Document:

Exhibit 10.3

 

 

TENET
HEALTHCARE CORPORATION

 

TERMS AND
CONDITIONS OF STOCK AWARDS GRANTED [DATE]

 

The
Compensation Committee (the “Committee”) of the Board of Directors of Tenet
Healthcare Corporation (the “Company”) is authorized under the Company’s 2001
Stock Incentive Plan, as amended (the “Plan”) to make awards of Non-qualified
Options (“Options”) and Restricted Units (herein referred to collectively as “Stock
Awards”) and to determine the terms of those Stock Awards.

 

On
[Grant Date] (the “Grant Date”), the Committee granted you Options and
Restricted Units evidenced by your Compensation Overview.  The Compensation Overview specifies the
number of Options and Restricted Units which have been awarded to you.  The Options and Restricted Units were granted
by the Committee subject to the terms and conditions set forth below.  The Options and Restricted Units also are
subject to the terms and conditions of the Plan, which is incorporated herein
by this reference.  Each capitalized term
not otherwise defined herein shall have the meaning given to such term in the
Plan.

 

1.               Grant.  The Committee has granted you Options and
Restricted Units in consideration for services to be performed by you for the
Company or a Business Unit of the Company.

 

2.               Exercise
Price and Expiration of Options.  The exercise price of Options is $       .  Options expire on [Expiration Date] (the “Expiration
Date”), subject to Section 16 of the Plan which governs the treatment of
Stock Awards if you cease to be an Employee. 
Pursuant to Section 14(d)(ii)(F) of the Plan, which governs
the treatment of Stock Awards following a Change in Control, in the event of a
termination of your employment by the Company without cause following a Change
in Control, and notwithstanding Section 16 of the Plan, Options
exercisable at the time of such termination will remain exercisable until the
earlier to occur of (a) the date that is three years from the date of such
termination, or (b) the Expiration Date.

 

3.               Vesting.  Subject to your meeting all of the terms and
conditions set forth in the Plan, including without limitation Section 16
which governs the treatment of Stock Awards if you cease to be an Employee, the
Stock Awards shall vest as follows: (a) one-third of the Stock Awards
shall vest on the first anniversary of the Grant Date, (b) one-third of
the Stock Awards shall vest on the second anniversary of the Grant Date, and (c) one-third
of the Stock Awards shall vest on the third anniversary of the Grant Date.

 

4.               Tax
Withholding.  Upon the exercise of Options or the vesting
of Restricted Units, you will recognize ordinary income.  The Company is required to withhold payroll
taxes due with respect to that ordinary income. 
Pursuant to the Plan, at its option the Committee either may (1) have
the Company withhold shares of Common Stock having a Fair Market Value equal to
the amount of the minimum tax withholding, or (2) require you to pay to
the Company the amount of the tax withholding.

 

5.               Rights
as Shareholder.  You shall not have any rights of a shareholder
prior to the exercise of Options or vesting of Restricted Units, at which time
you will have all of the rights of a shareholder with respect to the shares of
Common Stock received upon the exercise of those Options or vesting of those
Restricted Units, including the right to vote the shares and receive all
dividends and other distributions paid or made with respect thereto.

 

6.               Transferability.  The Options and Restricted Units may not be
transferred, assigned or made subject to any encumbrance, pledge or charge.

 

7.               Effect
on Other Employee Benefit Plans.  The value of the Options or Restricted Units
evidenced by this Certificate shall not be included as compensation, earnings,
salaries, or other similar terms used when calculating your benefits under any
employee benefit plan sponsored by the Company or a Business Unit, except as
such plan otherwise expressly provides.

 

8.               No
Employment Rights.  Nothing in this Agreement will confer upon
you any right to continue in the employ or service of the Company or any
Business Unit or affect the right of the Company or a Business Unit to
terminate your employment at any time with or without cause.

 

9.               Amendment.  By written notice to you, the Committee
reserves the right to change the provisions of any Options or Restricted Units
that have not yet vested in any way the Committee may deem necessary or
advisable to carry out the purpose of the grant of the Options or Restricted
Units as a result of any change in applicable laws or regulations or any future
law, regulation, ruling or judicial decisions.

 

10.         Severability.  If any term or provision of this Grant is
declared by any court or government authority to be unlawful or invalid, such
unlawfulness or invalidity shall not invalidate any term or provision of this
Grant not declared to be unlawful or invalid. 
Any term or provision of this Grant so declared to be unlawful or
invalid shall, if possible, be construed in a manner that will give effect to
such term or provision to the fullest extent possible while remaining lawful
and valid.

