Document:

Exhibit 10.19

 

FORM OF COMMERCEHUB, INC.

LEGACY STOCK APPRECIATION RIGHTS PLAN

STOCK OPTION AGREEMENT

[Relating to Conversion of New SARs]

 

This Stock Option Agreement (the “Option Agreement”), dated as of the     day of 2016 (the “Grant Date”), is between CommerceHub, Inc., a Delaware corporation (the “Company”), and Francis Poore (the “Awardee”).

 

WHEREAS, the Awardee was a holder of outstanding stock appreciation rights (the “Original SAR”) granted on June 28, 2016 (the “Original Grant Date”) under the Commerce Technologies, Inc. 2010 Stock Appreciation Rights Plan (as amended effective as of January 13, 2011, the “Prior Plan”) administered by Commerce Technologies, Inc. (“CTI”).

 

WHEREAS, in connection with the reorganization of CTI, the merger of CTI with and into a subsidiary of the Company and the anticipated spin-off of the Company from Liberty Interactive Corporation, a Delaware corporation, the Prior Plan was amended and restated into the form of the CommerceHub Inc. Legacy Stock Appreciation Rights Plan (the “Plan”) and the outstanding stock appreciation rights under the Prior Plan were converted into options to purchase Common Shares pursuant to the Plan.

 

WHEREAS, the Awardee and CTI entered into that certain Employment Agreement dated as of June 28, 2016 (the “Employment Agreement”).

 

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.    Grant of Option.

 

a.              Pursuant to the terms of the Plan, the Committee hereby grants to Awardee, an Option, subject to the terms, definitions and provisions of the Plan adopted by the Company and those of the Employment Agreement as they relate to this award, which are incorporated herein by reference, and pursuant to this Option Agreement. Unless otherwise defined herein or in the Employment Agreement, capitalized terms used in this Option Agreement shall have the meaning ascribed to such terms in the Plan.

 

b.              The following capitalized terms, when used herein, shall have the meanings set forth in the Employment Agreement:  “Award Conditions,” “Change in Control,” “Close of Business,” “Employment Period,” “Good Reason,” “Post-Employment Period Termination,” “Release,” “Single Trigger Change in Control Transaction,” and “Spin-Off”. In addition, the term “Unvested Options” as used in this Option Agreement means that portion of the Option, if any, that is issued and outstanding but unvested as of the applicable date of determination, measured in terms of the number of Common Shares covered by such unvested portion of the Option.

 

2.    Value of the Option. The Option shall entitle the Awardee, after the Option has vested, to purchase Common Shares at the exercise price set forth on the attached Notice of Grant (the

 

 

“Exercise Price”) upon exercise of the Option pursuant to Section 5. No dividend equivalents are paid with respect to any Option.

 

3.    Nonassignability of Option. The Option is not assignable or transferable by the Awardee except by will or by the laws of descent and distribution. During the lifetime of the Awardee, only the Awardee or Awardee’s guardian or legal representative shall be entitled to exercise the Option.

 

4.    Exercise Period. The Option or any portion thereof may be exercised only after the Option or any portion thereof has vested and only within the term set forth in the Notice of Grant contained herein and may be exercised during such term only in accordance with the terms of the Plan and this Option Agreement.  No Options shall be exercisable after the tenth anniversary of the Original Grant Date.

 

5.     Method of Exercise. Options will be considered exercised (as to the number of Options specified in the notice referred to in clause (i) below) on the latest of (a) the date of exercise designated in the written notice referred to in in clause (i) below, (b) if the date so designated is not a Business Day (as defined below), the first Business Day following such date or (c) the earliest Business Day by which the Company has received all of the following:

 

(i)          Written notice, in such form as the Committee may require, containing such representations and warranties as the Committee may require and designating, among other things, the date of exercise and the number and of Common Shares to be purchased by exercise of Options (each, an “Option Share”);

 

(ii)         Payment of the applicable Exercise Price for each Option Share in any (or a combination) of the following forms: (A) cash, (B) check, (C) the delivery, together with a properly executed exercise notice, of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay such Exercise Price (and, if applicable, the Required Withholding Amount as described in Section 6) or (D) the delivery of irrevocable instructions via the Company’s online grant and administration program for the Company to withhold the number of Common Shares (valued at the Fair Market Value of such Common Share on the date of exercise) required to pay such Exercise Price (and, if applicable, the Required Withholding Amount as described in Section 6) that would otherwise be delivered by the Company to the Awardee upon exercise of the Options; and

 

(iii)        Any other documentation that the Committee may reasonably require.

 

As used in this Section 5, “Business Day” means any day other than Saturday, Sunday or a day on which banking institutions in Denver, Colorado, are required or authorized to be closed.

 

6.     Mandatory Withholding for Taxes. The Awardee acknowledges and agrees that the Company will deduct from the Common Shares otherwise payable or deliverable upon exercise of any Options that number of Common Shares (valued at the Fair Market Value of such Common Shares on the date of exercise) that is equal to the amount of all federal, state and other governmental taxes required to be withheld by the Company or any subsidiary of the Company upon such exercise, as determined by the Company (the “Required Withholding Amount”), unless provisions to pay such Required Withholding Amount have been made to the satisfaction of the Company. If the Awardee elects to make payment of the applicable Exercise Price by delivery of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay such Exercise Price, such instructions may also include instructions to

 

 

deliver the Required Withholding Amount to the Company. In such case, the Company will notify the broker promptly of its determination of the Required Withholding Amount.

