Document:

ex10-12.htm

Exhibit 10.12

 

Strategic Operating Committee Incentive Plan

 

 

 

 

 

 

  

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HomeTrust Strategic Operating Committee Incentive Plan 

 

Introduction

 

HomeTrust Bancshares, Inc. (“HomeTrust” or the “Bank”) is committed to rewarding senior executives for their contributions to the Bank’s success.  The HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Plan (the “Plan”) is part of a total compensation package which includes base salary, annual incentives and benefits.  The Plan is designed to:

 

	
  

	
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Focus executives on building a strong foundation for success and sustainability over the long term.

	
  

	
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Recognize and reward achievement of the Bank’s annual business goals.

	
  

	
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Focus executives’ attention on key business metrics.

	
  

	
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Motivate and reward superior performance.

	
  

	
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Attract and retain talent needed for the Bank’s success.

	
  

	
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Be competitive with the market.

	
  

	
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Encourage teamwork and collaboration.

	
  

	
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Ensure incentives are appropriately risk-balanced.

	
  

	
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Recognize the accomplishment of key business goals that are critical to long-term success of the organization that are less quantifiable and/or more subjective in nature by utilizing a discretionary component.

 

Participation and Eligibility

 

Each year, employees are selected for Plan participation:

	
  

	
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CEO and COO participation is determined by the Compensation Committee.

	
  

	
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The CEO and COO recommend the other named executive officers for approval by the Compensation Committee.

	
  

	
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Other participants are added by CEO and COO.

Participants are subject to meeting the following requirements:

	
  

	
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New hires must be employed prior to April 1st of the Plan year to be eligible to participate in the Plan for the performance period.  Employees hired after that date must wait until the next fiscal year to be eligible for an award under the Plan.  Eligibility begins the first full month worked.  Participants receive a pro-rated award using full months worked during the Plan year.

	
  

	
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Awards under the Plan shall be limited to individuals employed on a full-time basis by HomeTrust on the date of payment, except in the case of disability, death, or retirement.

  

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Participants on a performance improvement plan or with an unsatisfactory performance rating at the time of payment or who have given notice of resignation at the time of payment are not eligible to receive an award.

 

Performance Period

 

The Plan operates on a fiscal year schedule — July 1st through June 30th.

 

Incentive Award Opportunities

 

Each participant will have a specified target annual incentive award opportunity, expressed as a percentage of the participant’s base salary.  Incentive award opportunities are based on the participant’s job duties and responsibilities and competitive practices.

 

Performance Goals and Award Levels

 

Plan goals will be established using three performance levels:

	
  

	
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Threshold – is the minimum level of performance in which the Bank would consider it reasonable to provide a reward.  If performance is below Threshold, the payout for that goal is zero. Performance at Threshold results in a payment equal to 50% of the participant’s targeted annual incentive award opportunity.

	
  

	
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Target – is the level of performance that the Bank considers “good” performance.  Goals at this level are challenging but considered reasonably obtainable.  Performance at Target results in a payment equal to 100% of the participant’s targeted annual incentive award opportunity.

	
  

	
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Stretch – is the level of performance the Bank considers outstanding performance.  Goals at this level are challenging and considered a best case scenario.  Performance at Stretch results in a payment equal to 150% of the participant’s targeted annual incentive award opportunity, which is the highest amount to be paid under the Plan.

Performance between Threshold and Target and Target and Stretch are interpolated to provide for a range of payouts between 50% to 150% of a participant’s targeted annual incentive, based on incremental results between Threshold and Stretch performance.

 

Incentive Plan Performance Measures and Weights

 

The Plan uses a balanced scorecard with performance measures weighted between Corporate and Team/Individual goals.  All Corporate goals, weightings and Team/Individual goals for the CEO and Named Executive Officers are presented to the Compensation Committee for review and approval.  Team/Individual goals for other Plan participants are approved by the CEO and/or COO.