 

11.         Construction.  A copy of the Plan has been made available to
you and additional copies of the Plan are available upon request to the Company’s
Corporate Secretary at the Company’s principal executive office during normal
business hours.  To the extent that any
term or provision of this Grant violates or is inconsistent with an express
term or provision of the Plan, the Plan term or provision shall govern and any
inconsistent term or provision in this Grant shall be of no force or effect.

 

12.         Binding
Effect and Benefit.  This Grant shall be binding upon and, subject
to the terms and conditions hereof, inure to the benefit of the Company, its
successors and assigns, and the recipient and his or her successors and
assigns.

 

13.         Entire
Understanding.  This Grant embodies the entire understanding
and agreement of the Company and you in relation to the subject matter hereof,
and no promise, condition, representation or warranty, expressed or implied,
not herein stated, shall bind the Company or you.

 

14.         Governing
Law. 
This Grant shall be governed by, and construed in accordance with, the
laws of the State of Delaware.Exhibit 10.1

 

RENTECH, INC.

2001 STOCK OPTION PLAN

 

ARTICLE I

ESTABLISHMENT AND PURPOSE

 

1.1                                 Establishment.
Rentech, Inc., a Colorado corporation (“Company”), hereby establishes a stock
option plan for key employees, directors, and consultants providing material
services to the Company, as described herein, which shall be known as the “2001
Stock Option Plan” (the “Plan”). It is intended that certain of the options
issued to employees pursuant to the Plan may constitute incentive stock options
within the meaning of Section 422A of the Internal Revenue Code and that other
options issued pursuant to the Plan shall constitute nonstatutory options. The
Board of Directors shall determine which options are to be incentive stock
options and which are to be nonstatutory options and shall enter into option
agreements with recipients accordingly.

 

1.2                                 Purpose.
The purpose of this Plan is to enhance shareholder investment by attracting,
retaining and motivating key employees, directors and consultants of the
Company, and to encourage stock ownership by such persons by providing them
with a means to acquire a proprietary interest in the Company’s success, and to
align the interests of management with those of shareholders.

 

ARTICLE II

DEFINITIONS

 

2.1                                 Definitions.
Whenever used herein, the following terms shall have the respective meanings
set forth below, unless the context clearly requires otherwise, and when said
meaning is intended, the term shall be capitalized.

 

(a)                                  “Board” means
the Board of Directors of the Company.

 

(b)                                 “Code” means
the Internal Revenue Code of 1986, as amended.

 

(c)                                  “Committee”
shall mean the Committee provided by Article IV hereof, which may be created at
the discretion of the Board.

 

(d)                                 “Company” means
Rentech, Inc., a Colorado corporation.

 

(e)                                  “Consultant”
means any person or entity, including a Parent Corporation or a Subsidiary
Corporation, that provides services (other than as an Employee) to the Company,
a Parent Corporation or a Subsidiary Corporation, and shall include a Non-Employee
Officer or Non-Employee Director, as defined subsequently.

 

 

(f)                                    “Date of
Exercise” means the date the Company receives notice, by an Optionee, of
the exercise of an Option pursuant to Section 8.1 of this Plan. Such notice
shall indicate the number of shares of Stock the Optionee intends to exercise.

 

(g)                                 “Employee”
means any person, including an officer or director of the Company or a
Subsidiary Corporation, who is employed by the Company or a Subsidiary
Corporation.

 

(h)                                 “Fair Market Value”
means the fair market value of Stock upon which an option is granted under this
Plan, determined as the average of the closing bid and asked prices of the
Stock, as reported by NASDAQ.

 

(i)                                     “Incentive
Stock Option” means an Option granted under this Plan which is intended to
qualify as an “incentive stock option” within the meaning of Section 422A of
the Code.

 

(j)                                     “Non-Employee
Director” means a member of the Board who is not an employee of the Company
at the time an Option is granted hereunder.

 

 (k)                               “Non-Employee
Officer” means an officer of the Company who is not an employee of the
Company at the time an Option is granted hereunder.

 

(l)                                     “Nonstatutory
Option” means an Option granted under this Plan which is not intended to
qualify as an incentive stock option within the meaning of Section 422A of the
Code. Nonstatutory Options may be granted at such times and subject to such
restrictions as the Board shall determine without conforming to the statutory
rules of Section 422A of the Code applicable to incentive stock options.

