1. | Terms and Conditions: This grant of stock options (the “Option Award”) is made under Ingevity Corporation 2016 Omnibus Incentive Plan, (the “Plan”), and is subject in all respects to the terms of the Plan. All terms of the Plan are hereby incorporated into these terms and conditions (the “Terms and Conditions”) by reference. In the event of a conflict between one or more provisions of these Terms and Conditions and one or more provisions of the Plan, the provisions of the Plan shall govern. Each capitalized term not defined herein has meaning assigned to such term in the Plan. |
2. | Confirmation of Grant: Effective as of (Insert Grant Date) (the “Award Date”), Ingevity Corporation (the “Company”) granted the individual whose name is set forth in the notice of grant (the “Grantee”) a number of options to purchase a specified number of shares of common stock of the Company as set forth in the Grantee’s notice of grant. The Option Award is granted in the form of a Nonqualified Stock Option and is not an Incentive Stock Option. By accepting the Option Award, the Grantee acknowledges and agrees that the Option Award is subject to these Terms and Conditions and the terms of the Plan. |
3. | Exercise Price: The exercise price of any shares of Common Stock subject to the Option Award shall be the Fair Market Value of a share of Common Stock on the Award Date. |
4. | Award Term: The Option Award shall expire on the tenth anniversary of the Award Date (the “Award Term”) unless earlier terminated in accordance with these Terms and Conditions. |
5. | Vesting: Subject to Sections 7 and 9 of these Terms and Conditions, the Option Award shall vest on (Insert Vesting Date) (the “Vesting Date”), provided that the Grantee continues to be employed by the Company through the vesting date. |
6. | Exercise Method: The Company will provide instructions to the Grantee for how to exercise the Option Award, pay the exercise price and pay applicable taxes. |
7. | Automatic Forfeiture: The Option Award, whether vested or unvested, will automatically be forfeited and all rights of the Grantee to the Option Award shall terminate under the following circumstances: |
a. | The Grantee’s employment is terminated by the Company for Cause. |
b. | The Grantee’s employment is terminated for “Poor Performance,” which for purposes of these Terms and Conditions shall mean the continuing failure by the Grantee to perform the Grantee’s duties in any material respect, as determined in the sole discretion of the Company, provided, however, that the Grantee shall be given notice and an opportunity effectuate a cure as determined by the Company in its sole discretion. |
c. | The Grantee breaches any confidentiality, non-solicitation or non-competition covenant set forth on the attached Exhibit A or in any restrictive covenants agreement between the Grantee and the Company or an affiliate. |
d. | The Committee requires recoupment of the Option Award in accordance with any recoupment policy adopted or amended by the Company from time to time. |
8. | Restrictive Covenants: By accepting the Option Award, the Grantee agrees to comply with the confidentiality, non-solicitation and non-competition covenants set forth on the attached Exhibit A. If the Grantee has a written restrictive covenants agreement with the Company or an affiliate, the Grantee also agrees to continue to comply with the obligations under such restrictive covenants agreement as a condition of grant of the Option Award. |
9. | Termination of Employment: Any Option Award shall be subject to the following provisions relating to the exercise of the Option Award subsequent to termination of employment, subject to Section 7 above: |
a. | Involuntary Termination. In the event of an involuntary termination of the Grantee’s employment with the Company or any of its affiliates without Cause or Poor Performance on or after the first anniversary of the Award Date, a number of options (rounded up to the nearest whole number) shall vest such that the ratio of (i) the total number of options subject to the Option Award that have vested after giving effect to this provision to (ii) the total number of options subject to the Option Award on the Award Date equals the ratio of (I) the number of completed full months from the Award Date to the date of the Grantee’s termination of employment to (II) 36, and any remaining portion of the Option Award shall be forfeited. The right to exercise such vested portion of the Option Award shall expire on the earlier of (x) the two year anniversary of the date of such termination and (y) the expiration of the Award Term. |
b. | Disability. In the event of a termination of the Grantee’s employment due to Disability, the unvested portion of the Option Award shall immediately vest in full and the right to exercise the vested portion of the Option Award shall expire on the earlier of (i) the three year anniversary of the date of such termination and (ii) the expiration of the Award Term. “Disability” shall mean permanently and totally disabled under the terms of the Company’s qualified retirement plans. |
c. | Retirement. In the event of a termination of the Grantee’s employment upon or following the date the Grantee reaches age 55 (with 20 years of service) or age 65, the unvested portion of the Option Award shall immediately vest in full and the right to exercise the vested portion of the Option Award shall expire on the expiration of the Award Term. |
d. | Death. In the event of a termination of the Grantee’s employment due to death, the unvested portion of the Option Award shall immediately vest and the right to exercise the vested portion of the Option Award shall expire on the earlier of (i) the third anniversary of the date of death and (ii) the expiration of the Award Term. In the case |
e. | Termination for Any Other Reason. If the Grantee’s employment is terminated by the Grantee or the Company or one of its affiliates for any other reason other than an involuntary termination without Cause, death, disability or retirement, the unvested portion of the Option Award shall be forfeited and the right to exercise the vested portion of the Option Award shall expire on the earlier of (i) ninety (90) days after the date of termination and (ii) the expiration of the Award Term. |
10. | Leave of Absence: In the event that a Grantee is on an approved leave of absence, the Grantee’s Option Award shall continue in accordance with its terms during his or her leave of absence, subject to the Committee’s discretion. |
11. | Change of Control: In the event of a Change of Control, the terms and conditions of Section 14 of the Plan shall apply; provided, however, that upon the Grantee’s disability, retirement or death following a Change of Control, the Option Award, if assumed in the Change of Control, shall vest and remain exercisable as provided in Sections 9.b, 9.c and 9.d of these Terms and Conditions in addition to the accelerated vesting provided for in the Plan. |
12. | Transferability: The Option Award may not be assigned or transferred by the Grantee, except by will or the laws of descent and distribution or as otherwise permitted by the Compensation Committee. |
13. | Tax Withholding: The Grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the Option Award. The Grantee may satisfy any tax withholding obligations arising with respect to the Option by (a) paying the cash necessary to satisfy the tax withholding by authorizing the Company to either deduct such amount from the Grantee’s brokerage account or withhold such amount through payroll, (b) authorizing the Company to withhold shares of Common Stock otherwise issuable as part of the Option Award, as applicable, (c) tendering shares of Common Stock previously acquired to the Company, or (d) authorizing the Company to sell a portion of shares of Common Stock otherwise issuable as part of the Option Award in an amount necessary to generate sufficient cash to satisfy the withholding obligation, as applicable. If the Company receives no instruction from the Grantee with respect to alternative means to satisfy his or her tax withholding obligation, the obligation shall be satisfied by withholding shares of Common Stock from the shares of Common Stock otherwise issuable as part of the Option Award. Any withholding of shares of Common Stock shall not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and foreign tax liabilities. |
14. | No Right to Continued Employment. The Grantee understands and agrees that these Terms and Conditions does not impact the right of the Company or any of its affiliates employing the Grantee to terminate or change the terms of the Grantee’s employment at any time for any |
15. | Captions. Captions provided herein are for convenience only and are not to serve as a basis for interpretation or construction of these Terms and Conditions. |
16. | Severability. In the event that any provision in these Terms and Conditions shall be held invalid or unenforceable for any reason, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of these Terms and Conditions. |