Document:

exv10w1

 

Exhibit 10.1

NON-QUALIFIED STOCK OPTION AGREEMENT

pursuant to the

CLEARWIRE CORPORATION

2007 STOCK COMPENSATION PLAN

* * * * *

	 	 	 	 	 
	Optionee:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Grant Date:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Vesting Date:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Per Share Exercise Price:
	 	 	 	 
	 

	 	 

	 	 

Number
of Option Shares subject to this Option: ___ shares of Class A common stock, par
value $0.0001 per share

* * * * *

          THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”), dated as of the Grant
Date specified above, is entered into by and between Clearwire Corporation., a company organized in
the State of Delaware (the “Company”), and the Optionee specified above (the
“Optionee”), pursuant to the Clearwire Corporation 2007 Stock Compensation Plan, as in
effect and as amended from time to time (the “Plan”); and

          WHEREAS, it has been determined under the Plan that it would be in the best interests of the
Company to grant the non-qualified stock option provided for herein to the Optionee;

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

     1. Incorporation By Reference; Plan Document Receipt. This Agreement is subject in
all respects to the terms and provisions of the Plan (including, without limitation, any amendments
thereto adopted at any time and from time to time unless such amendments are expressly intended not
to apply to the grant of the option hereunder), all of which terms and provisions are made a part
of and incorporated in this Agreement as if they were each expressly set forth herein. The
Optionee hereby acknowledges receipt of a true copy of the Plan and that the Optionee has read the
Plan carefully and fully understands its content. In the event of any

 

 

conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan
shall control.

     2. Grant of Option. The Company hereby grants to the Optionee, as of the Grant Date
specified above, a non-qualified stock option (this “Stock Option”) to acquire from the
Company at the Per Share Exercise Price specified above, the aggregate number of Option Shares
specified above (the “Option Shares”).

     3. No Dividend Equivalents. The Optionee shall not be entitled to receive a cash
payment in respect of the Option Shares underlying this Stock Option on any dividend payment date
for the Shares.

     4. Exercisability of this Stock Option.

          4.1 This Stock Option shall become exercisable as to 25% of the Option Shares, on each of the
first four anniversaries of the Vesting Date, provided the Optionee is then employed by or
performing services for the Company and/or one of its Subsidiaries or Affiliates.

          4.2 Unless earlier terminated in accordance with the terms and provisions of the Plan and/or
this Agreement, this Stock Option shall expire and shall no longer be exercisable after the
expiration of seven (7) years from the Grant Date (the “Option Period”).

          4.3 The Committee may, in its sole discretion, accelerate the exercisability of any portion of
the unexercisable portion of this Stock Option at any time, including, but not limited to, upon a
Participant’s death or Disability (as defined in Sections 4.4 and 4.5 below). In no event shall
this Stock Option be exercisable for a fractional Share.

          4.4 For purposes of this Agreement, “Disability,” if the Participant is a party to an
employment agreement, shall have the same meaning as in such employment agreement, otherwise,
“Disability” means disability as determined by the Committee in accordance with the
standards and procedures similar to those under the Company’s or the relevant Affiliate’s long-term
disability plan, if any. Subject to the first sentence of this Section 4.4, at any time that the
Company or the relevant Affiliate does not maintain a long-term disability plan,
“Disability” shall mean any physical or mental disability which is determined to be total
and permanent by a doctor selected in good faith by the Company or the relevant Affiliate.

     5. Method of Exercise and Payment. This Stock Option shall be exercised by the
Optionee by delivering to the Chief Financial Officer of the Company or his/her designated agent on
any business day a written notice, in such manner and form as may be required by the Company,
specifying the number of Option Shares the Optionee then desires to acquire (the “Exercise
Notice”). The Exercise Notice shall be accompanied by payment of the aggregate Per Share
Exercise Price specified above for such number of the Option Shares to be acquired upon such
exercise plus an amount sufficient to pay all taxes required to be withheld by any governmental
agency. Such payment shall be made in the manner set forth in Section 5.6 of the Plan.

     6. Termination of Service Relationship.

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          6.1 If the Optionee’s Service Relationship with the Company and its Subsidiaries terminates
for any reason, any then unexercisable portion of this Stock Option shall be forfeited by the
Optionee and cancelled by the Company.

