Document:

EX-10.2

 

Exhibit 10.2

STOCK OPTION AGREEMENT

(2005 Incentive Stock Option Plan)

     This STOCK OPTION AGREEMENT (the “AGREEMENT”) is made to be effective as of                     ,
200___(the “GRANT DATE”), by and between Park National Corporation, an Ohio corporation (the
“COMPANY”), and                                          (the “OPTIONEE”).

WITNESSETH:

     WHEREAS, the Board of Directors of the COMPANY has adopted, and the shareholders of the
COMPANY have approved, the Park National Corporation 2005 Incentive Stock Option Plan (the “PLAN”);
and

     WHEREAS, pursuant to the provisions of the PLAN, the Compensation Committee (the “COMMITTEE”)
of the Board of Directors of the COMPANY administers the PLAN; and

     WHEREAS, the COMMITTEE has determined that an option to purchase common shares, without par
value (the “COMMON SHARES”), of the COMPANY should be granted to the OPTIONEE upon the terms and
conditions set forth in this AGREEMENT;

     NOW, THEREFORE, in consideration of the premises, the parties hereto make the following
agreement, intending to be legally bound thereby:

     1. Grant of OPTION. The COMPANY hereby grants to the OPTIONEE an option (the
“OPTION”) to purchase                           COMMON SHARES of the COMPANY, subject to adjustment as provided in
Section 3 of this AGREEMENT. The OPTION is intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended (the “CODE”).

     2. Terms and Conditions of the OPTION.

          (A) EXERCISE PRICE. The purchase price (the “EXERCISE PRICE”) to be paid by the
OPTIONEE to the COMPANY upon the exercise of the OPTION shall be $                     per COMMON SHARE, which
is the closing price of the COMMON SHARES of the COMPANY as reported on the American Stock Exchange
on the GRANT DATE, subject to adjustment as provided in Section 3 of this AGREEMENT. The OPTION
may not be “repriced” (as defined under the rules of the American Stock Exchange) without the prior
approval of the COMPANY’s shareholders.

          (B) Exercise of the OPTION. Except as otherwise provided in this AGREEMENT, the
OPTION may be exercised as follows:

	 	(i)  	at any time after the GRANT DATE, as to                           of the COMMON
SHARES subject to the OPTION (subject to adjustment as provided in

 

 

	 	   	Section 3 of this AGREEMENT), provided that the OPTIONEE is employed by the
COMPANY or a subsidiary of the COMPANY on the date of exercise;
	 
	 	(ii)  	at any time after the first anniversary of the GRANT DATE, as
to an additional                           of the COMMON SHARES subject to the OPTION (subject to
adjustment as provided in Section 3 of this AGREEMENT), provided that the
OPTIONEE is employed by the COMPANY or a subsidiary of the COMPANY on the date
of exercise;
	 
	 	(iii)  	at any time after the second anniversary of the GRANT DATE, as
to an additional                           of the COMMON SHARES subject to the OPTION (subject to
adjustment as provided in Section 3 of this AGREEMENT), provided that the
OPTIONEE is employed by the COMPANY or a subsidiary of the COMPANY on the date
of exercise; and
	 
	 	(iv)  	at any time after the third anniversary of the GRANT DATE, as
to an additional                           of the COMMON SHARES subject to the OPTION (subject to
adjustment as provided in Section 3 of this AGREEMENT), provided that the
OPTIONEE is employed by the COMPANY or a subsidiary of the COMPANY on the date
of exercise.

Any exercise of the OPTION may be made in whole or in part; however, no single purchase of COMMON
SHARES upon exercise of the OPTION shall be for less than the lesser of (i) 200 COMMON
SHARES or (ii) the full number of COMMON SHARES for which the OPTION is then exercisable.

     Subject to the other provisions of this AGREEMENT, if the OPTION becomes vested and
exercisable as to certain COMMON SHARES, it shall remain exercisable as to those COMMON SHARES
until the date of expiration of the OPTION term.

