Document:

Exhibit 10.2

 

THE SHARES RECEIVED
PURSUANT TO THIS STOCK OPTION SHALL BE SUBJECT TO THE RIGHTS, RESTRICTIONS, AND
OBLIGATIONS APPLICABLE TO SUCH SECURITIES, ALL AS PROVIDED IN THE SHAREHOLDERS
AGREEMENT DATED AS OF JUNE 12, 2006 BETWEEN THE COMPANY AND ITS SHAREHOLDERS,
AS AMENDED AND IN EFFECT FROM TIME TO TIME (THE “SHAREHOLDERS AGREEMENT”).

 

Performance Stock
Option

 

Granted Under

 

Cellu Parent
Corporation

2006 Stock Option
and Restricted Stock Plan

 

1.                                      Grant of Option.

 

This certificate
evidences an performance stock option (this “Stock Option”) granted by Cellu
Parent Corporation,  a Delaware
corporation (the “Company”), on April 13, 2009, to Steven Ziessler,
an employee of the Company or its subsidiaries (the “Participant”) pursuant to
the Company’s 2006 Stock Option and Restricted Stock Plan (as from time to time
in effect, the “Plan”).  Under this Stock
Option, the Participant or the Participant’s permitted transferee may purchase,
in whole or in part, on the terms herein provided, up to 829 shares of common
stock of the Company (the “Shares”), (the exact number of shares to be
determined according to the cash return conditions set forth below) at $883.27
per Share, which is not less than the fair market value of the Shares on the
date of grant.  The latest date on which
this Stock Option, or any part thereof, may be exercised is April 13, 2019
(the “Final Exercise Date”).  The Stock
Option evidenced by this certificate is intended to be an incentive stock
option as defined in section 422 of the Internal Revenue Code of 1986, as
amended from time to time (the “Code”).

 

This Stock Option is
exercisable in the following circumstances prior to the Final Exercise Date:

 

(a)          390
shares may be earned and vest if the majority owner, Weston Presidio, realizes
a return of 2.5 times its total cash investment in the Company (as determined
by the amount of its investment as of April 13, 2009) at the time of a
sale or any other transfer for value, which also shall include the earning and
vesting of a pro rata percentage in the event of sale or any transfer for value
of less than all its ownership for a 2.5 times multiple; and

 

(b)         an additional 117 shares (for a total of 507 shares)
may be earned and vest if the majority owner, Weston Presidio, realizes a
return of 2.75 

 

 

times its total cash
investment in the Company (as determined by the amount of its investment as of April 13,
2009) at the time of a sale or any other transfer for value, which also shall
include the earning and vesting of a pro rata percentage in the event of sale
or any transfer for value of less than all its ownership for a 2.75 times
multiple; and

 

(c)          an additional 88 shares (for a total of
595 shares) may be earned and vest if the majority owner, Weston Presidio,
realizes a return of 3.00 times its total cash investment in the Company (as
determined by the amount of its investment as of April 13, 2009) at the
time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any
transfer for value of less than all its ownership for a 3.00 times multiple;
and

 

(d)         an additional 117 shares (for a total of
712 shares) may be earned and vest if the majority owner, Weston Presidio,
realizes a return of 3.25 times its total cash investment in the Company (as
determined by the amount of its investment as of April 13, 2009) at the
time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any transfer
for value of less than all its ownership for a 3.25 times multiple; and

 

(e)          an additional 117 shares (for a total of
829 shares) may be earned and vest if the majority owner, Weston Presidio,
realizes a return of 3.5 times its total cash investment in the Company (as
determined by the amount of its investment as of April 13, 2009) at the
time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any
transfer for value of less than all its ownership for a 3.5 times multiple.