 

7.    Certain Plan Provisions.

 

a.              In no event shall any adjustments or amendments made to the Plan materially adversely effect the Awardee’s outstanding Option, whether or not vested, unless such adjustment or amendment is either required by law or to prevent any material adverse tax consequences; provided that if such adjustment or amendment is made to prevent any material adverse tax consequences and as a result the Awardee is materially adversely effected, the Company agrees that it will use its best efforts to ensure that the Awardee is made whole and, to the extent possible, receives the full benefit (economic and otherwise) of his Option as if no such adjustment or amendment had been made.

 

b.              In the event of a conflict between the terms of the Plan and this Option Agreement, this Option Agreement shall prevail, and in the event of a conflict between this Option Agreement and the terms of the Employment Agreement, the terms of the Employment Agreement shall prevail. In particular, as they relate to Awardee:

 

·                  The definition of “Cause” in Section 3(d) of the Plan is superseded by the definition of “Cause” contained in the Employment Agreement.

 

·                  The definition of “Disability” in Section 3(l) of the Plan is superseded by the definition of “Disability” contained in the Employment Agreement.

 

·                  The definition of “Grounds for Forfeiture” in Section 4(o) of the Plan is superseded and the term “Grounds for Forfeiture” shall mean “Cause” as defined in the Employment Agreement.

 

8.    Forfeiture. If the Awardee has a Separation from Service with the Company for any reason other than an involuntary Separation from Service without Cause, and other than by reason of Death, Disability, or Retirement, or in the event that the Committee determines, in its sole discretion, that any conduct of the Awardee constitutes Cause, all rights of the Awardee under this Option Agreement and the Plan (including rights with respect to outstanding Options) will terminate, except as specified in Sections 10 and 11 below.

 

9.    Accelerated Vesting.  As described below, acceleration of vesting of the Option pursuant to this Option Agreement upon a Separation from Service is subject in certain instances to the condition subsequent that the Awardee delivers a Release (as defined in the Employment Agreement) in accordance with the requirements of Section 5.8 of the Employment Agreement, and that any applicable revocation period applicable to such Release expires, both to occur within 55 days following the date of such Separation from Service (including the other conditions set forth in Section 5.8 of the Employment Agreement, the “Vesting Condition”).  The Awardee acknowledges that while the Option or a portion thereof may retroactively vest effective as of the date of the Awardee’s Separation from Service as set forth in this Notice of Grant, the Awardee will nonetheless not be able to exercise any accelerated portion of the Option unless and until the Vesting Condition is timely met.

 

a.              Death or Disability. In case of the Awardee’s involuntary Separation from Service

 

 

during the Employment Period by reason of death or as a result of Awardee’s termination by the Company based on the Awardee’s Disability, this Option will immediately vest and become exercisable to the extent not already vested as of the date of such termination of employment. Any Options that are then outstanding and vested will remain exercisable until the earlier of (A) the Close of Business on the second anniversary of the date of such termination of employment or (B) the Expiration Date provided in the Notice of Grant.

 

b.              Termination by the Company Without Cause or by the Awardee for Good Reason. In case of a Separation from Service during the Employment Period by the Company without Cause (as defined in the Employment Agreement) or by the Awardee for Good Reason (each if occurring during the Employment Period, a “Protected Termination”), a pro rata portion of the Options unvested on the date of such termination will vest as of the date of such termination, such pro rata portion to be equal to a fraction (not greater than one), the numerator of which is the number of days the Awardee was employed by the Company from the Original Grant Date through the date of the Protected Termination plus 548, and the denominator of which is the number of days in the entire vesting period for the Options, in no event to exceed the total number of unvested Options as of the date of a Protected Termination; provided, that if such Protected Termination occurs within 90 days prior to, or eighteen (18) months following, the closing date of a Change in Control, all Options that are unvested on the date of such termination will vest in full as of the date of such termination, provided further, that any acceleration pursuant to this paragraph b. is subject to the condition subsequent that the Vesting Condition is timely met. Any Options that are then outstanding and vested will remain exercisable until the Close of Business on the 90th day following the date of such Protected Termination, or, subject to the condition subsequent that the Vesting Condition is timely met, until the earlier of (A) the Close of Business on the second anniversary of the date of such termination of employment or (B) the Expiration Date provided in the Notice of Grant.

 

10.  Termination by the Company for Cause or by the Awardee Without Good Reason. In case of a Separation from Service during the Employment Period by the Company with Cause or by the Awardee without Good Reason, the Awardee will automatically forfeit all rights to all unvested Options held by the Awardee as of the date of such termination of the Awardee’s employment. In the event of a Separation from Service during the Employment Period by the Awardee without Good Reason, any Options that are then outstanding and vested will remain exercisable until the earlier of (A) the Close of Business on the 120th day following the date of such termination of employment or (B) the Expiration Date provided in the Notice of Grant. In the event of a Separation from Service during the Employment Period by the Company with Cause, any Options that are then outstanding and vested will remain exercisable until the earlier of (C) the Close of Business on the 90th day following the date of such termination of employment or (D) the Expiration Date provided in the Notice of Grant.

