Document:

ex10-6.htm

EXHIBIT 10.6

INTERNATIONAL COAL GROUP, INC.

EXECUTIVE SEVERANCE PLAN

RECITALS

 

This Executive Severance Plan (the “Plan”) is adopted by International Coal Group, Inc. (“ICG”) and its Affiliates for the benefit of a select group of their management or highly-compensated employees.  The purpose of the Plan is to provide employer funded severance benefits to certain selected employees of ICG and its Affiliates who satisfy the conditions for benefits set forth in the Plan including executing and not revoking a General Release in Full of All Claims.  It is intended that the Plan be a “severance pay plan” as defined in Department of Labor Regulation section 2510.3-2(b) and an unfunded welfare plan maintained for the purpose of providing benefits for a select group of management or highly-compensated employees as described in Department of Labor Regulation section 2520.104-24.

 

ARTICLE I.

DEFINITIONS

 

For purposes of this Plan and exhibits hereto the following definitions shall apply unless the context clearly indicates the contrary:

 

1.01 “Affiliate” shall mean any entity “controlled” by ICG. “Controlled” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities, membership or partnership interests, election or appointment of directors, by contract or otherwise.

 

1.02 “Board of Directors” shall mean the Board of Directors of ICG.

 

1.03 “Certificate of Participation” is the form attached as Exhibit A which designates Employee as a Participant and under which Employee acknowledges the terms and conditions of his eligibility for benefits.

 

1.04 “Compensation Committee” shall mean the Compensation Committee of the Board of Directors and in the absence of such committee the Board of Directors.

 

1.05 “Designated Employee” shall mean an Employee of Employer who (i) is a member of a select group of management of Employer or is a highly compensated employee of Employer and (ii) who is designated pursuant to Article II by the Compensation Committee as eligible to participate in the Plan.

 

1.06 “Employee” shall mean an employee of an Employer.

 

1.07 “Employer” shall mean ICG, ICG, LLC, and any Affiliate which has adopted the Plan with the approval of ICG.

 

1.08 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

  

  

 

  

1.09 “General Release in Full of All Claims Agreement” means that certain agreement under which Participant releases all employment claims against ICG and its Affiliates in the form of Exhibit B as attached hereto and as shall be amended from time to time in the sole discretion of the Plan Administrator.

 

1.10 “ICG” shall mean International Coal Group, Inc., or any successor thereto.

 

1.11 “Involuntary Termination of Employment Not for Cause” shall mean (i) the termination of Designated Employee’s employment by his Employer for any reason other than those set forth in the following sentence or (ii) Designated Employee’s voluntary resignation following either (a) without the Designated Employee’s written consent, a 10% or more reduction in Regular Salary (provided that the Designated Employee provides a written notice to the Employer of any actual or perceived occurrence of such a reduction, and the Employer shall have twenty (20) business days from the date of such notice to cure any alleged deficiency), or (b) his Employer’s written request that Designated Employee voluntarily resign for any reason other than those set forth in the following sentence.  Employee’s termination of employment will be deemed not for cause only if it is for some reason other than the following:  i) conduct by the Employee that amounts to fraud, dishonesty, gross negligence, willful misconduct in connection with any of his employment duties, or willful violation of any of ICG’s or an Affiliate’s policies and procedures, ii) conviction of a felony, or iii) the misappropriation of funds or property belonging to ICG or an Affiliate.  Neither death nor termination as a result of sickness or disability shall be deemed to be an Involuntary Termination of Employment Not for Cause.

 

1.12 “Participants” shall mean those Designated Employees who have executed a Certificate of Participation.

 

1.13 “Plan” shall mean this International Coal Group, Inc. Executive Severance Plan and all attachments hereto.

 

1.14 “Plan Administrator” shall mean International Coal Group, Inc.

 

1.15 “Regular Salary” means the highest monthly regular salary paid to Participant by his Employer during the six months preceding his termination of employment.

 

ARTICLE II.

ELIGIBILITY

 

The Compensation Committee shall, from time to time, designate Employees whom it finds are a member of a select group of management or highly-compensated employees (“select group employee”) to be eligible to participate in the Plan.  In making the determination of who is a select group employee, the rules and regulations issued pursuant to ERISA shall control.  The fact that an Employee is a select group employee shall not entitle him to participate in the Plan unless the Compensation Committee affirmatively designates such Employee as eligible to participate.  Designated Employees will be furnished a Certificate of Participation signed by a member of the Compensation Committee to designate their eligibility for participation and only become a participant upon execution and return to the Plan Administrator of the Certificate of Participation.

