Exhibit 10.66
STOCK OPTION AGREEMENT made as of the 20th day of July, 2000 between
NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC., a New York corporation (the
"Company"), and Xxxx Xxxxxx (the "Optionee").
WHEREAS, the Optionee is an employee of the Company or a subsidiary
thereof;
WHEREAS, the Company desires to provide to the Optionee an additional
incentive to promote the success of the Company;
NOW, THEREFORE, in consideration of the foregoing, the Company hereby
grants to the Optionee (the "Grant") the right and option to purchase Common
Shares of the Company under and pursuant to the terms and conditions of the 1999
Stock Option Plan (the "Plan") and upon and subject to the following terms and
conditions:
1. GRANT OF OPTION. The Company hereby grants to the Optionee the right and
option (the "Option") to purchase up to Forty Thousand (40,000) Common Shares of
the Company (the "Option Shares") during the following periods:
(a) All or any part of Eight Thousand (8,000) Common Shares ("Option Share
Portion (a)") may be purchased during the period commencing July 20, 2001 and
terminating at 5:00 P.M. on July 20, 2006 (the "Expiration Date").
(b) All or any part of Eight Thousand (8,000) Common Shares ("Option Share
Portion (b)") may be purchased during the period commencing on July 20, 2002 and
terminating at 5:00 P.M. on the Expiration Date.
(c) All or any part of Eight Thousand (8,000) Common Shares ("Option Share
Portion (c)") may be purchased during the period commencing on July 20, 2003 and
terminating at 5:00 P.M. on the Expiration Date.
(d) All or any part of Eight Thousand (8,000) Common Shares ("Option Share
Portion (d)") may be purchased during the period commencing on July 20, 2004 and
terminating at 5:00 P.M. on the Expiration Date.
(e) All or any part of Eight Thousand (8,000) Common Shares ("Option Share
Portion (e)") may be purchased during the period commencing on July 20, 2005 and
terminating at 5:00 P.M. on the Expiration Date.
2. NATURE OF OPTION. Such Options to purchase the Option Shares are
intended to meet the requirements of Section 422 of the Internal Revenue Code of
1986, as amended, relating to "incentive stock options".
3. EXERCISE PRICE. The exercise price of each of the Option Shares shall be
Four Dollars and no cents ($4.00) (the "Option Price"). The Company shall pay
all original issue or transfer taxes on the exercise of the Option.
4. EXERCISE OF OPTIONS. The Option shall be exercised in accordance with
the provisions of the Plan. As soon as practicable after the receipt of notice
of exercise (in the form annexed hereto as Exhibit A) and payment of the Option
Price as provided for in the Plan, the Company shall tender to the Optionee
certificates issued in the Optionee's name evidencing the number of Option
Shares covered thereby.
5. CAPITAL ADJUSTMENT.
(a) If the Company is separated or reorganized, or merged or consolidated
with another corporation, there shall be substituted for the Shares issuable
upon exercise of the outstanding Options an appropriate number of shares of each
class of stock, other securities or other assets of the separated or
reorganized, or merged or consolidated corporation which were distributed to the
shareholders of the Company in respect of such Shares; provided, however, that
the Option may be exercised in full by the Optionee as of the effective date of
any such separation, reorganization, merger, or consolidation of the Company
without regard to the installment exercise provisions of Paragraph 1, by the
Optionee giving notice in writing to the Company of his intention to so
exercise.
(b) If the Company is liquidated or dissolved then all outstanding portions
of the Option may be exercised in full by the Optionee as of the effective date
of any such liquidation or dissolution of the Company without regard to the
installment exercise provisions of Paragraph 1, by the Optionee giving notice in
writing to the Company of his intention to so exercise.
(c) If the outstanding Shares of Common Stock shall at any time be changed
or exchanged by declaration of a stock dividend, stock split, combination or
exchange of shares, recapitalization, extraordinary dividend payable in stock of
a corporation other than the Company, or otherwise in cash, or any other like
event by or of the Company, and as often as the same shall occur, then the
number, class and kind of Shares subject to this Option and the Purchase Price
for such Shares shall be appropriately and equitably adjusted so as to maintain
the proportionate number of Shares without changing the aggregate Purchase
Price; provided, however, no adjustment shall be made by reason of the
distribution or subscription rights on outstanding stock.
6. TRANSFERABILITY. The Option shall not be transferable other than by will
or the laws of descent and distribution and, during the Optionee's lifetime,
shall not be exercisable by any person other than the Optionee.
7. INCORPORATION BY REFERENCE. The terms and conditions of the Plan are
hereby incorporated by reference and made a part hereof.
8. NOTICES. Any notice or other communication given hereunder shall be
deemed sufficient if in writing and hand delivered or sent by registered or
certified mail, return receipt requested, addressed to the Company, 00 Xxxxxx
Xxxx Xxxxx, Xxxx Xxxxxxxxxx, Xxx Xxxx 00000, Attention: Secretary and to the
Optionee at the address indicated below. Notices shall be deemed to have been
given on the date of hand delivery or mailing, except notices of change of
address, which shall be deemed to have been given when received.
9. BINDING EFFECT. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective legal representatives,
successors and assigns.
10. ENTIRE AGREEMENT. This Agreement, together with the Plan, contains the
entire understanding of the parties hereto with respect to the subject matter
hereof and may be modified only by an instrument executed by the party sought to
be charged.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.
NATIONAL MEDICAL HEALTH CARD
SYSTEMS, INC.
By:
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Signature of Optionee
Xxxx Xxxxxx
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Name of Optionee
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Address of Optionee
EXHIBIT A
NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.
OPTION EXERCISE FORM
The undersigned hereby irrevocably elects to exercise the within Option
dated ____________, 2000 to the extent of purchasing _________ Common Shares of
National Medical Health Card Systems, Inc. The undersigned hereby makes a
payment of $_________ in payment therefor.
Xxxx Xxxxxx
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Name of Optionee
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Signature of Optionee
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Address of Holder
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Date
