered in satisfaction of the Stock Option will
bear such legends as may be required or provided for under the terms of the Stockholders Agreement. 
 6. Transfer of Stock Option.
The Stock Option may not be transferred except as expressly permitted under Section 6(a)(3) of the Plan. 
 7. Withholding. The
Optionee expressly acknowledges and agrees that the Optionee’s rights hereunder, including the right to be issued shares upon exercise, are subject to the Optionee’s promptly paying, or in respect of any later requirement of withholding
being liable promptly to pay at such time as such withholdings are due, to the Company in cash (or by such other means as may be acceptable to the Administrator in its discretion) all taxes required to be withheld, if any. No shares will be
transferred pursuant to the exercise of the Stock Option unless and until the person exercising the Stock Option has remitted to the Company an amount in cash sufficient to satisfy any federal, state, or local requirements with respect to tax
withholdings then due and has committed (and by exercising the Stock Option the Optionee shall be deemed to have 

  
 -4- 

 
committed) to pay in cash all tax withholdings required at any later time in respect of the transfer of such shares, or has made other arrangements satisfactory to the Administrator with respect
to such taxes. The Optionee also authorizes the Company and its subsidiaries to withhold such amounts from any amounts otherwise owed to the Optionee, but nothing in this sentence shall be construed as relieving the Optionee of any liability for
satisfying his or her obligations under the preceding provisions of this Section. 
 8. Effect on Employment. Neither the grant of
the Stock Option, nor the issuance of shares upon exercise of the Stock Option, will give the Optionee any right to continued Employment with the Company or any of its Affiliates, affect the right of the Company or any of its Affiliates to discharge
or discipline such Optionee at any time, or affect any right of such Optionee to terminate his or her Employment at any time. 
 9.
Restrictions on Activities of the Optionee. 
  

	 	(a)	Non-Competition Restrictions. 

 (i) During the Optionee’s Employment and for a
period of twelve (12) months after the date of termination of the Optionee’s Employment (the “Restricted Period”), the Optionee shall not, directly or indirectly, either alone or in conjunction with any person, firm,
association, company, corporation or other entity, anywhere within the Territory (as defined below), own, manage, operate or participate in the ownership, management, operation or control of, or be employed by or provide services to, any person,
business or entity which competes with the inVentiv Business (as defined below) if the Optionee would have: (i) responsibilities that are entirely or substantially similar to the responsibilities the Optionee had at any time during the last
twelve (12) months of the Optionee’s Employment; or (ii) access to, or responsibility for, confidential information similar or relevant to that Proprietary Information (defined below) to which the Optionee had access to during the
last twelve (12) months of the Optionee’s Employment. Notwithstanding anything to the contrary, nothing in this Agreement prohibits the Optionee from being a passive owner of not more than five percent (5%) of the outstanding stock of
any class of a corporation which is publicly traded, so long as the Optionee has no active participation in the business of such corporation. 

(ii) For purposes of this Agreement, “inVentiv Business” shall mean the business of designing, developing, marketing, selling
and/or providing for (i) pharmaceutical, life sciences, medical device and medical diagnostic companies: (A) the commercialization of pharmaceuticals, biologics and medical devices or diagnostic products which includes the sales,
marketing, 

  
 -5- 

 
naming, advertising and assessing of patient outcomes for the Company’s and its subsidiaries’ (collectively, “inVentiv”) clients, (B) clinical research
organizations, (C) staffing clinical trial and/or clinical research and development personnel, and (D) consulting services which includes the brand management, business development, clinical development, medical affairs, pricing and market
access and sales for the inVentiv’s clients, (ii) health care providers, third-party administrators and insurers: medical claims review and negotiations, and (iii) any other business that inVentiv engages in, or which inVentiv has
developed definitive plans to engage in, as of the Optionee’s termination date. 
 (iii) For purposes of this Agreement, the
“Territory” shall mean every State or foreign country where inVentiv maintains employees, owns or leases property or otherwise conducts business during the Restricted Period. 

