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Exhibit 10(v)
NONQUALIFIED STOCK OPTION AGREEMENT
GRANTED TO: Xxxxxxx X. Xxxxx
DATE OF GRANT: February 19, 1999
GRANTED PURSUANT TO: Avatar Holdings Inc. 1997 Incentive and Capital
Accumulation Plan
NUMBER OF UNDERLYING 50,000 shares
SHARES OF COMMON
STOCK:
EXERCISE PRICE: $25 per share
1. This Nonqualified Stock Option Agreement (the "Agreement") is made
and entered into as of February 19, 1999, between Avatar Holdings Inc., a
Delaware corporation (the "Company"), and Xxxxxxx X. Xxxxx ("Employee"). It is
the intent of the Company and Employee that the Option (as defined in Paragraph
2 below) will not qualify as an "incentive stock option" under Section 422 of
the Internal Revenue Code of 1986, as amended from time to time (the "Code").
2. Employee is granted an option by the Incentive Plan Committee of the
Company's Board of Directors (the "Committee") to purchase 50,000 shares of
Common Stock (the "Option") pursuant to the Company's 1997 Incentive and Capital
Accumulation Plan (the "Plan"). Capitalized terms not defined herein shall have
the meanings ascribed thereto in the Plan.
3. The Option's exercise price is $25 per share, such exercise price
being in the judgment of the Committee not less than one hundred percent (100%)
of the Fair Market Value of the Common Stock on the date of grant.
4. Subject to Paragraphs 5 and 6 below, the Option shall be
exercisable, on a cumulative basis, according to the vesting schedule set forth
below:
16,667 shares shall become exercisable and remain exercisable on
February 19, 2000.
16,667 shares shall become exercisable and remain exercisable on
February 19, 2001.
16,666 shares shall become exercisable and remain exercisable on
February 19, 2002.
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5. Subject to Paragraph 6 below, the unexercised portion of the Option,
unless sooner terminated, shall expire on February 19, 2009 (the "Expiration
Date") and, notwithstanding anything contained herein to the contrary, no
portion of the Option may be exercised after such date.
6. If prior to the Expiration Date, Employee's employment with the
Company or any subsidiary corporation terminates, the Option will terminate on
the applicable date as described below, PROVIDED, HOWEVER, that none of the
events described below shall extend the period of exercisability beyond the
Expiration Date:
(a) If the employment of Employee is terminated by reason of
Employee's death either while in the employ of the Company or any subsidiary
corporation, or during the one (1) year period specified in clause (b) below,
the Option shall immediately become fully exercisable and remain exercisable
until the later of the first anniversary of Employee's death or the fifth
anniversary of the Commencement Date (as defined below), and shall be
exercisable by the executor or administrator of the estate of the deceased
Employee or the person or persons to whom the deceased Employee's rights under
the Option shall pass by will or the laws of descent or distribution;
(b) If the employment of Employee is terminated by the Company
due to Employee's "disability" (as defined below), the Option shall immediately
become fully exercisable and remain exercisable until the later of the first
anniversary of the date of termination of employment or the fifth anniversary of
the Commencement Date;
(c) If the employment of Employee is terminated by the Company
"without cause" (as defined below), or is terminated by Employee for "good
reason" (as defined below), the Option to the extent not theretofore exercised
shall remain exercisable in accordance with the terms of this Agreement,
including without limitation, the provisions of Sections 4 and 5 hereof.
(d) If the employment of Employee is terminated (i) by the
Company for "cause" (as defined below) or (ii) by Employee "without good reason"
(as defined below), the Option shall, to the extent not theretofore exercised,
immediately become null and void.
For purposes of this Agreement, the terms "Commencement Date",
"disability", "cause", "without cause", "good reason" and "without good reason"
shall have the meanings ascribed to such terms in Employee's employment
agreement with the Company, dated as of October 6, 1997, as amended from time to
time.
