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puradyn103845_ex10-13.htm - Generated by SEC Publisher for SEC Filing

 

EXHIBIT 10.13

 

PURADYN
FILTER TECHNOLOGIES INCORPORATED

2010 STOCK
OPTION PLAN

 

 

1.             Grant
of Options; General.  In accordance with the provisions hereinafter set
forth in this stock option plan, the name of which is the Puradyn Filter
Technologies Incorporated 2010 Stock Option Plan (the ‘Plan’), the Board of
Directors (the ‘Board’) or, the Compensation Committee (the ‘Committee’) of
Puradyn Filter Technologies Incorporated (‘the Corporation’) is hereby
authorized to issue from time to time on the Corporations behalf to any one or
more Eligible Persons, as hereinafter defined, options to acquire shares of the
Corporation’s  $.001 par value common stock (the ‘Stock’).

 

2.             Type
of Options.  The Board or the Committee is authorized to issue options
which meet the requirements of Section §422 of the Internal Revenue Code of
1986, as amended (the ‘Code’), which options are hereinafter referred to
collectively as ISOs, or singularly as an ISO.  The Board or the Committee is
also, in its discretion, authorized to issue options which are not ISOs, which
options are hereinafter referred to collectively as NSOs, or singularly as an
NSO.  Except where the context indicates to the contrary, the term ‘Option’ or
‘Options’ mean ISOs and NSOs.

 

3.             Amount
of Stock.  The aggregate number of shares of Stock which may be
purchased pursuant to the exercise of Options shall be 2,000,000 shares.  Of
this amount, the Board or the Committee shall have the power and authority to
designate whether any Options so issued shall be ISOs or NSOs, subject to the
restrictions on ISOs contained elsewhere herein.  If an Option ceases to be
exercisable, in whole or in part, the shares of Stock underlying such Option
shall continue to be available under this Plan.  Further, if shares of Stock
are delivered to the Corporation as payment for shares of Stock purchased by
the exercise of an Option granted under this Plan, such shares of Stock shall
also be available under this Plan.  If there is any change in the number of
shares of Stock on account of the declaration of stock dividends,
recapitalization resulting in stock split-ups, or combinations or exchanges of
shares of Stock, or otherwise, the number of shares of Stock available for
purchase upon the exercise of Options, the shares of Stock subject to any
Option and the exercise price of any outstanding Option shall be appropriately
adjusted by the Board or the Committee ; provided however that the Board or
Committee shall in its sole discretion determine whether such change requires
an adjustment in the aggregate number of shares reserved for issuance under the
Plan or to retain the number of shares reserved and available under the Plan.. 
The Board or the Committee shall give notice of any adjustments to each
Eligible Person granted an Option under this Plan, and such adjustments shall
be effective and binding on all Eligible Persons.  If because of one or more
recapitalizations, reorganizations or other corporate events, the holder of
outstanding Stock receive something other than shares of Stock then, upon
exercise of an Option, the Eligible Person will receive what the holder would
have owned if the holder had exercised the Option immediately before the first
such corporate event and not disposed of anything the holder received as a
result of the corporate event.

 

 

 

 

4.             Eligible
Persons.

 

(a)           With
respect to ISOs, an Eligible Person means any individual who is employed by the
Corporation or by any subsidiary of the Corporation.

 

(b)           With
respect to NSOs, an Eligible Person means:

i.              any
individual who has been employed by the Corporation or by any subsidiary of the
Corporation; 

ii.             any
director of the Corporation or any subsidiary of the Corporation;

iii.            any
member of the Corporation’s advisory board member or of any of the
Corporation’s subsidiary(ies); or 

iv.            any
consultant of the Corporation or by any subsidiary of the Corporation.

 

5.             Grant
of Options.  The Board or the Committee has the right to issue the Options
established by the Plan to Eligible Persons.  The Board or the Committee shall
follow the procedures prescribed for it elsewhere in this Plan.  A grant of
Options shall be set forth in writing signed on behalf of the Corporation or by
a majority of the members of the Committee.  The writing shall identify whether
the Option being granted is an ISO or an NSO and shall set forth the terms
which govern the Option.  The terms shall be determined by the Board or the
Committee, and may include, among other terms, the number of shares of Stock
that may be acquired pursuant to the exercise of the Options, when the Options
may be exercised, the period for which the Option is granted and including the
expiration date, the effect on the Options if the Eligible Person terminated
employment and whether the Eligible Person may deliver shares of Stock to pay
for the shares of Stock to be purchased by the exercise of the Option. 
However, no term shall be set forth in the writing which is inconsistent with
ay of the terms of this Plan.  The terms of an Option granted to an Eligible
Person may differ from the terms of an Option granted to another Eligible
Person, and may differ from the terms of an earlier Option granted to the same
Eligible Person.

