Document:

Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”), dated as of ____________, is made by and between Planet Group, Inc., a Delaware corporation (the “Company”), and ____________, a director and/or officer of the Company (the “Indemnitee”).

 

RECITALS

 

A.                                   The Company is aware that competent and experienced persons are increasingly reluctant to serve as directors or officers of corporations unless they are protected by comprehensive liability insurance and/or indemnification, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and because the exposure frequently bears no reasonable relationship to the compensation of such directors and officers;

 

B.                                     Based on their experience as business managers, the Board of Directors of the Company (the “Board”) has concluded that, to retain and attract talented and experienced individuals to serve as officers and directors of the Company, and to encourage such individuals to take the business risks necessary for the success of the Company, it is necessary for the Company contractually to indemnify officers and directors and to assume for itself maximum liability for expenses and damages in connection with claims against such officers and directors in connection with their service to the Company;

 

C.                                     Section 145 of the Delaware General Corporation Law, under which the Company is organized (the “Law”), empowers the Company to indemnify by agreement its officers, directors, employees and agents, and persons who serve, at the request of the Company, as directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification provided by the Law is not exclusive; and

 

D.                                    The Company desires and has requested the Indemnitee to serve or continue to serve as a director or officer of the Company free from undue concern for claims for damages arising out of or related to such services to the Company.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.                                      Definitions.

 

1.1                               Agent.  For the purposes of this Agreement, “agent” of the Company means any person who is or was a director or officer of the Company or a subsidiary of the Company; or is or was serving at the request of for the convenience of, or to represent the interest of the Company or a subsidiary of the Company as a director or officer of another foreign or domestic corporation, partnership, joint venture, trust or other enterprise or an affiliate of the Company; or was a director or officer of a foreign or domestic corporation which was a predecessor corporation of the Company, or was a director or officer of another enterprise or affiliate of the Company at the request of, for the convenience of, or to represent the interests of such predecessor corporation.  The term “enterprise” includes any employee benefit plan of the Company, its subsidiaries, affiliates and predecessor corporations.

 

 

1.2                               Expenses.  For purposes of this Agreement, “expenses” includes all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related disbursements and other out-of-pocket costs) actually and reasonably incurred by the Indemnitee in connection with the investigation, defense or appeal of a proceeding or establishing or enforcing a right to indemnification or advancement of expenses under this Agreement, the Law or otherwise.

 

1.3                               Proceeding.  For the purposes of this Agreement, “proceeding” means any threatened, pending or completed action, suit or other proceeding, whether civil, criminal, administrative, investigative or any other type whatsoever.

 

1.4                               Subsidiary.  For purposes of this Agreement, “subsidiary” means any corporation of which more than 50% of the outstanding voting securities is owned directly or indirectly by the Company, by the Company and one or more of its subsidiaries or by one or more of the Company’s subsidiaries.

 

2.                                      Agreement to Serve.  The Indemnitee agrees to serve and/or continue to serve as an agent of the Company, at the will of the Company (or under separate agreement, if such agreement exists), in the capacity the Indemnitee currently serves as an agent of the Company, faithfully and to the best of his ability, so long as he or she is duly appointed or elected and qualified in accordance with the applicable provisions of the charter documents of the Company or any subsidiary of the Company; provided, however, that the Indemnitee may at any time and for any reason resign from such position (subject to any contractual obligation that the Indemnitee may have assumed apart from this Agreement), and the Company or any subsidiary shall have no obligation under this Agreement to continue to indemnify the Indemnitee for any actions taken or not taken by him or her after the date of resignation or termination of such position.

 

3.                                      Directors’ and Officers’ Insurance.  The Company shall, to the extent that the Board determines it to be economically reasonable, maintain a policy of directors’ and officers’ liability insurance (“D&O Insurance”), on such terms and conditions as may be approved by the Board.

 

4.                                      Mandatory Indemnification.  Subject to Section 9 below, the Company shall indemnify the Indemnitee:

 

4.1                               Third Party Actions.  If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding (other than an action by or in the right of the Company) by reason of the fact that he is or was an agent of the Company, or by reason of anything done or not done by him in any such capacity, against any and all expenses and liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) actually and reasonably incurred by him in connection with the investigation, defense, settlement or appeal of such proceeding if he acted in good faith and in a manner be reasonably believed to be in, or not opposed to, the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful; and

 

 

4.2                               Derivative Actions.  If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding by or in the right of the Company to procure a judgment in its favor by reason of the fact that he is or was an agent of the Company, or by reason of anything done or not done by him in any such capacity, against any amounts paid in settlement of any such proceeding and all expenses actually and reasonably incurred by him in connection with the investigation, defense, settlement or appeal of such proceeding if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company; except that no indemnification under this subsection shall be made in respect of any claim, issue or matter as to which such person shall have been finally adjudged to be liable to the Company by a court of competent jurisdiction due to willful misconduct of a culpable nature in the performance of his duty to the Company, unless and only to the extent that the Court of Chancery or the court in which such proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such amounts which the Court of Chancery or such other court shall deem proper; and

 

4.3                               Exception for Amounts Covered by Insurance.  Notwithstanding the foregoing, the Company shall not be obligated to indemnify the Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) to the extent such have been paid directly to the Indemnitee by D&O Insurance.

