Exhibit 99.7
NONQUALIFYING STOCK OPTION AGREEMENT
(2005 LONG-TERM INCENTIVE PLAN)
This Stock Option Agreement
(“Agreement”) is entered into effective as of
«date», by and between EchoStar Communications
Corporation, a Nevada corporation (the “Company”), and
«First_Name» «Last_Name»
(“Employee”).
RECITAL
WHEREAS, the Company, pursuant to its
1999 Stock Incentive Plan (the “Plan”) desires to grant
this stock option to Employee, and Employee desires to accept such
stock option, each under the terms and conditions set forth in this
Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of
the premises and of the mutual covenants herein contained, the
parties hereto hereby agree as follows:
1. Grant of
Option
The Company hereby grants to
Employee, as of the date set forth above, the right and option
(hereinafter called “the Option”) to purchase all or
any part of an aggregate of «Shares» shares of the
Class A Common Stock of the Company, par value $0.01 per share
(the “Common Shares”), at the price of
«Price_» per share (the “Option Price”), on
the terms and conditions set forth herein, which price was equal to
or greater than the fair market value of a Common Share on the date
of grant. The Option Price is subject to adjustment as provided in
this Agreement and the Plan. This Option is intended to be a
nonqualifying stock option that does not qualify as an
“incentive stock option” under Section 422 of the
Internal Revenue Code of 1986, as amended, and regulations
thereunder (the “Code”).
2. Duration and
Exercisability
(a) Subject to Section 2(f)
below and the other terms and conditions set forth herein, this
Option shall vest and may be exercised by Employee in cumulative
installments on the following vesting dates (the “Vesting
Dates”) as follows:
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Cumulative
percentage
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On or after each
of,
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of Common Shares
as to
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the following
dates
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which Option is
exercisable
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10%
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10%
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10%
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10%
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20%
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20%
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20%
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***
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Certain
confidential portions of this exhibit were omitted by means of
redacting a portion of the text. Copies of the exhibit containing
the redacted portions have been filed separately with the
Securities and Exchange Commission subject to a request for
confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act.
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Notwithstanding the foregoing vesting schedule, no portion of the
Option shall be exercisable unless the Company shall have achieved
and sustained its Long Term Goal, as defined, and subject to the
conditions set forth, in Section 2(f) hereof.
(b) During
the lifetime of Employee, the Option shall be exercisable only by
Employee and shall not be assignable or transferable by Employee,
other than by will or the laws of descent and distribution. Without
limiting the generality of the foregoing, this Option may not be
sold, assigned, transferred or otherwise disposed of, or pledged or
hypothecated in any manner (whether by operation of law or
otherwise), and shall not be subject to execution, attachment or
other process. Any assignment, transfer, pledge, hypothecation or
other disposition of this Option or any attempt to make any such
levy of execution, attachment or other process will cause this
Option to terminate immediately, unless the Board of Directors (or
the Committee (as defined in the Plan)), in its sole discretion,
specifically waives applicability of this provision.
(c) This
Option shall terminate, and shall cease to be exercisable, ten
(10) years after the date of this Agreement.
(d) The
Company assumes no responsibility for individual income taxes,
penalties or interest related to grant, exercise or subsequent
disposition of stock pursuant to the Option. Employee should
consult with employee’s personal tax advisor regarding the
tax ramifications, if any, which result from receipt or exercise of
this Option, and subsequent disposition of Common Shares. If in
the Company’s sole discretion it is necessary or appropriate
to collect federal, state or local taxes in connection with the
exercise of any portion of this Option, the Company shall be
entitled to require the payment of such amounts as a condition to
exercise.
(e) In
considering the exercise of this Option, Employee should use the
same independent investment judgment that Employee would use in
making other investments in corporate securities. Among other
things, stock prices will fluctuate over any reasonable period of
time and the price of the Common Shares may go down as well as up.
No guarantees are made as to the future prospects of the Company or
the Common Shares, or that any market for sale of the Common Shares
will develop in the future. No representations are made by the
Company except as contained in any active registration statement at
the time of exercise of the Option, on file with the United States
Securities and Exchange Commission relating to the Option Plan.
***
3. Effect of Termination of
Employment; Death or Disability; Demotion
(a) In
the event that Employee shall cease to be employed by the Company
or its subsidiaries, if any, for any reason other than
Employee’s serious misconduct or Employee’s death or
disability (as such term is defined in Section 3(c) hereof),
Employee shall have the right to exercise the Option at any time
within one (1) month after such termination of employment, to
the extent of the full number of Common Shares Employee was
entitled to exercise under the Option on the date of termination,
subject to the condition that any portion of the Option not
exercised within that period shall terminate and cannot be
exercised following expiration of that period, and that no portion
of the Option shall be exercisable (whether vested
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***
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Certain
confidential portions of this exhibit were omitted by means of
redacting a portion of the text. Copies of the exhibit containing
the redacted portions have been filed separately with the
Securities and Exchange Commission subject to a request for
confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act.
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or unvested) after the expiration of the term of the Option.
Retirement, whether or not pursuant to any retirement or pension
plan of the Company, shall be deemed to be a termination of
employment for all purposes of this Agreement. The termination of
this Option by reason of the cessation of employment shall be
without prejudice to any right or remedy which the Company may have
against the holder.
(b) In
the event that Employee shall cease to be employed by the Company
or its subsidiaries, if any, by reason of Employee’s serious
misconduct during the course of employment, including but not
limited to wrongful appropriation of the Company’s funds,
theft of Company property or other reasons as determined by the
Company, *** the Option shall be terminated and cannot be
exercised, as of the date of the misconduct or violation. The
termination of this Option by reason of the cessation of employment
shall be without prejudice to any right or remedy which the Company
may have against the holder.
