Document:

EX-10.2 FORM OF NON-QUALIFIED STOCK OPTION

Exhibit 10.2

	 	 	 	 	 	 	 
	 

	 	Your Name:	 	 	 	 
	 	 	 	 	 
	 	 	Total No. of Shares Covered by the Option:	 	 
	 

	 	 	 	 	 	 

PRG-SCHULTZ NON-QUALIFIED STOCK OPTION AGREEMENT 

FOR EMPLOYEES

PRG-SCHULTZ INTERNATIONAL, INC. (“PRG-SCHULTZ”) is pleased to grant to the person signing below
(“you” or “Participant”) the nonqualified stock option described below under the PRG-Schultz 2008
Equity Incentive Plan (the “Plan”). For tax law purposes, this Option shall be treated as a
Non-Qualified Stock Option. This Option is not intended to be and shall not be treated as an
Incentive Stock Option for tax law purposes.

	 	 	 
	Grant Date:

	 	[                                        ], 20___
	Exercise Price per Share:

	 	$[                    ]
	Option Expiration Date:

	 	[                                        ], 20___
	Number of Shares of Common Stock:

	 	                                         (the “Shares”)

Vesting Schedule: Subject to the Plan and this Agreement, this Option may be exercised in whole or
in part in accordance with the following schedule, provided you remain continuously employed with
PRG-Schultz from the Grant Date until such time(s):

	 	 	 
	 	 	Cumulative Number of Shares
	On and after	 	Purchasable Upon Exercise of Option
	[                    ], 20___

	 	1/3 of the Shares (rounded down to the nearest whole
share)
	 
	[                    ], 20___

	 	2/3 of the Shares (rounded down to the nearest whole
share)
	 
	[                    ], 20___

	 	100% of the Shares

The Additional Terms and Conditions and the Plan described below are incorporated in this Agreement
by reference and contain important information about your Option. Copies of all of the documents
set forth below are being provided to you concurrently with this Stock Option Agreement. Please
review them carefully and contact PRG-Schultz Human Resources if you have any questions.

Additional Terms and Conditions describes how to exercise your Option, what happens if you
cease to remain employed with PRG-Schultz before you exercise your Option, and where to send
notices;

The Plan contains the detailed terms that govern your Option. If anything in this Stock
Option Agreement or the other attachments is inconsistent with the Plan, the terms of the Plan, as
amended from time to time, will control; all terms used herein that are not defined herein but that
are defined in the Plan have the same meaning given them in the Plan;

Plan Prospectus; and

[___] Annual Report on Form 10-K of PRG-Schultz for the Year Ended December 31, 20___.

Please sign in the space provided below to show that you accept the Option on these terms, keep a
copy of this Agreement for your records, and return both originals to PRG-Schultz Human Resources.

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Participant:	 	 	 	 	 	PRG-SCHULTZ INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Print Your Name:

	 	 	 	 	 	Name:
	 	Jennifer Moore	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Your Residence Address:	 	 	 	Its:	 	Senior Vice President, Human Resources	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

ADDITIONAL TERMS AND CONDITIONS OF YOUR OPTION

HOW TO EXERCISE YOUR OPTION.

	•	 	This Option must be exercised for whole shares only and in
increments of at least 100 shares per exercise or, if less,
all of the remaining shares to which the Option is subject.
	 
	•	 	The Plan is administered on behalf of the Committee by the
Plan administrator. The Plan administrator is responsible
for assisting you in the exercise of your Option and
maintaining the records of the Plan. If you have questions
about your Option, how you go about exercising the vested
portion of your Option or how the Plan works, please
contact the Plan administrator at
Plan.Administrator@prgx.com or (770) 779-3037.
	 
	•	 	The exercise date of your Option is the date of delivery to
the Plan administrator of your notice of exercise. The
notice must be accompanied by payment of the Option price
and any applicable tax withholding in full. You may pay
the Option price and any applicable tax withholding (i) in
cash, (ii) by certified or bank cashier’s check, or (iii)
by such other medium of payment as the Plan administrator
in his sole discretion may permit. You will need to
contact the Plan administrator before you exercise your
Option to determine the amount of any required tax
withholding.
	 