 

5.                                      Partial Indemnification and Contribution.

 

5.1                               Partial Indemnification.  If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) incurred by him or her in the investigation, defense, settlement or appeal of a proceeding but is not entitled, however, to indemnification for all of the total amount thereof, then the Company shall nevertheless indemnify the Indemnitee for such total amount except as to the portion thereof to which the Indemnitee is not entitled to indemnification.

 

5.2                               Contribution.  If the Indemnitee is not entitled to the indemnification provided in Section 4 for any reason other than the statutory limitations set forth in the Law, then in respect of any threatened, pending or completed proceeding in which the Company is jointly liable with the Indemnitee (or would be if joined in such proceeding), the Company shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the Indemnitee on the other hand from the transaction from which such proceeding arose and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations.  The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such

 

 

expenses, judgments, fines or settlement amounts.  The Company agrees that it would not be just and equitable if contribution pursuant to this Section 5 were determined by pro rata allocation or any other method of allocation that does not take account of the foregoing equitable considerations.

 

6.                                      Mandatory Advancement of Expenses.

 

6.1                               Advancement.  Subject to Section 9 below and except as prohibited by law, the Company shall advance all expenses incurred by the Indemnitee in connection with the investigation, defense, settlement or appeal of any proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the fact that the Indemnitee is or was an agent of the Company or by reason of anything done or not done by him in any such capacity.  The Indemnitee hereby undertakes to promptly repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Company under the provisions of this Agreement, the Certificate of Incorporation or Bylaws of the Company, the Law or otherwise.  The advances to be made hereunder shall be paid by the Company to the Indemnitee within 30 days following delivery of a written request therefor by the Indemnitee to the Company.

 

6.2                               Exception.  Notwithstanding the foregoing provisions of this Section 6, the Company shall not be obligated to advance any expenses to the Indemnitee arising from a lawsuit filed directly by the Company against the Indemnitee if an absolute majority of the members of the Board reasonably determines in good faith, within 30 days of the Indemnitee’s request to be advanced expenses, that the facts known to them at the time such determination is made demonstrate clearly and convincingly that the Indemnitee acted in bad faith.  If such a determination is made, the Indemnitee may have such decision reviewed by another forum, in the manner set forth in Sections 8.3, 8.4 and 8.5 hereof, with all references therein to “indemnification” being deemed to refer to “advancement of expenses,” and the burden of proof shall be on the Company to demonstrate clearly and convincingly that, based on the facts known at the time, the Indemnitee acted in bad faith.  The Company may not avail itself of this Section 6.2 as to a given lawsuit if, at any time after the occurrence of the activities or omissions that are the primary focus of the lawsuit, the Company has undergone a change in control.  For this purpose, a change in control shall mean a given person or group of affiliated persons or groups increasing their beneficial ownership interest in the Company by at least twenty (20) percentage points without advance Board approval.

 

7.                                      Notice and Other Indemnification Procedures.

 

7.1                               Promptly after receipt by the Indemnitee of notice of the commencement of or the threat of commencement of any proceeding, the Indemnitee shall, if the Indemnitee believes that indemnification with respect thereto may be sought from the Company under this Agreement, notify the Company of the commencement or threat of commencement thereof.

 

7.2                               If, at the time of the receipt of a notice of the commencement of a proceeding pursuant to Section 7.1 hereof, the Company has D&O Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall

 

 

thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such D&O Insurance policies.

 

7.3                               In the event the Company shall be obligated to advance the expenses for any proceeding against the Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (which approval shall not be unreasonably withheld), upon the delivery to the Indemnitee of written notice of its election to do so.  After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by the Indemnitee with respect to the same proceeding, provided that: (a) the Indemnitee shall have the right to employ his or her own counsel in any such proceeding at the Indemnitee’s expense; (b) the Indemnitee shall have the right to employ his or her own counsel in connection with any such proceeding, at the expense of the Company, if such counsel serves in a review, observer, advice and counseling capacity and does not otherwise materially control or participate in the defense of such proceeding; and (c) if (i) the employment of counsel by the Indemnitee has been previously authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of any such defense or (iii) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of the Indemnitee’s counsel shall be at the expense of the Company.

 

8.                                      Determination of Right to Indemnification.

 

8.1                               To the extent the Indemnitee has been successful on the merits or otherwise in defense of any proceeding referred to in Section 4.1 or 4.2 of this Agreement or in the defense of any claim, issue or matter described therein, the Company shall indemnify the Indemnitee against expenses actually and reasonably incurred by him or her in connection with the investigation, defense or appeal of such proceeding, or such claim, issue or matter, as the case may be.

 

8.2                               In the event that Section 8.1 is inapplicable, or does not apply to the entire proceeding, the Company shall nonetheless indemnify the Indemnitee unless the Company shall prove by clear and convincing evidence to a forum listed in Section 8.3 below that the Indemnitee has not met the applicable standard of conduct required to entitle the Indemnitee to such indemnification.

 

8.3                               The Indemnitee shall be entitled to select the forum in which the validity of the Company’s claim under Section 8.2 hereof that the Indemnitee is not entitled to indemnification will be heard from among the following, except that the Indemnitee can select a forum consisting of the stockholders of the Company only with the approval of the Company:

 

(a)                                  A quorum of the Board consisting of directors who are not parties to the proceeding for which indemnification is being sought;

 

(b)                                 The stockholders of the Company;

 

 

(c)                                  Legal counsel mutually agreed upon by the Indemnitee and the Board, which counsel shall make such determination in a written opinion;

 

(d)                                 A panel of three arbitrators, one of whom is selected by the Company, another of whom is selected by the Indemnitee and the last of whom is selected by the first two arbitrators so selected; or

 

(e)                                  The Court of Chancery of Delaware.

