Document:

EX-10.1 CONSULTING AGMNT DATED NOVEMBER 17, 2006

 

Exhibit 10.1

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (“Agreement”) is made and entered into as of this 17th day of
November, 2006, by and between BlueLinx Corporation (the “Company”) and David J. Morris, an
individual resident of the State of Georgia (“Consultant”).

WITNESSETH:

     WHEREAS, Consultant has been employed by the Company as Chief Financial Officer since May 7,
2004, and has during his service to the Company and its business (including when previously
operated by Georgia-Pacific Corporation) developed substantial expertise in the building products
distribution industry, and has provided valuable services to the Company and its predecessor in
various management capacities for a number of years;

     WHEREAS, Consultant will resign from the employment of the Company effective on or about
December 31, 2006; and

     WHEREAS, the Company wishes to retain the services of Consultant in the capacity of an
independent consultant for the purposes more fully described below, and Consultant desires to
provide services from time to time in said capacity as requested by the Company;

     NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein, the
receipt and sufficiency of which are hereby acknowledged, Consultant and the Company agree as
follows:

	1.	 	Resignation from Active Employment. Consultant’s active employment by the Company
will terminate upon his resignation, which will be effective on or about December 31, 2006, or
thereafter if agreeable to the parties (“Resignation Date”).
	 
	2.	 	Payments by the Company Upon Resignation. Following Consultant’s resignation, the
Company shall provide Consultant with a payment of all accrued, but unpaid, base salary and
any accrued, but unpaid, portion of any bonus payments previously awarded to Consultant, if
any, through the Resignation Date.
	 
	3.	 	Engagement as Consultant. The Company hereby engages Consultant to perform, and
Consultant hereby agrees to perform, as an independent contractor to provide consulting
services to the Company, including, but not limited to, providing advice on the financial
systems and strategies of the Company as the Company shall request from time to time
(collectively referred to as “Consulting Services”). The Consulting Services hereunder shall
be performed at such locations and at such times as may be mutually convenient to the Company
and Consultant. During this engagement, Consultant shall report to and act under the
direction of the Company’s Chief Executive Officer. All other aspects of Consultant’s
engagement by the Company shall be consistent with the Company’s policies applicable to
independent contractors, if any, and in accordance with applicable governing laws.
Consultant’s Consulting Services for the Company pursuant to this

 

 

	 	 	Agreement shall commence on the effective date of his resignation, and shall continue for a
period of two years (the “Consulting Term.”).
	 
	4.	 	Compensation for Consulting Services. In consideration for the Consulting Services
provided for under this Agreement, and the other undertakings and agreement made by Consultant
hereunder, the Company shall pay Consultant:

	 	(a)	 	a consulting fee (the “Consulting Fee”), payable in installments as follows:

	 	(i)	 	one installment in the amount of $173,940.00 shall be due and payable on the date
that is six months after the Resignation Date; and
	 
	 	(ii)	 	each month thereafter, for a period eighteen months Consultant shall receive a
payment in the amount of $28,990.00 per month.

	 	(b)	 	continued health and dental benefits (the “Continued Benefits”) to Consultant
and his family for the Consulting Term, such as those provided to Consultant prior to
the Resignation Date, or if more favorable to Consultant, such benefits as in effect
generally at any time during the Consulting Term with respect to other similarly
situated executives of the Company and their families, at no additional cost to
Consultant other than the cost of such benefits to Consultant as in effect to similarly
situated executives. In the event Consultant accepts employment with another
employer-provided plan or becomes eligible for Medicare, the medical and other welfare
benefits described herein shall be secondary to those provided under such other plan or
Medicare, as applicable, during such applicable period of eligibility.

     The Company shall reimburse Consultant for expenses reasonably incurred by him in the
performance of the Consulting Services, subject to the Company’s customary expense
reimbursement policies as in effect from time to time.

     Consultant shall not receive any compensation, payments, or benefits from the Company
in addition to that described in this Section 4, unless the Company in its sole discretion
decides otherwise.

