Document:

Form of Stock Option Award Agreement

 EXHIBIT 10.5 
 MATRIX SERVICE COMPANY 
 STOCK OPTION AGREEMENT 
 This Agreement is effective as of «GrantDate», among Matrix Service Company, a Delaware corporation (the “Company”),
«Optionee» (“Optionee”). 
 To carry out the purposes of the Matrix Service Company 2004 Stock Option Plan, as amended
(the “Plan”), to which this Agreement is expressly subject, by affording Optionee the opportunity to purchase shares of Common Stock, par value $0.01 per share, of the Company (“Stock”), and in consideration of the mutual
agreements and other matters set forth herein and in the Plan, the Company and Optionee hereby agree as follows: 
 1. Grant of Option.
The Company hereby grants to Optionee the right and option (the “Option”) to purchase all or any part of an aggregate of «NumberofShares» shares of Stock, on the terms and conditions set forth herein and in the Plan, a copy of
which is attached hereto as Exhibit A and is incorporated herein by reference. It is intended that the Option qualify as an “incentive stock option” within the meaning of Section 422A of the Internal Revenue Code of 1986, as amended
(the “Code”). 
 The Option, if not previously exercised, shall expire and not be exercisable after the expiration of ten
(10) years from the date of grant hereof, unless earlier terminated as provided below. 
 2. Purchase Price. The purchase price
of Stock purchased upon exercise of the Option shall be «PurchasePrice» per share, which has been determined to be not less than the fair market value of the Stock at the date of grant of the Option. 
 3. Exercise of Option. Subject to the earlier expiration of the Option as herein provided and subject to the terms and conditions contained
herein, the Option may be exercised, by written notice (which complies in all respects with the provisions of this Agreement) to the Company as its principal executive office addressed to the attention of the Secretary of the Company, at any time
and from time to time on and after «GrantDate», such exercise to be effective at the time of receipt of such written notice at the Company’s principal executive office during normal business hours, but any exercise of the Option
must be for a minimum of 100 shares of Stock and the Option shall only be exercisable in accordance with the attached schedule. 
 Optionee
(or the person permitted to exercise the Option in the event of Optionee’s death) shall be and have all of the rights and privileges of a shareholder of record of the Company with respect to shares acquired upon exercise of the Option,
effective upon such exercise. 
 Further, and notwithstanding anything herein to the contrary, the Compensation Committee of the Board of
Directors (“the Committee”) may, in its sole discretion, at any time or times (i) treat the exercise of all or part of the Option then being exercised as the exercise of a stock appreciation right or (ii) cancel all or part of
the Option, whether or not then exercisable, by treating such cancellation as being the exercise of a stock appreciation right. In the event the Committee takes such action, the Company shall compute an amount (the “Appreciation Amount”)
equal to the excess (if any) of the aggregate fair market value of the number of shares of Stock with respect to which this Option is deemed “exercised” over the aggregate purchase price of such number of shares as a stock appreciation
right and the Company shall pay to the Optionee, in lieu of his purchasing such number of shares or retaining the option with respect to such shares (as the case may be), cash equal to the Appreciation Amount, less any applicable withholdings
required for federal, state or local tax purposes. 
 4. Payment of Exercise Price. The purchase price of shares as to which the
Option is exercised shall be paid in full at the time of exercise in cash. 
 5. Non-Transferability. The Option may not be
transferred by Optionee otherwise than by will or the laws of intestate successio 
  

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 6. Termination of Employment. If the Optionee’s employment is terminated for “cause” (defined
below), the Option shall automatically expire simultaneously with such termination. In the event of voluntary termination of Optionee’s employment or termination by the Company for no reason or for any reason other than “cause”, the
Option may be exercised by the Optionee at any time within the three-month period commencing on the day next following such termination. For purposes of this Section 6, “cause” shall mean: 
 (i) final conviction of the Optionee of a felony under the laws of the United States or any state thereof which results or was intended to result directly
or indirectly in gain or personal enrichment by the Optionee at the expense of the Company; 
 (ii) participation by the Optionee as an
employee, officer or principal shareholder in any business engaged in activities in direct competition with the Company without the consent of the Company; or 
 (iii) gross and willful inattention to Optionee’s duties for a continuous period of three months other than due to Optionee’s total physical disability, or another cause reasonably beyond the control of
Optionee, which inattention to duty has a material adverse effect on the Company. 
 In the event that Optionee’s employment with the
Company shall terminate due to death or permanent disability of the Optionee (as determined under the standards of the Company’s long-term disability program or, if no such program is in effect, as determined by the Committee) (each of such two
events being an “Acceleration Termination), all of the remaining shares then subject to the Option held by Optionee shall immediately vest in full and the Option as so accelerated may be exercised by the Optionee (or his estate, personal
representative or beneficiary) at any time within the three-month period commencing on the day next following such Acceleration Termination (or if the Optionee dies or becomes disabled within the three-month period commencing on the day next
following the Acceleration Termination, within the next succeeding three months following such death or disability) to the full extent of all shares remaining subject to the Option on the day immediately prior to the Acceleration Termination.

