Document:

a6232804ex10_29.htm

Exhibit 10.29

 

 

FOUR OAKS FINCORP, INC.

 

STOCK OPTION PLAN

 

STOCK OPTION AGREEMENT

This Option Agreement is made as of the _____ day of _____________, 20___, by and between Four Oaks Fincorp, Inc., a North Carolina business corporation  (the “Company”) , and ________________, an employee of the Company (the “Employee”).

The Company desires to carry out the purpose of its Stock Option Plan (the “Plan”) by affording the Employee an opportunity to purchase shares of its common stock, par value one dollar ($1.00) per share (the “Common Stock”), as provided in this Agreement.

NOW, THEREFORE, in consideration of the mutual convenience set forth in this Agreement and for other good and valuable consideration, the Company and the Employee have agreed, and do by this Agreement agree, as follows:

1.           Grant of Option.  The Company by this Agreement irrevocably grants to the Employee the right and option (the “Option”) to purchase _____________________ (_______) shares of Common Stock (such number being subject to adjustment as provided in Paragraph 7 of this Agreement) on the terms and conditions set forth in this Agreement.

2.           Purchase Price.  The purchase price of the shares of the Common Stock covered by this Option shall be _______________________________ per share.

3.           Term of Option.  The term of the Option shall be for a period of [three (3)] [four (4)] [five (5)] years from the date of this Agreement, subject to earlier termination as provided in Paragraphs 5,6,8, and 10 of this Agreement.  The Option shall not be exercisable before the ___________ anniversary of the date of this Agreement.  The purchase price of the shares of Common Stock as to which the Option shall be exercised shall be paid in full in cash at the time of exercise. Except as provided in Paragraphs 5 and 6 of this Agreement, the Option may not be exercised at any time unless the Employee shall be in the Company’s continuous employment from the date of this Agreement to the date of the exercise of the Option.  The Employee as holder of the Option shall not have any of the rights of a shareholder with respect to the shares of Common Stock covered by the Option except to the extent that one or more certificates for such shares shall be issued to [him] [her] upon the due exercise of the Option and payment of the purchase price and the Company shall not make adjustments for dividends or other rights for which the record date is before the date the Company issues the certificates representing such shares.

 

  

  

  

4.           Nontransferability.  The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and during the lifetime of the Employee only [he] [she] may exercise the Option.  More particularly (but without limiting the generality of the foregoing), the Option may not be assigned, transferred (except as provided above) pledged or hypothecated in any way, shall not be assignable by operation of law and shall not be subject to execution, attachment, or similar processes.  Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions of this Agreement and the levy of any execution, attachment, or similar process upon the Option shall be null and void and without effect.

5.           Termination of Employment.  In the event of any termination of the Employee’s employment that is either (a) for cause, or (b) voluntary on the part of the Employee and without the Company’s written consent, the Option shall (except to the extent exercised before termination of the Employee’s employment) immediately terminate.  “Cause” means (a) criminal conviction for fraud, embezzlement, misappropriation or the like, (b) misconduct involving moral turpitude or (c) a failure to perform the Employee’s duties faithfully, diligently competently and to the best of [his] [her] ability for reasons other than serious physical disability or other incapacity, as determined in the Committee’s sole discretion  Retirement in accordance with the Company’s normal retirement policies or termination of employment in the event of disability as determined in the Committee’s sole discretion, shall not be deemed to be voluntary on the part of the Employee.

In the event that the Employee’s employment shall otherwise terminate (except by reason of [his] [her] death) the Employee may exercise the Option (to the extent [he] [she] is entitled to do so at the termination of employment) at any time within fifteen (15) months after such termination but not more than [three (3)] [four (4)] [five (5)] years after the date of this Agreement; provided, however, the Option may not be exercised if the Option was previously terminated pursuant to the provisions of Paragraph 8 of the Agreement.  So long as the Employee shall continue to be an employee of the Company the Option shall not be affected by any change in [his] [her] duties or position.  Nothing in this Agreement shall confer upon the Employee any right to continue in the Company’s employment or interfere in any way the Company’s right to terminate [his] [her] employment at any time.

