EXHIBIT 10.6

ACT TELECONFERENCING, INC.

2004 EQUITY INCENTIVE PLAN, AS AMENDED

Incentive Stock Option Agreement

 

Name of Optionee: No. of Shares Covered:    Date of Grant: Exercise Price Per
Share:    Expiration Date: Exercise Schedule (Cumulative):   

 

Date(s) of Exercisability

  

No. of Shares as to Which

Option Becomes Exercisable

     

This Incentive Stock Option Agreement (this “Agreement”) between ACT
Teleconferencing, Inc., a Colorado corporation (the “Company”), and the optionee
identified above (the “Optionee”) is effective as of the date of grant specified
above.

Recitals

WHEREAS, the Company maintains the ACT Teleconferencing, Inc. 2004 Equity
Incentive Plan (the “Plan”); and

WHEREAS, pursuant to the Plan, the Board of Directors of the Company (the
“Board”) or a committee of two or more directors of the Company (the
“Committee”) appointed by the Board administers the Plan and has the authority
to determine the awards to be granted under the Plan (if the Board has not
appointed a committee to administer the Plan, then the Board shall constitute
the Committee); and

WHEREAS, the Committee has determined that the Optionee is eligible to receive
an award under the Plan in the form of an incentive stock option (the “Option”);

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NOW, THEREFORE, the Company hereby grants this Option to the Optionee under the
terms and conditions as follows.

Terms and Conditions*

 

1. Grant. The Optionee is granted this Option to purchase the number of Shares
specified at the beginning of this Agreement.

 

2. Exercise Price. The price to the Optionee of each Share subject to this
Option shall be the exercise price specified at the beginning of this Agreement
(which price shall not be less than the Fair Market Value as defined in
paragraph 7 of the Plan as of the date of grant or, if the Optionee owns or is
deemed to own stock possessing more than 10% of the combined voting power of all
classes of stock of the Company, 110% of the Fair Market Value as of the date of
grant).

 

3. Incentive Stock Option. This Option is intended to be an “incentive stock
option” within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”).

 

4. Exercise Schedule. This Option shall vest and become exercisable as to the
number of Shares and on the dates specified in the exercise schedule at the
beginning of this Agreement. The exercise schedule shall be cumulative; thus, to
the extent this Option has not already been exercised and has not expired,
terminated or been cancelled, the Optionee or the person otherwise entitled to
exercise this Option as provided herein may at any time, and from time to time,
purchase all or any portion of the Shares then purchasable under the exercise
schedule.

This Option may also be exercised in full (notwithstanding the exercise
schedule) under the circumstances described in Section 8 of this Agreement if it
has not expired prior thereto.

 

5. Expiration. This Option shall expire at 5:00 p.m. Denver, Colorado time on
the earliest of:

 

  (a) The expiration date specified at the beginning of this Agreement (which
date shall not be later than ten years after the date of grant or, if the
Optionee owns or is deemed to own stock possessing more than 10% of the combined
voting power of all classes of stock of the Company, five years after the date
of grant);

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* Unless the context indicates otherwise, terms that are not defined in this
Agreement shall have the meaning set forth in the Plan as it currently exists or
as it is amended in the future.

 

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  (b) The last day of the period following the termination of employment of the
Optionee during which this Option can be exercised (as specified in Section 7 of
this Agreement); or

 

  (c) The date (if any) fixed for cancellation pursuant to Section 8 of this
Agreement.

In no event may anyone exercise this Option, in whole or in part, after it has
expired, notwithstanding any other provision of this Agreement.

 

6. Procedure to Exercise Option.

Notice of Exercise. This Option may be exercised by delivering written notice of
exercise to the Company at the principal executive office of the Company, to the
attention of the Company’s Chief Financial Officer, in the form attached to this
Agreement. The notice shall state the number of Shares to be purchased, and
shall be signed by the person exercising this Option. If the person exercising
this Option is not the Optionee, he/she also must submit appropriate proof of
his/her right to exercise this Option.