 

The following schedules are attached to this Plan document.  Schedules A and B are approved by the Compensation Committee prior to the beginning of each performance period:

  

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Schedule A:  Award Percentages and Performance Measures Weightings

Schedule B:  Bank Goals, Weightings and Definitions

Schedule C:  Example Payout Calculation

 

Plan Discretion

 

The Plan has a portion of the Corporate and Team/Individual and goals based on discretion that allows the Compensation Committee, CEO and/or COO, as appropriate, to modify the final award based on a subjective assessment of performance and contributions to the Bank’s success.

 

 

Award Distributions

 

At the end of the fiscal year, performance is measured and awards amounts are calculated.  Awards are paid in cash (generally) within two and one half months following the end of the fiscal year or as soon as practical after approval of the award payout by the Board of Directors.

 

Awards are paid out as a percentage of a participant’s annual base earnings as of June 30th.  Base earnings are defined as the base salary in effect on June 30th and excludes referral fees, commissions and any other previously-paid performance compensation.

 

Payments under this Plan are considered taxable income to participants in the year paid and will be subject to tax withholding.

 

Risk Mitigation

 

HomeTrust seeks to appropriately balance risk with financial rewards in the Plan design and implementation. The compensation arrangements in this Plan are designed to be sufficient to incent participants to achieve approved strategic and tactical goals while at the same time not be excessive or lead to material financial loss to the Bank.

 

Awards may be reduced or eliminated for credit quality and/or regulatory action. Unless the Compensation Committee deems otherwise, awards will not be paid, regardless of Corporate or Team/Individual performance, if 1) any regulatory agency issues a formal, written enforcement action, memorandum of understanding or other negative directive action where the Committee considers it imprudent to provide awards under this Plan, and/or 2) after a review of the Company’s credit quality measures the Committee considers it imprudent to provide awards under this Plan.

 

Coordination with Other Incentives

 

The Plan does not inhibit the Bank from approving Plan participants for inclusion in other Bank plans, bonuses, commissions and/or incentive compensation arrangements.  The Board of Directors may make discretionary bonuses to participants regardless of their participation in this Plan.

Please see “Terms and Conditions” for further details on the Plan provisions.

  

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Terms and Conditions 

 

The information represented below is subject to change and does not constitute a binding agreement.

 

 

Definition of “Plan”

 

“Plan” refers to the HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Plan.

 

 

Definition of the “Bank”

 

For the purposes of this Plan, the “Bank” refers to HomeTrust Bancshares, Inc.

 

 

Effective Date

 

This Plan is effective July 1, 2012, and may be amended from time to time with the approval of the Board of Directors.

 

 

Performance Period/Plan Year

 

The performance period is July 1st through June 30th and may be referred to in this document as the Plan year.

 

 

Plan Administration

 

The Plan is authorized by the Board of Directors.  The Board has the sole authority to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration of the Plan based on recommendations by the Compensation Committee.

 

The Plan will be reviewed annually by the Compensation Committee to ensure proper alignment with the Bank’s business objectives.

 

The Compensation Committee will recommend to the Board of Directors for approval all final award distributions paid to Plan participants.  Any determination by the Board of Directors will be final and binding.

 

 

Program Changes or Discontinuance

 

The Bank has developed the Plan on the basis of existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, the Bank may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time.  Examples of substantial changes may include mergers, dispositions or other corporate transactions, changes in laws or accounting principles or other events that would in the absence of some adjustment, frustrate the intended operation of this arrangement.

 

The Board of Directors may, at its sole discretion, waive, change or amend any of the Plan as it deems appropriate. 

 

 

 

  

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Plan Interpretation

 

If there is any ambiguity as to the meaning of any terms or provisions of this Plan or any questions as to the correct interpretation of any information contained therein, the Bank's interpretation expressed by the Board of Directors will be final and binding.

 

Participation

 

CEO and COO participation is determined by the Compensation Committee.  Named executive officers are recommended by CEO and approved by the Compensation Committee for final approval by the Board of Directors.  Other executives may participate upon approval of the CEO and/or COO.

 

New employees must be employed by April 1st of the performance period (July 1 – June 30) to be considered for participation in a given Plan year.