 

Notwithstanding the
foregoing, upon termination of the Participant’s Employment, any portion of
this Stock Option that is not then exercisable shall immediately expire and the
remainder of this Stock Option shall remain exercisable for a period equal to
the lesser of (1) thirty days (30) or (2) the period ending on the
latest date this Stock Option could have been exercised without regard to
clause (1), and shall then expire and terminate; provided,
that if the Administrator in its sole discretion determines that such cessation
of the Participant’s Employment has resulted for reasons which constitute cause
for termination of employment, this entire Stock Option shall expire and
terminate immediately upon termination of Employment and no portion thereof
shall thereafter remain exercisable; further provided,
that any portion of this Stock Option that is outstanding immediately prior to
the Participant’s death, to the extent then exercisable, will remain
exercisable for a period equal to the lesser of (1) one year following the
Participant’s death or (2) the period ending on the latest date this Stock
Option could have been exercised without regard to clause (1), and shall then
expire and terminate; and further provided,
that in no event shall any portion of this Stock Option be exercisable after
the Final Exercise Date.

 

 

For purposes of
this Stock Option, cause for termination shall be defined as (i) the
Participant’s repeated and willful refusal or failure (other than during
periods of illness, disability or vacation) to perform the Participant’s duties
hereunder or under any lawful directive of the Board; (ii) the Participant’s
willful misconduct or gross neglect in the performance of the Participant’s
duties hereunder which in either case is materially injurious to the Company or
any of its Subsidiaries, monetarily or otherwise; (iii) the conviction of
the Participant of any felony or any other crime involving dishonesty or moral
turpitude or the Participant’s pleading guilty to any felony, other than motor
vehicle offenses, or
any other crime involving dishonesty or moral turpitude; (iv) the commission of fraud, embezzlement,
theft or other dishonesty by the Participant with respect to the Company or any
of its Affiliates; (v) any other conduct that involves a breach of fiduciary
obligation on the part of the Participant or otherwise could reasonably be
expected to have a material adverse effect upon the business, interests or
reputation of the Company or any of its Affiliates; or (vi) a previous
employer of Participant shall commence against Participant and/or Company an
action, suit, proceeding or demand arising from an alleged violation of a
non-competition or other similar agreement between Participant and such
previous employer.

 

No
act, or failure to act, on the Participant’s part, will be considered “willful”
unless done or omitted to be done by Participant not in good faith and without
a reasonable belief that the Participant’s action or omission was in
furtherance of the Company’s business.

 

2.                                      Exercise of Stock Option.

 

Each
election to exercise this Stock Option shall be in writing, signed by the
Participant or the Participant’s permitted transferee (the “Option Holder”),
and received by the Company at its principal office, accompanied by this
certificate and payment in full as provided in the Plan.  Subject to the further terms and conditions
provided in the Plan, the purchase price may be paid as follows:  (i) by delivery of cash or check
acceptable to the Administrator; (ii) upon and following an initial public
offering of the Company, through a broker-assisted exercise program acceptable
to the Administrator; (iii) if so permitted by the Administrator, through
the delivery of Shares that have been outstanding for at least six months
(unless the Administrator approves a shorter period) and that have a fair
market value equal to the exercise price); (iv) if so permitted by the
Administrator, by delivery to the Company of a promissory note of the person
exercising this Stock Option, payable on such terms as are specified by the
Administrator; or (v) through any combination of the foregoing.  In the event that this Stock Option is
exercised by an Option Holder other than the Participant, the Company will be
under no obligation to deliver Shares hereunder unless and until it is
satisfied as to the authority of the Option Holder to exercise this Stock
Option.

 

3.                                      Restrictions on Transfer of Shares.

 

The
granting of this Stock Option and the issuance of Shares received under this
Stock Option shall be subject to the Plan and the Shareholders Agreement,
and the issuance of this Award shall be conditional upon the execution and
delivery by the undersigned of the 

 

 

Shareholders
Agreement.  Any Shares received under
this Award shall be subject to the rights, restrictions and obligations
applicable to options and shares of Stock of the Company as provided from time
to time in such Shareholders Agreement.