  

  

  

ARTICLE III.

SEVERANCE BENEFIT

 

3.01 If a Participant’s employment with Employer terminates in a manner which is an Involuntary Termination of Employment Not for Cause and Participant executes and does not revoke a General Release in Full of All Claims Agreement within sixty (60) days following Participant’s termination of employment, Participant shall be entitled to the following benefits under this Plan:  (i) Participant shall continue to receive his Regular Salary from his Employer for a twelve month period following his termination of employment (subject to the offset in Section 3.02 below and unless sooner terminated under Section 3.03 below), (ii) should Participant elect to continue his health coverage under COBRA through Employer’s group health plan, Employer shall pay the cost of such COBRA health coverage at the same classification (e.g., single, family, etc.) as in effect immediately prior to termination until the earlier of (a) Participant becoming ineligible for COBRA coverage, (b) the payment of eighteen monthly premiums following Participant’s termination of employment, or (c) termination pursuant to Section 3.03 below, (iii) continuation of the Employer provided standard group term life insurance for a twelve month period following his termination of employment (unless sooner terminated under Section 3.03 below), and (iv) financial consulting services (such as AYCO or such other financial consulting services provider that provide such services to Participants and arranged for by ICG or its Affiliates prior to such termination) for a period of twelve months, unless sooner terminated under Section 3.03 below.

 

3.02 During the Participant’s employment with ICG or its Affiliates, Participant will have access to and become familiar with various trade secrets and confidential information belonging to ICG and its various Affiliates including but not limited to costs and strategic planning information.  Participant acknowledges that such confidential information and trade secrets are owned and shall continue to be owned by ICG and its Affiliates.  Participant agrees not to use, communicate, reveal or otherwise make available such information for any purpose whatsoever or to divulge such information to any person, partnership, corporation or entity other than ICG or persons expressly designated by ICG unless such Participant is compelled to disclose it by judicial process.  Additionally, Participant agrees that, for a period of one (1) year after termination of employment, he shall not, directly or indirectly, on his own behalf or with others (A) induce or attempt to induce any ICG employee who is a senior officer of ICG or a direct report to Participant or who is a president, mine superintendent or maintenance superintendent or an equivalent position of any subsidiary or operating unit of ICG or its Affiliates (“Protected Employee”) to leave the employ of ICG or its Affiliates, or in any way interfere with the relationship between ICG and any Protected Employee, except that it is specifically understood that this provision is not violated by any response by a Protected Employee to a publicly announced job opening with Participant or his subsequent employer whether such announcement appears in newspapers, trade publications, web sites or similar public media; (B) induce or attempt to induce any referral source, customer or other business relation of ICG not to do business with ICG, or to cease doing business with ICG; or (C) solicit, divert or actively take away, or attempt to solicit, divert or take away, for purposes of conducting a business substantially similar to the business of ICG, any individual, corporation, partnership or other association or entity who as of the Termination Date, both (i) had a business relationship with ICG or its Affiliates or, to Participant’s knowledge, was during the ninety (90) day period preceding the date of termination of employment solicited in writing by ICG or its Affiliates for business (whether or not he, she or it became an actual customer) and (ii) was personally contacted by Participant during such ninety (90) day period; provided, however, that the foregoing provisions of this Section shall not prohibit Participant from participating in any response to an open bidding or quote request of any customer of ICG or its Affiliates, or prohibit Participant from any solicitation that does not, directly or indirectly, divert business from ICG; and, provided further, that Participant and any subsequent employer may in the ordinary course of business compete with ICG for customers, properties or otherwise, without violating this Section, provided that Participant shall not attempt to induce any entity with which ICG has any existing business relationship to terminate that business relationship prior to the termination of existing contracts or orders with that entity.  Should Participant violate any portion of this provision, ICG’s and Affiliate’s obligation to make any severance benefit payments as set forth in Section 3.01 shall cease.

  

  

  

3.03 Any salary continuation benefit due the Participant shall be payable in accordance with the normal payroll practices of Employer and subject to all applicable withholding taxes.  Upon Participant’s death after meeting all requirements for benefits, the salary continuation payments shall continue to be paid to his estate for the duration of the period described in Section 3.01.

 

ARTICLE IV.

ADMINISTRATION

 

4.01 The Plan Administrator shall have full power and authority to administer, interpret and construe this Plan, and its interpretations and constructions hereof and actions hereunder, including any determination of the amount of payments to be made here from, shall be binding and conclusive on all persons for all purposes.  No agent of ICG or Affiliate shall be liable to any person for any action taken or omitted in connection with the interpretation and administration of the Plan unless attributable to his own willful misconduct or lack of good faith.