7. Employee may exercise the Option regardless of whether any other
option that Employee has been granted by the Company remains unexercised. In no
event may Employee
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exercise the Option for a fraction of a share or for less than 100 shares unless
the number purchased is the remaining balance for which the Option is then
exercisable.
8. The Option's exercise price shall be paid by Employee on the date
the option is exercised, in full in cash.
9. The Company may withhold from sums due or to become due to Employee
from the Company an amount necessary to satisfy its obligation to withhold taxes
incurred by reason of the issuance or disposition of shares pursuant to the
Option, or may require Employee to reimburse the Company in such amount.
10. Employee shall not have any of the rights of a shareholder with
respect to the shares of Common Stock underlying the Option while the Option is
unexercised.
11. Any exercise of this Option shall be in writing addressed to the
Corporate Secretary of the Company at the principal place of business of the
Company, specifying the Option being exercised and the number of shares to be
purchased, accompanied by payment therefor.
12. This Option shall not be transferable otherwise than by will or the
laws of descent and distribution, and shall be exercisable, during Employee's
lifetime, only by Employee. Notwithstanding the foregoing, this Option may be
transferred by Employee solely to Employee's spouse, siblings, parents, children
and grandchildren or trusts for the benefit of such persons or partnerships,
corporations, limited liability companies or other entities owned solely by such
persons, including trusts for such persons, subject to any restriction included
in this Agreement.
13. If the Company, in its sole discretion, shall determine that it is
necessary, to comply with applicable securities laws, the certificate or
certificates representing the shares purchased pursuant to the exercise of the
Option shall bear an appropriate legend in form and substance, as determined by
the Company, giving notice of applicable restrictions on transfer under or in
respect of such laws.
14. The Company agrees that at the time of exercise of the Option it
will use reasonable efforts in good faith to have an effective Registration
Statement on Form S-8 under the Securities Act of 1933, as amended (the "Act"),
which includes a prospectus that is current with respect to the shares subject
to the Option. Employee covenants and agrees with the Company that if, at the
time of exercise of the Option, there does not exist a Registration Statement on
an appropriate form under the Act, which Registration Statement shall have
become effective and shall include a prospectus that is current with respect to
the shares subject to the Option, (i) that he or she is purchasing the shares
for his or her own account and not with a view to the resale or distribution
thereof, (ii) that any subsequent offer for sale or
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sale of any such shares shall be made either pursuant to (x) a Registration
Statement on an appropriate form under the Act, which Registration Statement
shall have become effective and shall be current with respect to the shares
being offered and sold, or (y) a specific exemption from the registration
requirements of the Act, but in claiming such exemption, Employee shall, prior
to any offer for sale or sale of such shares, obtain a favorable written opinion
from counsel for or approved by the Company as to the applicability of such
exemption and (iii) that Employee agrees that the certificates evidencing such
shares shall bear a legend to the effect of the foregoing.
15. This Agreement is subject to all terms, conditions, limitations and
restrictions contained in the Plan, which shall be controlling in the event of
any conflicting or inconsistent provisions.
16. This Agreement is not a contract of employment and the terms of
Employee's employment shall not be affected hereby or by any agreement referred
to herein except to the extent specifically so provided herein or therein.
Nothing herein shall be construed to impose any obligation on the Company to
continue Employee's employment, and it shall not impose any obligation on
Employee's part to remain in the employ of the Company.
17. Employee acknowledges and agrees that neither the Company, its
shareholders nor its directors and officers, has any duty or obligation to
disclose to Employee any material information regarding the business of the
Company or affecting the value of the Common Stock before or at the time of a
termination of the employment of Employee by the Company, including, without
limitation, any information concerning plans for the Company to make a public
offering of its securities or to be acquired by or merged with or into another
firm or entity.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first written above.
AVATAR HOLDINGS INC.
By: /s/ Xxxxxx X. Xxxxxx
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Name: Xxxxxx Xxxxxx
Title: Chief Executive Officer
ACCEPTED:
/s/ Xxxxxxx X. Xxxxx
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Xxxxxxx X. Xxxxx
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