          6.2 If the Optionee’s Service Relationship with the Company and its Subsidiaries terminates
for any reason other than due to the Optionee’s death or Disability, the Optionee’s rights, if any,
to exercise any then exercisable portion of this Stock Option shall terminate ninety (90) days
after the date of such termination, but not beyond the expiration of the Option Period, and
thereafter this Stock Option shall be forfeited by the Optionee and cancelled by the Company.

          6.3 If the Optionee’s Service Relationship with the Company and its Subsidiaries is terminated
due to the Optionee’s death, Disability, the Optionee (or, in the case of the Optionee’s death, the
Optionee’s estate, designated beneficiary or other legal representative, as the case may be, as
determined by the Committee) shall have the right, to the extent exercisable immediately prior to
any such termination, to exercise this Stock Option at any time within the one (1) year period
following such termination, but not beyond the expiration of the Option Period, and thereafter this
Stock Option shall be forfeited by the Optionee and cancelled by the Company.

          6.4 The Committee may, in its sole discretion, determine that all or any portion of
this Stock Option, to the extent exercisable immediately prior to the termination of the
Optionee’s Service Relationship with the Company and/or one of its Subsidiaries for any
reason, may remain exercisable for an additional specified time period after the relevant
period specified above in this Section 6 expires (subject to any other applicable terms and
provisions of the Plan and this Agreement), but not beyond the expiration of the Option
Period.

          6.5 If the Affiliate of the Company engaging the Optionee ceases to be an Affiliate of
the Company, that event shall be deemed to constitute a termination of the Optionee’s
Service Relationship described in Section 6.2 above (in connection with such termination of
employment, the provisions in Section 6.1 would also be applicable).

     7. Non-transferability.

          7.1 Except as provided in Section 7.2 below, this Stock Option, and any rights or interests
therein, (i) shall not be sold, exchanged, transferred, assigned or otherwise disposed of in any
way at any time by the Optionee (or any beneficiary(ies) of the Optionee), other than by
testamentary disposition by the Optionee or by the laws of descent and distribution, (ii) shall not
be pledged, encumbered or otherwise hypothecated in any way at any time by the Optionee (or any
beneficiary(ies) of the Optionee) and (iii) shall not be subject to execution, attachment or
similar legal process. Any attempt to sell, exchange, pledge, transfer, assign, encumber or
otherwise dispose of or hypothecate this Stock Option, or the levy of any execution, attachment or
similar legal process upon this Stock Option, contrary to the terms of this Agreement and/or the
Plan, shall be null and void and without legal force or effect.

          7.2 During the Optionee’s lifetime, the Optionee may, with the consent of the Committee,
transfer without consideration all or any portion of this Stock Option to one or more

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members of his or her Immediate Family, to a trust established for the exclusive benefit of
one or more members of his or her Immediate Family, to a partnership in which all the partners are
members of his or her Immediate Family, or to a limited liability company in which all the members
are members of his or her Immediate Family. For purposes of this Agreement, “Immediate
Family” means the Optionee’s children, stepchildren, grandchildren, parents, stepparents,
grandparents, spouse, siblings (including half-brothers and half-sisters), in-laws, and all such
relationships arising because of legal adoption; provided, however, that any such
Immediate Family, or any such trust, partnership and limited liability company, shall agree to be
and shall be bound by the terms and provisions of this Agreement and the Plan.

     8. Entire Agreement; Amendment. This Agreement, together with the Plan contains the
entire agreement between the parties hereto with respect to the subject matter contained herein,
and supersedes all prior agreements or prior understandings, whether written or oral, between the
parties relating to such subject matter. The Committee shall have the right, in its sole
discretion, to modify or amend this Agreement from time to time in accordance with and as provided
in the Plan; provided, however, that no such modification or amendment shall
materially adversely affect the rights of the Optionee under this Stock Option without the consent
of the Optionee. This Agreement may also be modified or amended by a writing signed by both the
Company and the Optionee. The Company shall give written notice to the Optionee of any such
modification or amendment of this Agreement as soon as practicable after the adoption thereof.

     9. Notices. Any Exercise Notice or other notice which may be required or permitted
under this Agreement shall be in writing, and shall be delivered in person or via facsimile
transmission, overnight courier service or certified mail, return receipt requested, postage
prepaid, properly addressed as follows:

     (i) If such notice is to the Company, to the attention of General Counsel or at such
other address as the Company, by notice to the Optionee, shall designate in writing from
time to time.

     (ii) If such notice is to the Optionee, at his or her address as shown on the
Company’s records, or at such other address as the Optionee, by notice to the Company, shall
designate in writing from time to time.

