Document:

Exhibit 10.14

 

NONQUALIFIED STOCK
OPTION AGREEMENT

 

NONQUALIFIED
STOCK OPTION AGREEMENT, dated as of November      ,
2004 (the “Agreement”), between LHP Holding Corp., a Delaware
corporation (the “Company”), and the grantee whose name appears on the
signature page hereof (the “Grantee”). 
Capitalized terms used in this Agreement and not defined herein shall
have the meaning ascribed to such terms in the LHP Holding Corp. 2004 Stock
Option Plan.

 

WITNESSETH:

 

WHEREAS,
the Board has adopted the Plan to motivate officers and key employees of the
Company and the Subsidiaries by providing them with an ownership interest in
the Company;

 

WHEREAS,
pursuant to the Plan, the Board has approved the grant to the Grantee of
non-qualified stock option to purchase the aggregate number of shares of Common
Stock set forth on the signature page hereof, at an exercise price of $2.37 per
share; and

 

WHEREAS,
the Grantee and the Company desire to enter into an agreement to evidence and
confirm the grant of such option on the terms and conditions set forth herein.

 

NOW,
THEREFORE, to evidence the option so granted, and set forth the terms and
conditions governing such option, the Company and the Grantee hereby agree as
follows:

 

1.             Confirmation of Grant; Exercise
Price; Plan Controls.  The Company
hereby evidences and confirms its grant to the Grantee, effective as of the
date hereof (the “Grant Date”), of an option (the “Option”) to
purchase the aggregate number of shares of Common Stock set forth on the
signature page hereof (each, a “Share” and, collectively, the “Shares”).  The Option shall have an exercise price of
$2.37 per share, subject to adjustment as provided in the Plan (the “Exercise
Price”).  The Option is not intended
to be an incentive stock option under the Code. 
The Option granted hereunder is being issued pursuant to and in
accordance with the Plan and, as such, is subject in all respects to the Plan,
all of the terms of which are made a part of and incorporated into this
Agreement.  In the event of any conflict
between any term of this Agreement and the terms of the Plan, the terms of the
Plan shall control.

 

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2.             Exercisability.  Except as otherwise provided in this
Agreement and subject to the continuous employment of the Grantee with the
Company or any Subsidiary until the applicable vesting date, the Option granted
hereby shall vest and become exercisable in four equal installments, on each of
the first four anniversaries of May 27, 2004; provided that, the Board
may accelerate the vesting or exercisability of all or any portion of the
Option, at any time and from time to time. 
Shares eligible for purchase may, subject to the provisions hereof
(including, but not limited to, the Plan as incorporated by reference herein),
thereafter be purchased, at any time and from time to time, until the date one
day prior to the date on which the Option terminates.

 

3.             Termination of the Option.

 

(a)           Normal Termination Date.  Unless an earlier termination date shall
occur as specified in Section 3(b), the Option shall terminate and be cancelled
on the tenth anniversary of the Grant Date (the “Normal Termination Date”).

 

(b)           Early Termination.

 

(i)            Death, Disability or Retirement.  In the event the Grantee’s employment with
the Company and the Subsidiaries is terminated by reason of the Grantee’s
death, Disability or Retirement, the Option (or portion thereof) then held by
the Grantee that is vested and exercisable as of the date of such termination
shall thereafter remain exercisable by the Grantee or, if applicable, the
Grantee’s beneficiary, for a period of one year from the date of such
termination, but in no event after the Normal Termination Date.

 

(ii)           For Cause.  In the event the Grantee’s employment with
the Company and the Subsidiaries is terminated by the Company for Cause, the
Option (or portion thereof) then held by the Grantee (whether or not then
vested or exercisable) shall be immediately forfeited and be canceled, in full,
on the date of such termination of employment.

 

(iii)          For Any Other Reason.  In the event the Grantee’s employment with
the Company and the Subsidiaries is terminated for any reason other than a
reason specified in Section 3(b)(i) or (ii), the Option (or portion thereof)
then held by the Grantee that is then vested and exercisable shall remain
exercisable for the 60 day period immediately 

 

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following such termination of employment or until the
Normal Termination Date, whichever period is shorter.

 

(iv)          Termination of Unvested Options.  The Option (or portion thereof) that is not
vested and exercisable following the Grantee’s termination of employment shall
be immediately forfeited and be canceled on the date of such termination of
employment.

 

4.             Restrictions on Exercise;
Non-Transferability of the Option.

 

(a)           Restrictions on Exercise.  Once vested in accordance with the provisions
of this Agreement, the Option may be exercised only with respect to full shares
of Common Stock.  No fractional shares of
Common Stock shall be issued. 
Notwithstanding any other provision of this Agreement, the Option may
not be exercised in whole or in part, and no certificates representing Shares
shall be delivered, unless (i) all requisite approvals and consents of
any governmental authority of any kind having jurisdiction over the exercise of
the Option shall have been secured, (ii) the purchase of the Shares
upon the exercise of the Option shall be exempt from registration under
applicable U.S. federal and state securities laws, and applicable non-U.S.
securities laws, or the Shares shall have been registered under such laws, and
(iii) all applicable U.S. federal, state and local and non-U.S. tax
withholding requirements shall have been satisfied.  The Company shall use commercially reasonable
efforts to obtain the consents and approvals referred to in clause (i) of the
preceding sentence.

