Document:

Form of Stock Option Agreement

 

Exhibit 10.1

CONTINUCARE CORPORATION

[NON-QUALIFIED] -OR- [INCENTIVE] STOCK OPTION AGREEMENT

FOR

[Optionee Name]

     1. Grant of Option. CONTINUCARE CORPORATION (the “Company”) hereby
grants, as of [Grant Date], to [Optionee Name] (the “Optionee”) an option (the
“Option”) to purchase up to [Number of Shares] shares of the Company’s Common
Stock, $.0001 par value per share (the “Shares”), at an exercise price per
share equal to [Exercise Price]. The Option shall be subject to the terms and
conditions set forth herein. The Option was issued pursuant to the Company’s
Amended and Restated 2000 Stock Option Plan (the “Plan”), which is incorporated
herein for all purposes. The Option is [a nonqualified stock option, and not]
-OR- [intended to qualify as] an Incentive Stock Option. The Optionee hereby
acknowledges receipt of a copy of the Plan and agrees to be bound by all of the
terms and conditions hereof and thereof and all applicable laws and
regulations.

     2. Definitions. Unless otherwise provided herein, terms used
herein that are defined in the Plan and not defined herein shall have the
meanings attributed thereto in the Plan.

     3. Exercise Schedule. Except as otherwise provided in Sections 6
or 9 of this Agreement, or in the Plan, the Option is exercisable in
installments as provided below, which shall be cumulative. To the extent that
the Option has become exercisable with respect to a number of Shares as set
forth below, the Option may thereafter be exercised by the Optionee, in whole
or in part, at any time or from time to time prior to the expiration of the
Option as provided herein. The following table indicates each date (the
“Vesting Date”) upon which the Optionee shall be entitled to exercise the
Option with respect to the number of Shares granted as indicated beside the
date, provided that the Optionee has been continuously [in service as a
Director of] -OR -[employed by] the Company through and on the applicable
Vesting Date:

Number of Shares                   Vesting Date

[Insert Vesting Schedule as Applicable]

     Except as otherwise specifically provided herein, there shall be no
proportionate or partial vesting in the periods prior to each Vesting Date, and
all vesting shall occur only on the appropriate Vesting Date. Upon the
termination of Optionee’s service as a Director of the Company, any unvested
portion of the Option shall terminate and be null and void.

     4. Method of Exercise. The vested portion of this Option shall be
exercisable in whole or in part in accordance with the exercise schedule set
forth in Section 3 hereof by written notice which shall state the election to
exercise the Option, the number of Shares in respect of which the Option is
being exercised, and such other representations and agreements as to the
holder’s investment intent with respect to such Shares as may be required by
the Company pursuant to the provisions of the Plan. Such written notice shall
be signed by the Optionee and shall be delivered in person or by certified mail
to the Secretary of the Company. The written

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notice shall be accompanied by payment of the exercise price. This Option
shall be deemed to be exercised after both (a) receipt by the Company of such
written notice accompanied by the exercise price and (b) arrangements that are
satisfactory to the Committee in its sole discretion have been made for
Optionee’s payment to the Company of the amount that is necessary to be
withheld in accordance with applicable Federal or state withholding
requirements. No Shares will be issued pursuant to the Option unless and until
such issuance and such exercise shall comply with all relevant provisions of
applicable law, including the requirements of any stock exchange upon which the
Shares then may be traded.

     5. Method of Payment. Payment of the exercise price shall be by
any of the following, or a combination thereof, at the election of the
Optionee: (a) cash; (b) check; or (c) with Shares that have been held by the
Optionee for at least 6 months (or such other Shares as the Company determines
will not cause the Company to recognize for financial accounting purposes a
charge for compensation expense), or (d) such other consideration or in such
other manner as may be determined by the Board or the Committee in its absolute
discretion.

     6. Termination of Option.

[INSERT IN FORM OF DIRECTOR OPTIONS ONLY

     (a) Notwithstanding anything in the Plan to the contrary, any unexercised
portion of the Option shall automatically and without notice terminate and
become null and void at the time of the earliest to occur of:

     (i) the termination of the Optionee’s service as a Director with the
Company and its Subsidiaries for Cause; or

     (ii) Expiration Date].