 

(m)                               “Option” means
the right, granted under this Plan, to purchase Stock of the Company at the
option price for a specified period of time. For purposes of this Plan, an
Option may be either an Incentive Stock Option or a Nonstatutory Option.

 

(n)                                 “Optionee”
means an Employee or Consultant holding an Option under the Plan.

 

(o)                                 “Parent Corporation”
shall have the meaning set forth in Section 425(e) of the Code with the Company
being treated as the employer corporation for purposes of this definition.

 

(p)                                 “Subsidiary
Corporation” shall have the meaning set forth in Section 425(f) of the Code
with the Company being treated as the employer corporation for purposes of this
definition.

 

(q)                                 “Significant
Shareholder” means an individual who, within the meaning of Section
422A(b)(6) of the Code, owns stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Company or of any
Parent 

 

 

Corporation or Subsidiary Corporation of the Company. In determining
whether an individual is a Significant Shareholder, an individual shall be
treated as owning stock owned by certain relatives of the individual and
certain stock owned by corporations in which the individual is a shareholder,
partnerships in which the individual is a partner, and estates or trusts of
which the individual is a beneficiary, all as provided in Section 425(d) of the
Code.

 

(r)                                    “Stock”
means the $.01 par value common stock of the Company.

 

2.2                                 Gender
and Number. Except when otherwise indicated by the context, any masculine
terminology when used in this Plan also shall include the feminine gender, and
the definition of any term herein in the singular also shall include the
plural.

 

ARTICLE III

ELIGIBILITY AND PARTICIPATION

 

3.1                                 Eligibility
and Participation. All Employees are eligible to participate in this Plan
and receive either or both Incentive Stock Options and Nonstatutory Options
under the Plan. All Consultants are eligible to participate in this Plan and
receive Nonstatutory Options hereunder. Optionees in the Plan shall be selected
by the Board, in its sole discretion, from among those Employees and
Consultants who, in the opinion of the Board, are in a position to contribute
materially to the Company’s continued growth and development and to its long-term
financial success.

 

ARTICLE IV

ADMINISTRATION

 

4.1                                 Administration.
The Board shall be responsible for administering the Plan.

 

(a) 
The Board is authorized to interpret the Plan; to prescribe, amend, and
rescind rules and regulations relating to the Plan; to provide for conditions
and assurances deemed necessary or advisable to protect the interests of the
Company; and to make all other determinations necessary or advisable for the
administration of the Plan. Determinations, interpretations, or other actions
made or taken by the Board, pursuant to the provisions of this Plan, shall be
final and binding and conclusive for all purposes and upon all persons.

 

(b)  At
the discretion of the Board this Plan may be administered by a Committee which
shall be an executive committee of the Board, consisting of not less than two
members of the Board. The members of such Committee may be directors who are
eligible to receive Options under this Plan, but Options may be granted to such
persons only by action of the full Board and not by action of the Committee. If
the Company determines that grant of Options by the full Board to members of
the Committee may not exempt the shares of Committee members from the
provisions of Rule 16b-3 under the Securities Exchange Act of 1934, this Plan,
without further action, hereby authorizes and grants options to purchase 10,000
shares each to each member of the Committee for each 

 

 

year of continuous service on the Committee, except that, (i) any
Committee member, for any year, may elect not to accept an option to purchase
10,000 shares or may elect to accept options for the purchase of less than
10,000 shares; and (ii) if any Committee member elects, for any year, to
receive no option or an option to purchase less than 10,000 shares for that
year, that option shall be deemed permanently waived, shall not cumulate, and
shall not be available in any future year. Such options shall be exercisable at
the fair market value of the Stock on the date of grant and shall have the same
term and may be exercised in installments as provided in Section 7.3 of this
Plan. Such Committee shall have full power and authority, subject to the
limitations of the Plan and any limitations imposed by the Board, to construe,
interpret and administer this Plan and to make determinations which shall be
final, conclusive and binding upon all persons, including, without limitation,
the Company, the shareholders, the directors and any persons having any
interests in any Options which may be granted under this Plan, and, by
resolution or resolutions providing for the creation and issuance of any such
Option, to fix the terms upon which, the time or times at or within which, and
the price or prices at which any such shares may be purchased from the Company
upon the exercise of such Option. Such terms, time or times and price or prices
shall, in every case, be consistent with the provisions of this Plan, and shall
be set forth or incorporated by reference in the instrument or instruments
evidencing such Option.