 

(b)           Non-Transferability of the Option.  No Option may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution.  All
rights with respect to any Option granted to a Grantee hereunder shall be
exercisable during the Grantee’s lifetime only by such Grantee.

 

5.             Manner of Exercise.  To the extent that the Option (or portion
thereof) shall have become and remain vested and exercisable as provided in
Section 2 and subject to such reasonable administrative regulations as the
Board may have adopted, such Option (or portion thereof) may be exercised, in whole
or in part, by notice to the Secretary of the Company in writing given on the
date as of which the Grantee will so exercise the Options (the “Exercise
Date”), specifying the number of Shares with respect to which the Option is
being exercised (the “Exercise Shares”), subject to the Grantee becoming
a party to the Stockholders Agreement, executing and delivering a Subscription
Agreement, and the delivery to the Company by the Grantee, on or within ten
business 

 

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days following the
Exercise Date, of full payment for the Exercise Shares in United States dollars
in cash, or cash equivalents satisfactory to the Company, and in an amount
equal to the product of the number of Exercise Shares, multiplied by the Exercise
Price.  Subject to the terms of this
Agreement (including, but not limited to, the Plan as incorporated by reference
herein), as soon as practicable after receipt of evidence of the Grantee’s
execution of a Subscription Agreement and the Stockholders Agreement, receipt
of a written exercise notice, and receipt of the aggregate Exercise Price, the
Company shall make (or cause to be made) an appropriate book entry reflecting
the Participant’s ownership of the shares of Common Stock so acquired and shall
deliver to the Participant a certificate or certificates representing the
shares of Common Stock acquired upon the exercise thereof, bearing appropriate
legends as provided in Section 6(b).  If
shares of Common Stock are traded on a U.S. national securities exchange or bid
and ask prices for shares of Common Stock are quoted over NASDAQ, the Grantee
may, in lieu of cash, tender shares of Common Stock that have been owned by the
Grantee for at least six months, having a Fair Market Value on the Exercise Date
equal to the aggregate Exercise Price or may deliver a combination of cash and
such shares of Common Stock having a Fair Market Value equal to the difference
between the aggregate Exercise Price and the amount of such cash as payment of
the aggregate Exercise Price, subject to such rules and regulations as may be
adopted by the Board to provide for the compliance of such payment procedure
with applicable law, including Section 16(b) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”).  The Company may require the Grantee to
furnish or execute such other documents as the Company shall reasonably deem
necessary (i) to evidence such exercise, (ii) to
determine whether registration is then required under the Securities Act and (iii) to
comply with or satisfy the requirements of the Securities Act, applicable state
or non-U.S. securities laws or any other law.

 

6.             Grantee’s Representations,
Warranties and Covenants.

 

(a)           Investment Intention.  The Grantee represents and warrants that the
Option has been, and any Exercise Shares will be, acquired by the Grantee
solely for the Grantee’s own account for investment and not with a view to or
for sale in connection with any distribution thereof.  The Grantee agrees that the Grantee will not,
directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise
dispose of the Option (or any portion thereof) or any of the Exercise Shares
(or solicit any offers to buy, purchase or otherwise acquire or take a pledge
of all or any of the Options or any of the Exercise Shares), except in
compliance with the Securities Act of 1933, as amended (the “Securities Act”)
and the rules and regulations of the Securities and Exchange Commission
thereunder, and in compliance with applicable state securities or “blue sky”
laws and non-U.S. securities laws.  The
Grantee further understands, acknowledges and agrees that none of the Exercise
Shares may be transferred, sold, pledged, hypothecated 

 

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or otherwise disposed of
unless the provisions of the Subscription Agreement and the Stockholders
Agreement shall have been complied with or have expired.

 

(b)           Legends.  The Grantee acknowledges that any certificate
representing the Exercise Shares shall bear an appropriate legend, which will
include language substantially in the following form:

 

“THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A SUBSCRIPTION
AGREEMENT, DATED AS OF ______________, 2004, AS AMENDED FROM TIME TO TIME, AND
A STOCKHOLDERS AGREEMENT, DATED AS OF MAY 27, 2004, BY AND AMONG THE COMPANY
AND CERTAIN STOCKHOLDERS OF THE COMPANY, AS AMENDED FROM TIME TO TIME, AND
NEITHER THIS CERTIFICATE NOR THE SHARES REPRESENTED BY IT ARE ASSIGNABLE OR
OTHERWISE TRANSFERABLE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
SUBSCRIPTION AGREEMENT AND SUCH STOCKHOLDERS AGREEMENT, COPIES OF WHICH ARE ON
FILE WITH THE SECRETARY OF THE COMPANY.”