	•	 	Except as provided herein and in the Plan, this Option is
non-transferable. This Option may be transferred by will
or the laws of descent and distribution and,
notwithstanding the foregoing, during the Participant’s
lifetime may be transferred by the Participant to any of
the Participant’s “family members” (as such term is defined
in the general instructions to the Form S-8 Registration
Statement under the Securities Act of 1933). Any such
transfer will be permitted only if (i) the Participant does
not receive any consideration for the transfer and (ii) the
Plan administrator expressly approves the transfer. Any
transferee to whom this Option is transferred shall be
bound by the same terms and conditions, including with
respect to vesting, that govern the Option in the hands of
the Participant; provided, however, that the transferee may
not transfer this Option except by will or the laws of
descent and distribution. No right or interest of the
Participant or any transferee in this Option shall be
subject to any lien, obligation or liability of the
Participant or any transferee.

EFFECT OF TERMINATION OF EMPLOYMENT. All of your unvested Options will terminate
immediately upon the termination of your employment for any reason.

	1.	 	Termination of Employment Due to Death or Disability. If your employment with
PRG-Schultz terminates by reason of your death or Disability (see below for definition), you
(or your estate) may exercise the vested portion of your Option at any time within the earlier
of (a) the one-year anniversary of the date of termination of your employment by reason of
your death or Disability or (b) the Option Expiration Date. After such earlier date, any
remaining unexercised portion of your vested Option shall terminate.

	2.	 	Termination of Employment Due to Retirement. If your employment with PRG-Schultz
terminates by reason of your Retirement (see below for definition), you may exercise the
vested portion of your Option at any time within the earlier of (a) the one-year anniversary
of the date of termination of your employment by reason of your Retirement or (b) the Option
Expiration Date. After such earlier date, any remaining unexercised portion of your vested
Option shall terminate.

	3.	 	Other Termination of Employment. If your employment with PRG-Schultz terminates for
any reason other than your death, Disability or Retirement, unless your employment is
terminated for Cause (as defined below), you will

 

 

	 	 	have the right, within the earlier of (a) the 90th day after the date of termination of your
employment or (b) the Option Expiration Date, to exercise any vested portion of your Option.
After such earlier date, any remaining unexercised portion of your vested Option shall
terminate. If your employment is terminated for Cause, both the vested and unvested portion of
your Option will terminate on notice of termination of your employment for Cause.

	4.	 	Employment. For purposes of this Agreement, employment with any Affiliate of
PRG-Schultz will be considered employment with PRG-Schultz.

	5.	 	Definitions.
	 
	 	 	“Cause” has the same definition as under the Plan.
	 
	 	 	“Disability” means your inability to perform the essential functions of your job, with
or without reasonable accommodation, for a period of 90 days in the aggregate in any rolling
180-day period.
	 
	 	 	“Retirement” means your retirement from PRG-Schultz on or after age 65.

CHANGE IN CONTROL. Upon a “Change in Control,” as such term is defined in the Plan, all of
your unvested Options shall immediately vest and become exercisable, provided you have remained in
continuous employment with PRG-Schultz from the Grant Date until the time of the Change in Control.

NOTICES. All notices pursuant to this Agreement will be in writing and either (i)
delivered by hand, (ii) mailed by United States certified mail, return receipt requested, postage
prepaid, or (iii) sent by an internationally recognized courier which maintains evidence of
delivery and receipt. All notices or other communications will be directed to the following
addresses (or to such other addresses as either of us may designate by notice to the other):

	 	 	 	 	 
	 

	 	To PRG-Schultz:
	 	PRG-Schultz International, Inc.
	 

