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  Exhibit 10.3    
    

        Stock Option No.:       

  
 

  INTREPID POTASH, INC.
  2008 EQUITY INCENTIVE PLAN    
    
    FORM OF STOCK OPTION AGREEMENT    
    

        Intrepid Potash, Inc., a Delaware corporation (the  "Company"), has
granted an option to purchase shares of the Company's Common Stock to the Optionee named
below under the Intrepid Potash, Inc. 2008 Equity Incentive Plan (the "Plan"). This Stock Option
Agreement (the "Agreement") evidences the terms of that Option grant. 

 
 

  I. NOTICE OF GRANT    
    

Name of Optionee:  

Number of Shares of Common Stock Covered by the Option:  

Exercise Price per Share:  

Grant Date:  

Expiration Date:  

Type of Option:  

Vesting Schedule:    Except as provided otherwise in this Agreement or the Plan, subject to Optionee's continuous
Service, this Option shall vest and become exercisable as set forth below: 

 

 

								
	Service Vesting Date

 
	 	Fraction of Total Shares

that Vest 	 	Number of Shares

that Vest 	 
	     
	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 
	     
	 	 	 	 	 	 	 

 

  
 

  II. STOCK OPTION AGREEMENT    
    

        1.    Grant of Option.    Subject to the terms and conditions of this
Agreement and the Plan (which is incorporated herein by reference), the Company has granted to Optionee an Option to purchase the number of shares of Stock set forth in the Notice of Grant, at the
Exercise Price set forth in the Notice of Grant. In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan shall govern. All
capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the Plan. 

        2.    Vesting.    Unless otherwise provided in this Agreement or in the Plan, this Option
shall become exercisable in one or more installments in accordance with the Vesting Schedule set forth in the Notice of Grant. As the Option becomes exercisable for one or more installments, the
installments shall accumulate and the Option shall remain exercisable for the accumulated installments until the Option expires or terminates in accordance with the terms of this Agreement or the
Plan. 

        3.    Option Term; Expiration Date.    This Option shall expire at
5:00 P.M. Mountain Standard Time on the Expiration Date set forth in the Notice of Grant, unless sooner terminated in accordance with Section 4 of this Agreement or the terms of the
Plan. 

        4.    Termination of Service; Accelerated Vesting; Expiration of Option.    If Optionee
terminates Service with the Company and its Affiliates prior to the Expiration Date, the following shall apply: 

        (a)    Termination of Employment.    If Optionee's Service is terminated for any reason other
than as set forth in subsection (b) or (c) of this Section, then the vested portion of the Option will remain outstanding until 5:00 P.M. Mountain Standard Time on the soonest to
occur of (i) the date that is twelve (12) months after the date Optionee terminates Service, or (ii) the Expiration Date. The unvested portion of the Option shall automatically
expire on the date of termination of Service. 

        (b)    Disability.    This Option shall become vested and exercisable in full immediately
prior to the termination of Optionee's Service because of Disability, notwithstanding anything to the contrary in Section 2 hereof or the Vesting Schedule set forth in the Notice of Grant. In
such event, the Option shall remain outstanding and may be exercised by Optionee or Optionee's guardian or legal representative until 5:00 P.M. Mountain Standard Time on the soonest to occur of
(i) the date that is twelve (12) months after the date Optionee terminates Service because of Optionee's Disability, or (ii) the Expiration Date. 

        (c)    Death.    

        (i)    Death Causing Termination of Service.    This Option shall become vested and
exercisable in full immediately prior to the termination of Optionee's Service because of his or her death, notwithstanding anything to the contrary in Section 2 hereof or the Vesting Schedule
set forth in the Notice of Grant. In such event, the Option shall remain outstanding and may be exercised by those entitled to do so under Optionee's will or under the laws of descent and distribution
until 5:00 P.M. Mountain Standard Time on the soonest to occur of (i) the date that is twelve (12) months after the date of death, or (ii) the Expiration Date. 

