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ŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻŻ Calgary, Alberta |
OIL & GAS EMPLOYEE STOCK OPTION PLAN The oil and gas industry is highly dependent upon the individuals who undertake the work, such that it is extremely important that the contractual arrangements between those individuals and the company need to be clearly defined and established. Such a contract needs to be appropriately negotiated and drafted such that each side is properly protected and capable of realize the most from this particular contract, as exemplified in an employee stock option plan (while having the capacity to resolve problems and settle disputes). What should be noted is that employee stock option plans need to be particularized to the particular corporate culture and related business objectives. Particular aspects seen in such stock option plans have included: "The purpose of the Stock Option Plan is to provide an incentive to the directors, officers, employees,consultants and other personnel of Company or any of its subsidiaries to achieve the longer-term objectives of Company; to give suitable recognition to the ability and industry of such persons who contribute materially to the success of Company; and to attract to and retain in the employ of Company or any of its subsidiaries, persons of experience and ability, by providing them with the opportunity to acquire an increased proprietary interest in Company." "The Board of Directors may at any time and from time to time designate those Optionees who are to be granted an Option pursuant to the Plan and grant an Option to such Optionee. Subject to Exchange Policies and the limitations contained herein, the Board of Directors is authorized to provide for the grant and exercise of Options on such terms (which may vary as between Options) as it shall determine. No Option shall be granted to any person except upon recommendation of the Board of Directors. A person who has been granted an Option may, if he is otherwise eligible and if permitted by Exchange Policies, be granted an additional Option or Options if the Board of Directors shall so determine. Subject to Exchange Policies, Company shall represent that the Optionee is a bona fide Employee, Consultant or Management Company Employee (as such terms are defined in Exchange Policies) in respect of Options granted to such Optionees." "A written agreement will be entered into between Company and each Optionee to whom an Option is granted hereunder, which agreement will set out the number of Class A Common Shares subject to option, the exercise price and any other terms and conditions approved by the Board of Directors, all in accordance with the provisions of this Stock Option Plan (the 'Stock Option Agreement'). The Stock Option Agreement will be in such form as the Board of Directors may from time to time approve, and may contain such terms as may be considered necessary in order that the Option will comply with any provisions respecting options in the income tax or other laws in force in any country or jurisdiction of which Optionee may from time to time be a resident or citizen or the rules of any regulatory body having jurisdiction over Company." "If an Optionee ceases to be a director, officer, employee or consultant of Company or its subsidiaries for any reason other than death, Optionee may, but only within thirty days after Optionees ceasing to be a director, officer, employee or consultant (or thirty days in the case of an Optionee engaged in Investor Relations Activities) or prior to the expiry of the Option Period, whichever is earlier, exercise any Option held by Optionee, but only to the extent that Optionee was entitled to exercise the Option at the date of such cessation. For greater certainty, any Optionee who is deemed to be an employee of Company pursuant to any medical or disability plan of Company shall be deemed to be an employee for the purposes of the Stock Option Plan." For more information on the legal services of Neufeld Legal P.C. with respect to employment-related contracts or to schedule an appointment, contact us at Christopher@OilGasLawyer.ca or 403-400-4092. * * * * * Employment-related agreements pertaining to oil and gas sector: Executive Employment Agreement |
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