Document:

exhibit10bppih2018restri

                                                               2018 PPIH                                        EMPLOYEE RESTRICTED STOCK UNIT GRANT                                          RESTRICTED STOCK UNIT AGREEMENT                                                     UNDER THE                                       2017 OMNIBUS STOCK INCENTIVE PLAN, AS                                               AMENDED JUNE 13, 2017                                                GRANTEE:   __________                                          NO. OF AWARD UNITS: ____________                                                                                                                                      This  Agreement  (the  “Agreement”)  evidences the  award  of  ___________ restricted stock  units          (each, a “Award Unit,” and collectively, the “Award Units”), entitling the grantee to receive one share of          Common Stock (a   “Share”) on a future date, that Perma-Pipe International Holdings, Inc., a Delaware          corporation (the “Company”), has granted to you, ________________, effective as of ____________ (the          “Grant Date”), pursuant to the 2017 Omnibus Stock Incentive Plan, as Amended June 13,  2017 (the “Plan”)          and conditioned upon your agreement to the terms described below.  All of the provisions of the Plan are          expressly incorporated into this Agreement.           NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties          agree as follows:                   1.      Terminology.  Unless otherwise provided in this Agreement, capitalized words used herein          are defined in the Glossary at the end of this Agreement, or, if no definition is provided in this Agreement or          the Glossary, such capitalized words shall have the same definitions as in the Plan.                  2.      Vesting.                          (a)    All of the Award Units are nonvested and forfeitable as of the Grant Date.                          (b)    So long as your Service is continuous from the Grant Date through the applicable          date upon which vesting is scheduled to occur,                             .   _____ of the Award Units will vest and become nonforfeitable on _____, 2019,                            .   _____ of the Award Units will vest and become nonforfeitable on _____, 2020,                            .   _____ of the Award Units will vest and become nonforfeitable on _____, 2021,                            .   _____ of the Award Units will vest and become nonforfeitable on _____, 2022.                                                    (c)    Notwithstanding Section 2(b), one hundred percent of the Award Units will become          vested  and  nonforfeitable as  of  immediately  before  and  contingent  upon  the  occurrence  of  a  Change  in          Control, so long as your Service is continuous from the Grant Date, through the date of the Change in Control.                            (d)    If your Service ceases by reason of your permanent disability (as defined in Section          22(e)(3) of the Code) or death, then for one year after the date you become permanently disabled or your          death, the Award Units will continue to vest and become nonforfeitable as set forth in Section 2(b) as though          your  Service  was  continuous  through  the  one  year  anniversary  of  your  date  of disability  or  death,  as          applicable, and any Units that do not vest in accordance with this subsection shall be forfeited; provided,          however, if the Company (or an Affiliate) reasonably determines following your termination due to death          or disability that you could have been terminated for Cause had all the facts been known to the Company          (or an Affiliate) at the time of your death or disability, as applicable, then you shall forfeit all rights with          respect to any unvested Award Units.             Employee Restricted Stock Unit Grant - US  4836-6702-6798.6  

 

                  (e)    Except as otherwise specified in this Section 2, unless otherwise determined by the  Administrator in its sole discretion, none of the Award Units will become vested and nonforfeitable after your  Service ceases.          3.      Settlement of Units.  The  Company  shall  deliver  to  you (or a designated  broker) a  whole  number  of  Shares  equal  to the  number  of Units  (if  any)  that  vest  pursuant  to  this Agreement, subject  to  withholding  of  any taxes (as provided in  Section 7 below).  Such  delivery  shall  take  place  as  soon  as  administratively practicable following the vesting date, but in no event more than 30 days after the applicable  vesting date.          4.      Effect  of Termination  of  Employment  or  Service.  If  your  Service  ceases  for  any reason  except as otherwise specified in Section 2,  all Award Units that are not then vested and nonforfeitable will  be immediately forfeited by you.            5.      Restrictions on Transfer.                  (a)    Your Award Units may not be sold, assigned, transferred, pledged, hypothecated or  disposed of in any way (whether by operation of law or otherwise), except by will or the laws of descent and  distribution, and shall not be subject to execution, attachment or similar process.                  (b)    You hereby represent and warrant to the Company as follows:                         (i)     You will hold any Shares transferred to you upon the vesting of the Award  Units for your own account for investment only and not with a view to, or for resale in connection with, any  “distribution” of the Shares within the meaning of the Securities Act.                         (ii)    You understand that the Company may, in its discretion, impose restrictions  on the sale, pledge or other transfer of the Shares transferred to you upon the vesting of the Award Units  (including the placement of appropriate legends on stock certificates and the issue of stop transfer instructions  to the Company’s Transfer Agents) if, in the judgment of the Company, such restrictions are necessary or  desirable to comply with the Securities Act, the securities laws of any State or any other law.                         (iii)   You  are  aware that  your  investment  in  the  Company  is  a  speculative  investment that has limited liquidity and is subject to the risk of complete loss.                  (c)    Any attempt to dispose of the Award Units or Shares received upon settlement of  the Award Units in contravention of the restrictions set forth in this Section 5 shall be null and void and without  effect.  The Company shall not be required to (i) transfer on its books any Shares that have been sold or  transferred in contravention of this Agreement or (ii) treat as the owner of the Shares, or otherwise accord  voting,  dividend,  or  liquidation rights  to  any  transferee  to  whom  the  Shares  have  been  transferred  in  contravention of this Agreement.          6.      Stockholder Rights and Dividend Equivalents.  You shall not have any rights of a stockholder  with respect to the Shares underlying the Award Units (including, without limitation, any voting rights or any  right to dividends), until the Shares have been issued hereunder. If, however, a cash dividend record date  occurs after the Grant Date and prior to the settlement date, then on the date that such dividend is paid to  Company stockholders, you shall be credited with “dividend equivalents” in an amount equal to the dividends  that would have been paid to you if you had owned a number of Shares equal to the number of Award Units  that are outstanding hereunder as of such record date.  Such dividend equivalents  will accrue and be paid  to you in cash at the same time and to the same extent that the related Award Units vest.  If you forfeit any  Award Units, then you will also forfeit any related accrued dividend equivalents.        Employee Restricted Stock Unit Grant - US            