 

If at the time this Stock
Option is exercised the Company or any of its stockholders is a party to any
other agreement restricting the transfer of any outstanding shares of the
Company’s common stock, the Administrator may provide that this Stock Option
may be exercised only if the Shares so acquired are made subject to the
transfer restrictions set forth in that agreement (or if more than one such
agreement is then in effect, the agreement or agreements specified by the
Administrator).

 

4.                                      Withholding; Agreement to Provide
Security.

 

If at the time this Stock
Option is exercised the Company determines that under applicable law and
regulations it could be liable for the withholding of any federal or state tax
upon exercise or with respect to a disposition of any Shares acquired upon
exercise of this Stock Option, this Stock Option may not be exercised unless
the person exercising this Stock Option remits to the Company any amounts
determined by the Company to be required to be withheld (or makes other
arrangements satisfactory to the Company for the payment of such taxes).

 

5.                                      Nontransferability of Stock Option.

 

This Stock Option is not
transferable by the Participant otherwise than by will or the laws of descent
and distribution and is exercisable during the Participant’s lifetime only by
the Participant (or in the event of the Participant’s incapacity, the person or
persons legally appointed to act on the Participant’s behalf).

 

6.                                      Provisions of the Plan.

 

This Stock Option is
subject to the provisions of the Plan, which are incorporated herein by reference.  A copy of the Plan as in effect on the date
of the grant of this Stock Option has been furnished to the Participant.  By exercising all or any part of this Stock
Option, the Participant agrees to be bound by the terms of the Plan and this
certificate.  All initially capitalized
terms used herein will have the meaning specified in the Plan, unless another
meaning is specified herein.

 

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be executed by its duly authorized
officer.

 

	
   

  	
  CELLU PARENT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Russell C. Taylor

  
	
   

  	
  Name: Russell C. Taylor

  
	
   

  	
  Title: Officer

  
	
   

  	
   

  
	
  Dated:  April 13,
  2009

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Acknowledged:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Steven Ziessler

  
	
   

  	
  Steven Ziessler

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  April 17,
  2009Exhibit 10.3

 

THE SHARES RECEIVED
PURSUANT TO THIS STOCK OPTION SHALL BE SUBJECT TO THE RIGHTS, RESTRICTIONS, AND
OBLIGATIONS APPLICABLE TO SUCH SECURITIES, ALL AS PROVIDED IN THE SHAREHOLDERS
AGREEMENT DATED AS OF JUNE 12, 2006 BETWEEN THE COMPANY AND ITS SHAREHOLDERS,
AS AMENDED AND IN EFFECT FROM TIME TO TIME (THE “SHAREHOLDERS AGREEMENT”).

 

Performance Stock
Option

 

Granted Under

 

Cellu Parent
Corporation

2006 Stock Option
and Restricted Stock Plan

 

1.                                      Grant of Option.

 

This certificate
evidences an performance stock option (this “Stock Option”) granted by Cellu
Parent Corporation,  a Delaware
corporation (the “Company”), on April 13, 2009, to Russell C. Taylor,
an employee of the Company or its subsidiaries (the “Participant”) pursuant to
the Company’s 2006 Stock Option and Restricted Stock Plan (as from time to time
in effect, the “Plan”).  Under this Stock
Option, the Participant or the Participant’s permitted transferee may purchase,
in whole or in part, on the terms herein provided, up to 574 shares of common
stock of the Company (the “Shares”), (the exact number of shares to be
determined according to the cash return conditions set forth below) at $883.27
per Share, which is not less than the fair market value of the Shares on the
date of grant.  The latest date on which
this Stock Option, or any part thereof, may be exercised is April 13, 2019
(the “Final Exercise Date”).  The Stock
Option evidenced by this certificate is intended to be an incentive stock
option as defined in section 422 of the Internal Revenue Code of 1986, as
amended from time to time (the “Code”).

