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Unassociated Document

     

    EXHIBIT
      10.1

    

    NONQUALIFIED
      STOCK OPTION AGREEMENT

    ALLION
      HEALTHCARE, INC.

    AMENDED
      AND RESTATED 2002 STOCK INCENTIVE PLAN

     

    [Date]

     

    

    [Name]

    

    Dear
      [Name]:

    

    This
      Agreement confirms the grant of an option to you effective [______] (the “Grant
      Date”) under the Allion Healthcare, Inc. Amended and Restated 2002 Stock
      Incentive Plan (the “Plan”), upon the terms and conditions described herein. A
      copy of the Plan is being furnished to you concurrently with the execution
      of
      this Agreement.

     

    1. Grant
      of Option.
      Pursuant to action of the Committee under the Plan, Allion Healthcare, Inc.
      (the
“Company”) hereby grants to you a nonqualified option to purchase (hereinafter
      called the “Option”), subject to the provisions of the Plan and to the terms and
      conditions hereinafter set forth, an aggregate of [_____] shares of the Common
      Stock of the Company (the “Shares”) at a per share purchase price equal to
      $[____]) (the “Exercise Price”). The Option is not intended to qualify as an
      Incentive Stock Option within the meaning of the Plan. This grant is a matter
      of
      separate inducement and is not in lieu of salary or other compensation for
      your
      services.

     

    2. Vesting
      and Exercisability.

     

    (a) Unless
      accelerated pursuant to paragraph (b) below, this Option shall become vested
      and
      exercisable with respect to ____% of the Shares on [_____________]; provided
      that you are still employed by the Company on each such vesting
      date.

     

    (b) Upon
      the
      occurrence of a Change in Control, the Committee may determine, in its sole
      discretion, that all or a portion of the Option shall become vested and
      exercisable, either upon the Change in Control or at such other time or times
      as
      the Committee determines. 

     

    3. Exercise
      Requirements and Term.
      

     

    (a) If
      fewer
      than the number of Shares then available for purchase pursuant to the Option
      are
      purchased at any time under this Agreement, you may purchase the remaining
      Shares at any subsequent time during the term of the Option. The Option shall
      not be exercised for fractional shares. Notation of any partial exercise will
      be
      made by the Company on Schedule 1 hereto.

     

    (b) The
      Option is exercisable by you only while you are in the employ of, or providing
      service to, the Company or its subsidiaries as an employee, member of the Board
      or independent consultant, except as otherwise provided in section 3(c) below.
      

     

    (c) The
      term
      of the Option shall expire, and it shall cease to be exercisable, on the tenth
      anniversary of the Grant Date (the “Expiration Date”). To the extent not
      previously exercised, the Option will lapse prior to the Expiration Date upon
      the earliest to occur of the following dates:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i) Ninety
      (90) days after your employment or service with the Company ceases for any
      reason other than (i) for Cause, or (ii) by reason of your death or
      Disability.

     

    (ii)
       One
      (1)
      year after your employment or service with the Company ceases by reason of
      Disability.

     

    (iii) One
      (1)
      year after your death after your employment or service with the Company ceases
      by reason of your death. 

     

    (iv) 5:00
      p.m.
      Eastern Time, on the date your employment or service with the Company ceases
      by
      reason of Cause.

     

    4. Method
      of Exercise and Payment.
      

     

    (a) The
      Option shall be exercised by written notice, in a form substantially as attached
      to this Agreement as Schedule A, delivered or mailed to the Secretary of the
      Company at its principal office and specifying the number of Shares as to which
      the Option is being exercised and identifying the Option by date of grant.
      Payment for such Shares shall be (i) in cash or by certified check, (ii) by
      delivery of whole shares of Common Stock owned by you for at least six months
      (“Optionee Stock”) in full or partial payment of the Exercise Price, or (iii)
      any combination thereof. The value of surrendered Shares for this purpose will
      be equal to the Fair Market Value, calculated as provided in the Plan, of such
      Optionee Stock as of the close of the business day immediately preceding the
      date of delivery of the notice of election to exercise the Option. Any Optionee
      Stock being delivered must be accompanied by a duly executed assignment to
      the
      Company in blank or with stock powers attached, together with a written
      representation that such shares of Optionee Stock are owned by you free and
      clear of all liens, claims and encumbrances and such other representations
      as
      the Company shall determine. Only whole shares of Optionee Stock with a Fair
      Market Value up to, but not exceeding, the Exercise Price of the Shares as
      to
      which the Option is being exercised will be accepted hereunder. Delivery of
      the
      Shares of Optionee Stock may be made at the office of the Company or at the
      offices of the transfer agent appointed for the transfer of shares of the
      Company. The Committee may, in its discretion, refuse to accept any tendered
      payment in the form of Shares, in which case it shall deliver the tender back
      to
      you and notify you of its refusal. In order to preserve your rights under any
      Option, you must, within three business days after such notification, tender
      to
      the Company the cash or certified check required to pay for the Shares with
      respect to which such Option is being exercised. 