 In the event that Optionee’s employment with the Company shall terminate due to the retirement of Optionee on or after reaching age
65 (or if prior to age 65, with the consent of the Committee), the Option may be exercised by Optionee (or his estate, personal representative or beneficiary) at any time within the three-month period commencing on the day next following such
termination (or if the Optionee dies or becomes disabled within the three-month period following his retirement, within the next succeeding three months following such death or disability) to the full extent that Optionee was entitled to exercise
the Option on the day immediately prior to such termination. The Committee shall determine whether, for purposes of the Plan, any termination of employment is due to permanent disability. The Committee shall determine whether an authorized leave of
absence on military or government service or for other reasons shall constitute a termination of employment. 
 The Committee
may, in its discretion, (i) accelerate the exercisability of all or part of an Option that is not otherwise exercisable or (ii) provide that an Option shall remain outstanding and be exercisable following termination of employment (or
other specified events in the case of non-employees) on such other terms and conditions as the Committee shall approve. 
 7. Withholding
of Tax. To the extent that the exercise of the Option is a taxable event with respect to which the Company has a duty to withhold for federal or state income tax purposes, Optionee shall pay to the Company at the time of such exercise (or such
other time as the law permits if Optionee is subject to Section 16(b) such amount of money as the Company may require to meet its obligation under applicable tax laws or regulations, and if Optionee fails to do so, the Company is authorized to
withhold from any cash remuneration then or thereafter payable to Optionee any tax required to be withheld by reason of such resulting compensation income or otherwise refuse to issue or transfer any shares otherwise required to be issued pursuant
to the terms hereof. 
  

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 8. Status of Stock. Until the shares of Stock acquirable upon the exercise of the Option have been
registered for issuance under the Securities Act of 1933, as amended (the “Act”), the Company will not issue such shares unless the Optionee provides the Company with a written opinion of legal counsel, who shall be satisfactory to the
Company, addressed to the Company and satisfactory in form and substance to the Company’s counsel, to the effect that the proposed issuance of such shares to the holder of the Option may be made without registration under the Act. If exemption
from registration under the Act is available upon an exercise of the Option, Optionee (or the person permitted to exercise this option in the event of Optionee’s death or incapacity), if requested by the Company to do so, will execute and
deliver to the Company in writing an agreement containing such provisions as the Company may require to assure compliance with applicable securities laws. 
 Unless the offering, sale and delivery of shares of Stock acquirable upon exercise of the Option have been registered and continue be registered at the date of exercise hereof under the Act, Optionee agrees that the
shares of Stock which Optionee acquires by exercising the Option shall be acquired for investment without a view to distribution, within the meaning of the Act, and shall not be sold, transferred, assigned, pledged or hypothecated in the absence of
an effective registration statement for the shares under the Act and applicable state securities laws or an applicable exemption from the registration requirements of the act and any applicable state securities laws. Optionee also agrees that the
shares of Stock which Optionee may acquire by exercising the Option will not be sold or disposed of in any manner which would constitute a violation of any other applicable securities laws, whether federal or state. 
 Optionee further agrees that the Option granted herein shall be subject to the requirement that, if at any time the Board shall determine, in its
discretion, that the listing, registration or qualification of the shares subject to such Option upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the issue or purchase or issuance of shares hereunder, such Option may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not reasonably accepted to the Board. 
 9. Employment Relationship. For purposes of this
Agreement, Optionee, if an employee, shall be considered to be in the employment of the Company as long as Optionee remains an employee of either the Company, a parent or subsidiary corporation (as defined in section 425 of the Code) of the Company,
or a corporation or a parent or subsidiary of such corporation. Any question as to whether and when there has been a termination of such employment, for purposes of this Agreement, and the cause of such termination, for purposes of this Agreement,
shall be determined by the Committee, and its determination shall be final. Nothing herein shall give Optionee any right to continued employment or affect in any manner the right of the Company or any subsidiary or parent corporation to terminate
the employment of Optionee. 
 10. Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to
the Company and all persons lawfully claiming under Optionee. This Agreement and all actions taken shall be governed by and constructed in accordance with the laws of the State of Delaware. In the event of conflict between this Agreement and the
Plan, the terms of the Plan shall control. The Committee shall have authority to construe the terms of this Agreement, and the Committee’s determinations shall be final and binding on Optionee and the Company. 
 «Optionee» - Information included in the Notice of Grant of Stock Options and Option Agreement 
  