 

4.02 Claims for benefits under the Plan must be filed in writing with the Compensation Committee.  Written notice of the disposition of a claim shall be furnished to the claimant within 90 days after the application is filed.  In the event the claim is denied, the reasons for the denial shall be specifically set forth in the notice in language calculated to be understood by the claimant, pertinent provisions of the Plan shall be cited, and, where appropriate, a description of any additional material or information necessary for the claimant to perfect the claim and why such material or information is necessary.  In addition, the claimant shall be furnished with an explanation of the Plan’s claims review procedure, time limits applicable to such procedures including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit termination on review.  The information furnished to the claimant shall comply with Department of Labor Regulations Section 2560.5031(h).

 

4.03 Any Participant who has been denied a benefit by decision of the Compensation Committee pursuant to section 4.02 shall be entitled to request the Plan Administrator to give further consideration to his claim by filing with the Plan Administrator a written request for a hearing.  Such request, together with a written statement of the reasons why the claimant believes his claim should be allowed, shall be filed with the Plan Administrator no later than sixty (60) days after receipt of the written notification provided in section 4.02.  The Plan Administrator shall then conduct a hearing within the next sixty (60) days at which the claimant may be represented by an attorney or other representative of his choosing and expense, and at which the claimant shall have an opportunity to submit written and oral evidence and arguments in support of his claim.  At the hearing (or prior thereto upon five business days written notice to the Plan Administrator), the claimant or his representative shall have an opportunity to review all documents in possession of the Plan Administrator which are pertinent to the claim and its disallowance.  Either the claimant or the Plan Administrator may cause a court reporter to attend the hearing and record the proceedings.  In such event, a complete written transcript of the proceedings shall be furnished to both parties by the court reporter.  The full expense of such court reporter and such transcripts shall be borne by the party causing the court reporter to attend the meeting.  A final decision as to the allowance of the claim shall be made by the Plan Administrator within sixty (60) days of receipt of the appeal (unless there has been an extension of sixty (60) days due to special circumstances, provided the delay and special circumstances occasioning it are communicated to the claimant within the sixty (60) day period).  Such communication shall be written in a manner calculated to be understood by the claimant and shall include specific reasons for the decision, specific references to the pertinent Plan provisions on which the decision is based, and a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records, and other information relevant to the claimant’s claim for benefits.

  

  

  

ARTICLE V.

AMENDMENTS

 

ICG reserves the right, at any time by action of its Compensation Committee to terminate, modify or amend, in whole or in part, any or all of the provisions of the Plan at any time; provided, however, that (i) during the eighteen (18) month period following a Change in Control, the Plan (including any attached exhibits) may not be amended or terminated, if such amendment would be adverse to the interest of any Participant, without the consent of such Participant and (ii) no action by the Compensation Committee or the Board of Directors shall be retroactive nor place substantial additional limitations on the payment of severance benefits to the Participant.  For purposes of Article V, “Change in Control” shall have the meaning ascribed to such term in the International Coal Group, Inc. 2005 Equity and Performance Incentive Plan.

 

ARTICLE VI.

MISCELLANEOUS

 

6.01 Nothing in this Plan shall be construed to give any Participant or other person any right, title, interest or claim in or to any specific asset, fund, reserve account or property of any kind whatsoever owned by ICG or its Affiliates or in which they may have a right, title or interest now or in the future.

 

6.02 The Participants shall only have the status of general unsecured creditors of ICG and Affiliates.  This Plan constitutes a mere promise by ICG and Affiliates to make severance payments in the future.  This Plan is intended to be unfunded for tax purposes and for purpose of Title I of ERISA.

 

6.03 A Participant’s right to benefits under the Plan is not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by creditors of the Participant or the Participant’s beneficiary.

 

6.04 Nothing contained in the Plan shall be construed as conferring upon a Participant the right to continue to serve as an employee of ICG or its Affiliates or to assure Participant of any specific level of compensation from ICG or its Affiliates.

 

6.05 In connection with a termination of employment described in Section 3.01, the Plan Administrator shall furnish to Participant the General Release in Full of All Claims agreement for such Participant’s review and execution which if executed and not revoked within the time limits set forth therein shall release all claims Participant may have against ICG and its related persons.  Participant shall have up to forty-five (45) days to consider the impact of the release and to discuss the release and its impact with his attorney.