 

          7.      Tax Withholding.                  (a)    You hereby agree to make adequate provision for foreign, federal, state and local  taxes required by law to be withheld, if any, which arise in connection with the grant, vesting, or settlement,  of the Award Units.  If you wish to satisfy your tax withholding obligations by delivering proceeds from the  sale of Shares that are issued under this Agreement on the market, then you should execute Exhibit A to this  Agreement and return it to the Company by the deadline set forth therein.  If you have not timely executed  Exhibit A to this Agreement, then you shall, immediately upon notification of the amount of withholding taxes  due,  if  any,  pay  to  the  Company  in  cash  or  by  check the  amount  necessary  to  satisfy  any withholding  obligations.  The Company (and its Affiliates) shall also have the right to deduct from any compensation or  any other payment of any kind due you (including withholding the issuance or delivery of Shares hereunder)  the amount of any federal, state, local or foreign taxes required by law to be withheld as a result of the grant,  vesting or settlement of the Award Units in whole or in part; provided, however, that the value of the Shares  withheld or redeemed may not exceed the maximum statutory rate associated with the transaction to the  extent necessary for the Company to avoid an accounting charge.  If you do not pay the amount necessary  to satisfy any withholding obligations when requested, the Company may refuse to issue any Shares under  this Agreement.                  (b)    You  hereby  acknowledge  that  you  have  been  advised  by  the  Company  to  seek  independent tax advice from your own advisors regarding the tax consequences of this Award.  You may not  rely  on the Company,  its  Affiliates, or any  of their officers, directors or employees for tax or  legal advice  regarding this Award.  You acknowledge that you have sought tax and legal advice from your own advisors  regarding this Award or have voluntarily and knowingly foregone such consultation.          8.      Adjustments for Corporate Transactions and Other Events.                    (a)    Stock Dividend, Stock Split and Reverse Stock Split.  Upon a stock dividend of, or  stock split or reverse stock split affecting, the Common Stock, the number of outstanding Award Units shall,  without further action of the Administrator, be adjusted to reflect such event.  The Administrator shall make  adjustments, in its discretion, to address the treatment of fractional Shares with respect to the Award Units  as a result of the stock dividend, stock split or reverse stock split; provided that such adjustments do not result  in the issuance of fractional Shares.  Adjustments under this Section 8 will be made by the Administrator,  whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding  and conclusive.                  (b)    Non-Change  in  Control  Transactions.   Upon  any  change  affecting  the  Common  Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,  consolidation  or  share  exchange,  other  than  any  such  change  that  is  part  of  a transaction  resulting  in  a  Change in Control, the Administrator shall make any adjustments with respect to the Award Units as the  Administrator  determines  to  be  appropriate  and  equitable.   The  Administrator’s  determination  as  to  what  adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.                  (c)    Unusual  or  Nonrecurring  Events.   The  Administrator  shall make, in its  discretion,  adjustments in the terms and conditions of, and the criteria included in, Award Units in recognition of unusual  or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or  of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines  that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential  benefits intended to be made available under the Plan; provided that no such adjustment shall be made in  contravention of Section 409A of the Code (“Code Section 409A”) with respect to any Award that constitutes  a deferred compensation arrangement within the meaning of Code Section 409A.                  (d)    Binding Nature of Agreement.  The terms and conditions  of this Agreement shall  apply with equal force to any additional and/or substitute securities received by you in exchange for, or by  virtue of your ownership of, the Award Units, to the same extent as the Award Units with respect to which  such additional and/or substitute securities are distributed, whether as a result of any spin-off, stock split-up,    Employee Restricted Stock Unit Grant - US            