 

8.4                               As soon as practicable, and in no event later than 30 days after the forum has been selected pursuant to Section 8.3 above, the Company shall, at its own expense, submit to the selected forum its claim that the Indemnitee is not entitled to indemnification, and the Company shall act in the utmost good faith to assure the Indemnitee a complete opportunity to defend against such claim.

 

8.5                               If the forum selected in accordance with Section 8.3 hereof is not a court, then after the final decision of such forum is rendered, the Company or the Indemnitee shall have the right to apply to the Court of Chancery of Delaware, for the purpose of appealing the decision of such forum, provided that such right is executed within 60 days after the final decision of such forum is rendered.  If the forum selected in accordance with Section 8.3 hereof is a court, then the rights of the Company or the Indemnitee to appeal any decision of such court shall be governed by the applicable laws and rules governing appeals of the decision of such court.

 

8.6                               Notwithstanding any other provision in this Agreement to the contrary, the Company shall indemnify the Indemnitee against all expenses incurred by the Indemnitee in connection with any hearing or proceeding under this Section 8 involving the Indemnitee and against all expenses incurred by the Indemnitee in connection with any other proceeding between the Company and the Indemnitee involving the interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court of competent jurisdiction finds that each of the material claims and/or defenses of the Indemnitee in any such proceeding was frivolous or not made in good faith.

 

9.                                      Exceptions.  Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

 

9.1                               Claims Initiated by Indemnitee.  To indemnify or advance expenses to the Indemnitee with respect to proceedings or claims initiated or brought voluntarily by the Indemnitee and not by way of defense, except with respect to proceedings specifically authorized by the Board or brought to establish or enforce a right to indemnification and/or advancement of expenses arising under this Agreement, the charter documents of the Company or any subsidiary or any statute or law or otherwise, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board finds it to be appropriate; or

 

9.2                               Unauthorized Settlements.  To indemnify the Indemnitee hereunder for any amounts paid in settlement of a proceeding unless the Company consents in advance in writing to such settlement, which consent shall not be unreasonably withheld; or

 

 

9.3                               Securities Law Actions.  To indemnify the Indemnitee on account of any suit in which judgment is rendered against the Indemnitee for an accounting of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law; or

 

9.4                               Unlawful Indemnification.  To indemnify the Indemnitee if a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful.  In this respect, the Company and the Indemnitee have been advised that the Securities and Exchange Commission takes the position that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication.

 

10.                               Non-Exclusivity.  The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements or otherwise, both as to action in the Indemnitee’s official capacity and to action in another capacity while occupying his position as an agent of the Company, and the Indemnitee’s rights hereunder shall continue after the Indemnitee has ceased acting as an agent of the Company and shall inure to the benefit of the heirs, executors and administrators of the Indemnitee.

 

11.                               General Provisions.

 

11.1                        Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification and advancement of expenses to the Indemnitee to the fullest extent now or hereafter permitted by law, except as expressly limited herein.

 

11.2                        Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, then: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to Section 11.1 hereof.

 

11.3                        Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.

 

 

11.4                        Subrogation.  In the event of full payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary or desirable to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

11.5                        Counterparts.  This Agreement may be executed in one or more counterparts, which shall together constitute one agreement.

 

11.6                        Successors and Assigns.  The terms of this Agreement shall bind, and shall inure to the benefit of, the successors and assigns of the parties hereto.

 

11.7                        Notice.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given: (a) if delivered by hand and signed for by the party addressee; or (b) if mailed by certified or registered mail, with postage prepaid, on the third business day after the mailing date.  Addresses for notice to either party are as shown on the signature page of this Agreement or as subsequently modified by written notice.

 

11.8                        Governing Law.  This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware, without giving effect to that body of laws pertaining to conflict of laws.

 

11.9                        Consent to Jurisdiction.  The Company and the Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any action or proceeding that arises out of or relates to this Agreement.

 

11.10                 Attorneys’ Fees.  In the event Indemnitee is required to bring any action to enforce rights under this Agreement (including, without limitation, the expenses of any Proceeding described in Section 1.3) the Indemnitee shall be entitled to all reasonable fees and expenses in bringing and pursuing such action, unless a court of competent jurisdiction finds each of the material claims of the Indemnitee in any such action was frivolous and not made in good faith.

 

 

IN WITNESS WHEREOF, the parties hereto have entered into this Indemnification Agreement effective as of the date first written above.

 

THE COMPANY:

 

PLANET GROUP, INC.

 

	
By:
    	
 
    	
 
    

 

 

THE INDEMNITEE:Exhibit 10.2

 

PLANET GROUP, INC.

 

2000 STOCK INCENTIVE PLAN

 

1.                                       Purpose.

 

Planet Group, Inc., (“the Company”) wishes to attract and retain the best available talent.  The Company seeks to encourage the highest level of performance, to serve the best interests of the Company and its shareholders.  Accordingly, key staff and certain contractors should have the chance to acquire a proprietary interest in the equity of the Company.  Equity stakes will provide staff with incentives to exert their maximum efforts for the success of the Company’s business. The Company expects that the 2000 Stock Incentive Plan (the “2000 Plan”) will help to achieve these goals.