6.           Death of employee.  If the Employee shall die while [he] [she] shall be employed by the Company or shall die within fifteen (15) months after the termination of [his] [her] employment, the Option may be exercised (to the extent that the Employee was entitled to do so at [his] [her] death) by any legatee of the Option under the Employee’s will, by the Employee’s personal representative or by any distributes of the Option any time within fifteen (15) months after [his] [her] death, but not more than [three (3)] [four (4)] [five (5)] years after the date of this Agreement; provided, however, the Option may not be exercised if the Option was previously terminated pursuant to the provision of Paragraph 5 or 8 of this Agreement.

 

  

  

  

7.           Changes in Capital Structure.  Subject to the provisions of Paragraph 8 of this Agreement, if all or any portion of the Option shall be exercised after any stock dividend, split-up, recapitalization, merger, consolidation, combination or exchange of shares, separation, reorganization, or liquidation occurring after the date of this Agreement, as a result of which shares of any class shall be issued in respect of outstanding shares of Common Stock, or shares of Common Stock shall be changed into the same or a different number of shares of the same or another class or classes, the person who exercises the Option shall receive, for the aggregate price paid upon such exercises, the aggregate number and class of shares which, if shares of Common Stock (as authorized at the date of this Agreement) had been purchased by the person as of the date of this Agreement for the same aggregate price (on the basis of the price per share set forth in Paragraph 2) and had not been disposed of, such person would be holding, at the time of such exercise, as a result of such purchase and all such dividend, split-ups, recapitalizations, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations, or liquidations, provided, however, that no fractional share shall be issued upon any such exercise, and the aggregate price paid shall be appropriately reduced to account for any fractional share not issued.

8.           Termination of Option on Merger or Sale of Assets.  A liquidation of the Company, a merger or consolidation in which the Company is not the surviving or resulting corporation or a sale of all or substantially all of the Company’s assets shall cause the Option to the extent outstanding to terminate on the effective date of such action.  Notwithstanding the preceding sentence, upon a liquidation of the Company, a merger or consolidation in which the Company is not the surviving or resulting corporation or a sale of all or substantially all of the Company’s assets, the Employee shall have the right, within [his] [her] sole discretion and without regard to the provision of Paragraph 3 making the Option exercisable only on or after the ______________ anniversary of the date of this Agreement to exercise the Option before the effective date of such action to the extent [he] [she] shall not have already exercised the Option.  To the extent not so exercised the Option shall terminate on the effective date of such action.

9.           Method of Exercising Option.  Subject to the terms and conditions of this Agreement, the option may be exercised by written notice to the Company. Such notice shall state the election to exercise the Option and the number of shares in respect of which is being exercised and shall be signed by the person who shall exercise the Option.  Such notice shall either (a) be accompanied by payment of the full purchase price of such shares, in which event the Company shall deliver a certificate or certificates representing such shares as soon as practicable after notice shall be received; or (b) fix a date (not less than five (5) nor more than fifteen (15) business days from the date such notice shall be received by the Company) for the payment of the full purchase price of such shares against delivery of a certificate or certificates representing such shares.  A certificate or certificates for the shares as to which the Option shall have been so exercised shall be registered in the name of the person who shall exercise the Option, and shall be delivered as provided above to or upon the written order of the person who shall exercise the Option.  As a condition to the issuance of the shares as to which the Option shall be exercised, the Employee authorizes the Company to withhold from any regular cash compensation payable to

[him] [her] any taxes required to be withheld by the Company under Federal, North Carolina or other local law as a result of the exercise of the Option; provided, however, if the Company so requests, the person who shall exercise the Option shall in the alternative remit to the Company at the time of any exercise of the Option any taxes required to be withheld by the Company under Federal, North Carolina or other local law as a result of the exercise of the Option.  In the event the Option shall be exercised pursuant to Paragraph 6, by any person other than the Employee, the notice of exercise shall be accompanied by appropriate proof of the right of such person to exercise the Option.  All shares that shall be purchased in the exercise of the Option shall be fully paid and non-assessable.