     10. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without reference to the principles of conflict of laws
thereof.

     11. Compliance with Laws. The issuance of this Stock Option (and the Option Shares
upon exercise of this Stock Option) pursuant to this Agreement shall be subject to, and shall
comply with, any applicable requirements of any foreign and U.S. federal and state securities laws,
rules and regulations (including, without limitation, the provisions of the Securities Act of 1933,
the Securities Exchange Act of 1934 and the respective rules and regulations promulgated
thereunder) and any other law or regulation applicable thereto. The Company shall not be obligated
to issue this Stock Option or any of the Option Shares pursuant to this Agreement if any such
issuance would violate any such requirements.

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     12. Binding Agreement; Assignment. This Agreement shall inure to the benefit of, be
binding upon, and be enforceable by the Company and its successors and assigns. The Optionee shall
not assign (except as provided by Section 7 hereof) any part of this Agreement without the prior
express written consent of the Company.

     13. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which shall constitute one and the same
instrument.

     14. Headings. The titles and headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be a part of this
Agreement.

     15. Further Assurances. Each party hereto shall do and perform (or shall cause to be
done and performed) all such further acts and shall execute and deliver all such other agreements,
certificates, instruments and documents as either party hereto reasonably may request in order to
carry out the intent and accomplish the purposes of this Agreement and the Plan and the
consummation of the transactions contemplated thereunder.

     16. Severability. The invalidity or unenforceability of any provisions of this
Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the
remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any
provision of this Agreement in any other jurisdiction, it being intended that all rights and
obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Optionee has hereunto set his hand, all as of the Grant Date specified
above.

	 	 	 	 	 	 	 
	 	 	CLEARWIRE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Benjamin G. Wolff
	 	 
	 

	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 	 	Optionee	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Printed Name	 	 

5exv10w1

 

EXHIBIT 10.1

Holly Corporation

Change in Control Agreement Policy

February 19, 2008

     This Change in Control Agreement Policy reflects the terms and procedures as approved at the
February 9, 2007, February 13, 2008 and February 19, 2008 meetings of the Board of Directors
(“Board”) of Holly Corporation (“Holly”) based upon the recommendation of the Compensation
Committee of the Board.

     1. Eligibility

          Employees of Holly Corporation and Holly Logistic Services, L.L.C. (“HLS”) at pay grades 34
and above will receive CIC Agreements either upon hire or promotion to an eligible pay grade level
at the benefit level described in Section 2 below. However, no eligible individual will be
entitled to the benefits described in Section 2 below unless or until the individual timely
executes a CIC Agreement in accordance with the procedures established by the Chief Executive
Officer of Holly.

     2. Severance Benefits under CIC Agreements

          The CIC Agreements contain a double trigger, meaning that severance benefits only become
payable if a “Change in Control” occurs and an executive experiences a “Termination Event” during
the “Protection Period.” The severance benefits potentially payable under the CIC Agreements
contain three components:

	 	•	 	Accrued but unpaid salary, reimbursement of expenses, and accrued vacation pay;
	 
	 	•	 	A lump sum amount equal to the sum of an executive’s base salary plus annual bonus
multiplied by the applicable multiplier (see chart below); and
	 
	 	•	 	Continuation of medical and dental benefits for a specified number of years (see
chart below).

          The applicable multiplier and number of years that medical and dental benefits will be
continued will be determined based on the executive’s pay grade classification in accordance with
the following chart:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Years of Medical and Dental
	 	 	Lump Sum Multiplier	 	Continuation
	Grades 34 and 35
	 	 	1X	 	 	1 Year
	Grades 36 and 37
	 	 	2X	 	 	2 Years
	Grade 38 and Above
	 	 	3X	 	 	3 Years

 

 

          The pay grade classifications correspond with the following titles:

	 	 	 
	Pay Grades	 	Titles
	 	 	 

	Grades 34 and 35
	 	Numerous titles as determined by management from time to
time

	 	 	 

	Grade 36
	 	Chief Financial Officer, Chief Accounting Officer,
General Counsel, and various other titles as determined
by management from time to time

	 	 	 

	Grade 37
	 	President and other titles as determined by management
from time to time

	 	 	 