 

6.             Option
Price.  The option price per share shall be determined by the Board or the
Committee at the time any Option is granted, and shall be not less than:

 

(a)           In
the case of an ISO , the fair market value,

 

(b)           In
the case of an ISO granted to a 10% or greater stockholder, 110% of the fair
market value, or 

 

(c)           In
the case of an NSO, not less than 75% of the fair market value (but in no event
less than the par value) of one share of Stock on the date the Option is
granted, as determined by the Board or the Committee.  Fair Market Value as
used herein shall be:

i.              If
shares of Stock shall be traded on an exchange or over the counter (OTC)
market, the closing price or the closing bid price of such Stock on such
exchange or OTC market on which such shares shall be traded on that date, or if
such exchange of OTC market is closed or if no shares shall have traded on such
date, on the last preceding date on which such shares shall have traded.

ii.             If
shares of Stock shall not be traded on an exchange or OTC market, the value as
determined by the Board of Directors or the Committee of the Corporation.

 

2

 

 

 

7.             Purchase
of Shares.  An Option shall be exercised by the tender to the
Corporation of the full purchase price of the Stock with respect to which the
Option is exercised and written notice of the exercise.  The purchase price of
the Stock shall be in United States dollars, payable in cash or by check, or in
property or Corporation stock, if so permitted by the Board or the Committee in
accordance with the discretion granted in Paragraph 5 hereof, having a value
equal to such purchase price. The Corporation shall not be required to issue or
deliver any certificates for shares of Stock purchased upon the exercise of an
Option prior to:

 

(a)           If
requested by the Corporation, the filing with the Corporation by the Eligible
Person of a representation in writing this is the Eligible Persons’ then
present intention to acquire the Stock being purchased for investment and not
for resale, and/or 

 

(b)           The
completion of any registration or other qualification of such shares under any
government regulatory body, which the Corporation shall determine to be
necessary or advisable.

 

8.             Compensation
Committee.  The Committee may be appointed from time to time by the
Corporation’s Board of Directors.  The Board may from time to time remove
members from or add members to the Committee.  The Committee shall be
constituted so as to permit the Plan to comply in all respects with the
provisions set forth in Paragraph 19 herein.  The members of the Committee may
elect one of its members as its chairman.  The Committee shall hold its
meetings at such times and places as its chairman shall determine.  A majority
of the Committee’s members present in person shall constitute a quorum for the
transaction of business.  All determinations of the Committee will be made by
the majority vote of the members constituting the quorum.  The members may
participate in a meeting of the Committee by conference telephone of similar
communications equipment by means of which all members participating in the
meeting can hear each other.  Participation in a meeting in that manner will
constitute presence in person at the meeting.  Any decision or determination
reduced to writing and signed by all members of the Committee will be effective
as if it had been made by a majority vote of all members of the Committee at a
meeting which is duly called and held.

 

9.             Administration
of Plan.  In addition to granting Options and to exercising the
authority granted to it elsewhere in this Plan, the Board or the Committee is
granted the full right and authority to interpret and construe the provisions
of this Plan, promulgate, amend and rescind rules and procedures relating to
the implementation of the Plan and to make all other determinations necessary
or advisable for the administration of the Plan, consistent, however, with the
intent of the Corporation that Options granted or awarded pursuant to the Plan
comply with the provisions of Paragraph 19.  All determinations made by the
Board or the Committee shall be final, binding and conclusive on all persons
including the Eligible Person, the Corporation and its stockholders, employees,
officers and directors and consultants.  No member of the Board or the
committee will be liable for any act or omission in connection with the
administration of the Plan unless it is attributable to that member’s willful
misconduct.

 

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10.           

	
Provisions Applicable to ISOs.  The following provisions shall apply to all ISOs granted by the Board or the Committee and are incorporated by reference into any writing granting and ISO:

	
 

	
 

	
           

	
 

	
 

	
(a)           

	
An ISO may only be granted within ten (10) years from July 29, 2010, the date that this Plan was originally adopted by the Corporation’s Board of Directors.

	
 

	
 

	
 

	
 

	
 

	
(b)

	
An ISO may not be exercised after the expiration of ten (10) years from the date the ISO is granted.

