Document:

Exhibit
10.19

 

EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (this “Agreement”) dated as of March 13, 2006, is by and between
Isolagen, Inc., a Delaware corporation (together with its subsidiaries, the “Company”
or “Isolagen”), and Todd J. Greenspan, an individual residing in Hockessin,
Delaware (the “Executive”).

 

W I T N E
S S E T H:

 

WHEREAS, the Executive
desires to serve the Company as its Vice President, Finance and Corporate
Controller; and

 

WHEREAS, the Company
desires to employ Executive as its Vice President, Finance and Corporate
Controller;

 

NOW THEREFORE in
consideration of the mutual benefits to be derived from this Agreement, the
Company and the Executive hereby agree as follows:

 

1.             Term
of Employment; Office and Duties.

 

(a)           Commencing
on the date hereof (the “Employment Date”), and for an initial term ending
December 31, 2008 the Company shall employ the Executive as an executive of the
Company with the title of Vice President, Finance and Corporate Controller,
with the duties and responsibilities prescribed for such offices in the Bylaws
of the Company and such additional duties and responsibilities consistent with
such positions as may from time to time be assigned to the Executive by the
Board of Directors. Specifically included in the Executive’s responsibilities
shall be the identification, recruitment and retention of the members of the
finance and accounting team of the Company, with the advice and consent of the
Board of Directors. Executive agrees to perform such duties and discharge such
responsibilities in accordance with the terms of this Agreement. This Agreement
shall be renewed for an additional one (1) year term, by the mutual written
agreement of the Executive and the Company at least thirty (30) days prior to
its expiration.

 

(b)           The
Executive shall devote substantially all of his working time to the business
and affairs of the Company other than during vacations of four weeks per year
and periods of illness or incapacity; provided, however, that
nothing in this Agreement shall preclude the Executive from devoting time
required:  (i) delivering lectures or
fulfilling speaking engagements;  or (ii)
engaging in charitable and community activities provided that such
activities do not interfere with the performance of his duties hereunder.

 

2.             Compensation
and Benefits.

 

For
all services rendered by the Executive in any capacity during the period of
Executive’s employment by the Company, including without limitation, services
as an 

 

 

executive officer or member of any committee of the
Board of Directors or any subsidiary, affiliate or division thereof, from and
after the Effective Date, the Executive shall be compensated as follows:

 

(a)           Base
Salary. The Company shall pay the Executive a fixed salary (“Base Salary”)
at a rate of One Hundred Eighty Thousand Dollars ($180,000) per year. The Board
of Directors may periodically review the Executive’s Base Salary and may
determine to increase (but not decrease) the Executive’s salary, in accordance
with such policies as the Company may hereafter adopt from time to time, if it
deems appropriate. Base Salary will be payable in accordance with the customary
payroll practices of the Company.

 

(b)           Executive
will also be entitled to receive an annual bonus (“the “Annual Bonus”), payable
each year subsequent to the issuance of final audited financial statements, but
in no case later than 120 days after the end of the Company’s most recently
completed fiscal year based upon a 35% target bonus, with the targets for any
given fiscal year being established by the chief executive officer and agreed
to by the Compensation Committee. The final determination on the amount of the
Annual Bonus will be made by the Compensation Committee of the Board of
Directors, within ninety (90) days of the end of each fiscal year. The
Compensation Committee may also consider other more subjective factors in
making its determination.

 

(c)           Fringe
Benefits, Option Grants and Miscellaneous Employment Matters.

 

(i)            The
Executive shall be entitled to participate in such disability, health and life
insurance and other fringe benefit plans or programs, including a Section
401(k) retirement plan, of the Company established from time to time by the
Board of Directors, if any, to the extent that his position, tenure, salary,
age, health and other qualifications make him eligible to participate, subject
to the rules and regulations applicable thereto. In addition, the Executive
shall be entitled to the following benefits:

 

(ii)           The
Executive shall be eligible for grants of restricted stock and stock options in
the discretion of the Compensation Committee or the Board  as appropriate. The Executive previously has
received stock options and restricted stock grants, including a recent grant of
15,000 shares of restricted stock subject to the vesting provisions set forth
in the grant.