 

“THE SHARES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE
TRANSFERRED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (i) (A) SUCH
DISPOSITION IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, (B) THE HOLDER HEREOF SHALL
HAVE DELIVERED TO THE COMPANY AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL
SHALL BE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT SUCH
DISPOSITION IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF SUCH ACT OR (C) A
NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION, REASONABLY
SATISFACTORY TO COUNSEL FOR THE COMPANY, SHALL HAVE BEEN OBTAINED WITH RESPECT
TO SUCH DISPOSITION AND (ii) SUCH DISPOSITION IS PURSUANT TO
REGISTRATION UNDER ANY APPLICABLE STATE AND FOREIGN SECURITIES LAWS OR AN
EXEMPTION THEREFROM.”

 

(c)           Securities Law Matters.  The Grantee acknowledges receipt of advice
from the Company that (i) the Exercise Shares have not been registered
under the Securities Act or qualified under any state securities or “blue sky”
laws, (ii) it is not 

 

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anticipated that there
will be any public market for the Exercise Shares, (iii) the Exercise
Shares must be held indefinitely and the Grantee must continue to bear the
economic risk of the investment in the Exercise Shares unless the Exercise
Shares are subsequently registered under the Securities Act and such state laws
or an exemption from registration is available, (iv) Rule 144
promulgated under the Securities Act (“Rule 144”) is not presently
available with respect to the sales of any securities of the Company, and the
Company has made no covenant to make Rule 144 available, (v) when
and if the Exercise Shares may be disposed of without registration in reliance
upon Rule 144, such disposition can be made only in limited amounts in
accordance with the terms and conditions of such Rule, (vi) the
Company does not plan to file reports with the Commission or make public
information concerning the Company available unless required to do so by law or
pursuant to its financing documents, (vii) if the exemption
afforded by Rule 144 is not available, sales of the Exercise Shares may be
difficult to effect because of the absence of public information concerning the
Company, (viii) a restrictive legend in the form heretofore set forth
shall be placed on the certificates representing the Exercise Shares, (ix)
pursuant to the Subscription Agreement and the Stockholders Agreement, the
Common Stock will be subject to restrictions on transfer and to rights of third
parties with respect thereto, and (x) a notation shall be made in the
appropriate records of the Company indicating that the Exercise Shares are
subject to restrictions on transfer set forth in the Subscription Agreement and
the Stockholders Agreement, and, if the Company should in the future engage the
services of a stock transfer agent, appropriate stop-transfer restrictions will
be issued to such transfer agent with respect to the Exercise Shares.

 

(d)           Compliance with Rule 144.  If any of the Exercise Shares are to be
disposed of in accordance with Rule 144, the Grantee shall transmit to the
Company an executed copy of Form 144 (if required by Rule 144) no later than
the time such form is required to be transmitted to the Commission for filing
and such other documentation as the Company may reasonably require to assure
compliance with Rule 144 in connection with such disposition.  The Grantee understands that the Subscription
Agreement provides and the Grantee hereby agrees that, in general, in the event
the Company files a registration statement, the Grantee may not effect any
public offer or sale (including under Rule 144) within 15 days prior or 180
days after the effective date of the registration (except as part of such
registration).

 

(e)           Ability to Bear Risk.  The Grantee covenants that the Grantee will
not exercise any or all of the Options unless (i) the financial
situation of the Grantee is such that the Grantee can afford to bear the economic
risk of holding the Exercise Shares for an indefinite period and (ii) the
Grantee can afford to suffer the complete loss of the Grantee’s investment in
the Exercise Shares.

 

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(f)            Investor Status.  The Grantee represents and warrants that, as
of the date hereof, the Grantee, (i) (A) has a pre-existing
personal or business relationship with the Company or any of its managers,
officers, controlling persons or managers, or (B) by reason of the
Purchaser’s business or financial experience or the business or financial
experience of the Purchaser’s professional advisors who are unaffiliated with
and who are not compensated, directly or indirectly, by the Company or any
Affiliate thereof, the Purchaser could be reasonably assumed to have the
capacity to evaluate the risks of an investment in the Shares and to protect
the Purchaser’s interests in connection with the purchase of the Shares
hereunder, and (ii) is an officer or employee of the Company or any
Subsidiary.  The term “preexisting
personal or business relationship” includes, but is not limited to, any
relationship consisting of personal or business contacts of a nature and
duration such as would enable a reasonably prudent purchaser to be aware of the
character, business acumen and general business and financial circumstances of
the person with whom such relationship exists.

 

(g)           Repurchase Rights Upon Termination
of Employment.  The Grantee
acknowledges and agrees that any Subscription Agreement shall contain certain
rights of the Company to repurchase all or any portion of the Exercise Shares
upon termination of the Grantee’s employment and thereafter.