[INSERT IN FORM OF EMPLOYEE OR CONSULTANT OPTIONS ONLY

     (b) (a) unexercised portion of the Option shall automatically and without
notice terminate and become null and void at the time of the earliest to occur
of:

     (i) (i) unless the Committee or the Board otherwise
determines in writing in its sole discretion, three months
after the date on which the Optionee’s employment with the
Company and its Subsidiaries is terminated for any reason
other than by reason of (A) Cause, which, solely for purposes
of this Agreement, shall mean the termination of the
Optionee’s employment by reason of the Optionee’s willful
misconduct or gross negligence, (B) a mental or physical
disability (within the meaning of Section 22(e) of the
Internal Revenue Code) of the Optionee as determined by a
medical doctor satisfactory to the Committee or the Board, or
(C) death;

     (ii) (ii) immediately upon the termination of the Optionee’s
employment with the Company and its Subsidiaries for Cause;

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     (iii) (iii) twelve months after the date on which the
Optionee’s employment with the Company and its Subsidiaries
is terminated by reason of a mental or physical disability
(within the meaning of Section 22(e) of the Internal Revenue
Code) as determined by a medical doctor satisfactory to the
Committee;

     (iv) (iv) twelve months after the date of termination of the
Optionee’s employment with the Company and its Subsidiaries
by reason of the death of the Optionee (or three months after
the date on which the Optionee shall die if such death shall
occur during the one year period specified in paragraph (iii)
of this Section 6); or

     (v) [Expiration Date].

     (v) All references herein to the termination of the Optionee’s employment
shall, in the case of an Optionee who is not an employee of the Company or a
Subsidiary, refer to the termination of the Optionee’s service with the
Company.]

     (b) To the extent not previously exercised, (i) the Option shall terminate
immediately in the event of (1) the liquidation or dissolution of the Company,
or (2) any reorganization, merger, consolidation or other form of corporate
transaction in which the Company does not survive, unless the successor
corporation, or a parent or subsidiary of such successor corporation, assumes
the Option or substitutes an equivalent option or right pursuant to Section
10(c) of the Plan, and (ii) the Committee or the Board in its sole discretion
may by written notice (“cancellation notice”) cancel, effective upon the
consummation of any corporate transaction described in Subsection 8(b) of the
Plan in which the Company does survive, the Option (or portion thereof) that
remains unexercised on such date. The Committee or the Board shall give
written notice of any proposed transaction referred to in this Section 6(b) a
reasonable period of time prior to the closing date for such transaction (which
notice may be given either before or after approval of such transaction), in
order that Optionee may have a reasonable period of time prior to the closing
date of such transaction within which to exercise the Option if and to the
extent that it then is exercisable (including any portion of the Option that
may become exercisable upon the closing date of such transaction). The
Optionee may condition his exercise of the Option upon the consummation of a
transaction referred to in this Section 6(b).

     7. Transferability. The Option granted hereby is not transferable
otherwise than by will or under the applicable laws of descent and
distribution, and during the lifetime of the Optionee the Option shall be
exercisable only by the Optionee, or the Optionee’s guardian or legal
representative. In addition, the Option shall not be assigned, negotiated,
pledged or hypothecated in any way (whether by operation of law or otherwise),
and the Option shall not be subject to execution, attachment or similar
process. Upon any attempt to transfer, assign, negotiate, pledge or hypothecate
the Option, or in the event of any levy upon the Option by reason of any
execution, attachment or similar process contrary to the provisions hereof, the
Option shall immediately become null and void.

     8. No Rights of Stockholders. Neither the Optionee nor any
personal representative (or beneficiary) shall be, or shall have any of the
rights and privileges of, a stockholder of the

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Company with respect to any shares of Stock purchasable or issuable upon
the exercise of the Option, in whole or in part, prior to the date of exercise
of the Option.

     9. Acceleration of Exercisability of Option. This Option shall
become immediately fully exercisable in the event that, prior to the
termination of the Option pursuant to Section 6 hereof, (a) there is a “Change
in Control”, as defined in Section 8(b) of the Plan, that occurs while the
Optionee serves the Company as a Director, (b) the Committee or the Board
exercises its discretion to provide a cancellation notice with respect to the
Option pursuant to Section 6(b)(ii) hereof, or (c) the Option is terminated
pursuant to Section 6(b)(i) hereof.

     10. No Right to Continued Employment or Service. Neither the
Option nor this Agreement shall confer upon the Optionee any right to continued
employment or service with the Company.

