Document:

a50864956ex10_2.htm

Exhibit 10.2

 

Approved by the Stockholders on May 8, 2014

 

 

DYAX CORP.

 

1998 Employee Stock Purchase Plan

 

1.             Purpose.

 

The purpose of this 1998 Employee Stock Purchase Plan (the “Plan”) is to provide employees of Dyax Corp. (the “Company”), and its subsidiaries incorporated under the laws of a jurisdiction within the United States of America (“US Subsidiaries”), who wish to become shareholders of the Company, an opportunity to purchase Common Stock, $0.01 par value, of the Company (the “Common Stock”) directly from the Company.  The Plan is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).

 

2.             Eligible Employees.

 

Subject to the provisions of Sections 7, 8, 9 and 10 below, any individual who is a full-time employee (as defined below) of the Company or of any of its subsidiaries (as defined in Section 424(f) of the Code) designated for eligibility to participate in the Plan by the Board of Directors is eligible to participate in any Offering of Shares (as defined in Section 3 below) made by the Company hereunder.  “Board of Directors” means the Company’s Board of Directors or any committee to whom it delegates its authority hereunder, and “full-time employee” shall mean any employee whose customary employment is:

 

	
(a)           

	
20 hours or more per week and

 

	
(b)           

	
more than five months in the calendar year during which the Offering Date (as defined in Section 3 below) occurs (or in the calendar year immediately preceding such calendar year if there has been no change in the terms of employment that would make the employee ineligible to participate in the current calendar year).

 

3.             Offering Dates.

 

From time to time, the Company, by action of the Board of Directors, will grant rights to purchase Shares to employees eligible to participate in the Plan pursuant to one or more offerings (each of which is an “Offering” on a date or series of dates (each of which is an “Offering Date”) designated for this purpose by the Board of Directors.

 

4.             Prices.

 

The price per share for each grant of rights hereunder shall be the lesser of:

 

	
(a)           

	
eighty-five percent (85%) of the fair market value of a Share on the Offering Date on which such right was granted; or

 

	
(b)           

	
eighty-five percent (85%) of the fair market value of a Share on the date such right is exercised.

 

  

  

  

 

At its discretion, the Board of Directors may determine a higher price for a grant of rights.

 

5.             Exercise of Rights and Method of Payment.

 

(a)   Rights granted under the Plan will be exercisable periodically on specified dates as determined by the Board of Directors. Unless a participating employee withdraws from the Plan as provided in Section 11, and subject to the other terms of the Plan, the employee’s option for the purchase of Shares will be exercised automatically on each Purchase Date of an Offering Period, and the maximum number of shares subject to the option will be purchased at the applicable purchase price with the accumulated contributions in the employee’s account.

 

(b)   The method of payment for Shares purchased upon exercise of rights granted hereunder shall be through regular payroll deductions or by lump sum cash payment, by delivery of shares of Common Stock valued at fair market value (as determined by the Board of Directors) on the date of delivery, or by some combination thereof, as determined by the Board of Directors.  No interest shall be paid upon payroll deductions unless specifically provided for by the Board of Directors.

 

(c)   Any payments received by the Company from a participating employee and not utilized for the purchase of Shares upon exercise of a right granted hereunder shall be promptly returned to such employee by the Company after termination of the right to which the payment relates.

 

6.             Term of Rights.

 

The total period from an Offering Date to the last date on which rights granted on that Offering Date are exercisable (the “Offering Period”) shall in no event be longer than twenty-seven (27) months or such longer period as may then be consistent with Section 423 of the Code.  The Board of Directors when it authorizes an Offering may designate one or more exercise periods during the Offering Period when shares will be purchased upon exercise of employees’ options (each, an “Exercise Period”).  Rights granted on an Offering Date shall be exercisable in full on the Offering Date or in such proportion on the last day of each exercise period as the Board of Directors determines.

 

  

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7.             Shares Subject to the Plan.