	 	 	 	600 Galleria Parkway, Suite 100
	 

	 	 	 	Atlanta, GA 30339-8426
	 

	 	 	 	Attention: Senior Vice President, Human Resources
	 
	 	 	 	 
	 

	 	To you:
	 	The address set forth on page 1

MISCELLANEOUS. The Participant has received a copy of the Plan, has read and understands
the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions.
Failure by you or PRG-Schultz at any time or times to require performance by the other of any
provisions in this Agreement will not affect the right to enforce those provisions. Any waiver by
you or PRG-Schultz of any condition or the breach of any term or provision in this Agreement,
whether by conduct or otherwise, in any one or more instances, shall apply only to that instance
and will not be deemed to waive conditions or breaches in the future. If any court of competent
jurisdiction holds that any term or provision of this Agreement is invalid or unenforceable, the
remaining terms and provisions will continue in full force and effect, and this Agreement shall be
deemed to be amended automatically to exclude the offending provision. This Agreement may be
executed in multiple copies and each executed copy shall be an original of this Agreement. This
Agreement shall be subject to and governed by the laws of the State of Georgia. No change or
modification of this Agreement shall be valid unless it is in writing and signed by the party
against which enforcement is sought. This Agreement shall be binding upon, and inure to the benefit
of, the permitted successors, assigns, heirs, executors and legal representatives of the parties
hereto. The headings of each Section of this Agreement are for convenience only. This Agreement
contains the entire Agreement of the parties hereto and no representation, inducement, promise, or
agreement or otherwise between the parties not embodied herein shall be of any force or effect, and
no party will be liable or bound in any manner for any warranty, representation, or covenant except
as specifically set forth herein.EX-10.3 FORM OF RESTRICTED STOCK UNIT AGREEMENT

Exhibit 10.3

	 	 	 	 	 	 	 
	 

	 	Your Name:	 	 	 	 
	 	 	 	 	 
	 	 	Total No. of Restricted Stock Units:	 	 
	 

	 	 	 	 	 	 

PRG-SCHULTZ RESTRICTED STOCK UNIT AGREEMENT

FOR EMPLOYEES

PRG-SCHULTZ INTERNATIONAL, INC. (“PRG-Schultz”) is pleased to grant to the person signing below
(“you” or “Participant”) the Restricted Stock Units described below under the PRG-Schultz 2008
Equity Incentive Plan (the “Plan”).

	 	 	 
	Stock Subject to Grant:

	 	Common Stock, no par value per share
	Grant Date:

	 	[                    ], 20___

Vesting: Subject to the Plan and this Agreement, the Restricted Stock Units will become vested and
payable as follows:

(1)            of the Restricted Stock Units (the “Service-Based RSUs”) will become vested and payable in
accordance with the following schedule, provided you remain continuously employed with PRG-Schultz
from the Grant Date until such time(s):

	 	 	 
	 	 	Service-Based RSUs that
	On the date below	 	become vested on such date
	[                    ], 20___

	 	1/3 of the Service-Based RSUs (rounded down to the
nearest whole share)
	 
	 	 
	[                    ], 20___

	 	1/3 of the Service-Based RSUs (rounded down to the
nearest whole share)
	 