 

7.             Representations and Warranties
of the Company.  The Company
represents and warrants to the Grantee that (a) the Company has
been duly incorporated and is an existing corporation in good standing under
the laws of the State of Delaware, (b) this Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and
legally binding obligation of the Company enforceable against the Company in
accordance with its terms and (c) the Exercise Shares, when issued,
delivered and paid for, upon exercise of the Option in accordance with the
terms hereof, will be duly authorized, validly issued, fully paid and
nonassessable, and free and clear of any liens or encumbrances other than those
created pursuant to this Agreement or otherwise in connection with the
transactions contemplated hereby.

 

8.             Miscellaneous.

 

(a)           Binding Effect; Benefits;
Assignability.  This Agreement shall
be binding upon and inure to the benefit of the parties to this Agreement and
their respective successors and assigns. 
Nothing in this Agreement, express or implied, is intended or shall be
construed to give any person other than the parties to this Agreement or their
respective successors or assigns any legal or equitable right, remedy or claim
under or in respect of any agreement or any provision contained herein.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be 

 

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assignable by the Company
or the Grantee without the prior written consent of the other party.

 

(b)           Amendment.  This Agreement may be amended, modified or
supplemented only by a written instrument executed by the Purchaser and the
Company.

 

(c)           Delegation by the Board.  All of the powers, duties and
responsibilities of the Board specified in this Agreement may, to the full
extent permitted by applicable law, be exercised and performed by any duly
constituted committee thereof to the extent authorized by the Board to exercise
and perform such powers, duties and responsibilities.

 

(d)           Section and Other Headings, etc.  The section and other headings contained in
this Agreement are for reference purposes only and shall not affect the meaning
or interpretation of this Agreement.

 

(e)           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.  The parties hereto agree to accept a signed
facsimile copy of this Agreement as a fully binding original.

 

— Signature page follows —

 

8

 

IN
WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of
the date first above written.

 

 

	
   

  	
  LHP HOLDING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  «Name»

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address of the Grantee:

  
	
   

  	
   

  	
   

  
	
   

  	
  «Address»

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total
  Number of Shares of Common Stock Subject to the Option:

  	
   

  	
   

  
	
   

  	
  «Options»

  

 

9Exhibit 10.15

 

SUBSCRIPTION AGREEMENT

 

SUBSCRIPTION
AGREEMENT, dated as of [             ],
200  (the “Agreement”), between
LHP Holding Corp., a Delaware corporation (the “Company”), and the
purchaser whose name appears on the signature page hereof (the “Purchaser”).  Capitalized terms used in this Agreement and
not defined herein shall have the meaning ascribed to such terms in the LHP
Holding Corp. 2004 Stock Option Plan.

 

WITNESSETH:

 

WHEREAS,
the Board has adopted the Plan to provide officers and key employees of the
Company and the Subsidiaries with opportunities to purchase shares of Common
Stock;

 

WHEREAS,
the Purchaser was granted Options under the Plan and now desires to exercise
all or a portion of the Options and to subscribe for and purchase from the
Company pursuant to the Plan the aggregate number of shares of Common Stock set
forth on the signature page hereof (each a “Share” and, collectively,
the “Shares”) on the terms and conditions set forth herein and in the
Plan; and

 

WHEREAS,
the Company desires to sell the Shares to the Purchaser on the terms and
conditions set forth herein and in the Plan.

 

NOW,
THEREFORE, to implement the foregoing and in consideration of the mutual
agreements contained herein, the parties hereto hereby agree as follows:

 

1.             Purchase and Sale of Common
Stock.

 

(a)           Purchase
of Common Stock.  Subject to the
terms and conditions of this Agreement, the Purchaser hereby subscribes for and
shall purchase, and the Company shall sell to the Purchaser, the Shares at a
purchase price of $[----] per Share (the “Purchase Price”), at the
Closing provided for in Section 2(a) hereof. 
The Shares purchased hereunder are being issued pursuant to and in
accordance with the Plan and, as such, are subject in all respects to the Plan,
all of the terms of which are made a part of and incorporated into this
Agreement.  In the event of any conflict
between any term of this Agreement and the terms of the Plan, the terms of the
Plan shall control.  Notwithstanding
anything to the contrary in this Agreement, the Company shall have no
obligation to sell any Common Stock to (i) any person who is not an
employee of the Company or any Subsidiary at the time that the Options were
granted to such person, or (ii) any person who is a resident of a
jurisdiction in which the sale of Common Stock to such person would constitute
a violation of the securities, “blue sky” or other laws of such jurisdiction.

 

1

 

(b)           Consideration.  Subject to the terms and conditions of this
Agreement, the Purchaser shall deliver to the Company at the Closing (as
defined below) immediately available funds in an amount equal to the aggregate
Purchase Price for the Shares set forth on the signature page hereof.