					
		 	MATRIX SERVICE COMPANY
			
	  
	 	By:	 	  

	Optionee	 		 	Authorized Officer

  

 -3-Form of Stock Option Award Agreement

 EXHIBIT 10.6 
 NONEMPLOYEE DIRECTOR STOCK OPTION AGREEMENT 
                                        
                      AGREEMENT made as of the          day of
                    ,             , between MATRIX SERVICE
COMPANY, a Delaware corporation (the “Company”), and (“Director”). 
 To carry out the purposes of the MATRIX
SERVICE COMPANY 1995 NONEMPLOYEE DIRECTORS’ STOCK OPTION PLAN (the “Plan”), by affording Director the opportunity to purchase shares of common stock of the Company (“Stock”), and in consideration of the mutual agreements and
other matters set forth herein and in the Plan, the Company and Director hereby agree as follows: 
 1. Grant of Option. The
Company hereby irrevocably grants the Director the right and option (“Option”) to purchase all or any part of an aggregate of shares of Stock, on the terms and conditions set forth herein and in the Plan, which Plan is incorporated
herein by reference as a part of this Agreement. This Option shall not be treated as an incentive stock option within the meaning of section 422(b) of the Internal Revenue Code of 1986, as amended (the “Code”). 
 2. Purchase Price. The purchase price of Stock purchased pursuant to the exercise of this Option shall be
$             per share, which has been determined to be not less than the fair market value of the Stock at the date of grant of this Option. For all purposes of this Agreement,
fair market value of Stock shall be determined in accordance with the provisions of the Plan. 
 3. Exercise of Option. Subject
to the earlier expiration of this Option as herein provided, this Option may be exercised, by written notice to the Company at its principal executive offices addressed to the attention of Chief Executive Officer, at any time and from time to time
after the date of grant hereof, but, except as otherwise provided below, this Option shall not be exercisable for more than a percentage of the aggregate number of shares offered by this Option determined by the number of full calendar months from
the first day of the calendar month coincident with or next following the date of grant hereof to the date of such exercise, in accordance with the following schedule: 
  

				
	 Number of Full Calendar Months
	  	 Percentage of Shares
 That May Be Purchased
	 
	 Less than 12 months
	  	0.00	%
	 12 months but less than 24 months
	  	50.0	%
	 24 months or more
	  	100.0	%

 Notwithstanding the foregoing, if (i) the Company shall not be the surviving entity in any
merger, consolidation or other reorganization (or survives only as a subsidiary of an entity other than a previously wholly-owned subsidiary of the Company (ii) the Company sells, leases or exchange or agrees to sell, lease or exchange all or
substantially all of its assets to any other person or entity (other than a wholly-owned subsidiary of the Company), (iii) the Company is to be dissolved and liquidated, (iv) any person or entity, including a “group” as
contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock (based
upon voting power), or (v) as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board of Directors of the Company
(each such event is referred to herein as a “Corporate Change”), then effective as of the earlier (1) the date of approval by the stockholders of the Company of such merger, consolidation, reorganization, sale, lease or exchange of
assets or dissolution or such election of directors or (2) the date of such Corporate Change, this Option shall be exercisable in full. 
 This Option and all rights granted hereunder are not transferrable by Director other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title 1 of the Employee
Retirement Income Security Act of 1974, as amended, or the rules thereunder, and may be exercised during Director’s lifetime only by Director or Director’s guardian or legal representative. This Option may be exercised only while Director
remains a member of the Board of Directors of the 
  