 

 

Award Determinations

 

Plan participants are eligible for a distribution under the Plan only upon attainment of certain performance objectives defined under the Plan and after the approval of the award by the Board of Directors.

 

Performance at Threshold, Target and Stretch are interpolated to encourage and reward incremental performance improvement.

 

 

Award Distributions

 

Awards are paid in cash (generally) within two and one half months following the end of the fiscal year or as soon as practical after approval of the award payout by the Board of Directors.

 

Awards are paid out as a percentage of a participant’s annual base earnings as of June 30th.  Base earnings are defined as base salary in effect as of June 30th and excludes referral fees, commissions and any other previously-paid performance compensation.

 

Incentive awards are considered taxable income to participants in the year paid and will be subject to tax withholding.

 

 

New Hires, Reduced Work Schedules, Promotions, and Transfers

 

New hires that meet the eligibility criteria and are hired prior to April 1st of the Plan year receive a pro-rated award based on the number of full months worked during the Plan year.  New hires employed by the Bank on or after April 1st are not eligible to receive an award for the current Plan year.

 

Participants that are promoted or change roles where the participant becomes eligible or ineligible for an award or experience a change in incentive opportunity will receive a pro-rated award based on their status and the effective date of the promotion or role change.  Award amounts will be calculated using the participant’s base earnings and the incentive target for the applicable period.  Base earnings refers to the base salary in effect of June 30thand excludes referral fees, commissions and any other previously-paid performance compensation.

 

  

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Participants that have an approved leave of absence are eligible to receive a pro-rated award calculated using their time in active status as permitted by the Family Medical Leave Act or other applicable state and federal laws and regulations.

 

Termination of Employment

 

To encourage employee retention, a participant must be an active employee of the Bank on the date the incentive award is paid to receive an award (please see exceptions for death, disability and retirement below.)  Participants who terminate employment during the Plan year will not be eligible to receive an award.  Participants who have given notice of resignation during the Plan year and before payout are not eligible to receive an award.

 

 

Death, Disability or Retirement

 

If a participant ceases to be employed by the Bank due to disability, his/her cash incentive award for the Plan year will be pro-rated to the date of termination.

 

In the event of death, the Bank will pay to the participant’s estate the pro rata portion of the cash award that had been earned by the participant during his/her period of employment.

 

Individuals who retire are eligible to receive a cash incentive payout if they are actively employed through March 31st of the performance period.

 

 

Clawback

 

In the event that the Bank is required to prepare an accounting restatement due to the material noncompliance of the Bank with any financial reporting requirement under the securities laws, the Participants shall, unless otherwise determined in the sole discretion of the Committee, reimburse the Bank upon receipt of written notification for any excess incentive payment amounts paid under the Plan calculation(s) which were based on financial results required to be restated.  In calculating the excess amount, the Committee shall compare the calculation of the incentive payment based on the relevant results reflected in the restated financials compared to the same results reflected in the original financials that were required to be restated.  Participants may write a check payable to the Bank for amounts equal to the written notification.  In its discretion, the Compensation Committee has the right to adjust compensation and/or modify a Participant’s future incentive payments as it deems necessary.

 

Ethics Statement

 

The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject the employee to disciplinary action up to and including termination of employment.  In addition, any incentive compensation as provided by this Plan to which the employee would otherwise be entitled will be revoked or if paid, be obligated to repay any incentive award earned during the award period in which the wrongful conduct occurred regardless of employment status.

 

 

Miscellaneous

 

Any participant awards shall not be subject to assignment, pledge or other disposition, nor shall such amounts be subject to garnishment, attachment, transfer by operation of law, or any legal process.

 

  

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Participation in the Plan does not confer rights to participation in other Bank programs or plans, including annual or long-term incentive plans, non-qualified retirement or deferred compensation plans or other executive perquisite programs.

 

The Plan will not be deemed to give any participant the right to be retained in the employ of the Bank, nor will the Plan interfere with the right of the Bank to discharge any participant at any time for any reason.

 

In the absence of an authorized, written employment contract, the relationship between employees and the Bank is one of at-will employment. The Plan does not alter the relationship.

