Document:

exv10w2

 

Exhibit 10.2

PACIFIC ASIA PETROLEUM, INC.

2007 STOCK PLAN

STOCK OPTION AGREEMENT

	 	 	 
	Name of Optionee:

	 	 
	 
	 	 
	Shares Subject to Option:

	 	Common Stock
	 
	 	 
	INCENTIVE STOCK OPTION

	 	_____ shares of Common Stock,
$0.001 par value, of Pacific Asia
Petroleum, Inc. (the “Optioned
Shares”)
	 
	 	 
	Purchase Price Per Share:

	 	$_____
	 
	 	 
	Option Grant Date:
	 	 
	 
	 	 
	Date
Incentive Stock Option
Becomes
Exercisable:

	 	This Option may be exercised
with respect to _____ of the
total Shares subject to this
option when the Optionee completes
each three months of continuous
employment starting from the date
of Option grant. This option may
become exercisable on an
accelerated basis under Section 8
of this Stock Option Agreement.
	 
	 	 
	Termination Date of Option:

	 	[10 years from date of grant]

 

 

     This Stock Option Agreement (this “Agreement”) is executed and delivered as of                      by
and between Pacific Asia Petroleum, Inc., a Delaware corporation (the “Company”) and the
                    . The Optionee and the Company hereby agree as follows:

	1.	 	The Company, pursuant to the Pacific Asia Petroleum, Inc. 2007 Stock Plan (the “Plan”), which
is incorporated herein by reference, and subject to the terms and conditions thereof, hereby
grants to the Optionee an option to purchase the Optioned Shares at the Purchase Price Per
Share.
	 
	2.	 	The option granted hereby (“Option”) shall be treated as an incentive stock option under the
Internal Revenue Code.
	 
	3.	 	The Option granted hereby shall terminate, subject to the provisions of the Plan, no later
than at the close of business on the Termination Date.
	 
	4.	 	The Optionee shall comply with and be bound by all the terms and conditions contained in the
Plan, as incorporated by reference herein.
	 
	5.	 	Options granted hereby shall not be transferable except by will or the laws of descent and
distribution. During the lifetime of the Optionee, the Option may be exercised only by the
Optionee, the guardian or legal representative of the Optionee.
	 
	6.	 	The obligation of the Company to sell and deliver any stock under this Option is specifically
subject to all provisions of the Plan and all applicable laws, rules, regulations and
governmental and stockholder approvals.
	 
	7.	 	Any notice by the Optionee to the Company hereunder shall be in writing and shall be deemed
duly given only upon receipt thereof by the Company at its principal offices. Any notice by
the Company to the Optionee shall be in writing and shall be deemed duly given if mailed to
the Optionee at the address last specified to the Company by the Optionee.
	 
	8.	 	In addition to the change of control provisions specified under Section 14(e) of the Plan and
the other conditions set forth in this Agreement, the Company hereby agrees that all or part
of this Option may be exercised prior to its expiration at the time or times set forth below:

     (a) If the Company is subject to a Change in Control (as defined in below in this
Agreement and not as defined in the Plan) before the Optionee’s employment terminates, this
Option shall become exercisable in full if and only if (i) this Option does not remain
outstanding following the Change in Control; (ii) this Option is not assumed by the
surviving corporation or its parent; (iii) the surviving corporation or its parent does not
substitute an option with substantially the same terms for this Option; OR (iv) the full
value of the vested shares under this Option is not settled in cash or cash equivalents.

     (b) If Paragraph (a) above does not apply, AND if the Optionee is subject to an
Involuntary Termination (defined below) within 12 months after the Change in Control, then
this Option shall become exercisable in full. However, in the case of an

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employee incentive stock option described in Section 422(b) of the Code, the
acceleration of exercisability shall not occur without the Optionee’s written consent.

     (c) If Paragraph (a) above does not apply, and if the Company is subject to a Change of
Control, then fifty percent (50%) of the remaining options shall become exercisable in full,
and the remaining options shall become exercisable at the rate set forth herein, reduced by
the accelerated Shares. All other terms and conditions shall remain unchanged.

     (d) Definitions

               (i) “Change in Control” shall mean:

               (1) The consummation of a merger or consolidation of the Company with or into another
entity or any other corporate reorganization, if persons who were not controlling
stockholders of the Company immediately prior to such merger, consolidation or other
reorganization own immediately after such merger, consolidation or other reorganization 50%
or more of the voting power of the outstanding securities of each of (A) the continuing or
surviving entity and (B) any direct or indirect parent corporation of such continuing or
surviving entity; or (2) The sale, transfer or other disposition of all or substantially all
of the Company’s assets.

A transaction shall not constitute a Change in Control if its sole purpose is to change the
state of the Company’s incorporation or to create a holding company that will be owned in
substantially the same proportions by the persons who held the Company’s securities
immediately before such transaction.