 

This Stock Option is
exercisable in the following circumstances prior to the Final Exercise Date:

 

(a)          270
shares may be earned and vest if the majority owner, Weston Presidio, realizes
a return of 2.5 times its total cash investment in the Company (as determined
by the amount of its investment as of April 13, 2009) at the time of a
sale or any other transfer for value, which also shall include the earning and
vesting of a pro rata percentage in the event of sale or any transfer for value
of less than all its ownership for a 2.5 times multiple; and

 

(b)         an additional 81 shares (for a total of 351 shares)
may be earned and vest if the majority owner, Weston Presidio, realizes a
return of 2.75 times its total cash 

 

1

 

investment in the Company
(as determined by the amount of its investment as of April 13, 2009) at
the time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any
transfer for value of less than all its ownership for a 2.75 times multiple;
and

 

(c)          an additional 61 shares (for a total of
412 shares) may be earned and vest if the majority owner, Weston Presidio,
realizes a return of 3.00 times its total cash investment in the Company (as
determined by the amount of its investment as of April 13, 2009) at the
time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any
transfer for value of less than all its ownership for a 3.00 times multiple;
and

 

(d)         an additional 81 shares (for a total of
493 shares) may be earned and vest if the majority owner, Weston Presidio,
realizes a return of 3.25 times its total cash investment in the Company (as
determined by the amount of its investment as of April 13, 2009) at the
time of a sale or any other transfer for value, which also shall include the
earning and vesting of a pro rata percentage in the event of sale or any
transfer for value of less than all its ownership for a 3.25 times multiple;
and

 

(e)          an additional 81 shares (for a total of
574 shares) may be earned and vest if the majority owner, Weston Presidio, realizes
a return of 3.5 times its total cash investment in the Company (as determined
by the amount of its investment as of April 13, 2009) at the time of a
sale or any other transfer for value, which also shall include the earning and
vesting of a pro rata percentage in the event of sale or any transfer for value
of less than all its ownership for a 3.5 times multiple.

 

Notwithstanding the
foregoing, upon termination of the Participant’s Employment, any portion of
this Stock Option that is not then exercisable shall immediately expire and the
remainder of this Stock Option shall remain exercisable for a period equal to
the lesser of (1) thirty days (30) or (2) the period ending on the
latest date this Stock Option could have been exercised without regard to clause
(1), and shall then expire and terminate; provided, that
if the Administrator in its sole discretion determines that such cessation of
the Participant’s Employment has resulted for reasons which constitute cause
for termination of employment, this entire Stock Option shall expire and
terminate immediately upon termination of Employment and no portion thereof
shall thereafter remain exercisable; further provided,
that any portion of this Stock Option that is outstanding immediately prior to
the Participant’s death, to the extent then exercisable, will remain
exercisable for a period equal to the lesser of (1) one year following the
Participant’s death or (2) the period ending on the latest date this Stock
Option could have been exercised without regard to clause (1), and shall then
expire and terminate; and further provided,
that in no event shall any portion of this Stock Option be exercisable after
the Final Exercise Date.

 

2

 

For purposes of
this Stock Option, cause for termination shall be defined as (i) the
Participant’s repeated and willful refusal or failure (other than during
periods of illness, disability or vacation) to perform the Participant’s duties
hereunder or under any lawful directive of the Board; (ii) the Participant’s
willful misconduct or gross neglect in the performance of the Participant’s
duties hereunder which in either case is materially injurious to the Company or
any of its Subsidiaries, monetarily or otherwise; (iii) the conviction of
the Participant of any felony or any other crime involving dishonesty or moral
turpitude or the Participant’s pleading guilty to any felony, other than motor
vehicle offenses, or
any other crime involving dishonesty or moral turpitude; (iv) the commission of fraud, embezzlement,
theft or other dishonesty by the Participant with respect to the Company or any
of its Affiliates; (v) any other conduct that involves a breach of fiduciary
obligation on the part of the Participant or otherwise could reasonably be
expected to have a material adverse effect upon the business, interests or
reputation of the Company or any of its Affiliates; or (vi) a previous
employer of Participant shall commence against Participant and/or Company an
action, suit, proceeding or demand arising from an alleged violation of a
non-competition or other similar agreement between Participant and such
previous employer.