     The grant of the OPTION shall not confer upon the OPTIONEE any right to continue in the
employment of the COMPANY or any subsidiary of the COMPANY nor limit or qualify in any way the
right of the COMPANY or any subsidiary of the COMPANY to modify the terms of or terminate the
employment of the OPTIONEE at any time in accordance with applicable law and the governing
corporate documents of the OPTIONEE’s employer.

          (C) OPTION Term. The OPTION shall in no event be exercisable after the fifth
anniversary of the day immediately preceding the GRANT DATE.

          (D) Method of Exercise. The OPTION may be exercised by the OPTIONEE (or in the event
of the OPTIONEE’s death, the OPTIONEE’s beneficiary as determined pursuant to the provisions of the
PLAN) giving written notice of exercise to the COMMITTEE, in care of the Secretary of the COMPANY,
stating the number of COMMON SHARES in respect of which the OPTION is being exercised. Payment for
all such COMMON SHARES shall be made to the COMPANY at the time the OPTION is exercised in United
States dollars in cash (including

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check, bank draft or money order payable to the order of the COMPANY). After payment in full
for the COMMON SHARES purchased under the OPTION has been made, the COMPANY shall take all such
actions as are necessary to deliver an appropriate share certificate evidencing the COMMON SHARES
purchased upon the exercise of the OPTION as promptly thereafter as is reasonably practicable.

     3. Adjustments and Changes in the COMMON SHARES.

          (A) If, during the term of the OPTION, there shall be a dividend or split in respect of the
COMMON SHARES, recapitalization (including, without limitation, the payment of an extraordinary
dividend), merger, consolidation, combination, spin-off, distribution of assets to shareholders,
exchange of shares, or other similar corporate change affecting the COMMON SHARES, the number of
COMMON SHARES subject to the OPTION and the EXERCISE PRICE of the OPTION shall be appropriately
adjusted to reflect such event. Fractional COMMON SHARES resulting from any adjustment in the
OPTION pursuant to this Section 3 shall be rounded down to the nearest whole number of COMMON
SHARES.

          (B) Any and all adjustments in connection with the OPTION made pursuant to this Section 3
shall comply in all respects with Section 422 of the CODE, and the regulations promulgated
thereunder.

          (C) Notice of any adjustment made pursuant to this Section 3 shall be given by the COMPANY to
the OPTIONEE.

     4. Acceleration of the Vesting of the OPTION upon a Change in Control. Upon the
occurrence of a “Change in Control” (as such term is defined in the PLAN), the unexercised portion
of the OPTION (whether or not such portion is then exercisable by its terms) shall become
immediately vested and exercisable in full.

     5. Non-Transferability of the OPTION. The OPTION may not be transferred, pledged,
assigned, alienated, hypothecated or otherwise disposed of, except by will or by the laws of
descent and distribution. The OPTION shall be exercisable, during the OPTIONEE’s lifetime, only by
the OPTIONEE, the OPTIONEE’s guardian or the OPTIONEE’S legal representative. In the event of the
death of the OPTIONEE, the person or persons entitled to exercise the unexercised portion of the
OPTION will be determined in accordance with the provisions of the PLAN.

     6. Exercise After Termination of Employment.

          (A) If the OPTIONEE’s employment with the COMPANY and each of its subsidiaries terminates for
any reason other than the death, Disability or Normal Retirement of the OPTIONEE, the OPTION shall
be forfeited effective immediately upon such termination of employment. If the termination of
employment was due to the Normal Retirement of the OPTIONEE, the unexercised portion of the OPTION
may be exercised in full (whether or not the OPTION is then fully exercisable) and the right of the
OPTIONEE to exercise the OPTION shall

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terminate upon the earlier to occur of the expiration of the term of the OPTION or three
months after the date of termination of employment. If the termination of employment was due to
the death of the OPTIONEE and the OPTIONEE was an employee of the COMPANY or any subsidiary of the
COMPANY at the time of the OPTIONEE’s death, the unexercised portion of the OPTION may be exercised
in full (whether or not the OPTION is then fully exercisable) and the right of the OPTIONEE’s
beneficiary to exercise the OPTION shall terminate upon the earlier to occur of the expiration of
the term of the OPTION or 12 months after the date of death. If the termination of employment was
due to the Disability of the OPTIONEE, the unexercised portion of the OPTION may be exercised in
full (whether or not the OPTION is then fully exercisable) and the right of the OPTIONEE to
exercise the OPTION shall terminate upon the earlier to occur of the expiration of the term of the
OPTION or 12 months after the date of termination of employment. For purposes of this AGREEMENT,
the date of termination of employment shall be the last day of employment.

