EXHIBIT 10.22

TURBOCHEF TECHNOLOGIES, INC.
2003 STOCK INCENTIVE PLAN

INCENTIVE STOCK OPTION AGREEMENT

Employee/Optionee:

____________________

 

 

Number of Shares:

_____________ Shares

 

 

Option Exercise Price:

 

 

 

Grant Date:

 

Vesting Schedule:

 

No. Shares

 

Date

 

 

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__________

 

______

 

 

__________

 

______

 

 

__________

 

______

                    THIS OPTION AGREEMENT (the “Agreement”) is entered into as
of the      day of        , 2003, by and between TURBOCHEF TECHNOLOGIES, INC., a
Delaware corporation (the “Company”), and the employee designated above (the
“Optionee”).

W I T N E S S E T H:

                    WHEREAS, the TurboChef Technologies, Inc. 2003 Stock
Incentive Plan (the “Plan”) was adopted by the Company, effective October 29,
2003; and

                    WHEREAS, as of the date hereof, the Committee responsible
for administration of the Plan granted the Option as provided herein;

                     NOW, THEREFORE, the parties agree as follows:

1.       Grant of Option.

          1.1     Option.  An option to purchase shares of the Company’s Common
Stock (the “Shares”) is hereby granted to the Optionee (the “Option”).

          1.2     Number of Shares.  The number of Shares that the Optionee can
purchase upon exercise of the Option and the dates upon which the Option can
first be exercised are set forth above.

          1.3     Option Exercise Price.  The price the Optionee must pay to
exercise the Option (the “Option Exercise Price”) is set forth above.

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          1.4     Date of Grant.  The date the Option is granted (the “Grant
Date”) is set forth above.

          1.5     Type of Option. The Option is intended to qualify as an
Incentive Stock Option within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended from time to time, or any successor provision thereto,
and shall be so construed; provided, however, that nothing in this Agreement
shall be interpreted as a representation, guarantee or other undertaking on the
part of the Company that the Option is or will be determined to be an Incentive
Stock Option within the meaning of Section 422 of the Code.  To the extent this
Option does not qualify and is not treated as an Incentive Stock Option, it will
be treated as a Nonqualified Stock Option.

          1.6     Construction.  This Agreement shall be construed in accordance
and consistent with, and subject to, the provisions of the Plan (the provisions
of which are incorporated herein by reference) and, except as otherwise
expressly set forth herein, the capitalized terms used in this Agreement shall
have the same definitions as set forth in the Plan.

          1.7     Condition.  The Option is conditioned on the Optionee’s
execution of this Agreement.  If this Agreement is not executed by the Optionee,
it may be canceled by the Committee.

2.        Duration.

           The Option shall be exercisable to the extent and in the manner
provided herein for a period of ten (10) years from the Grant Date (the
“Exercise Term”); provided, however, that the Option may be earlier terminated
as provided in Section 1.7 and Section 5.

3.       Vesting.

          The Option shall vest, and may be exercised, with respect to the
Shares, on or after the dates set forth above, subject to earlier vesting of the
Option as provided in Section 5 and subject to earlier termination of the Option
as provided in Section 1.7 and Section 5 or in the Plan.  The right to purchase
the Shares as they become vested shall be cumulative and shall continue during
the Exercise Term unless sooner terminated as provided herein.  Notwithstanding
the foregoing, if the Optionee is a non-exempt employee for purposes of the Fair
Labor Standards Act of 1938 (“FLSA”), the Optionee may not exercise any Option
(even if the Option is otherwise vested) prior to the date that is six (6)
months after the Grant Date unless the Optionee’s employment has terminated due
to death, Disability, or Retirement or unless a Change in Control has occurred
after the Grant Date.

4.       Manner of Exercise and Payment.

          4.1     Delivery.  To exercise the Option, the Optionee must deliver a
completed copy of the Option Exercise Form, attached hereto as Exhibit A, to the
address indicated on such Form or such other address designated by the Company
from time to time.  The Option may be exercised in whole or in part with respect
to the vested Shares; provided, however, the Committee may establish a minimum
number of Shares (e.g., 100) for which an Option may be exercised at a
particular time.  Within thirty (30) days of delivery of the Option Exercise
Form, the Company shall deliver certificates evidencing the Shares to the
Optionee, duly endorsed for transfer to the

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Optionee, free and clear of all liens, security interests, pledges or other
claims or charges.  Contemporaneously with the delivery of the Option Exercise
Form, Optionee shall tender the Option Exercise Price to the Company, by cash,
check, wire transfer or such other method of payment (e.g., delivery of, or
attestation to, Shares already owned) as may be acceptable to the Committee
pursuant to the Plan.