        (ii)    Death Following Termination of Service.    If Optionee dies during the twelve month
period described in Section 4(a), then the vested and outstanding portion of the Option at such time, if any, will remain outstanding and may be exercised by those entitled to do so under
Optionee's will or under the laws of descent and distribution until 5:00 P.M. Mountain Standard Time on the soonest to occur of (i) the date that is twelve (12) months after the
date of death, or (ii) the Expiration Date. 

        5.    Leave of Absence.    For purposes of the Option, Service does
not terminate when Optionee goes on a bona fide employee leave of absence that was approved by the Company or an Affiliate in writing, if the terms of
the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, Service will be treated as terminating 90 days after Optionee went
on the approved leave, unless Optionee's right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends unless Optionee immediately
returns to active Service. The Committee determines, in its sole discretion, which leaves of absence count for this purpose, and when Service terminates for all purposes under the Plan. 

        6.    Option Exercise.    

        (a)    Notice of Exercise.    The Option shall be exercised on a business day on which the
Company is generally open for business by delivery of written or electronic notice to an officer, employee, or agent of the Company designated by the Committee, on a written or electronic form
specified by the Committee or its designated agent. The written or electronic notice shall specify the number of shares of Stock to be purchased, and shall be accompanied by full payment of the
Exercise Price for the shares being purchased. The notice shall also specify the manner in which the shares should be registered and the manner in which Optionee is satisfying applicable tax
withholding requirements. The notice of exercise will be effective when it is received. Anyone exercising the Option after the death of Optionee must provide appropriate documentation to the
satisfaction of the Company that the individual is entitled to exercise the Option. 

        (b)    Payment of Exercise Price.    Payment of the Exercise Price for the number of shares of
Stock being purchased shall be made in one (or a combination) of the following forms: 

          (i)  Cash
or cash equivalents acceptable to the Company. 

         (ii)  By
tendering to the Company (either by actual delivery of by attestation) unrestricted shares of Stock owned by Optionee that were purchased on the open market or owned
for at least six months or such other period designated by the Company in order to comply with applicable law and to avoid adverse accounting consequences. The Fair Market Value of the Stock,
determined as of the effective date of the Option exercise, will be applied to the payment of the Exercise Price. 

        (iii)  To
the extent a public market for the shares of Stock exists as determined by the Company, by delivery to the Company of irrevocable instructions issued to a licensed
securities broker acceptable to
the Company to sell shares of Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price and any withholding taxes. 

        7.    Tax Withholding.    The Company or any Affiliate shall have the
right to deduct from payments of any kind otherwise due to Optionee, any federal, state, local or foreign taxes of any kind required by law to be withheld upon the issuance of any shares of Stock or
payment of any kind upon the exercise of this Option. Subject to the prior approval of the Committee, which may be withheld by the Committee, in its sole discretion, Optionee may elect to satisfy the
minimum statutory withholding obligations, in whole or in part, (i) by having the Company withhold shares of Stock otherwise issuable to Optionee or (ii) by delivering to the Company
shares of Stock already owned by Optionee. The shares delivered or withheld shall have an aggregate Fair Market Value not in excess of the minimum statutory total tax withholding obligations. The Fair
Market Value of the shares used to satisfy the withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined. Shares used to
satisfy any tax withholding obligation must be vested and cannot be subject to any repurchase, forfeiture, or other similar requirements. Any election to withhold shares shall be irrevocable, made in
writing, signed by Optionee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

        8.    Transfer of Option.    

        (a)    General Rule.    During Optionee's lifetime, Optionee shall not transfer or assign the
Option and the Option may be exercised solely by Optionee (or, in the event of Optionee's legal incapacity or incompetency, Optionee's guardian or legal representative). Upon death, the Option may be
transferred in accordance with Optionee's will or under the applicable laws of descent and distribution and may be exercised in accordance with Section 4(c), above. 