          (B) For purposes of this AGREEMENT, “Disability” shall mean a disability within the meaning of
Subsection 22(e) (3) of the CODE and “Normal Retirement” shall mean separation from employment with
the COMPANY and each of its subsidiaries on or after the date the OPTIONEE has attained age 62.

     7. Limits on Exercisability of the OPTION; Forfeiture of Exercised Portion of the
OPTION. The OPTIONEE will forfeit the unexercised portion of the OPTION, as well as all COMMON
SHARES acquired through the exercise of the OPTION on the date of termination of employment with
the COMPANY and each of its subsidiaries or within six months before and five years after such
termination of employment, if the OPTIONEE:

          (A) Without the COMMITTEE’s written consent, which may be withheld for any reason or for no
reason, renders services to, becomes the owner of, or serves (or agrees to serve) as an officer,
director, consultant or employee of or partner or member in a business that competes with any
portion of the business of the COMPANY or any subsidiary of the COMPANY with which the OPTIONEE has
been involved at any time within five years before the OPTIONEE’s termination of employment with
the COMPANY and each of its subsidiaries;

          (B) Refuses or fails to consult with, supply information to or otherwise cooperate with the
COMPANY or any subsidiary of the COMPANY after being requested to do so;

          (C) Deliberately engages in any action that the COMMITTEE concludes has caused substantial
harm to the interests of the COMPANY or any subsidiary of the COMPANY;

          (D) Without the COMMITTEE’s written consent, which may be withheld for any reason or for no
reason, solicits or in any manner attempts to influence or induce any employee of the COMPANY or
any of its subsidiaries to terminate such employee’s employment, or uses or discloses any
information obtained while the OPTIONEE was employed by the COMPANY or any of its subsidiaries
concerning the names and addresses of employees;

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          (E) Without the COMMITTEE’s written consent, which may be withheld for any reason or for no
reason, discloses any confidential or proprietary information relating to the business affairs of
the COMPANY or any of its subsidiaries;

          (F) Fails to return all property (other than personal property) produced by, received by or
otherwise submitted to the OPTIONEE in the course of the OPTIONEE’s employment with the COMPANY or
any of its subsidiaries; or

          (G) Engages in conduct the COMMITTEE reasonably concludes would have given rise to termination
of the OPTIONEE for cause (as defined in the PLAN) if it had been discovered before the OPTIONEE
terminated the OPTIONEE’s employment with the COMPANY or any of its subsidiaries.

     8. Restrictions on Resale or Other Disposition of COMMON SHARES Acquired Upon Exercise of
the OPTION.

          (A) The OPTIONEE hereby acknowledges and agrees that none of the COMMON SHARES acquired upon
exercise of the OPTION may be sold, transferred, pledged, assigned, alienated, hypothecated or
otherwise disposed of by the OPTIONEE to any person other than the COMPANY or a subsidiary of the
COMPANY for a period of five years after the date of exercise; provided, however, that this
restriction shall not apply in the event of the exercise of the OPTION following the death,
Disability or Normal Retirement (as those terms are defined in Section 6 of this AGREEMENT) of the
OPTIONEE. In addition, if following the exercise of the OPTION, the OPTIONEE subsequently leaves
the employment of the COMPANY and each of its subsidiaries by reason of death, Disability or Normal
Retirement, the restrictions of this Section 8 will immediately cease to apply. If following the
exercise of the OPTION, the OPTIONEE leaves the employment of the COMPANY and each of its
subsidiaries for any reason other than death, Disability or Normal Retirement, and the OPTIONEE
desires to sell or otherwise dispose of the COMMON SHARES acquired upon exercise of the OPTION
prior to the termination of the five-year restriction period, the OPTIONEE shall submit a written
request to the COMPANY to purchase such COMMON SHARES at a purchase price per COMMON SHARE equal to
the lesser of the EXERCISE PRICE or the closing price for the COMPANY’s COMMON SHARES as reported
on the American Stock Exchange on the date the OPTIONEE’s employment with the COMPANY and each of
its subsidiaries terminated.