 

  

  

  

10.           Forfeiture.  If the sum of (a) the number of shares of Common Stock purchased by the Employee under the Company’s Employee Stock Purchase and Bonus Plan and (b) the number of shares of Common Stock available to the Employee under the plan, exceeds 40 percent of the sum of (a) the numbers of shares of Common Stock reserved under the Plan (including those shares subject to options) at the time of making the determination and (b) the number of shares of Common Stock purchased under the Plan, Employee shall forfeit the option to purchase a number of shares of Common Stock equal to the number of shares in excess of 40 percent of such sum , In computing such excess, adjustments in the number of shares of Common Stock shall be made in a manner consistent with Paragraph 7.  Options shall be forfeited in order of purchase price with higher priced options forfeited before lower priced options, without regard to whether the options are evidenced by this Option Agreement or another option agreement.  Within the same price range, options shall be forfeited in order of age with older options forfeited before more recently granted options.

11.           General.  The Company shall make available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Agreement.  The exercise of the Option shall be subject to the condition that if at any time the Company shall determine in its discretion that (a) the satisfaction of withholding tax or other withholding liabilities, (b) the listing upon any securities exchange or the registration or qualification under any state or Federal law of any shares of Common Stock otherwise deliverable upon such exercise or (c) the consent or approval of any regulatory body is necessary or desirable as a condition of, or in connection with, such exercise or the delivery or purchase of shares of Common Stock pursuant to such exercise, then in any such event, such exercise shall not be effective unless such withholding listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company.  The Option shall not constitute an incentive stock option (within the meaning of Federal Internal Revenue Code 422A).

12.           Severability and Governing Law.  If any provision of this Agreement or its application to any circumstance be deemed invalid or unenforceable, then the remainder of this Agreement and the application of such provision to other circumstances shall not be affected.  This Agreement shall not be effective until executed by the Company at its principal office in Four Oaks, North Carolina, and shall be governed by and construed in accordance with the laws of the State of North Carolina.

 

  

  

  

 

13.           Notices.  Any notices provided under this Agreement shall be in writing and shall be delivered in person to the party to be notified or sent by certified mail.  Notices sent to the Company shall be addressed to the Company’s principal office in Four Oaks, North Carolina.  Notices sent to the Employee shall be addressed to the Employee at [his] [her] address as it appears in the Company’s regular records.

14.           Entire Agreement.  This Agreement constitutes the entire agreement between the Company and the Employee with respect to the subject matter of this Agreement.  No waiver, modification or amendment of any of the terms or conditions of this Agreement shall be effective unless set forth in writing signed by the Company and the Employee.

IN WITNESS WHEREOF, the Company has caused this Option Agreement to be executed by its duly authorized officers, and the Employee has set [his] [her] hand and seal to this Option Agreement, all as of the day and year first above written.

 

 

	  	 	
FOUR OAKS FINCORP, INC.

	 
	  	 	  	  	 
	  	 	
BY:

	  	 
	  	 	  	
Authorized Officer

	 
	  	 	  	  	 
	
(CORPORATE SEAL)

	 	  	  	 
	  	 	  	  	 
	
ATTEST:

	 	  	  	 
	  	 	  	  	 
	  	 	  	  	 
	
 

	 	  	  	 
	
Secretary

	 	  	  	 
	  	 	  	
 

	 
	  	 	  	
Employeea6229817ex10-3.htm

Exhibit 10.30

 

 

ORE PHARMACEUTICAL HOLDINGS INC.