 

2.             Closing.

 

(a)           Time
and Place.  Except as otherwise
agreed by the Company and the Purchaser in writing, the closing (the “Closing”)
of the transactions contemplated by this Agreement shall be held at the offices
of the Company on or about [-------], 2004.

 

(b)           Delivery
by the Company.  At the Closing, the
Company shall deliver to the Purchaser a stock certificate registered in the
Purchaser’s name and representing the Shares, which certificate shall bear the
legends set forth in Section 3(b).

 

(c)           Delivery
by the Purchaser.  At the Closing,
the Purchaser shall deliver to the Company (i) the consideration
referred to in Section 1(b), and (ii) a joinder to the Stockholders
Agreement, executed by the Purchaser.

 

3.             Purchaser’s Representations,
Warranties and Covenants.

 

(a)           Investment
Intention.  The Purchaser represents
and warrants that the Purchaser is acquiring the Shares solely for the
Purchaser’s own account for investment and not with a view to or for sale in
connection with any distribution thereof. 
The Purchaser agrees that the Purchaser will not, directly or
indirectly, offer, transfer, sell, pledge, hypothecate or otherwise dispose of
any of the Shares (or solicit any offers to buy, purchase or otherwise acquire
or take a pledge of any Shares), except in compliance with the Securities Act
of 1933, as amended (the “Securities Act”), and the rules and
regulations of the Securities and Exchange Commission (the “Commission”)
thereunder, and in compliance with applicable state and foreign securities or “blue
sky” laws.  The Purchaser further
understands, acknowledges and agrees that none of the Shares may be
transferred, sold, pledged, hypothecated or otherwise disposed of (i) unless
the provisions of Sections 4 and 5, and the applicable provisions of the
Agreement (including, but not limited to, the Plan as incorporated by reference
herein) and the Stockholders Agreement shall have been complied with or have
expired, (ii) unless (A) such disposition is pursuant to an
effective registration statement under the Securities Act, (B) the
Purchaser shall have delivered to the Company an opinion of counsel, which
opinion and counsel shall be reasonably satisfactory to the Company, to the
effect that such disposition is exempt from the provisions of Section 5 of
the Securities Act, or (C) a no-action letter from the Commission,
reasonably satisfactory to the Company, shall have been obtained with respect
to such disposition, and (iii) unless such disposition is pursuant
to registration under any applicable state and foreign securities laws or an
exemption therefrom.

 

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(b)           Legends.  The Purchaser acknowledges that the
certificate or certificates representing the Shares shall bear an appropriate
legend, which will include, without limitation, the following language:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE TERMS AND CONDITIONS OF A SUBSCRIPTION AGREEMENT, DATED AS OF [           ],
2004, AS AMENDED FROM TIME TO TIME, AND A STOCKHOLDERS AGREEMENT, DATED AS OF
MAY 27, 2004, BY AND AMONG THE COMPANY AND CERTAIN STOCKHOLDERS OF THE COMPANY,
AS AMENDED FROM TIME TO TIME, AND NEITHER THIS CERTIFICATE NOR THE SHARES
REPRESENTED BY IT ARE ASSIGNABLE OR OTHERWISE TRANSFERABLE EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF SUCH SUBSCRIPTION AGREEMENT AND SUCH STOCKHOLDERS
AGREEMENT, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE COMPANY.”

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY
STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS (i) (A) SUCH
DISPOSITION IS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, (B) THE HOLDER HEREOF SHALL HAVE
DELIVERED TO THE COMPANY AN OPINION OF COUNSEL, WHICH OPINION AND COUNSEL SHALL
BE REASONABLY SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT SUCH DISPOSITION
IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF SUCH ACT OR (C) A
NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION, REASONABLY
SATISFACTORY TO COUNSEL FOR THE COMPANY, SHALL HAVE BEEN OBTAINED WITH RESPECT
TO SUCH DISPOSITION AND (ii) SUCH DISPOSITION IS PURSUANT TO
REGISTRATION UNDER ANY APPLICABLE STATE AND FOREIGN SECURITIES LAWS OR AN
EXEMPTION THEREFROM.”

 

(c)           Securities
Law Matters.  The Purchaser
acknowledges receipt of advice from the Company that (i) the Shares
have not been registered under the Securities Act or any state or foreign
securities or “blue sky” laws, (ii) it is not anticipated that
there will be any public market for the Shares, (iii) the Shares
must be held indefinitely and the Purchaser must continue to bear the economic
risk of the investment in the Shares unless the Shares are subsequently
registered under the Securities Act and such state or foreign laws or an
exemption from registration is available, (iv) Rule 144 promulgated
under the Securities Act (“Rule 144”) is not presently available with
respect to sales of securities of the Company and the Company has made no
covenant to make Rule 144 available,

 

3

 

