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Exhibit
10.9

 

 

TENAX THERAPEUTICS, INC.

NOTICE OF GRANT OF STOCK OPTION

 

Notice is hereby given of the following stock
option grant (the “Option”) to purchase shares of the
Common Stock of Tenax Therapeutics, Inc. (the
“Company”):

 

Optionee:                                            
 

    

Grant Date:

 

Expiration Date:

 

Exercise
Price:                                                       

 

No. of Shares

of Optioned
Stock: 

 

Type of
Option:                                              
☐ Incentive Stock Option 

                                                                         
☐  Non-Statutory Option

 

Plan: Optionee understands and agrees that the Option is
granted subject to and in accordance with the express terms and
conditions of the Company’s 1999 Amended Stock Plan, as
amended and restated June 17, 2008 (the “Plan”).
Optionee further agrees to be bound by the terms and conditions of
the Plan and the terms and conditions of the Option as set forth in
the Option Agreement attached hereto as Exhibit A. The Company
shall provide to Optionee a copy of the Plan upon written request
to the Company.

 

Vesting Schedule:
The Option shall vest and become
exercisable for purchase of the Optioned Stock on the following
schedule:
_____________________________________________________________________.
The Option shall not vest for any Optioned Stock that has not
vested prior to the date the Optionee’s Continuous Status as
an Employee or Consultant (as defined in the Plan)
terminates.

 

Dated:                       
________________, 20___

 

 

	
Optionee
	
Tenax Therapeutics, Inc.
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
________________________	
________________________
	
 	
 
	Name: 
	By: 

	   
	
Title: 

             

 

  Exhibit
A to

Notice
of Grant of Stock Option

 

TENAX
THERAPEUTICS, INC.

STOCK OPTION AGREEMENT

 

A.           
The Board of Directors (the “Board”) and stockholders
of Tenax Therapeutics, Inc. (“the Company”) have
adopted the 1999 Amended Stock Plan, as amended and restated June
17, 2008 (the “Plan”) for the purpose of attracting and
retaining the services of key employees (including officers and
directors), non-employee Board members and consultants and other
independent advisors. All capitalized terms used herein and not
otherwise defined shall have the meaning ascribed to such terms in
the Plan.

 

B.           
Optionee is an individual who is to render valuable services to the
Company or one or more Subsidiaries, and this Agreement is executed
pursuant to, and is intending to carry out the purposes of, the
Plan in connection with the grant of a stock option to purchase
shares of the Company’s Common Stock under the
Plan.

 

NOW, THEREFORE, it is hereby agreed as
follows:

 

1.            
Grant
of Option. Subject to and upon the terms and conditions set
forth in this Agreement, the Company hereby grants to Optionee, as
of the grant date (the “Grant Date”) specified in the
accompanying Notice of Grant, an Option to purchase up to that
number of shares of Common Stock (the “Optioned Stock”)
as is specified in the Notice of Grant. Such Optioned Stock shall
be purchased from time to time during the Option term at the
exercise price (the “Exercise Price”) specified in the
Notice of Grant.

 

2.            
Option
Term. This Option shall expire at the close of business on
the expiration date (the “Expiration Date”) specified
in the Notice of Grant, unless sooner terminated under the
Plan.

 

3.            
Limited
Transferability. This Option shall be exercisable only by
Optionee during Optionee’s lifetime and shall not be
transferable or assigned by Optionee other than by will or by the
laws of descent and distribution following Optionee’s
death.

 

4.            
Exercisability.
This Option shall become exercisable for the Optioned Stock in
accordance with the vesting schedule, if any, specified in the
Notice of Grant. As the Option becomes exercisable for one or more
installments, those installments shall accumulate, and the Option
shall remain exercisable for the accumulated installments until the
Expiration Date or sooner termination of the Option (a) on the date
that is three months following the date of termination of the
Optionee’s Continuous Status as
an Employee or Consultant, as provided in Section 7(c)(iii) of the
Plan, (b) on the date that is 12 months following the date
of termination of the Optionee’s Continuous Status as an Employee or Consultant due
to disability, as provided in Section 7(c)(iv) of the Plan,
(c) on the date that is 12 months following the date of
termination of the Optionee’s Continuous Status as an Employee or Consultant due
to death, as provided in Section 7(c)(v) of the Plan, or (d) the
date of termination of the Option pursuant to Section 18 of the
Plan. Except as provided in the Notice of Grant, this Option
shall not become exercisable for any additional Optioned Stock
following termination of the Optionee’s Continuous Status as an Employee or
Consultant.