               (ii) “Involuntary Termination” shall mean the termination of the Optionee’s Service by
reason of: (1) The involuntary discharge of the Optionee by the Company (or the Parent or
Subsidiary employing him or her) for reasons other than Cause; or (2) The voluntary
resignation of the Optionee following a reduction in the Optionee’s base salary or receipt
of notice that the Optionee’s principal workplace will be relocated more than 30 miles.

	9.	 	The validity and construction of this Agreement shall be governed by the laws of the State of
California.

This Agreement is made under and subject to the provisions of the Plan, and all of the provisions
of the Plan are also provisions of this Agreement. If there is a difference or conflict between
the provisions of this Agreement and the provisions of the Plan, the provisions of the Plan will
govern. By signing this Agreement, the Optionee accepts and agrees to all of the foregoing terms
and provisions and to all of the terms and provisions of the Plan incorporated herein by reference
and confirms that he or she has received a copy of the Plan.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
representative and the Optionee has hereunto set his hand as of the date here above first written.

	 	 	 	 	 
	 	Pacific Asia Petroleum, Inc.:

 	 
	 	By:  	
 	 
	 	 	Name:  	Frank C. Ingriselli	 
	 	 	Title:  	
CEO and President 	 
	 	 	 
	 	
 	 
	 	Optionee: 	 
	 	 	 
	 

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Exhibit 10.3

PACIFIC ASIA PETROLEUM, INC.

2007 STOCK PLAN

RESTRICTED STOCK AGREEMENT
 

	 	 	 
	 
	Name of Recipient:

	 	__________________
	 
	 	 
	 
	 	 
	 
	Total Number of Shares Granted:

	 	__________________shares of common stock,

$0.001 par value, of Pacific Asia Petroleum, Inc.
	 
	 	 
	 
	Fair Market Value Per Share:
	 	$__________________ 
	 
	 	 
	 
	 	 
	 
	Total Fair Market Value of Award
	 	 
	 
	 	 
	 
	 	 
	 
	Grant Date:
	 	 
	 
	 	 
	 
	 	 
	 
	Vesting Commencement Date
	 	 
	 
	 	 
	 
	 	 
	 
	Vesting Schedule:
	 	 
	 
	 	 
	 
	 	 
	 

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     This Restricted Stock Purchase Agreement (this “Agreement”) is executed and delivered as of
_____________________, 200___by and between Pacific Asia Petroleum, Inc., a Delaware corporation (the
“Company”) and ________________________ (“Recipient”). Recipient and the Company hereby agree as follows:

	1.	 	The Company, pursuant to the Pacific Asia Petroleum, Inc. 2007 Stock Plan (the “Plan”),
attached hereto as Exhibit A, which is incorporated herein by reference, and subject to the
terms and conditions thereof, hereby grants to the Recipient the Shares at the Fair Market
Value Per Share. The Recipient shall comply with and be bound by all the terms and conditions
contained in the Plan, as incorporated by reference herein.
	 
	2.	 	Recipient further agrees that the Company may deliver by email all documents relating to the
Plan or this award (including, without limitation, prospectuses required by the Securities and
Exchange Commission) and all other documents that the Company is required to deliver to its
security holders (including, without limitation, annual reports and proxy statements). Any
notice by the Company to the Recipient shall be in writing and shall be deemed duly given if
mailed to the Recipient at the address last specified to the Company by the Recipient.
Recipient also agrees that the Company may deliver these documents by posting them on a web
site maintained by the Company or by a third party under contract with the Company. If the
Company posts these documents on a web site, it will notify you by email.
	 
	3.	 	The obligation of the Company to sell and deliver the Shares is specifically subject to all
provisions of the Plan and all applicable laws, rules, and regulations.
	 
	4.	 	Recipient makes the following representations and covenants to the Company:

	 	(a)	 	Recipient is an “accredited investor” as defined under Exhibit B attached
hereto.
	 
	 	(b)	 	Recipient shall not assign, encumber or dispose of any interest in such Shares
except in compliance with the applicable state and federal securities laws. All
transferees of Shares or any interest therein will receive and hold such Shares or
interest subject to the provisions of this Agreement. Any sale or transfer of the
Shares shall be void unless the provisions of this Agreement are satisfied.
	 
	 	(c)	 	Recipient is aware of the Company’s business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Shares. Recipient is acquiring the Shares for
investment for his or her own account only and not with a view to, or for resale in
connection with, any “distribution” thereof within the meaning of the Securities Act of
1933, as amended (the “Securities Act”).
	 
	 	(d)	 	Recipient understands that the Shares have not been registered under the
Securities Act by reason of a specific exemption therefrom, which exemption depends
upon, among other things, the bona fide nature of Recipient’s investment intent as
expressed herein.
	 