 

(c)  If
the Committee has been appointed, the Board may from time to time remove
members from, or add members to, the Committee. The Board may terminate the
Committee at any time. Vacancies on the Committee, howsoever caused, shall be
filled by the Board. The Committee shall select one of its members as Chairman,
and shall hold meetings at such times and places as the Chairman may determine.
A majority of the Committee at which a quorum is present, or acts reduced to or
approved in writing by all of the members of the Committee, shall be the valid
acts of the Committee. A quorum shall consist of a majority of the members of
the Committee.

 

(d) 
Where the Committee has been created by the Board, references in this
Plan to actions to be taken by the Board shall be deemed to refer to the
Committee as well, except where limited by this Plan or by the Board.

 

(e) 
The Board shall have all of the enumerated powers of the Committee, but
shall not be limited to such powers. No member of the Board or the Committee
shall be liable for any action or determination made in good faith with respect
to the Plan or any Option granted under it.

 

4.2                                 Special
Provisions for Grants to Officers or Directors. Rule 16b-3 under the
Securities and Exchange Act of 1934 (the “Act”) provides that the grant of a
stock option to a director or officer of a company subject to the Act will be
exempt from the provisions of Section 16(b) of the Act if the conditions set
forth in said Rule are satisfied. Unless otherwise specified by the Board,
grants of Options hereunder to individuals who are officers or directors of the
Company shall be made in a manner that satisfies the conditions of said Rule.

 

 

ARTICLE V

STOCK SUBJECT TO THE PLAN

 

5.1                                 Number.
The total number of shares of Stock hereby made available and reserved for
issuance under the Plan shall be 500,000 shares for Incentive Stock Options and
Nonstatutory Stock Options. The aggregate number of shares of Stock available
under this Plan shall be subject to adjustment as provided in Section 5.3. The
total number of shares of Stock may be authorized but unissued shares of Stock,
or Shares acquired by purchase as directed by the Board from time to time in
its discretion, to be used for issuance upon exercise of Options granted
hereunder.

 

5.2                                 Unused
Stock. If an Option shall expire or terminate for any reason without having
been exercised in full, the unpurchased shares of Stock subject thereto shall
(unless the Plan shall have terminated) become available for other Options
under the Plan.

 

5.3                                 Adjustment
in Capitalization. In the event of any change in the outstanding shares of
Stock by reason of a stock dividend or split, recapitalization,
reclassification, or other similar corporate change, the aggregate number of
shares of Stock remaining subject to the Plan and to Options previously granted
shall be appropriately adjusted by the Board, whose determination shall be
conclusive; provided however, that fractional shares shall be rounded to the
nearest whole share. In any such case, the number and kind of shares that are
subject to any Option (including any Option outstanding after termination of
employment) and the Option price per share shall be proportionately and
appropriately adjusted without any change in the aggregate Option price to be
paid therefor upon exercise of the Option.

 

ARTICLE VI

DURATION OF THE PLAN

 

6.1                                 Duration
of the Plan. Subject to approval of shareholders, the Plan shall be in
effect for ten years from the date of its adoption by the Board. Any Options
outstanding at the end of said period shall remain in effect in accordance with
their terms. The Plan shall terminate before the end of said period if all
Stock subject to it has been purchased pursuant to the exercise of Options
granted under the Plan.

 

ARTICLE VII

TERMS OF STOCK OPTIONS

 

7.1                                 Grant
of Options. Subject to Section 5.1, Options may be granted to Employees or
Consultants at any time and from time to time as determined by the Board;
provided, however, that Consultants may receive only Nonstatutory Options and
may not receive Incentive Stock Options. The Board shall have complete
discretion in determining the terms and conditions and number of Options
granted to each Optionee. In making such determinations, the Board may take
into account the nature of services rendered by such Employees or Consultants,
their present and potential contributions to the Company and its Subsidiary
Corporations, and such other factors as the Board in its discretion shall deem
relevant. The Board also shall determine whether an Option is to be an
Incentive Stock Option or a Nonstatutory Option.

 

 

(a)  In
the case of Incentive Stock Options, the total Fair Market Value (determined at
the date of grant) of shares of Stock with respect to which incentive stock
options granted after December 31, 1986 are exercisable for the first time by
the Optionee during any calendar year under all plans of the Company under
which incentive stock options may be granted (and all such plans of any Parent
Corporations and any Subsidiary Corporations of the Company) shall not exceed
$100,000. Hereinafter, this requirement is sometimes referred to as the
“$100,000 Limitation”.