 

This Plan and the transactions and payments hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state in which the participant is employed.

 

Each provision in this Plan is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby.

 

This Plan is proprietary and confidential to HomeTrust Bancshares, Inc. and its employees and should not be shared outside the organization other than as required by executive compensation reporting and disclosure requirements.

 

 

 

 

 

  

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Schedule A: 2013 Proposed Award Percentages and Performance Measures Weightings

	  	  	  	  	
Management Incentive Plan

	  	  	  	  	
Target

	  	
Weighting

	
Participant

	  	
Title

	  	
%

	  	
Corporate

	  	
Team/Indiv.

	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  
	
Ed Brodwell

	  	
COB/CEO

	  	
55%

	  	
100%

	  	
0%

	
Dana Stonestreet

	  	
COO/President

	  	
55%

	  	
100%

	  	
0%

	
Tony VunCannon

	  	
SVP/Chief Financial Officer

	  	
30%

	  	
60%

	  	
40%

	
Hunter Westbrook

	  	
Chief Banking Officer

	  	
30%

	  	
60%

	  	
40%

	
Charles Abbitt

	  	
SVP/Chief Credit Officer

	  	
30%

	  	
60%

	  	
40%

	
Howard Sellinger

	  	
SVP/Chief Information Officer

	  	
30%

	  	
60%

	  	
40%

	
Teresa White

	  	
SVP/Chief Administration Officer

	  	
30%

	  	
60%

	  	
40%

  

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Schedule B: Bank Goals, Weightings and Definitions

	  	  	
Weight

	
Performance Measures

	  	
CEO/

COO

	  	
Other

SOC

	  	  	  	  	  
	
Net Income

	  	
40%

	  	
24%

	  	  	  	  	  
	
Peer ROA

	  	
40%

	  	
24%

	  	  	  	  	  
	
Discretionary Component

	  	
20%

	  	
12%

	  	  	  	  	  
	
Team/Individual

	  	
0%

	  	
 40%

	  	  	  	  	  
	  	  	
100%

	  	
100%

Note:

Payouts for performance between Threshold and Target and Target and Stretch will be calculated using straight line interpolation.

  

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Schedule C: Example Payout Calculation

	
Name

	  	  
	  	  	  
	
Base Salary

	
$184,860

	  
	
STI Opportunity

	
30%

	
$55,458.00

	  	  	  
	
Corporate Weighting

	
60%

	
$33,274.80

	
Team/Individual Weighting

	
40%

	
$22,183.20

	
Performance Measures

	
Incentive

at Target

	
Weight

	
Actual

Performance

	
Payout

Calculation

	
Payout

	  	  	  	  	  	  
	
Corporate

	  	  	  	  	  
	
Net Income

	
$13,310

	
24%

	
Target

	
$13,310 x100%

	
$13,310

	
Peer ROA

	
$13,310

	
24%

	
Exactly Btw. Threshold and Target

	
$13,310 x 75%

	
$9,982

	
Discretionary Component

	
$6,655

	
12%

	
Exactly Btw. Target and Stretch

	
$6,655 x 125%

	
$8,319

	  	  	  	  	  	  
	
Corporate Goal Achievement

	
$33,275

	
60%

	  	  	
$31,611

	  	  	  	  	  	  
	
Team/Individual

	  	  	  	  	  
	  	  	  	  	  	  
	
Goal 1

	
$11,092

	
20%

	
Below Threshold

	
$11,092 x 0%

	
$      -

	  	  	  	  	  	  
	
Goal 2

	
$11,092

	
20%

	
Over Stretch

	
$11,092 x 150%

	
$16,637

	  	  	  	  	  	  
	
Team/Individual Achievement

	
$22,183

	
40%

	  	  	
$16,637

	  	  	  	  	  	  
	  	  	  	  	  	  
	
Grand Total

	
$55,458

	
100%

	  	  	
$48,248

  

11NON-QUALIFIED STOCK OPTION AGREEMENT

EXHIBIT 10.3

NON-QUALIFIED STOCK OPTION AGREEMENT

THIS STOCK OPTION AGREEMENT (the “Agreement”) entered into as of July 1, 201_ (the “Grant Date”) between GelTech Solutions, Inc. (the “Company”) and _________ (the “Optionee”). 