	Grade 38
	 	Chairman of the Board and Chief Executive Officer

      3. Term of CIC Agreements

          The initial term of each and every CIC Agreement ends on May 15, 2010, regardless of the date
on which an executive enters into a CIC Agreement with Holly. On May 15, 2009 (and on each
subsequent May 15th) the term of the CIC Agreements will be automatically extended for one
additional year, unless Holly gives notice to each executive 60 days prior to the automatic
extension date. For example, if an eligible executive is hired on and enters into a CIC Agreement
on March 1, 2008, the initial term of his CIC Agreement will last until May 15, 2010, and if Holly
does not give a notice of nonextension by March 16, 2009, then the term of the CIC Agreements will
be automatically extended to May 15, 2011 on May 15, 2009. The occurrence of a “Change in Control”
will extend or reduce the term of the CIC Agreements through the end of the “Protection Period.”

      4. Applicable Definitions

	 	•	 	“Change in Control” — the CIC Agreements use the same definition used under Holly’s
Long Term Incentive Plan (“LTIP”) with certain modifications (intended to comply with
section 409A of the Internal Revenue Code) as specified below:

	 	•	 	A third party acquisition of more than 50% (versus 60% under
the LTIP) of the outstanding stock of Holly (or, for executives employed by HLS
or HEP, of the outstanding membership interests of Holly or HLS) or of the
combined voting power of outstanding securities of Holly (or, for executives
employed by HLS or HEP, of the voting power of Holly, HLS or HEP); or

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	 	•	 	A majority of the Board is replaced during any 12 month period
with directors who are not endorsed by a majority of the existent Board (versus
no time limitation under the LTIP); or
	 
	 	•	 	A merger or consolidation of Holly (or, for executives employed
by HLS or HEP, of Holly, HLS or HEP), except if:

	 	•	 	Holly’s (or, for executives employed by HLS or
HEP, Holly’s, HLS’ or HEP’s) voting securities continue to represent at
least 50% (versus 60% under the LTIP) of the combined voting power of
the voting securities of the surviving entity; or
	 
	 	•	 	The event is a recapitalization of Holly (or,
for executives employed by HLS or HEP, of Holly, HLS or HEP) and no one
person owns more than 50% (versus 40% under the LTIP) of Holly’s (or,
for executives employed by HLS or HEP, Holly’s, HLS’ or HEP’s) voting
securities following the transaction; or

	 	•	 	A liquidation or sale of Holly (or, for executives employed by
HLS or HEP, of Holly, HLS or HEP), except to an entity owned 60% by Holly (or
by Holly, HLS or HEP, if applicable).

	 	•	 	“Protection Period” is the 24 month period beginning on the date a Change in Control
occurs.
	 
	 	•	 	“Termination Event” means a termination of an executive’s employment without
“Cause,” for “Good Reason,” or as a condition to the consummation of or entry into a
“Change in Control” transaction.

	 	•	 	“Cause” means an executive’s (1) engagement in an act of
willful gross negligence or willful misconduct on a matter that is not
inconsequential, or (2) conviction of a felony.

	 	•	 	“Good Reason” means, without an executive’s consent, (1) a
material reduction in the executive’s authority, duties or responsibilities (or
in the authority, duties or responsibilities of the executive’s supervisor),
(2) a material reduction in executive’s base compensation, or (3) relocation of
an executive to an office more than 50 miles away from the location at which
executive normally performs his duties. An executive must give notice of the
occurrence of a “Good Reason” event within 90 days and give the company 30 days
to cure.

      5. Additional Provisions

	 	•	 	Gross Up Payments — If the severance benefits paid under the CIC Agreement (when
combined with any other change in control payments, including but not limited to the
accelerated vesting of equity compensation awards, received by the executive) exceed
the limits imposed by section 280G of the Internal Revenue Code by more than 10%, then
Holly will make a gross up payment to the executive. If the severance benefits (when
combined with other change in control payments) exceed the section 280G limits by less
than 10%, then the

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	 	 	 	executive’s severance benefits will be cut back to an amount within the section 280G
limits. The determination of whether either a gross up payment or a cut back is
required under these provisions will be made by an independent public accounting
firm.

	 	•	 	Release — Payment of the lump sum amount and continuation of medical and dental
benefits are conditioned on the execution and nonrevocation by an executive of a
release agreement.
	 
	 	•	 	Arbitration — The CIC Agreements are subject to binding arbitration in the event of
any dispute.

      6. Form Agreements

          The CIC Agreement forms for both Holly and HLS are attached as Appendix A and B, respectively.

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