 

(a)   The number of shares of Common Stock that may be sold pursuant to rights granted under the Plan may not exceed 1,830,000 shares (the “Shares”); provided, however, that the maximum number of Shares which shall be available for sale under the Plan during any Exercise Period shall not exceed the number of Shares equal to 25,000 Shares multiplied by the number of calendar quarters included in such Exercise Period and, if necessary, the number of Shares sold during an Exercise Period shall be cut back in accordance with Section 7(b).  Appropriate adjustments in the above figures, in the number of Shares covered by outstanding rights granted hereunder, in the exercise price of the rights and in the maximum number of Shares which an employee may purchase (pursuant to this Section 7(a), and Sections 9 and 10 below) shall be made to give effect to any mergers, consolidations, reorganizations, recapitalizations, stock splits, stock dividends or other relevant changes in the capitalization of the Company occurring after the effective date of the Plan, provided that no fractional Shares shall be subject to a right and each right shall be adjusted downward to the nearest full Share.  In the event of a proposed dissolution or liquidation of the Company, any Exercise Period and Offering Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise provided by the Board.  In the event of a Corporate Transaction (as defined below), each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a parent or subsidiary of such successor corporation.  In the event that the successor corporation refuses to assume or substitute for outstanding options, each Exercise Period and Offering Period then in progress shall be shortened and a new Purchase Date shall be set (the “New Purchase Date”), as of which date any Exercise Period and Offering Period then in progress will terminate.  The New Purchase Date shall be on or before the date of consummation of the transaction and the Board shall notify each participating employee in writing, prior to the New Purchase Date, that the Purchase Date for his or her option has been changed to the New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 11.  For purposes of this Section 7, “Corporate Transaction” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation, or other capital reorganization of the Company with or into another corporation, or any other transaction or series of related transactions in which the Company’s stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or its successor or parent) immediately thereafter.  Either authorized and unissued Shares or issued Shares heretofore or hereafter reacquired by the Company may be made subject to rights under the Plan.  If for any reason any right under the Plan terminates in whole or in part, Shares subject to such terminated right may again be subjected to a right under the Plan.

 

(b)   Subject to the foregoing, if the Board of Directors determines that, on a given purchase date for an Offering (a “Purchase Date”), the number of Shares with respect to which rights are to be exercised may exceed (i) the number of Shares of Common Stock that were available for sale under the Plan on the Offering Date of the applicable Offering, or (ii) the number of Shares available for sale under the Plan on such Purchase Date, the Board of Directors may in its sole discretion provide that the Company shall make a pro rata allocation of the Shares of Common Stock available for purchase on such Offering Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participant employees exercising rights to purchase Common Stock on such Purchase Date, and (x) continue all Offerings then in effect or (y) terminate any or all Offerings then in effect.  The Company may make pro rata allocation of the Shares available on the Purchase Date of any applicable Offering, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company’s stockholders subsequent to the Offering Date for such Offering.  In the event of a pro-rata allocation, each participating employee’s right to purchase Shares shall be limited to such pro-rata amount of Shares and the remaining cash balance of the contributions shall be credited to his or her account, and the participating employees shall not have further rights against the Company or the Board of Directors.

 

  

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8.             Limitations on Grants.

 

(a)   No employee shall be granted a right hereunder if such employee, immediately after the right is granted, would own stock or rights to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, or of any subsidiary, computed in accordance with Section 423(b)(3) of the Code.

 

(b)   No employee shall be granted a right which permits the employee’s right to purchase shares under all employee stock purchase plans of the Company and its subsidiaries to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) (or such other maximum as may be prescribed from time to time by the Code) of the fair market value of such Shares (determined at the time such right is granted) for each calendar year in which such right is outstanding at any time in accordance with the provisions of Section 423(b)(8) of the Code.

 

(c)   No right granted to any participating employee under an Offering, when aggregated with rights granted under any other Offering still exercisable by the participating employee, shall cover more shares than may be purchased at an exercise price not to exceed fifteen percent (15%) of the employee’s annual rate of compensation on the date the employee elects to participate in the Offering or such lesser percentage as the Board of Directors may determine.

 

9.             Limitation on Number of Shares Purchased.

 

The maximum number of Shares that an eligible participating employee may purchase during any Exercise Period shall not exceed the number of Shares that is equal to 875 Shares multiplied by the number of calendar quarters included in such Exercise Period, provided that such purchase shall be further subject to the limitations set forth in Sections 2, 7, and 8.