(v) when and if the Shares may be disposed of without
registration in reliance upon Rule 144, such disposition can generally be made
only in limited amounts in accordance with the terms and conditions of such
rule, (vi) the Company does not plan to file reports with the Commission
or make information concerning the Company publicly available unless required
to do so by law or by the terms of its Financing Agreements (as defined below),
(vii) if the exemption afforded by Rule 144 is not available,
sales of the Shares may be difficult to effect because of the absence of public
information concerning the Company, (viii) a restrictive legend in
the form heretofore set forth shall be placed on the certificates representing
the Shares and (ix) a notation shall be made in the appropriate
records of the Company indicating that the Shares are subject to restrictions
on transfer set forth in this Agreement (including, but not limited to, the
Plan as incorporated by reference herein) and, if the Company should in the
future engage the services of a stock transfer agent, appropriate stop-transfer
restrictions will be issued to such transfer agent with respect to the Shares.

 

(d)           Compliance
with Rule 144.  If any of the Shares
are to be disposed of in accordance with Rule 144, the Purchaser shall transmit
to the Company an executed copy of Form 144 (if required by Rule 144) no later
than the time such form is required to be transmitted to the Commission for
filing and such other documentation as the Company may reasonably require to
assure compliance with Rule 144 in connection with such disposition.

 

(e)           Ability
to Bear Risk.  The Purchaser
represents and warrants that (i) the financial situation of the
Purchaser is such that he can afford to bear the economic risk of the Shares
for an indefinite period and (ii) the Purchaser can afford to suffer the
complete loss of the Purchaser’s investment in the Shares.

 

(f)            Investor
Status.  The Purchaser represents and
warrants that, as of the date hereof, the Purchaser (i) (A) has a
pre-existing personal or business relationship (as defined below) with the
Company or any of its managers, officers, controlling persons or managers, or (B)
by reason of the Purchaser’s business or financial experience or the business
or financial experience of the Purchaser’s professional advisors who are
unaffiliated with and who are not compensated, directly or indirectly, by the
Company or any Affiliate thereof, could be reasonably assumed to have the
capacity to evaluate the risks of an investment in the Shares and to protect
the Purchaser’s interests in connection with the purchase of the Shares
hereunder, and (ii) was an officer or employee of the Company or any
Subsidiary at the time the Options were granted to the Purchaser.  The term “preexisting personal or business
relationship” includes, but is not limited to, any relationship consisting
of personal or business contacts of a nature and duration such as would enable
a reasonably prudent purchaser to be aware of the character, business acumen
and general business and financial circumstances of the person with whom such
relationship exists

 

4

 

(g)           Restrictions
on Sale upon Public Offering.  The
Purchaser agrees that, in the event that the Company files a registration
statement under the Securities Act with respect to an underwritten public
offering of any shares of its capital stock, the Purchaser will not effect any
public sale (including a sale under Rule 144) or distribution of any shares of
Common Stock (other than as part of such underwritten public offering) during
the 20 days prior to and the 180 days after the effective date of such
registration statement.

 

(h)           Section
83(b) Election.  The Purchaser agrees
that, within 20 days after the Closing, the Purchaser shall give notice to the
Company as to whether or not the Purchaser has made or will make an election
pursuant to Section 83(b) of the Code, with respect to the Shares
purchased at such Closing, and acknowledges that the Purchaser will be solely
responsible for any and all tax liabilities payable by the Purchaser in
connection with the Purchaser’s purchase and receipt of the Shares or
attributable to the Purchaser’s making or failing to make such an election.

 

4.             Restrictions on Disposition of
Shares.  Neither the Purchaser nor
any of his heirs or representatives shall sell, assign, transfer, pledge or
otherwise directly or indirectly dispose of or encumber any of the Shares to or
with any other person, firm or corporation (including, without limitation,
transfers to any other holder of the Company’s capital stock, dispositions by
gift, by will, by a corporation as a distribution in liquidation and by operation
of law other than a transfer of Shares by operation of law to the estate of the
Purchaser upon the death of the Purchaser; provided that such estate
shall be bound by all provisions of this Agreement) except as provided in
Section 5 or as otherwise permitted by the Board.

 

5.             Call Rights Upon and After
Termination of Employment.

 

(a)           Termination
Call Right.  If the Purchaser’s
employment with the Company and any Subsidiary that employs the Purchaser is
terminated (whether before or after the date hereof) (i) for Cause at
any time, or (ii) for any other reason during the period ending on the
sixth anniversary of the Closing, the Company shall have the right (the “Termination
Call Right”) to repurchase up to that number of Shares held by the Purchaser,
and shall have 90 days from the later of the Closing and date of termination
during which to give notice in writing to the Purchaser (or the Purchaser’s
estate) of its election to exercise or not to exercise such right, in whole or
in part.  Subject to Section 7(c), the
aggregate purchase price of the Shares purchased pursuant to the Termination
Call Right shall equal (A) if the Purchaser’s employment is terminated
due to his death, Disability or Retirement, by the Company without Cause or by
the Purchaser for Good Reason, their aggregate Fair Market Value as of the
termination date, and (B) if the Purchaser’s employment is terminated by the
Company for Cause or by the Purchaser without Good Reason, the lower of their
aggregate Purchase Price and their aggregate Fair Market Value as of the
termination date.  If the Company fails
to give notice that it 

