Document:

Form of Associate Non-Qualified Stock Option Agree

 

EXHIBIT 10.28

Technical Olympic USA, Inc.

Annual and Long-Term Incentive Plan

Associate Non-Qualified Stock Option Agreement

     AGREEMENT
made as of               , between Technical Olympic USA, Inc., a Delaware
corporation (the “Company”), and ___(“Employee”).

     To carry out the purposes of the Technical Olympic USA, Inc. Annual and Long-Term Incentive
Plan (the “Plan”), by affording Employee the opportunity to purchase shares of Class A common
stock, par value $.01, (“Stock”) of Technical Olympic USA, Inc. (the “Company”), the Company and
Employee hereby agree as follows:

     1. Grant of Option. The Company hereby irrevocably grants to Employee 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. In the event of any conflict between the terms of this
Agreement and the Plan, the Plan shall control. Capitalized terms used but not defined in this
Agreement shall have the meaning attributed to such terms under the Plan, unless the context
requires otherwise.

     2. Purchase Price; Vesting and Exercise. The purchase price per share of Stock
purchased pursuant to the exercise of this Option and vesting of the Option and exercise rights
shall be as set forth on the following schedule:

	 	 	 	 	 	 	 	 	 
	No. of Shares	 	Vesting/Exercise Date	 	 	Share Purchase Price	 
	1/5 of total grant
	 	March 3, 2005	 	 	$32.34	 
	1/5 of total grant
	 	March 3, 2006	 	 	$35.57	 
	1/5 of total grant
	 	March 3, 2007	 	 	$39.13	 
	1/5 of total grant
	 	March 3, 2008	 	 	$43.04	 
	1/5 of total grant
	 	March 3, 2009	 	 	$47.34	 

     Employee may exercise Option rights on or after the vesting date in accordance with the terms
of this Agreement. Exercise of Option rights shall be by written notice to the Company at its
principal executive office addressed to the attention of its Secretary (or such other officer or
employee of the Company as the Company may designate from time to time).

     Notwithstanding the above schedule, upon the occurrence of the following events, this Option
shall become exercisable as provided below:

     (a) If Employee’s employment with the Company terminates for any reason other than
termination as provided in (b) below, this Option may be exercised at any time during the
six (6) month period following such termination, by Employee or by Employee’s guardian or
legal representative (or by Employee’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 Employee if Employee dies during such six (6) month period), but only
as to the vested number of shares of Stock, if any, that Employee was entitled to purchase
hereunder as of the date Employee’s employment so terminates.

     (b) If Employee’s employment with the Company is terminated by the Company for cause
(in accordance with Company policy or as provided by Employee’s employment agreement, if
any) or by the Employee for any reason (other than a permitted reason as set forth in
Employee’s employment agreement, if applicable), this Option, to the extent vested on the
date of termination, may be exercised, at any time during the 90-day period following such
termination, by Employee or by Employee’s guardian or legal representative (or by Employee’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 Employee if Employee dies during such
90-day period), but in each case only as to the vested number of shares of Stock, if any,
that Employee was entitled to purchase hereunder as of the date Employee’s employment so
terminates.

     (c) Notwithstanding the foregoing, there is no minimum or maximum number of shares of
Stock that must be purchased by Employee upon exercise of this Option. Instead, Employee
may, at any time and from time to time, purchase any number of shares of Stock that are then
vested and exercisable according to the provisions of this Agreement.

     (d) Notwithstanding the foregoing, this Option shall not be exercisable in any event
after the expiration of 10 years from the date of grant hereof.

     The purchase price of the shares of Stock as to which this Option is exercised shall be paid
in full at the time of exercise (a) in cash (including by check acceptable to the Company), (b) if
the shares are readily tradable on a national securities market or exchange, through a “cashless
broker exercise” procedure in accordance with a program established by the Company, or (c) any
combination of the foregoing. No fraction of a share shall be issued by the Company upon exercise
of an Option. Unless and until a certificate or certificates representing such shares shall have
been issued by the Company to Employee, Employee (or the person permitted to exercise this Option
in the event of Employee’s death) shall not be or have any of the rights or privileges of a
shareholder of the Company with respect to shares acquirable upon an exercise of this Option.