(c) If
Employee shall die while in the employ of Company or a subsidiary,
or within one (1) month after termination of employment for any
reason other than serious misconduct, or if employment is
terminated because Employee has become disabled (within the meaning
of Code Section 22(e)(3)) while in the employ of the Company or a
subsidiary, and Employee shall not have fully exercised the Option,
such Option may be exercised at any time within twelve
(12) months after Employee’s death or date of
termination of employment for disability by Employee, personal
representatives or administrators, executor or guardians of
Employee, as applicable, or by any person or persons to whom the
Option is transferred by will or the applicable laws of descent and
distribution, to the extent of the full number of shares the
Employee was entitled to purchase under the Option on the date of
death, termination of employment, if earlier, or date of
termination for such disability and subject to the condition that
any portion of the Option not exercised within that period shall
terminate and cannot be exercised following expiration of that
period, and that no portion of the Option shall be exercisable
after the expiration of the term of the Option.
(d) If
Employee is demoted (but remains employed) by the Company or its
subsidiaries from Employee’s current level (i.e., senior
executive, vice president, director, manager, or other level), this
Option shall continue in force, until otherwise terminated, with
respect to the full number of Common Shares Employee was entitled
to exercise under the Option on the date of demotion, and any
portion of the Option not vested or otherwise not exercisable prior
to the date of demotion shall forever terminate as of the date of
demotion.
4. Manner of
Exercise
(a) The
Option can be exercised only by Employee or other proper party, in
whole Common Shares, by delivering within the Option period written
notice in person or by certified mail to the Company at its
principal office in the form to be provided by the Company at the
time Employee desires to exercise. All notices to the Company shall
be addressed to it at its office at 9601 S. Meridian Blvd.,
Englewood, Colorado, 80112, Attn: Corporate Secretary, or to such
other address or person as the Company may notify Employee from
time to time. The notice shall be signed by the person entitled to
exercise the Option and shall state, among other things, the number
of Common Shares as to which the Option is being exercised, shall
contain a representation and agreement as to the Employee’s
investment intent with respect to the Common Shares in form
satisfactory to the Company’s counsel (unless a Prospectus
meeting applicable requirements of the Securities Act of 1933, as
amended, is in effect for the Common
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***
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Certain
confidential portions of this exhibit were omitted by means of
redacting a portion of the text. Copies of the exhibit containing
the redacted portions have been filed separately with the
Securities and Exchange Commission subject to a request for
confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act.
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Shares being purchased pursuant to exercise of this Option), and be
accompanied by payment in full of the Option price for all shares
designated in the notice. All notices to Employee or other person
or persons then entitled to exercise this Option shall be addressed
to the Employee or such other person(s) at the Employee’s
address specified below, or to such other address as Employee or
such person(s) may notify the Company from time to time.
(b) Employee
shall pay the Option Price for the Common Shares purchased in cash
or by certified or bank cashier’s check.
(c) Unless
notified by the Company to the contrary, the Common Shares issuable
on exercise of the Option shall be deemed issued on the date
specified by the Company, within five (5) business days
following the date that counsel for the Company determines that all
requisite events to issuance of the Common Shares have been
properly completed. The Company shall have no obligation to issue
the Common Shares until it has confirmed to its satisfaction, that
all events requisite for exercise have been accomplished. Any
notice of exercise shall be void and of no effect if all requisite
events have not been accomplished.
(d) The
certificate or certificates for the Common Shares as to which this
Option shall be exercised may be registered only in the name of the
Employee (or if the Employee so requests in the notice exercising
this Option, jointly in the name of the Employee and with a member
of the Employee’s family, with the right of survivorship, or
in the event of the death of Employee, in the name of such survivor
of the Employee as the person with the right to exercise shall
designate).
5. *** Protection of
Confidential Information ***
(c) Employee
further agrees to hold in a fiduciary capacity for the benefit of
the Company all proprietary and confidential information,
knowledge, ideas and data, including, without limitation, customer
lists and the Company’s products, processes and programs
(“Confidential Information”), relating in any way to
the present or future business or activities of the Company for as
long as such Confidential Information remains confidential. All
such Confidential Information, together with all copies thereof and
notes and other references thereto, shall remain the sole property
of the Company. Employee acknowledges that all Confidential
Information is essential to the Company’s present and future
business and activities, and is therefore deemed trade secrets and
is considered proprietary to, and treated as confidential by, the
Company. This obligation of confidentiality is intended to
supplement, and is not intended to supersede or limit, the
obligations of confidentiality Employee has to the Company by
agreement, law or otherwise. If any court of competent jurisdiction
shall determine that the foregoing covenants are invalid in any
respect, the parties hereto agree that any court so holding may
limit such covenant in time, in area or in any other manner which
the court determines such that the covenant shall be enforceable
against Employee. Employee acknowledges that the remedy at law for
any breach of the foregoing covenants will be inadequate, and that
the Company shall be entitled, in addition to any remedy at law, to
preliminary and permanent injunctive relief.
6. Settlement of
Disputes
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***
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Certain
confidential portions of this exhibit were omitted by means of
redacting a portion of the text. Copies of the exhibit containing
the redacted portions have been filed separately with the
Securities and Exchange Commission subject to a request for
confidential treatment pursuant to Rule 24b-2 under the
Securities Exchange Act.
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