 

5

 

intends to exercise such right within the period specified or the
Company gives notice that it does not intend to exercise such right or that it
intends to exercise such right with respect to only a portion of the Shares
subject to the Termination Call Right, the Purchaser (or the Purchaser’s
estate) shall be entitled to (I) if the Purchaser’s employment is terminated
for death or Disability, then on notice from the Purchaser (or the Purchaser’s
estate) in writing and delivered to the Company within 90 days following the
earlier of the last day of the Company’s 90-day notice period and the date the
Company delivers written notice to the Purchaser indicating whether the Company
will exercise its rights under the Termination Call Right, the Company shall
purchase all (and not less than all) of the Shares then held by the Purchaser
(or the Purchaser’s estate), or (II) retain the Shares which could
have been acquired on exercise thereof, subject to all of the provisions of the
Agreement (including, but not limited to, the Plan as incorporated by reference
herein and the Post-Employment Call Right, the Stockholders Agreement and any
other agreement to which such Common Stock is subject).  All purchases pursuant to the Termination
Call Right by the Company shall be in the manner prescribed by
Section 5(c) hereof.

 

(b)           Post-Employment
Call Right.  If, following any termination
of employment (whether before or after the date hereof), the Purchaser commits
any breach of any post-termination non-competition, non-solicitation,
confidentially, or other similar agreement or covenant with the Company (as
determined by the Board in its sole discretion), then the Company shall have
the right to repurchase all or any portion of the Shares then held by the
Participant, and shall have 90 days from the date the Company becomes aware of
such breach during which to give notice in writing to the Purchaser (or the
Purchaser’s estate) of its election to exercise or not to exercise such right,
in whole or in part.  Subject to Section
7(c), the aggregate purchase price for the Shares purchased pursuant to the
Post-Employment Call Right shall equal the lower of their aggregate Purchase
Price and their aggregate Fair Market Value as of the first date of such
breach.  If the Company fails to give
notice that it intends to exercise such right within the period specified or
the Company gives notice that it does not intend to exercise such option or
that it intends to exercise such option with respect to only a portion of the
Shares subject to, the Purchaser (or the Purchaser’s estate) shall be entitled
to retain the Shares which could have been acquired on exercise thereof,
subject to all of the provisions of the Agreement (including, but not limited
to, the Plan as incorporated by reference herein), the Stockholders Agreement
and any other agreement to which such Common Stock is subject.  All purchases pursuant to the Post-Employment
Call Right by the Company shall be in the manner prescribed by
Section 5(c) hereof.

 

(c)           Closing
of Purchase; Payment of Purchase Price. 
Subject to Section 7, the closing of a purchase pursuant to this
Section 5 shall take place at the principal office of the Company on the
tenth business day following whichever of the following is applicable:  (i) the receipt by the Purchaser
(or the Purchaser’s estate) of the notice of the Company of its exercise of its
right to purchase any of the Shares pursuant to Section 5(a) 

 

6

 

or (b), as the case may be.  At
the closing, (i) the Company, shall pay to the Purchaser (or the
Purchaser’s estate) an amount equal to the purchase price as determined in
accordance with Section 5(a) or (b), as the case may be, and (ii) the
Purchaser (or the Purchaser’s estate) shall deliver to the Company such
certificates or other instruments representing the Shares so purchased,
appropriately endorsed by the Purchaser (or the Purchaser’s estate), as the
Company may reasonably require.

 

(d)           Board
Discretion.  Notwithstanding anything
to the contrary contained in this Section 5, the Board may, at or after the
Closing, waive the Call Rights in respect of Shares upon termination of
employment.

 

(e)           Certain
Adjustments.  Notwithstanding
anything to the contrary contained in this Section 5, in the event of an
Adjustment Event, the purchase price payable pursuant to this Section 5
(including any minimum or maximum purchase price specified herein or in effect
as a result of a prior adjustment) shall be appropriately adjusted as provided
in the Plan to reflect such event.

 

6.             Representations and Warranties
of the Company.  The Company
represents and warrants to the Purchaser that (a) the Company has
been duly incorporated and is an existing corporation in good standing under
the laws of the State of Delaware, (b) this Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and
legally binding obligation of the Company enforceable against the Company in
accordance with its terms, and (c) the Shares, when issued,
delivered and paid for in accordance with the terms hereof, will be duly and
validly issued, fully paid and nonassessable, and free and clear of any liens
or encumbrances other than those created pursuant to this Agreement (including,
but not limited to, the Plan as incorporated by reference herein), the
Stockholders Agreement, or otherwise in connection with the transactions
contemplated hereby.