          (B) The OPTIONEE acknowledges and agrees that the COMPANY shall cause each share certificate
evidencing the COMMON SHARES acquired upon exercise of the OPTION to bear an appropriate legend
reflecting the terms of this Section 8, which legend may be in the following or any other
appropriate form:

     “Restrictions on the right to transfer the common shares evidenced by this
certificate (the “Common Shares”) are set forth in a written Stock Option Agreement,
dated                                    , to which Park National Corporation (the “Corporation”) and
                                                             [name of the OPTIONEE] are parties. The Corporation
will mail to the record holder of the

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Common Shares a copy of said Stock Option Agreement, without charge, within
five days after receipt of a written request therefor.”

     9. Rights of the OPTIONEE as a Shareholder. The OPTIONEE shall have no rights as a
shareholder of the COMPANY with respect to any COMMON SHARES of the COMPANY covered by the OPTION
until the date of issuance of a certificate to the OPTIONEE evidencing such COMMON SHARES.

     10. PLAN as Controlling. All terms and conditions of the PLAN applicable to the
OPTION which are not set forth in this AGREEMENT shall be deemed incorporated herein by reference.
In the event that any term or condition of this AGREEMENT is inconsistent with the terms and
conditions of the PLAN, the PLAN shall be deemed controlling.

     11. Governing Law. To the extent not preempted by federal law, this AGREEMENT shall
be governed by and construed in accordance with the laws of the State of Ohio.

     12. Rights and Remedies Cumulative. All rights and remedies of the COMPANY and of the
OPTIONEE enumerated in this AGREEMENT shall be cumulative and, except as expressly provided
otherwise in this AGREEMENT, none shall exclude any other rights or remedies allowed by law or in
equity, and each of said rights or remedies may be exercised and enforced concurrently.

     13. Captions. The captions contained in this AGREEMENT are included only for
convenience of reference and do not define, limit, explain or modify this AGREEMENT or its
interpretation, construction or meaning and are in no way to be construed as a part of this
AGREEMENT.

     14. Severability. If any provision of this AGREEMENT or the application of any
provision hereof to any person or any circumstance shall be determined to be invalid or
unenforceable, then such determination shall not affect any other provision of this AGREEMENT or

the application of said provision to any other person or circumstance, all of which other
provisions shall remain in full force and effect, and it is the intention of each party to this
AGREEMENT that if any provision of this AGREEMENT is susceptible of two or more constructions, one
of which would render the provision enforceable and the other or others of which would render the
provision unenforceable, then the provision shall have the meaning which renders it enforceable.

     15. Number and Gender. When used in this AGREEMENT, the number and gender of each
pronoun shall be construed to be such number and gender as the context, circumstances or its
antecedent may require.

     16. Entire Agreement. This AGREEMENT, including the PLAN incorporated herein by
reference, constitutes the entire agreement between the COMPANY and the OPTIONEE in respect of the
subject matter of this AGREEMENT, and this AGREEMENT supersedes all prior and contemporaneous
agreements between the parties hereto in connection with the subject

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matter of this AGREEMENT. No officer, employee or other servant or agent of the COMPANY, and
no servant or agent of the OPTIONEE, is authorized to make any representation, warranty or other
promise not contained in this AGREEMENT. No change, termination or attempted waiver of any of the
provisions of this AGREEMENT shall be binding upon either party hereto unless contained in a
writing signed by the party to be charged.

     17. Successors and Assigns of the COMPANY. This AGREEMENT shall inure to the benefit
of and be binding upon the successors and assigns (including successive, as well as immediate,
successors and assigns) of the COMPANY.