     In the event that the Consulting Services are terminated by either party for any
reason, the Consultant (or his estate in the event of his death) shall continue to be
entitled to the Consulting Fee and the Continued Benefits for the remainder of the
Consulting Term.

	5.	 	Independent Contractor Status. Consultant understands and agrees that he is being
engaged by the Company as an independent contractor. Nothing in this Agreement shall
transform Consultant into an employee, agent, or legal representative of the Company in any
capacity whatsoever. The Consultant has no authority to bind or obligate the Company in any
manner and shall not hold himself out to others as having any such authority. The Consultant
shall be responsible for any and all of his acts or omissions. The Consultant agrees to
indemnify and hold harmless the Company from all losses, liabilities, and costs incurred by
the Company on account of any acts or omissions of the

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	 	 	Consultant. As an independent contractor, the Consultant understands and agrees that he
will be responsible for obtaining his own workers’ compensation insurance. The Consultant
acknowledges and understands that, due to the fact that the Consultant is an independent
contractor, the Company will not withhold monies for taxes and will not provide any workers’
compensation coverage for injuries sustained while engaged by the Company.

	6.	 	Confidential Information.

	 	(a)	 	Consultant shall hold in a fiduciary capacity for the benefit of the Company
all secret or confidential information, knowledge, or data relating to the Company or
any of its Affiliated Companies (as defined below), and their respective businesses,
which (i) was or is obtained by Consultant during his employment with the Company or
any of its Affiliated Companies or during the Consulting Term or (ii) was acquired by
the Company or any of its Affiliated Companies from Georgia-Pacific Corporation, and
which in each case shall not be or become public knowledge (other than by acts by the
Consultant or representatives of the Consultant in violation of this Agreement)
(“Confidential Information”). Consultant shall not during the term of this Agreement,
or thereafter, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it. For
purposes of this Agreement, “Affiliated Companies” shall mean the Company’s
subsidiaries and BHI so long as BHI owns a majority of the outstanding common stock of
the Company.
	 
	 	(b)	 	All files, records, documents, drawings, specifications, data, computer
programs, customer or vendor lists, specific customer or vendor information, marketing
techniques, business strategies, contract terms, pricing terms, discounts and
management compensation of the Company and its Affiliated Companies, whether prepared
by Consultant or otherwise coming into the Consultant’s possession, shall remain the
exclusive property of the Company and its Affiliated Companies, and Consultant shall
not remove any such items from the premises of the Company and its Affiliated
Companies, except in furtherance of the Consulting Services under this Agreement.
	 
	 	(c)	 	As requested by the Company and at the Company’s expense, from time to time and
upon the end of the Consulting Term, Consultant will promptly deliver to the Company
and its Affiliated Companies all copies and embodiments, in whatever form, of all
Confidential Information in Consultant’s possession or within his control (including,
but not limited to, memoranda, records, notes, plans, photographs, manuals, notebooks,
documentation, program listings, flow charts, magnetic media, disks, diskettes, tapes
and all other materials containing any Confidential Information) irrespective of the
location or form of such material. If requested by the Company, Consultant will
provide the Company with written confirmation that all such materials have been
delivered to the Company as provided herein.

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	7.	 	Non-Solicitation or Hire. During the Consulting Term and for a period of eighteen
months (18) months following the Consulting Term, Consultant shall not solicit or attempt to
solicit (a) any party who is a customer of the Company or its Affiliated Companies, for the
purpose of marketing, selling or providing to any such party any services or products offered
by the Company or its Affiliated Companies to such customer other than general solicitations
to the public and not directed specifically at a customer of the Company, (b) any party who is
a vendor of the Company or its Affiliated Companies to sell similar products or (c) any
employee of the Company or any of its Affiliated Companies to terminate such employee’s
employment relationship with the Company and its Affiliated Companies in order, in either
case, to enter into a similar relationship with Consultant, or any other person or any entity
in competition with the Company or any of its Affiliated Companies (other than with respect to
general employment solicitations to the public and not directed specifically at employees of
the Company and its Affiliated Companies).
	 