 

11.  Other Terminations. In the case of a Post-Employment Period Termination, any Options that are then outstanding and vested will remain exercisable until the earlier of (A) the Close of Business on the first anniversary of the date of such termination of employment or, if such Post-Employment Period Termination is for Cause, until the Close of Business on the 90th day following the date of such termination of employment or (B) the Expiration Date provided in the Notice of Grant.

 

 

12.  Single Trigger Change in Control.

 

a.              Upon the consummation of a Single Trigger Change in Control Transaction, if neither of the Award Conditions has been satisfied, the vesting of any Unvested Options will accelerate such that all Unvested Options will be fully vested and exercisable immediately prior to the closing of such Single Trigger Change in Control Transaction.

 

b.              If a Single Trigger Change in Control Transaction is consummated during the Employment Period and on or prior to the first anniversary of the date on which the Spin-Off is completed, 37.5% of the Unvested Options (less the amount of any Unvested Options that have previously vested, including in connection with such Single Trigger Change in Control Transaction) will accelerate with the effect that such awards will be fully vested and exercisable immediately prior to the closing of such transaction, even if one of the Award Conditions is met as to the Unvested Options.

 

13.      Tax Consequences.

 

a.             Awardee understands that upon either the grant or the exercise of this Option, the Awardee may recognize adverse tax consequences.

 

b.             Awardee understands that the Company will be required to withhold any tax or social insurance required from any governmental authority. Awardee is encouraged to consult with a tax advisor concerning the tax consequences of exercising this Option.

 

14.  Entire Agreement. The Plan and this Option Agreement (including the Notice of Option Grant contained herein), constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of CTI and the Company and Awardee with respect to the subject matter hereof, and the Original SAR is hereby replaced in its entirety and is null and void and of no further effect.

 

AWARDEE ACKNOWLEDGES THAT NEITHER THE PLAN NOR THIS OPTION AGREEMENT CONFERS ANY RIGHT WITH RESPECT TO CONTINUANCE OF EMPLOYMENT WITH OR SERVICE TO THE COMPANY NOR INTERFERES IN ANY WAY WITH ANY RIGHT THE COMPANY WOULD OTHERWISE HAVE TO TERMINATE THE AWARDEE’S SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE.  NO PERSON SHALL, BY REASON OF PARTICIPATION IN THE PLAN, ACQUIRE ANY RIGHT OR TITLE TO ANY ASSETS, FUNDS OR PROPERTY OF THE COMPANY, INCLUDING WITHOUT LIMITATION, ANY SPECIFIC FUNDS, ASSETS OR OTHER PROPERTY WHICH THE COMPANY MAY SET ASIDE IN ANTICIPATION OF ANY LIABILITY UNDER THE PLAN.  A PARTICIPANT SHALL HAVE ONLY A CONTRACTUAL RIGHT TO AN OPTION, IF ANY, PAYABLE UNDER THE PLAN, UNSECURED BY ANY ASSETS OF THE COMPANY, AND NOTHING CONTAINED IN THE PLAN SHALL CONSTITUTE A GUARANTEE THAT THE ASSETS OF THE COMPANY SHALL BE SUFFICIENT TO PAY ANY BENEFITS TO ANY PERSON.

 

Awardee acknowledges receipt of a copy of the Plan and certain information related thereto and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option Agreement subject to all of the terms and provisions of the Plan. Awardee has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice of 

 

 

independent counsel prior to executing this Option Agreement and fully understands all provisions relating to this Option Agreement. Awardee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Option Agreement; provided that if any such decision or interpretation constitutes a breach by the Company of the Employment Agreement, the Awardee may dispute such decision or interpretation in accordance with the arbitration provisions set forth in the Employment Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

 

COMMERCEHUB, INC.

NOTICE OF OPTION GRANT

[Relating to Conversion of New SARs]

 

Francis Poore

[Insert Address]

 

CommerceHub, Inc. (the “Company”) has granted Francis Poore (“Awardee”) an Option covering Common Shares of the Company as follows:

 

	
Original Date of Grant:
    	
 
    	
June 28, 2016
    
	
Date of Grant:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Number of Common Shares Covered by this Option:
    	
 
    	
[·]
    
	
Exercise Price:
    	
 
    	
$
    	
 
    
	
Expiration Date:
    	
 
    	
June 28, 2026
    

 

Vesting: The Option shall be vested and exercisable as to 25% of the Options on the first anniversary of the Original Date of Grant (the “First Vesting Date”) and 1/36 of the Options that remain unvested immediately following the First Vesting Date will vest on each monthly anniversary of the First Vesting Date, provided that the final 1/36th of such remaining Options will vest on the last day of the Employment Period (as specified in more detail on Schedule 1 to this Option Agreement), subject to the Awardee continuing as an employee of the Company or an affiliate or subsidiary of the Company on such dates, and further subject to the accelerated vesting provisions of Section 9 of this Option Agreement.

 

By your signature and the signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the Legacy Stock Appreciation Rights Plan which is incorporated herein by reference and the Option Agreement herein.

