Document:

EX4-2

STOCK OPTION AGREEMENT

PATCH INTERNATIONAL INC.

THIS AGREEMENT is entered into as of the 2nd day of September, 2005 ("Date of Grant")

BETWEEN:
PATCH INTERNATIONAL INC., a company incorporated pursuant to the laws of the State of Nevada, having an office address at Suite 1220, 666 Burrard Street, Vancouver, British Columbia V6C 2X8

(the "Corporation")

AND:
<<NAME_OF_OPTIONEE>>

<<Address>>

(the "Optionee")

WHEREAS:

A.The Board of Directors of the Corporation (the "Board") has approved and adopted the 2005 Stock Option Plan (the "Plan"), pursuant to which the Board is authorized to grant to employees and other selected persons stock options to purchase common stock, $0.001 par value, of the Corporation (the "Common Stock");

B.The Plan provides for the granting of stock options that either (i) are intended to qualify as "Incentive Stock Options" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), or (ii) do not qualify under Section 422 of the Code ("Non-Qualified Stock Options"); and

C.The Board has authorized the grant to the Optionee of options to purchase a total of <<Number_of_Options>> shares of Common Stock (the "Options"), which Options are intended to be (select one):

[ X ]   Incentive Stock Options;

[__]   Non-Qualified Stock Options

NOW THEREFORE, the Corporation agrees to offer to the Optionee the option to purchase, upon the terms and conditions set forth herein and in the Plan, <<Number_of_Options>> shares of Common Stock.  Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Plan.

1.Limitation on the Number of Shares.  If the Options granted hereby are Incentive Stock Options, the number of shares which may be acquired upon exercise thereof is subject to the limitations set forth in Section 5.1(a) of the Plan.

2.Vesting Schedule and Exercise Price.  The Options are exercisable in accordance with the vesting schedule set forth in Section 5.1(e) of the Plan at an exercise price of US$1.40 per share.

3.Options not Transferable.  The Options may not be transferred, assigned, pledged or hypothecated in any manner (whether by operation of law or otherwise) other than by will, by applicable laws of descent and distribution or (except in the case of an Incentive Stock Option) pursuant to a qualified domestic relations order, and shall not be subject to execution, attachment or similar process; provided, however, that if the Options represent a Non-Qualified Stock Option, such Option is transferable without payment of consideration to immediate family members of the Optionee or to trusts or partnerships established exclusively for the benefit of the Optionee and the Optionee's immediate family members.  Upon any attempt to transfer, pledge, hypothecate or otherwise dispose of any Option or of any right or privilege conferred by the Plan contrary to the provisions thereof, or upon the sale, levy or attachment or similar process upon the rights and privileges conferred by the Plan, such Option shall thereupon terminate and become null and void.

4.Investment Intent.  By accepting the Options, the Optionee represents and agrees that none of the shares of Common Stock purchased upon exercise of the Options will be distributed in violation of applicable federal and state laws and regulations.  In addition, the Corporation may require, as a condition of exercising the Options, that the Optionee execute an undertaking, in such a form as the Corporation shall reasonably specify, that the Stock is being purchased only for investment and without any then-present intention to sell or distribute such shares.

5.Termination of Options.  Options which have vested in accordance with Section 2 of this Agreement shall terminate, to the extent not previously exercised, on <<Expiry_Date>>, provided that:
(a)in the event that the Optionee holds his or her Options as an employee and the Optionee ceases to be an employee other than by reason of death, disability or termination for cause (as defined by applicable law), the expiration of thirty (30) days from the date that the Optionee ceases to be an employee;

(b)in the event that the Optionee holds his or her Options as an officer, director or consultant of the Corporation or any Related Corporation, and the Optionee ceases to be an officer or director other than by reason of death or disability, the expiration of one (1) month following the date the Optionee ceases to be an officer, director or consultant of the Corporation unless the Optionee continues to be engaged by the Corporation as an employee, then the expiration as specified in section 5.1(g)(i)(B) of the Plan;