        (b)    Domestic Relations Order.    Notwithstanding the foregoing Section 8(a), to the
extent that this Option is a Non-Qualified Stock Option, the Option, in whole or in part, may be transferred to a Family Member pursuant to a domestic relations order in settlement of
marital property rights. Following any such transfer, the Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer, and shall be
exercisable by the transferee only to the extent, and for the periods specified in, this Agreement. 

        9.    Investment Representations.    The Committee may require
Optionee (or Optionee's estate or heirs) to represent and warrant in writing that the individual is acquiring the shares of Stock for investment and without any present intention to distribute such
shares and to make such other representations as are deemed necessary or appropriate by the Company and its counsel. 

        10.    Continued Service.    Neither the grant of the Option nor this
Agreement gives Optionee the right to continue Service with the Company or its Affiliates in any capacity. The Company and its Affiliates reserve the right to terminate Optionee's Service at any time
and for any reason not prohibited by law. 

        11.    Stockholder Rights.    Optionee and Optionee's estate or heirs
shall not have any rights as a stockholder of the Company until Optionee becomes the holder of record of such shares of Stock, and 

no
adjustments shall be made for dividends or other distributions or other rights as to which there is a record date prior to the date Optionee becomes the holder of record of such shares, except as
provided in Section 14 of the Plan. 

        12.    Additional Requirements.    Optionee acknowledges that shares
of Stock acquired upon exercise of the Option may bear such legends as the Company deems appropriate to comply with applicable federal, state or foreign securities laws. In connection therewith and
prior to the issuance of the shares, Optionee may be required to deliver to the Company such other documents as may be reasonably necessary to ensure compliance with applicable laws. 

        13.    Governing Law.    The validity and construction of this
Agreement and the Plan shall be determined in accordance with and governed by the laws of the State of Delaware other than any conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of the Plan and this Agreement to the substantive laws of any other jurisdiction. 

        14.    Binding Effect.    This Agreement shall be binding upon and
inure to the benefit of the Company and Optionee and their respective heirs, executors, administrators, legal representatives, successors and assigns. 

        15.    Special Rules for Incentive Stock Options.    In the event this
Option is designated as an Incentive Stock Option in the Notice of Grant, the Option shall be treated as an Incentive Stock Option to the maximum extent permissible under applicable law. In the event
this Option, or any portion thereof, cannot be treated as an Incentive Stock Option under applicable law, whether because the value of the Common Stock covered under the Option exceeds the limits of
Code Section 422(d), the Option remains outstanding following termination of employment beyond the holding periods of Code Section 422(a)(2), or otherwise, then this Option, or the
relevant portion thereof, shall be classified as a Non-Qualified Stock Option. 

        16.    Tax Treatment; Section 409A.    Optionee may incur tax liability as a result of
the exercise of the Option or the disposition of shares of Stock. Optionee should consult his or her own tax adviser before exercising the Option or disposing of the shares. 

        Optionee
acknowledges that the Committee, in the exercise of its sole discretion and without Optionee's consent, may amend or modify the Option and this Agreement in any manner and delay
the
payment of any amounts payable pursuant to this Agreement to the minimum extent necessary to satisfy the requirements of Section 409A of the Code. The Company will provide Optionee with notice
of any such amendment or modification. 

        17.    Amendment.    The terms and conditions set forth in this
Agreement may only be amended by the written consent of the Company and Optionee, except to the extent set forth in Section 16 hereof regarding Section 409A of the Code and any other
provision set forth in the Plan. 

        18.    2008 Equity Incentive Plan.    The Option and shares of Stock
acquired upon exercise of the Option granted hereunder shall be subject to such additional terms and conditions as may be imposed under the terms of the Plan, a copy of which has been provided to
Optionee. 

[Company
Signature Page Follows] 

 

        This Stock Option Agreement is executed on behalf of the Company by its authorized officer on the date set forth below. 