Tender of Payment. Upon giving notice of any exercise hereunder, the Optionee
shall provide for payment of the purchase price of the Shares being purchased
through one or a combination of the following methods:

 

  (a) Cash;

 

  (b) Cancellation of indebtedness;

 

  (c) By delivery to the Company of unencumbered Shares having an aggregate Fair
Market Value (as defined in paragraph 7 of the Plan) on the date of exercise
equal to the purchase price of such Shares;

 

  (d) By a reduction in the number of Shares delivered to the Optionee upon
exercise, such number of Shares having an aggregate Fair Market Value on the
date of exercise equal to the purchase price of such Shares; or

 

  (e) To the extent permitted by law, a broker-assisted cashless exercise in
which the Optionee irrevocably instructs a broker to deliver proceeds of a sale
of all or a portion of the Shares to be issued pursuant to the exercise to the
Company in payment of the purchase price of such Shares.

Notwithstanding the foregoing, the Optionee shall not be permitted to pay any
portion of the purchase price with Shares if the Committee, in its sole
discretion, determines that payment in such manner is undesirable.

 

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Delivery of Certificates. As soon as practicable after the Company receives the
notice and purchase price provided for above, it shall deliver to the person
exercising this Option, in the name of such person, a certificate or
certificates representing the Shares being purchased. The Company shall pay any
original issue or transfer taxes with respect to the issue or transfer of the
Shares and all fees and expenses incurred by it in connection therewith. All
Shares so issued shall be fully paid and nonassessable. Notwithstanding anything
to the contrary in this Agreement, the Company shall not be required to issue or
deliver any Shares prior to the completion of such registration or other
qualification of such Shares under any state or federal law, rule or regulation
as the Company shall determine to be necessary or desirable.

 

7. Employment Requirement. This Option may be exercised only while the Optionee
remains employed with the Company or a parent or subsidiary thereof, and only if
the Optionee has been continuously so employed since the date of this Agreement;
provided that:

 

  (a) This Option may be exercised for three months following the day the
Optionee’s employment by the Company ceases if such cessation of employment is
for a reason other than death or disability, but only to the extent that it was
exercisable immediately prior to termination of employment.

 

  (b) This Option may be exercised within one year after the Optionee’s
employment by the Company ceases if such cessation of employment is because of
death or disability.

 

  (c) If the Optionee’s employment terminates after a declaration made pursuant
to Section 8 of this Agreement in connection with an Event, this Option may be
exercised at any time permitted by such declaration.

Notwithstanding the above, this Option may not be exercised after it has
expired.

 

8. Acceleration of Option.

Death or Disability. This Option may be exercised in full, regardless of whether
such exercise occurs prior to a date on which this Option would otherwise vest,
upon the death or disability of the Optionee; provided that the Optionee shall
have been continuously employed by the Company or a parent or subsidiary thereof
between the date of this Agreement and the date of such death or disability.

Change in Control. In the event of a Change in Control as defined in paragraph
11 of the Plan, then, without any action by the Committee or the Board, this
Option, to the extent not already exercised in full or otherwise terminated,
expired or canceled, shall become immediately exercisable in full and the
Committee may, as provided in paragraph 11(c) of the Plan, determine that this
Option shall be canceled and make certain cash payments with respect to this
Option.

 

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Event. In the event of an Event as defined in paragraph 12 of the Plan, the
Committee may, but shall not be obligated to:

 

  (a) if the Event is a merger or consolidation or statutory share exchange,
make appropriate provision for the protection of this Option by the substitution
for this Option of options or voting common stock of the corporation surviving
any merger or consolidation or, if appropriate, the parent corporation of the
Company or such surviving corporation, as provided in paragraph 12 of the Plan;
or

 