 

   stock  dividend,  stock  distribution,  other  reclassification of  the  Common  Stock  of  the  Company,  or  similar  event,  except  as  otherwise determined  by  the  Administrator.   If  the  Award Units  are  converted  into  or  exchanged  for,  or  stockholders  of  the  Company  receive  by  reason  of  any  distribution  in  total  or  partial  liquidation or pursuant to any merger of the Company or acquisition of its assets, securities of another entity,  or other property (including cash), then the rights of the Company under this Agreement shall inure to the  benefit  of  the  Company’s  successor,  and  this  Agreement  shall  apply  to  the  securities  or  other  property  (including cash) received upon such conversion, exchange or distribution in the same manner and to the  same extent as the Award Units.          9.      Non-Guarantee  of  Employment  or  Service  Relationship.   Nothing  in  the  Plan  or  this  Agreement shall alter your at-will or other employment status or other service relationship with the Company  (or an Affiliate), nor be construed as a contract of employment or service relationship between the Company  (or an Affiliate) and you, or as a contractual right of you to continue in the employ of, or in a service relationship  with, the Company (or an Affiliate) for any period of time, or as a limitation of the right of the Company (or an  Affiliate) to discharge  you at any time with or without cause or notice and whether or not such discharge  results in the forfeiture of any Award Units or any other adverse effect on your interests under the Plan.          10.     The Company’s Rights.  The existence of the Award Units shall not affect in any way the  right  or  power  of  the  Company  or  its  stockholders  to  make  or  authorize  any  or  all  adjustments,  recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any  merger or consolidation of the Company, or any issue of bonds, debentures, preferred or other stocks with  preference ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the  dissolution or liquidation of the Company, or any sale or transfer of all or any part of the Company’s assets  or business, or any other corporate act or proceeding, whether of a similar character or otherwise.          11.     Notices.  All notices and other communications made or given pursuant to this Agreement  shall  be  in  writing  and  shall  be  sufficiently  made  or  given  if  hand  delivered  or  mailed  by  certified  mail,  addressed to you at the address contained in the records of the Company, or addressed to the Administrator,  care of the Company for the attention of its Corporate Secretary at its principal executive office or, if the  receiving  party  consents  in  advance,  transmitted  and  received  via  telecopy  or  via  such  other  electronic  transmission mechanism as may be available to the parties.          12.     Entire Agreement.  This Agreement contains the entire agreement between the parties with  respect to the Award Units granted hereunder.  Any oral or written agreements, representations, warranties,  written inducements, or other communications made prior to the execution of this Agreement with respect to  the Award Units granted hereunder shall be void and ineffective for all purposes. In the event a court of  competent  jurisdiction  deems  any  provision  hereof  to  be  unreasonable,  void,  or  unenforceable,  such  provision(s) shall be deemed severed from the remainder of the Agreement, which shall continue in all other  respects to be valid and enforceable.  It is the intent of the parties that any such provision(s) of this Agreement  declared void, unreasonable, or unenforceable shall be deemed by a court of competent jurisdiction revised  to the minimum amount necessary in order to be valid and enforceable.          13.     Amendment.  This Agreement may be amended from time to time by the Administrator in its  discretion; provided, however,  that   this  Agreement  may  not  be modified  in a  manner  that  would have a  material adverse effect on your rights with respect to the Award Units as determined in the discretion of the  Administrator, except as otherwise provided in (a) Section 8 of this Agreement, (b) the Plan or (c) a written  document signed by each of the parties hereto.          14.     Conformity with Plan.  This Agreement is intended to conform in all respects with, and is  subject to all applicable provisions of, the Plan.  Inconsistencies between this Agreement and the Plan shall  be resolved in accordance with the terms of the Plan.  In the event of any ambiguity in this Agreement or any  matters as to which this Agreement is silent, the Plan shall govern.  A copy of the Plan is provided to you with  this Agreement.    Employee Restricted Stock Unit Grant - US            

 