 

(b) 
Nothing in this Article VII of the Plan shall be deemed to prevent the
grant of Options permitting exercise in excess of the maximums established by
the preceding paragraph where such excess amount is treated as a Nonstatutory
Option.

 

(c) 
The Board is expressly given the authority to issue amended or
replacement Options with respect to shares of Stock subject to an Option
previously granted hereunder. An amended Option amends the terms of an Option
previously granted and thereby supersedes the previous Option. A replacement
Option is similar to a new Option granted hereunder except that it provides
that it shall be forfeited to the extent that a previously granted Option is
exercised, or except that its issuance is conditioned upon the termination of a
previously granted Option.

 

(d) 
The date of grant of an Option is either the date it is granted or such
other date as may be designed at the time of the award of the Option.

 

7.2                                 No
Tandem Options. Where an Option granted under this Plan is intended to be
an Incentive Stock Option, the Option shall not contain terms pursuant to which
the exercise of the Option would affect the Optionee’s right to exercise
another Option, or vice versa, such that the Option intended to be an Incentive
Stock Option would be deemed a tandem stock option within the meaning of the
regulations under Section 422A of the Code.

 

7.3                                 Option
Agreement: Terms and Conditions to Apply Unless  Otherwise Specified.
As determined by the Board on the date of grant, each Option shall be evidenced
by an Option agreement (the “Option Agreement”) that includes the
non-transferability provisions required by Section 10.2 hereof and specifies:
whether the Option is an Incentive Stock Option or a Nonstatutory option; the
Option price; the duration of the Option; the number of shares of Stock to
which the Option applies; any vesting or exercisability restrictions which the
Board may impose; in the case of an Incentive Stock Option, a provision
implementing the $100,000 Limitation; and any other terms or conditions which
the Board may impose. All such terms and conditions shall be determined by the
Board at the time of grant of the Option.

 

(a)  If
not otherwise specified by the Board, the following terms and conditions shall
apply to Options granted under the Plan:

 

(i)  Term.
The duration of the Option shall be five years from the date of grant.

 

 

(ii)  Exercise
of Option. Unless an Option is terminated as provided hereunder, an
Optionee may exercise his Option for up to, but not in excess of, the amounts
of shares subject to the Option specified hereafter in this section, based on
the Optionee’s number of years of continuous service with the Company or a
Subsidiary Corporation from the date on which the Option is granted. In the
case of an Optionee who is an Employee, continuous service shall mean
continuous employment; in the case of an Optionee who is a Consultant,
continuous service shall mean the continuous provision of consulting services. In
applying said limitations, the amount of shares, if any, previously purchased
by the Optionee under the Option shall be counted in determining the amount of
shares the Optionee can purchase at any time. The Optionee may exercise his
Option in the following amounts:

 

(A) 
After one year of such continuous services, up to but not in excess of
twenty percent of the shares originally subject to the Option;

 

(B) 
After two years of such continuous services, up to but not in excess of
forty percent of the shares originally subject to the Option;

 

(C) 
After three years of such continuous services, up to but not in excess
of sixty percent of the shares originally subject to the Option;

 

(D) 
After four years of such continuous services, up to but not in excess of
eighty percent of the shares originally subject to the Option; and

 

(E)  At
the expiration of the fifth year of such continuous services, the Option may be
exercised, in whole or in part, and at any time and from time to time within
its term but it shall not be exercisable after the expiration of five years
from the date on which it was granted.

 

(b) 
The Board shall be free to specify terms and conditions other than those
set forth above, in its discretion.

 

(c) 
All Option Agreements shall incorporate the provisions of this Plan by
reference, with certain provisions to apply depending upon whether the Option
Agreement applies to an Incentive Stock Option or to a Nonstatutory Option.

 

7.4                                 Option
Price. No Incentive Stock Option granted pursuant to this Plan shall have
an Option price that is less than the Fair Market Value of Stock on the date
the Option is granted. Incentive Stock Options granted to Significant
Shareholders shall have an Option price of not less than 110 percent of the
Fair Market Value of Stock on the date of grant. The Option price for
Nonstatutory Options shall be established by the Board and shall not be subject
to the restrictions applicable to Incentive Stock Options.