 

10.           Limit on Participation.

 

Participation in an Offering shall be limited to eligible employees who elect to participate in such Offering in the manner, and within the time limitations, established by the Board of Directors when it authorizes the Offering.

 

11.           Withdrawal.

 

(a)   An employee who has elected to participate in an Offering may cancel such election as to all (but not part) of the unexercised rights granted under such Offering by giving written notice of such cancellation to the Company before the date established by the Company for such purpose.  Upon such withdrawal, any amounts paid by the employee or withheld from the employee’s compensation through payroll deductions for the purpose of purchasing Shares shall be paid to the employee, without interest, unless otherwise determined by the Board of Directors.

 

(b)   A participating employee’s withdrawal from an Offering will not have any effect upon his or her eligibility to participate in a succeeding Offering which commences after the withdrawal or in any similar plan that may hereafter be adopted by the Company.  If a participating employee withdraws from an Offering, however, payroll deductions shall not resume at the beginning of any succeeding Offering unless the employee makes a new election to participate in the Plan.

 

  

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12.           Tax Withholding.

 

Each participating employee shall pay to the Company or the applicable subsidiary, or make provision satisfactory to the Administrator for payment of, any taxes required by law to be withheld in respect of the purchase or disposition of Shares no later than the date of the event creating the tax liability.  In the discretion of the Board of Directors and subject to applicable law, such tax obligations may be paid in whole or in part by delivery of Shares to the Company, including Shares purchased under the Plan, valued at fair market value (as determined by the Board of Directors) on the date of delivery.  The Company or the applicable subsidiary may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the employee or withhold Shares purchased hereunder, which shall be valued at fair market value (as determined by the Board of Directors) on the date of withholding.

 

13.           Termination of Employment.

 

Upon the termination of employment for any reason, including the death of the employee, before the date on which any rights granted under the Plan are exercisable, all such rights shall immediately terminate and amounts paid by the employee or withheld from the employee’s compensation through payroll deductions for the purpose of purchasing the Shares shall be paid to the employee or to the employee’s estate, without interest unless otherwise determined by the Board of Directors.

 

14.           Participants’ Rights as Shareholders and Employees.

 

(a)   No participating employee shall have any rights as a shareholder in the Shares covered by a right granted hereunder until such right has been exercised, full payment has been made for the corresponding Shares and the Share certificate is actually issued.

 

(b)   Each participating employee is an employee-at-will (that is to say that either the employee or the Company or any subsidiary may terminate the employment relationship at any time for any reason or no reason at all) unless and only to the extent provided in a written employment agreement for a specified term executed by the chief executive officer of the Company or his duly authorized designee or the authorized signatory of any subsidiary.  Neither the adoption, maintenance, nor operation of the Plan nor any grant of rights hereunder shall confer upon any employee any right with respect to the continuance of his/her employment with the Company or any subsidiary nor shall they interfere with the rights of the Company or subsidiary to terminate any employee at any time or otherwise change the terms of employment, including, without limitation, the right to promote, demote or otherwise re-assign any employee from one position to another within the Company or any subsidiary.

 

15.           Rights Not Transferable.

 

Rights under the Plan are not assignable or transferable by a participating employee and are exercisable only by the employee.

 

  

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16.           Amendments to or Discontinuation of the Plan.

 

The Board of Directors of the Company shall have the right to amend, modify or terminate the Plan at any time without notice; provided, however, that the then existing rights of all participating employees shall not be adversely affected thereby, and provided further that, subject to the provisions of Section 7 above, no such amendment to the Plan shall, without the approval of the shareholders of the Company, increase the total number of Shares which may be offered under the Plan.

 

17.           Effective Date and Approvals.

 

(a)   This Plan became effective on January 31, 1998, the date it was adopted by the Board of Directors, and it was approved by the shareholders of the Company within twelve (12) months before or after the date of adoption.

 

(b)   The Company’s obligation to offer, sell and deliver the Shares under the Plan is subject to (i) the approval of any governmental authority required in connection with the authorization,  issuance or sale of such Shares, (ii) satisfaction of the listing requirements of any national securities exchange on which the Shares are then listed and (iii) compliance, in the opinion of the Company’s counsel with, all applicable federal and state securities and other laws.