(c)in the event that the Optionee ceases to be a director, officer, employee or consultant of the Corporation or any Related Corporation for cause (as defined by applicable law and as determined by the Plan Administrator acting reasonably), the date the Optionee ceases to be a director, officer, employee or consultant of the Corporation or any Related Corporation;

(d)in the event the Optionee should die while he or she is still a director, officer, employee or consultant of the Corporation or any Related Corporation, the expiration of six (6) months from the death of the Optionee unless, in the case of a Non-Qualified Stock Option, the exercise period is extended by the Plan Administrator until a date not later than the expiration date of the Option; or

(e)in the event that the Optionee should become disabled while he or she is still a director, officer, employee or consultant of the Corporation or any Related Corporation, the expiration of six (6) months from the date of disability of the Optionee unless, in the case of a Non-Qualified Stock Option, the exercise period is extended by the Plan Administrator until a date not later than the expiration date of the Option;

(f)If an Optionee's employment or contractual relationship is terminated by death, any Option held by the Optionee shall be exercisable only by the person or persons to whom such Optionee's rights under such Option shall pass by the Optionee's will or by the laws of descent and distribution.

Each unvested Option granted pursuant hereto shall terminate immediately upon termination of the Optionee's employment or contractual relationship with the Corporation for any reason whatsoever, including death or Disability unless vesting is accelerated in accordance with Section 5(f) of the Plan.

6.Stock.  In the case of any stock split, stock dividend or like change in the nature of shares of Stock covered by this Agreement, the number of shares and exercise price shall be proportionately adjusted as set forth in Section 5(m) of the Plan.

7.Exercise of Option.  Options shall be exercisable, in full or in part, at any time after vesting, until termination; provided, however, that any Optionee who is subject to the reporting and liability provisions of Section 16 of the Securities Exchange Act of 1934 with respect to the Common Stock shall be precluded from selling or transferring any Common Stock or other security underlying an Option during the six (6) months immediately following the grant of that Option.  If less than all of the shares included in the vested portion of any Option are purchased, the remainder may be purchased at any subsequent time prior to the expiration of the Option term. Only whole shares may be issued pursuant to an Option, and to the extent that an Option covers less than one (1) share, it is unexercisable.

Each exercise of the Options shall be by means of delivery of a notice of election to exercise (which may be in the form attached hereto as Exhibit A) to the Corporation at its principal executive office, specifying the number of shares of Common Stock to be purchased and accompanied by payment in cash by certified check or cashier's check in the amount of the full exercise price for the Common Stock to be purchased.

8.Subject to 2005 Stock Option Plan.  The terms of the Options are subject to the provisions of the Plan, as the same may from time to time be amended, and any inconsistencies between this Agreement and the Plan, as the same may be from time to time amended, shall be governed by the provisions of the Plan, a copy of which has been delivered to the Optionee, and which is available for inspection at the principal offices of the Corporation.

9.Professional Advice.  The acceptance of the Options and the sale of Common Stock issued pursuant to the exercise of Options may have consequences under federal and state tax and securities laws which may vary depending upon the individual circumstances of the Optionee.  Accordingly, the Optionee acknowledges that he or she has been advised to consult his or her personal legal and tax advisor in connection with this Agreement and his or her dealings with respect to Options for the Common Stock.  Without limiting other matters to be considered, the Optionee should consider whether upon the exercise of Options, the Optionee will file an election with the Internal Revenue Service pursuant to Section 83(b) of the Code.

10.No Employment Relationship.  Whether or not any Options are to be granted under this Plan shall be exclusively within the discretion of the Plan Administrator, and nothing contained in this Plan shall be construed as giving any person any right to participate under this Plan.  The grant of an Option shall in no way constitute any form of agreement or understanding binding on the Corporation or any Related Corporation, express or implied, that the Corporation or any Related Corporation will employ or contract with an Optionee for any length of time, nor shall it interfere in any way with the Corporation's or, where applicable, a Related Corporation's right to terminate Optionee's employment at any time, which right is hereby reserved.