 

	
AWARDEE
    	
 
    	
COMMERCEHUB, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
(Print Name):
    	
Frank Poore
    	
 
    	
(Print Name):
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
								

 

 

Schedule 1

 

	
Vesting Date
    	
 
    	
Common Shares covered by the Option Vested
    	
 
    
	
June 28, 2017 (First Vesting Date)
    	
 
    	
[·]
    	
 
    
	
July 28, 2017
    	
 
    	
[·]
    	
 
    
	
August 28, 2017
    	
 
    	
[·]
    	
 
    
	
September 28, 2017
    	
 
    	
[·]
    	
 
    
	
October 28, 2017
    	
 
    	
[·]
    	
 
    
	
November 28, 2017
    	
 
    	
[·]
    	
 
    
	
December 28, 2017
    	
 
    	
[·]
    	
 
    
	
January 28, 2018
    	
 
    	
[·]
    	
 
    
	
February 28, 2018
    	
 
    	
[·]
    	
 
    
	
March 28, 2018
    	
 
    	
[·]
    	
 
    
	
April 28, 2018
    	
 
    	
[·]
    	
 
    
	
May 28, 2018
    	
 
    	
[·]
    	
 
    
	
June 28, 2018
    	
 
    	
[·]
    	
 
    
	
July 28, 2018
    	
 
    	
[·]
    	
 
    
	
August 28, 2018
    	
 
    	
[·]
    	
 
    
	
September 28, 2018
    	
 
    	
[·]
    	
 
    
	
October 28, 2018
    	
 
    	
[·]
    	
 
    
	
November 28, 2018
    	
 
    	
[·]
    	
 
    
	
December 28, 2018
    	
 
    	
[·]
    	
 
    
	
January 28, 2019
    	
 
    	
[·]
    	
 
    
	
February 28, 2019
    	
 
    	
[·]
    	
 
    
	
March 28, 2019
    	
 
    	
[·]
    	
 
    
	
April 28, 2019
    	
 
    	
[·]
    	
 
    
	
May 28, 2019
    	
 
    	
[·]
    	
 
    
	
June 28, 2019
    	
 
    	
[·]
    	
 
    
	
July 28, 2019
    	
 
    	
[·]
    	
 
    
	
August 28, 2019
    	
 
    	
[·]
    	
 
    
	
September 28, 2019
    	
 
    	
[·]
    	
 
    
	
October 28, 2019
    	
 
    	
[·]
    	
 
    
	
November 28, 2019
    	
 
    	
[·]
    	
 
    
	
December 28, 2019
    	
 
    	
[·]
    	
 
    
	
January 28, 2020
    	
 
    	
[·]
    	
 
    
	
February 28, 2020
    	
 
    	
[·]
    	
 
    
	
March 28, 2020
    	
 
    	
[·]
    	
 
    
	
April 28, 2020
    	
 
    	
[·]
    	
 
    
	
May 28, 2020
    	
 
    	
[·]
    	
 
    
	
June 27, 2020
    	
 
    	
[·]Exhibit 10.20

 

COMMERCE TECHNOLOGIES, INC.
 2010 STOCK APPRECIATION RIGHTS PLAN
 EVIDENCE OF STOCK APPRECIATION RIGHT

 

1.                                      Grant of SAR.

 

a.                                      Pursuant to the terms of the Commerce Technologies, Inc. 2010 Stock Appreciation Rights Plan (as amended effective as of January 13, 2011, and as may be amended from time to time, the “Plan”), the Committee hereby grants to Francis Poore (“Awardee”), a Stock Appreciation Right (“SAR”), subject to the terms, definitions and provisions of the Plan adopted by the Corporation and those of the Poore Employment Agreement (defined in Section 1(b) below) as they relate to this award, which are incorporated herein by reference, and pursuant to this Evidence of Stock Appreciation Right (including the Notice of Stock Appreciation Right Grant included herein, this “Agreement”).  Unless otherwise defined herein or in the Poore Employment Agreement, the terms defined in the Plan shall have the same defined meanings in this Agreement.

 

b.                                      The following capitalized terms, when used herein, shall have the meanings set forth in the Employment Agreement dated effective as of June 28, 2016 between the Corporation and the Awardee (the “Poore Employment Agreement”):  “Award Conditions,” “Change in Control,” “Close of Business,” “Employment Period,” “Good Reason,” “Post-Employment Period Termination,” “Release,” “Single Trigger Change in Control Transaction,” and “Spin-Off.  In addition, the term “Unvested SARs” as used in this Agreement means that portion of the SAR, if any, that is issued and outstanding but unvested as of the applicable date of determination, measured in terms of the number of Common Shares covered by such unvested portion of the SAR.

 

2.                                      Value of the SAR.  The SAR shall entitle the Awardee, after the SAR has vested and upon exercise of the SAR, to receive from the Corporation the Spread on the number of shares of the Corporation’s common stock, par value $0.001 per share, with respect to which the SAR is granted.  The “Spread” is the excess of the Fair Market Value per Common Share at the date the SAR is exercised over the Fair Market Value per Common Share on the date of the grant (“Base Price”). No dividend equivalents are paid with respect to any SAR.