 

 

 

 

5.            
Privilege of Stock
Ownership. The holder of this Option shall not have any of
the rights of a stockholder with respect to the Optioned Stock
until such individual shall have exercised the Option and paid the
exercise price for the Optioned Stock so purchased.

 

6.            
Exercising
Option. In order to exercise this Option with respect to all
or any part of the Optioned Stock for which this Option is at the
time exercisable, Optionee (or in the case of exercise after
Optionee’s death, Optionee’s executor, administrator,
heir or legatee, as the case may be) must take the following
actions and otherwise comply with the requirements of the
Plan:

 

(a)           
Deliver to the Corporate Secretary of the Company an executed
notice of exercise in substantially the form of Appendix I to this
Agreement (the “Exercise Notice”) in which there is
specified the number of shares of Optioned Stock that are to be
purchased under the exercised Option.

 

(b)           
Pay the aggregate Exercise Price for the purchased shares through
one or more of the following alternatives, subject to any
limitations or restrictions set forth in the Plan:

 

(1)           
full payment in cash or by check made payable to the
Company’s order;

 

(2)            by
means of a “cashless exercise” in which the Optionee
shall be entitled to receive a certificate for the number of shares
(subject to any tax withholding or adjustment) equal to the
quotient obtained by dividing [(A-B) (X)] by (A),
where:

 

(A) =
the Fair Market Value per share on the trading day immediately
preceding the date of exercise;

 

(B) =
the purchase price per share under the Option Agreement;
and

 

(X) =
the number of shares with respect to which the Option is exercised
as stated in the notice of exercise.

 

 

2

 

 

7.            
Governing
Law. The
interpretation, performance and enforcement of this Agreement shall
be governed by the laws of the state of Delaware without resort to
that state’s conflict-of-laws provisions.

 

8.            
No
Employment/Service Contracts. Nothing in this Agreement or in the
Plan shall confer upon Optionee any right to continue in the
Service of the Company (or any Subsidiary employing or retaining
Optionee) for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Company (or any
such Subsidiary) or Optionee, which rights are hereby expressly
reserved by each party, to terminate Optionee’s Service at
any time for any reason whatsoever, with or without
cause.

 

9.            
Notices.
Any notice required to be given or delivered to the Company under
the terms of this Agreement shall be in writing and addressed to
the Company in care of the Company Chief Financial Officer at the
Company’s offices at ONE Copley Parkway, Suite 490,
Morrisville, North Carolina 27560. Any notice required to be given
or delivered to Optionee shall be in writing and addressed to
Optionee at the address indicated on the Notice of Grant. All
notices shall be deemed to have been given or delivered upon
personal delivery or upon deposit in the U. S. Mail, by registered
or certified mail, postage prepaid and properly addressed to the
party to be notified.

 

10.            
Construction.
This Agreement and the Option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject
to the express terms and provisions of the Plan, unless, in the
specific instance, a provision in this Agreement states that it
supersedes a provision in the Plan. All decisions of the
Administrator with respect to any question or issue arising under
the Plan or this Agreement shall be conclusive and binding on all
persons having an interest in this Option.