 

2.                                       Definitions.

 

As used herein, the following terms shall have the following meanings:

 

Awards shall mean Options and Restricted Shares, each as defined below (collectively “Awards” and individually an “Award”.)

 

Board shall mean the board of directors of the Company, or any committee of the board to which the board’s powers hereunder may be delegated.

 

Code shall mean the Internal Revenue Code of 1986, as amended.

 

Common Stock Equivalents shall mean convertible securities, and any stock options, warrants or other rights to acquire the Shares on a fully diluted basis.

 

Exercise Date shall mean the date on which notice is served exercising any Option hereunder.

 

Fair Market Value shall have the meaning set forth in Section 14 hereof.

 

Group the Company and its subsidiaries

 

LLC Plan shall mean the Ownership Plan under which options were granted to acquire membership interests in the Company’s predecessor Planet Group, LLC.

 

Options shall mean options to acquire Shares (individually an “Option”.)

 

Option Holder shall mean any person to whom an Option is granted hereunder, which Option has not been exercised and has not terminated or expired.

 

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Outstanding Shares shall mean the aggregate number of (a) the Shares and (b) all Common Stock Equivalents issued and outstanding.

 

Participant shall mean any person, corporation or other entity that has been granted an Award hereunder.

 

Restricted Shares shall mean Shares issued subject to such restrictions as the Company may impose at the time of issuance.

 

Securities Act shall mean the Securities Act of 1933, as amended.

 

Shares shall mean shares of the Company’s common stock, par value $.01 per share.  “Shares” include fractions of Shares, authorized but unissued Shares, or Shares reacquired by the Company.

 

Vesting  (whether or not capitalized) shall mean the occurrence of an event which shall entitle a participant in the 2000 Plan to exercise his or her rights under any Award, subject to the terms and provisions of the 2000 Plan and “vested” and “unvested” in relation to any Shares or Options shall be construed accordingly.

 

3.                                       Scope and Duration.

 

a)                                      The Company may make Awards under the 2000 Plan in the form of Options or Restricted Shares.  Shares issued pursuant to the 2000 Plan may be subject to such restrictions on transfer, repurchase rights or other restrictions as shall be determined by the Board of Directors (“the Board”).

 

b)                                     Subject to adjustment as provided in Section 11 hereof, the maximum number of Shares that the Company will reserve for issuance and for grants of Awards under the 2000 Plan, shall not exceed in the aggregate 4,169,368 Shares.  The Company shall at all times maintain sufficient authorized but unissued Shares, necessary to enable participants to exercise their rights under any outstanding Awards.

 

c)                                      If it should occur that:

 

(i)                                     Any Option granted hereunder shall expire or terminate for any reason without being exercised in full, or

 

(ii)                                  The Company shall reacquire unvested Restricted Shares issued pursuant to Awards,

 

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then such Awards shall again be available for subsequent grants of Awards under the 2000 Plan.

 

d)                                     The Company shall limit Restricted Shares granted under the 2000 Plan to no more than 25% of the total Shares eligible for Awards.

 

e)                                      Unless terminated sooner pursuant to Section 13, the 2000 Plan shall terminate on December 31, 2005.  The Company may grant no new Awards hereunder after that date.

 

4.                                       Administration.

 

The Board or the Compensation Committee of the Board, or such other Board Committee as may be designated by the Board, shall administer the 2000 Plan.  If the Company has a class of stock registered pursuant to Section 12 of the Securities Act, as amended, each member of the Compensation Committee (“the Committee” which shall be deemed to include reference to the Board or another committee designated for the purposes of the 2000 Plan, if no such committee exists.) shall be a Disinterested Person within the meaning of Rule 16b-3 promulgated under the Securities Act and an Outside Director within the meaning of Section 162 (m) of the Code.

 

a)                                      Subject to and consistent with the express provisions of the 2000 Plan, the Committee shall have plenary authority in its discretion to:

 

·                                          Grant Awards and determine the purchase price of the Shares covered by each Option.

 

·                                          Decide the term of each Award and the time or times at which the Company will grant Awards.

 

·                                          Determine the persons to whom the Company shall grant Awards.

 

·                                          Decide the number of Shares covered by each Award.

 

·                                          Interpret the 2000 Plan.

 

·                                          Prescribe, amend and rescind rules and regulations relating the 2000 Plan.

 

·                                          Determine the terms and provisions of the Award agreements (which need not be identical) entered into in connection with Awards under the 2000 Plan.

 

·                                          Accelerate the vesting of all or any portion of an Award or to extend the period during which an Award is exercisable; and

 

·                                          Make all such other determinations deemed necessary or advisable for the administration of the 2000 Plan.

 

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b)                                     The Committee may delegate to one or more of its members or agents such administrative duties as it may deem advisable.  The Committee (or any person to whom it has delegated duties) may employ one or more persons to give advice about any responsibility the Committee may have under the 2000 Plan.

 

c)                                      If the Company is subject to Section 162(m) of the Code, the Company intends to preserve the tax deductibility of compensation for Covered Employees to the extent it is reasonably practicable and consistent with the Company’s compensation objectives.  For the purposes of the 2000 Plan, Covered Employees shall be those employees of the Company described in Section 162(m) of the Code.