	
 

	
 

	
 

	
 

	
 

	
(c)

	
The option price may not be less than the FMV of the Stock at the time the ISO is granted.

	
 

	
 

	
 

	
 

	
 

	
(d)

	
An ISO is not transferrable by the Eligible Person to whom it is granted except by will, or the laws of descent and distribution, and is exercisable during his or her lifetime only by the Eligible Person.

	
 

	
 

	
 

	
 

	
 

	
(e)

	
If the Eligible Person receiving the ISO owns at the time of the grant stock possessing more than ten (10%) percents of the total combined voting power of all classes of stock of the employer corporation or of its parent or subsidiary corporation (as those terms are defined in the Code), then the option price shall be at least 110% of the FMV of the Stock, and the ISO shall not be exercisable after the expiration of five (5) years from the date the ISO is granted.

	
 

	
 

	
 

	
 

	
 

	
(f)

	
The aggregate FMV (determined at the time the ISO is granted) of the Stock with respect to which the ISO is first exercisable by the Eligible Person during any calendar year (under this Plan and any other incentive stock option plan of the Corporation) shall not exceed $100,000.

	
 

	
 

	
 

	
 

	
 

	
(g)

	
Even if the shares of Stock which are issued upon exercise of an ISO are sold within one year following the exercise of such ISO so that the sale constitutes a disqualifying disposition for ISO treatment under the Code, no provision of this Plan shall be construed as prohibiting such a sale.

	
 

	
 

	
 

	
 

	
 

	
(h)

	
This Plan was adopted by the Corporation July 29, 2010, by virtue of its approval by the Corporation’s Board of Directors, subject to the following provisions:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)     to the extent that the Plan authorizes the Award of an ISO, stockholder approval for the Plan shall be obtained within 12 months of the Effective Date; and

	
 

	
 

	
 

	
 

	
 

	
(2)     the failure to obtain stockholder approval for the Plan as contemplated by subparagraph (h)(1) of this Section 10 shall not invalidate the Plan; provided, however, that (i) in the absence of such stockholder approval, ISOs may not be awarded under the Plan and (ii) any ISO theretofore awarded under the Plan shall be converted into NSOs upon terms and conditions determined by the Committee to reflect, as nearly as is reasonably practicable in its sole determination, the terms and conditions of the ISO being so converted.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
11.

	
Determination of Fair Market Value.  In granting ISOs under this Plan, the Board or the Committee shall make a good faith determination as to the FMV of the Stock at the time of granting the ISO.

 

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12.          Restrictions
on Issuance of Stock.  The Corporation shall not be obligated to sell
or issue any shares of Stock pursuant to the exercise of an Option unless the
Stock with respect to which the Option is being exercised is at that time
effectively registered or exempt from registration under the Securities Act of
1933, as amended, and any other applicable laws, rules and regulation.  The
Corporation may condition the exercise of an Option granted in accordance
herewith upon receipt from the Eligible Person, or any other purchaser thereof,
of a written representation that at the time of such exercise it is his or her
then-present intention to acquire the shares of Stock for investment and not
with a view to, or for sale in connection with, any distribution thereof;
except that, in the case of a legal representative of an Eligible Person,
‘distribution’ shall be defined to exclude distribution by will or under the
laws of descent and distribution.  Prior to issuing any shares of Stock
pursuant to the exercise of an Option, the Corporation shall takes such steps
as it deems necessary to satisfy any withholding tax obligations imposed upon
it by any level of government.

 

13.          Exercise in the
Event of Death or Termination of Employment.   

 

(a)           If
an optionee shall die:

i.              While
an employee of the Corporation or a subsidiary, or

ii.             Within
three months after termination of his employment with the Corporation or a
subsidiary because of his/her disability, or retirement or otherwise, his/her
Options may be exercised, to the extent that the optionee shall have been
entitled to do so on the date of his death or such termination of employment,
by the person or persons to whom the optionee’s right under the Option pass by
will or applicable law, or if no such persona has such right, by his executors
or administrators, at any time, or from time to time.  In the event of termination
of employment because of his/her death while an employee or because of
disability, his/her Options may be exercised not later than the expiration date
specified in Paragraph 5 or one year after the optionee’s death, whichever date
is earlier, or in the event of termination of employment because of retirement
or otherwise, not later than the expiration date specified in Paragraph 5
hereof or one year after the optionee’s death, whichever date is earlier.