 

7.             Certain Restrictions on
Repurchases.

 

(a)           Financing
Agreements, etc.  Notwithstanding any
other provision of this Agreement (including, but not limited to, the Plan as
incorporated by reference herein), the Company shall not be permitted to
repurchase any Shares from the Purchaser to the extent that (i) such
repurchase (or the payment of a dividend by any Subsidiary to fund such
repurchase) would result in any default or an event of default, or would be
prohibited under, any financing or security agreement or document entered
into by the Company or any Subsidiary prior to the date hereof, any refunding
thereof, or in connection with the operations of the Company or any Subsidiary
from time to time, in each case, as the same may be amended, modified or
supplemented from time to time (the “Financing Agreements”), (ii)
such repurchase would result in a violation of any law, statute, rule,
regulation, policy, order, writ, injunction, decree or judgment promulgated or
entered by any federal, state, local or foreign court or governmental authority

 

7

 

applicable to the Company or any Subsidiary or any of its or their
property, (iii) such repurchase would violate any of the terms or
provisions of the Certificate of Incorporation of the Company, or (iv) the
Company has no funds legally available therefor under the General Corporation
Law of the State of Delaware.

 

(b)           Delay
of Repurchase.  In the event that a
repurchase by the Company otherwise permitted under Section 5 is prevented
solely by the terms of Section 7(a), (i) such repurchase will
be postponed and will take place without the application of further conditions
or impediments (other than as set forth in Section 5 or in this
Section 7) at the first opportunity when the Company has funds legally
available therefor and when such repurchase will not result in any default,
event of default or violation under any of the Financing Agreements or in a
violation of any term or provision of the Certificate of Incorporation of the
Company and (ii) such repurchase obligation shall rank against
other similar repurchase obligations with respect to shares of Common Stock
according to priority in time of the effective date of the termination of
employment giving rise to such repurchase; provided, that any such repurchase obligations as to
which a common date determines priority shall be of equal priority and shall
share pro rata in any repurchase payments made pursuant to clause (i) of
this Section 7(b); and provided, further, that any repurchase
commitment arising from death, Disability, or Retirement or the comparable
provisions of any other applicable subscription agreements shall have priority
over any other repurchase obligation.

 

(c)           Purchase
Price Adjustment.  In the event that
a repurchase of Shares from the Purchaser is delayed pursuant to this
Section 7, the purchase price per Share when the repurchase of such Shares
eventually takes place as contemplated by Section 7(b) shall equal the sum
of (i) the purchase price determined in accordance with Section 5
at the time that the repurchase of such Shares would have occurred but for the
operation of this Section 7, plus (ii) an amount equal to
interest on such purchase price for the period from the date on which the
completion of the repurchase would have taken place but for the operation of
this Section 7 to the date on which such repurchase actually takes place (the “Delay
Period”) at a rate equal to the average annual cost to the Company of its
and its Subsidiaries bank indebtedness obligations outstanding during the Delay
Period or, if there are no such obligations outstanding, one percentage point
greater than the average prime rate charged during such period by any
nationally recognized bank designated by the Company.

 

8.             Miscellaneous.

 

(a)           Binding
Effect; Benefits; Assignability. 
This Agreement shall be binding upon and inure to the benefit of the
parties to this Agreement and their respective successors and assigns.  Nothing in this Agreement, express or
implied, is intended or shall be construed to give any person other than the
parties to this Agreement or their respective successors or assigns any legal
or equitable right, remedy or claim under or in

 

8

 

respect of any agreement or any provision contained herein.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by the Company or the Purchaser without the prior written consent of
the other party.

 

(b)           Amendment.  This Agreement may be amended, modified or
supplemented only by a written instrument executed by the Purchaser and the
Company.  The parties hereto acknowledge
that the Company’s consent to an amendment or modification of this Agreement is
subject to the terms and provisions of the Financing Agreements.

 

(c)           Delegation
by the Board.  All of the powers,
duties and responsibilities of the Board specified in this Agreement may, to
the full extent permitted by applicable law, be exercised and performed by any
duly constituted committee thereof to the extent authorized by the Board to
exercise and perform such powers, duties and responsibilities.

 

(d)           Section
and Other Headings, etc.  The section
and other headings contained in this Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Agreement.

 

(e)           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.  The parties hereto agree to accept a signed
facsimile copy of this Agreement as a fully binding original.

 

— Signature page follows —

 

9

 

IN
WITNESS WHEREOF, the Company and the Purchaser have executed this Agreement as
of the date first above written.

 

 

	
   

  	
  LHP HOLDING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER

  
	
   

  	
   

  	
   

  
	
   

  	
  «Name»

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  as Attorney - in-Fact

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of Shares of Common Stock to be Purchased:

  	
  «Shares»

  
	
   

  	
   

  
	
  Aggregate Purchase Price for Shares:

  	
  $«Share_Amount»

  

 

10

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