 

(d)           Withholding
and Employment Tax. Payment of all compensation hereunder shall be subject
to customary withholding tax and other employment taxes as may be required with
respect to compensation paid by an employer/corporation to an employee.

 

(e)           Disability.              The
Company shall, to the extent such benefits can be obtained at a reasonable
cost, provide the Executive with disability insurance benefits.

 

(f)            Death.    The
Company shall, to the extent such benefits can be obtained at a reasonable
cost, provide the Executive with life insurance benefits.

 

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(g)           Vacation.               Executive
shall receive four (4) weeks of vacation annually, administered in accordance with
the Company’s existing vacation policy.

 

3.             Business
Expenses.

 

The
Company shall pay or reimburse all reasonable travel and entertainment expenses
incurred by the Executive in connection with the performance of his duties
under this Agreement, including travel between Executive’s current domicile in
the Hockessin, Delaware metropolitan area, travel to the Company’s various
offices (other than his primary assigned office in Exton, PA) and facilities in
the United states and abroad, reimbursement for attending out-of-town meetings
of the Board of Directors, and such other travel as may be required or
appropriate to fulfill the responsibilities of his office, all in accordance
with such policies and procedures as the Company may from time to time establish
for senior officers and as required to preserve any deductions for federal
income taxation purposes to which the Company may be entitled and subject to
the Company’s normal requirements with respect to reporting and documentation
of such expenses. The Company shall pay to Executive a non-accountable
automobile allowance of four hundred ($400) dollars per month for all expenses
incurred by the Executive for Executive’s automobile (including lease payments,
insurance, maintenance, and gasoline).The Company shall also pay or reimburse
Executive for reasonable membership fees and dues in appropriate professional
associations and organizations utilized by Executive in the course of his
service for the Company including reasonable expenses of Continuing Education
Courses to satisfy requirement of his State Society CPE requirements..

 

4.             Termination
of Employment.

 

Notwithstanding
any other provision of this Agreement, Executive’s employment with the Company
may be terminated upon written notice to the other party as follows:

 

(a)           By
the Company, in the event of the Executive’s death or Disability (as
hereinafter defined) or for Cause (as hereinafter defined). For purposes of
this Agreement, “Cause” shall mean either: (i) the indictment of, or the
bringing of formal charges against, Executive by a governmental authority of
competent jurisdiction for charges involving criminal fraud or embezzlement;
(ii) the conviction of Executive of a crime involving an act or acts of
dishonesty, fraud or moral turpitude by the Executive, which act or acts
constitute a felony; (iii) Executive having willfully caused the Company,
without the approval of the Board of Directors, to fail to abide by either a
valid contract to which the Company is a party or the Company’s Bylaws or; (iv)
Executive having committed acts or omissions constituting gross negligence or
willful misconduct with respect to the Company; (v) Executive having committed
acts or omissions constituting a material breach of Executive’s duty of loyalty
or fiduciary duty to the Company or any material act of dishonesty or fraud
with respect to the Company which are not cured in a reasonable time, which
time shall be 30 days from receipt of written notice from the Company of such
material breach; or (vi) Executive having committed acts or omissions
constituting a material breach of this Agreement, including any failure of the
Executive to follow a directive from the Board of Directors and/or its Audit 

 

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Committee, which are not cured in a reasonable time,
which time shall be 30 days from receipt of written notice from the Company of
such material breach (vii) Executive having failed to meet agreed upon minimum
performance criteria. A determination that Cause exists as defined in clauses
(iv), (v), (vi) or (vii) (as to this Agreement) of the preceding sentence shall
be made in good faith and by at least a majority of the members of the Board of
Directors. For purposes of this Agreement, “Disability” shall mean the
inability of Executive, in the reasonable judgment of a physician appointed by
the Board of Directors, to perform his duties of employment for the Company or
any of its subsidiaries because of any physical or mental disability or
incapacity, where such disability shall exist for an aggregate period of more
than 120 days in any 365-day period or for any period of 90 consecutive days.
The Company shall by written notice to the Executive specify the event relied
upon for termination pursuant to this Section 4(a), and Executive’s employment
hereunder shall be deemed terminated as of the date of such notice. In the
event of any termination under this Subsection 4(a), the Company shall pay all
amounts then due to the Executive under Section 2(a) of this Agreement for any
portion of the payroll period worked but for which payment had not yet been
made up to the date of termination, and, if such termination was for Cause, the
Company shall have no further obligations to Executive under this Agreement,
and any and all options granted hereunder shall terminate according to their
terms. In the event of a termination due to Executive’s Disability or death,
the Company shall comply with its obligations under Sections 2(e) and 2(f).