     3. Withholding of Tax. To the extent that the exercise of this Option or the
disposition of shares acquired by exercise of this Option results in wages to Employee for federal,
state or local tax purposes, Employee shall deliver to the Company at the time of such exercise or
disposition such amount of money, if any, as the Company may require to meet its minimum
withholding obligations under applicable tax laws or regulations. No exercise of this Option shall
be effective until Employee (or the person entitled to exercise this Option, as applicable) has
made arrangements approved by the Company to satisfy all applicable minimum tax withholding
requirements of the Company.

2

 

     Employee agrees that the shares which Employee 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. Employee also agrees that (i) the certificates representing the
shares purchased under this Option may bear such legend or legends as the Committee deems
appropriate in order to assure compliance with applicable securities laws, (ii) the Company may
refuse to register the transfer of the shares purchased under this Option on the stock transfer
records of the Company if such proposed transfer would in the opinion of counsel satisfactory to
the Company constitute a violation of any applicable securities law, and (iii) the Company may give
related instructions to its transfer agent, if any, to stop registration of the transfer of the
shares purchased under this Option.

     4. 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 Employee.

     5. Entire Agreement. This Agreement constitutes the entire agreement of the parties
with regard to the subject matter hereof, and contains all the covenants, promises,
representations, warranties and agreements between the parties with respect to the Option granted
hereby. Without limiting the scope of the preceding sentence, all prior understandings and
agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null
and void and of no further force or effect. Any modification of this Agreement shall be effective
only if it is in writing and signed by both Employee and an authorized officer of the Company.

     6. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and Employee has executed this Agreement, all effective as of the day and year
first above written.

	 	 	 	 	 
	 	TECHNICAL OLYMPIC USA, INC.

 	 
	 	By:  	 	 
	 
	 	 	Name:  	
 
	 	 	Title:  	

 	 
	 

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	 	 
	 	 	 
	 	 	 
	 

3<PAGE>
                                                                  EXHIBIT 10.27

                                TIME WARNER INC.
               NON-EMPLOYEE DIRECTORS' DEFERRED COMPENSATION PLAN

1.       PURPOSE OF THE PLAN

         The purpose of the Plan is to enhance the Company's ability to attract
and retain talented individuals to serve as members of the Board.

2.       DEFINITIONS

         The following capitalized terms used in the Plan have the respective
meanings set forth in this Section:

         (a)      "ACT" means The Securities Exchange Act of 1934, as amended,
                  or any successor thereto.

         (b)      "AFFILIATE" means any entity that is consolidated with the
                  Company for financial reporting purposes or any other entity
                  designated by the Board in which the Company or an Affiliate
                  has a direct or indirect equity interest of at least twenty
                  percent (20%), measured by reference to vote or value.

         (c)      "ANNUAL DEFERRAL AMOUNT" means the portion of a Participant's
                  Cash Compensation that is to be deferred.

         (d)      "BOARD" means the Board of Directors of the Company.

         (e)      "CASH COMPENSATION" means cash compensation earned by a
                  Participant as a director of the Company (including, but not
                  limited to, annual retainer, board meeting fees, committee
                  meeting fees and committee chairman fees).

         (f)      "CODE" means The Internal Revenue Code of 1986, as amended,
                  or any successor thereto.

         (g)      "COMPANY" means Time Warner Inc., formerly named AOL Time
                  Warner Inc., a Delaware corporation.

         (h)      "DEFERRAL ELECTION FORM" means an election form approved by
                  the Board.

         (i)      "DEFERRED CASH" means a bookkeeping entry credited in
                  accordance with an election made by a Participant pursuant to
                  Section 5.

         (j)      "DEFERRED SHARE UNIT" means a bookkeeping entry, equivalent
                  in value to one Share, credited in accordance with an
                  election made by a Participant pursuant to Section 5.

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                                                                              2

         (k)      "DEFERRED ACCOUNT" means a bookkeeping account maintained by
                  the Company pursuant to which the Company records amounts
                  deferred by a Participant as Deferred Cash and/or Deferred
                  Share Units.