 

11.            
Additional Terms
Applicable to an Incentive Stock Option. In the event this Option is designated
an Incentive Stock Option in the Notice of Grant, the following
terms and conditions shall also apply to the grant:

 

a.           
If this Option is to become exercisable in a series of installments
as indicated in the Notice of Grant, no such installment shall
qualify for favorable tax treatment as an Incentive Stock Option
under the Federal tax laws if (and to the extent) the aggregate
Fair Market Value (determined at the Grant Date) of the shares of
the Company’s Common Stock for which such installment first
becomes exercisable hereunder will, when added to the aggregate
value (determined as of the respective date or dates of grant) of
the Common Stock or other securities for which this Option or one
or more other Incentive Stock Options granted to Optionee prior to
the Grant Date (whether under the Plan or any other option plan of
the Company or any Subsidiary) first become exercisable during the
same calendar year, exceed $100,000 in the aggregate. Should the
number of shares of Common Stock for which this Option first
becomes exercisable in any calendar year exceed the applicable
$100,000 limitation, the Option may nevertheless be exercised for
those excess shares in such calendar year as a non-statutory
option.

 

b.           
Should the exercisability of this Option be accelerated upon a
merger or corporate reorganization, then this Option shall qualify
for favorable tax treatment as an Incentive Stock Option under the
Federal tax laws only to the extent the aggregate Fair Market Value
(determined at the Grant Date) of the number of shares of the
Company’s Common Stock for which this Option first becomes
exercisable in the calendar year in which the corporate transaction
occurs does not, when added to the aggregate value (determined as
of the respective date or dates of grant) of the shares of Common
Stock or other securities for which this Option or one or more
other Incentive Stock Options granted to Optionee prior to the
Grant Date (whether under the Plan or any other option plan of the
Company or any Subsidiary) first become exercisable during the same
calendar year, exceed $100,000 in the aggregate. Should the number
of shares of Common Stock for which this Option first becomes
exercisable in the calendar year of such corporate transaction
exceed the applicable $100,000 limitation, the Option may
nevertheless be exercised for the excess shares in such calendar
year as a non-statutory option.

 

 

3

 

 

c.           
Should Optionee hold, in addition to this Option, one or more other
options to purchase shares of the Company’s Common Stock
which become exercisable for the first time in the same calendar
year as this Option, then the foregoing limitations on the
exercisability of such options as Incentive Stock Options under the
Federal tax laws shall be applied on the basis of the order in
which such options are granted.

 

d.           
To the extent this Option should fail to qualify for Incentive
Stock Option treatment under the Federal tax laws, Optionee shall
recognize compensation income at the time the Option is exercised
in an amount equal to the Fair Market Value of the Optioned Stock
so purchased less the aggregate Exercise Price paid for those
shares, and Optionee must make appropriate arrangements with the
Company or any Subsidiary employing Optionee for the satisfaction
of all Federal, state or local income and employment tax
withholding requirements applicable to such compensation
income.

 

12.            
Additional Terms
Applicable to a Non-Statutory Stock Option. In the event this Option is designated
a non-statutory stock option in the Notice of Grant, Optionee shall
make appropriate arrangements with the Company or any Subsidiary
employing Optionee for the satisfaction of all Federal, state or
local income and employment tax withholding requirements applicable
to the exercise of this Option.

 

13.            
Restrictions Under
Securities Laws. The
shares of Common Stock issuable upon exercise of the Option have
not been registered under the Securities Act of 1933 and applicable
state statutes, and can only be sold in reliance on exemptions from
the registration provisions of the Securities Act of 1933 and
applicable state statutes. The Optionee agrees and acknowledges
that any purported exercise of the Option is conditioned on, and
subject to, any compliance with requirements of applicable Federal
and state securities laws deemed necessary by the Company, and the
inability or failure of the Company to satisfy any such
requirements and, therefore, reject exercise of the Option, shall
not subject the Company to any liability to the Optionee. The
shares of Common Stock issued on exercise of the Option shall be
(unless registered under applicable Federal and state securities
laws) unregistered or “restricted” securities and may
be sold by the Optionee only if registered under the Securities Act
of 1933 and, in some cases, under the applicable state securities
laws or under an exemption from such registration
requirements.

 

 

 

4

 

Appendix
I

 

FORM
OF PURCHASE

(to
be signed only upon exercise of Option)

 

TO:       
Tenax Therapeutics, Inc.

