Document:

ex102.htm

January 24, 2013

 

	
To:

	
Octagon 88 Resources, Inc.

                 Zeglistrasse 30,

 Englberg V86390

                 011-41-799-184471

Re:          Share Purchase Agreement

 

WHEREAS Vendors as described in Schedule A (“Vendors”) are the registered holders and beneficial owners of certain of the issued and outstanding shares in the capital of CEC North Star Energy Ltd. (“CEC North Star”);

 

AND WHEREAS Vendors wishes to sell, and Octagon 88 Resources, Inc. (“Octagon 88”) wishes to purchase, the CEC North Star Shares (as hereinafter defined).

 

NOW THEREFORE IN CONSIDERATION of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the Parties hereto, the Parties agree as follows:

 

ARTICLE 1

 

INTERPRETATION

 

	
1.1

	
Definitions

 

In this Agreement:

 

	
  

	
(a)

	
“Agreement” means this agreement including any recitals and Schedules to this agreement, as amended, supplemented or restated from time to time;

 

	
  

	
(b)

	
“Applicable Law” in respect of any Person, property, transaction or event, means all laws, statutes, ordinances, regulations, municipal by-laws, treaties, judgments and decrees applicable to that Person, property, transaction or event and, whether or not having the force of law, all applicable official directives, rules, consents, approvals, authorizations, guidelines, orders and policies of any Governmental Authority having or purporting to have authority over that Person, property transaction or event and all general principles of common law and equity;

 

	
  

	
(c)

	
“Business Day” means a day other than a Saturday, Sunday or statutory holiday in Switzerland;

 

	
  

	
(d)

	
“Closing” has the meaning given to it in Section 5.1;

 

	
  

	
(e)

	
“Closing Date” has the meaning given to it in Section 5.1;

 

  

1

 

	
 

 

	
(f)

	
“CEC North Star Shares” means One Million Four Hundred Ten Thousand (1,410,000) common shares in the capital stock of CEC North Star Energy Ltd;

 

	
  

	
(g)

	
“Governmental Authority” means any domestic or foreign government, including any federal, provincial, state, territorial or municipal government, and any government agency, tribunal, commission or other authority exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, government;

 

	
  

	
(h)

	
“Lien” means any mortgage, lien, charge, adverse claim, hypothec or encumbrance, whether fixed or floating, on, or any security interest in, any property, whether real, personal or mixed, tangible or intangible, any pledge or hypothecation of any property, any deposit arrangement, priority, conditional sale agreement, other title retention agreement or equipment trust, capital lease or other security arrangements of any kind (and including, in the case of shares or other securities, shareholders agreements, voting trust agreements and similar arrangements);

 

	
  

	
(i)

	
“Octagon 88 Shares” has the meaning ascribed to it in Section 3.1;

 

	
  

	
(j)

	
“Parties” means all of the parties to this Agreement and “Party” means any one of them;

 

	
  

	
(k)

	
“Permits” means any licence, permit, approval, consent, operating authorities, certificate, registration or authorization issued by any Governmental Authority which is required under Applicable Law;

 

	
  

	
(l)

	
“Person” means any natural person, sole proprietorship, partnership, corporation, trust, joint venture, any Governmental Authority or any incorporated or unincorporated entity or association of any nature;

 

	
  

	
(m)

	
“Required Approvals” means approvals, waivers, authorizations or consents by any Governmental Authority or other Person and declarations, filings or registrations with any Governmental Authority or other Person required in connection with the entering into and the performance of this Agreement;

 

	
  

	
(n)

	
“Tax” or “Taxes” includes all taxes, surtaxes, duties, levies, imposts, rates, fees, assessments, withholdings, dues and other charges of any nature imposed by any Governmental Authority (including income, capital (including large corporations), withholding, consumption, sales, use, transfer, goods and services or other value-added, excise, customs, net worth, stamp, registration, franchise, payroll, employment, health, education, business, school, property, local improvement, development, education development and occupation taxes, surtaxes, duties, levies, imposts, rates, fees, assessments, withholdings, dues and charges) together with all fines, interest, penalties on or in respect of, or in lieu;

 

	
  

	
(o)

	
“Tax Act” means the Income Tax Act of Switzerland;

 

  

2

 

	
  

	
(p)

	
“Time of Closing” means 10:00 a.m. on the Closing Date; and

 

	
  

	
(q)

	
“Written” includes printed, typewritten, faxed or otherwise capable of being visibly reproduced at the point of reception and “in writing” has a corresponding meaning.