     11. Law Governing. This Agreement shall be governed in accordance
with and governed by the internal laws of the State of Florida.

     12. Interpretation / Provisions of Plan Control. This Agreement is
subject to all the terms, conditions and provisions of the Plan, including,
without limitation, the amendment provisions thereof, and to such rules,
regulations and interpretations relating to the Plan adopted by the Committee
or the Board as may be in effect from time to time. If and to the extent that
this Agreement conflicts or is inconsistent with the terms, conditions and
provisions of the Plan, the Plan shall control, and this Agreement shall be
deemed to be modified accordingly. The Optionee accepts the Option subject to
all the terms and provisions of the Plan and this Agreement. The undersigned
Optionee hereby accepts as binding, conclusive and final all decisions or
interpretations of the Committee or the Board upon any questions arising under
the Plan and this Agreement.

     13. Notices. Any notice under this Agreement shall be in writing
and shall be deemed to have been duly given when delivered personally or when
deposited in the United States mail, registered, postage prepaid, and
addressed, in the case of the Company, to the Company’s Secretary at 7200
Corporate Center Drive, Suite 600, Miami, FL 33126, or if the Company should
move its principal office, to such principal office, and, in the case of the
Optionee, to the Optionee’s last permanent address as shown on the Company’s
records, subject to the right of either party to designate some other address
at any time hereafter in a notice satisfying the requirements of this Section.

     14. Tax Consequences. Set forth below is a brief summary as of the
date of this Option of some of the federal tax consequences of exercise of this
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD
CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

[INSERT IN FORM OF INCENTIVE STOCK OPTION ONLY

     (a) Exercise of Option. There will not be federal income tax
liability upon the grant or exercise of the Option.

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(a) (b) Disposition of Shares. If Shares are held for at least one year
from the date of exercise and two years from the date of grant of the Option,
any gain realized on disposition of the Shares will be treated as long-term
capital gain for federal income tax purposes. If Shares are disposed of before
one year from the date of exercise or two years from the date of grant of the
Option, the Optionee will be treated as having received, on the date of
disposition, compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the fair market value of the Shares on the date of
exercise over the exercise price. The amount of any additional sale proceeds
will be taxed as long-term or short-term capital gain, depending on how long
the Optionee holds the Shares after exercise. If Optionee is an employee at
the time of disposition, the Company will be required to withhold from
Optionee’s compensation or collect from Optionee and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income
at the time of disposition.]

(b) [INSERT IN FORM OF NON-QUALIFIED STOCK OPTION ONLY

(c) (a) Exercise of Option. There may be a regular federal income tax
liability upon the exercise of the Option. The Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the fair market value of the Shares on the date
of exercise over the exercise price. If Optionee is an employee, the Company
will be required to withhold from Optionee’s compensation or collect from
Optionee and pay to the applicable taxing authorities an amount equal to a
percentage of this compensation income at the time of exercise.

(d) (b) Disposition of Shares. If Shares are held for at least one
year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.]

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
[GRANT DATE].

	 	 	 	 	 
	 	COMPANY: CONTINUCARE 

CORPORATION

 

 	 
	 	By:  	 
 	 
	 	 	[NAME] 	 
	 	 	[TITLE] 	 
	 

     Optionee acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof. Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option, and fully
understands all provisions of the Option.

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	Dated: _______________       	OPTIONEE:

 	 
	 	By:  	 
 	 
	 	 	[NAME] 	 
	 	 	 	 
	 

6<PAGE>

                                                                    Exhibit 10.2

                          PHARMA SERVICES HOLDING, INC.
                        4709 CREEKSTONE DRIVE, SUITE 200
                          DURHAM, NORTH CAROLINA 27703

Date

Name
Site Code

Re:  Stock Option

Dear ___________________,

We are pleased to inform you that you have been granted an option ("Option") to
purchase shares of common stock ("Shares") of Pharma Services Holding, Inc. (the
"Company") pursuant to the Company's Stock Incentive Plan (the "Plan") and on
the terms and conditions set forth below. On September 25, 2003, Quintiles
Transnational Corp. ("Quintiles") became an indirect wholly-owned subsidiary of
the Company.