 

5.                                       Eligibility;  Factors to be Considered in Granting Awards.

 

a)                                      The Company may grant Options and Restricted Shares both to employees and to non-employees.  For this purpose employees shall be deemed to include employees of the Group as well as employees of affiliated entities of the Company including Elan Corporate Services Limited and its subsidiaries, Beck & Arad, LLP and Hewlett Beck & Arad (collectively the “Affiliates”) Non-employees may include independent agents, directors and consultants, who in the opinion of the Board contribute to the success of the Company.

 

b)                                     In deciding which employees will receive Options, the Committee shall consider

 

·                                          the nature of employees’ duties,

 

·                                          their present and potential contributions to the success of the Company, and

 

·                                          such other factors as it shall deem relevant in connection with accomplishing the objectives of the 2000 Plan.

 

c)                                      When determining the size of Awards for officers and employees, the Committee shall consider performance versus goals (tied to the annual operating plan).

 

6.                                       Specific Terms of Awards.

 

a)                                      The Board may grant an Award subject to such terms and conditions as the Board deems appropriate.  Such terms and conditions, without limitation, may include restrictions on the pledging, sale, assignment or transfer or other disposition of Shares.  The Board may impose the condition that the recipient forfeit all or a portion of such Award to the Company upon termination of employment.  If a Participant who is an employee of an Affiliate transfers employment to the Group, or vice versa, such employee’s employment shall not be treated as having terminated and shall be deemed to have continued, with the entity to which the employee is transferred.

 

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b)                                     Grants of Awards shall be subject to the provision that each Award recipient shall enter into an agreement with the Company, if required by the Board.  Such agreement shall be in a form specified by the Board and shall contain such terms and conditions as the Board in its sole discretion may decide.

 

7.                                       Options

 

a)                                      Options granted hereunder shall be on the following terms and conditions:

 

(i)                                     Price of Options.  The Committee shall determine the purchase price of the Shares covered by each Option  (“Exercise Price”).  The Exercise Price under any Option shall be not less than 75% of the Fair Market Value of a Share (as defined in Section 14 below) on the date on which the Committee grants the Option.  The purchase price with respect to any Option shall be subject to adjustment as provided in Section 11 below.

 

(ii)                                  Grant Date.  The Committee shall determine the grant date of each Option.  In the absence of such a determination, the date on which the Committee adopts a resolution granting an Option shall be the grant date.

 

(iii)                               Term of Options.  The term of each Option shall be not more than ten years from the date of grant, as the Committee shall determine. Options granted to employees shall be subject to earlier termination and shall lapse, subject to and upon the following terms and conditions.  The Committee may waive in whole or in part the termination and lapse of any Options, as it shall determine in its sole discretion:

 

(1)                      In the case of termination by reason of death, permanent physical or mental disability, which prevents the Option Holder from performing his duties for the Company for a period of not less than six months, or unlawful dismissal by the Company, all vested Options shall remain exerciseable and all unvested Options shall immediately become vested, but all such Options shall only be exerciseable within one year after the date of termination of employment, by the former employee or his or her heirs or personal representatives.  Unlawful dismissal by the Company shall mean dismissal, which is found to be in breach of applicable statutes or regulations (e.g. by reason of unlawful discrimination).

 

(2)                      In the event of termination of employment by the Company, without cause, in any case other than as mentioned in paragraph (1) above, the Option  

 

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Holder shall be entitled to exercise Options, to the extent of the portion already vested but all unvested Options or portions thereof shall lapse and terminate upon such termination of employment.  The vested portion of such Options shall only be exercisable within one year after the date of termination of employment.  Termination without cause shall mean termination of employment by the Group or Affiliates for any reason other than one of the following:

 

·                              Embezzlement or misappropriation of funds.

 

·                              Conviction of a felony involving moral turpitude.

 

·                              Commission of material acts of dishonesty, fraud, or deceit.

 

·                              Breach of any material provisions of any employment agreement with the Company to which he or she is party.

 

·                              Habitual or willful neglect of his or her duties.

 

·                              Breach of fiduciary duty to the Company or its Affiliates involving personal profit.

 

·                              Material violation of any other duty to the Company or its Affiliates or their respective owners imposed by law or by the Board of Directors.

 

(3)                      In the event of termination of employment for any reason not set forth in paragraphs (1) and (2) above all unvested Options shall lapse upon termination and all vested Options shall lapse if not exercised within 30 days after termination of employment.

 

b)  Exercise of Options.

 

(i)                                     The Committee shall determine in each case the period during which an Option Holder may exercise any Option granted under the 2000 Plan.

 

(ii)                                  An Option Holder may exercise an Option at any time, or from time to time, as to any or all full Shares as to which the Option is then exercisable.  An Option shall only be exercisable when vested whether wholly or in part.  The vesting period shall be set forth in the instrument granting the Award and may be any period from zero to four years.  Vesting shall normally occur on a fractional basis on each anniversary of the grant of the Award, in relation to that number of Shares which is equal to the total number of Shares subject to the Award, divided by the number of years in the vesting period.  However, the Board shall have the power 

 

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to set a vesting period, which is not a whole number of years, and to allow partial vesting at less than annual intervals.