 

3.                                      Valuation. Subject to Section 12 below with respect to the conversion of this SAR pursuant to the Spin-Off, “Fair Market Value” means (i) if the Common Shares are not listed or traded on a national securities exchange on the date of determination, the value of the Common Shares as determined by an independent appraisal which shall be performed (A) twice each year (approximately six months apart) and (B) by a nationally recognized appraiser that is acceptable to both the Corporation and the Awardee; or (ii) if the Common Shares are listed or traded on a national securities exchange, the arithmetic mean between the high and low selling prices of the Common Shares on the last trading day before the date on which the Stock Appreciation Right is granted or exercised, as applicable or, if there are no sales on that date, the mean between the high and low selling prices on the next previous day on which sales were made.

 

4.                                      Nonassignability of SAR.  The SAR is not assignable or transferable by the Awardee except by will or by the laws of descent and distribution.  During the lifetime of the

 

 

Awardee, only the Awardee or the Awardee’s guardian or legal representative shall be entitled to exercise the SAR.

 

5.                                      Certain Plan Provisions; Prevailing Agreement.

 

a.                                      Subject to Section 12 below with respect to the conversion of this SAR pursuant to the Spin-Off, in no event shall any adjustments or amendments made to the Plan materially adversely affect the Awardee’s outstanding SAR, whether or not vested, unless such adjustment or amendment is either required by law or to prevent any material adverse tax consequences; provided that if such adjustment or amendment is made to prevent any material adverse tax consequences and as a result the Awardee is materially adversely effected, the Corporation agrees that it will use its best efforts to ensure that the Awardee is made whole and, to the extent possible, receives the full benefit (economic and otherwise) of his SARs as if no such adjustment or amendment had been made.  Except if the Plan is terminated in connection with the Spin-Off, if the Awardee has not consented to an early termination of the Plan made pursuant to Section 16(c)(ii) of the Plan, then such early termination shall not materially adversely affect Awardee’s outstanding SAR, whether or not vested.

 

b.                                      In the event of a conflict between the terms of the Plan and this Agreement, this Agreement shall prevail and in the event of a conflict between this Agreement and the terms of the Poore Employment Agreement, the terms of the Poore Employment Agreement shall prevail. In particular, as they relate to Awardee:

 

·                  The definition of “Cause” in Section 4(e) of the Plan is superseded by the definition of “Cause” contained in the Poore Employment Agreement.

 

·                  The definition of “Disability” in Section 4(m) of the Plan is superseded by the definition of “Disability” contained in the Poore Employment Agreement.

 

·                  The definition of “Fair Market Value” in Section 4(p) of the Plan is superseded by the definition of “Fair Market Value” contained in this Agreement.

 

·                  The definition of “Grounds for Forfeiture” in Section 5(p) of the Plan is superseded and the term “Grounds for Forfeiture” shall mean “Cause” as defined in the Poore Employment Agreement.

 

6.                                      Exercise Period.  The SAR or any portion thereof may be exercised only after the SAR or such portion has vested (including any accelerated vesting set forth in the Awardee’s Notice of Stock Appreciation Right Grant contained herein (“Notice of Grant”)), and only within the term set forth in the Notice of Grant, and may be exercised during such term only in accordance with the terms of the Plan and this Agreement.  No SAR shall be exercisable after the tenth anniversary of the date of grant.  In addition, the SAR may not be exercised during any “quiet period” or other period of exercise restriction as set forth in the “Policy Regarding SAR Exercise Restrictions” as adopted or as may be adopted or modified in the future by the Corporation; provided that, subject to Section 12 below regarding modifications made in connection with the Spin-Off, no future modification may be materially detrimental to the Awardee unless the modification is required by law or regulatory guidance issued by an applicable state or federal agency.

 

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7.                                      Method of Exercise.  This SAR shall be exercisable by written notice (in the form attached as Exhibit A).  Such written notice shall be signed by the Awardee and delivered in person or by certified mail to the Corporation.  Subject to Section 6 of this Agreement, this SAR shall be deemed to be exercised upon receipt by the Corporation of such written notice.

 

8.                                      Form of Payment.  The Corporation shall satisfy its obligation upon exercise of this SAR in cash.

 

9.                                      Termination/Forfeiture.  If the Awardee has a Separation from Service with the Corporation for any reason other than an involuntary Separation from Service without Cause, and other than by reason of death, Disability, or Retirement, or in the event that the Committee determines, in its sole discretion, that any conduct of the Awardee constitutes Grounds for Forfeiture of the SAR, all rights of the Awardee under this Agreement and the Plan (including rights with respect to outstanding SARs) will terminate, except as provided in Section 10 of this Agreement.

 

10.                               Separation from Service.  In case of the Awardee’s Separation from Service, the Awardee may exercise this SAR during the applicable Termination Period set out in the Notice of Grant, but only to the extent that the SAR was vested and exercisable at the date of such termination after giving effect to any acceleration of vesting provided for in the Notice of Grant (but in no event later than the “Term/Expiration Date” of this SAR as set forth in the Notice of Grant).  To the extent that there are any Unvested SARs as of the date of the Awardee’s Separation from Service or the Awardee is otherwise not entitled to exercise a portion of the SAR at such date, such Unvested SARs or SARs that the Awardee is otherwise not entitled to exercise shall terminate effective immediately upon such termination of employment, except to the extent provided in the Notice of Grant.  To the extent that any portion of this SAR remains exercisable during a Termination Period as provided in the Notice of Grant, then to the extent that Awardee does not exercise such portion of this SAR (to the extent otherwise so entitled) within such time period, this SAR shall terminate as of the Close of Business on the last day of such Termination Period.

