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JON F. CHAIT FORM
HUDSON HIGHLAND GROUP, INC.
STOCK OPTION AGREEMENT
STOCK
OPTION AGREEMENT (“Agreement”) made as of the
[DAY]th day of [MONTH], [YEAR], by and between HUDSON HIGHLAND
GROUP, INC. , a Delaware corporation (the
“Company”) and JON F. CHAIT (the
“Optionee”).
W I T N E S S E T H:
WHEREAS
, pursuant to the Hudson Highland Group, Inc. Long Term Incentive
Plan (the “Plan”), the Company desires to grant to the
Optionee and the Optionee desires to accept an option to purchase
shares of common stock, $.001 par value, of the Company (the
“Common Stock”) upon the terms and conditions set forth
in this Agreement.
NOW,
THEREFORE , the parties hereto agree as follows:
1.
Grant . Subject to the terms and conditions set forth
herein, the Company hereby grants to the Optionee an option to
purchase up to [OPTIONS] shares of Common Stock at a purchase price
per share of $[PRICE]. This option is intended to be treated as an
option that does not qualify as an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended.
2.
Vesting . Except as specifically provided otherwise herein,
the option will vest and become exercisable, if at all, in
accordance with the following schedule based upon the number of
full years of the Optionee’s continuous employment with the
Company or an affiliate (as defined below) of the Company following
the date of this Agreement. As used in this Agreement, the term
“affiliate” means an affiliate of the Company within
the meaning of Rule 405 under the Securities Act of 1933, as
amended.
Full Years of
Continuous
Employment
|
Incremental
Percentage of
Option
Exercisable
|
Cumulative
Percentage of
Option
Exercisable
|
| Less than |
1 |
___% |
___% |
|
1 |
___% |
___% |
|
2 |
___% |
___% |
|
3 |
___% |
___% |
|
[4] |
___% |
___% |
If any
fractional shares would result from the strict application of the
incremental percentages set forth above, then the actual number of
shares vesting on any specific date will cover only the full number
of shares determined by rounding the number of shares to be issued
from the strict application of the incremental percentages set
forth above to the nearest whole number. Unless sooner terminated,
the option will expire on the tenth anniversary of the date
hereof.
3.
Exercise . Any portion of the option which has vested and is
exercisable may be exercised in whole or in part by delivering to
the Executive Vice President, Human Resources of the Company at its
corporate headquarters in New York, New York (a) a written notice
specifying (1) the number of shares to be purchased, (2) the date
of this Agreement and the specific number of shares referred to in
Section 1 of this Agreement, (3) the Optionee’s home address
and, if the Optionee has one, the Optionee’s social security
or U.S. taxpayer identification number and (4) delivery
instructions with respect to the shares of Common Stock issuable
upon exercise, and (b) cash payment in full of the exercise price,
together with the amount, if any, deemed necessary by the Company
to enable it to satisfy any federal, foreign or other tax
withholding obligations with respect to the exercise (unless other
arrangements acceptable to the Company in its sole discretion have
been made). The Company may from time to time change (or provide
alternatives to) the method of exercise of the option granted
hereunder by notice to the Optionee, it being understood that from
and after such notice the Optionee will be bound by the method (or
alternatives) specified in any such notice. The Company (in its
sole and absolute discretion) may permit all or part of the
exercise price to be paid with shares of Common Stock which have
been owned by the Optionee for at least six months, or in
installments (together with interest) evidenced by the
Optionee’s secured promissory note.
4.
Issuance of Shares . No shares of Common Stock shall be sold
or delivered hereunder until full payment for such shares has been
made. The Optionee shall have no rights as a stockholder with
respect to any shares covered by the option until a stock
certificate for such shares is issued to the Optionee. Except as
otherwise provided herein, no adjustment shall be made for
dividends or distributions of other rights for which the record
date is prior to the date such stock certificate is
issued.
5.
No Assignment of Option . This option is not assignable or
transferable except upon the Optionee’s death to a
beneficiary designated by the Optionee in a written beneficiary
designation filed with the Company or, if no duly designated
beneficiary shall survive the Optionee, pursuant to the
Optionee’s will and/or by the laws of descent and
distribution, and is exercisable during the Optionee’s
lifetime only by the Optionee or the Optionee’s guardian or
legal representative. Notwithstanding the foregoing, this option
may be transferred, in whole or in part, to (a) the spouse,
children or grandchildren (the “Immediate Family
Members”) of the Optionee, (b) a trust established for the
principal benefit of the Optionee’s Immediate Family Members,
(c) a partnership in which the Optionee’s Immediate Family
Members are the only partners, or (d) the former spouse of the
Optionee as required by a domestic relations order incident to a
divorce. The Optionee may not receive consideration for such
transfer. The Optionee must notify the Company of any transfers and
any subsequent transfers must be approved by the Company. Following
transfer, this option shall continue to be subject to the same
terms and conditions as were applicable immediately before the
transfer, except that the transferee shall have the right to
exercise the option upon the terms and conditions described
herein.