	8.	 	Non-Competition. During the Consulting Term, Consultant shall not, whether
individually, as a director, manager, member, stockholder, partner, owner, employee,
consultant or agent of any business, or in any other capacity, other than on behalf of the
Company or it Affiliated Companies, organize, establish, own, operate, manage, control, engage
in, participate in, invest in, permit his name to be used by, act as a consultant or advisor
to, render services for (alone or in association with any person, firm, corporation or
business organization), or otherwise assist any venture or enterprise whose primary
business is the two step distribution of building materials, as defined and denoted in the
Home Channel News annual Top 150 Distributor Scorecard. All organizations on this list are
prohibited as are any who by the nature of their business and size, would ordinarily qualify
them to be on this list, but have chosen to be excluded (the “Business”). Notwithstanding the
foregoing, nothing in this Agreement shall prevent Consultant from owning for passive
investment purposes not intended to circumvent this Agreement, less than five percent (5%) of
the publicly traded voting securities of any company engaged in the Business (so long as
Consultant has no power to manage, operate, advise, consult with or control the competing
enterprise and no power, alone or in conjunction with other affiliated parties, to select a
director, manager, general partner, or similar governing official of the competing enterprise
other than in connection with the normal and customary voting powers afforded Consultant in
connection with any permissible equity ownership).
	 
	9.	 	Non-Disparagement. Consultant and Company shall not, directly or indirectly,
publish, utter, broadcast, or otherwise communicate, directly or indirectly, any information,
misinformation, comments, opinions, remarks, articles, letters, or any other form of
communication, whether written or oral, regardless of its believed truth, to any person or
entity (including, without limitation, current or former Company employees, Consultant’s
potential and/or subsequent employers and coworkers, and the Company suppliers, vendors, and
competitors) that are adverse to, reflect unfavorably upon, or tend to disparage the other
party or any of the Company’s employees or the business, products, prospects, or financial
condition of the Company, except as otherwise required by court order or subpoena issued by a
court or governmental agency, or except as the Company, in its sole discretion, believes is
appropriate disclosure as a public company.

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	10.	 	Remedies; Specific Performance. The parties acknowledge and agree that Consultant’s
breach or threatened breach of any of the restrictions set forth in Sections 6 through 9 will
result in irreparable and continuing damage to the Company and its Affiliated Companies for
which there may be no adequate remedy at law and that the Company and its Affiliated Companies
shall be entitled to equitable relief, including specific performance and injunctive relief as
remedies for any such breach or threatened or attempted breach. Consultant hereby consents to
the grant of an injunction (temporary or otherwise) against Consultant or the entry of any
other court order against Consultant prohibiting and enjoining him from violating, or
directing him to comply with any provision of Sections . Consultant also agrees that such
remedies shall be in addition to any and all remedies, including damages, available to the
Company and its Affiliated Companies against him for such breaches or threatened or attempted
breaches. In addition, without limiting the remedies of the Company and its Affiliated
Companies for any breach of any restriction on Consultant set forth in Sections 6 through 9,
except as required by law, Consultant shall not be entitled to any payments set forth in
Section 4 hereof if Consultant breaches the covenants applicable to Consultant contained in
Sections 6 through 9 and the Company and its Affiliated Companies will have no obligation to
pay any of the amounts that remain payable by the Company under Section 4.
	 
	11.	 	Future Cooperation. As a material inducement to the Company to enter into this
Agreement, Consultant agrees to cooperate with the Company in any pending or future matters,
including, but not limited to, any litigation, investigation, or other dispute in which
Consultant, by virtue of his prior employment with the Company, has relevant knowledge or
information.
	 
	12.	 	Release by Consultant. As a material inducement to the Company to enter into this
Agreement, Consultant hereby agrees to execute a valid release in substantially the form
attached hereto as Exhibit A upon the Resignation Date. This Agreement will terminate
without any liability to the Company if Consultant does not sign the release on the
Resignation Date or if Consultant later revokes the release.
	 