 

The
Optionee, holder of the attached Option, hereby irrevocable elects
to exercise the purchase rights represented by the Option for, and
to purchase thereunder, ____________________________________ shares
of Common Stock of Tenax Therapeutics, Inc., and herewith makes
payment therefor, and requests that the certificate(s) for such
shares be delivered to the Optionee at:

 

______________________________________________________________________________

 

______________________________________________________________________________

 

______________________________________________________________________________

 

The
Optionee agrees and acknowledges that this purported exercise of
the Option is conditioned on, and subject to, any compliance with
requirements of applicable federal and state securities laws deemed
necessary by the Company, and to Optionee’s satisfaction of
all Federal, state or local income and employment tax withholding
requirements applicable to this exercise.

 

DATED
this ________ day of ________________________________,
__________.

 

	
 

	
____________________________________

Signature

 

 

 

5Exhibit 10.1

 

 

November 8, 2016

 

Mark Jolly

918 Parkview Lane

Southlake, TX 76092

(214) 796-4189

mnmjolly@yahoo.com

 

Dear Mark:

 

On behalf of Global Power Equipment Group Inc. (the “Company”), I am pleased to offer you the position of Vice President, Finance within our organization.

 

The details of our employment offer are outlined below:

 

	
Start Date:
    	
November   29, 2016
    
	
Location:
    	
Irving,   TX
    
	
Base Pay:
    	
$260,000   annualized
    

 

Position: Vice President, Finance, provided that you will be appointed Chief Accounting Officer/Principal Accounting Officer, subject to Board approval, after the Company files its 2015 Annual Report on Form 10-K with the Securities and Exchange Commission.

 

Short-Term Incentive:  You shall be eligible to participate in the Company’s short-term incentive (“STI”) program starting with the 2016 fiscal year.  Your “target” STI opportunity shall be 40% of your Annual Base Salary, with a maximum of 80% of your Annual Base Salary, prorated based on your start date.  Your payment under the STI program shall be based on the extent to which certain predetermined performance objectives established by the Company have been achieved for that year.  We anticipate that the performance objectives will include a mix of Company-wide or division-wide financial goals and individual goals.  You must be actively employed by the Company at the time of the payout to be eligible for a STI payment for any fiscal year.

 

Long-Term Incentive:  You will receive a 2016 long-term incentive (“LTI”) award of 19,000 Performance-Based Restricted Stock Units (“PRSUs”), and Time-Based Restricted Stock Units (“TRSUs”) with a delivered value of $43,750.  The number of TRSUs will be determined based on the average closing price of Global Power’s common stock for the 5 trading days ending on the 30th day following the Company’s submission of restated financials to the SEC.  The performance objective for the PRSUs is the achievement of a trading price per share greater than or equal to $5.50 for any period of 30 consecutive trading days prior to August 5, 2021.  The PRSUs are scheduled to vest in equal amounts on

 

 

 

March 31, 2017 and March 31, 2018 (50% on each date), subject to the achievement of the performance objective and your continued employment.  If the performance objective is not met by the scheduled vesting dates, vesting will be delayed until the performance objective is met, subject to your continued employment. The TRSUs will vest on March 31, 2018, subject to your continued employment.  The performance criteria for the LTI awards for 2016 and future periods are set by the Compensation Committee. Future LTI grants, if any, will be subject to the discretion of the Compensation Committee.

 

One-Time Payment:  In order to compensate you for the loss of any incentive compensation with your current employer, you will receive: (a) $20,000 (less applicable withholdings) on the first payroll date after you join the Company; and (b) an additional 2,500 PRSUs and 2,500 TRSUs, which shall be subject to the same vesting conditions and schedules described above.

 

Time Off:  As of your start date, you will be eligible to begin accruing four (4) weeks of vacation which will accrue on a per payroll basis.  In addition, the Company offers paid holiday and sick time.

 

Benefits:  As a full-time employee, you shall be eligible to participate in the Company’s benefit programs which include: medical, dental, vision, 401(k), and flexible spending accounts.

