Exhibit 99.54
THIS OPTION AGREEMENT is made on 20th December 0000
X X X X X X X
1. PARAGON SOFTWARE (HOLDINGS) LIMITED whose registered office is at
Xx-Xxx Xxxxxx Xxxxxxxxx Xxxx Xxxxxxx XX00 0XX (the "Company"), and
2. XXXXX XXXXX of 00 Xxxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxxxxxx XX00 0XX
("the Employee")
WHEREAS
(A) The Employee is an employee of the Company and the Company is
willing to grant an option to the Employee in respect of the Option
Shares (as defined below) on the following terms and conditions.
(B) The Company has an authorised share capital of (pound)5,000,000
comprising 44,197,222 ordinary shares of 10p each, of which
10,000,000 have been issued, 1,441,650 "A" preferred shares of 10p
each, all of which have been issued, 1,633,980 "B" preferred shares
of 10p each, all of which have been issued, and 2,727,148 "C"
preferred shares of 10p each, all of which have been issued. The
"A","B" and "C" preferred shares may be converted into ordinary
shares as set out in Article 2.6 of the Articles of Association of
the Company.
NOW IT IS HEREBY AGREED as follows:
1. Interpretation
1.1 In this Agreement the following words and expressions shall (save
where the context otherwise requires) have the following meanings:
1.1.1 "Auditors" the auditors of the Company from time to
time.
1.1.2 "Board" the board of directors of the Company from
time to time.
1.1.3 "Control" the meaning given by Section 840, Income and
Corporation Taxes Xxx 0000.
1.1.4 "Group Company" any company which is a holding company or
subsidiary of the Company or a subsidiary of
a holding company of the Company.
1.1.5 "Option" the right granted to the Employee in respect
of the Option Shares by clause 2.
1.1.6 "Option Shares" 4,000 Shares subject to variation pursuant to
clause 6.
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1.1.7 "Shares" ordinary 10p shares of the Company.
1.1.8 "Subscription Price" 10p per Share subject to variation
pursuant to clause 6.
1.2 Headings are for ease of reference only and shall not affect the
construction of this Agreement.
1.3 Except in so far as the context otherwise requires:
1.3.1 words denoting the singular shall include the plural and
vice versa; and
1.3.2 the reference to any enactment shall be construed as a
reference to that enactment as from time to time amended,
extended or re-enacted.
1.4 Words defined in the Companies Xxx 0000 shall have the same meaning
in this Agreement unless the context otherwise requires.
2 Grant of Option
In consideration of the sum of (pound)1 (receipt of which is
acknowledged by the Company) the Company grants the Employee the
right to subscribe for the Option Shares or any of them (in amounts
not less than 1,000 shares each) from time to time at the
Subscription Price upon and subject to the terms set out below.
3 Right to Exercise Option
3.1 The right to exercise the Option shall terminate forthwith upon the
Employee ceasing to be an employee of a Group Company except in the
following cases:
3.1.1 if the Employee dies the Option may be exercised by his
personal representatives within twelve months of the date of
death to the extent to which it could have been (but had not
been) exercised under clause 3.4 on such date;
3.1.2 if the Employee ceases to be an employee of a Group Company by
reason of:
3.1.2.1 injury or disability (evidenced to the satisfaction
of the Board); or
3.1.2.2 retirement at state or contractual retirement age
including late retirement; or
3.1.2.3 termination of employment (other than proper
dismissal upon his failure to comply with the terms
of his employment) provided that the Employee has
been an employee of a Group Company for not less
than two years;
the Option may be exercised within six months of the date of
the Employee so ceasing to be such an employee to the extent
to which it could have been (but had not been) exercised
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under clause 3.4 on such date.
3.2 The right to exercise the Option shall terminate forthwith upon the
Employee being adjudicated bankrupt.
3.3 The Option shall be personal to the Employee and may not be
transferred, assigned or charged.
3.4 Except where the Option is exercised pursuant to clause 5 the
Option may only be exercised as follows:
3.4.1 as to the first 25% of the Option Shares after 20th
December, 2000;
3.4.2 as to a further 25% of the Option Shares after 20th
December, 2001;
3.4.3 as to a further 25% of the Option Shares after 20th
December, 2002;
3.4.4 as to the balance of 25% of the Option Shares after 20th
December, 2003.
3.5 The Option may not be exercised within six months of a previous
exercise of the Option but such period shall be reduced to three
months if the Employee shall have ceased to be an employee of a
Group Company (or have been given or have given notice of
termination of his employment) but remains entitled under the terms
of this Agreement to exercise the Option.
3.6 The Option shall lapse on the earliest of the following dates:
3.6.1 the seventh anniversary of the date of this Agreement.
3.6.2 the date on which the Employee ceases to be an employee of a
Group Company in circumstances other than those specified in
clause 3.1.
3.6.3 the date on which a resolution is passed or an order is made
for the Company to be wound up.
3.6.4 the date on which the Employee is adjudicated bankrupt.
3.6.5 the date on which the Employee does or omits to do anything
as a result of which act or omission he ceases to be the
legal and beneficial owner of the Option.
3.7 The Option shall lapse:
3.7.1 as to 66% of the Option Shares if the Employee becomes
entitled to exercise the Option in part pursuant to
sub-paragraph (i) of Clause 5.1.2 unless such options are
assumed by an acquirer.
3.7.2 as to 33% of the Option Shares if the Employee becomes
entitled to exercise the Option in part pursuant to
sub-paragraph (ii) of Clause 5.1.2 unless such options are
assumed by an acquirer.
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4 Exercise of Option
4.1 The Option shall be exercisable in whole or in part by notice in
writing given by the Employee to the Company. The notice of
exercise of the Option shall be accompanied by a cheque in favour
of the Company for the aggregate of the Subscription Price payable.