 

	
1.2

	
Construction and Interpretation

 

The division of this Agreement into Sections, the insertion of headings and the provision of a table of contents are for convenience only, do not form a part of this Agreement and will not be used to affect the construction or interpretation of this Agreement. Unless otherwise specified:

 

	
  

	
(a)

	
each reference in this Agreement to “Section”, “Schedule” or “Recital” is to a Section of, or Recital to, this Agreement;

 

	
  

	
(b)

	
each reference to a statute is deemed to be a reference to that statute, and to the regulations made under that statute, as amended or re-enacted from time to time;

 

	
  

	
(c)

	
words importing the singular include the plural and vice versa and words importing gender include all genders;

 

	
  

	
(d)

	
references to time of day or date mean the local time or date in Zurich, Switzerland;

 

	
  

	
(e)

	
all references to amounts of money mean lawful currency of Canada; and

 

	
  

	
(f)

	
an accounting term has the meaning assigned to it, and all accounting matters will be determined, in accordance with GAAP consistently applied.

 

	
1.3

	
Business Day

 

If under this Agreement any payment or calculation is to be made, or any other action is to be taken, on or as of a day which is not a Business Day, the payment or calculation is to be made, or that other action is to be taken, on or as of the next day that is a Business Day.

 

	
1.4

	
Use of the Word “Including”

 

The word “including” when following any general term or statement will not be construed as limiting the general term or statement to the specific matter immediately following the word “including” or to similar matters, and the general term or statement will be construed as referring to all matters that reasonably could fall within the broadest possible scope of the general term or statement.

 

	
1.5

	
Time of Essence

 

Time is of the essence of this Agreement.

 

  

3

  

ARTICLE 2

 

PURCHASE AND SALE

 

	
2.1

	
Purchase and Sale covenant

 

On the basis of the warranties, representations and covenants of Vendors in this Agreement and subject to the fulfilment of any condition that has not been waived by the Party entitled to the benefit thereof, Octagon 88 will purchase from Vendors and Vendors will sell the CEC North Star Shares to Octagon 88 at the Closing herein provided for on the terms and conditions set forth in this Agreement.

 

ARTICLE 3

 

PURCHASE PRICE AND CONDITIONS OF PURCHASE

 

	
3.1

	
In consideration of the CEC North Star Shares  Octagon 88 shall issue from treasury Five Million Three Hundred Ten Thousand (5,310,000) of Octagon 88’s common voting shares valued at $5.65 per share (the “Octagon 88 Shares”) to Vendors at the Closing.

 

	
ARTICLE 4

 

	
REPRESENTATIONS AND WARRANTIES

 

4.1           Vendors represent and warrant that:

 

	
  

	
(a)

	
Incorporation.  CEC North Star is a corporation duly incorporated, organized and existing under the Business Corporations Act (Alberta), is a valid and subsisting corporation in good standing with respect to filing of annual reports with the Alberta Corporate Registry;

 

	
  

	
(b)

	
Business Qualification.  CEC North Star carries on business only in Alberta and British Columbia, is duly qualified, licensed or registered in Alberta and British Columbia to carry on its business, does not carry on business or own or lease any assets in any other province or territory of Canada or in any other country and CEC North Star has the corporate power to own, lease and operate its property, carry on its business and perform its obligations, if any, under this Agreement;

 

	
  

	
(c)

	
Authorized and Issued Capital.  The authorized capital of CEC North Star consists of:

 

	
  

	
(i)

	
an unlimited number of common voting shares;

 

	
  

	
(ii)

	
an unlimited number of common non-voting shares; and

 

	
  

	
(iii)

	
an unlimited number of preferred non-voting shares;

 

	
  

	
(d)

	
Valid Issuance and Transfer.  The CEC North Star Shares are validly issued and outstanding as fully paid and non-assessable shares in the capital of CEC North

 

  

4

  

	
  

	
Star and have been issued in compliance with all Applicable Laws.  None of the CEC North Star Shares have been transferred by one person to another except in full compliance with all Applicable Laws, the constating documents and any other agreements applicable to CEC North Star;

 

	
  

	
(e)

	
Liens.  The CEC North Star Shares are free and clear of all Liens;

 

	
  

	
(f)

	
Constating Documents.  The articles and bylaws of CEC North Star have not been altered or amended since incorporation other than a name change;

 

	
  

	
(g)

	
Authority.  Vendors have all requisite corporate power and authority to execute and deliver this Agreement and to perform their obligations hereunder.  The execution, delivery and performance of this Agreement and the transaction contemplated hereby have been duly and validly authorized by all requisite corporate action on the part of Vendors;