 

6.06 As used herein, the masculine gender shall include the feminine and the singular shall include the plural as the circumstances require.

 

6.07 The Plan shall be governed by the laws of West Virginia.

  

  

  

6.08 Payments and benefits under this Plan are intended to comply with Section 409A of the Internal Revenue Code of 1986, as it may be amended from time to time, (“Section 409A”) to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Plan shall be interpreted and administered to be in compliance therewith.

 

6.09 Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, a Participant shall not be considered to have terminated employment with the Employer for purposes of this Plan and no payments shall be due to a Participant under this Plan until such Participant would be considered to have incurred a “separation from service” from the Employer within the meaning of Section 409A.

 

6.10 Notwithstanding any provision of this Plan to the contrary, if a Participant is a “specified employee” (within the meaning of Reg. 1.409A-1(i) and determined pursuant to procedures adopted by ICG) at the time of such Participant’s separation from service, and if any portion of the payments or benefits to be received by such Participant under the Plan upon such Participant’s separation from service would be considered nonqualified deferred compensation under Section 409A, then each portion of such payments and benefits that would otherwise be payable during the six-month period immediately following such Participant’s separation from service shall instead be paid or made available on the earlier of (i) the first business day of the seventh month following the date the Participant incurs a separation from service, or (ii) the Participant’s death.

 

6.11 With respect to any amount of expenses eligible for reimbursement that is required to be included in a Participant’s gross income for federal income tax purposes, such expenses shall be reimbursed by the Employer within sixty (60) days (or, if applicable, on the Permissible Payment Date) following the date on which the Employer receives the applicable invoice from the applicable Participant (and approves such invoice) but in no event later than December 31 of the year following the year in which such Participant incurs the related expenses.  In no event shall the reimbursements or in-kind benefits to be provided by the Employer in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor shall a Participant’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit.

 

6.12 Each payment under the Plan shall be considered a “separate payment” and not one of a series of payments for purposes of Section 409A.

 

	
INTERNATIONAL COAL GROUP, INC.

	  	  
	
By:

	  	
/s/ Roger L. Nicholson

	
Its

	  	
Senior Vice President and Secretary

 

 

	
ATTEST:

	  	  
	  	  	
/s/ J.C. “Max” Wilkinsonex10-8.htm

Exhibit 10.8

 

INTERNATIONAL COAL GROUP, INC.

AMENDED AND RESTATED

2005 EQUITY AND PERFORMANCE INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
Name of Optionee:

	  	  
	
Date of Grant:

	  	  
	
Expiration Date:

	  	  
	
Number of Option Rights:

	  	  
	
Option Price:

	
$

	  
	

Right to Exercise:

	
The Option Right shall be exercisable as to _____ shares of Common Stock on [April 30, 20__], ___ shares on [April 30, 20__], ___ shares on [April 30, 20__] and ___ shares on [April 30, 20__], if the Optionee remains in the continuous employment of the Company through such applicable date.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer, and Optionee has also executed this Agreement in duplicate, as of the day and year first above written.

 

	
INTERNATIONAL COAL GROUP, INC.

	  	  
	  	  	  
	
Name:

	  	  
	
Title:

	  	  
	  	  	  
	
Optionee:

	  	  
	  	  	  

 

THIS AGREEMENT SHALL BE VOID IF IT HAS NOT BEEN EXECUTED AND RETURNED TO THE COMPANY WITHIN 30 DAYS AFTER THE DATE OF GRANT.

 

  

  

  

INTERNATIONAL COAL GROUP, INC.

AMENDED AND RESTATED

2005 EQUITY AND PERFORMANCE INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

 

This AGREEMENT (the "Agreement") is made as of the date of grant on the cover page hereof (the "Date of Grant") by and between International Coal Group, Inc., a Delaware corporation (the "Company"), and the individual named on the cover page hereto (the "Optionee").

 

1. Definitions.  All capitalized terms not otherwise defined herein will have the meaning ascribed to such terms in the Company's Amended and Restated 2005 Equity and Performance Incentive Plan (the "Plan").

 

2. Grant of Stock Option.  Subject to and upon the terms, conditions, and restrictions set forth in this Agreement and in the Plan, the Company hereby grants to the Optionee as of the Date of Grant a stock option to purchase the number of shares of the Company's Common Stock, $0.01 par value per share, shown on the cover page hereof (the "Option Right").  The Option Right may be exercised from time to time in accordance with the terms of this Agreement.  The price at which shares of Common Stock may be purchased pursuant to this Option Right shall be as set forth on the cover page hereof subject to adjustment as hereinafter provided (the "Option Price").  The Option Right is intended to be a non-qualified stock option and shall not be treated as an "incentive stock option" within the meaning of that term under Section 422 of the Code, or any successor provision thereto; this Agreement shall be construed in a manner that will effectuate such intent.