 

(b)           By
the Company, in the absence of Cause, for any reason and in its sole and
absolute discretion, provided that in such event the Company shall, as
liquidated damages or severance pay, or both, continue to pay to Executive the
Base Salary (at a monthly rate equal to the rate in effect immediately prior to
such termination) for the lesser of the remaining term as defined above or
twelve months from the date of termination (the “Termination Payments”), when,
as and if such payments would have been made in the absence of Executive’s
termination subject to the following limitation:  if the Executive becomes employed following
termination, all Termination Payments shall cease except that Executive shall
receive at least six months of Termination Payments notwithstanding reemployment.
Executive shall be obliged to make best efforts to attempt to mitigate the
amount of Termination Payments due hereunder.

 

5.             Non-Competition.

 

During
the period of Executive’s employment hereunder and during the period, if any,
during which payments are required to be made to the Executive by the Company
pursuant to Sections 4(b) or 4(c), the Executive shall not, within any state or
foreign jurisdiction in which the Company or any subsidiary of the Company is
then providing services or products or marketing its services or products (or
engaged in active discussions to provide such services), or within a one
hundred (100) mile radius of any such state, directly or indirectly own any
interest in, manage, control, participate in, consult with, render services
for, or in any manner engage in any business engaged in any business engaged in
by the Company (unless the Board of Directors shall have authorized such
activity and the Company shall have consented thereto in writing). The term “business
engaged in by the Company” shall mean the development and 

 

4

 

commercialization of autologous fibroblast system
technology for application in, among other therapies, dermatology, surgical and
post-traumatic scarring, skin ulcers, cosmetic surgery, periodontal disease,
reconstructive dentistry, vocal chord injuries, urinary incontinence, and
digestive and gastroenterological disorders and other applications relating to
the market for autologous fibroblast or UMC cells and the five derivative cell
lines: osteoblast, chondroblast, fibroblast, adipocyte, and neuroectoderm.
Investments of less than five percent of the outstanding securities of any
class of a corporation subject to the reporting requirements of Section 13 or
Section 15(d) of the Securities Exchange Act of 1934, as amended, shall not be
prohibited by this Section 5. At the option of Executive and so long as
Executive shall have executed the mutual release required under Section 4(d),
Executive’s obligations under this Section 5 arising after the termination of
Executive shall be suspended during any period in which the Company fails to
pay to him Termination Payments required to be paid to him pursuant to this
Agreement. The provisions of this Section 5 are subject to the provisions of
Section 14 of this Agreement.

 

6.             Inventions
and Confidential Information.

 

The
parties hereto recognize that a major need of the Company is to preserve its
specialized knowledge, trade secrets, and confidential information. The
strength and good will of the Company is derived from the specialized
knowledge, trade secrets, and confidential information generated from
experience with the activities undertaken by the Company and its subsidiaries.
The disclosure of this information and knowledge to competitors would be beneficial
to them and detrimental to the Company, as would the disclosure of information
about the marketing practices, pricing practices, costs, profit margins, design
specifications, analytical techniques, and similar items of the Company and its
subsidiaries. The Executive acknowledges that the proprietary information,
observations and data obtained by him while employed by the Company concerning
the business or affairs of the Company are the property of the Company. By
reason of his being a senior executive of the Company, the Executive has or
will have access to, and has obtained or will obtain, specialized knowledge,
trade secrets and confidential information about the Company’s operations and
the operations of its subsidiaries, which operations extend throughout the
United States. [For purposes of this Section 6, “Company” shall mean to Company
and each of its controlled subsidiaries.] 
Therefore, subject to the provisions of Section 14 hereof, the Executive
hereby agrees as follows, recognizing that the Company is relying on these
agreements in entering into this Agreement:

 

(i)            The
Executive will not use, disclose to others, or publish or otherwise make
available to any other party any inventions or any confidential business
information about the affairs of the Company, including but not limited to
confidential information concerning the Company’s products, methods,
engineering designs and standards, analytical techniques, technical
information, customer information, employee information, and other confidential
information acquired by him in the course of his past or future services for
the Company. Executive agrees to hold as the Company’s property all books,
papers, letters, formulas, memoranda, notes, plans, records, reports, computer
tapes, printouts, software and other documents, and all copies thereof and
therefrom, in any way relating to the Company’s 

 

5

 

business and affairs, whether made by him or otherwise
coming into his possession, and on termination of his employment, or on demand
of the Company, at any time, to deliver the same to the Company within twenty
four (24) hours of such termination or demand.