WHEREAS, by action taken by the Board of Directors (the “Board”) it has adopted the 2007 Equity Incentive Plan (the “Plan”); and

WHEREAS, pursuant to the Plan, it has been determined that in order to enhance the ability of the Company to attract and retain qualified employees, consultants and directors, the Company has granted the Optionee the right to purchase the common stock of the Company pursuant to stock options.

NOW THEREFORE, in consideration of the mutual covenants and promises hereafter set forth and for other good and valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows:

1.

Grant of Non-Qualified Options.  The Company irrevocably granted to the Optionee, as a matter of separate agreement and not in lieu of salary or other compensation for services, the right and option to purchase all or any part of _______ shares of authorized but unissued or treasury common stock of the Company (the “Options”) on the terms and conditions herein set forth.  The Options are not intended to be Incentive Stock Options as defined by Section 422 of the Internal Revenue Code of 1986 (the “Code”).  This Agreement replaces any stock option agreement previously provided to the Optionee, if any, with respect to these Options.  Of the Options: (i) _____ were granted for service as a director and (ii) ____ were granted for service as a committee member.  

2.

Price.  The exercise price of the Options is $___ per share. 

3.

Vesting - When Exercisable.  

(a)

The Options shall vest on June 30, 201_, subject to the Optionee’s continued service in the capacity for which the Options were granted on the applicable vesting date.  Any fractional vesting shall be rounded up to the extent necessary.  Notwithstanding any other provision in this Agreement, the Options shall vest immediately on the occurrence of a Change of Control as defined under the Plan. Additionally, all Options shall vest immediately on the date the Company publicly announces, by press release, by disclosure in a filing with the Securities and Exchange Commission or otherwise (the “Public Announcement”), its intention to sell substantially all of the Company’s assets or to enter into a merger or consolidation as described in clauses (i) and (ii) under the definition of Change of Control in the Plan.  If the Optionee exercises the Options within 10 calendar days from the date of the Public Announcement, the Optionee shall be deemed a record holder of the shares underlying the Options as of the record date of the Change of Control. 

(b)

Subject to Sections 3(c) and 4 of this Agreement, Options may be exercised prior to vesting and remain exercisable until 6:00 p.m. New York time for ten years from the Grant Date (the “Expiration Date”).

(c)

However, notwithstanding any other provision of this Agreement at the discretion of the Board, all Options, whether vested or unvested shall be immediately forfeited in the event of:

(1)

The Optionee purchases or sells securities of the Company not in accordance with the Company’s insider trading guidelines then in effect;

(2)

The Optionee breaches any duty of confidentiality including that required by the Company’s insider trading guidelines then in effect;

(3)

The Optionee competes with the Company; or

(4)

The Optionee recruits Company personnel for another entity after ceasing to perform services for the Company.   

4.

Termination of Relationship.

(a)

If for any reason, except death or disability as provided below, the Optionee ceases performing services for the Company in the capacity for which the Options were granted, all rights granted hereunder shall terminate effective three months from that date.

(b)

If the Optionee ceases to provide services for the Company as a result of his death, the Optionee’s estate or any Transferee, as defined herein, shall have the right within three months from the date of the Optionee’s death to exercise the Optionee’s vested Options subject to Section 3(c).  For the purpose of this Agreement, “Transferee” shall mean a person to whom such shares are transferred by will or by the laws of descent and distribution.

(c)

If the Optionee ceases to provide services as a result of being disabled within the meaning of Section 22(e)(3) of the Code, all rights granted hereunder shall terminate effective one year from that date.

(d)

Notwithstanding anything contained in this Section 4, the Options may not be exercised after the Expiration Date.

(e)

Any of the Options that were not vested immediately prior to ceasing to perform the services for which the Options were granted shall terminate at that time.  

5.