     

    (b) It
      shall
      be a condition to the Company’s obligation to deliver Common Stock upon exercise
      of any portion of the Option that you pay, or make provisions satisfactory
      to
      the Company, for the payment of any taxes which the Company or any subsidiary
      is
      obligated to withhold or collect with respect to such exercise or otherwise
      with
      respect to the Option.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    5. Transferability.
      Your
      rights under the Option may not be transferred or encumbered by you, except
      by
      will or the laws of descent and distribution, and this Option may be only
      exercised by you during your lifetime. 

     

    6. Registration.
      The
      exercise of this Option and the delivery of Shares hereunder will be subject
      to
      the completion of any registration or qualification of the Option or the Shares
      under state or federal securities laws, the requirements of any stock exchange
      or similar organization, or under any ruling or regulation of any governmental
      body or national securities exchange that the Company determines to be
      applicable.

     

    7. Restrictions
      on Shares.
      You
      agree that, in connection with any registration of the Company's securities,
      upon the request of the Company or the underwriters managing any public offering
      of the Company's securities, you will not sell or otherwise dispose of any
      Shares without the prior written consent of the Company or such underwriters,
      as
      the case may be, for such period of time (not to exceed 180 days) after the
      effective date of such registration requested by such managing underwriters
      and
      subject to all restrictions as the Company or the underwriters may
      specify.

     

    8. Incorporation
      of Plan Provisions.
      This
      Agreement is made pursuant to the Plan and is subject to all the terms and
      provisions of the Plan as if the same were fully set forth herein. Capitalized
      terms not otherwise defined herein shall have the meanings set forth for such
      terms in the Plan. In the event of any actual or alleged conflict between the
      provisions of the Plan and the provisions of this Agreement, the provisions
      of
      the Plan shall be controlling and determinative.

     

    9. Limitation
      of Rights.
      You
      shall not be, nor have any of the rights or privileges of, a shareholder of
      the
      Company in respect of any Shares purchasable upon the exercise of the Option,
      including any rights regarding voting or payment of dividends, unless and until
      a certificate representing such Shares has been delivered to you. Nothing in
      this Agreement shall interfere with or limit in any way the right of the Company
      or any affiliate to terminate your employment or service at any time, nor confer
      upon you any right to continue in the employ or service of the Company or any
      affiliate.

     

    10. Miscellaneous.
      This
      Agreement: (a) shall be binding upon and inure to the benefit of any successor
      of the Company and your successors, assigns and estate, including your
      executors, administrators and trustees; (b) shall be governed by the laws of
      the
      State of Delaware and any applicable laws of the United States; and (c) may
      not
      be amended except in writing and signed by both parties hereto.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    To
      confirm your acceptance of the foregoing, please sign and return one copy of
      this Agreement to Michael P. Moran, Allion Healthcare, Inc.

    
      	 	 	 
	 	ALLION
              HEALTHCARE,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Michael
              P. Moran
	 	Chairman,
              Chief
              Executive Officer and President

    

     

    

    ACCEPTED
      AND AGREED:

     

    
      
        

      

    

     

    Date:
      ___________________   

     

      

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    SCHEDULE
      A

     

    NONQUALIFIED
      STOCK OPTION EXERCISE FORM

     

     

    
      	 	 	 
	 	 	
              (Date)

            
	 	 	 
	Allion Healthcare, Inc.	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Attention: James G. Spencer,
              Secretary	 	 
	 	 	 

    

     

    Dear
      Sir/Madam:

     

    The
      undersigned elects to exercise the Option to purchase ______ shares of the
      Common Stock of Allion Healthcare, Inc. (the “Company”) under and pursuant to
      the NonQualified Stock Option Agreement (the “Agreement”) between the Company
      and the undersigned dated as of _________.

     

    Delivered
      herewith in payment of the option price is: (1) a
      certified check in the amount of $_________; and/or (2) certificates for ___
      shares of common stock of the Company, valued at $_________ with appropriate
      stock powers attached thereto, which shares have been owned by the undersigned
      for at least six months and are free and clear of all liens, claims and
      encumbrances.