          15.     Governing  Law.   The  validity,  construction  and  effect  of  this  Agreement,  and  of  any  determinations or decisions made by the Administrator relating to this Agreement, and the rights of any and  all persons having or claiming to have any interest under this Agreement, shall be determined exclusively in  accordance with the laws of the State of Delaware, without regard to its provisions concerning the applicability  of laws of other jurisdictions.  As a condition of this Agreement, you agree that you will not bring any action  arising under, as a result of, pursuant to or relating to, this Agreement in any court other than a federal or  state court  in the districts  which include Niles, Illinois, and  you hereby  agree and submit to the personal  jurisdiction of any federal court located in the district which includes Niles, Illinois or any state court in the  district  which  includes  Niles,  Illinois.   You  further  agree  that  you  will  not  deny  or  attempt  to  defeat  such  personal jurisdiction or object to venue by motion or other request for leave from any such court.          16.     Resolution of Disputes.  Any dispute or disagreement which shall arise under, or as a result  of, or pursuant to or relating to, this Agreement shall be determined by the Administrator in good faith in its  absolute  and  uncontrolled  discretion,  and  any  such  determination  or  any  other  determination  by  the  Administrator under or pursuant to this Agreement and any interpretation by the Administrator of the terms of  this Agreement, will be final, binding and conclusive on all persons affected thereby.  You agree that before  you may bring any legal action arising under, as a result of, pursuant to or relating to, this Agreement you will  first exhaust your administrative remedies before the Administrator.  You further agree that in the event that  the Administrator does not resolve any dispute or disagreement arising under, as a result of, pursuant to or  relating to, this Agreement to your satisfaction, no legal action may be commenced or maintained relating to  this Agreement more than twenty-four (24) months after the Administrator’s decision.          17.     Headings.  The headings in this Agreement are for reference purposes only and shall not  affect the meaning or interpretation of this Agreement.          18.     Counterparts.  This Agreement may be executed in multiple counterparts, each of which is  deemed to be an original, but all of which taken together constitute one and the same Agreement and shall  become effective when all counterparts have been executed by each of the parties hereto and delivered to  the  other.   Facsimile  and  other  electronic  transmissions  (including  in  portable  document  format)  of  any  originally executed document (including this Agreement) shall be deemed to be the same as a delivered,  executed original.          19.     Electronic Delivery of Documents.  By your signing this Agreement, you (i) consent to the  electronic delivery of this Agreement, all information with respect to the Plan and the Award Units and any  reports of the Company provided generally to the Company’s stockholders; (ii) acknowledge that you may  receive  from  the  Company  a  paper  copy  of  any  documents  delivered  electronically  at  no  cost  to  you  by  contacting the Company by telephone or in writing; (iii) further acknowledge that you may revoke your consent  to the electronic delivery of documents at any time by notifying the Company of such revoked consent by  telephone, postal service or electronic mail; and (iv) further acknowledge that you understand that you are  not required to consent to electronic delivery of documents.          20.     No Future Entitlement.  By your signing this Agreement, you acknowledge and agree that:   (i) the grant of these Award Units is a one-time benefit which does not create any contractual or other right to  receive future grants of stock, or compensation in lieu of stock grants, even if stock grants have been granted  repeatedly in the past; (ii) all determinations with respect to any such future grants, including, but not limited  to, the times when stock grants shall be granted, the maximum number of Shares subject to each stock grant,  and the times or conditions under  which restrictions  on such stock grants shall lapse,  will be at the sole  discretion of the Administrator; (iii) the value of this stock grant is an extraordinary item of compensation  which is outside the scope of your employment contract, if any; (iv) the value of this stock grant is not part of  normal or expected compensation or salary for any purpose, including, but not limited to, calculating any  termination, severance, resignation, redundancy, end of service payments or similar payments, or bonuses,  long-service  awards,  pension  or  retirement  benefits;  (v)  the  vesting  of  these Award Units ceases  upon  termination  of  employment  with  the  Company  or  transfer  of  employment  from  the  Company,  or  other  cessation of eligibility for any reason, except as may otherwise be explicitly provided in this Agreement; (vi)  the Company does not guarantee any future value of these Award Units; and (vii) no claim or entitlement to    Employee Restricted Stock Unit Grant - US            

 