 

(iii)                               Options may be exercised, as to the vested portion thereof, by service of written notice upon the Company setting forth the number of Shares, which the Option Holder desires to purchase and the Option Holder shall pay in full the purchase price of the Shares as to which an Option Holder exercises an Option.  Payment may be in cash or by delivery of a Promissory Note.  Any such Note shall be due and payable within six months of the Exercise Date and shall bear interest at the lowest applicable rate determined pursuant to the Internal Revenue Code and regulations made thereunder.  The purchased Shares shall be pledged to secure such Note.

 

(iv)                              Subject to compliance with applicable laws and regulations, the Committee in its sole discretion may elect to grant Options that permit payment in Shares of the Company that the Option Holder already owns.  The Company shall value such Shares at the Fair Market Value thereof on the Exercise Date.  The Option Holder shall pay any amount necessary to satisfy any federal, state, or local tax withholding obligations on the Exercise Date.

 

(iv)                              Subject to the provisions of paragraph 7(a)(iii) above the Committee, either at the time of grant or thereafter, will determine the period of time during which an Option Holder may exercise a vested Option following termination of the Option Holder’s employment.

 

(v)                                 Upon the exercise of an Option or portion thereof, the Holder thereof shall have the rights of a shareholder with respect to the Shares purchased pursuant to such Option.

 

c)  Substitution of Options.

 

During the term of the 2000 Plan, the Committee in its discretion, may offer one or more Option Holders the opportunity to surrender any or all unexpired Options for cancellation or replacement.  If the Option Holder then does surrender any Options, the Committee may then grant new Options to such holder for the same or different numbers of Options — at a higher or lower exercise price than the surrendered Options.  Such new Options may have a different term than the surrendered Options.  New Options otherwise shall be subject to the provisions of this 2000 Plan.

 

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8                                          Restricted Shares.

 

The Committee may grant Restricted Shares on the following terms and conditions:

 

a)              Issuance and Restrictions.  Restricted Shares shall be subject to such restrictions on transferability and other restrictions, if any, as the Committee may impose.  Restrictions may start at the date of grant or thereafter.  Restrictions may lapse separately or in combination.  Restrictions may end under such circumstances and in such installments, or otherwise, as the Committee may determine.  (Circumstances may include, without limitation, the achievement of performance criteria.)  A person granted Restricted Shares shall have all of the rights of a Shareholder, unless stated otherwise in the related Award Agreement.  Such rights include, without limitation, the right to exercise any voting rights attaching to the Restricted Shares and the right to receive dividends payable thereon.

 

b)             Forfeiture.  Restricted Shares (and any accrued but unpaid dividends) held by any employee that are at that time unvested and still subject to restrictions shall be forfeited upon termination of an employee’s employment, subject to the same provisions, as set forth in Section 7 above, which apply to the termination of Options, mutatis mutandis.  The Committee may waive in whole or in part the forfeiture of Restricted Shares as it shall determine.

 

c)              Certificates for Shares.  The Company may evidence Restricted Shares in such manner as the Committee may decide.  The Company may register certificates for Restricted Shares in the name of the employee.  If so, the certificates shall bear an appropriate legend that refers to the applicable restrictions.  The Company shall keep physical possession of any such certificates.

 

d)             Distributions.  The Company shall pay distributions on Restricted Shares either at the distribution payment date, or deferred for payment to such date as determined by the Committee.  The Company may pay distributions in cash or in unrestricted Shares having a Fair Market Value equal to the amount of such distributions.

 

9                                          Mergers, Dispositions And Certain Other Transactions

 

If during the term of any Options or Restricted Stock Agreement, the Company shall be merged into or consolidated with or otherwise combined with another person or entity, or substantially all of the property or stock of the Company is acquired by another person or entity, or there is a divisive reorganization, spin-off or liquidation or partial liquidation of the Company, (“Liquidation Event”) the Company may choose to take no action with regard to the Options outstanding or to take any of the following courses of action:

 

a)              The Company may provide in any agreement with respect to any such Liquidation Event comprising a merger, consolidation, combination or acquisition that the surviving, new or acquiring corporation shall grant Options to the Option Holders to acquire shares in such corporation with respect to which the excess of the fair market value of the shares of such 

 

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corporation immediately after the consummation of such merger, consolidation, combination or acquisition over the purchase price under each Option, shall not be greater than the excess of the FMVof the Shares over the Exercise Price of the Options immediately prior to the consummation of such Liquidation Event; or

 

b)             If the Board shall determine that such action is reasonable under the circumstances, it may give each Option Holder the right, immediately prior to the consummation of such Liquidation Event, to exercise his Options in whole or in part, without regard to any restrictions on the time of exercise otherwise imposed pursuant to Paragraph 7 of the Plan; or

 

c)              the Board may take such other action as it shall determine to be reasonable under the circumstances in order to permit Participants to realize the value of rights granted to them under the Plan.

 

10.                                 Non-Transferability of Awards.

 

Awards granted under the 2000 Plan shall not be transferable otherwise than by will or the laws of descent and distribution.  Only employees may exercise Options granted to them under the 2000 Plan, during their own lifetimes. Neither Restricted Stock, nor Options may be pledged as security for any debt nor made subject to any creditor’s lien.