         (l)      "EFFECTIVE DATE" means the date the Board approves the Plan.

         (m)      "ELIGIBLE DIRECTOR" means any director of the Company who is
                  not an employee of the Company or any Affiliate during any
                  years of service covered by the election made on a Deferral
                  Election Form.

         (n)      "FAIR MARKET VALUE" means, on a given date, (i) if there
                  should be a public market for the Shares on such date, the
                  average of the high and low prices of the Shares on the New
                  York Stock Exchange, or, if the Shares are not listed or
                  admitted on any national securities exchange, the average of
                  the per Share closing bid price and per Share closing asked
                  price on such date as quoted on the National Association of
                  Securities Dealers Automated Quotation System (or such market
                  in which such prices are regularly quoted)(the "NASDAQ"), or,
                  if no sale of Shares shall have been reported on the New York
                  Stock Exchange or quoted on the NASDAQ on such date, then the
                  immediately preceding date on which sales of the Shares have
                  been so reported or quoted shall be used, and (ii) if there
                  should not be a public market for the Shares on such date,
                  the Fair Market Value shall be the value established by the
                  Board in good faith.

         (o)      "PARTICIPANT" means any Eligible Director who elects to
                  participate in the Plan.

         (p)      "PLAN" means the Time Warner Inc. Non-Employee Directors'
                  Deferred Compensation Plan.

         (q)      "PRIME RATE" means, with respect to each annual period ending
                  on any April 30, the prime rate of interest per annum
                  reported by the Wall Street Journal on the May 1 with which
                  such annual period commenced (or if such May 1 is not a
                  business day, the immediately preceding business day).

         (r)      "SHARES" means shares of common stock of the Company, $.01
                  par value per share.

3.       ADMINISTRATION

         The Plan shall be administered by the Board, which may delegate its
duties and powers in whole or in part as it deems appropriate. The Board is
authorized to interpret the Plan, to establish, amend and rescind any rules and
regulations relating to the Plan, and to make any other determinations that it
deems necessary or desirable for the administration of the Plan. The Board may
correct any defect or supply any omission or reconcile any inconsistency in the
Plan in the manner and to the extent the Board deems necessary or desirable.
Any decision of the

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                                                                              3

Board in the interpretation and administration of the Plan, as described
herein, shall lie within its sole and absolute discretion and shall be final,
conclusive and binding on all parties concerned (including, but not limited to,
Participants and their beneficiaries or successors).

4.       ELIGIBILITY

         All Eligible Directors shall be eligible to participate in the Plan.

5.       VOLUNTARY DEFERRAL OF CASH COMPENSATION

         An Eligible Director may voluntarily elect to defer his or her Cash
Compensation in the following manner:

         (a)      Method of Election. In order to make a voluntary election
                  pursuant to the Plan, the Eligible Director must complete a
                  Deferral Election Form, not later than the commencement date
                  of the Participant's term for which the Cash Compensation to
                  be deferred will be earned (with respect to newly elected
                  Eligible Directors, no later than 30 days after the date on
                  which such Eligible Director commences service as a director
                  of the Company). Notwithstanding the foregoing, no later than
                  30 days following the Effective Date, each Eligible Director
                  may make a voluntary election to defer Cash Compensation
                  pursuant to the Plan. The Deferral Election Form shall
                  designate (i) the Annual Deferral Amount, (ii) the portion of
                  the Annual Deferral Amount that is to be deferred into (A)
                  Deferred Share Units and/or (B) Deferred Cash and (iii) the
                  timing of payments. Such an election shall only be effective
                  with respect to the Cash Compensation earned after the date
                  of the election. Such election shall remain effective for all
                  future terms of service as an Eligible Director unless the
                  Participant revokes the election or makes a new election with
                  respect to a subsequent term.