 

11.                               Single Trigger Change in Control. Upon the consummation of a Single Trigger Change in Control Transaction, if neither of the Award Conditions has been satisfied, the vesting of any Unvested SARs will accelerate such that all Unvested SARs will be fully vested and exercisable immediately prior to the closing of such Single Trigger Change in Control Transaction.

 

12.                               Spin-Off.  The Awardee acknowledges that (a) if the Spin-Off is consummated, the SAR will be converted at such time into options to acquire Class C common stock of CommerceHub, Inc., a Delaware corporation (the “CommerceHub Options”), (b) notwithstanding anything to the contrary in this Agreement or the Plan (including Section 5 above and any other provision of this Agreement or the Plan which requires the consent of the Awardee to certain amendments or other adjustment or changes to the SAR), such conversion does not require the consent of the Awardee, nor shall such conversion constitute an amendment or adjustment that materially adversely affects the Awardee, (c) notwithstanding the proviso at the end of Section 6 above, no modification to the Company’s “Policy Regarding SAR Exercise Restrictions” made in connection with the Spin-Off will constitute a modification that is materially detrimental to the Awardee (provided further, that if any such modification made in connection with the Spin-Off (i) is materially detrimental to the Awardee, (ii) the modification is 

 

3

 

not required by law or regulatory guidance issued by an applicable state or federal agency, and (iii) the Spin-Off does not occur within two months following such modification taking effect, such modification will lapse at the end of that two months), and (d) following such conversion, the CommerceHub Options will be governed by (i) the CommerceHub, Inc. Legacy Stock Appreciation Rights Plan that will be adopted by CommerceHub, Inc. in connection with the Spin-Off, substantially in the form agreed by the parties, provided that any changes to such form that will result in a material adverse effect to the CommerceHub Options shall be subject to the consent of the Awardee; and (ii) the CommerceHub, Inc. Legacy Stock Appreciation Rights Plan Stock Option Agreement substantially in the form agreed by the parties.

 

13.                               Tax Consequences.

 

a.                                      Awardee understands that upon either the grant or the exercise of this SAR, the Awardee may recognize adverse tax consequences.

 

b.                                      Awardee understands that the Corporation will be required to withhold any tax or social insurance required from any governmental authority.  Awardee is encouraged to consult with a tax advisor concerning the tax consequences of exercising this SAR.

 

AWARDEE ACKNOWLEDGES THAT NEITHER THE PLAN NOR THIS AGREEMENT CONFERS ANY RIGHT WITH RESPECT TO CONTINUANCE OF EMPLOYMENT WITH OR SERVICE TO THE CORPORATION NOR INTERFERES IN ANY WAY WITH ANY RIGHT THE CORPORATION WOULD OTHERWISE HAVE TO TERMINATE THE AWARDEE’S SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE.  NO PERSON SHALL, BY REASON OF PARTICIPATION IN THE PLAN, ACQUIRE ANY RIGHT OR TITLE TO ANY ASSETS, FUNDS OR PROPERTY OF THE CORPORATION, INCLUDING WITHOUT LIMITATION, ANY SPECIFIC FUNDS, ASSETS OR OTHER PROPERTY WHICH THE CORPORATION MAY SET ASIDE IN ANTICIPATION OF ANY LIABILITY UNDER THE PLAN.  A PARTICIPANT SHALL HAVE ONLY A CONTRACTUAL RIGHT TO A STOCK APPRECIATION RIGHT OR THE AMOUNTS, IF ANY, PAYABLE UNDER THE PLAN, UNSECURED BY ANY ASSETS OF THE CORPORATION, AND NOTHING CONTAINED IN THE PLAN SHALL CONSTITUTE A GUARANTEE THAT THE ASSETS OF THE CORPORATION SHALL BE SUFFICIENT TO PAY ANY BENEFITS TO ANY PERSON.

 

Awardee acknowledges receipt of a copy of the Plan and certain information related thereto and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Agreement subject to all of the terms and provisions of the Plan.  Awardee has reviewed the Plan and this SAR Agreement in their entirety, has had an opportunity to obtain the advice of independent counsel prior to executing this Agreement and fully understands all provisions relating to this Agreement.  Awardee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or this Agreement; provided that if any such decision or interpretation constitutes a breach by the Company of the Poore Employment Agreement, the Awardee may dispute such decision or interpretation in accordance with the arbitration provisions set forth in the Poore Employment Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

4

 

COMMERCE TECHNOLOGIES, INC.
 NOTICE OF STOCK APPRECIATION RIGHT GRANT

 

Francis Poore

c/o Commerce Technologies, Inc.