 

18.           Administration of the Plan.

 

The Board of Directors or any committee or person(s) to whom it delegates its authority (the “Administrator”) shall administer, interpret and apply all provisions of the Plan as it deems necessary to meet special circumstances not anticipated or covered expressly by the Plan.  Nothing contained in this Section shall be deemed to authorize the Administrator to alter or administer the provisions of the Plan in a manner inconsistent with the provisions of Section 423 of the Code.  Determinations made by the Board of Directors with respect to any provision of the Plan or matter arising in connection therewith shall be final, conclusive and binding upon the Company and upon all participants, their heirs or legal representatives.

 

19.          Governing Law.

 

               Subject to overriding federal law, the Plan shall be governed by and interpreted consistently with the laws of the State of Delaware.

 

 

6Exhibit 10-1

		

			 

		

		

			 

		

		
			Exhibit 10.1
		

		
			
		

		
			May 12, 2014
		

		
			Hochschild Mining Holdings 
		

		
			Limited Attn: Ramon Barua
		

		
			Calle La Colonia No. 180
Urb. El Vivero
Santiago de Surco
Lima 33
		

		
			Re: Lock-Up and Leak-Out Agreement
		

		
			Ladies and Gentlemen:
		

		
			In connection with, and as a condition to, the registration of 4,100,000 shares of common stock of Gold Resource Corporation, a Colorado corporation (the “Company”), held by Hochschild Mining Holdings Ltd. (“Shareholder”),  you are delivering this countersigned lock-up and leak-out letter agreement (this “Agreement”).  It is intended that the resale of the aforementioned shares will be registered pursuant to an effective Registration Statement on Form S-3 (the “Registered Shares”) which the Company undertakes to file with the United States Securities and Exchange Commission (the “Registration Statement”) following the date of this Agreement and no later than the date specified in Section 6 herein.  As a condition to the Company’s undertaking to register the Registered Shares and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Shareholder hereby agrees as follows:
		

			
	
			
				 1.
			

			
	
			
			Upon the declaration of effectiveness of the Registration Statement by the SEC (the “Effective Date”) and for so long as the Registered Shares are held by the Shareholder (the “Covered Period”), and except as otherwise provided by this Agreement, the Shareholder (i) will not offer, sell, contract to sell, grant or sell any option, right or warrant for the purchase of, pledge, hypothecate, assign, lend or otherwise transfer or dispose of any of the Registered Shares; (ii) enter into any swap or any other arrangement or transaction that transfers to another, in whole or in part, any of the economic characteristics of ownership of the Registered Shares, whether any such swap or transaction is to be settled by delivery of such Registered Shares, in cash or otherwise; or (iii) engage in any short selling of the Registered Shares.  

		
			 
		

		
			For the avoidance of doubt, nothing contained in this Agreement shall affect the Shareholder’s ability to engage in any of the activities listed in (i) through (iii) with respect to shares of common stock of the Company that are not Registered Shares, including under Rule 144 (or any successor or complementary rule thereto) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and any private sales exempt from registration under Sections 4(2) and 4(1 and 1/2) of the Securities Act. 
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			During the Covered Period the Shareholder shall be permitted to transact sales of the Registered Shares through any securities exchange upon which the Registered Shares may be listed so long as the closing price of the common stock of the Company on the trading day prior to the day on which the Shareholder wishes to sell any Registered Shares is not 6% lower than the Reference Closing Price. For the purposes of this section 2, the  Reference Closing Price shall be the closing price of the Company’s common stock as reported on the NYSE MKT on the last day of the prior trading week (typically Friday unless such day is a holiday).  For the purposes of clarity, if the closing price of the Company’s common stock is more than 6% lower than the Reference Closing Price, the Shareholder agrees to refrain from sales of the Registered Shares into the market for the remainder of that trading week (meaning the period covering all business 
		

		 

		

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			days between Monday and Friday during which the NYSE is open for trading equity securities).  Notwithstanding the foregoing, market sales of Registered Shares during the Covered Period may not exceed two million (2,000,000) shares per 30 day period beginning on the Effective Date.