 

(ii)           During
the period of Executive’s employment with the Company and for twenty-four (24)
months thereafter, (a) the Executive will not directly or indirectly through
another entity induce or otherwise attempt to influence any employee of the
Company to leave the Company’s employ and (b) the Executive will not directly
or indirectly hire or cause to be hired or induce a third party to hire, any
such employee (unless the Board of Directors shall have authorized such
employment and the Company shall have consented thereto in writing) or in any
way interfere with the relationship between the Company and any employee
thereof and (c) induce or attempt to induce any customer, supplier, licensee,
licensor or other business relation of the Company to cease doing business with
the Company or in any way interfere with the relationship between any such customer,
supplier, licensee or business relation of the Company.

 

7.             Indemnification.

 

The Company will
indemnify (and advance the costs of defense of) the Executive (and his legal
representatives) to the extent required by the laws of the state in which the Company
is incorporated, as in effect at the time of the subject act or omission, or by
the Certificate of Incorporation and Bylaws of the Company, as in effect at
such time or on the date of this Agreement, whichever affords greater
protection to the Executive, and the Executive shall be entitled to the
protection of any insurance policies the Company may elect to maintain
generally for the benefit of its executive officers, against all judgments,
damages, liabilities, costs, charges and expenses whatsoever incurred or
sustained by him or his legal representative in connection with any action,
suit or proceeding to which he (or his legal representatives or other
successors) may be made a party by reason of his being or having been an
officer of the Company or any of its subsidiaries except that the Company shall
have no obligation to indemnify Executive for liabilities resulting from
conduct of the Executive with respect to which a court of competent
jurisdiction has made a final determination that Executive committed gross
negligence or willful misconduct.

 

8.             Litigation
Expenses.

 

In the event of any
litigation or other proceeding between the Company and the Executive with
respect to the subject matter of this Agreement and the enforcement of the
rights hereunder and such litigation or proceeding results in final judgment or
order in favor of the Executive, which judgment or order is substantially
inconsistent with the positions asserted by the Company in such litigation or
proceeding, the Company shall reimburse the prevailing party for all of his/its
reasonable costs and expenses relating to such litigation or other proceeding,
including, without limitation, his/its reasonable attorneys’ fees and expenses.

 

6

 

9.             Consolidation;
Merger; Sale of Assets; Change of Control.

 

Nothing
in this Agreement shall preclude the Company from combining, consolidating or
merging with or into, transferring all or substantially all of its assets to,
or entering into a partnership or joint venture with, another corporation or
other entity, or effecting any other kind of corporate combination provided
that the corporation resulting from or surviving such combination,
consolidation or merger, or to which such assets are transferred, or such
partnership or joint venture assumes this Agreement and all obligations and
undertakings of the Company hereunder. Upon such a consolidation, merger,
transfer of assets or formation of such partnership or joint venture, this
Agreement shall inure to the benefit of, be assumed by, and be binding upon
such resulting or surviving transferee corporation or such partnership or joint
venture, and the term “Company,” as used in this Agreement, shall mean such
corporation, partnership or joint venture or other entity, and this Agreement
shall continue in full force and effect and shall entitle the Executive and his
heirs, beneficiaries and representatives to exactly the same compensation,
benefits, perquisites, payments and other rights as would have been their
entitlement had such combination, consolidation, merger, transfer of assets or
formation of such partnership or joint venture not occurred.

 

10.           Survival
of Obligations.

 

Sections 4, 5, 6, 7, 8,
9, 10, 11, 12 and 14 shall survive the termination for any reason of this
Agreement (whether such termination is by the Company, by the Executive, upon
the expiration of this Agreement or otherwise).