   compensation or damages arises if these Award Units do not increase in value and you irrevocably release  the Company from any such claim that does arise.          21.     Personal Data.  For purposes of the implementation, administration and management of this  Award or the effectuation of any acquisition, equity or debt financing, joint venture, merger, reorganization,  consolidation, recapitalization, business combination, liquidation, dissolution, share exchange, sale of stock,  sale  of  material  assets  or  other  similar  corporate  transaction  involving  the  Company  (a  “Corporate  Transaction”), you consent, by execution of this Agreement, to the collection, receipt, use, retention and  transfer, in electronic or other form, of your personal data by and among the Company and its third party  vendors  or  any  potential  party  to  a  potential  Corporate  Transaction.   You  understand  that  personal  data  (including but not limited to, name, home address, telephone number, employee number, employment status,  social security number, tax identification number, date of birth, nationality, job and payroll location, data for  tax withholding purposes and Shares awarded, cancelled, vested and unvested) may be transferred to third  parties assisting in the implementation, administration and management of the stock grant or the effectuation  of a Corporate Transaction and you expressly authorize such transfer as well as the retention, use, and the  subsequent transfer of the data by the recipient(s).  You understand that these recipients may be located in  your  country  or  elsewhere,  and  that  the  recipient’s  country  may  have  different  data  privacy  laws  and  protections  than  your  country.   You  understand  that  data  will  be  held  only  as  long  as  is  necessary  to  implement, administer and manage the stock grant or effect a Corporate Transaction.  You understand that  you may, at any time, request a list with the names and addresses of any potential recipients of the personal  data,  view  data,  request  additional  information  about  the  storage  and  processing  of  data,  require  any  necessary  amendments  to  data  or  refuse  or  withdraw  the  consents  herein,  in  any  case  without  cost,  by  contacting in writing the Company’s Secretary.  You understand, however, that refusing or withdrawing your  consent may affect your ability to accept a stock grant.          22.     Consideration for Shares.  To ensure compliance with applicable state corporate law, the  Company may require you to furnish consideration in the form of cash or cash equivalents equal to the par  value of the Shares issued to you upon settlement of the Award Units, and you hereby authorize the Company  to withhold such amount from remuneration otherwise due you from the Company.          23.     Recoupment.  The  Award  Units (and  any  compensation  paid  or Shares  issued upon  settlement of the Award Units) are subject to recoupment in accordance with the Dodd-Frank Wall Street  Reform and Consumer Protection Act and any implementing regulations thereunder, any clawback policy  adopted by the Company and any compensation recovery policy or practice otherwise required by applicable  law.                                        Employee Restricted Stock Unit Grant - US            

 

                                              GLOSSARY                         (a)     “Administrator” means the Board of Directors of Perma-Pipe International  Holdings, Inc. and/or the committee(s) or officer(s) appointed by the Board that have authority to administer  the Plan.                         (b)     “Affiliate”  means  any  entity,  whether  now  or  hereafter  existing,  which  controls, is controlled by, or is under common control with the Company (including but not limited to joint  ventures, limited liability companies and partnerships).  For this purpose, “control” shall mean ownership of  25% or more of the total combined voting power or value of all classes of stock or interests of the entity, or  the power to direct the management and policies of the entity, by contract or otherwise.                         (c)     “Cause”  means   termination  in  whole  or  substantial  part,  for  gross  negligence or willful misconduct in the execution of your duties, for conviction of, or entry of a plea of guilty  or nolo contendere to, any felony or any act of fraud, embezzlement, misappropriation, or a crime involving  moral  turpitude,  or  for  commission  of  any  act  which  causes  or  may  reasonably  be  expected  to  cause  substantial damage to the Company                         (d)     “Company” means Perma-Pipe International Holdings, Inc.                         (e)      “Securities Act” means the Securities Act of 1933, as amended.                         (f)     “Service”  means  your  employment  or  other  service  relationship  with  the  Company  and  its  Affiliates.   Your  Service  will  be  considered  to  have  ceased  with  the  Company  and  its  Affiliates if, immediately after a sale, merger or other corporate transaction, the trade, business or entity with  which you are employed or otherwise have a service relationship is not Perma-Pipe International Holdings,  Inc. or its successor, or an Affiliate of Perma-Pipe International Holdings, Inc. or its successor.                         (g)     “You”;  “Your”; “Employee”, means  the  recipient  of  the  Award Units  as  reflected in the first paragraph of this Agreement.  Whenever the word “Employee”, “you” or “your” is used in  any provision of this Agreement under circumstances where the provision should logically be construed, as  determined by the Administrator, to apply to the estate, personal representative, or beneficiary to whom the  Award Units may be transferred by will or by the laws of descent and distribution, the words “Employee”,  “you” and “your” shall be deemed to include such person.       Employee Restricted Stock Unit Grant - US            

 

          IN  WITNESS  WHEREOF,  the  Company  has  caused  this  Agreement  to  be  executed  by  its  duly  authorized officer.                                                        Perma-Pipe International Holdings, Inc.                                                                                                                                                                     By:                                                                                                                                                      Date:                                                                                                                                                                                                                                                                           The undersigned hereby acknowledges that he/she has carefully read this Agreement and agrees to  be bound by all of the provisions set forth herein.  The undersigned also consents to electronic delivery of all  notices or other information with respect to the Award Units or the Company.    WITNESS:                                            GRANTEE                                                                                                                                                                                                                                                                                                                              Date:                                                                                                                                   Employee Restricted Stock Unit Grant - US            

 