 

(b)           If
an optionee’s employment by the Corporation or a Subsidiary shall terminate
because of his disability and such optionee has not died within the following
three months, he may exercise his Options, to the extent that he shall have
been entitled to do so at the date of the termination of his employment, at any
time, or from time to time, but not later than the expiration date specified in
Paragraph 5 hereof or one year after termination of employment, whichever date
is earlier.

 

(c)           If
an optionee’s employment shall terminate by reason of his/her retirement in
accordance with the terms of the Corporation’s tax-qualified retirement plans
or with the consent of the Board or the Committee or involuntarily other than
by termination for cause,  and such optionee has not died within the following
three months, he may exercise his Option to the extent he shall have been
entitled to do so at the date of the termination of his employment, at any time
and from to time, but not later than the expiration date specified in Paragraph
5 hereof or thirty (30) days after termination of employment, whichever date is
earlier.  For purposes of this Paragraph 13, termination for cause shall mean
termination of employment by reason of the optionee’s commission of a felony,
frauds or willful misconduct which has resulted, or is likely to result, in
substantial and material damage to the Corporation or a Subsidiary, all as the
Board or the Committee in its sole discretion may determine.

 

5

 

 

 

(d)           If
an optionee’s employment shall terminate for any reason other than death,
disability, retirement or otherwise, all right to exercise his Option shall
terminate at the date of such termination of employment.

 

14.          Corporate
Events.  In the event of the proposed dissolution or liquidation of the
Corporation, a proposed sale of all or substantially all of the assets of the
Corporation, a merger or tender for the Corporation’s shares of Common Stock
the Board of Directors shall declare that each Option granted under this Plan
shall terminate as of a date to be fixed by the Board of Directors; provided
that not less than thirty (30) days written notice of the date so fixed shall
be given to each Eligible Person holding an Option, and each such Eligible
Person shall have the right, during the period of thirty (30) days preceding
such termination, to exercise his Option as to all or any part of the shares of
Stock covered thereby, including shares of Stock as to which such Option would
not otherwise be exercisable.  Nothing set forth herein shall extend the term
set for purchasing the shares of Stock set forth in the Option.  

 

15.          No
Guarantee of Employment.  Nothing in this Plan or in any writing
granting an Option will confer upon any Eligible Person the right to continue
in the employ of the Eligible Person’s employer, or will interfere with or
restrict in any way the right of the Eligible Person’s employer to discharge
such Eligible Person at any time for any reason whatsoever, with or without
cause.

 

16.          Non-transferability. 
No Option granted under the Plan shall be transferable other than by will or by
the laws of descent and distribution.  During the lifetime of the optionee, an
Option shall be exercisable only by him.

 

17.          No
Rights as Stockholder.  No optionee shall have any rights as a
stockholder with respect to any shares subject to his Option prior to the date
of issuance to him of a certificate or certificates for such shares.

 

18.          Amendment
and Discontinuance of Plan.  The Corporation’s Board of Directors may
amend, suspend or discontinue this Plan at any time.  However, no such action
may prejudice the rights of any Eligible Person who has prior thereto been
granted Options under this Plan.  Further, no amendment to this Plan which has
the effect of 

 

(a)           Increasing
the aggregate number of shares of Stock subject to this Plan (except for
adjustments pursuant to Paragraph 3 herein), or

 

(b)           Changing
the definition of Eligible Person under this Plan, may be effective unless and
until approval of the stockholders of the Corporation is obtained in the same
manner as approval of this Plan is required.  The Corporation’s Board of
Directors is authorized to seek the approval of the Corporation’s stockholders
for any other changes it proposes to make to this Plan which require such
approval, however, the Board of Directors may modify the Plan, as necessary, to
effectuate the intent of the Plan as a result of any changes in the tax,
accounting or securities laws treatment of Eligible Persons and the Plan,
subject to the provisions set forth in this Paragraph 18 and Paragraph 19.

 

6

 

 

 

19.          Compliance
with Code.  The aspects of this Plan on ISOs are intended to comply in
every respect with Section 422 of the Code and the regulations promulgated
hereunder.  In the event any future statute or regulation shall modify the
existing statute, the aspects of this Plan on ISOs shall be deemed to
incorporate by reference such modification.  Any stock option agreement
relating to any Option granted pursuant to this Plan outstanding and
unexercised at the time any modifying statute or regulation becomes effective shall
also be deemed to incorporate by reference such modification and no notice of
such modification need by given to optionee.