 

	
  

	
(h)

	
No Conflict.  The making of this Agreement and the completion of the transactions contemplated hereby and the performance of and compliance with the terms hereof does not conflict with or result in the breach of, or the acceleration of, any terms, provisions or conditions of or constitute a default under: (i) the articles and bylaws of Zentrum; (ii) any indenture, mortgage, deed of trust, agreement, lease, franchise, certificate or other instrument to which CEC North Star is a party or is bound; or (iii) any term or provision of any licenses, registrations or qualifications of Octagon 88 or any order of any Governmental Authority or any Applicable Law; and

 

	
  

	
(i)

	
Enforceability.  This Agreement has been duly executed and delivered by Vendors and is a legal, valid and binding obligation of Vendors, enforceable against Vendors in accordance with its terms.

 

4.2           Octagon 88 represents and warrants that:

 

	
  

	
(a)

	
Incorporation.  Octagon 88 is a corporation duly incorporated, organized and existing under the State of Nevada, is a valid and subsisting corporation in good standing with respect to filing of annual reports;

 

	
  

	
(b)

	
Business Qualification.  Octagon 88 carries on business only in Nevada and Switzerland, is duly qualified, licensed or registered in Nevada to carry on its business, does not carry on business or own or lease any assets in  any other countries, save for the shares of CEC North Star and Octagon 88 has the corporate power to own, lease and operate its property, carry on its business and perform its obligations, if any, under this Agreement;

 

	
  

	
(c)

	
Authorized and Issued Capital.  The authorized capital of Octagon 88 consists of a total of 400,000,000 shares of voting common stock, par value $0.0001 of which post-closing of this transaction a total of 26,545,473 shares of voting common stock will be issued and outstanding as fully paid and non-assessable shares.

 

  

5

 

	
  

	
(d)

	
Valid Issuance and Transfer.  The Octagon 88 Shares are validly issued and outstanding as fully paid and non-assessable shares in the capital of Octagon 88 and have been issued in compliance with all Applicable Laws.  None of the Octagon 88 Shares have been transferred by one person to another except in full compliance with all Applicable Laws, the constating documents and any other agreements applicable to Octagon 88;

 

	
  

	
(e)

	
Liens.  The Octagon 88 Shares are free and clear of all Liens;

 

	
  

	
(f)

	
Constating Documents.  The articles and bylaws of Octagon 88 have not been altered since the original incorporation date of Octagon 88 on June 9, 2008;

 

	
  

	
(g)

	
Minute Books.  The minute books and corporate records of Octagon 88 contain complete and accurate minutes of all meetings and proceedings of the shareholders and directors of Octagon 88 since Octagon 88 has been carrying on the Business and the registers of transfers, shareholders and directors are complete and accurate in all material respects;

 

	
  

	
(h)

	
Permits.  Octagon 88 holds all Permits required for carrying on its business;

 

	
  

	
(i)

	
Compliance with Laws.  Octagon 88 is not in breach of any laws with effect on its business;

 

	
  

	
(j)

	
Authority.  Octagon 88 has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution, delivery and performance of this Agreement and the transaction contemplated hereby have been duly and validly authorized by all requisite corporate action on the part of Octagon 88;

 

	
  

	
(k)

	
No Conflict.  The making of this Agreement and the completion of the transactions contemplated hereby and the performance of and compliance with the terms hereof does not conflict with or result in the breach of, or the acceleration of, any terms, provisions or conditions of or constitute a default under: (i) the articles and bylaws of Octagon 88; (ii) any indenture, mortgage, deed of trust, agreement, lease, franchise, certificate or other instrument to which Octagon 88 is a party or is bound; or (iii) any term or provision of any licenses, registrations or qualifications of Octagon 88 or any order of any Governmental Authority or any Applicable Law; and

 

	
  

	
(l)

	
Enforceability.  This Agreement has been duly executed and delivered by Octagon 88 and is a legal, valid and binding obligation of Octagon 88, enforceable against Octagon 88 in accordance with its terms.

 

ARTICLE 5

 

CLOSING DATE

 

	
5.1

	
The closing date is, and the closing of the purchase and sale contemplated by this Agreement will take place at 1:00 p.m. on the day agreed to by the Parties but no later than January 31, 2013 (“Closing Date”) at the offices of Vendors, or such earlier or later date or other place or on such trust conditions as the Parties hereto may agree in writing.