  (b) at least 20 days prior to the occurrence of the Event, declare, and
provide written notice to the Optionee of the declaration, that this Option,
whether or not then exercisable, shall be canceled at the time of, or
immediately prior to the occurrence of, the Event (unless it shall have been
exercised prior to the occurrence of the Event). In connection with any such
declaration, the Committee may, but shall not be obligated to, cause payment to
be made to the Optionee of cash equal to, for each Share covered by the canceled
Option, the amount, if any, by which the Event Proceeds per Share, as defined in
paragraph 12 of the Plan, exceeds the exercise price per Share covered by this
Option. At the time of any such declaration, this Option shall immediately
become exercisable in full and the Optionee shall have the right, during the
period preceding the time of cancellation of this Option, to exercise this
Option as to all or any part of the Shares covered by this Option. In the event
of a declaration pursuant to this subsection, to the extent this Option has not
been exercised prior to the Event, the unexercised part of this Option shall be
canceled at the time of, or immediately prior to, the Event, as provided in the
declaration. Notwithstanding the foregoing, the holder of this Option shall not
be entitled to the payment provided for in this subsection if this Option shall
have expired pursuant to Section 5 above.

Discretionary Acceleration. The Committee has the power, in its sole discretion,
to declare at any time that this Option shall be immediately exercisable.

 

9. Limitation on Transfer. While the Optionee is alive, only the Optionee or
his/her guardian or legal representative may exercise this Option. This Option
may not be assigned or transferred other than by will or the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined by
the Code or Title I of the Employee Retirement Income Security Act, or the rules
thereunder.

 

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10. No Shareholder Rights Before Exercise. No person shall have any of the
rights of a shareholder of the Company with respect to any Share subject to this
Option until the Share actually is issued to him/her upon exercise of this
Option.

 

11. Discretionary Adjustment. In the event of any reorganization, merger,
consolidation, recapitalization, liquidation, reclassification, stock dividend,
stock split, combination of shares, rights offering, or extraordinary dividend
or divestiture (including a spin-off), or any other change in the corporate
structure or Shares of the Company, the Committee (or if the Company does not
survive any such transaction, a comparable committee of the Board of Directors
of the surviving corporation) may, without the consent of the Optionee, make
such adjustment as it determines in its discretion to be appropriate as to the
number and kind of securities subject to and reserved under the Plan and, in
order to prevent dilution or enlargement of rights of the Optionee, the number
and kind of securities issuable upon exercise of this Option and the exercise
price hereof.

 

12. Transfer of Shares —Tax Effects. The Optionee hereby acknowledges that if
any Shares received pursuant to the exercise of any portion of this Option are
sold within two years from the date of grant or within one year from the
effective date of exercise of the Option, or if certain other requirements of
the Code are not satisfied, such Shares will be deemed under the Code not to
have been acquired by the Optionee pursuant to an “incentive stock option” as
defined in the Code; and that the Company shall not be liable to the Optionee in
the event the Option for any reason is deemed not to be an “incentive stock
option” within the meaning of the Code.

 

13. Interpretation of This Agreement. All decisions and interpretations made by
the Committee with regard to any question arising hereunder or under the Plan
shall be binding and conclusive upon the Company and the Optionee. If there is
any inconsistency between the provisions of this Agreement and the Plan, the
provisions of the Plan shall govern.

 

14. Discontinuance of Employment. This Agreement shall not give the Optionee a
right to continued employment with the Company or any parent or subsidiary of
the Company, and the Company or any such parent or subsidiary employing the
Optionee may terminate his/her employment at any time and otherwise deal with
the Optionee without regard to the effect it may have upon him/her under this
Agreement.

 

15. Option Subject to Plan, Articles of Incorporation and By-Laws. The Optionee
acknowledges that this Option and the exercise thereof is subject to the Plan,
the Articles of Incorporation, as amended from time to time, and the By-Laws, as
amended from time to time, of the Company, and any applicable federal or state
laws, rules or regulations.

 

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16. Obligation to Reserve Sufficient Shares. The Company shall at all times
during the term of this Option reserve and keep available a sufficient number of
Shares to satisfy this Agreement.

 

17. Binding Effect. This Agreement shall be binding in all respects on the
heirs, representatives, successors and assigns of the Optionee.