11.Entire Agreement.  This Agreement is the only agreement between the Optionee and the Corporation with respect to the Options, and this Agreement and the Plan supersede all prior and contemporaneous oral and written statements and representations and contain the entire agreement between the parties with respect to the Options.

12.Notices.  Any notice required or permitted to be made or given hereunder shall be mailed or delivered personally to the addresses set forth below, or as changed from time to time by written notice to the other:
The Corporation:
Patch International Inc.

Suite 1220, 666 Burrard Street

Vancouver, British Columbia  V6C 2X8

Attention: David Stadnyk, President

With a copy to: 
David J. Cowan

Lang Michener llp

Barristers and Solicitors

Suite 1500 - 1055 West Georgia Street

Vancouver, British Columbia  V6E 4N7

The Optionee:
<<Name_of_Optionee>>

<<Address>>

13.Legends.

THERE MAY NOT BE PRESENTLY AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS FOR THE ISSUANCE OF SHARES OF STOCK UPON EXERCISE OF THESE OPTIONS.  ACCORDINGLY, THESE OPTIONS CANNOT BE EXERCISED UNLESS THESE OPTIONS AND THE SHARES OF STOCK TO BE ISSUED UPON EXERCISE OF THESE OPTIONS ARE REGISTERED OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.

THE SHARES OF STOCK ISSUED PURSUANT TO THE EXERCISE OF OPTIONS WILL BE "RESTRICTED SECURITIES" AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT OF 1933 AND WILL BEAR A LEGEND RESTRICTING RESALE UNLESS THEY ARE REGISTERED UNDER STATE AND FEDERAL SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.  THE CORPORATION IS NOT OBLIGATED TO REGISTER THE SHARES OF STOCK OR TO MAKE AVAILABLE ANY EXEMPTION FROM REGISTRATION.

PATCH INTERNATIONAL INC.

Per:

____________________________________

Authorized Signatory

____________________________________

<<Name_of_Optionee>>

EXHIBIT A

Notice of Election to Exercise

 

This Notice of Election to Exercise shall constitute proper notice pursuant to Section 5(h) of Patch International Inc. 2005 Stock Option Plan (the "Plan") and Section 7 of that certain Stock Option Agreement (the "Agreement") dated as of September 2, 2005, between Patch International Inc. (the "Corporation") and the undersigned.

The undersigned hereby elects to exercise the Optionee's option to purchase _____________ shares of the common stock of the Corporation at a price of US$1.40 per share, for aggregate consideration of $_______________ on the terms and conditions set forth in the Agreement and the Plan.  Such aggregate consideration, in the form specified in Section 7 of the Agreement, accompanies this notice.

The undersigned has executed this Notice this _____ day of ___________________, 200__.

 

____________________________________

Signature

____________________________________

<<Name_of_Optionee>>Prepared by R.R. Donnelley Financial -- Employment Offer Letter between Robert S Michitarian and Registrant

 Exhibit 10.29 
  
 Via Federal Express 
  
 January 21, 2005 
  
 Mr. Robert Michitarian, Esq. 
  
 Dear Bob: 
  
 CoTherix, Inc. (the “Company”) is pleased to offer you employment on the following terms: 
  
 1. Position. Your initial title will be Vice President,
General Counsel, and you will initially report to the Company’s Chief Financial Officer and Executive Vice President, Christine Gray-Smith. This is a full-time, exempt position. By signing this letter agreement, you confirm to the
Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company. 
  
 2. Cash Compensation. The Company will pay you a starting salary at the rate of $230,000 per year, payable in accordance with the
Company’s standard payroll schedule. This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time. In addition, you will be eligible to receive a $30,000 sign-on
bonus payable within 30 days of your first day of employment. Termination with Cause (as defined below) or your resignation (other than an Involuntary Termination (as defined below)) within the first 12 months of employment requires that you
re-pay this $30,000 bonus within 30 days of the date of your termination 
  
 3. Employee Benefits. As a regular employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits. In addition, you will be entitled to paid vacation in accordance with
the Company’s vacation policy. 