2009 OMNIBUS EQUITY INCENTIVE PLAN

 

STOCK OPTION GRANT NOTICE

 

Ore Pharmaceutical Holdings Inc. (the “Company”), pursuant to its 2009 Omninus Equity Incentive Plan (the “Plan”), hereby grants to Optionee an option to purchase the number of shares of the Company’s common stock set forth below.  This option is subject to all of the terms and conditions as set forth herein and in Attachments I, II and III, which are incorporated herein in their entirety.

 

	
Optionee:

	
_____________________

	
Date of Grant:

	
_____________________

	
Shares Subject to Option:

	
_____________________

	
Exercise Price Per Share:

	
_____________________

	
Expiration Date:

	
_____________________

 

	 	
____  Incentive Stock Option

	
____  Nonstatutory Stock Option

 

Exercise/Vesting Schedule:  [Insert Vesting Schedule]

 

Payment:  Any or a combination of the following: (i) by cash or check, (ii) pursuant to a Regulation T program, as set forth in the Stock Option Agreement or (iii) delivering shares of previously owned common stock, as set forth in the Stock Option Agreement.

 

Additional Terms/Acknowledgements:  The undersigned Optionee acknowledges receipt of, and understands and agrees to, this Grant Notice, the Stock Option Agreement and the Plan.  Optionee further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the entire understanding between Optionee and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously granted and delivered to Optionee under the Plan, and (ii) the following agreements only:

 

	  	
Other Agreements:

	
None

 

                                                                    

 

 

	ORE PHARMACEUTICAL HOLDINGS INC. 	 	OPTIONEE
	 	 	 	 
	
By:

	  	  	  
	  	
Benjamin L. Palleiko

	  	
Signature

	  	  	  	  	  
	
Title:

	
Senior Vice President & Chief Financial Officer

	  	  	  
	  	  	  	  	  
	
Date:

	  	  	
Date:

	  

 

 

	
Attachment I:

	
Stock Option Agreement

	
Attachment II:

	
Notice of Exercise

	
Attachment III:

	
2009 Omnibus Equity Incentive Plan

 

 

  

  

  

 

ORE PHARMACEUTICAL HOLDINGS INC.

 

2009 OMNIBUS EQUITY INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

Pursuant to the Grant Notice and this Stock Option Agreement, the Company has granted you an option to purchase the number of shares of the Company’s common stock (“Common Stock”) indicated in the Grant Notice at the exercise price indicated in the Grant Notice.  Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan.

 

The details of your option are as follows:

 

1.           Vesting.  Subject to the limitations contained herein, your option will vest as provided in the Grant Notice, provided that vesting will cease upon the date you are no longer in the service of the Company either as an employee or a director or consultant ("Cessation of Service").

 

2.           Method Of Payment.

 

(a)           Payment Options.  Payment of the exercise price by cash or check is due in full upon exercise of all or any part of your option, provided that you may elect, to the extent permitted by applicable law and the Grant Notice, to make payment of the exercise price under one of the following alternatives:

 

(i)           Pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board which, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds;

 

(ii)           Provided that at the time of exercise the Company’s Common Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock, held for the period required to avoid a charge to the Company’s reported earnings, and owned free and clear of any liens, claims, encumbrances or security interests, which Common Stock shall be valued at its fair market value on the date of exercise; or

 

(iii)           Payment by a combination of the above methods.

 

3.           Whole Shares.  Your option may only be exercised for whole shares.

 

4.           Securities Law Compliance.  Notwithstanding anything to the contrary contained herein, your option may not be exercised unless the shares issuable upon exercise of your option are then registered under the Securities Act or, if such shares are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act.

 

 

  

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5.           Term.  The term of your option commences on the Date of Grant and expires upon the earliest of:

 

(i)           the Expiration Date indicated in the Grant Notice;

 

(ii)          the tenth (10th) anniversary of the Date of Grant;

 

(iii)         eighteen (18) months after your death, if your Cessation of Service is due to your death or you die within three (3) months after your Cessation of Service;

 

(iv)         twelve (12) months after your Cessation of Service due to disability;

 

(v)          your Cessation of Service for Cause; or

 

(vi)         three (3) months after your Cessation of Service for any other reason, provided that if during any part of such three (3)-month period the option is not exercisable solely because of the condition set forth in paragraph 4 (Securities Law Compliance), in which event the option shall not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the Cessation of Service.