 

7.5                                 Term
of Options. Each Option shall expire at such time as the Board shall
determine when it is granted, provided however that under no circumstances
shall a Nonstatutory 

 

 

Option be exercisable later than the tenth anniversary date of its
grant, nor by its terms, shall an Incentive Stock Option granted to a
Significant Shareholder be exercisable later than the fifth year from the
anniversary date of its grant.

 

7.6                                 Exercise
of Options. Options granted under the Plan shall be exercisable at such
times and be subject to such restrictions and conditions as the Board shall in
each instance approve, which need not be the same for all Optionees.

 

7.7                                 Payment.
Payment for all shares of Stock shall be made at the time that an Option, or
any part thereof, is exercised, and no shares shall be issued until full
payment has been made. Payment shall be made (i) in cash, or (ii) if acceptable
to the Board, in Stock or in some other form; provided, however, in the case of
an Incentive Stock Option, that said other form of payment does not prevent the
Option from qualifying for treatment as an incentive stock option within the
meaning of the Code.

 

ARTICLE VIII

WRITTEN NOTICE, ISSUANCE OF STOCK

CERTIFICATES. SHAREHOLDER PRIVILEGES

 

8.1                                 Written
Notice. An Optionee wishing to exercise an Option shall give written notice
to the Company, in the form and manner prescribed by the Board. Full payment
for the shares exercised pursuant to the Option must accompany the written
notice.

 

8.2                                 Issuance
of Stock Certificates. As soon as practicable after the receipt of written
notice and payment, the Company shall deliver to the Optionee or to a permitted
nominee of the Optionee a certificate or certificates for the requisite number
of shares of stock.

 

8.3                                 Privileges
of a Shareholder. An Optionee or any other person entitled to exercise an
Option under this Plan shall not have stockholder privileges with respect to
any Stock covered by the Option until the date of issuance of a stock
certificate for such stock.

 

ARTICLE IX

TERMINATION OF EMPLOYMENT OR SERVICES

 

9.1                                 Death.
If an Optionee’s employment in the case of an Employee, or provision of
services as a Consultant, in the case of a Consultant, terminates by reason of
death, the Option may thereafter be exercised at any time prior to the expiration
date of the Option or within 12 months after the date of such death, whichever
period is the shorter, by the person or persons entitled to do so under the
Optionee’s will or, if the Optionee shall fail to make a testamentary
disposition of an Option or shall die intestate, the Optionee’s legal
representative or representatives. The Option shall be exercisable only to the
extent that such Option was exercisable as of the date of death.

 

9.2                                 Termination
other than for Cause or Due to Death. In the event of an Optionee’s
termination of employment, in the case of an Employee, or termination of the
provision of services as a Consultant, in the case of a Consultant, other than
by reason of death, the Optionee 

 

 

may exercise such portion of
his Option as was exercisable by him at the date of such termination (the
“Termination Date”) at any time within three months of the Termination Date;
provided, however, that where the Optionee is an Employee, and is terminated
due to disability within the meaning of Code 
422A, he may exercise such portion of his Option as was exercisable by
him on his Termination Date within one year of his Termination Date. In any
event, the Option cannot be exercised after the expiration of the term of the
Option. Options not exercised within the applicable period specified above
shall terminate.

 

(a)  In
the case of an Employee, a change of duties or position within the Company or
an assignment of employment in a Subsidiary Corporation or Parent Corporation
of the Company, if any, or from such a Corporation to the Company, shall not be
considered a termination of employment for purposes of this Plan.

 

(b) 
The Option Agreements may contain such provisions as the Board shall
approve with reference to the effect of approved leaves of absence upon
termination of employment.

 

9.3                                 Termination
for Cause. In the event of an Optionee’s termination of employment, in the
case of an Employee, or termination of the provision of services as a
Consultant, in the case of a Consultant, which termination is by the Company or
a Subsidiary Corporation for cause, any Option or Options held by him under the
Plan, to the extent not exercised before such termination, shall terminate upon
notice of termination for cause.

 

ARTICLE X

RIGHTS OF OPTIONEES

 

10.1                           Service.
Nothing in this Plan shall interfere with or limit in any way the right of the
Company or a Subsidiary Corporation to terminate any Employee’s employment, or
any Consultant’s services, at any time, nor confer upon any Employee any right
to continue in the employ of the Company or a Subsidiary Corporation, or upon
any Consultant any right to continue to provide services to the Company or a
Subsidiary Corporation.