 

	 	(b)	Non-Solicitation and No-Hire Restrictions. During the Restricted Period, the Optionee shall not, directly or indirectly, either alone or in conjunction with any person, firm, association, company, corporation or
other entity: (i) solicit, or attempt to solicit any officer, director, consultant or employee of inVentiv to terminate or diminish such individual’s employment or engagement with inVentiv, (ii) hire any officer, director, consultant
or employee of inVentiv, or (iii) solicit the sale of, sell, offer, or provide, any products or services that are similar to or competitive with products or services sold by, offered by, manufactured by, designed by or distributed by inVentiv,
to any person, company or entity which was a customer or potential customer of inVentiv for such products or services and with whom the Optionee had direct contact or about whom the Optionee learned Proprietary Information at any time during the
last twelve (12) months of the Optionee’s Employment. 

  

	 	(c)	Confidentiality and Creative Works. The Optionee hereby affirms that: 

 (i) The
Optionee has not and will not, at any time during or after the Optionee’s Employment, make any unauthorized use or disclosure of any Proprietary Information, or make any use thereof at all, except in the course and scope of the Optionee’s
Employment and as necessary and authorized for carrying out the Optionee’s Employment responsibilities. This Agreement shall not prevent the Optionee from revealing evidence of criminal wrongdoing to law enforcement or prohibit the Optionee
from divulging Proprietary Information by order of court or agency of competent jurisdiction. However, the Optionee shall promptly inform the Company of any such situations and shall take such reasonable steps to prevent disclosure Proprietary
Information until the Company has been informed of such requested disclosure and the Company has had an opportunity to respond to the court or agency. 

  
 -6- 

 (ii) For purposes of this Agreement, “Proprietary Information” may include, but
is not limited to, (1) products, (2) services, (3) designs, (4) methods, (5) techniques, (6) systems, (7) know-how, (8) strategic or technical data, (9) marketing research data, (10) product research
and development data, (11) sales techniques, (12) sales data, (13) confidential customer lists, (14) software, (15) business plans, (16) pricing information, (17) employee personnel files, (18) clinical and/or
patient data, (19) recruiting information, including, but not limited to, candidate data and client preference and contact data, and (20) any other information gained in the course of the Optionee’s Employment that could reasonably be
deleterious to inVentiv if disclosed to third parties. 
 (iii) To the extent any rights in Creative Works (defined below) are not already
owned by inVentiv, the Optionee irrevocably assigns and transfers to inVentiv all proprietary rights, including, but not limited to, all patent, copyright, trade secret, trademark, and publicity rights, in the Creative Works and agree that inVentiv
will be the sole and exclusive owner of all right, title, and interest in the Creative Works. inVentiv will have the right to use all Creative Works, whether original or derivative, in any manner whatsoever and in any medium now known or later
developed. The Optionee agrees not, at any time, to assert any claim, ownership, or other interest in any of the Creative Works. 
 (iv)
Both during and after the Optionee’s Employment, the Optionee agrees to execute any documents necessary to effectuate the assignment to inVentiv of the Creative Works, and will execute all papers and perform any other lawful acts reasonably
requested by inVentiv for the preparation, prosecution, procurement, and maintenance of any trademark, copyright, and/or patent rights in and for the Creative Works. The Optionee further agrees that the Optionee will not be entitled to any
compensation in addition to the salary paid to the Optionee during the development of the Creative Works. In the event inVentiv is unable, for any reason, to secure the Optionee’s signature to any document inVentiv requests that the Optionee
execute under this Section 9(c)(iv), the Optionee hereby irrevocably designates and appoints inVentiv and its authorized officers and agents as the Optionee’s agents and attorneys in fact to act for and on behalf of the Optionee to execute
such document with the same legal force and effect as if executed by the Optionee. 