Profits on the Sale of Certain Shares; Redemption.  If any of the events specified in Section 3(c) of this Agreement occur within one year from the last date the Optionee performs services for the Company in the capacity for which the Options were granted (the “Termination Date”), all profits earned from the sale of the Company’s securities, including the sale of shares of common stock underlying the Options, during the two-year period commencing one year prior to the Termination Date shall be forfeited and forthwith paid by the Optionee to the Company.  Further, in such event, the Company may at its option redeem shares of common stock acquired upon exercise of the Options by payment of the exercise price to the Optionee.  The Company’s rights under this Section 5 do not lapse one year from the Termination Date but are a contract right subject to any appropriate statutory limitation period.

6.

Method of Exercise.  The Options shall be exercisable by a written notice which shall:

(a)  

state the election to exercise the Options, the number of shares to be exercised, the person in whose name the stock certificate or certificates for such shares of common stock is to be registered, address and social security number of such person (or if more than one, the names, addresses and social security numbers of such persons);

(b)  

if applicable, contain such representations and agreements as to the holder’s investment intent with respect to such shares of common stock as set forth in Section 11 hereof;

(c)  

be signed by the person or persons entitled to exercise the Options and, if the Options are being exercised by any person or persons other than the Optionee, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons to exercise the Options; 

(d) 

be accompanied by full payment of the exercise price in United States dollars in cash or by check.  

(e)

be accompanied by payment of any amount that the Company, in its sole discretion, deems necessary to comply with any federal, state or local withholding requirements for income and employment tax purposes.  If the Optionee fails to make such payment in a timely manner, the Company may: (i) decline to permit exercise of the Options or (ii) withhold and set-off against compensation and any other amounts payable to the Optionee the amount of such required payment. Such withholding may be in the shares underlying the Options at the sole discretion of the Company.

The certificate or certificates for shares of common stock as to which the Options shall be exercised shall be registered in the name of the person or persons exercising the Options.

7.

Sale of Shares Acquired Upon Exercise of Options.  If the Optionee is an officer (as defined by Section 16(b) of the Securities Exchange Act of 1934 (“Section 16(b)”)) or a director of the Company, any shares of the Company’s common stock acquired pursuant to the Options granted hereunder as set forth herein cannot be sold by the Optionee until at least six months elapse from the Grant Date except in case of death or disability or if the grant was exempt from the short-swing profit provisions of Section 16(b). 

8.

Anti-Dilution Provisions.  The Options shall have the anti-dilution rights set forth in the Plan.

9.  

Necessity to Become Holder of Record.  Neither the Optionee, the Optionee’s estate, nor any Transferee shall have any rights as a shareholder with respect to any shares underlying the Options until such person shall have become the holder of record of such shares.  No dividends or cash distributions, ordinary or extraordinary, shall be provided to the holder if the record date is prior to the date on which such person became the holder of record thereof.

10.  

Reservation of Right to Terminate Relationship.  Nothing contained in this Agreement shall restrict the right of the Company to terminate the relationship of the Optionee at any time, with or without cause.  The termination of the relationship of the Optionee by the Company, regardless of the reason therefor, shall have the results provided for in Sections 3 and 4 of this Agreement.  

11.  

Conditions to Exercise of Options.  In order to enable the Company to comply with the Securities Act of 1933 (the “Securities Act”) and relevant state law, the Company may require the Optionee, the Optionee’s estate, or any Transferee as a condition of the exercising of the Options granted hereunder, to give written assurance satisfactory to the Company that the shares subject to the Options are being acquired for his/her own account, for investment only, with no view to the distribution of same, and that any subsequent resale of any such shares either shall be made pursuant to a registration statement under the Securities Act and applicable state law which has become effective and is current with regard to the shares being sold, or shall be pursuant to an exemption from registration under the Securities Act and applicable state law.

The Options are subject to the requirement that, if at any time the Board shall determine, in its discretion, that the listing, registration, or qualification of the shares of common stock underlying the Options upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with the issue or purchase of shares underlying the Options, the Options may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected.  

12.  