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 Company (the “Board”) and will terminate and cease to be exercisable upon Director’s termination of
membership on the Board, except that: 
 (a) If Director’s membership on the Board terminates by reason of disability,
this Option may be exercised in full by Director (or Director’s estate or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Director, may exercise this Option in full at
any time during the period of 90 days following termination. 
 (b) If Director dies while a member of the Board,
Director’s estate, or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Director, may exercise this Option in full at any time during the period of 90 days following the
date of Director’s death. 
 (c) If Director’s membership on the Board terminates for any reason other than as
described in (a) or (b) above, this Option may be exercised by Director at any time during the period of 30 days following such termination, or by Director’s estate (or the person who acquires this Option by will or the laws of
descent and distribution or otherwise by reason of the death of Director) during such period if Director dies during such 30 day period, but in each case only as to the number of shares Director was entitled to purchase hereunder upon exercise of
this Option as of the date Director’s membership on the Board so terminates. 
 This Option shall not be exercisable in any event after
the expiration of ten years from the date of grant hereof. The purchase price of shares as to which this Option is exercised shall be paid in full at the time of exercise in cash (including check, bank draft or money order payable to the order of
the Company). No fraction of a share of Stock shall be issued by the Company upon exercise of an Option or accepted by the Company in payment of the purchase price thereof, rather, Director provide a cash payment for such amount as is necessary to
effect the issuance and acceptance of only whole shares of Stock. Unless and until a certificate or certificates representing such shares shall have been issued by the Company to Director, Director (or the person permitted to exercise this Option in
the event of Director’s death) shall not be or have any of the rights or privileges of a stockholder of the Company with respect to shares acquirable upon an exercise of this Option. 
 4. Withholding of Tax. To the extent that the exercise of this Option or the disposition of shares of Stock acquired by exercise of this
Option results in compensation income to Director for federal or state income tax purposes, Director shall deliver to the Company at the time of such exercise or disposition such amount of money or shares of Stock as the Company may require to meet
its obligation under applicable tax laws or regulations, and if Director fails to do so, the Company is authorized to withhold from any cash or Stock renumeration then or thereafter payable to Director any tax required to be withheld by reason of
such resulting compensation income. Upon an exercise of this Option, the Company is further authorized in its discretion to satisfy any such withholding requirement out of any cash or shares of Stock distributable to Director upon such exercise.

 5. Status of Stock. The Company intends to register for issuance under the Securities Act of 1933, as amended (the
“Act”), the shares of Stock acquirable upon exercise of this Option, and to keep such registration effective throughout the period this Option is exercisable. In the absence of such effective registration or an available exemption from
registration under the Act, issuance of share of Stock acquirable upon exercise of this Option will be delayed until registration of such shares is effective or an exemption from registration under the Act is available. The Company intends to use
its best efforts to ensure that no such delay will occur. In the event exemption from registration under the Act is available upon exercise of this Option, Director (or the person permitted to exercise this Option in the event of Director’s
death or incapability), if requested by the Company to do so, will execute and deliver to the Company in writing an agreement containing such provisions as the Company may require to assure compliance with applicable securities laws. 
 Director agrees that the shares of Stock which Director may acquire by exercising this Option will not be sold or otherwise disposed of in any manner
which would constitute a violation of any applicable federal or state securities laws. Director also agrees (i) that the certificates representing the shares of Stock purchased under this Option may bear such legend or legends as the Company
deems appropriate in order to assure compliance with applicable securities laws, (ii) that the Company may refuse to register the transfer of the shares of Stock purchased under this Option on the stock transfer records of the Company if such
proposed 
  

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 transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities
laws and (iii) that the Company may give related instructions to its transfer agent, if any, to stock registration of the transfer of the shares of Stock purchased under this Option. 
 6. Binding Effect. This Agreement shall be binding and inure to the benefit of any successors to the Company and all persons lawfully
claiming under Director. 
 7. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Delaware. 
 IN WITNESS WHEREOF, the Company has caused this agreement to be duly executed by its officer thereunto duly
authorized, and Director has executed this Agreement, all as of the day and year first above written. 
  

			
	MATRIX SERVICE COMPANY
		
	By:	 	  

		 	DIRECTOR

  

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