	13.	 	Additional Terms.

	 	(a)	 	Successors and Assigns. This Agreement is personal to the Consultant
and, without prior written consent of the Company, shall not be assignable by the
Consultant. To the extent provisions contained herein relate to the Consultant’s legal
representatives, this Agreement shall inure to the benefit of and be enforceable by
such legal representatives. The covenants, terms, and provisions set forth herein
shall inure to the benefit of and be enforceable by the Company, its successors,
assigns, and successors in interest, including, without limitation, any corporation or
entity with which the Company may be merged or by which it may be acquired.
	 
	 	(b)	 	Integrated Agreement. This Agreement constitutes the entire agreement
between the parties hereto with regard to the subject matter hereof, and there are no
agreements, understandings, restrictions, warranties, or representations relating to

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	 	 	 	said subject matter between the parties other than those set forth herein or herein
provided for.

	 	(c)	 	Notices. All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, post prepaid, addressed as follows:

If to the Consultant:

David J. Morris

315 Willow Glade Point

Alpharetta, Georgia 30022

If to the Company:

BlueLinx Corporation

4300 Wildwood Parkway

Atlanta, Georgia 30339

Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing
in accordance herewith. Notice and communications shall be effective when actually received
by the addressee.

	 	(d)	 	Modification. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by all parties to this Agreement.
	 
	 	(e)	 	Waiver. The waiver by the Company of a breach of any provision of this
Agreement by Consultant shall not operate or be construed as a waiver of any subsequent
breach by Consultant or any of the Company’s rights hereunder.
	 
	 	(f)	 	Entire Agreement. This Agreement, and the exhibits hereto, contain the
entire agreement between the parties and supersedes any prior or contemporaneous
agreements between the parties. It may not be changed orally, but only by an agreement
in writing, duly signed by the party against whom enforcement of any waiver, change,
modification, extension, or discharge is sought.
	 
	 	(g)	 	Severability. In the event any provision of this Agreement should be
held unenforceable or invalid, such provision shall be modified or deleted in such a
manner so as to make the Agreement, as modified, legal and enforceable to the fullest
extent permitted under applicable law.
	 
	 	(h)	 	Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Georgia, without reference to principles of
conflict of law.

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     Executed in Atlanta, Georgia, this 17th day of November, 2006

	 	 	 	 	 
	 	 	 
	 	                                                  /s/ Davis J. Morris
 	 
	 	David J. Morris 	 
	 	 	 
	 

     Executed in Atlanta, Georgia, this 17th day of November, 2006

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ Barbara V. Tinsley
 	 
	 	 	Barbara V. Tinsley 	 
	 	 	General Counsel & Secretary

BlueLinx Corporation 	 
	 

7Ex-10.1 FORM OF INCENTIVE STOCK OPTION AGREEMENT

 

Exhibit 10.1

INCENTIVE STOCK OPTION AGREEMENT

SIRION HOLDINGS, INC.

2006 STOCK INCENTIVE PLAN

     THIS
INCENTIVE STOCK OPTION AGREEMENT is made and entered into this
         day of         ,
2006 by and between SIRION HOLDINGS, INC. (the “Company”) and ___
(“Grantee”).

WITNESSETH:

     WHEREAS, the Grantee has provided and will continue to provide valuable services to the
Company and/or one or more of its Affiliates in a key management capacity and, through such
services, is expected to contribute to the development and growth of the Company and its
Affiliates; and

     WHEREAS, the Company has adopted the Sirion Holdings, Inc. 2006 Stock Incentive Plan (the
“Plan”) to provide a vehicle for rewarding certain key management and executive employees
by providing them an opportunity for an equity participation in the Company; and

     WHEREAS, to reward Grantee for his/her performance to the Company the Company desires to grant
options to Grantee pursuant to this Agreement and the Plan.