 

3. Term of Option.  The term of the Option Right shall commence on the Date of Grant and, unless earlier terminated in accordance with Section 7 hereof, shall expire 10 years from the Date of Grant.

 

4. Right to Exercise.  Subject to the expiration or earlier termination of this Option Right in accordance with its terms, this Option Right shall become exercisable as set forth on the cover page hereof.  To the extent the Option Right is exercisable, it may be exercised in whole or in part.  In no event shall the Optionee be entitled to acquire a fraction of one share of Common Stock pursuant to this Option Right.  The Optionee shall be entitled to the privileges of ownership with respect to the shares of Common Stock purchased and delivered to him upon the exercise of all or part of this Option Right.

 

5. Option Nontransferable.  The Option Right granted hereby shall be neither transferable nor assignable by the Optionee except by will or by the laws of descent and distribution and, to the extent the Option Right is exercisable hereunder,  may be exercised, during the lifetime of the Optionee, only by the Optionee, or in the event of his or her legal incapacity or death, by his or her guardian or legal representative acting on behalf of the Optionee or the Optionee’s estate in a fiduciary capacity under state law and court supervision.

  

  

  

6. Notice of Exercise; Payment.  To the extent then exercisable, the Option Right may be exercised by written notice to the Company stating the number of shares of Common Stock for which the Option Right is being exercised and the intended manner of payment.  The date of delivery of such notice shall be the exercise date.  Payment equal to the aggregate Option Price of the shares of Common Stock for which the Option Right is being exercised shall be tendered in full with the notice of exercise to the Company in cash in the form of currency or check or other cash equivalent acceptable to the Company.  The Optionee may also tender the Option Price by (a) the actual or constructive transfer to the Company of nonforfeitable, nonrestricted shares of Common Stock that have been owned by the Optionee for more than six months prior to the date of exercise, or (b) by any combination of the foregoing methods of payment, including a partial tender in cash and a partial tender in nonforfeitable, nonrestricted shares of Common Stock.  Nonforfeitable, nonrestricted shares of Common Stock that are transferred by the Optionee in payment of all or any part of the Option Price shall be valued on the basis of their fair market value per share of Common Stock as determined by the Board.  As a further condition precedent to the exercise of this Option Right, the Optionee shall comply with all regulations and requirements of any regulatory authority having control of, or supervision over, the issuance of shares of Common Stock and in connection therewith shall execute any documents which the Board or a committee thereof shall in its sole discretion deem necessary or advisable.  The requirement of payment in cash shall be deemed satisfied if the Optionee makes arrangements that are satisfactory to the Company with a bank or broker that is a member of the National Association of Securities Dealers, Inc. to sell on the exercise date a sufficient number of shares of Common Stock that are being purchased pursuant to the exercise, so that the net proceeds of the sale transaction will at least equal the amount of the aggregate Option Price plus payment of any applicable withholding taxes, and pursuant to which the bank or broker undertakes to deliver to the Company the amount of the aggregate Option Price plus payment of any applicable withholding taxes.

 

7. Termination of Agreement.  This Agreement and the Option Right granted hereby, whether or not vested, shall terminate automatically and without further notice on the earliest of the following dates:

 

(a) One year after the Optionee's death or permanent and total disability, if the Optionee dies or becomes permanently and totally disabled while in the employ of the Company;

 

(b) 90 calendar days after the Optionee ceases to be an employee, advisor, or consultant of the Company and its Subsidiaries for any reason other than as described in Section 7(a) or 7(d) hereof;

 

(c) 10 years from the Date of Grant; or

 

(d) Immediately upon the termination of Optionee's employment for "cause" (as defined below).  For purposes of this Agreement, "cause" shall have the meaning ascribed thereto in any employment agreement applicable to Optionee.  Absent such employment agreement, "cause" shall mean that the Board has determined in good faith that the Optionee committed prior to termination of employment any of the following acts:

  

  

  

(i) an intentional act of fraud, embezzlement, theft, or any other material violation of law in connection with the Optionee's duties or in the course of the Optionee's employment;

 

(ii) intentional wrongful damage to material assets of the Company;

 

(iii) intentional wrongful disclosure of material confidential information of the Company;

 

(iv) intentional wrongful engagement in any competitive activity that would constitute a material breach of the duty of loyalty; or

 

(v) intentional breach of any stated material employment policy of the Company.