                                                Exhibit A                                       Standing Order Election                                                     By executing this Irrevocable Standing Order Election (this “Standing Order”), I wish to notify the Company  of my election to satisfy any withholding taxes due in connection with each and every vesting date for the  Award Units by applying proceeds from a market sale of Company securities issuable as a result of such  vesting date.  I understand that if I do not execute this Standing Order, then the Company will require  that I pay my withholding obligations by cash or check, or the Company will deduct the amount of  any withholding obligations from other payments due to me.     IMPORTANT NOTES:           You may not enter into this Standing Order if you are in possession of material non-public           information. If you are in possession of material non-public information, then you must wait to           complete this Standing Order until such time as you no longer possess material non-public           information.                      No sales may be made pursuant to this Standing Order for 30 calendar days following its           execution.  To ensure that you can satisfy your withholding obligations by selling Shares in the           market, you should return this form to the Company as soon as possible, but in no event later           than 30 days before the first vesting date of your Award Units listed in the Agreement.     By signing below, I understand that I am agreeing to the following provisions:                   1.      I am executing this Standing Order to authorize the Company and any broker the Company  designates (the “Broker”) to take the actions described in this Paragraph 1. I authorize the Company to  transfer the Shares issued to me upon settlement of the Award Units to the Broker to be held in an account  for my benefit (the “Brokerage Account”), and I irrevocably authorize the Broker to sell, at the market price  and on the date the Shares are issued by the Company (or, if all or a portion of the sale cannot be  completed on such date because of insufficient demand or a market disruption, then on the next following  business day on which the sale can be made) the number of Shares necessary to obtain proceeds  sufficient to satisfy the amount of any withholding obligations associated with my Award Units indicated by  the Company to the Broker. I understand and agree that the number of Shares that the Broker will sell will  be based on the Company’s estimate (or Broker’s estimate if it provides such service) of the Shares  required to satisfy the withholding obligations, using the closing price of a Share of the Company’s common  stock on the trading day immediately prior to vesting date (or such other date as any withholding obligations  become due). I agree to execute and deliver such documents, instruments and certificates as may  reasonably be required in connection with the sale of the Shares pursuant to this Standing Order.                  2.       I agree that the proceeds received from the sale of Shares pursuant to Paragraph 1 will be  used to satisfy any withholding obligations associated with my Award Units and, accordingly, I hereby  authorize the Broker to pay such proceeds to the Company for such purpose. I understand that, to the  extent that the proceeds obtained by such sale exceed the amount necessary to satisfy the withholding  obligations, such excess proceeds shall be deposited into the Brokerage Account and, if a shortfall occurs,  the Broker may sell additional Shares held in my Brokerage Account, the Company may deduct any  remaining withholding obligations from any compensation or other payment of any kind due to me, or the  Company may require that I pay any remaining withholding obligations to by cash or check. I further  understand that any Shares that are issuable to me as a result of the vesting of my Award Units that are not  sold to satisfy withholding obligations will be deposited into the Brokerage Account.              Employee Restricted Stock Unit Grant - US            

 

          3.      I have reviewed with my own tax advisors the federal, state, local and foreign tax  consequences of this grant and the actions contemplated by the Agreement and this Standing Order. I am  relying solely on such advisors and not on any statements or representations of the Company or any of its  agents. I understand that I (and not the Company) will be responsible for my own tax liability that may arise  as a result of this Standing Order.                   4.      I represent to the Company that, as of the date hereof, (i) I am not aware of any material  nonpublic information about the Company or its Common Stock, (ii) the Company is not in a black out  period (as defined in the Company’s Insider Trading Policy), (iii) sales will not be commenced within 30  calendar days of adoption of this Standing Order, (iv) I am not subject to any legal, regulatory or contractual  restriction or undertaking that would prevent the sales of Shares contemplated by this Standing Order, and  (v) I am entering into this Standing Order in good faith and not as part of a plan or scheme to evade the  prohibitions of Rule 10b5-1. The Company and I have structured this Agreement to comply with the  affirmative defense to liability under Section 10(b) of the Securities Exchange Act of 1934, as amended,  under Rule 10b5-1(c)(1) issued under such Act, and this Standing Order shall be interpreted to comply with  such requirements.         IN WITNESS WHEREOF, the parties hereto have executed this Standing Order as of the last date  indicated below.                                                                Perma-Pipe International Holdings, Inc.                                                                                                                 Date:                                               By:                                                                                                                                                                                                                                                                                                                                                                                     GRANTEE                                                                                                                 Date:                                                                                                                                                                                                              Employee Restricted Stock Unit Grant - USxene-ex101_6.htm

Exhibit 10.1

 

 

MILESTONE AND ROYALTY BUY-OUT AGREEMENT

 

This Milestone and Royalty Buy-Out Agreement (this “Agreement”) is entered into as of this 7th day of September, 2018, by and between Xenon Pharmaceuticals Inc. (hereinafter “Xenon”), Valeant Pharmaceuticals Ireland Limited (hereinafter “VPIL”) and Valeant Pharmaceuticals Luxembourg S.a.r.l. (hereinafter “VPL”), each referred to herein individually as a “Party,” and collectively as the “Parties.”