255 Fuller Road, Suite 237

Albany, NY 12203

 

Commerce Technologies, Inc. (the “Corporation”) has granted Francis Poore (“Awardee”) a Stock Appreciation Right (“SAR”) covering Common Shares of the Corporation as follows:

 

	
Date of Grant:
    	
 
    	
June 28, 2016
    	
 
    
	
Total Number of   Common Shares Covered by this SAR:
    	
 
    	
1,057,048
    	
 
    
	
Exercise Base   Price:
    	
 
    	
$35.64
    	
 
    
	
Term/Expiration   Date:
    	
 
    	
June 28, 2026
    	
 
    

 

Regular Vesting:  The SAR shall become vested and exercisable as to (25%) of the total number of Common Shares covered by the SAR on June 28, 2017, the first anniversary of the date of grant (the “First Vesting Date”), and as to 1/36th of the number of remaining Common Shares covered by the SAR after giving effect to the First Vesting Date on each monthly anniversary of the First Vesting Date, provided that the final 1/36th of such remaining Common Shares shall vest on the last day of the Employment Period (as specified in more detail on Schedule 1 to this Agreement), subject to the Awardee continuing as an employee of the Corporation or an affiliate or subsidiary of the Corporation on such dates.  For further clarification, the SAR shall be exercisable in accordance with the schedule set forth in this Notice of Grant, and not in accordance with the default schedule set forth in Section 5(e) of the Plan.

 

Accelerated Vesting:  As described below, acceleration of vesting of the SAR pursuant to this Agreement upon a Separation from Service is subject in certain instances to the condition subsequent that the Awardee delivers a Release in accordance with the requirements of Section 5.8 of the Poore Employment Agreement, and that any applicable revocation period applicable to such Release expires, both to occur within 55 days following the date of such Separation from Service (including the other conditions set forth in Section 5.8 of the Poore Employment Agreement, the “Vesting Condition”).  The Awardee acknowledges that while the SAR or a portion thereof may retroactively vest effective as of the date of the Awardee’s Separation from Service as set forth in this Notice of Grant, the Awardee will nonetheless not be able to exercise any accelerated portion of the SAR unless and until the Vesting Condition is timely met.

 

A.                                    Death/Disability.  Upon the Awardee’s Separation from Service during the Employment Period as a result of the Awardee’s death or as a result of the Awardee’s termination by the Corporation based on the Awardee’s Disability, any Unvested SARs as of the date of such Separation from Service will vest effective as of the date of such Separation from Service.

 

B.                                    Termination Without Cause or for Good Reason. Upon the Awardee’s Separation from Service during the Employment Period as a result of the Corporation terminating the Awardee’s employment without Cause or the Awardee terminating his employment with the Corporation for Good Reason (if occurring during the Employment Period, a “Protected Termination”), then effective as of the date of such Protected Termination, a pro rata portion of the Unvested SARs

 

5

 

will vest, such pro rata portion to be equal to a fraction (not greater than one), the numerator of which is the number of days the Awardee was employed by the Corporation from the Date of Grant through the date of the Protected Termination plus 548, and the denominator of which is the number of days in the entire vesting period for the SAR, in no event to exceed the total number of Unvested SARs as of the date of a Protected Termination; provided, that if such Protected Termination occurs within 90 days prior to, or within eighteen (18) months following, the closing date of a Change in Control (as defined in the Poore Employment Agreement), all of the Unvested SARs will vest in full effective as of the date of the Protected Termination; provided further, that any acceleration pursuant to this paragraph B is subject to the condition subsequent that the Vesting Condition is timely met.

 

Termination Periods:  Any portion of the SAR that as of the date of the Awardee’s Separation from Service is unexpired, unexercised, vested and non-forfeitable (after giving effect to any acceleration described above), may be exercised for the applicable period set forth below following the Awardee’s Separation from Service with the Corporation (but in no event later than the Term/Expiration Date) and subject to the condition subsequent that the Vesting Condition is timely met to the extent specified below:

 

Separation from Service for Cause:  until the Close of Business on the 90th day following the date of such Separation from Service.

 

Separation from Service as a result of the Awardee’s death: until the Close of Business on the second anniversary of the date of such Separation from Service.

 

Separation from Service as a result of the Awardee’s termination by the Corporation based on the Awardee’s Disability: until the Close of Business on the second anniversary of the date of such Separation from Service.

 

Separation from Service by the Corporation without Cause or by the Awardee for Good Reason:  until the Close of Business on the 90th day following the date of such Separation from Service, or, subject to the condition subsequent that the Vesting Condition is timely met, until the Close of Business on the second anniversary of the date of such Separation from Service.

 

Separation from Service voluntarily by the Awardee without Good Reason:  until the Close of Business on the 120th day following the date of such Separation from Service.

 

Separation from Service as a result of a Post-Employment Period Termination:  until the Close of Business on the first anniversary of the date of the Post-Employment Period Termination or, if such Post-Employment Period Termination is for Cause, until the Close of Business on the 90th day following the date of such Separation from Service.

 

By your signature and the signature of the Corporation’s representative below, you and the Corporation agree that this SAR is granted under and governed by the terms and conditions of the 2010 Stock Appreciation Rights Plan which is incorporated herein by reference and the Evidence of Stock Appreciation Right herein.