	 	(e)	 	Recipient understands that the Shares are “restricted securities” under
applicable U.S. federal and state securities laws and that, pursuant to these laws,
Recipient

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	 	 	 	must hold the Shares indefinitely unless they are registered with the Securities and
Exchange Commission and qualified by state authorities, or an exemption from such
registration and qualification requirements is available. Recipient acknowledges
that the Company has no obligation to register or qualify the Shares for resale.
Recipient further acknowledges that if an exemption from registration or
qualification is available, it may be conditioned on various requirements including,
but not limited to, the time and manner of sale, the holding period for the Shares,
and requirements relating to the Company which are outside of the Recipient’s
control, and which the Company is under no obligation and may not be able to
satisfy.

	 	(f)	 	Recipient understands that Recipient may suffer adverse tax consequences as a
result of Recipient’s acquisition or disposition of the Shares. Recipient represents
that Recipient has consulted any tax consultants Recipient deems advisable in
connection with the acquisition or disposition of the Shares and that Recipient is not
relying on the Company or Seller for any legal or tax advice.
	 
	 	(g)	 	Recipient agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate “stop transfer” instructions to
its transfer agent, if any.

	5.	 	The Company shall not be required (i) to transfer on its books any Shares that have been sold
or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to
treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.
	 
	6.	 	The validity and construction of this Agreement shall be governed by the laws of the State of
California. The parties herein waive trial by jury and agree to submit to the personal
jurisdiction and venue of a court of subject matter jurisdiction located in San Francisco,
California. In the event that litigation results from or arises out of this Agreement or the
performance thereof, the parties agree to reimburse the prevailing party’s reasonable
attorney’s fees, court costs, and all other expenses, whether or not taxable by the court as
costs, in addition to any other relief to which the prevailing party may be entitled.
	 
	7.	 	The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable
by the Company’s successors and assigns. The rights and obligations of Recipient under this
Agreement may only be assigned with the prior written consent of the Company.
	 
	8.	 	This Agreement is made under and subject to the provisions of the Plan, and all of the
provisions of the Plan are also provisions of this Agreement. If there is a difference or
conflict between the provisions of this Agreement and the provisions of the Plan, the
provisions of the Plan will govern. By signing this Agreement, the Recipient accepts and
agrees to all of the foregoing terms and provisions and to all of the terms and provisions of
the Plan incorporated herein by reference and confirms that he or she has received a copy of
the Plan.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized
representative and the Recipient has hereunto set his hand as of the date here above first written.

	 	 	 	 	 
	  	Pacific Asia Petroleum, Inc.:

 	 
	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	Frank C. Ingriselli 	 
	 	 	Title:  	CEO and President

 	 
	 
	 	 	 
	 	Recipient:	 

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EXHIBIT A

2007 STOCK PLAN

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EXHIBIT B

CERTIFICATE OF ACCREDITED INVESTOR STATUS

     Except as may be indicated by the undersigned below, the undersigned is an “accredited
investor,” as that term is defined in Regulation D under the Securities Act of 1933, as amended
(the “Securities Act”). The undersigned has checked the box below indicating the basis on
which he is representing his status as an “accredited investor”:

	o 	 	a bank as defined in Section 3(a)(2) of the Securities Act, or any
savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act whether acting in its
individual or fiduciary capacity; a broker or dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as
amended (the “Securities Exchange Act”); an insurance company as
defined in Section 2(13) of the Securities Act; an investment company
registered under the Investment Company Act of 1940 or a business
development company as defined in Section 2(a)(48) of that Act; a
small business investment company licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; a plan established and maintained by a state,
its political subdivisions, or any agency or instrumentality of a
state or its political subdivisions, for the benefit of its employees,
and such plan has total assets in excess of $5,000,000; an employee
benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974, if the investment decision is made by a plan
fiduciary, as defined in Section 3(21) of such Act, which is either a
bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets
in excess of $5,000,000 or, if a self-directed plan, with investment
decisions made solely by persons that are “accredited investors”;
	 
	o 	 	a private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940;
	 
	o 	 	an organization described in Section 501(c)(3) of the Internal Revenue
Code, corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the
securities offered, with total assets in excess of $5,000,000;
	 
	o 	 	a natural person whose individual net worth, or joint net worth with
the undersigned’s spouse, at the time of this purchase exceeds
$1,000,000;
	 
	o 	 	a natural person who had an individual income in excess of $200,000 in
each of the two most recent years or joint income with the
undersigned’s spouse in excess of $300,000 in each of those years and
has a reasonable expectation of reaching the same income level in the
current year;
	 
	o 	 	a trust with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the securities offered, whose purchase
is directed by a person who has such

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	 	 	knowledge and experience in financial and business matters that he is capable of evaluating
the merits and risks of the prospective investment; or

	o 	 	an entity in which all of the equity holders are “accredited investors” by virtue of their meeting one or more of the above
standards.
	 
	o 	 	an individual who is a director or executive officer of Pacific Asia Petroleum, Inc.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate of Accredited Investor
Status effective as of ________________________, 200___.

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Name of Recipient
	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

[Signature Page to Certificate of Accredited Investor Status]

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