AGREEMENT: 

     NOW, THEREFORE, the parties hereto, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby agree
to the provisions of this Agreement as set forth below. All capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to them in the Plan:

     1. Grant of Option. Pursuant to the Plan, the Company hereby grants to Grantee an
option to purchase from the Company a total of ___(___) full Shares (“Optioned
Shares”) of the Company at an exercise price per share of $___, during the vesting periods,
and otherwise upon the terms and conditions set forth in this Agreement. The Date of Grant of this
Option is ___, 2006. This Option is an ISO.

     2. Subject to Plan. This Option and its exercise are subject to the terms and
conditions of the Plan, provided, however, that the terms of the Plan shall not be considered an
enlargement of any benefits provided Grantee under this Agreement. This Option shall be subject to
any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the
Grantee in writing.

     3. Vesting; Time of Exercise. Except as specifically provided in this Agreement and
subject to certain restrictions and conditions set forth in the Plan, this Option is exercisable in
the following cumulative installments:

 

 

     First installment. Up to one-third (1/3) of the total Optioned Shares at any time
following the first anniversary of the Date of Grant.

     Second installment. Up to an additional one-third (1/3) of the total Optioned Shares
at any time following the second anniversary of the Date of Grant.

     Third installment. Up to an additional one-third (1/3) of the total Optioned Shares
at any time following the third anniversary of the Date of Grant.

No fractional Shares will be issued pursuant to this Option.

     4. Term. All unexercised Options granted to the Grantee hereunder, unless sooner
terminated or forfeited pursuant to the Plan or to the terms of this
Agreement, shall terminate on
the fifth anniversary of the date of this Agreement (the “Option Expiration Date”).

     5. Effect of Termination of Employment.

     (a) Disability. If the Grantee’s employment with the Company is terminated because of
the disability of the Grantee, the Option, to the extent vested but unexercised on the date on
which the Grantee’s service terminated, may be exercised by the Grantee (or the Grantee’s guardian
or legal representative) at any time prior to the expiration of twelve (12) months after the date
on which the Grantee’s service terminated, but in any event not later than the Option Expiration
Date. To the extent not vested, such Option shall immediately terminate and be canceled upon the
effective date of termination of Employment. For purposes hereof, the term “disability” shall mean
a permanent and total disability within the meaning of Section 22(e)(3) of the Code, as reasonably
determined by the Board. If any determination by the Board with respect to disability is disputed
by the Grantee, the parties hereto agree that, upon written notice from the dissenting Grantee,
they will abide by the decision of a panel of three physicians. The Grantee and the Company shall
each appoint one member, and the third member of the panel shall be appointed by the other two
members. The Grantee agrees to make himself available for and submit to examinations by such
physicians as may be directed by the Company. Failure to submit to any such examination shall
constitute a breach of a material part of this Agreement. If any such dispute is not settled
within forty-five (45) days from the date of written notice, either party may petition a court of
competent jurisdiction to appoint an arbitrator to conduct a binding arbitration regarding the
dispute under procedures and rules determined by the appointing court.

     (b) Death. If the Grantee’s employment with the Company is terminated because of the
death of the Grantee, the Option, to the extent vested but unexercised on the date on which the
Grantee’s service terminated, may be exercised by the Grantee’s legal representative or other
person who acquired the right to exercise the Option by reason of the Grantee’s death (and as
otherwise permitted by the terms of this Agreement and the Plan) at any time prior to the
expiration of one (1) year after the date on which the Grantee’s service terminated, but in any
event no later than the Option Expiration Date. The Grantee’s service shall be deemed to have
terminated on account of death if the Grantee dies within three (3) months after the Grantee’s
termination of employment with the Company. To the extent not vested, such Option shall
immediately terminate and be canceled upon the effective date of service termination.