However, notwithstanding any other provision contained in this
agreement, the Employee shall not be entitled to exercise the
Option until he has satisfied the Board as to his ability
(including if it so decides putting the Company (or his employer
company if it is a Group Company) in sufficient funds (the amount
of which shalt be determined by the Company)) to meet any
obligation of the Company (or such employer company) to account for
income tax or other amounts that are chargeable under the PAYE
system (or other withholding tax system in any other relevant
jurisdiction) in relation to the exercise of the Option. The
Company shall use reasonable endeavours (with the Employee's
assistance if required) to agree with the Inland Revenue (or other
relevant tax authority) the amount of any such income tax or
liability in advance of any Shares being issued to the Employee
following the exercise of the Option. If any funds made available
are less than or greater than the amount needed to meet any
obligation of either such company to account for income tax or
other amounts so chargeable in relation to the exercise of the
Option, a payment shall be made forthwith by the Employee to such
company, or vice versa, as appropriate.
4.2 Within 30 days of receipt by the Company of a notice of exercise
under clause 4.1 and a cheque for the appropriate amount, the
Company shall allot the Shares in respect of which the Option has
been validly exercised and shall issue a definitive certificate in
respect of the Shares allotted. Save for any rights determined by
reference to a record date on or before the date of allotment such
Shares shall rank pari passu and as one class with the other issued
Shares.
4.3 In respect of all Shares issued pursuant to this Agreement at a
time when the Shares are dealt in on a recognised or designated
investment exchange (other than The London Stock Exchange) the
Company shall make application for the grant of permission to deal
in such Shares on the said exchange and in respect of all Shares
issued pursuant to this Agreement at a time when the Shares are
listed on The London Stock Exchange the Company shall make
application to the Council of The London Stock Exchange for such
Shares to be admitted to the Official List.
5 Takeovers mergers etc
5.1 If any person obtains Control of the Company as a result of making:
5.1.1 a general offer to acquire the whole of the issued ordinary
share capital of the Company which is made on a condition
such that if it is satisfied the person making the offer
will have Control of the Company; or
5.1.2 a general offer to acquire all the Shares;
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the Option may be exercised on the basis set out below within one
month of the date on which the person making the offer has obtained
Control of the Company and any condition subject to which the offer
is made has been satisfied:
(i) as to 34% only of the Option Shares if the Employee has been
employed by the Company for less than six months on such date;
(ii) as to 67% only of the Option Shares if the Employee has been
employed by the Company for at least six months but less
than eighteen months on such date; and
(iii) as to 100% of the Option Shares if the Employee has been
employed by the Company for at least eighteen months on such
date.
5.2 If under the Section 425 Companies Act 1985 the Court sanctions a
compromise or arrangement proposed for the purposes or in
connection with a scheme for the reconstruction of the Company or
its amalgamation with any other company or companies, the Option
may be exercised within one month of the Court sanctioning the
compromise or arrangement.
5.3 If any person becomes bound or entitled to acquire shares in the
Company under the Sections 428 to 430F Companies Xxx 0000 the
Option may be exercised at any time when that person remains so
bound or entitled.
5.4 For the purposes of clause 5.1 a person shall be deemed to have
obtained Control of the Company if it or he and others acting in
concert with him have together obtained Control of the Company.
6 Variation of share capital
6.1 In the event of any capitalisation, consolidation, sub-division or
reduction of the share capital of the Company or any rights issue
or other variation of capital (other than a fresh issue of shares)
taking place after the date of this Agreement the number of Option
Shares and/or the Subscription Price shall be varied in such manner
(if at all) as the Board shall determine and the Auditors shall
confirm in writing to be in their opinion fair and reasonable
provided that no variation shall be made which would result in the
Subscription Price for a Share being less than its par value. The
Company shall notify the Employee of any such variation.
7 Relevance of contract of employment
7.1 The grant of an Option will not form part of the Employee's
entitlement to remuneration or benefits pursuant to his contract of
employment. The rights and obligations of the Employee under the
terms of his contract of employment with the Company shall not be
affected by the grant of an Option.
7.2 The rights granted to the Employee upon the grant of an Option
shall not afford the Employee any rights or additional rights to
compensation or damages in consequence of the loss or termination
of his office or employment with the Company for any reason
whatsoever.
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7.3 The Employee shall not be entitled to any compensation or damages
for any loss or potential loss which he may suffer by reason of
being or becoming unable to exercise an Option in consequence of
the loss or termination of his office or employment with the
Company for any reason other than as provided for in clause 3.1.
8 General
8.1 The Company shall at all times keep available sufficient authorised
and unissued Shares to satisfy the exercise to the full extent
still possible of the Option taking account of any other
obligations of the Company to issue shares of any kind.
8.2 No variation to the terms of this Agreement shall be effective
unless agreed in writing by the parties.
8.3 Any notice to be given by the Company to the Employee may be
personally delivered or sent by ordinary post to his last known
address and where a notice is sent by post to his last known
address it shall be deemed to have been received 48 hours after
having been put into the post properly addressed and stamped.
8.4 Any notice to be given by the Employee to the Company shall be
delivered or sent to the Company at its registered office and shall
be effective upon receipt.
EXECUTED AS A DEED by ) /s/ Xxxxx Xxxxxx
PARAGON SOFTWARE (HOLDINGS) )
LIMITED in the presence of: )
Director /s/ X.X. Xxxxx
Director/Secretary
EXECUTED A DEED by the said ) /s/ Xxxxx Xxxxx
XXXXX XXXXX )
in the presence of: ) /s/ Xxxx Chicken
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