	 	 
	[                    ], 20___

	 	All of the remaining Service-Based RSUs

(2)                      of the Restricted Stock Units (the “Performance-Based RSUs”) will become vested and
payable, as soon after December 31, 20___ as the Committee determines the cumulative Adjusted EBITDA
of PRG-Schultz for the three-year period ending December 31, 20___(but in no event later than March
15, 20___), provided you remain continuously employed with PRG-Schultz from the Grant Date through
December 31, 20___, and provided further that cumulative Adjusted EBITDA (as defined in the Plan)
for PRG-Schultz for the three-year period ending on December 31, 20___equals or exceeds
$[                    ]. Notwithstanding the foregoing, if cumulative Adjusted EBITDA for PRG-Schultz for
such three-year period does not equal or exceed $[                    ], but the cumulative Adjusted EBITDA
for such three-year period exceeds $[                    ], then the number of Restricted Stock Units that
will become vested and payable at the time set forth above, provided you remain continuously
employed with PRG-Schultz from the Grant Date through December 31, 20___, shall be the number of
Performance-Based RSUs multiplied by a fraction, the numerator of which is the amount of cumulative
Adjusted EBITDA for the three-year period that exceeds $[                    ] and the denominator of which is
$[                    ]. For example, if cumulative Adjusted EBITDA for the three-year period ending on
December 31, 20___equals $[                    ] and you have remained employed with PRG-Schultz through
December 31, 20___, then fifty percent (50%) [($[                    ] minus $[                    ]) divided by
$[                    ]] of the Performance-Based RSUs shall become vested and payable. If cumulative
Adjusted EBITDA for such three-year period does not exceed $[                    ], then none of the
Performance-Based RSUs will become vested and payable, regardless of whether you have remained
continuously employed with PRG-Schultz from the Grant Date through December 31, 20___.

Dividend and Voting Rights: Before the Restricted Stock Units become vested and Common Stock is
paid, you will not have any voting rights with respect to the Common Stock to which the Restricted
Stock Units relate. However, you will have the right to receive dividends and distributions on any
shares of Common Stock subject to your Restricted Stock Units as if you owned the shares of Common
Stock to which the Restricted Stock Units relate.

 

 

The Additional Terms and Conditions and the Plan described below are incorporated in this Agreement
by reference and contain important information about your Restricted Stock Units. Copies of all of
the documents set forth below are being provided to you concurrently with this Restricted Stock
Unit Agreement. Please review them carefully and contact PRG-Schultz Human Resources if you have
any questions.

Additional Terms and Conditions describes the terms of your Restricted Stock Units, what
happens if you cease to remain employed with PRG-Schultz before your Restricted Stock Units become
vested and where to send notices;

The Plan contains the detailed terms that govern your Restricted Stock Units. If anything
in this Agreement or the other attachments is inconsistent with the Plan, the terms of the Plan, as
amended from time to time, will control; all terms used herein that are not defined herein but that
are defined in the Plan have the same meaning given them in the Plan;

Plan Prospectus; and

[                    ] Annual Report on Form 10-K of PRG-Schultz for the Year Ended December 31, 20_.

Please sign in the space provided below, keep a copy of this Agreement for your records, and return
both originals to PRG-Schultz Human Resources.

	 	 	 	 	 	 	 	 	 
	Participant:	 	 	 	PRG-SCHULTZ INTERNATIONAL, INC.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 
	Print Your Name:	 	 	 	 	 	Name: Jennifer Moore
	 

	 	 	 	 	 	 	 	 
	Your Residence Address:	 	 	 	 	 	Its: Senior Vice President, Human Resources
	 

	 	 

	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

ADDITIONAL TERMS AND CONDITIONS OF YOUR RESTRICTED STOCK UNITS

PLAN ADMINISTRATION.

	 	•	 	The Plan is administered on behalf of the Committee by the Plan administrator. The
Plan administrator is responsible for assisting you with respect to your Restricted Stock
Units and maintaining the records of the Plan. If you have questions about your
Restricted Stock Units or how the Plan works, please contact the Plan administrator at
Plan.Administrator@prgx.com or (770) 779-3037.
	 
	 	•	 	Except as provided herein and in the Plan, the Restricted Stock Units are
non-transferable. The Restricted Stock Units may be transferred by will or the laws of
descent and distribution and, notwithstanding the foregoing, during the Participant’s
lifetime may be transferred by the Participant to any of the Participant’s “family
members” (as such term is defined in the general instruction to the Form S-8 Registration
Statement under the Securities Act of 1933). Any such transfer will be permitted only if
(i) the Participant does not receive any consideration for the transfer and (ii) the Plan
administrator expressly approves the transfer. Any transferee to whom the Restricted
Stock Units are transferred shall be bound by the same terms and conditions, including
with respect to vesting, that govern the Restricted Stock Units in the hands of the
Participant; provided, however, that the transferee may not transfer the Restricted Stock
Units except by will or the laws of descent and distribution. No right or interest of the
Participant or any transferee in the Restricted Stock Units shall be subject to any lien,
obligation or liability of the Participant or any transferee.
	 