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6.
Termination of Employment for Cause . If the
Optionee’s employment or service is terminated by the Company
or its affiliates for cause (as defined below), or at a time when
grounds for a termination for cause exist, then any option held by
the Optionee, whether or not otherwise exercisable on the
termination date, shall immediately terminate and cease to be
exercisable. For purposes hereof, the term “cause”
means (a) in the case where there is no employment, consulting or
similar service agreement between the participant and the Company
or its affiliates or where such an agreement exists but does not
define “cause” (or words of like import), a termination
classified by the Company or its affiliates, in their sole
discretion, as a termination due to the participant’s
dishonesty, fraud, insubordination, willful misconduct, refusal to
perform services or materially unsatisfactory performance of
duties, or (b) in the case where there is an employment, consulting
or similar service agreement between the participant and the
Company or its affiliates that defines “cause” (or
words of like import), a termination that is or would be deemed for
“cause” (or words of like import) as classified by the
Company or its affiliates, in their sole discretion, under such
agreement.
7.
Other Termination of Employment . If the Optionee ceases to
be employed by the Company or any of its affiliates for any reason
other than death or for cause (as defined in Section 6), then,
unless sooner terminated, that portion of the option which is
exercisable on the date of the Optionee’s termination of
employment will remain exercisable for a period of six months after
such date (one year in the case of an Optionee whose employment
terminates by reason of disability (as defined below)) but in no
event after the expiration of the option in accordance with Section
2, and the remaining portion of the option will automatically
expire on such date. If the Optionee’s employment terminates
by reason of the Optionee’s death, then, unless sooner
terminated, the option will become fully vested (to the extent it
was not vested on the date of death) and will remain exercisable by
the Optionee’s beneficiary for a period of one year after the
date of the Optionee’s death but in no event after the
expiration of the option in accordance with Section 2. Any vested
option which is not exercised within the applicable six month or
one-year period following termination of employment will
automatically expire. For purposes hereof, the term
“disability” means the inability of the Optionee to
perform the customary duties of the Optionee’s employment
with the Company or an affiliate of the Company by reason of a
physical or mental incapacity which is expected to result in death
or be of indefinite duration as determined by the Committee (as
defined in the Plan).
8.
Securities Law Restrictions . Notwithstanding anything
herein to the contrary, the option shall in no event be exercisable
and shares shall not be issued hereunder if, in the opinion of
counsel to the Company, such exercise and/or issuance may result in
a violation of federal or state securities laws or the securities
laws of any other relevant jurisdiction.
9.
Capital and Corporate Changes .
(a)
Adjustments Upon Changes in Capitalization . The number and
class of shares covered by this option and, if applicable, the
exercise price per share shall be adjusted proportionately or as
otherwise appropriate to reflect any increase or decrease in the
number of issued shares of Common Stock resulting from a split-up
or consolidation of shares or any like capital adjustment, or the
payment of any stock dividend, and/or to reflect a change in the
character or class of shares covered by the Plan arising from a
readjustment or recapitalization of the Company’s capital
stock.
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(b)
Change in Control . Effective upon a Change in Control (as
defined below), the option will fully vest and will immediately
become exercisable. If, in connection with a Change in Control, the
stockholders of the Company will receive capital stock of another
corporation (“Exchange Stock”) in exchange for their
shares of Common Stock (whether or not such Exchange Stock is the
sole consideration), and if the Board of Directors of the Company
so directs, then this option will be converted into an option to
purchase shares of Exchange Stock; provided that such conversion
shall not effect the exercisability of the option pursuant to the
foregoing sentence. The number of shares and exercise price under
the converted option will be determined by adjusting the number of
shares and exercise price under this option on the same basis as
the determination of the number of shares of Exchange Stock the
holders of Common Stock will receive in connection with the Change
in Control.
(c)
Definition of Change in Control . For purposes hereof, a
“Change in Control” shall be deemed to occur on the
first to occur of any one of the following events: (a) the
consummation of a consolidation, merger, share exchange or
reorg
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