 

If any
provision of the aspects of this Plan on ISOs is determined to disqualify the
shares purchasable pursuant to the Options granted under this Plan from the
special tax treatment provided by Code Section 422, such provision shall be
deemed null and void and to incorporate by reference the modification required
to qualify the shares for said tax treatment.

 

20.          Compliance
with Other Laws and Regulations.  The Plan, the grant and exercise of
Options thereunder, and the obligation of the Corporation to sell and deliver
Stock under such options, shall be subject to all applicable federal and state
laws, rules, and regulations and to such approvals by any government or
regulatory agency as may be required.  The Corporation shall not be required to
issue or deliver any certificates for shares of Stock prior to

 

(a)           The
listing of such shares on any stock exchange or over-the-counter market on
which the Stock may then be listed and

 

(b)           The
completion of any registration or qualification of such shares under any
federal or state law, or any ruling or regulation of any government body which
the Corporation shall, in its sole discretion, determine to be necessary or
advisable.  Moreover, no Option may be exercised if its exercise or the receipt
of Stock pursuant thereto would be contrary to applicable laws.

 

21.          Disposition
of Shares.  In the event any share of Stock acquired by an exercise of
an ISO granted under the Plan shall be transferable other than by will or by
the laws of descent and distribution within two years of the date such ISO was
granted or within one year after the transfer of such Stock pursuant to such
exercise, the optionee shall give prompt written notice thereof to the
Corporation or the Committee.  

 

22.          Name. 
The Plan shall be known as the ‘Puradyn Filter Technologies Incorporated 2010
Stock Option Plan.’

 

23.          Notices. 
Any notice hereunder shall be in writing and sent by certified mail, return
receipt requested or by facsimile transmission (with electronic or written
confirmation of receipt) and when addressed to either the Corporation or the
Committee shall be sent to it at the Corporation’s main office, 2017 High Ridge
Road, Boynton Beach, FL 33426,  subject to the right of either party to
designate at any time hereafter in writing some other address, facsimile number
or  person to whose attention such notice shall be sent.

 

7

 

 

 

24.          Headings.  The headings preceding the text of Sections and subparagraphs hereof are inserted solely for convenience of reference, and shall not constitute a part of this Plan nor shall they affect its meaning, construction or effect.

 

25.          Effective Date.  This Plan, the Puradyn Filter Technologies Incorporated 2010 Stock Option Plan, was adopted by the Board of Directors of the Corporation on July 29, 2010.  The effective date of the Plan shall be the same date.

 

26.          Governing Law.  The Plan, and all Option agreements issued under the Plan, shall be governed by, and construed in accordance with, the laws of the State of Florida.

 

Dated as of July 29, 2010

 

 

 

 

	
 

	
Puradyn Filter Technologies Incorporated

	
 

	
 

	
  

	
/s/  Joseph V. Vittoria

	
 

	
By:

	
Joseph V. Vittoria

	
 

	
Its:

	
Chairman and Chief Executive Officer

 

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EXHIBIT 10.51
 

 
 
April 6, 2010
 
Michael R. Tyler
2700 North First Street 
San Jose, CA 95134
 
Dear Mike:
 
This letter will further amend the addendum dated as of February 28, 2007, as amended (the “Addendum”) to the letter offer of employment to you from Sanmina-SCI, dated as of February 23, 2007. The purpose of this amendment is to make additional changes necessary or desirable under Section 409A of the Internal Revenue Code. Section 4 of the Addendum shall be further amended as follows (new text shown underlined):
 
“4.     If your employment is terminated by Sanmina-SCI without “cause”, or if you leave the Company for “good reason,” as the term “cause” has been previously defined between you and Sanmina-SCI, and “good reason” is defined in the safe harbor provisions in Treas. Reg. § 1.409A-1(n) (2), as amended, then you will receive twelve months of salary continuation, upon execution by you, of an Agreement and General Release within 30 days of the date of termination. If, as of the date of termination, the Company determines you are a “specified employee” within the meaning of Section 409A of the Internal Revenue Code and the rules and regulations promulgated thereunder, then, to the extent required by Section 409A and such rules and regulations, such payments shall be delayed until six months following the date of termination of your employment with the Company.”
All other provisions of the Addendum shall remain unchanged.
 
		
	 
	Very truly yours,

	 
	 

	 
	SANMINA-SCI CORPORATION

	 
	 

	 
	/s/ Wayne Shortridge

	 
	Wayne Shortridge

	                                                                                 
	Chairman, Compensation Committee of the Board

 
AGREED AND ACKNOWLEDGED:
 
/s/ Michael R. Tyler
Michael R. Tyler

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