 

 

					
	 	 	 INTREPID POTASH, INC.
	

 	
 	
 By:	
 	
    
	 	 	 	 	

  James N. Whyte
 Executive Vice President of Human

Human Resources and Risk Management
	

 	
 	
Date:	
 	
 
	 	 	 	 	

  

 

 [Optionee
Signature Page Follows] 

 
 

  ACKNOWLEDGMENT AND AGREEMENT    
    

        Optionee acknowledges receipt of this Agreement and agrees to all of the terms and conditions described in this Agreement and in the
Plan, a copy of which is attached. Optionee acknowledges that Optionee has carefully reviewed the Plan, and agrees that the Plan will control in the event any provision in this Agreement is in
conflict with the Plan. To accept this Agreement and the Option evidenced thereunder, Optionee must sign and date this signature page and return it to the Company no later
than                        ,
20    . 

 

 

							
	 	 	 Optionee
	

 	
 	

  Signature
	

 	
 	
Print Name:	
 	

 
	 	 	 	 	 	 	

  
	

 	
 	
Date:	
 	

 	
 	

 
	 	 	 	 	

  

 

 Attachments:
          2008 Equity Incentive Plan

        Form S-8 Prospectus 

QuickLinks

Exhibit 10.3

INTREPID POTASH, INC. 2008 EQUITY INCENTIVE PLAN FORM OF STOCK OPTION AGREEMENT

I. NOTICE OF GRANT

II. STOCK OPTION AGREEMENT

ACKNOWLEDGMENT AND AGREEMENTExhibit 10.18

 

TWELFTH AMENDMENT

 

This
TWELFTH AMENDMENT, dated as of May 21, 2010 (this “Agreement”), to
the Debtor-in-Possession Credit Agreement, dated as of October 27, 2009
(as amended prior to the date hereof, the “Credit Agreement”), by and
among FAIRPOINT COMMUNICATIONS, INC., a Delaware corporation and a debtor
and debtor-in-possession under Chapter 11 of the Bankruptcy Code (as
hereinafter defined) (“FairPoint”), FAIRPOINT LOGISTICS, INC., a
South Dakota corporation and a debtor and debtor-in-possession under Chapter 11
of the Bankruptcy Code (“Logistics”; Logistics, together with FairPoint,
each a “Borrower” and, collectively, the “Borrowers”), the
lenders from time to time party thereto (the “Lenders”), and BANK OF
AMERICA, N.A., as Administrative Agent (in such capacity, together with any
successor administrative agent, the “Administrative Agent”).  Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement.

 

WHEREAS,
the Borrowers have requested that the Administrative Agent and the Required
Lenders amend certain provisions of the Credit Agreement.

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.  
Amendments.  Subject to all
of the terms and conditions set forth herein,

 

1.1   The first sentence of Section 7.13 of the Credit Agreement is
hereby amended by (a) adding a “)” immediately following the reference to
the phrase “subject to the limitations” appearing therein and (b) amending
and restated clause (ii) of the second parenthetical appearing therein in
its entirety to read as follows:

 

“(ii) pay any management bonuses, except those
explicitly provided for in the KEIP/Stay Bonus).”

 

1.2   Section 9 of the Credit Agreement is hereby amended by adding
the following defined terms in the appropriate alphabetical order:

 

“Annual Incentive Plan”
shall mean FairPoint’s management bonus program as in effect from time to time
and with respect to which amounts set forth thereunder shall be payable upon
the achievement of certain performance metrics set by the board of directors of
FairPoint.

 

“Regulatory Penalties”
shall mean regulatory penalties, whether impacting revenue or expense, pursuant
to regulatory commitments for service quality indices and broadband
availability.

 

 

“Success Bonuses”
shall mean, collectively, the “Success Bonuses” as defined in the Debtors’ plan
of reorganization filed in the Chapter 11 Cases.