 

For these purposes, “Cause” shall mean willful conduct that is materially injurious to the Company (or any Affiliate) or any successor thereto, whether financial or otherwise.

 

To obtain the federal income tax advantages associated with an “incentive stock option,” the Code requires that at all times beginning on the grant date of the option and ending on the day three (3) months before the date of the option’s exercise, you must be an employee of the Company, except in the event of your death or permanent and total disability.  The Company cannot guarantee that your option will be treated as an “incentive stock option” if you exercise your option more than three (3) months after the date your employment with the Company terminates.

 

6.           Exercise.

 

(a)           You may exercise the vested portion of your option during its term (and the unvested portion of your option if the Grant Notice so permits) by delivering a Notice of Exercise (in the form attached to your Grant Notice or other form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require.

 

(b)           By exercising your option you agree that:

 

(i)           as a condition to any exercise of your option, the Company may require you to enter an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of your option; (2) the lapse of any substantial risk of forfeiture to which the shares are subject at the time of exercise; or (3) the disposition of shares acquired upon such exercise; and

 

 

  

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(ii)           you will notify the Company in writing within ten (10) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of an incentive stock option that occurs within two (2) years after the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your option.

 

7.           Transferability.  Your option is not transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you.  Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option.

 

8.           Option Not a Service Contract.  Your option is not an employment contract and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company, or of the Company to continue your employment with the Company.  In addition, nothing in your option shall obligate the Company, its shareholders, Board of Directors, officers or employees to continue any relationship which you might have as a Director or Consultant for the Company.

 

9.           Notices.  Any notices provided for in your option or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.

 

In the event you are a non-employee participant, you hereby consent to receiving all plan documents, including the plan prospectus, the Company's most recent annual report on Form 10-K, and all other documents sent to shareholders of the Company in electronic form, either via email or via a link to a web site provided by the Company.  You also understand that you may request paper copies of any such documents at any time.

 

Governing Plan Document.  Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, including without limitation the provisions of the Plan relating to option provisions, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control.

 

 

  

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NOTICE OF EXERCISE

ORE PHARMACEUTICAL HOLDINGS INC.

2009 OMNIBUS EQUITY INCENTIVE PLAN (THE "PLAN")

Attn: Chief Financial Officer

Ore Pharmaceutical Holdings Inc.

One Main Street, Suite #300

Cambridge, MA 02142

Gentlemen:

1.           Exercise of Stock Option.  I hereby exercise the [Insert Type] ______________Stock Option (the "Stock Option") granted to me on ____________________, 200__, by Ore Pharmaceutical Holdings Inc. (the “Company”), subject to all the terms and provisions thereof and of the Plan, and notify you of my desire to purchase ____________ shares (the “Shares”) of Common Stock of the Company at a price of $___________ per share pursuant to the exercise of said Stock Option.

2.           Tax Consequences.  I am not relying upon the Company for any tax advice in connection with this option exercise, but rather am relying on my own personal tax advisors in connection with the exercise of the Stock Option and any subsequent disposition of the Shares.

3.           Tax Withholding.  I understand that, in the case of a nonqualified stock option, I must submit upon demand from the Company an amount in cash or cash equivalents sufficient to satisfy any federal, state or local tax withholding applicable to this Stock Option exercise, in addition to the purchase price enclosed, or make such other arrangements for such tax withholding that are satisfactory to the Company, in its sole discretion, in order for this exercise to be effective.

Total Amount Enclosed:  $__________

Date:___________________                          ____________________________________

(Optionee)

Received by Ore Pharmaceutical Holdings Inc.

On:_________________________, 20___

By:_________________________________

 

 

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