 

10.2                           Non-transferability.
All Options granted under this Plan shall be non-transferable by the Optionee,
other than by will or the laws of descent and distribution, and shall be
exercisable during the Optionee’s lifetime only by the Optionee. No Option may
be assigned, pledged, hypothecated or otherwise alienated or encumbered
(whether by operation of law or otherwise), and any attempt to do so shall be
null and void.

 

ARTICLE XI

OPTIONEE-EMPLOYEE’S TRANSFER OR LEAVE OF
ABSENCE

 

11.1                           Optionee-Employee’s
Transfer or Leave of Absence. For purposes of this Plan:

 

(a)  A
transfer of an Optionee who is an Employee from the Company to a Subsidiary
Corporation or Parent Corporation, or from one such Corporation to another, or

 

 

(b)  A
leave of absence for such an Optionee (i) which is duly authorized in writing
by the Company or a Subsidiary Corporation, and (ii) if the Optionee holds an
Incentive Stock Option, which qualifies under the applicable regulations under
the Code which apply in the case of incentive stock options, shall not be
deemed a termination of employment. However, under no circumstances may an
Optionee exercise an Option during any leave of absence, unless authorized by
the Board.

 

ARTICLE XII

AMENDMENT, MODIFICATION, AND TERMINATION OF
THE PLAN

 

12.1                           Amendment,
Modification and d Termination of the Plan.

 

(a) 
The Board may at any time terminate, and from time to time may amend or
modify the Plan; provided, however, that no such action of the Board, without
approval of the shareholders, may:

 

(i) 
increase the total amount of Stock which may be purchased through
Options granted under the Plan, except as provided in Article V;

 

(ii) 
change the class of Employees or Consultants eligible to receive
Options; or

 

(iii) 
extend the maximum option period provided in this Plan.

 

 (b)  No
amendment, modification, or termination of the Plan shall in any manner
adversely affect any outstanding Option under the Plan without the consent of
the Optionee holding the Option.

 

ARTICLE XIII

ACQUISITION, MERGER OR LIQUIDATION

 

13.1                           Acquisition.

 

(a)  In
the event that an Acquisition occurs with respect to the Company, the Company
shall have the option, but not the obligation, to cancel Options outstanding as
of the effective date of Acquisition, whether or not such Options are then
exercisable, in return for payment to the Optionees of an amount equal to a
reasonable estimate of an amount (hereinafter the “Spread”) equal to the
difference between the net amount per share payable in the Acquisition or as a
result of the Acquisition, less the exercise price of the Option. In estimating
the Spread, appropriate adjustments to give effect to the existence of the
Options shall be made, such as deeming the Options to have been exercised, with
the Company receiving the exercise price payable thereunder, and treating the
stock receivable upon exercise of the Options as being outstanding in
determining the net amount per share.

 

 

(b) 
For purposes of this section, an “Acquisition” means any transaction in
which substantially all of the Company’s assets are acquired or in which a
controlling amount of the Company’s outstanding shares of Stock are acquired,
in each case by a single person or entity or an affiliated group of persons and
entities. For purposes of this section, a controlling amount shall mean more
than 50% of the issued and outstanding shares of Stock of the Company. The
Company shall have such an option regardless of how the Acquisition is
effectuated, whether by direct purchase, through a merger or similar corporate
transaction, or otherwise. In cases where the acquisition consists of the
acquisition of assets of the Company, the net amount per share shall be
calculated on the basis of the net amount receivable with respect to shares
upon a distribution and liquidation by the Company after giving effect to
expenses and charges, including but not limited to taxes, payable by the
Company before the liquidation can be completed.

 

(c) 
Where the Company does not exercise its option under this Section 13.1
the remaining provisions of this Article XIII shall apply, to the extent
applicable.

 

13.2                           Merger
or Consolidation. Subject to any required action by the shareholders, if
the Company shall be the surviving corporation in any merger or consolidation,
any option granted under this Plan shall pertain to and apply to the securities
to which a holder of the number of shares of Stock subject to the Option would
have been entitled in such merger or consolidation.