 

 

     (c) Other Termination of Service. If the Grantee’s employment with the Company
terminates for any reason, except disability or death, the Option, to the extent vested but
unexercised by the Grantee on the date on which the Grantee’s service terminated, may be exercised
by the Grantee within three (3) months after the date on which the Grantee’s service terminated,
but in any event no later than the Option Expiration Date. Notwithstanding the foregoing, the
Company may, in its sole discretion, cancel the Option in its entirety, both vested and unvested,
if there has been a Termination for Cause of the Grantee. “Termination for Cause” shall mean
termination by the Company (or any successor Subsidiary or Affiliate) of the Grantee’s employment
or service with the Company for any of the following reasons:

          (i) engaging in theft, falsification of any employment or other Company records (or
those of any Subsidiary or Affiliate), or in any acts or omissions constituting dishonesty,
intentional breach of fiduciary obligation or intentional wrongdoing, malfeasance, or intent
to injure the Company;

          (ii) the Grantee’s failure or inability (due to other than disability) to perform any
reasonable assigned duties after written notice from Company of, and a reasonable
opportunity to cure, such failure or inability;

          (iii) any material breach by the Grantee of any employment agreement or any other
agreement between Grantee and Company or any Subsidiary, or other Affiliate, which breach is
not cured pursuant to the terms of such agreement, or if such agreement has no cure
provisions, if such breach or failure by its nature is incapable of being cured, or such
breach or failure remains uncured for more than thirty (30) days following receipt by
Grantee of written notice from the Company specifying the nature of the breach or failure
and demanding the cure thereof; or

          (iv) the Grantee’s conviction of any felony or other criminal act which impairs
Grantee’s ability to perform his or her duties with Company or which involves moral
turpitude, fraud, dishonesty or a breach of trust.

     “Termination for Cause” pursuant to the foregoing shall be determined in the sole but
reasonably exercised discretion of the Company. “Termination for Cause” shall not include any
action by the Grantee in connection with his or her duties if Grantee acted in good faith and in a
manner he or she reasonably believed to be in, and not opposed to, the best interest of Company and
for which Grantee had no reasonable cause to believe his or her
conduct was unlawful.

     6. Manner of Exercise. To exercise an Option under the Plan, the Grantee must give
written notice to the Company, in the form of Exhibit “A” attached hereto, specifying the number of
Shares with respect to which the Grantee elects to exercise the Option together with full payment
of the Exercise Price and payment to the Company of any tax withholding required in connection with
your exercise of the Option (including FICA, Medicare, and local, state, or federal income taxes).
The date of exercise will be the date on which the Company receives the notice. Payment may be made
by any means determined by the Committee in its sole discretion and consistent with the terms of
the Plan.

 

 

     Upon payment of all amounts due from the Grantee, the Company shall cause certificates for the
Optioned Shares then being purchased to be delivered to the Grantee (or the person exercising the
Grantee’s Option in the event of his/her death) at its principal business office within ten (10)
business days after the Exercise Date. The obligation of the Company to deliver Shares shall,
however, be subject to the terms of the Plan and to the condition that if at any time the Committee
shall determine in its discretion that the listing, registration, or qualification of the Option or
the Optioned Shares upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in
connection with, the Option or the issuance or purchase of Shares thereunder. Then, the Option may
not be exercised in whole or in part unless such listing, registration, qualification, consent, or
approval shall have been effected or obtained free of any conditions not acceptable to the
Committee.

     If the Grantee fails to pay for any of the Optioned Shares specified in such notice or fails
to accept delivery thereof, then the Grantee’s right to purchase such Optioned Shares may be
terminated by the Company.

     7. Disqualifying Disposition. In the event that any Shares acquired upon exercise of
this Option are disposed of by the Grantee prior to the expiration of either two years from the
Date of Grant of such Option or one year from the transfer of shares to the Grantee pursuant to the
exercise of such Option, such Grantee shall notify the Company in writing within thirty (30) days
after such disposition of the date and terms of such disposition.

     8. Non-Assignability. This Option is not assignable or transferable by the Grantee
except by will or by the laws of descent and distribution.

     9. Rights as Stockholder. The Grantee will have no rights as a stockholder with
respect to any shares covered by this Option until the issuance of a certificate or certificates to
the Grantee for the shares. Except as otherwise provided in Section 11 hereof, no adjustment shall
be made for dividends or other rights for which the record date is prior to the issuance of such
certificate or certificates.