 4. Stock Options. Subject to the approval of the Company’s Board of Directors or its
Compensation Committee, you will be granted an option to purchase 75,000 shares of the Company’s Common Stock. The exercise price per share will be equal to the fair market value per share on the date the option is granted. The option
will be subject to the terms and conditions applicable to options granted under the Company’s 2004 Equity Incentive Plan (the “Plan”), as described in the Plan and the applicable Stock Option Agreement. You will vest in 25% of the
option shares after 12 months of continuous service, and the balance will vest in equal monthly installments over the next 36 months of continuous service, as described in the applicable Stock Option Agreement. 
  
 If the Company is subject to a Change in Control (as defined in the
applicable Stock Option Agreement) before your service with the Company terminates and you are subject to an Involuntary Termination (as defined below) within 12 months after that Change in Control and such Involuntary Termination occurred before
you completed 12 continuous months of service with the Company, then the vested percentage of your option shares will be determined as if you completed 12 months of service with the Company. 
  
 For all purposes under this letter agreement, “Involuntary
Termination” means either (a) involuntary discharge by the Company for reasons other than Cause (as defined below) or (b) voluntary resignation following (i) a change in your position with the Company that materially reduces your
level of authority or responsibility, (ii) a reduction in your base salary by more than 10% or (iii) receipt of notice that your principal workplace will be relocated more than 45 miles. 
  
 For all purposes under this letter agreement, “Cause” means
(a) an unauthorized use or disclosure of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company, (b) a material breach of any agreement between you and the Company,
(c) a material failure to comply with the Company’s written policies or rules, (d) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof,
(e) gross negligence or willful misconduct or (f) a continued failure to perform assigned duties. The foregoing, however, is not an exclusive list of all acts or omissions that the Company may consider as grounds for discharging you
without Cause. 
  
 5. Proprietary Information and Inventions
Agreement. Like all Company employees, you will be required, as a condition of your employment with the Company, to sign the Company’s standard Proprietary Information and Inventions Agreement, a copy of which is attached. 

 6. Proof of Authorization to Work in the U.S. As required by law, your employment with the
Company is contingent upon your providing legal proof of your identity and authorization to work in the United States. Enclosed, for your reference, is the I-9 document that you will be required to complete on your first day of employment. Please
refer to this document and bring the correct identification with you. Failure to provide proper identification may delay placement on payroll and ultimately result in mandatory termination. 
  
 7. Employment Relationship. Employment with the Company is for no
specific period of time. Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may
have been made to you are superseded by this letter agreement. This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel
policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you). 
  
 8. Outside Activities. While you render services to the Company, you
agree that you will not engage in any other employment, consulting or other business activity without the prior written consent of the Company. While you render services to the Company, you also will not assist any person or entity in competing with
the Company, in preparing to compete with the Company or in hiring any employees or consultants of the Company. 
  
 9. Withholding Taxes. All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and
payroll taxes and other deductions required by law. 
  
 10.
Entire Agreement. This letter agreement supersedes and replaces any prior agreements, representations or understandings, whether written, oral or implied, between you and the Company. 
  
 11. Arbitration. You and the Company agree to waive any rights to a trial before a judge or jury and agree to
arbitrate before a neutral arbitrator any and all claims or disputes arising out of this letter agreement and any and all claims arising from or relating to your employment with the Company, including (but not limited to) claims against any current
or former employee, director or agent of the Company, claims of wrongful termination, retaliation, discrimination, harassment, breach of contract, breach of the covenant of good faith and fair dealing, defamation, invasion of privacy, fraud,
misrepresentation, constructive discharge or failure to provide a leave of absence, or claims regarding commissions, stock options or bonuses, infliction of emotional distress or unfair business practices. 

 The arbitrator’s decision must be written and must include the findings of fact and law that support
the decision. The arbitrator’s decision will be final and binding on both parties, except to the extent applicable law allows for judicial review of arbitration awards. The arbitrator may award any remedies that would otherwise be available to
the parties if they were to bring the dispute in court. The arbitration will be conducted in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association; provided, however that the arbitrator
must allow the discovery authorized by the California Arbitration Act or the discovery that the arbitrator deems necessary for the parties to vindicate their respective claims or defenses. The arbitration will take place in San Mateo County or, at
your option, the county in which you primarily worked with the Company at the time when the arbitrable dispute or claim first arose. 
  