 

 13.3                        Other
Transactions. A dissolution or a liquidation of the Company or a merger and
consolidation in which the Company is not the surviving corporation shall cause
every Option outstanding hereunder to terminate as of the effective date of
such dissolution, liquidation, merger or consolidation. However, the Optionee
either (i) shall be offered a firm commitment whereby the resulting or
surviving corporation in a merger or consolidation will tender to the Optionee
an option (the “Substitute Option”) to purchase its shares on terms and
conditions both as to number of shares and otherwise, that will substantially
preserve to the Optionee the rights and benefits of the Option outstanding
hereunder granted by the Company, or (ii) shall have the right immediately
prior to such dissolution, liquidation, merger, or consolidation to exercise
any unexercised Options whether or not then exercisable, subject to the provisions
of this Plan. The Board shall have absolute and uncontrolled discretion to
determine whether the Optionee has been offered a firm commitment and whether
the tendered Substitute Option will substantially preserve to the Optionee the
rights and benefits of the Option outstanding hereunder. In any event, any
Substitute Option for an Incentive Stock Option shall comply with the
requirements of Code Section 425(a).

 

 

ARTICLE XIV

SECURITIES REGISTRATION

 

14.1                           Securities
Registration. In the event that the Company shall deem it necessary or
desirable to register under the Securities Act of 1933, as amended, or any
other applicable statute, any Options or any Stock with respect to which an
Option may be or shall have been granted or exercised, or to qualify any such
Options or Stock under the Securities Act of 1933, as amended, or any other
statute, then the Optionee shall cooperate with the Company and take such
action as is necessary to permit registration or qualification of such Options
or Stock.

 

14.2                           Representations.
Unless the Company has determined that the following representation is
unnecessary, each person exercising an Option under the Plan may be required by
the Company, as a condition to the issuance of the shares pursuant to exercise
of the Option, to make a representation in writing (i) that he is acquiring
such shares for his own account for investment and not with a view to, or for
sale in connection with, the distribution of any part thereof, (ii) that before
any transfer in connection with the resale of such shares, he will obtain the
written opinion of counsel for the Company, or other counsel acceptable to the
Company, that such shares may be transferred. The Company may also require that
the certificates representing such shares contain legends reflecting the
foregoing.

 

ARTICLE XV

TAX WITHHOLDING

 

15.1                           Tax
Withholding. Whenever shares of Stock are to be issued in satisfaction of
Options exercised under this Plan, the Company shall have the power to require
the recipient of the Stock to remit to the Company an amount sufficient to
satisfy any applicable federal, state, and local withholding tax requirements.

 

ARTICLE XVI

INDEMNIFICATION

 

16.1                           Indemnification.
To the extent permitted by law, each person who is or shall have been a member of
the Board shall be indemnified and held harmless by the Company against and
from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him in connection with or resulting from any claim,
action, suit, or proceeding to which he may be a party or in which he may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him in settlement thereof, with
the Company’s approval, or paid by him in satisfaction of judgment in any such
action, suit, or proceeding against him, provided he shall give the Company an
opportunity, at its own expense, to handle and defend the same before he
undertakes to handle and defend it on his own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company’s articles of
incorporation or bylaws, as a matter of law, or otherwise, or any power that
the Company or any Subsidiary Corporation may have to indemnify them or hold
them harmless.

 

 

ARTICLE XVII

REQUIREMENTS OF LAW

 

17.1                           Requirements
of Law. The granting of Options and the issuance of shares of Stock upon
the exercise of an Option shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

 

17.2                           Governing
Law. The Plan, and all agreements hereunder, shall be construed in
accordance with and governed by the laws of the state of Colorado.

 

ARTICLE XVIII

EFFECTIVE DATE OF PLAN

 

18.1                           Effective
Date. The Plan shall be effective on January 16, 2001.

 

ARTICLE XIX

COMPLIANCE WITH CODE

 

19.1                           Compliance
with Code. Incentive Stock Options granted hereunder are intended to
qualify as “incentive stock options” under Code 422A. If any provision of this
Plan is susceptible to more than one interpretation, such interpretation shall
be given thereto as is consistent with Incentive Stock Options granted under
this Plan being treated as incentive stock options under the Code.

 

ARTICLE XX

NO OBLIGATION TO EXERCISE OPTION

 

20.1                           No
Obligation to Exercise. The granting of an Option shall impose no
obligation upon the holder thereof to exercise such Option.

 

THIS 2001 STOCK OPTION PLAN was adopted by the Board of Directors of
Rentech, Inc. on January 16, 2001 to be effective as of January 16, 2001. It is
to be submitted for approval by shareholders at the annual meeting of
shareholders to be held on May 8, 2001.

 

	
   

  	
   

  	
  RENTECH, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DENNIS L. YAKOBSON

  
	
   

  	
   

  	
  Dennis L. Yakobson, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]