     10. No Right of Employment. Nothing in the Plan or in any Option granted shall confer
any right on Grantee to continue in the employ of the Company or its Subsidiaries or Affiliates or
shall interfere in any way with the right of the Company or its Subsidiaries or Affiliates to
terminate such Grantee’s employment at any time.

     11. Adjustment of Number of Shares and Related Matters. The number of Shares covered
by this Option and the Option Price are subject to adjustment in accordance with Section 8 of the
Plan.

     12. Grantee’s Representations. Notwithstanding any of the provisions hereof, the
Grantee hereby agrees that he/she will not exercise the Option granted hereby, and that the Company
will not be obligated to issue any shares to the Grantee hereunder, if the exercise thereof or the
issuance of such shares shall constitute a violation by the Grantee or the Company of any provision
of any law or regulation of any governmental authority. Any determination in this connection by the
Committee shall be final, binding, and conclusive. The obligations of the Company and the rights of
the Grantee are subject to all applicable laws, rules, and regulations.

 

 

     13. Investment Representation. Unless the Shares are issued to him/her in a
transaction registered under applicable federal and state securities laws, by his or her execution
hereof, the Grantee represents and warrants to the Company that all Shares which may be purchased
hereunder will be acquired by the Grantee for investment purposes for his or her own account and
not with any intent for resale or distribution in violation of federal or state securities laws.
Unless the Shares are issued to him/her in a transaction registered under the applicable federal
and state securities laws, all certificates issued with respect to the Shares shall bear an
appropriate restrictive investment legend. The Company, in its discretion, may also require the
exercising Grantee to make such customary securities laws and other respresentations and warranties
as it may, upon advise of counsel, deem appropriate from time to time.

     14. Grantee’s Acknowledgments. The Grantee acknowledges receipt of a copy of the Plan
and of the Summary Plan Description and prospectus pertaining to the Plan, which are annexed as
Exhibit “B” hereto, and represents that he or she is familiar with the terms and provisions
thereof, and hereby accepts this Option subject to all the terms and provisions thereof. The
Grantee hereby agrees to accept as binding, conclusive, and final all decisions or interpretations
of the Board, as that term is defined in the Plan, upon any questions arising under the Plan or
this Agreement.

     15. Miscellaneous

           (a) Governing Law. This Agreement shall be governed by, construed, and
enforced in accordance with the laws of the State of Delaware (excluding any conflict of
laws, rules, or principles of Delaware law that might refer the governance, construction, or
interpretation of this agreement to the laws of another state).

          (b) Legal Construction. In the event that any one or more of the terms,
provisions, or agreements that are contained in this Agreement shall be held by a Court of
competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any
reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not
affect any other term, provision, or agreement that is contained in this Agreement and this
Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable
term, provision, or agreement had never been contained herein.

          (c) Covenants and Agreements as Independent Agreements. Each of the covenants
and agreements that is set forth in this Agreement shall be construed as a covenant and
agreement independent of any other provision of this Agreement. The existence of any claim
or cause of action of the Grantee against the Company, whether predicated on this Agreement
or otherwise, shall not constitute a defense to the enforcement by the Company of the
covenants and agreements that are set forth in this Agreement.

          (d) Entire Agreement. This Agreement together with the Plan supersede any and
all other prior understandings and agreements, either oral or in writing, between the
parties with respect to the subject matter hereof and constitute the sole and only
agreements between the parties with respect to the said subject matter. All prior
negotiations and agreements between the parties with respect to the subject matter hereof

 

 

are merged into this Agreement. Each party to this Agreement acknowledges that no
representations, inducements, promises, or agreements, orally or otherwise, have been made
by any party or by anyone acting on behalf of any party, which are not embodied in this
Agreement or the Plan and that any agreement, statement or promise that is not contained in
this Agreement or the Plan shall not be valid or binding or of any force or effect.

     
     (e) Parties Bound. The terms, provisions, representations, warranties,
covenants, and agreements that are contained in this Agreement shall apply to, be binding
upon, and inure to the benefit of the parties and their respective heirs, executors,
administrators, legal representatives, and permitted successors and assigns.