 

11.                                 Adjustments Upon Changes In Capitalization.

 

Notwithstanding any other provisions of the 2000 Plan, the Committee at any time may make or provide for such adjustments to the 2000 Plan as it may deem appropriate to prevent dilution or enlargement of rights.  Adjustments may be to the number, class and purchase price of Shares issuable thereunder or to any outstanding Awards.  The Committee may make adjustments in the event of changes in the Outstanding Shares by reason of:

 

·  share distributions,

·  recapitalizations,

·  consolidations,

·  separations,

·  liquidations, or

·  split-ups,

·  mergers,

·  combinations or exchanges of Shares,

·  reorganizations,

·  similar corporate transactions or events.

 

In the event of a general offer to Shareholders for the acquisition of their Shares, the Committee may make adjustments as it deems equitable in respect of Awards so that they may be exercisable for the consideration payable in any acquisition transaction.  Any determination by the Committee shall be conclusive.  Notwithstanding the above, nothing herein grants Option Holders any pre-emptive rights to maintain their proportionate interests on an “as-exercised” basis.

 

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12.                                 Effective Date.

 

The 2000 Plan shall be effective as of January 1, 2000, except with respect to any Options granted under the LLC Plan assumed by the Company, as to which the 2000 Plan shall be effective as of July 1, 1999.

 

13.                                 Termination and Amendment.

 

The Board or the Committee may suspend, terminate, modify or amend the 2000 Plan.  Any such modification or amendment shall be subject to the approval of the Company’s Shareholders, if Rule 16b-3 is applicable and requires such approval.  Except as set forth in Section 11, no suspension, termination, modification or amendment of the 2000 Plan, without the consent of the employee to whom the Company has granted an Award, may adversely affect the rights of such employee under such Award.

 

14.                                 Fair Market Value.

 

As used herein, the term Fair Market Value (“FMV”) on any day means, on such day:

 

a)                                      If the principal market for the Shares is a national securities exchange or the NASDAQ National Market System,  FMV shall be the closing sales price of the Shares, as reported on such day or if the exchange was closed on such day, on the last business day prior to such day on which the exchange was open.

 

(i)                                     By such exchange or market system, or

 

(ii)                                  On a consolidated tape reflecting transactions on the exchange or market system.

 

b)                                     If the principal market for the Shares is not (a) above, and the National Association of Securities Dealers Automated Quotations System quotes the Shares, FMV shall be the mean between the closing bid and asked prices for the Shares as quoted on such System.

 

c)                                      If the principal market for the Shares is neither (a) nor (b) above, FMV shall be the mean between the highest bid and the lowest asked prices for the Shares as reported by the National Quotation Bureau, Inc.

 

d)                                     If the Shares are not traded or quoted on any securities exchange or quotation system and there has been a material arms-length investment in the Shares within six months prior to the FMV date,  FMV shall be the price per Share (adjusted as necessary under Section 11) paid for such investment.

 

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e)                                      In the event that none of sub-paragraphs (a), (b), (c) and (d) of this paragraph are applicable then the Committee shall determine the Fair Market Value of the Shares by any method that it deems to be appropriate.  The Committee’s determination shall be conclusive.

 

15.                                 Additional Conditions

 

The Committee may require, as a condition to the issuance or delivery of any Shares granted under the 2000 Plan that, at the time of exercise:

 

a)              The Shares reserved for the 2000 Plan shall be duly listed, upon official notice of issuance, upon such securities exchange(s) on which the Shares is listed.

 

b)             A registration statement under the Securities Act, with respect to such Shares shall be effective.

 

c)              The person receiving such Shares delivers to the Company such documents, agreements and investment representations as the Committee shall determine to be in the best interests of the Company.

 

16.                                 No Right to Continued Employment.

 

Nothing in the 2000 Plan or in any Awards granted thereunder shall confer upon any employee any right to continue in the employ of the Company.  The Company may terminate the employment of any employee at any time, in accordance with the terms of their employment.

 

17.                                 Governing Law and Jurisdiction.

 

This Plan shall be governed by and construed in accordance with the laws of the State of New York, applicable to contracts to be performed wholly within that state, without reference to the principles of conflict of laws.  The Company and each Participant by acceptance of an Award, consent to suit in and submit to the non-exclusive jurisdiction of the courts, federal and state, located in the State of New York, with venue in New York County, in respect of any matter arising in connection with this Plan, any Award or any Shares acquired pursuant to any Award.

 

18.                                 Miscellaneous

 

a)                                      Notices  Any notices, information or written statement required to be given, shall be served personally, by courier or by mail (airmail service, if available) addressed to each Participant at the address shown in the instrument creating the Award and to the Company at its principal office. Any notice, if served by post, shall be deemed to have 

 

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been served within 5 Business Days of posting, and in proving such service it shall be sufficient to prove that the letter containing the notice was properly addressed and put into the Post Office.  In all other cases, notice shall be deemed served when received by the addressee or receipt thereof is refused.

 

b)                                     Interpretation  “Written” or any term of like import includes words typewritten, printed, painted, engraved, lithographed, photographed or represented or reproduced by any mode of reproducing words in a visible form, including telex, facsimile, telegram, e-mail or other form of writing produced by electronic communication. Whenever the singular or plural number, or the masculine, feminine or neuter gender is used in this Plan, it shall equally, where the context admits, include the others and references to persons shall include corporations and all legal entities capable of having a legal existence.  Headings in this Plan are for convenience only and shall not affect the meaning or import of any provision hereof.