	 	•	 	You may pay any applicable tax withholding (i) in cash, (ii) by certified or bank
cashier’s check, or (iii) by such other medium of payment as the Plan administrator in his
sole discretion may permit. The Plan administrator will determine the amount of any
required tax withholding.
	 
	 	•	 	As soon as administratively practicable (and within 30 days) after the Restricted Stock
Units become vested, the Company will deliver to the Participant or make available to the
Participant’s broker the shares of Common Stock with respect to which the Restricted Stock
Units have become payable.

EFFECT OF TERMINATION OF EMPLOYMENT.

	•	 	Termination of Employment. If your employment with PRG-Schultz terminates for
any reason prior to the Restricted Stock Units becoming vested, any Restricted Stock Units
that are not then vested will be forfeited immediately upon the termination of your
employment for any reason.

	•	 	Change of Control. Upon the occurrence of a Change of Control, as such term is
defined in the Plan, one-hundred percent (100%) of the Restricted Stock Units shall become
vested and payable if you have remained in the continuous employ of PRG-Schultz from the Grant
Date until the time of the Change of Control. Accordingly, subsequent termination of your
employment for any reason after the Change of Control will not result in forfeiture of your
Restricted Stock Units or the shares of Common Stock related thereto.

	•	 	Employment. For purposes of this Agreement, employment with any Affiliate of
PRG-Schultz will be considered employment with PRG-Schultz.

NOTICES. All notices pursuant to this Agreement will be in writing and either (i)
delivered by hand, (ii) mailed by United States certified mail, return receipt requested, postage
prepaid, or (iii) sent by an internationally recognized courier which maintains evidence of
delivery and receipt. All notices or other communications will be directed to the following
addresses (or to such other addresses as either of us may designate by notice to the other):

	 	 	 	 	 
	 

	 	To the Company:
	 	PRG-Schultz International, Inc.
	 

	 	 	 	600 Galleria Parkway, Suite 100
	 

	 	 	 	Atlanta, GA 30339
	 

	 	 	 	Attention: Senior Vice President-Human Resources
	 
	 	 	 	 
	 

	 	To you:
	 	The address set forth on page 1

 

 

MISCELLANEOUS.

	•	 	The Participant has received a copy of the Plan, has read and understands the terms of the Plan and this Agreement, and
agrees to be bound by their terms and conditions. Failure by you or PRG-Schultz at any time or times to require
performance by the other of any provisions in this Agreement will not affect the right to enforce those provisions.
Any waiver by you or PRG-Schultz of any condition or the breach of any term or provision in this Agreement, whether by
conduct or otherwise, in any one or more instances, shall apply only to that instance and will not be deemed to waive
conditions or breaches in the future. If any court of competent jurisdiction holds that any term or provision of this
Agreement is invalid or unenforceable, the remaining terms and provisions will continue in full force and effect, and
this Agreement shall be deemed to be amended automatically to exclude the offending provision. This Agreement may be
executed in multiple copies and each executed copy shall be an original of this Agreement. This Agreement shall be
subject to and governed by the laws of the State of Georgia. No change or modification of this Agreement shall be
valid unless it is in writing and signed by the party against which enforcement is sought. This Agreement shall be
binding upon, and inure to the benefit of, the permitted successors, assigns, heirs, executors and legal
representatives of the parties hereto. The headings of each Section of this Agreement are for convenience only. This
Agreement and the Plan contain the entire agreement of the parties hereto and no representation, inducement, promise,
or agreement or otherwise between the parties not embodied herein shall be of any force or effect, and no party will be
liable or bound in any manner for any warranty, representation, or covenant except as specifically set forth herein.

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