     

    I
      hereby
      authorize the Company or any subsidiary corporation by which I am serving to
      withhold from any cash compensation paid to me, or in my behalf, an amount
      sufficient to discharge any Federal, State and local wage withholding taxes
      imposed on the Company, or the subsidiary corporation by which I am employed,
      in
      respect of my exercise of the Option. I agree that the Company, or the
      subsidiary corporation by which I am employed, may, in its discretion, hold
      the
      stock certificate to which I am entitled upon exercise of the Option, as
      security for the payment of the aforementioned withholding tax liability, until
      cash sufficient to pay that liability has been accumulated.

     

     

    
      	 	 	 
	 	 	 
	 	 	Optionee

    

    

    

 

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    SCHEDULE
      1

    NOTATION
      AS TO PARTIAL EXERCISE

    

    
      	
               

              Date
                of

              Exercise

            	 	
              Number
                of

              Shares

              Purchased

            	 	
              Balance
                of

              Shares
                on

              Option

            	 	
              Company
                Secretary

              or
                Ass’t. Secretary

              Signature

            	 	
               

              Notation

              Date

            
	 	 	 	 	 	 	 	 	 

    

    

    
      
         

      

        6April
      11,
      2006

    

    YouthStream
      Acquisition Corp.

    c/o
      YouthStream Media Networks, Inc. 

    244
      Madison Avenue, PMB #358

    New
      York,
      New York 10016

    

    Gentlemen:

     

    KES
      Holdings, LLC, a Delaware limited liability company (“KESH”)
      is the
      holder of that certain 8% subordinated secured promissory note issued by
      YouthStream Acquisition Corp., a Delaware corporation (the “Company”)
      in the
      original principal amount of $19 million (the “KESH
      Note”)
      and
      Atacama Capital Holdings, Ltd., a British Virgin Islands company (“Atacama,”)
      is
      the holder of that certain 8% subordinated secured promissory note issued by
      the
      Company in the original principal amount of $21 million (the “Atacama Note” and
      collectively with the KESH Note, the “Notes”).
      The
      Notes were issued in conjunction with the acquisition by the Company of (i)
      a
      37.45% membership interest in KES Acquisition Company, LLC, a Delaware limited
      liability company (“KESA”),
      from
      KESH and (ii) all of the stock of Atacama KES Holding Corporation, a Delaware
      corporation, from Atacama. Each of the Notes were previously modified by a
      letter agreement dated July 14, 2005, effective February 28, 2005 (the
“Modification Letter”). 

    

    The
      parties hereto agree that the Company’s delivery of the promissory notes annexed
      hereto to KESH and Atacama shall be deemed to be payment in full of accrued
      interest that was due on the First Interest Payment Date (as such term is
      defined in the Modification Letter) and that the payment of interest in such
      manner is hereby consented to and accepted by each of the parties hereto.
      Furthermore, each of the parties hereto confirms that no “Event of Default”, as
      that term is defined in the Note Purchase Agreement dated February 25, 2005
      (the
“Note
      Purchase Agreement”),
      has
      occurred, and that KESH
      and
      Atacama each agree that they shall not be entitled to, nor will they, commence,
      prosecute or participate in any remedies on default as contemplated in Section
      12 of the Note Purchase Agreement based on the foregoing.
      

     

    Payment
      of interest for periods subsequent to the date hereof shall continue to be
      due
      and payable in accordance with the terms of the Notes, as modified by the
      Modification Letter. 

     

    This
      Agreement shall be deemed to be effective for all purposes as of February 27,
      2006.

    

    Except
      as
      expressly provided herein, each of the Notes remain in full force and effect.
      

    

    

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
         

      

      
         

        
          

        

      

      
         

        YouthStream
          Acquisition Corp.

        April
          11,
          2006

        Page
          -2-

        

      

    

     

    
      	 	 	 
	 	KES
              HOLDINGS, LLC
	 
 	 
 	 
 
	 	By:  	Libra/KES
              Investment I, LLC
	 	Its: 	Manager
	 	
            

    

    

      	 	 	 
	 	By:  	/S/
              JESS M. RAVICH 
	 	
              
Jess
              M. Ravich
	 	Authorized
              Signatory

    

     

    
      	 	 	 
	 	ATACAMA
              CAPITAL HOLDINGS, LTD.
	 
 	 
 	 
 
	 	By:  	/S/
              GWENYTH VANTERPOOL 
	 	
              
Name:
              Gwenyth Vanterpool for Westlaw
              Limited
	 	Title:
              Director 

    

     

    
      	 	 	 
	 	
              Accepted
                and Agreed to as of the 11th
                day of April 2006: 

               

            
	 	 
	 	
              YOUTHSTREAM ACQUISITION
                CORP.

            
	 
 	 
 	 
 
	 	By:  	/S/
              ROBERT N. WEINGARTEN 
	 	
              
Robert
              N. Weingarten
	 	
              Chief
                Financial Officer

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