 

c)                                      Waiver and Amendment  No waiver, variation or amendment of any provision of this Plan, or of any Award shall be effective unless in writing and under the hand of a person duly authorized by the Board or the Committee to execute the same.  Waiver of the Company’s rights upon any one occurrence shall not automatically, waive the Company’s rights upon any subsequent occurrence of the same event.

 

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NONQUALIFIED STOCK OPTION GRANT
 PURSUANT TO THE PLANET GROUP, INC.
 2000 STOCK INCENTIVE PLAN (“THE PLAN”)

 

CERTIFICATE OF GRANT OF OPTION

 

The Board of Directors of Planet Group, Inc. (the “Company”) hereby grants to            (the “Optionee”) an option (“Option”) to purchase a total of            shares of Common Stock of $0.01 par value of the Company (the “Shares”) pursuant to the Plan.

 

This Option is not intended to be an “incentive stock option” within the meaning of section 422 of the Internal Revenue Code of 1986, as amended.  The Option is a Non-Qualified Stock Option.

 

In consideration of the sum of $           paid by you to the Company (receipt of which is hereby acknowledged), the Company hereby grants to you an Option to purchase            Shares (“the Option”) on the terms and conditions contained in the Rules of the Plan, as amended from time to time (a copy of which is enclosed herewith).

 

The purchase price for each Share in respect of which the Option is exercisable shall be $           per Share.  The aggregate purchase price in respect of the number of Shares for which you wish to purchase at any time shall be payable as described in the Plan, on or following the exercise of the Option.

 

The vesting period applicable to the Option is three years from           , (the “Commencement Date”).  This means that you shall become entitled to exercise the Option in respect of one third of the Shares, which are the subject of the Option, on each of the first three anniversaries of the Commencement Date.  To the extent that the Commencement Date is prior to the date of this grant, this grant is made, as you hereby acknowledge, in fulfillment of the commitment by the Company to grant these Options as of the Commencement Date.  Subject to the Rules of the Plan, the Option may be exercised at any time between 1 and 10 years from the date hereof, and you may purchase any number of Shares up to the maximum number of vested Shares contained in the Option during that time.

 

You shall not in any event be entitled to purchase any Shares, more than 10 years from the date hereof and your rights, in respect of any Shares which may remain subject to the Option, shall lapse at that time.  Similarly, except in certain specified circumstances, the Option shall lapse if you leave or are dismissed from the employment of the Company or one of its subsidiaries or affiliates.  The Option shall be separate from any employment agreement or terms and conditions of employment. The grant of the Option does not constitute an employment contract, and it does not guarantee employment or service for the length of any vesting schedule or portion thereof and does not mean that the Company or the relevant subsidiaries or affiliates have any separate obligation to continue your employment.

 

This Option may not be transferred, assigned or changed in any way, and if you attempt to do so the Option herein will lapse at the time.

 

 

By signing this Certificate of Grant of Option you acknowledge receipt of a copy of the Plan, which is enclosed herewith, and hereby accepts this Option subject to all the terms and provisions thereof.  You hereby agree to accept as binding, conclusive and final decisions or interpretations of the Committee upon any questions arising under the Plan.

 

You are advised to read carefully the Rules of the Plan, which govern the terms of the Option and set out the procedure for exercise.  If you have any questions in relation to the Option, the Rules or the Plan you should direct these to the Company’s General Counsel.

 

	
DATE:             
    	
 
    
	
 
    	
 
    
	
 
    	
PLANT   GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
The   foregoing is hereby agreed to and accepted by the undersigned.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
          
    
	
 
    	
EMPLOYEE’S   NAME
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMPLOYEE’S   SIGNATURE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DATE   SIGNED
    

 

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NOTICE  OF  EXERCISE

 

To:          Planet Payment, Inc.

 

(1)           The undersigned Option holder hereby elects to purchase            shares of the Common Stock of Planet Payment, Inc., (the “Corporation”) pursuant to the terms of the Option Grant dated the            day of           , 200           (the “Option Agreement”) issued under the terms of the Corporation’s 2000 Stock Incentive Plan (the “2000 Plan”), and either:

 

(a)   tenders herewith payment of the purchase price for such shares in full, together with all applicable transfer taxes, if any; or

 

(b)   requests the Corporation to issue the shares by way of the “net exercise” method based on the Fair Market Value of the Corporation’s Common Stock (as defined in the 2000 Plan) on the Exercise Date.  The undersigned acknowledges that under this method the shares to be issued are in effect paid for by surrendering the requisite number of options, calculated by reference to the difference between the Exercise Price and the Fair Market Value on the Exercise Date and will result in the issuance of a number of shares, which is less than the number in respect of which the Option is hereby exercised as stated above.

 

(2)           The undersigned acknowledges that all income taxes and Social Security and Medicare taxes due upon exercise of this Option Agreement will need to be paid to the Corporation by the undersigned before the shares can be issued and understands that the Corporation will notify the amount due following receipt of this Notice.

 

(3)           In exercising its rights to purchase the Common Stock of the Corporation, the undersigned hereby confirms and acknowledges that the shares will be issued subject to restrictions on transfer under the Securities Act 1933 and the certificates therefor will bear a legend to that effect.

 

(4)           Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below.

 

 

	
SIGNED:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Name)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Address)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date
    
	
 
    	
 
    
	
NAME IN WHICH STOCK TO BE REGISTERED IF DIFFERENT

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