 

  

6

  

ARTICLE 6

 

CONDITIONS PRECEDENT TO CLOSING

 

	
6.1

	
Within 5 days of execution of this Agreement, Octagon 88 shall provide the following:

 

	
  

	
(a)

	
certified copy of a resolution of its Board of Directors approving this transaction and all matters related thereto; and

 

Closing Documents

 

6.2           At the Closing, Vendors will deliver:

 

	
  

	
(a)

	
a certificate as to the accuracy as of the Closing Date of the representations and warranties of the Vendors set forth herein;

 

	
  

	
(b)

	
certified copies of resolutions of the directors of Vendors;

 

	
  

	
(c)

	
certified copies of resolutions of the director of CEC North Star authorizing the transfer and the registration of such shares in the name of Octagon 88 and authorizing the issue of new share certificates representing the Shares in the name of Octagon 88;

 

	
  

	
(d)

	
share certificates in the name of Vendors representing the CEC North Star Shares duly endorsed for transfer to Octagon 88 respecting such Shares; and

 

	
  

	
(e)

	
such other documents as Octagon 88 and Octagon 88’s legal counsel may reasonably request.

 

6.3           Octagon 88 will deliver:

 

	
  

	
(a)

	
a certificate as to the accuracy as of the Closing Date of the representations and warranties of Octagon 88 set forth herein;

 

	
  

	
(b)

	
certified copies of resolutions of the directors of Octagon 88 authorizing the execution and delivery of this Agreement and all other agreements and documents to be delivered pursuant hereto and the performance by Octagon 88 of its obligations hereunder;

 

	
  

	
(c)

	
share certificates in the name of Vendors representing the Octagon 88 Shares; and

 

	
  

	
(d)

	
such other documents as Vendors and Vendors’ legal counsel may reasonably request.

 

  

7

 

	
ARTICLE 7

 

	
  COMMISSIONS, LEGAL FEES

 

Each of the Parties will bear the fees and disbursements of the respective lawyers, accountants and consultants engaged by them in connection with this Agreement.

 

ARTICLE 8

 

PUBLIC ANNOUNCEMENTS AND POST CLOSING CONFIDENTIALITY

 

Octagon 88 shall be entitled to issue a press release or make any other public announcement on the Closing Date with respect to this Agreement or the transactions contemplated herein.  After the Closing, Vendors will keep confidential all information in their possession or under their control relating to CEC North Star and its business unless such information is or becomes generally available to the public other than as a result of a disclosure by Octagon 88.

 

ARTICLE 9

 

MISCELLANEOUS

 

	
9.1

	
No Party will assign this Agreement, or any part of this Agreement, without the consent of the other Party, which consent may not be unreasonably withheld or delayed.  Any purported assignment without the required consent is not binding or enforceable against any Party.

 

	
9.2

	
This Agreement enures to the benefit of and binds the Parties and their respective successors, heirs, executors, administrators, personal and legal representatives and permitted assigns.

 

	
9.3

	
Each notice to a Party must be given in writing.  A notice may be given by delivery to an individual, and will be validly given if delivered on a Business Day to an individual at the following address, or, if transmitted on a Business Day by fax addressed to the following party:

 

(a)           If to Vendors:

 

	 	 Name: 	 Morgarten Financial.
	 	 Address:	 Feldeggstrasse 12, Zurich Switzerland 8008
	 	 Attention:	 President

  

  

8

 

 

	 	 Name: 	 Kenmore International.
	 	 Address: 	 Feldeggstrasse 12, Zurich Switzerland 8008
	 	 Attention:	 President

  

	 	Name: 	Maushen Finanz Inc.
	 	Address: 	Feldeggstrasse 12, Zurich Switzerland 8008
	 	Attention:	President

(b)           If to Octagon 88:

 

	 	Name: 	 Octagon 88 Resources Inc.
	 	Address: 	Zeglistrasse 30, Englberg, Switzerland V86390
	 	Attention:	President

  

 

or to any other address, or individual that the party designates.  Any Notice:

 

	
  

	
(c)

	
if validly delivered, will be deemed to have been given when delivered;

 

	
  

	
(d)

	
if validly transmitted by fax after 3:00 p.m. (local time at the place of receipt) on a Business Day, will be deemed to have been given on the Business Day after the date of the transmission.