 

No
act, or failure to act, on the Participant’s part, will be considered “willful”
unless done or omitted to be done by Participant not in good faith and without
a reasonable belief that the Participant’s action or omission was in
furtherance of the Company’s business.

 

2.                                      Exercise of Stock Option.

 

Each
election to exercise this Stock Option shall be in writing, signed by the
Participant or the Participant’s permitted transferee (the “Option Holder”),
and received by the Company at its principal office, accompanied by this
certificate and payment in full as provided in the Plan.  Subject to the further terms and conditions
provided in the Plan, the purchase price may be paid as follows:  (i) by delivery of cash or check
acceptable to the Administrator; (ii) upon and following an initial public
offering of the Company, through a broker-assisted exercise program acceptable
to the Administrator; (iii) if so permitted by the Administrator, through
the delivery of Shares that have been outstanding for at least six months
(unless the Administrator approves a shorter period) and that have a fair
market value equal to the exercise price); (iv) if so permitted by the
Administrator, by delivery to the Company of a promissory note of the person
exercising this Stock Option, payable on such terms as are specified by the
Administrator; or (v) through any combination of the foregoing.  In the event that this Stock Option is
exercised by an Option Holder other than the Participant, the Company will be
under no obligation to deliver Shares hereunder unless and until it is
satisfied as to the authority of the Option Holder to exercise this Stock
Option.

 

3.                                      Restrictions on Transfer of Shares.

 

The
granting of this Stock Option and the issuance of Shares received under this
Stock Option shall be subject to the Plan and the Shareholders Agreement,
and the issuance of this Award shall be conditional upon the execution and
delivery by the undersigned of the Shareholders Agreement.  Any Shares received under this Award shall be
subject to the rights, restrictions and 

 

3

 

obligations
applicable to options and shares of Stock of the Company as provided from time
to time in such Shareholders Agreement.

 

If at the time this Stock
Option is exercised the Company or any of its stockholders is a party to any
other agreement restricting the transfer of any outstanding shares of the
Company’s common stock, the Administrator may provide that this Stock Option
may be exercised only if the Shares so acquired are made subject to the
transfer restrictions set forth in that agreement (or if more than one such
agreement is then in effect, the agreement or agreements specified by the
Administrator).

 

4.                                      Withholding; Agreement to Provide
Security.

 

If at the time this Stock
Option is exercised the Company determines that under applicable law and
regulations it could be liable for the withholding of any federal or state tax
upon exercise or with respect to a disposition of any Shares acquired upon
exercise of this Stock Option, this Stock Option may not be exercised unless
the person exercising this Stock Option remits to the Company any amounts
determined by the Company to be required to be withheld (or makes other
arrangements satisfactory to the Company for the payment of such taxes).

 

5.                                      Nontransferability of Stock Option.

 

This Stock Option is not
transferable by the Participant otherwise than by will or the laws of descent
and distribution and is exercisable during the Participant’s lifetime only by
the Participant (or in the event of the Participant’s incapacity, the person or
persons legally appointed to act on the Participant’s behalf).

 

6.                                      Provisions of the Plan.

 

This Stock Option is
subject to the provisions of the Plan, which are incorporated herein by
reference.  A copy of the Plan as in
effect on the date of the grant of this Stock Option has been furnished to the
Participant.  By exercising all or any
part of this Stock Option, the Participant agrees to be bound by the terms of
the Plan and this certificate.  All
initially capitalized terms used herein will have the meaning specified in the
Plan, unless another meaning is specified herein.

 

4

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be executed by its duly authorized
officer.

 

	
   

  	
  CELLU PARENT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
      /s/
  Sean Honey

  
	
   

  	
  Name: Sean Honey

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
  Dated:  April 13,
  2009

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Acknowledged:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Russell C. Taylor

  
	
   

  	
  Russell C. Taylor

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:  April 17,
  2009

  	
   

  

 

5

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