 

11.           Executive’s
Representations.

 

The
Executive hereby represents and warrants to the Company that (i) the execution,
delivery and performance of this Agreement by the Executive do not and shall
not conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which the Executive is a
party or by which he is bound, (ii) the Executive is not a party to or bound by
any employment agreement, non-compete agreement or confidentiality agreement
with any other person or entity and (iii) upon the execution and delivery of
this Agreement by the Company, this Agreement shall be the valid and binding
obligation of the Executive, enforceable in accordance with its terms. The
Executive hereby acknowledges and represents that he has consulted with legal
counsel regarding his rights and obligations under this Agreement and that he
fully understands the terms and conditions contained herein.

 

12.           Company’s
Representations.

 

The
Company hereby represents and warrants to the Executive that (i) the execution,
delivery and performance of this Agreement by the Company do not and shall not
conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which the Company is a
party or by which it is bound and (ii) upon the 

 

7

 

execution and delivery of this Agreement by the
Executive, this Agreement shall be the valid and binding obligation of the
Company, enforceable in accordance with its terms.

 

13.           Enforcement.

 

Because
the Executive’s services are unique and because the Executive has access to
confidential information concerning the Company, the parties hereto agree that
money damages would not be an adequate remedy for any breach of this Agreement.
Therefore, in the event of a breach or threatened breach of this Agreement, the
Company may, in addition to other rights and remedies existing in its favor,
apply to any court of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce, or prevent any violations of,
the provisions hereof (without posting a bond or other security).

 

14.           Severability.

 

In
case any one or more of the provisions or part of a provision contained in this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect in any jurisdiction, such invalidity, illegality or
unenforceability shall be deemed not to affect any other jurisdiction or any
other provision or part of a provision of this Agreement, nor shall such
invalidity, illegality or unenforceability affect the validity, legality or
enforceability of this Agreement or any provision or provisions hereof in any
other jurisdiction; and this Agreement shall be reformed and construed in such
jurisdiction as if such provision or part of a provision held to be invalid or
illegal or unenforceable had never been contained herein and such provision or
part reformed so that it would be valid, legal and enforceable in such
jurisdiction to the maximum extent possible. In furtherance and not in
limitation of the foregoing, the Company and the Executive each intend that the
covenants contained in Sections 5 and 6 shall be deemed to be a series of
separate covenants, one for each county of the State of Texas and one for each
and every other state, territory or jurisdiction of the United States and any
foreign country set forth therein. If, in any judicial proceeding, a court
shall refuse to enforce any of such separate covenants, then such unenforceable
covenants shall be deemed eliminated from the provisions hereof for the purpose
of such proceedings to the extent necessary to permit the remaining separate
covenants to be enforced in such proceedings. If, in any judicial proceeding, a
court shall refuse to enforce any one or more of such separate covenants
because the total time, scope or area thereof is deemed to be excessive or
unreasonable, then it is the intent of the parties hereto that such covenants,
which would otherwise be unenforceable due to such excessive or unreasonable
period of time, scope or area, be enforced for such lesser period of time,
scope or area as shall be deemed reasonable and not excessive by such court.

 

8

 

15.           Entire
Agreement; Amendment.

 

Except as otherwise set
forth in this Agreement, this Agreement contains the entire agreement between
the Company and the Executive with respect to the subject matter hereof and
thereof. This Agreement may not be amended, waived, changed, modified or
discharged except by an instrument in writing executed by or on behalf of the
party against whom enforcement of any amendment, waiver, change, modification
or discharge is sought. No course of conduct or dealing shall be construed to
modify, amend or otherwise affect any of the provisions hereof.

 

16.           Notices.

 

All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if physically delivered,
delivered by express mail or other expedited service or upon receipt if mailed,
postage prepaid, via registered mail, return receipt requested, addressed as
follows:

 

	
  (a)

  	
  To the Company:

  	
  (b)

  	
  To the Executive:

  
	
   

  	
   

  	
   

  	
   

  
	
  Isolagen, Inc.

  	
   

  	
  Todd J. Greenspan

  
	
  405 Eagleview Blvd.

  	
   

  	
  405 Willowbend Court

  
	
  Exton, PA 19341

  	
   

  	
  Hockessin, DE 19707

  
	
  Attention: Susan S.
  Ciallella

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with copy by like means
  to :

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Cozen O’Connor

  	
   

  	
   

  	
   

  
	
  1900 Market Street

  	
   

  	
   

  	
   

  
	
  Philadelphia, PA 19103

  	
   

  	
   

  	
   

  
	
  Attn: Cavas Pavri, Esq.