 

1.3   The definition of “Consolidated EBITDAR” set forth in Section 9
of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

 

“Consolidated EBITDAR”
shall mean, for any period, Operating EBITDA for such period adjusted by adding
thereto an amount equal to the sum, without duplication, of: (i) professional
fees for advisors, legal counsel and US Trustee fees paid for the Borrowers,
whether or not on behalf of the Borrowers, (ii) Non-Cash Stock Based
Compensation, (iii) KEIP/Stay Bonus, (iv) Regulatory Penalties
imposed by (A) the states of New Hampshire and Vermont which were expensed
from September 1, 2009 through December 31, 2009 and (B) the
state of Maine which were expensed from September 1, 2009 through July 31,
2010; provided, that the aggregate amounts added back pursuant to this
clause (iv) shall not exceed $29,500,000, (v) Pension expenses, (vi) OPEB
expenses and (viii) Compensated Absence Adjustment.

 

1.4   The definition of “KEIP/Stay Bonus” set forth in Section 9 of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

“KEIP/Stay Bonus”
shall mean, collectively, the Success Bonuses and the Annual Incentive Plan.

 

SECTION 2.  
Consent.  FairPoint has
informed the Administrative Agent that, by order of the New Hampshire PUC dated
February 25, 2008 (the “New Hampshire PUC Order”), FairPoint is
required to establish an external trust fund (the “New Hampshire Trust Fund”)
to receive, invest and disburse funds to help meet accrued OPEB liabilities for
employees who work primarily in the provision of regulated telephone services
for Affiliates of FairPoint which service New Hampshire.  Notwithstanding anything in the Credit
Agreement or in any other Loan Document which may otherwise restrict FairPoint
from establishing and funding the New Hampshire Trust Fund, the Required
Lenders hereby consent to the creation of the New Hampshire Trust Fund and the
payment by FairPoint of the funds required to be maintained in such New
Hampshire Trust Fund pursuant to the requirements of the New Hampshire PUC
Order; provided, however, in no event shall the aggregate amount
funded by FairPoint to the New Hampshire Trust Fund exceed $250,000.

 

SECTION 3.  
Conditions Precedent.  This
Agreement shall become effective on the date (the “Effective Date”) upon
which the Administrative Agent has received executed counterparts of this
Agreement duly executed by the Credit Parties, the Administrative Agent and the
Required Lenders.

 

SECTION 4.  
Representations and Warranties. 
After giving effect to this Agreement, the Credit Parties, jointly and
severally, reaffirm and restate the representations and warranties set forth in
the Credit Agreement and in the other Credit Documents (except to the extent
such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall be true and correct in all
material respects as of such earlier

 

2

 

date)
and all such representations and warranties shall be true and correct on the
date hereof with the same force and effect as if made on such date.  Each of the Credit Parties represents and
warrants (which representations and warranties shall survive the execution and
delivery hereof) to the Administrative Agent and the Lenders that:

 

(a)           it has the company power and authority to execute, deliver
and carry out the terms and provisions of this Agreement and the transactions
contemplated hereby and has taken or caused to be taken all necessary action to
authorize the execution, delivery and performance of this Agreement and the
transactions contemplated hereby;

 

(b)          no consent of any Person (including, without limitation,
any of its equity holders or creditors), and no action of, or filing with, any
governmental or public body or authority is required to authorize, or is
otherwise required in connection with, the execution, delivery and performance
of this Agreement;

 

(c)           this Agreement has been duly executed and delivered on its
behalf by a duly authorized officer, and constitutes its legal, valid and
binding obligation enforceable in accordance with its terms, subject to
bankruptcy, reorganization, insolvency, moratorium and other similar laws
affecting the enforcement of creditors’ rights generally and the exercise of
judicial discretion in accordance with general principles of equity;

 

(d)           no Default or Event of Default shall have occurred and be
continuing; and

 

(e)           the execution, delivery and performance of this Agreement
will not violate any law, statute or regulation, or any order or decree of any
court or governmental instrumentality, or conflict with, or result in the
breach of, or constitute a default under, any contractual obligation of any
Credit Party or any of its Subsidiaries.