Transfer.  No transfer of the Options by the Optionee by will or by the laws of descent and distribution shall be effective to bind the Company unless the Company shall have been furnished with written notice thereof and a copy of the letters testamentary or such other evidence as the Board may deem necessary to establish the authority of the estate and the acceptance by the Transferee or Transferees of the terms and conditions of the Options.

13.  

Duties of the Company.  The Company will at all times during the term of Options:

(a)  

Reserve and keep available for issue such number of shares of its authorized and unissued common stock as will be sufficient to satisfy the requirements of this Agreement;

(b)  

Pay all original issue taxes with respect to the issue of shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection therewith;

(c)  

Use its best efforts to comply with all laws and regulations which, in the opinion of counsel for the Company, shall be applicable thereto.

14.

Parties Bound by Plan.  The Plan and each determination, interpretation or other action made or taken pursuant to the provisions of the Plan shall be final and shall be binding and conclusive for all purposes on the Company and the Optionee and the Optionee’s respective successors in interest.

15.

Severability.  In the event any parts of this Agreement are found to be void, the remaining provisions of this Agreement shall nevertheless be binding with the same effect as though the void parts were deleted.

16.

Arbitration.  Any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy, claim or dispute to binding arbitration in Palm Beach County, Florida (unless the parties agree in writing to a different location), before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect.  The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof.  Any arbitration proceeding brought under this Agreement shall be subject to all statutes of limitation in the same manner as if an action were filed in court.  

17.

Benefit.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors and assigns.

18.

Notices and Addresses.  All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar receipted delivery, or by facsimile delivery as follows:

					
	 
	The Optionee:

	 
	______________

	 

	 
	 
	 
	______________

	 

	 
	 
	 
	______________

	 

	 
	 
	 
	 
	 

	 
	The Company:

	 
	GelTech Solutions, Inc.

	 

	 
	 
	 
	1460 Park Lane South, Suite 1

	 

	 
	 
	 
	Jupiter, FL 33458

	 

	 

	 
	 
	Attention: Michael Cordani

	 

	 
	 
	 
	Facsimile: (561) 427-6182

	 

	 
	 
	 
	 
	 

	 
	with a copy to:

	 
	Michael D. Harris, Esq.

	 

	 
	 
	 
	Nason, Yeager, Gerson, White & Lioce P.A.

	 

	 
	 
	 
	1645 Palm Beach Lakes Blvd., Suite 1200

	 

	 
	 
	 
	West Palm Beach, FL 33401

	 

	 
	 
	 
	Facsimile:  (561) 471-0894

	 

or to such other address as either of them, by notice to the other may designate from time to time.  The transmission confirmation receipt from the sender’s facsimile machine shall be evidence of successful facsimile delivery.  Time shall be counted to, or from, as the case may be, the delivery in person or by mailing.

19.

Attorney’s Fees.  In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing party shall be entitled to a reasonable attorney’s fee, costs and expenses.

20.

Governing Law.  This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution, its validity, the obligations provided herein or performance shall be governed or interpreted according to the laws of the State of Delaware without regard to choice of law considerations.  

21.

Oral Evidence.  This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof.  Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge or termination is sought.

22.

Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual or facsimile signature.

23.

Section or Paragraph Headings.  Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

24.

Stop-Transfer Orders.  

(a)

The Optionee agrees that, in order to ensure compliance with the restrictions set forth in the Plan and this Agreement, the Company may issue appropriate “stop transfer” instructions to its duly authorized transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

(b)

The Company shall not be required (i) to transfer on its books any shares of the Company’s common stock that have been sold or otherwise transferred in violation of any of the provisions of the Plan or the Agreement or (ii) to treat the owner of such shares of common stock or to accord the right to vote or pay dividends to any purchaser or other Transferee to whom such shares of common stock shall have been so transferred.

[Signature Page To Follow]

IN WITNESS WHEREOF the parties hereto have set their hand and seals the day and year first above written.

				
	WITNESSES:

	 
	COMPANY 

	  

	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By: 

	 

	 
	 
	 
	Michael Cordani

	 
	 
	 
	Chief Executive Officer

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	OPTIONEE:

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