  	
   

  	
   

  	
   

  
					

 

and/or to such other
persons and addresses as any party shall have specified in writing to the
other.

 

17.           Assignability.

 

This
Agreement shall not be assignable by either party and shall be binding upon,
and shall inure to the benefit of, the heirs, executors, administrators, legal
representatives, successors and assigns of the parties. In the event that all
or substantially all of the business of the Company is sold or transferred,
then this Agreement shall be binding on the transferee of the business of the
Company whether or not this Agreement is expressly assigned to the transferee.

 

9

 

18.           Governing
Law.

 

This
Agreement shall be governed by and construed under the laws of the Commonwealth
of Pennsylvania.

 

19.           Waiver
and Further Agreement.

 

Any waiver of any breach
of any terms or conditions of this Agreement shall not operate as a waiver of
any other breach of such terms or conditions or any other term or condition,
nor shall any failure to enforce any provision hereof operate as a waiver of
such provision or of any other provision hereof. Each of the parties hereto
agrees to execute all such further instruments and documents and to take all
such further action as the other party may reasonably require in order to
effectuate the terms and purposes of this Agreement.

 

20.           Headings
of No Effect.

 

The paragraph headings
contained in this Agreement are for reference purposes only and shall not in
any way affect the meaning or interpretation of this Agreement.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Employment Agreement as of the date first
above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  ISOLAGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Susan S. Ciallella,
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE :

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Todd J. Greenspan

  

 

10Exhibit 10.6

 

STOCK
OPTION AGREEMENT

 

                STOCK
OPTION AGREEMENT made this (Grant Date),
between Valmont Industries, Inc., a Delaware corporation (“Corporation”), and (Employee
Name), an employee of the Corporation (“Employee”).

 

                The Corporation desires, by affording
the Employee an opportunity to purchase its common shares as hereinafter
provided, to carry out the purpose of the Valmont  2002 Stock Plan (the “Plan”).  This option is expressly designated not to be
an Incentive Stock Option as defined in I.R.C. §422A.

 

                NOW,
THEREFORE, in consideration of the mutual covenants hereinafter set forth and
for good and valuable consideration, the parties hereto agree as follows:

 

                1.             Grant of Option. 
The Corporation hereby irrevocably grants to the Employee, pursuant to
and subject to the terms of the Plan, the right and option, hereinafter called
the “Option,” to purchase all or any part of an aggregate of (X,XXX)
shares of common stock (the “Common Shares”) of the Corporation (such number
being subject to adjustment as provided in Paragraph 8 hereof) on the terms and
conditions herein set forth.  The holder
of the Option shall not have any of the rights of a stockholder with respect to
the shares covered by the Option until one or more certificates for such shares
shall be delivered to such holder upon the due exercise of the Option.

 

                2.             Purchase Price.  The
purchase price of the Common Shares covered by the Option shall be ($XX.XX)
per share.  The purchase price of the
shares as to which the Option shall be exercised shall be paid in full in cash
at the time of exercise or, at the discretion of the Corporation’s Compensation
Committee of the Board of Directors (the “Compensation Committee”), the
purchase price may be paid in common stock of the Employer already owned by the
Employee valued at its fair market value on the date of exercise (if such
common stock has been owned by the Employee for at least six months).

 

                3.             Term of Option.  The
term of the Option shall be for a period of seven (7) years from the date hereof
[Note: ten year term applicable to options issued prior to December 2005],
subject to earlier termination as provided in Paragraphs 5 & 6 hereof.

 

                4.             Non-Transferability. 
The Option shall not be transferable otherwise than by will or the laws
of descent and distribution, and the Option may be exercised, during the
lifetime of the Employee, only by such Employee.  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 process.  Any attempted assignment, transfer, pledge,
hypothecation or other disposition of the Option contrary to the provisions
hereof or the levy of any execution, attachment or similar process upon the
Option shall be null and void and without effect.