 

18. Choice of Law. This Agreement is entered into under the laws of the State of
Colorado and shall be construed and interpreted thereunder (without regard to
its conflict of law principles).

IN WITNESS WHEREOF, the Optionee and the Company have executed this Agreement as
of the___ day of October, 200__.

 

OPTIONEE    

 

ACT TELECONFERENCING, INC. By     

 

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Notice of Option Exercise

ACT TELECONFERENCING, INC.

1526 Cole Boulevard

Suite 300

Golden, CO 80401

Attention: Chief Financial Officer

Sir/Madam:

I hereby exercise the following option (the “Option”) granted to me under the
ACT Teleconferencing, Inc. 2004 Equity Incentive Plan (the “Plan”) with respect
to the number of shares of Common Stock, no par value (“Shares”), of ACT
Teleconferencing, Inc. (the “Company”), indicated below:

 

Name:    ________________________________________ Date of Grant of Option:   
________________________________________ Exercise Price Per Share:   
________________________________________

Number of Shares With Respect to

Which the Option is Hereby Exercised:

   ________________________________________ Total Exercise Price:   
________________________________________

 

  ¨ Enclosed with this letter is a check, bank draft or money order in the
amount of the Total Exercise Price.

 

  ¨ I hereby agree to pay the Total Exercise Price by cancellation of a debt
owed to me by the Company.

 

  ¨ I hereby agree to pay the Total Exercise Price within five business days of
the date hereof and, as stated in the attached Broker’s Letter, I have delivered
irrevocable instructions to __________________________________ to promptly
deliver to the Company the amount of sale or loan proceeds from the Shares to be
issued pursuant to this exercise necessary to satisfy my obligation hereunder to
pay the Total Exercise Price.

 

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  ¨ Enclosed with this letter is a certificate evidencing unencumbered Shares
(duly endorsed in blank) having an aggregate Fair Market Value (as defined in
the Plan) equal to or in excess of the Total Exercise Price.

 

  ¨ I elect to pay the Total Exercise Price through a reduction in the number of
Shares delivered to me upon this exercise of the Option as provided in
paragraph 8 of the Plan.

If I am enclosing Shares with this letter, I hereby represent and warrant that I
am the owner of such Shares free and clear of all liens, security interests and
other restrictions or encumbrances. I agree that I will pay any required
withholding taxes in connection with this exercise as provided in paragraph 9 of
the Plan.

Please issue a certificate (the “Certificate”) for the number of Shares with
respect to which the Option is being exercised in the name of the person
indicated below and deliver the Certificate to the address indicated below:

 

Name in Which to Issue Certificate:    ________________________________________
Address to Which Certificate Should be Delivered:   
________________________________________   
________________________________________   
________________________________________   
________________________________________   
________________________________________ Principal Mailing Address for Holder of
the Certificate (if different from above):   
________________________________________   
________________________________________   
________________________________________   
________________________________________   
________________________________________

 

 

Very truly yours,     Signature     Name, please print     Social Security
Number __________________, 20___

 

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Broker Assisted Option Exercise

ACT TELECONFERENCING, INC.

1526 Cole Boulevard

Suite 300

Golden, CO 80401

Attention: Chief Financial Officer

Sir/Madam:

 

Name of Optionee:    ________________________________________ Date of Grant of
Option:    ________________________________________ Exercise Price Per Share:   
________________________________________

Number of Shares With Respect to

Which the Option is to be Exercised:

   ________________________________________ Total Exercise Price:   
________________________________________

The above Optionee has requested that we finance the exercise of the above
Option to purchase Shares of common stock of ACT Teleconferencing, Inc. (the
“Company”) and has given us irrevocable instructions to promptly deliver to the
Company the amount of sale or loan proceeds from the Shares to be issued
pursuant to such exercise to satisfy the Optionee’s obligation to pay the Total
Exercise Price.

 

Very truly yours,     Broker Name

 

By       

 

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