  
 -7- 

 (v) If the Optionee is based in the States of California or Minnesota, the Optionee confirms
that inVentiv has informed the Optionee (pursuant to 2872 of the California Labor Code and Section 181.78 of the Minnesota Statutes) that the assignment provisions of this Section 9(c) do not apply to any Creative Works that qualify as
Excluded Works (defined below) under the provisions of Section 2870 of the California Labor Code or Section 181.78 of the Minnesota Statutes. If the Optionee works in other states, the exclusion set forth in this Section 9(c) also
applies to Creative Works that fall within the definition of Excluded Works and are made or conceived, first reduced to practice or learned by the Optionee, either alone or jointly with others, while the Optionee is based by inVentiv in Illinois,
Delaware and North Carolina or any other state that has a statutory provision restricting the scope of assignable inventions to an extent similar to the limitations applicable to California and Minnesota employees. 

(vi) For purposes of this Agreement, “Creative Works” include, but are not limited to, all original works of authorship,
inventions, discoveries, designs, computer hardware and software, algorithms, programming code, databases, database structures, or other information, business ideas, and related improvements and devices, which are conceived, developed, or made by
the Optionee, either alone or with others, in whole or in part, on or off inVentiv’s premises, (i) during the Optionee’s Employment, (ii) with the use of the time, materials, or facilities of inVentiv, (iii) relating to any
product, service, or activity of inVentiv of which the Optionee has knowledge, or (iv) suggested by or resulting from any work performed by the Optionee for inVentiv. Creative Works do not include inventions or other works developed by the
Optionee: (i) before the Optionee commenced Employment; or (ii) entirely on the Optionee’s own time without using inVentiv’s equipment, supplies, facilities, or Proprietary Information (collectively, “Excluded
Works”) except for those inventions or works that either: (a) relate at the time of conception or reduction to practice of the invention to the inVentiv Business or actual or demonstrably anticipated research or development of
inVentiv; or (b) result from any work performed, directly or indirectly, by the Optionee for inVentiv. 
  

	 	(d)	 Forfeiture and Merger. The Stock Option, and any Shares received upon the exercise of the Stock Option, shall be forfeited in their entirety if
the Optionee breaches the provisions of Optionee’s restrictive covenant obligations set forth in Section 9 of this Agreement (the “Restrictive Covenant Obligations”); provided, that if the Company or one of its affiliates
has purchased the Shares received upon exercise of the Stock Option within six (6) months prior to the date on which the Optionee 

  
 -8- 

	 	
would otherwise have been required to forfeit the Stock Option, or any Shares received upon the exercise of the Stock Option, under this subsection (d) as a result of the Optionee’s
breach of the Restrictive Covenant Obligations, the Company will additionally be entitled to recover any and all cash proceeds realized by the Optionee in connection with such purchase. The Restrictive Covenant Obligations herein supersede all prior
agreements with respect to the Optionee’s Restrictive Covenant Obligations. 

 10. Governing Law. This Agreement
and all claims or disputes arising out of or based upon this Agreement or relating to the subject matter hereof will be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any
choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction. 

By acceptance of the Stock Option, the undersigned agrees hereby to become a party to, and be bound by the terms of, the Stockholders
Agreement and to be subject to the terms of the Plan. For the avoidance of doubt, the provisions of this Agreement and the Plan shall apply to the Stock Option, including without limitation the vesting (if any) of the Stock Option, notwithstanding
any provision relating to the vesting or other treatment of equity-based awards of the Company or its Affiliates contained in any other agreement between the Optionee and the Company or any Affiliate. The Optionee further acknowledges and agrees
that (i) the signature to this Agreement on behalf of the Company is an electronic signature that will be treated as an original signature for all purposes hereunder and (ii) such electronic signature will be binding against the Company
and will create a legally binding agreement when this Agreement is countersigned by the Optionee. 
 [The remainder of this page
intentionally left blank] 

  
 -9- 

 Executed as of the      day of
        . 
  

							
	Company:	 		 	INVENTIV GROUP HOLDINGS, INC.
				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
			
	Optionee:	 		 	  

		 		 	Name:	 	
		 		 	Address:

 [Signature Page to Option Agreement] 

 Schedule A 

Time-Based Option Vesting Schedule 

 Schedule B 

EBITDA Option Vesting Schedule

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]