 

 

                5.             Exercisability. 
This Option shall be exercisable in staggered one-third (1/3)
increments, all with a period of exercisability commencing on the date of first
exercisability and ending on (Date of
expiration).  The following
exercise table is applicable:

 

	
   

  	
   

  	
   

  	
   

  	
  Last Date Options

  	
   

  
	
  Shares Granted

  	
   

  	
  Exercisable on or After

  	
   

  	
  May be Exercised

  	
   

  
	
  1/3 of total grant

  	
   

  	
  [one
  year after grant]

  	
   

  	
   

  	
   

  
	
  1/3 of total grant

  	
   

  	
  [two
  years after grant]

  	
   

  	
   

  	
   

  
	
  1/3 of total grant

  	
   

  	
  [three
  years after grant]

  	
   

  	
   

  	
   

  

 

In the event of any termination of the
Employee’s employment (voluntary or involuntary) prior to (Date of Expiration),
any portion of this Option not exercisable upon the date of such termination
shall never become exercisable.

 

                The
Option may be exercised, at any time or from time to time, as to any part or
all the shares exercisable; provided, however, that the Option may not be
exercised as to less than one hundred (100) shares at any one time (or the
remaining shares then purchasable under the Option, if less than one hundred
(100) shares).  The Option may not be
exercised unless at the date of exercise a Registration Statement under the
Securities Act of 1933, as amended, relating to the shares covered by the
Option shall be in effect or the Corporation shall have determined that an
exemption from such registration is available. 
Subject to the extension of the exercise periods set forth in Paragraph
6 hereof, the Option may not be exercised at any time unless the Employee shall
have been in the continuous employ of the Corporation or a subsidiary from the
time hereof to the date of the exercise of the Option.

 

                6.             Termination of Employment. 
In the event that the employment of the Employee shall be terminated
(other than by reason of death), the Option may, subject to the provisions of
Paragraph 5 hereof, be exercised by the Employee (to the extent that the
Employee shall have been entitled to do so at the termination of employment) at
or prior to the time of such termination; provided, if the Employee is
terminated by the Corporation without cause, the Employee shall have ninety
(90) days following such termination to exercise all options exercisable on the
date of termination and if the employment of the Employee terminates by reason
of the retirement of the Employee at or reaching age 55 and having completed
five years of service, all options exercisable on the date of such retirement
may be exercised until expiration of the term of the Option.  In the event of the Employee’s death or total
disability (using the definition of total disability of the Company's long-term
disability plan), the Option may, subject to the provisions of Paragraph 5
hereof, be exercised by the personal representative of the Employee’s estate
(to the extent the Employee would have been entitled to do so as of the date of
death) or the Employee in the case of disability at any time within three hundred
sixty-five (365) days following the date of the Employee’s death or termination
of employment due to total disability (but not more than seven years after the
date hereof).  So long as the Employee
shall continue to be an employee of the Corporation, or an affiliate, or a
subsidiary the Option shall not be affected by any change of duties or
position.  Nothing in this Option
Agreement shall confer upon the Employee any right to continue in the employ of
the Corporation or interfere in any way with the right of the Corporation to
terminate his/her employment at any time. 
The transfer of employment between any combination of the Corporation
and any affiliate or subsidiary shall not be deemed a termination of employment.  For purposes of this Agreement, “Cause” shall
include the Employee’s negligence, neglect of duty, incompetence, dishonesty,
violation of any 

 

2

 

of the terms of the Employee’s employment
agreement (if any) and the Employee’s indictment, conviction or plea of guilty
or nolo contendere to a misdemeanor involving moral turpitude or a felony.

 

                7.             Non-Compete.       The
Employee agrees that for a period of twelve (12) months after employment has
been terminated for any reason other than by the Corporation without cause, the
Employee will not, solicit for sale or sell products or services, which compete
with any of the Corporation’s products or services to those persons, companies,
firms or corporations who were or are customers of the Corporation and with
whom the Employee had personal contact during and as a result of his/her
employment with the Corporation.  The
Employee agrees that he/she will not solicit or sell to such customers on
behalf of himself/herself or on behalf of any other person, firm, company or
corporation.  Moreover, during said
twelve (12) month period, the Employee shall neither induce nor encourage any
employee employed by the Corporation to leave the Corporation’s
employment.  The Employee also agrees
that during said twelve (12) month period, he/she will not interfere with the
Corporation’s contractual or business relationships with its suppliers or
vendors.