 

 

RECITALS

 

A.WHEREAS, VPL and 1st Order Pharmaceuticals, Inc. (“1st Order”) previously entered into an Asset Purchase Agreement dated October 30, 2015 (the “APA”) pursuant to which 1st Order purchased from VPL rights to an investigational compound known as VRX621698 and certain related assets as described in the APA;

 

B.WHEREAS, 1st Order previously entered into an Intellectual Property Assignment Agreement between 1st Order and Valeant Pharmaceuticals International (“VPI”) dated February 8, 2017, pursuant to which VPI assigned to 1st Order additional intellectual property assets (the “IP Assignment Agreement”);

 

C.WHEREAS, the APA provides, among other things, for the payment of certain milestones and royalties by 1st Order to VPL;

 

D.WHEREAS, 1st Order subsequently sold to Xenon all of its right, title and interest in and to all assets purchased by 1st Order pursuant to the APA and the IP Assignment Agreement, including without limitation, all rights with respect to the investigational compound known as 1OP-2198 (previously VRX621698 and now referred to as XEN1101) (the “Compound”), and any variant forms thereof, including as salt, freebase or pro-drug, and all other assets of 1st Order related thereto pursuant to that certain Asset Purchase Agreement dated April 25, 2017 between 1st Order and Xenon (the “Xenon APA”).

 

E.WHEREAS, pursuant to the Xenon APA, Xenon undertook to pay to VPL any relevant milestone and royalty payments due to VPL from 1st Order arising under Sections 2.4 and 2.5 of the APA.

 

F.WHEREAS, the Parties desire to enter into this Agreement for Xenon to buy out any past, present and future milestone payment and royalties that have or may become owed to VPL under the APA in exchange for the payment by Xenon of US $6,000,000 to VPIL as described herein;

 

Now, therefore, for valuable consideration, the receipt of which is hereby acknowledged, Xenon, VPL and VPIL (VPL and VPIL collectively, “Valeant Parties”) agree as follows:

 

1.Milestone and Royalty Buy-Out. Xenon shall buy out all past, present and future milestone payments and royalties owed to VPL under Sections 2.4 and 2.5 of the APA for the sum of Six Million US Dollars (US $6,000,000.00) (the "Milestone and Royalty Buy-Out Amount"). Payment of the Milestone and Royalty Buy-Out Amount in the form of a wire transfer shall be delivered to VPIL pursuant to written instructions provided to Xenon, within fourteen (14) days from the date that this Agreement is fully executed by Xenon and the Valeant Parties. Upon such payment of the Milestone and Royalty Buy-Out Amount, Xenon and 1st Order shall be and are hereby fully and forever discharged and relieved of past, present and future payments of any amounts to be paid to VPL described in Sections 2.4 or 2.5 of the APA. 1st Order is an intended third party beneficiary of the foregoing sentence and such sentence is for the benefit of and enforceable by 1st Order (provided however that Xenon and the Valeant Parties may modify or amend this Agreement by agreement between Xenon and the Valeant Parties without the consent of 1st Order).

 

2.No Further Accounting Obligations. As a result of this Agreement, neither Xenon nor 1st Order shall have any further obligations to VPL under Section 2.5(d) of the APA, including but not limited obligations to keep records or make reports, and the Valeant Parties fully and forever discharge and relieve 1st Order and Xenon from any such obligations.

 

 

 

3.Taxes.  Notwithstanding anything in this Agreement to the contrary, the Valeant Parties agree to pay as due all withholding taxes imposed by the Canadian Revenue Agency (the “CRA”) in respect of the Milestone and Royalty Buy-Out Amount (the “Taxes”) regardless of whether such Taxes are assessed or would ordinarily be assessed against either or both Valeant Parties or Xenon. In the event that the CRA contacts Xenon regarding such Taxes and/or demands that Xenon pays them, Xenon shall promptly notify the Valeant Parties. In the event that Xenon pays such Taxes, VPIL shall promptly reimburse Xenon within 60 days from the date Xenon makes written demand therefor. 

 

4.Other Terms and Provisions of APA. All other terms and provisions of the APA, except those expressly discharged herein, shall remain in full force and effect.  For clarity, the Valeant Parties acknowledge and agree that Article 5 of the APA has terminated and no longer has any force or effect.

 

5.Representation and Warranty. 

 

	
 
	
a)
	
Each Party represents and warrants to the other Party, and acknowledges that the other Party is relying on such representations and warranties it has all necessary corporate power and authority to execute and deliver this Agreement and to complete the transactions contemplated herein. It has duly and validly executed and delivered this Agreement and this Agreement constitutes the legal and valid binding obligation enforceable in accordance with its terms. No notice to, or consent or approval from, any authority is required in connection with its execution and performance of this Agreement. The execution and performance of this Agreement by it will not violate any applicable law, any organizational documents by which it is bound or any agreements to which it is bound.