 

	
9.4

	
No waiver of any provision of this Agreement is binding unless it is in writing and signed by all the Parties except that any provision which does not give rights or benefits to particular Parties may be waived in writing, signed only by those Parties who have rights under, or hold the benefit of, the provision being waived if those Parties promptly send a copy of the executed waiver to all other Parties.  No failure to exercise, and no delay in exercising, any right or remedy under this Agreement will be deemed to be a waiver of that right or remedy.  No waiver of any breach of any provision of this Agreement will be deemed to be a waiver of any subsequent breach of that provision or of any similar provision.

 

	
9.5

	
Before and after the Closing Date, each Party will execute and deliver promptly at the other Party’s expense and request all further documents and take all further action reasonably necessary or appropriate to give effect to the provisions and intent of this Agreement and to complete the transactions contemplated by this Agreement.

 

	
9.6

	
The rights and remedies under this Agreement are cumulative and are in addition to and not in substitution for any other rights and remedies available at law or in equity or otherwise.  No single or partial exercise by a Party of any right or remedy precludes or otherwise affect the exercise of any other right to which that Party may be entitled be entitled.

 

	
9.7

	
This Agreement and all documents contemplated by or delivered under in connection with this Agreement may be executed and delivered in any number of counterparts with the same effect as if all Parties had all signed and delivered the same document and all counterparts will be construed together to be an original and will constitute one and the same agreement.

 

  

9

  

 

	
9.8

	
Any Party may deliver an executed copy of this Agreement by fax but that Party will immediately dispatch by delivery in person to the other Parties an originally copy of this Agreement.

 

	
9.9

	
No amendment, supplemental, restatement or termination of any provision of this Agreement is binding unless it is in writing and signed by each Person that is a party to this Agreement at the time of the amendment, supplemental, restatement or termination.

 

	
9.10

	
Each of the Parties irrevocably submits to the jurisdiction of the courts of Switzerland.

 

	
9.11

	
This Agreement and all documents contemplated by or delivered under or in connection with this Agreement, constitute the entire agreement between the Parties with respect to the subject matter of this Agreement and supersede all prior agreement, negotiations, discussions, undertaking, representations, warranties and understandings, whether or oral, express or implied statutory or otherwise.

 

IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement as of the day and year first written above.

	 	 	  

OCTAGON 88 RESOURCES, INC.

	 	
 

Per:

	 
	 	  

Per:

	 
	 	 	 
	 	 	  

Morgarten Financial

	 	  

Per:

	 
	 	  

Per:

	 
	 	 	 
	 	 	  

Maushen Finanz Inc.

	 	  

Per:

	 
	 	  

Per:

	 
	 	 	 
	 	 	  

Kenmore International

	 	  

Per:

	 
	 	  

Per:

	 

 

  

10

 

SCHEDULE “A”

 

This is Schedule “A” attached to and forming part of that certain Purchase and Sale Agreement  dated January 24, 2013

between the Vendors

and OCTAGON 88 RESOURCES, INC., as Purchaser

 

	 	
 Vendor 

	
Shares of CEC North Star Energy Ltd

 

	
  

	
1.

	
Maushen Finanz Inc

	
705,000 shares

 

	
  

	
2.

	
Morgarten Financial

	
352,500 shares

 

	
  

	
3.

	
Kenmore International

	
352,500 shares

 

 

1110.1 -Form of Stock Option Agreement under the Tumi Holdings, Inc. 2012 Long-Term Incentive Plan

Exhibit 10.1

TUMI HOLDINGS, INC. 2012 LONG-TERM INCENTIVE PLAN
FORM OF STOCK OPTION NOTICE OF GRANT & STOCK OPTION AGREEMENT
Tumi Holdings, Inc. (the "Company"), pursuant to its 2012 Long-Term Incentive Plan (the "Plan"), hereby grants to the individual listed below (the "Optionee"), an option to purchase the number of shares of the common stock of the Company ("Shares"), set forth below (the "Option").  This Option is subject to all of the terms and conditions set forth herein and in the Agreement attached hereto as Exhibit A (the "Agreement") and the Plan, which are incorporated herein by reference.  
Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Notice of Grant ("Notice") and the Agreement.
Optionee:    [•] 

Grant Date:    [•]

Exercise Price per Share:    $[FMV on Grant Date]/Share

Total Number of Shares Subject to the Option:    [•] Shares

Expiration Date:    10th Anniversary of the Grant Date

Type of Option:    Non-Qualified Stock Option

Vesting Schedule:      The Option shall vest and become exercisable in three equal installments on each of the first three anniversaries of the Grant Date, subject to continued service.
Termination:   The Option shall terminate on the Expiration Date set forth above or, if earlier, in accordance with the terms of the Agreement.
By his or her signature, the Optionee agrees to be bound by the terms and conditions of the Plan, the Agreement and this Notice.  The Optionee has reviewed the Agreement, the Plan and this Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and fully understands all provisions of this Notice, the Agreement and the Plan.  The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or relating to the Option.
TUMI HOLDINGS, INC.                     OPTIONEE
By: ________________________________            By: _______________________________
Print Name: _________________________            Print Name: _________________________    
Title: _______________________________