     IN WITNESS WHEREOF, the COMPANY has caused this AGREEMENT to be executed by its duly
authorized officer, and the OPTIONEE has executed this AGREEMENT, in each case effective as of the
GRANT DATE.

	 	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PARK NATIONAL CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Printed Name:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Title:	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Printed Name of OPTIONEE	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Signature of OPTIONEE	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Street Address	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	          City                         State               Zip Code	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Telephone Number	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Social Security Number	 	 

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                                                                   EXHIBIT 10.1

THIS NOTE AND THE SHARES ISSUABLE ON CONVERSION HEREOF HAVE NOT BEEN REGISTERED
UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR ANY STATE
SECURITIES LAW. THE NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND NEITHER THE NOTE
NOR ANY SHARES ISSUABLE ON CONVERSION THEREOF MAY BE TRANSFERRED, SOLD OR
OFFERED FOR SALE, IN WHOLE OR IN PART, UNLESS (1) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITY UNDER THE ACT AND QUALIFICATION UNDER
ANY APPLICABLE STATE SECURITIES LAW, (2) SUCH TRANSFER IS MADE IN COMPLIANCE
WITH RULE 144 UNDER THE ACT AND PURSUANT TO QUALIFICATION UNDER ANY APPLICABLE
STATE SECURITIES LAW OR EXEMPTION THEREFROM, OR (3) THERE IS AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE
NOT REQUIRED AS TO SAID TRANSFER, SALE OR OFFER.

                                 NON-NEGOTIABLE
                           CONVERTIBLE PROMISSORY NOTE

U.S. $200,000
                                                                 Columbus, Ohio
                                                                 April 14, 2005

     FOR VALUE RECEIVED, the undersigned, Superconductive Components, Inc. (the
"Company"), promises to pay to the order of ROBERT H. PEITZ ("Lender") the sum
of TWO HUNDRED THOUSAND AND 00/100 Dollars ($200,000.00), (the "Principal Sum"),
according to the terms set forth below.

     SECTION 1. PAYMENT OF INTEREST. Interest will accrue and compound monthly
on the unpaid balance of the Principal Sum until paid at an interest rate of ten
percent (10%) per annum.

     SECTION 2. DUE DATE; PAYMENT OF PRINCIPAL SUM. The Principal Sum and
accrued and unpaid interest shall be payable in full on June 30, 2006 (the "Due
Date").

     SECTION 3. OPTION TO CONVERT LOAN BALANCE. The Lender shall have the option
to convert the loan balance to equity at any time before repayment of the loan
at the same price and terms as any equity financing received by the Company
after April 14, 2005. If the Company receives at least $500,000 in equity
financing, the then outstanding Principal Sum and accrued and unpaid interest
will automatically covert to equity at the same price and terms as the equity
financing.

     SECTION 4. PREPAYMENT. All or any part of the Principal Sum and accrued and
unpaid interest may be prepaid at any time without prepayment penalty after
providing 15 days written notice to the Lender.

     SECTION 5. DEFAULT. Section 7 of the Security Agreement by and between the
Lender and the Company is incorporated by reference as if fully restated herein.

     SECTION 6. NON-NEGOTIABLE. This Note is non-negotiable.

<PAGE>

     SECTION 7. WAIVER. All of the parties hereto, including the undersigned,
and any indorser, surety, or guarantor, hereby severally waive presentment,
notice of dishonor, protest, notice of protest, and diligence in bringing suit
against any party hereto, and consent that, without discharging any of them, the
time of payment may be extended an unlimited number of times before or after
maturity without notice. Lender shall not be required to pursue any party
hereto, including any guarantor, or to exercise any rights against any
collateral before exercising any other such rights.

     SECTION 8. GOVERNING LAW. This Note shall be governed by and construed in
accordance with the laws of the State of Ohio without reference to choice of law
rules.

     IN WITNESS WHEREOF, the undersigned has caused this Note to be executed on
the day and year first above written.

                                      SUPERCONDUCTIVE COMPONENTS, INC.

                                      By:
                                           ------------------------------------
                                           Daniel Rooney
                                           President and Chief Executive Officer

NON-NEGOTIABLE

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