 

	
 
	
b)
	
The Valeant Parties represent and warrant that (i) the Valeant Parties have the sole right and interest under the APA to obtain the payments described in Section 2.4 and 2.5 of the APA, (ii) such right and interest has not been transferred to any other entity and (iii) the payment of the Milestone and Royalty Buy-Out Amount to VPIL by Xenon as described in this Agreement fully and forever discharges and relieves Xenon and 1st Order of past, present and future payments of any amounts to be paid under Sections 2.4 or 2.5 of the APA.

 

6.Authority. Each person and entity executing this Agreement does hereby personally represent that he/she has the authority to execute this Agreement on behalf of, and fully bind, such purported principal.

 

7.Governing Law. This Agreement shall in all respects be interpreted, enforced and governed by and under the laws of the State of Delaware without giving effect to any choice of law or conflict of laws rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. Any legal proceeding relating to this Agreement or the enforcement of any provision of this Agreement may be brought or otherwise commenced only in any state or federal court located in the State of Delaware. Each party to this Agreement: (i) irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal courts located in State of Delaware; (ii) agrees that each state and federal court located in the State of Delaware shall be deemed to be a convenient forum; and (iii) agrees not to assert (by way of motion, as a defense or otherwise), in any such legal proceeding commenced in any state or federal court located in the State of Delaware, any claim that such party is not subject personally to the jurisdiction of such court, that such legal proceeding has been brought in an inconvenient forum, that the venue of such legal proceeding is improper or that this Agreement or the subject matter of this Agreement may not be enforced in or by such court.

 

8.Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective predecessors, successors, assigns, partners, partnerships, joint ventures, parents, subsidiaries, affiliated and related entities, officers, directors, principals, agents, servants, employees, representatives and all persons, firms, associations, and/or corporations connected with them.

 

9.Counterparts. This Agreement may be executed in any number of counterparts, and any party hereto may execute any such counterpart, each of which when executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other parties hereto. The Parties agree that the delivery of this Agreement may be effected by means of an exchange of facsimile or other electronic signatures.

 

 

 

10.Additional Documents. The Parties agree to cooperate fully and execute any and all supplementary documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Agreement.

 

11.Confidentiality; Press Release. Each Party shall hold the terms and conditions of this Agreement in strict confidence, and neither Party shall issue any press release concerning the subject matter of this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld. Except as provided in this Section 11, nothing in this Agreement shall restrict or otherwise limit the Xenon’s ability or right to issue any press release or make any public statement regarding its operations or the Purchased Assets (as defined in the APA), including, among other things, the development and commercialization of the Compound. Notwithstanding the foregoing, each Party shall be permitted to disclose the terms and conditions of this Agreement (a) to its actual or potential acquisition partners, licensees, collaborators or private investors, and others on a need to know basis and subject to written agreements containing confidentiality obligations at least as restrictive as this Section 11; or (b) to the extent necessary to comply with applicable laws and court orders (including securities laws or regulations and the applicable rules of any public stock exchange).

 

12.Entire Agreement. This Agreement constitutes the entire understanding between and among the Parties with regard to the matters herein set forth. There are no representations, warranties, arrangements, or undertakings, oral or written, between or among the Parties relating to the subject matter of this Agreement which are not fully expressed in this Agreement. This Agreement may not be amended or modified except upon a written agreement signed by the Parties.

 

[intentionally left blank – signature page follows]

 

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Milestone and Royalty Buy-Out Agreement to be executed by their duly authorized representatives as of the date first written above.

 

 

VALEANT PHARMACEUTICALS LUXEMBOURG S.A.R.L.

 

	
By
	
 
	
/s/ Michael Kennan

	
Name:
	
 
	
Michael Kennan

	
Title:
	
 
	
Manager

 

 

	
By
	
 
	
/s/ Franck Deconinck

	
Name:
	
 
	
Franck Deconinck

	
Title:
	
 
	
Manager

 

 

 

VALEANT PHARMACEUTICALS IRELAND LIMITED

 

	
By
	
 
	
/s/ Graham Jackson

	
Name:
	
 
	
Graham Jackson

	
Title:
	
 
	
Director

 

 

XENON PHARMACEUTICALS INC.

 

	
By
	
 
	
/s/ Ian Mortimer

	
Name:
	
 
	
Ian Mortimer

	
Title:
	
 
	
President & CFO

 

	
By
	
 
	
/s/ Robin Sherrington

	
Name:
	
 
	
Robin Sherrington

	
Title:
	
 
	
EVP, Business and Corporate Development

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