         (b)      Deferred Share Units. If a Participant elects to defer his or
                  her Annual Deferral Amount into Deferred Share Units, such
                  Participant will have Deferred Share Units credited (as of
                  each date on which his or her Cash Compensation would
                  otherwise have been paid) to the Participant's Deferred
                  Account. The number of Deferred Share Units (including
                  fractional Deferred Share Units) to be credited shall be
                  determined by dividing (i) the amount of Cash Compensation to
                  be deferred into Deferred Share Units by (ii) the Fair Market
                  Value of one Share on the date credited. Deferred Share Units
                  outstanding as of the record date of a dividend on the Shares
                  shall be credited with dividend equivalents when such
                  dividend is paid on the Shares, and such dividend equivalents
                  shall be converted into additional Deferred Share Units based
                  on the Fair Market Value of a Share on the date such dividend
                  is paid.

         (c)      Deferred Cash. If a Participant makes a voluntary election to
                  defer his or her Annual Deferral Amount into Deferred Cash,
                  such Participant will have Deferred Cash credited (as of each
                  date on which his or her Cash

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                                                                              4

                  Compensation would otherwise have been paid) to the
                  Participant's Deferred Account. The amount of Deferred Cash
                  to be credited shall equal the amount of Cash Compensation to
                  be deferred into Deferred Cash. A Participant's Deferred
                  Account shall be credited with additional Deferred Cash on
                  April 30 of each calendar year equal to the amount of
                  notional interest earned on the Deferred Cash in the
                  Participant's Deferred Account. For this purpose, such
                  notional interest shall be earned at the Prime Rate plus two
                  percent (2%).

6.       TIMING AND FORM OF PAYMENT

         Payments in settlement of Deferred Accounts shall be made in cash as
soon as practicable after the date or dates, and in such number of
installments, as may be directed by the Participant in the Participant's
Deferral Election Form. If a Participant has elected to receive installment
payments, the amount of the distribution payable is based upon the value of a
Deferred Account on the installment payment date.

7.       NONTRANSFERABILITY OF DEFERRED ACCOUNTS

         Deferred Accounts shall not be transferable or assignable by the
Participant otherwise than by will or by the laws of descent and distribution.
During the lifetime of a Participant, Deferred Accounts shall be payable only
to such Participant. Deferred Accounts payable after the death of a Participant
shall be paid to the beneficiary designated by the Participant on the Deferral
Election Form; provided, that if no such beneficiary is designated the Deferred
Accounts may be paid to the legatees, personal representatives or distributees
of the Participant.

8.       UNFUNDED PLAN

         The Plan is intended to constitute an unfunded obligation of the
Company, and Participants shall rely solely on the unsecured promise of the
Company for payment hereunder. Nothing contained in the Plan shall give a
Participant any rights that are greater than those of a general unsecured
creditor of the Company. The Company may authorize the creation of a trust or
other arrangements to meet the Company's obligations under the Plan, which
trusts or other arrangements shall be consistent with the unfunded status of
the Plan.

9.       ADJUSTMENTS UPON CERTAIN EVENTS

         In the event of any change in the outstanding Shares after the
Effective Date by reason of any Share dividend or split, reorganization,
recapitalization, merger, consolidation, spin-off, combination or transaction
or exchange of Shares or other corporate exchange, or any distribution to
shareholders of Shares other than regular cash dividends or any transaction
similar to the foregoing, the Board in its sole discretion and without
liability to any person may make such substitution or adjustment, if any, as it
deems to be equitable, to any Deferred Share Units.

10.      SUCCESSORS AND ASSIGNS

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                                                                              5

         The Plan shall be binding on all successors and assigns of the Company
and a Participant, including without limitation, the estate of such Participant
and the executor, administrator or trustee of such estate, or any receiver or
trustee in bankruptcy or representative of the Participant's creditors.

11.      AMENDMENTS OR TERMINATION

         The Board may amend, alter or discontinue the Plan, but no amendment,
alteration or discontinuation shall be made which would reduce the value of any
Participant's Deferred Account without such Participant's consent.

12.      CHOICE OF LAW

         The Plan shall be governed by and construed in accordance with the
laws of the State of New York without regard to conflicts of laws and any and
all disputes between a Participant and the Company or any Affiliate relating to
the Plan shall be brought only in a state or federal court of competent
jurisdiction sitting in Manhattan, New York.

13.      EFFECTIVENESS OF THE PLAN

         The Plan shall be effective as of the Effective Date.

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