 

SECTION 5.  
Affirmation of Credit Parties. 
Each Credit Party hereby approves and consents to this Agreement and the
transactions contemplated by this Agreement, and affirms its obligations under
the Credit Documents to which it is a party. 
Each Subsidiary Guarantor agrees and affirms that its guarantee of the
Obligations continues to be in full force and effect and is hereby ratified and
confirmed in all respects and shall apply to (i) the Credit Agreement and
(ii) all of the other Credit Documents, as such are amended, restated,
supplemented or otherwise modified from time to time in accordance with their
terms.

 

SECTION 6.  
Ratification.

 

(a)           Except as herein agreed, the Credit Agreement and the
other Credit Documents remain in full force and effect and are hereby ratified
and affirmed by the Credit Parties.  Each
of the Credit Parties hereby (i) confirms and agrees that the Borrowers
are truly and justly indebted to the Administrative Agent and the Lenders in
the aggregate amount of the Obligations without defense, counterclaim or offset
of any kind whatsoever, and (ii) reaffirms and admits the validity and
enforceability of the Credit Agreement and the other Credit Documents.

 

3

 

(b)                   This Agreement shall be limited precisely as
written and, except as expressly provided herein, shall not be deemed (i) to
be a consent granted pursuant to, or a waiver, modification or forbearance of,
any term or condition of the Credit Agreement or any of the instruments or
agreements referred to therein or a waiver of any Default or Event of Default
under the Credit Agreement, whether or not known to the Administrative Agent or
any of the Lenders, or (ii) to prejudice any right or remedy which the
Administrative Agent or any of the Lenders may now have or have in the future
against any Person under or in connection with the Credit Agreement, any of the
instruments or agreements referred to therein or any of the transactions
contemplated thereby.

 

SECTION 7.  
Waivers; Amendments. 
Neither this Agreement, nor any provision hereof, may be waived, amended
or modified except pursuant to an agreement or agreements in writing entered
into by the Administrative Agent and the Required Lenders.

 

SECTION 8.  
References.  All references
to the “Credit Agreement”, “thereunder”, “thereof” or words of like import in
the Credit Agreement or any other Credit Document and the other documents and
instruments delivered pursuant to or in connection therewith shall mean and be
a reference to the Credit Agreement as modified hereby and as each may in the
future be amended, restated, supplemented or modified from time to time.

 

SECTION 9.  
Counterparts.  This
Agreement may be executed by the parties hereto individually or in combination,
in one or more counterparts, each of which shall be an original and all of
which shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page by telecopier shall be effective as delivery of a manually
executed counterpart.

 

SECTION 10.  
Successors and Assigns. 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

 

SECTION 11.  
Severability.  If any
provision of this Agreement shall be held invalid or unenforceable in whole or
in part in any jurisdiction, such provision shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or enforceability without in any
manner affecting the validity or enforceability of such provision in any other
jurisdiction or the remaining provisions of this Agreement in any jurisdiction.

 

SECTION 12.  
Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

SECTION 13.  
Miscellaneous.

 

(a)   The parties hereto shall, at any time from time to time following
the execution of this Agreement, execute and deliver all such further
instruments and take all such further action as may be reasonably necessary or
appropriate in order to carry out the provisions of this Agreement.

 

4

 

(b)   The Credit Parties acknowledge and agree that this Agreement constitutes
a Credit Document and that the failure of any of the Credit Parties to comply
with the provisions of this Agreement shall constitute an Event of Default.

 

SECTION 14.  
Headings.  Section headings
in this Agreement are included for convenience of reference only and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Agreement.

 

[The remainder of this page left blank intentionally]

 

5

 

[Signature Pages Omitted]

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