1.       Number of Shares subject to Option. ________ Shares.

2.       Exercise Price per Share. $__________

3.       Vesting. The Option will vest and become exercisable as to 20% of the
         total number of Shares subject to the Option on each anniversary of
         your hire date from _______ through ______, provided that the Option
         will become fully vested and exercisable upon a "Sale of the Company"
         (as provided in Section 9 of the Plan). However, in no event will any
         portion of the Option that is not vested and exercisable at the time of
         your termination of employment with the Company and its subsidiaries
         for any reason become vested and exercisable following such
         termination.

4.       Termination of Option. The Option will terminate as provided in Section
         5(b) of the Plan.

5.       Restrictions on Shares. Any Shares that you acquire upon exercise of
         the Option will generally be nontransferable, and subject to such other
         restrictions as contained in Section 8 of the Plan.

6.       Taxes. A separate information statement describing the tax
         considerations relating to your option grant will be provided to you.

<PAGE>

7.       Subject to Plan. The Option is being granted pursuant to the Plan, a
         copy of which is attached, and is subject to the terms of the Plan in
         all respects.

8.       Long Term Incentive. This option that is granted to you, along with the
         Shares that you purchase pursuant to the accompanying letter, will
         serve as the only long-term incentive compensation that will be made
         available to you. Quintiles will of course continue to provide for
         annual cash bonus opportunities.

9.       Acknowledgement. You acknowledge: (i) that the Plan is discretionary in
         nature and may be suspended or terminated by the Company at any time;
         (ii) that each grant of an Option is a one-time benefit, which does not
         create any contractual or other right to receive future grants of
         Options, or benefits in lieu of Options; (iii) that all determinations
         with respect to any such future grants, including, but not limited to,
         the times when Options shall be granted, the number of shares subject
         to each Option, the Option price, and the time or times when each
         Option shall be exercisable, will be at the sole discretion of the
         Committee; (iv) that your participation in the Plan shall not create a
         right to further employment with the Company and shall not interfere
         with the Company's or your ability to terminate your employment
         relationship at any time with or without cause; (v) that your
         participation in the Plan is voluntary; (vi) that the value of the
         Option is an extraordinary item of compensation which is outside the
         scope of your employment contract, if any; (vii) that the Option is not
         part of normal or expected compensation for purposes of calculating any
         severance, resignation, redundancy, end of service payments, bonuses,
         long-service awards, pension or retirement benefits or similar
         payments; and (viii) that this award, along with the opportunity to
         purchase shares as set forth in the accompanying letter, is a
         comparable replacement for the long term incentives which were provided
         under the Quintiles Executive Compensation Plan as in effect prior to
         the Company's acquisition of Quintiles.

10.      Employee Data Privacy. As a condition of the grant of Option, you
         consent to the collection, use and transfer of personal data as
         described in this paragraph 11. You understand that the Company and its
         Affiliates hold certain personal information about you including, but
         not limited to, your name, home address and telephone number, date of
         birth, social security number, salary, nationality, job title, shares
         of common stock or directorships held in the Company, details of all
         Options or other entitlement to shares of common stock awarded,
         cancelled, exercised, vested, unvested or outstanding in your favor,
         for the purpose of managing and administering the Plan ("Data"). You
         further understand that the Company and/or its Affiliates will transfer
         Data amongst themselves as necessary for the purposes of
         implementation, administration and management of your participation in
         the Plan, and that the Company and/or any of its Affiliates may each
         further transfer Data to any third parties assisting the Company in the
         implementation, administration and management of the Plans. You
         understand that these recipients may be located in your country of
         residence or elsewhere, such as the United States. You authorize them
         to receive, possess, use, retain and transfer Data in electronic or
         other form, for the purposes of implementing, administering and
         managing your participation in the Plan, including any requisite
         transfer of such Data as may be required for the administration of the
         Plan and/or the subsequent holding shares of common stock on your
         behalf to a broker or other third party with whom the shares acquired
         on exercise may be deposited. You understand that you may, at any time,
         view the Data,

                                       2

<PAGE>

         require any necessary amendments to it or withdraw the consent herein
         in writing by contacting the local human resources representative.

11.      Confidentiality. You agree not to disclose or discuss in any way the
         terms of this offer to or with anyone other than members of your
         immediate family, or your personal counsel or financial advisors (and
         you will advise such persons of the confidential nature of this offer).

                                     * * * *

                                            Sincerely yours,

Agreed to and Accepted by:

----------------------------------------
Executive's Signature -  ___________________ Name
[Please return signed copy of this letter to ____________________, no later than
______________].

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