 

For the purposes of this Agreement, the continuous employment of the Optionee with the Company shall not be deemed to have been interrupted, and the Optionee shall not be deemed to have ceased to be an employee of the Company, by reason of the transfer of his or her employment among the Company and its Subsidiaries or a leave of absence of not more than 30 days unless otherwise approved by the Board.

 

8. Effect of Certain Transactions. If there is a Change of Control (as defined in the Plan), this Option Right shall terminate on the effective date of such Change of Control, unless provision is made in connection therewith in the sole discretion of the parties thereto for the assumption of this Option Right or the substitution for this Option Right of a new stock option of the successor person or entity or a parent or subsidiary thereof, with appropriate adjustment as to the number and kind of shares and the per share exercise price.  In the event of any transaction which will result in such termination, the Company shall give to the Optionee written notice thereof at least ten calendar days prior to the effective date of such transaction.  Until such effective date, the Optionee may exercise any portion of this Option Right that is or becomes vested on or prior to such effective date, (including the portion of any Option Right that becomes vested pursuant to Section 9(a)), but after such effective date the Optionee may not exercise this Option Right except to the extent it is assumed or substituted by the successor entity (or a parent or subsidiary thereof) as provided above.

 

9. Acceleration of Option Right.  If there is a Change of Control of the Company:

 

(a) The Option Right granted hereby shall become fully vested and exercisable immediately prior to the effective date of such Change in Control; provided, however, that the Board may elect to make a cash payment to the Optionee in cancellation of such Option Right in such amount as the Board in its sole discretion shall determine, which amount shall not be less than the product of (i) and (ii), where (i) is the excess of the Market Value per Share on the date of exercise over the exercise price, and (ii) is the number of shares of Common Stock subject to the Option Right being cancelled.

 

(b) The Board shall have authority to revise the terms of any such Award or any other Award as it, in its discretion, deems appropriate; provided, however, that the Board may not make revisions that are adverse to the Optionee without the Optionee's consent.

 

(c) This Section 9 shall become operative before the application of Section 8.

  

  

  

10. No Employment Contract.  Nothing contained in this Agreement shall confer upon the Optionee any right with respect to continuance of employment by the Company, nor limit or affect in any manner the right of the Company to terminate the employment or adjust the compensation of the Optionee.

 

11. Compliance with Law.  Notwithstanding any other provision of this Agreement, the Option Right shall not be exercisable if the exercise thereof would result in a violation of any applicable federal or state securities law.

 

12. Availability of Common Stock.  The Company shall at all times until the expiration of the Option Right reserve and keep available, either in its treasury or out of its authorized but unissued Common Stock, the full number of shares of Common Stock deliverable upon the exercise of this Option Right.

 

13. Lock-Up Agreement.  The Optionee agrees that, if requested by the Company in connection with an initial public offering, the Optionee will not sell, offer for sale, or otherwise dispose of the Option Rights for such period of time as is determined by the Board, provided that at least of the majority of the Company's directors and officers who hold Option Rights or Common Stock at such time are similarly bound.

 

14. Severability.  In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

 

15. Relation to Plan.  This Agreement is subject to the terms and conditions of the Plan.  In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.  The Board acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein, have the right to determine any questions which arise in connection with this Option Right or its exercise.  Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect the rights of the Optionee under this Agreement without the Optionee's consent.

 

16. Successors and Assigns.  Without limiting or expanding Section 5 hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives, and assigns of the Optionee, and the successors and assigns of the Company.

 

17. Governing Law.  The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Delaware.

 

18. Notices.  Any notice to the Company provided for herein shall be in writing to the Company, marked Attention:  Secretary, and any notice to the Optionee shall be addressed to the Optionee at his or her address on file with the Company.  Any written notice required to be given to the Company shall be deemed to be duly given only when actually received by the Company.

 

19. Securities Laws Compliance.  The Optionee acknowledges that the Option will be held by the Optionee for investment for the Optionee's own account and not with a view to, or for, resale, transfer, or distribution.  The Optionee acknowledges that the Optionee has no intention of participating directly or indirectly in a distribution of the Option Rights.  The Optionee understands that prior to exercising the Option Rights, the Optionee shall be required to reaffirm these representations and warranties as to the shares of Common Stock that shall be issued upon exercise.

 

END OF AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]