Exhibit A
STOCK OPTION AGREEMENT
Pursuant to the Stock Option Notice of Grant (the "Notice") to which this Stock Option Agreement (this "Agreement") is attached, Tumi Holdings, Inc. (the "Company"), has granted to the Optionee an option (the "Option") under the Company's 2012 Long-Term Incentive Plan, as amended from time to time (the "Plan") to purchase the number of shares of common stock of the Company ("Shares") indicated in the Notice.  Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and Notice.
ARTICLE I
GENERAL
1.1    Incorporation of Terms of Plan.  The Option is subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.
ARTICLE II
GRANT OF OPTION
2.1      Grant of Option. In consideration of the Optionee's service to the Company or any Affiliate and for other good and valuable consideration, effective as of the Grant Date set forth in the Notice (the "Grant Date"), the Company irrevocably grants to the Optionee the Option to purchase any part or all of the aggregate number of Shares set forth in the Grant Notice, upon the terms and conditions set forth in the Plan and this Agreement. 

2.2     Exercise Price.  The exercise price of the Shares subject to the Option shall be as set forth in the Notice, without commission or other charge; provided, however, that the exercise price per share of the Shares subject to the Option shall not be less than 100% of the Fair Market Value of a Share on the Grant Date.  

2.3    Consideration to the Company.  In consideration of the grant of the Option by the Company, the Optionee agrees to render services to the Company or any Affiliate.  Nothing in the Plan or this Agreement shall confer upon the Optionee any right to continue in the service of the Company or any Affiliate or shall interfere with or restrict in any way the rights of the Company and its Affiliates, which rights are hereby expressly reserved, to discharge or terminate the services of the Optionee at any time for any reason whatsoever, with or without Cause.
ARTICLE III
PERIOD OF EXERCISABILITY
3.1    Commencement of Exercisability.
(a)    Except as otherwise provided herein, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the Notice.

(b)    No portion of the Option which has not become vested and exercisable as of the date of the Optionee's termination of service on the Board shall thereafter become vested and exercisable, except as may be otherwise provided by the Administrator or as set forth in a written agreement between the Company and the Optionee.  Notwithstanding the foregoing, in no event shall the Option remain exercisable after the Expiration Date set forth in the Notice.

3.2    Duration of Exercisability.  The installments provided for in the vesting schedule set forth in the Notice are cumulative.  Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in the Notice shall remain vested and exercisable until it becomes unexercisable under Section 3.3 hereof.

3.3    Expiration of Option.  Except as provided by the Administrator, the Option may not be exercised to any extent by anyone after the first to occur of the following events: 

(a)    The Expiration Date set forth in the Notice; 
    
(b)    The date that is three (3) months from the date of the Optionee's termination of service with the Company without Cause or by the Optionee for any reason (other than due to death or Disability);

(c)    The expiration of twelve (12) months from the date of the Optionee's termination of service by reason of the Optionee's death or Disability; or

(d)    The start of business on the date of the Optionee's termination of service by the Company for cause.
ARTICLE IV
EXERCISE OF OPTION
4.1    Person Eligible to Exercise.  Except as provided in Section 6.2 hereof, during the lifetime of the Optionee, only the Optionee may exercise the Option or any portion thereof.  After the death of the Optionee, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 3.3 hereof, be exercised by the deceased Optionee's personal representative or by any person empowered to do so under the deceased Optionee's will or under the then-applicable laws of descent and distribution. 

4.2    Partial Exercise.  Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3 hereof.  However, the Option shall not be exercisable with respect to fractional shares.

4.3    Manner of Exercise.  The Option, or any exercisable portion thereof, may be exercised solely by delivery to [the Secretary of the Company] (or any third party administrator or other person or entity designated by the Company) of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 3.3 hereof: 

(a)    A written or electronic notice complying with the applicable rules established by the Administrator stating that the Option, or a portion thereof, is exercised.  The notice shall be signed by the Optionee or other person then entitled to exercise the Option or such portion of the Option; 

(b)    Full payment of the exercise price and, if applicable, withholding taxes to the stock administrator of the Company for the Shares with respect to which the Option, or portion thereof, is exercised, in a manner permitted by Section 4.4 hereof;

(c)    Any other written representations or documents as may be required in the Administrator's sole discretion to effect compliance with all applicable provisions of the Securities Act, the Exchange Act, any other federal, state or foreign securities laws or regulations, the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded or any other applicable law; and

(d)    In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 hereof by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the Option. 

Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and which may be subject to change from time to time. 

4.4    Method of Payment.  Payment of the exercise price shall be by any of the following, or a combination thereof: 
(a)    Cash;

(b)    Check;

(c)    With the consent of the Administrator, surrender of other Shares which have been held by the Optionee for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares with respect to which the Option or portion thereof is being exercised;

(d)    With the consent of the Administrator, surrendered Shares issuable upon the exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Shares with respect to which the Option or portion thereof is being exercised; or

(e)    With the consent of the Administrator, such other form of legal consideration as may be acceptable to the Administrator.

4.5    Conditions to Issuance of Stock Certificates.  The Shares deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued Shares, treasury Shares or issued Shares which have then been reacquired by the Company.  Such Shares shall be fully paid and nonassessable.  The Company shall not be required to issue or deliver any certificates or make any book entries evidencing Shares purchased upon the exercise of the Option or portion thereof prior to fulfillment of the conditions set forth in Section 11.3 of the Plan.

4.6    Rights as Stockholder.  The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, in respect of any Shares purchasable upon the exercise of any part of the Option unless and until such Shares shall have been issued by the Company and held of record by such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 3.2 of the Plan. 
ARTICLE V
CHANGE IN CONTROL
5.1    Change in Control.  In the event of a Change in Control:

(a)    With respect to each outstanding Option that is assumed or substituted in connection with a Change in Control, in the event that a Participant's employment or service is terminated by the Company or any Affiliate thereof during the twenty-four (24) month period following such Change of Control, (i) such Option shall become fully vested and exercisable, (ii) the restrictions, payment conditions, and forfeiture conditions applicable to any such Option granted shall lapse, and (iii) and any performance conditions imposed with respect to such Option shall be deemed to be achieved at target performance levels. 

(b)    With respect to each outstanding Option that is not assumed or substituted in connection with a Change in Control, immediately upon the occurrence of the Change of Control, (i) such Option shall become fully vested and exercisable, (ii) the restrictions, payment conditions, and forfeiture conditions applicable to any such Option granted shall lapse, and (iii) and any performance conditions imposed with respect to such Option shall be deemed to be achieved at target performance levels. 

(c)    For purposes of this Section 5.1, an Option shall be considered assumed or substituted for if, following the Change in Control, the Option is of comparable value and remains subject to the same terms and conditions that were applicable to the Option immediately prior to the Change in Control except that, if the Option related to shares of Common Stock, the Option instead confers the right to receive common stock of the acquiring or ultimate parent entity.
 
(d)    Notwithstanding any other provision of this Agreement or the Plan, in the event of a Change in Control, except as would otherwise result in adverse tax consequences under Section 409A of the Code, the Administrator may, in its discretion, provide that each Option shall, immediately upon the occurrence of a Change in Control, be cancelled in exchange for a payment in cash or securities in an amount equal to (i) the excess of the consideration paid per share of Common Stock in the Change in Control over the exercise or purchase price (if any) 

per share of Company Stock subject to the Option multiplied by (ii) the number of shares of Common Stock granted under the Option. 

ARTICLE VI
OTHER PROVISIONS
6.1    Administration.  The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Optionee, the Company and all other interested persons.  No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the Option.

6.2    Transferability of Option.  Except as otherwise set forth in the Plan:

(a)    The Option may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution;

(b)    The Option shall not be liable for the debts, contracts or engagements of the Optionee or the Optionee's successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy) unless and until the Option has been exercised, and any attempted disposition thereof prior to exercise shall be null and void and of no effect, except to the extent that such disposition is permitted by Section 6.2(a) hereof; and

(c)    During the lifetime of the Optionee, only the Optionee may exercise the Option (or any portion thereof); after the death of the Optionee, any exercisable portion of the Option may, prior to the time when such portion becomes unexercisable under the Plan or this Agreement, be exercised by the Optionee's personal representative or by any person empowered to do so under the deceased Optionee's will or under the then-applicable laws of descent and distribution. 

6.3    Adjustments.  The Optionee acknowledges that the Option is subject to modification and termination in certain events as provided in this Agreement and Article 3 of the Plan.