 You and the Company will share the costs of arbitration equally, except that the Company will bear the cost of the arbitrator’s fee and any other
type of expense or cost that you would not be required to bear if you were to bring the dispute or claim in court. Both the Company and you will be responsible for their own attorneys’ fees, and the arbitrator may not award attorneys’ fees
unless a statute or contract at issue specifically authorizes such an award. 
  
 The foregoing notwithstanding, this arbitration provision does not apply to (a) workers’ compensation or unemployment insurance claims or (b) claims concerning the ownership, validity, infringement,
misappropriation, disclosure, misuse or enforceability of any confidential information, patent right, copyright, mask work, trademark or any other trade secret or intellectual property held or sought by either you or the Company (whether or not
arising under the Proprietary Information and Inventions Agreement between you and the Company). 
  
 If an arbitrator or court of competent jurisdiction (the “Neutral”) determines that any provision of this arbitration provision is illegal or
unenforceable, then the Neutral shall modify or replace the language of this arbitration provision with a valid and enforceable provision, but only to the minimum extent necessary to render this arbitration provision legal and enforceable.

  
 * * * * * 
  
 We hope that you will accept our offer to join the Company. This offer is
contingent upon your acceptance by January 25, 2005 and upon your starting work with the Company on or before February 14, 2005. Please call me at 650-808-6541 with your decision. Please indicate your acceptance of this offer by signing
both copies of this offer letter and returning one original to me in the enclosed self-addressed stamped envelope. The other original of the offer letter is for your files. 

 Please sign the Proprietary Information and Inventions Agreement and bring it with you on your first day
of employment. I await a positive response and anticipate the valuable contribution that you will make to CoTherix. 
  

			
	 Very truly yours,

	
	 COTHERIX, INC.

	
	 /s/    Christine Gray-Smith

		
	 By:
	 	 Christine Gray-Smith

	 Title:
	 	 Executive Vice President &
 Chief Financial Officer

  

			
	 I have read and accept this employment offer:

	
	 /s/    Robert Michitarian

	 Signature of Robert Michitarian

		
	 Dated:
	 	 01/24/05

  
 Enclosures: 
 Proprietary Information and Inventions Agreement 
 I-9 
 Self
addressed return envelope 

 January 25, 2005 
  
 Mr. Robert Michitarian, Esq. 
  
 Re: Employment Offer Letter dated January 21, 2005 (“Offer Letter”) and Proprietary Information and Inventions Agreement
(collectively, the “Agreements”) 
  
 Dear Bob: 
  
 In connection with CoTherix’s offer to
hire you as set forth in the Offer Letter, we agree to the following clarifications to the Offer Letter: 
  

	 	(a)	Section 2: You will not have to repay the $30,000 sign-on bonus in the event that your resignation within the first 12 months of employment constitutes an Involuntary
Termination (as defined in the Offer Letter); 

  

	 	(b)	Section 8: You may provide consulting services to 3Dx for an eighteen-month period from your first date of employment with CoTherix, so long as 3Dx does not compete with
CoTherix, and so long as such consulting services do not create a conflict of interest with CoTherix or interfere with your ability to perform your duties and fulfill your responsibilities as Vice President, General Counsel of CoTherix.

  
 To the extent any provisions in the Agreements
conflict with this side letter, this side letter shall govern. The Agreements otherwise remain in full force and effect. 
  
 Please indicate your acceptance of the foregoing by signing the enclosed copy of this letter and returning it to the Company. 
  

			
	 Very truly yours,

	
	COTHERIX, INC.
	
	 /s/    Christine Gray-Smith

		
	 By:
	 	 Christine Gray-Smith

	 Title:
	 	 Executive Vice President &
 Chief Financial Officer

  

			
	 ACCEPTED AND AGREED TO:

	
	 /s/    Robert Michitarian

	 Robert Michitarian, Esq.

	
	 2/10/05

	 Date

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