 

                The
Employee acknowledges that a violation of the Employee’s covenants above, may
result in irreparable and continuing harm to the Corporation.  If the Employee violates any of these
covenants, the Corporation will be entitled to seek from any court of competent
jurisdiction (in addition to other remedies) injunctive relief, to restrain any
further violations by Employee and by any persons acting for or on Employee’s
behalf.  In the event the Corporation is
required to seek enforcement of any of the provisions of this agreement, the
Corporation will be entitled to recover from the Employee reasonable attorneys
fees plus costs and expenses.

 

The Employee recognizes that
the limitations in this Agreement are reasonable and necessary to protect the
legitimate business interests of the Corporation.  In the event that any of the foregoing
non-competition covenants are held to be unenforceable by any court of
competent jurisdiction, the Employee agrees and understands that such covenants
may be modified to impose limitations on the Employee’s activities no greater
than that allowable under applicable law.

 

8.             Adjustment in
Capitalization.  If any
adjustment in the Company’s capitalization as described in Section 5.3 of the
Plan occurs, appropriate adjustments shall be made (as provided in Section 5.3
of the Plan)  to the number of shares and
price per share of stock subject to this Option.

 

                9.             Method of Exercising Option.  Subject to the terms and conditions of the
Option Agreement, the Option may be exercised by written notice to the
Corporation, care of its Chief Financial Officer, One Valmont Plaza, Omaha,
Nebraska 68154.  Such notice shall state
the election to execute the Option and the number of shares in respect of which
it is being exercised, and shall be signed by the person or persons so
exercising the Option.  Such notice shall
either: (a) be accompanied by payment of the full purchase price of such
shares, in which event the Corporation shall deliver a certificate or
certificates representing such shares as soon as practicable after the notice
shall be received; or (b) fix a date (not less than five (5) nor more than ten
(10) business days from the date such notice shall be received by the Chief
Financial 

 

3

 

Officer) for the payment of the full purchase
price of such shares at the Company’s Transfer Agent Offices, against delivery
of a certificate or certificates representing such shares.  Payment of such purchase price shall, in
either case, be made by check payable to the order of the Corporation or, if
applicable pursuant to Paragraph 2 hereof, the transfer of the appropriate
shares of stock.  The 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 or persons so exercising the
Option (or, if the Option shall be exercised by the Employee and if the
Employee shall so request in the notice exercising the Option, shall be
registered in the name of the Employee and another person jointly, with right
of survivorship or in the name of the Employee’s spouse) and shall be delivered
as provided above to or upon the written order of the person or persons
exercising the Option.  All shares that
shall be purchased upon the exercise of the Option as provided herein shall be
fully paid and non-assessable.

 

                As
a condition of the issuance of shares hereunder, the Employee agrees to remit
to the Corporation at the time of any exercise of this Option any taxes
required to be withheld by the Corporation under federal, state or local law as
a result of exercise.  The Employee may
remit such amount by an appropriate reduction of the number of shares to be
delivered to the Employee upon exercise, or by the Employee delivering
sufficient shares of common stock of the Employer valued at its fair market
value (if such common stock has been owned by the Employee for at least six
months).

 

                10.           Retention
of Shares.  Upon an
exercise of all or part of this Option, if the Employee, at the time of
exercise, is not subject to the stock ownership guidelines of the Corporation,
as changed from time to time by the Corporation, the net shares obtained
through the exercise of the Option shall be retained, and not otherwise
disposed of, for a period of one year from the date of exercise.

 

                11.           General.  The Corporation shall at all times during the
term of the Option reserve and keep available such number of Common Shares as
will be sufficient to satisfy the requirements of this Option Agreement, shall
pay all original issue and transfer taxes with respect to the issue and
transfer of shares pursuant hereto and all other fees and expenses necessarily
incurred by the Corporation in connection therewith, and will use its best
efforts to comply with all laws and regulations which shall be applicable
thereto.

 

IN WITNESS WHEREOF, the
corporation and the Employee have signed this Option Agreement effective as of
the day and year first above written.

 

 

	
   

  	
   

  	
  VALMONT
  INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
  Employee

  	
   

  	
  Mogens Bay

  

 

 

4

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