     
     (f) Modification. Except as otherwise specifically set forth in this Agreement
or the Plan, no change or modification of this Agreement shall be valid or binding upon the
parties unless the change or modification is in writing and signed by the parties.
Notwithstanding the foregoing, Grantee acknowledges that the Company, in the exercise of its
sole discretion and without the consent of the Grantee, may amend or modify this Option
Agreement in any manner and delay the payment of any amounts payable pursuant to this Option
Agreement to the extent necessary to meet the requirements of Section 409A of the Code as
amplified by any Internal Revenue Service or U.S. Treasury Department regulations or
guidance as the Company deems appropriate or advisable.

     
     (g) Headings. The headings that are used in this Agreement are used for
reference and convenience purposes only and do not constitute substantive matters to be
considered in construing the terms and provisions of this Agreement.

      
    (h) Gender and Number. Words of any gender used in this Agreement shall be
held and construed to include any other gender, and words in the singular number shall be
held to include the plural, and vice versa, unless the context requires otherwise.

     
     (i) Notice. Any notice or communication required to be delivered or which
otherwise may be given under this Agreement shall be in writing and addressed to the Grantee
or the Company (as the case may be) at the address of Grantee set forth in the employment
records of the Company or of the Company as set forth on the Notice of Exercise. All
required notices shall be deemed given or delivered (i) upon personal delivery, (ii) three
delivery days following deposit in the U.S. Mail, certified and return receipt requested,
postage prepaid and properly addressed to the Grantee, (iii) upon confirmed delivery by
Fed-Ex or comparable nationally recognized overnight courier, or (iv) by facsimile upon the
date of transmission, with machine confirmation and subsequent delivery pursuant to
(i)-(iii) above. All communications to the Company shall be to the attention of the
Corporate Secretary of the Company.

[This space intentionally left blank. Signatures on following page.]

 

 

     IN WITNESS WHEREOF, the Company has caused this Incentive Option Agreement to be executed by
its duly authorized officer, and the Grantee, to evidence his or her consent and approval of all
the terms hereof, has duly executed this Agreement, as of the date first set forth hereinabove.

	 	 	 	 	 
	 	SIRION HOLDINGS, INC.

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 
	 	Print Name:  	 	 
	 	 
	 	Title:  	
 	 

	 	 	 	 	 
	 	 	 
	 	Grantee:

 	 
	 	
 	 
	 	signature   	 
	 	
 	 
	 	print name   	 

 

 

EXHIBIT “A”

to Incentive Option Agreement

SIRION HOLDINGS, INC.

NOTICE OF EXERCISE OF OPTION

	 	 	 
	TO:
	 	Sirion Holdings, Inc.

	 	 	3110 Cherry Palm Drive, Suite 340

	 	 	Tampa, Florida 33619

	 	 	ATTENTION: Corporate Secretary

     The undersigned hereby irrevocably elects to exercise the purchase rights granted under
the Incentive Option Agreement dated as of ___(the “Option Agreement”) between
Sirion Holdings, Inc. (the “Company”) and the undersigned (“Grantee”) pursuant to Sirion
Holdings, Inc. 2006 Stock Incentive Plan (“Plan”). The undersigned Grantee hereby exercises
his/her right to purchase ___(___) Shares in the Company, as constituted
on the date hereof, and herewith makes full payment of ___Dollars
($___) therefore, in form provided for in the Plan.

DATED: ____________________________

	 	 	 	 	 
	 	 

 	 
	 	
 	 
	 	Signature     	 
	 	 	 
	 	Name:_________________________________________________________________

	 	 	 
	 	Address:_______________________________________________________________

	 	 	 
	 	
 	 
	 	Please Print     	 

 

 

	 	 	 	 	 

EXHIBIT “B”

to Incentive Option Agreement

Sirion Holdings, Inc. 2006 Stock Incentive Plan

and Summary Plan Description

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