 

6

 

	
AWARDEE
    	
 
    	
COMMERCE   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Francis Poore
    	
 
    	
By:
    	
/s/   Mark Greenquist
    
	
 
    	
 
    	
 
    
	
(Print Name):    Francis Poore
    	
 
    	
(Print   Name):
    	
Mark   Greenquist
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
Date: July 8, 2016
    	
 
    	
Date:
    	
June   28, 2016
    

 

7

 

Schedule 1

 

	
Vesting Date
    	
 
    	
Common Shares covered by the SAR Vested
    	
 
    
	
June 28, 2017 (First Vesting Date)
    	
 
    	
264,262
    	
 
    
	
July 28, 2017
    	
 
    	
22,022
    	
 
    
	
August 28, 2017
    	
 
    	
22,022
    	
 
    
	
September 28, 2017
    	
 
    	
22,022
    	
 
    
	
October 28, 2017
    	
 
    	
22,022
    	
 
    
	
November 28, 2017
    	
 
    	
22,022
    	
 
    
	
December 28, 2017
    	
 
    	
22,022
    	
 
    
	
January 28, 2018
    	
 
    	
22,022
    	
 
    
	
February 28, 2018
    	
 
    	
22,022
    	
 
    
	
March 28, 2018
    	
 
    	
22,022
    	
 
    
	
April 28, 2018
    	
 
    	
22,022
    	
 
    
	
May 28, 2018
    	
 
    	
22,022
    	
 
    
	
June 28, 2018
    	
 
    	
22,022
    	
 
    
	
July 28, 2018
    	
 
    	
22,022
    	
 
    
	
August 28, 2018
    	
 
    	
22,022
    	
 
    
	
September 28, 2018
    	
 
    	
22,022
    	
 
    
	
October 28, 2018
    	
 
    	
22,022
    	
 
    
	
November 28, 2018
    	
 
    	
22,022
    	
 
    
	
December 28, 2018
    	
 
    	
22,022
    	
 
    
	
January 28, 2019
    	
 
    	
22,022
    	
 
    
	
February 28, 2019
    	
 
    	
22,022
    	
 
    
	
March 28, 2019
    	
 
    	
22,022
    	
 
    
	
April 28, 2019
    	
 
    	
22,022
    	
 
    
	
May 28, 2019
    	
 
    	
22,022
    	
 
    
	
June 28, 2019
    	
 
    	
22,022
    	
 
    
	
July 28, 2019
    	
 
    	
22,022
    	
 
    
	
August 28, 2019
    	
 
    	
22,022
    	
 
    
	
September 28, 2019
    	
 
    	
22,022
    	
 
    
	
October 28, 2019
    	
 
    	
22,022
    	
 
    
	
November 28, 2019
    	
 
    	
22,022
    	
 
    
	
December 28, 2019
    	
 
    	
22,022
    	
 
    
	
January 28, 2020
    	
 
    	
22,022
    	
 
    
	
February 28, 2020
    	
 
    	
22,022
    	
 
    
	
March 28, 2020
    	
 
    	
22,022
    	
 
    
	
April 28, 2020
    	
 
    	
22,022
    	
 
    
	
May 28, 2020
    	
 
    	
22,022
    	
 
    
	
June 27, 2020
    	
 
    	
22,016
    	
 
    

 

8

 

Exhibit A
 Form of Exercise Notice

 

COMMERCE TECHNOLOGIES, INC.
 STOCK APPRECIATION RIGHT (“SAR”) EXERCISE NOTICE

 

Commerce Technologies, Inc.

Attention:  Corporate Secretary

255 Fuller Road

Suite 327

Albany NY 12203

 

1.                    Exercise of SAR.  Effective as of today,                                      , 20     , the undersigned (“Awardee”) hereby elects to exercise a stock appreciation right with respect to               Common Shares (the “Shares”) of Commerce Technologies, Inc. pursuant to the Evidence of Stock Appreciation Rights by and between Awardee and Commerce Technologies, Inc. (“Corporation”), dated                                       (“SAR Agreement”) and pursuant to the Corporation’s 2010 Stock Appreciation Rights Plan (the “Plan”).

 

2.                    Representations of Awardee.  Awardee acknowledges that Awardee has received, read and understood the Plan, the SAR Agreement, and the Notice of Stock Appreciation Right Grant therein (“Notice of Grant”) and agrees to abide by and be bound by their terms and conditions.

 

3.                    Tax Consultation.  Awardee understands that Awardee may suffer adverse tax consequences as a result of Awardee’s exercise of rights under the SAR Agreement and this Notice.  Awardee represents that Awardee has had the opportunity to consult with his or her own independent tax advisor in connection with exercising rights under this SAR Agreement and that Awardee is not relying on the Corporation for any tax advice.

 

4.                    Entire Agreement.  The Plan, the “Policy Regarding SAR Exercise Restrictions” as adopted or as may be adopted or modified in the future by the Corporation, and the SAR Agreement and the Notice of Grant contained therein, are incorporated herein by reference and constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Corporation and Awardee with respect to the subject matter hereof, and are governed by New York law except for that body of law pertaining to conflict of laws.

 

	
Submitted by:
    	
 
    	
Accepted   by:
    
	
AWARDEE
    	
 
    	
COMMERCE   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
(Print Name):
    	
 
    	
 
    	
(Print   Name):
    	
 
    
	
Date:
    	
 
    	
 
    	
Title:
    	
 
    
	
Address:
    	
 
    	
 
    	
Date:

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