6.4    Termination of Service.  The Administrator, in its sole discretion, shall determine the effect of all matters and questions relating to termination of service, including without limitation, whether a termination has occurred, whether any termination resulted from a discharge for Cause and whether any particular leave of absence constitutes a termination.  

6.5    Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the [Secretary of the Company] at the at the Company's principal office, and any notice to be given to the Optionee shall be addressed to the Optionee's last address reflected on the Company's records.  Any notice which is required to be given to the Optionee shall, if the Optionee is then deceased, be given to the person entitled to exercise his or her Option pursuant to Section 4.1 hereof by written notice under this Section 6.4.  

6.6    Optionee's Representations.  If the Shares purchasable pursuant to the exercise of this Option have not been registered under the Securities Act or any applicable state laws on an effective registration statement at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, make such written representations as are deemed necessary or appropriate by the Company and/or its counsel.

6.7    Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 

6.8    Governing Law.  The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

6.9    Conformity to Securities Laws.  The Optionee acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

6.10    Amendments, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board, provided, however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Option in any material way without the prior written consent of the Optionee.

6.11    Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth in this Article 5, this Agreement shall be binding upon the Optionee and his or her heirs, executors, administrators, successors and assigns.

6.12    Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if the Optionee is subject to Section 16 of the Exchange Act, then the Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

6.13    Entire Agreement.  The Plan, the Notice and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Optionee with respect to the subject matter hereof. 

6.14    Section 409A.  Notwithstanding any other provision of the Plan, this Agreement or the Notice, the Plan, this Agreement and the Grant shall be interpreted in accordance with the requirements of Section 409A of the Code.  The Administrator may, in its discretion, adopt such amendments to the Plan, this Agreement or the Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate to comply with the requirements of Section 409A of the Code.
ARTICLE VII
DEFINITIONS
Wherever the following terms are used in the Agreement they shall have the meanings specified below, unless the context clearly indicates otherwise.  The singular pronoun shall include the plural where the context so indicates. 

7.1    "Cause" shall mean, with respect to the Optionee, (a) the Optionee's engaging in any material act of dishonesty, fraud, embezzlement or misrepresentation that was or is likely to be materially injurious to the Company; (b) the Optionee's knowing violation of any federal or state law or regulation applicable to the Company's business that was or is likely to be materially injurious to the Company; (c) the Optionee's breach of any confidentiality agreement or invention assignment agreement or any other material agreement between the Optionee and the Company; (d) the Optionee's conviction of, or plea of nolo contendere to, any felony or crime of moral turpitude; or (e) gross negligence or willful misconduct that does or reasonably could be expected to cause material harm to the Company.

7.2    A "Change in Control" shall be deemed to have occurred on the date upon which:

(a)    Any Person other than the Initial Investor becomes the beneficial owner directly or indirectly (within the meaning of Rule 13d-3 under the Exchange Act) of more than 50% of the Company's then outstanding voting securities (measured on the basis of voting power);

(b)    There is consummated a merger or consolidation, other than (i) a merger or consolidation immediately following which the voting securities of the Company outstanding immediately prior thereto continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, at least 50% of the combined voting power of the voting securities of the Company, such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person other than the Initial Investor acquires more than 50% of the combined voting power of the Company's then outstanding securities;

(c)    individuals who, as of the Effective Date, constituted the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding for this purpose any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(d)     the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.

Notwithstanding the foregoing, for each Award that constitutes deferred compensation under Section 409A of the Code, a Change in Control shall be deemed to have occurred under the Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code. Consistent with the terms of this Section 7.2, the Administrator shall have full and final authority to determine conclusively whether a Change in Control of the Company has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto.

7.3    "Code" shall mean the Internal Revenue Code of 1986, as amended.

7.4    "Disability" shall mean a condition such that an individual would be considered disabled for the purposes of Section 409(A) of the Code.

7.5    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.
7.6    "Incumbent Board" shall have the meaning provided in Section 7.2(c) hereof.

7.7    "Initial Investor" means any limited partnership or other collective investment vehicle arranged by Doughty Hanson & Co Limited, any wholly-owned direct or indirect subsidiaries of Doughty Hanson & Co Limited and any nominee of, or nominee for any co-investment scheme for employees of subsidiaries of, Doughty Hanson & Co Limited, in each case, other than any portfolio operating company of any of the foregoing.

7.8    "Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however, a Person shall not include (a) the Company or any of its subsidiaries, (b) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any 

of its subsidiaries, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, or (d) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of Shares.

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