 

Severance:  You will participate in the Executive Severance Plan. Your severance arrangement shall equal continued Annual Base Salary for: a twelve month period.  You will not be eligible for severance if your termination is deemed for “cause” or you voluntarily leave the company.  Notwithstanding anything to the contrary contained in the Executive Severance Plan:

 

(a)  For purposes of your participation in the Executive Severance Plan, “Good Reason” shall mean (i) a reduction of your Annual Base Salary by five percent (5%) or more (other than an across-the-board reduction which applies in a comparable manner to other senior executives of the Company), or (ii) a material diminution in your authority, duties or responsibilities (or the authority, duties or responsibilities of the person to whom you are required to report); provided, in any case, that you give notice to the Company of the existence of the condition constituting Good Reason within 30 days after the initial existence of such condition, the Company fails to cure such condition within 30 days after receiving such notice, and you terminate your employment within 90 days after the initial occurrence of such condition;

 

 

(b)  The Company may not amend or terminate the Executive Severance Plan, as it applies to you, in a manner that impairs your rights thereunder without your prior written consent; and

 

(c)  Notwithstanding any of the provisions of Sections 10 and 11 of the Executive Severance Plan, you shall be entitled to receive severance benefits in accordance with Section 4(a) of the Executive Severance Plan and the provisions of this offer letter, with no requirement that you file any claim for benefits under Section 11 of the Executive Severance Plan, if (i) you incur a Qualified Termination, (ii) you timely comply with the Release requirements of Sections 5 of the Executive Severance Plan, and (iii) you comply with the restrictive covenant provisions of Section 7 of the Executive Severance Plan.

 

Your employment with us is contingent on receipt of a favorable background check, which includes a criminal check, confirmation of references and a negative drug screen.  As a condition of your employment and continued employment at the Company, you are and will be required at all times to comply with the Company’s policies and rules, including, but not limited to the policies and rules regarding trade secrets, intellectual property, confidential information, the non-solicitation of employees, non-competition restrictions and the Company’s Code of Business Conduct and Ethics.  In this regard, this offer of employment is contingent upon you signing a confidentiality, non-compete, and non-solicit agreement in a form to be provided by the Company, on or prior to your Start Date.  Additionally, as a condition of your employment at the Company, you are required, at all times, to not use or disclose the confidential and/or proprietary information of your prior employer.

 

We are excited about you joining us and look forward to a beneficial and productive relationship.  Nevertheless, please note that this offer letter is not a contract of employment for any specific or minimum term and that the employment the Company offers you is terminable at will.  This means that our employment relationship is voluntary and based on mutual consent.  You may resign your employment and the Company likewise may terminate your employment, at any time, for any reason, with or without cause or notice.  Any prior oral or written representations to the contrary are void.

 

Once again, I am pleased to extend this offer of employment.  Should you have any questions, please do not hesitate to contact me at (214) 574-2705.

 

Best regards,

 

	
/s/ Craig   Holmes
    	
 
    
	
Craig   Holmes
    	
 
    
	
Senior   Vice President, Finance
    	
 
    

 

 

By signing below, I accept the employment offer as set forth above and represent and warrant to the Company as follows:

 

I am not a party to any non-compete or non-solicitation agreement (customers, employees or both) or other contractual restriction with a current or former employer and I understand and acknowledge that the Company is relying on that representation in making this offer of employment to me.  I understand that in the event that this representation is untrue, or in the event that I have mistakenly advised the Company regarding my obligations to my prior employer(s), the Company reserves the right to revoke or rescind this offer, and to terminate my employment if I have already become employed at the Company, without penalty.

 

I have disclosed to the Company in writing all material threatened, pending, or actual claims against me that are unresolved and still outstanding as of the Start Date, in each case of which I am aware, resulting or arising from my service with my current employer (or any other previous employer) or my membership on any boards of directors.

 

I understand and acknowledge that this offer is for a full-time regular position and that no other outside employment will pose a conflict or interfere with my ability to fulfill the job responsibilities as required.

 

	
/s/ Mark   Jolly
    	
 
    	
11/8/16
    
	
Mark   Jolly
    	
 
    	
Date

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