		
			 
		

			
	
			
				 3.
			

			
	
			
			If on any day from the Effective Date, the closing price of the Company’s common stock is more than 15% lower than the closing price of the Company’s common stock as reported on the NYSE MKT on the most recent business day prior to the Effective Date, the Shareholder shall refrain from selling the Registered Shares into the market for 30 calendar days from the date on which the 15% share price fall occurs.  For the avoidance of doubt, following the expiration of such 30-day period, the restriction set out in this section 3 shall no longer apply and the Shareholder may resume sales of the Registered Shares subject only to the limitations set forth in section 2 above.

		
			 
		

			
	
			
				 4.
			

			
	
			
			The Shareholder agrees that negotiated sales of Registered Shares in blocks of 100,000 or more shares to a single purchaser including any broker or dealer (a “Block Trade”) shall be made only to purchasers mutually agreed to by the Shareholder and the Company (which agreement shall not be unreasonably withheld by the Company and shall be provided by the Company within two (2) business days).  Block Trades to a mutually agreed upon purchaser shall be exempt from the foregoing volume and price limitations.

		
			 
		

			
	
			
				 5.
			

			
	
			
			The Shareholder shall have its broker keep records of all trades of the Registered Shares and shall provide such information to the Company not less than 24 hours following any request.

		
			 
		

			
	
			
				 6.
			

			
	
			
			In the event of any material breach by the Shareholder of any covenant, obligation or other provision contained in this Agreement, the Company shall have the right to immediately request the termination of the Registration Statement and/or withdrawal of any unsold shares from the Registration Statement, in addition to pursuing any other remedy at law or equity that may be available to the Company.

		
			 
		

			
	
			
				 7.
			

			
	
			
			The Shareholder may, upon written notice to the Company, terminate this Agreement with immediate effect if the Effective Date has not occurred on or before August 31, 2014.

		
			 
		

			
	
			
				 8.
			

			
	
			
			Notwithstanding the terms set out herein, this Agreement will terminate upon the Shareholder ceasing to hold more than 10% of the Company’s common stock (on an outstanding basis). 

		
			 
		

			
	
			
				 9.
			

			
	
			
			The Company shall use its reasonable best efforts to maintain the effectiveness of the Registration Statement until all of the Registered Shares are sold by the Shareholder, including without limitation filing all required amendments and reports. 

		
			 
		

			
	
			
				 10.
			

			
	
			
			The Shareholder represents and warrants that the Shareholder has full power and authority to enter into this Agreement, and that, upon request, the Shareholder will execute any additional documents reasonably necessary to carry out the transactions contemplated hereby. Any obligations created by this Agreement shall be binding upon the heirs, devisees, personal representatives, successors and assigns of the Shareholder.

		
			 
		

			
	
			
				 11.
			

			
	
			
			This Agreement shall be governed by and interpreted and construed in accordance with the laws of the State of Colorado of the United States of America, without regard to the conflicts of law provisions thereof.  In any action between or among any of the parties arising out of this Agreement, each of the parties irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal courts having jurisdiction over Denver County, Colorado and no party shall object to the removal of such action to any federal court having jurisdiction over Denver County, Colorado.

		
			 
		

			
	
			
				 12.
			

			
	
			
			No term or provision of this Agreement may be amended, changed, waived, altered or modified except by written instrument executed and delivered by the party against whom such amendment, change waiver, alteration or modification is to be enforced.

		
			 
		

		
			By countersigning below, you hereby agree in writing to be bound by the terms of this letter agreement. You agree that your right to sell common stock is subject to applicable law.
		

		

		

		 

		

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		Yours very truly,
		

		
			/s/ Jason D. Reid
		

		
			Jason D. Reid
		

		
			Chief Executive Officer and President
		

		
			 
		

		
			Agreed to by Shareholder:
		

		
			HOCHSCHILD MINING HOLDINGS LIMITED. 
		

		
			By: /s/ Jose A. Palma
		

		
			Name: Jose A. Palma
		

		
			Title: Authorized Signatory
		

		
			 
		

		 

		

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