          4.2     No Rights as Stockholder.  The Optionee shall not be deemed to
be the holder of, or to have any of the rights of a holder with respect to any
Shares subject to the Option until (i) the Option shall have been exercised
pursuant to the terms of this Agreement and the Optionee shall have paid the
full purchase price for the number of Shares in respect of which the Option was
exercised, (ii) the Company shall have issued and delivered the Shares to the
Optionee, and (iii) the Optionee’s name shall have been entered as a stockholder
of record on the books of the Company, whereupon the Optionee shall have full
voting and other ownership rights with respect to such Shares.

5.       Termination of Employment.

          5.1     Termination by Death.  In the event the Optionee dies while
actively employed by the Company, all outstanding unvested Options granted to
the Optionee shall immediately vest, and thereafter all vested Options shall
remain exercisable at any time prior to the end of the Exercise Term, or for one
(1) year after the date of death, whichever period is shorter, by such person(s)
as shall have been named as the Optionee’s beneficiary, or in the absence of a
designated beneficiary, by the executor or representative of the Optionee’s
estate.

          5.2     Termination by Disability.  If the Optionee’s employment with
the Company is terminated by reason of Disability, all outstanding unvested
Options granted to the Optionee shall immediately vest as of the date the
Committee determines the definition of Disability to have been satisfied by the
Optionee, and thereafter all vested Options shall remain exercisable at any time
prior to the end of the Exercise Term, or for one (1) year after the date that
the Committee determines the definition of Disability to have been satisfied,
whichever period is shorter.

          5.3     Termination for Cause.  If the Optionee’s employment with the
Company is terminated by the Company for Cause, all outstanding unvested Options
granted to the Optionee shall expire immediately, and the Optionee’s right to
exercise any then outstanding Options (whether or not vested) shall terminate
immediately upon the date that the Committee determines is the Optionee’s date
of termination of employment.

          5.4     Termination of Employment for Other Reasons.  If the
Optionee’s employment is terminated by the Company without Cause, or the
Optionee voluntarily terminates his employment (including upon Retirement), all
outstanding unvested Options shall expire, and any Options vested as of his date
of termination shall remain exercisable at any time prior to the end of the
Exercise Term or for three (3) months after his date of termination of
employment, whichever period is shorter.

          5.5     Employment with a Subsidiary.  For purposes of this Section
and Section 10, employment with the Company includes employment with any
subsidiary of the Company.  A change of employment between the Company and any
subsidiary or between subsidiaries is not a termination of employment under this
Agreement.

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6.       Nontransferability.

          The Option shall not be transferable other than by will or by the laws
of descent and distribution, and during the lifetime of the Optionee, the Option
shall be exercisable only by the Optionee.

7.       Securities Law Restrictions.

          The Option may not be exercised at any time unless, in the opinion of
counsel for the Company, the issuance and sale of the Shares issued upon such
exercise is exempt from registration under the Securities Act of 1933, as
amended, or any other applicable federal or state securities law, rule or
regulation, or the Shares have been duly registered under such laws.  The
Company intends to register the Shares issuable upon the exercise of the Option;
however, until the Shares have been registered under all applicable laws, the
Optionee shall represent, warrant and agree, as a condition to the exercise of
the Option, that the Shares are being purchased for investment only and without
a view to any sale or distribution of such Shares and that such Shares shall not
be transferred or disposed of in any manner without registration under such
laws, unless it is the opinion of counsel for the Company that such a
disposition is exempt from such registration.  The Optionee acknowledges that an
appropriate legend giving notice of the foregoing restrictions shall appear
conspicuously on all certificates evidencing the Shares issued upon the exercise
of the Option.

8.       Limitation or Cancellation of Award.

          If the Optionee engages in any “Detrimental Activity” (as defined in
the Plan), the Committee may, notwithstanding any other provision in this
Agreement to the contrary, cancel, rescind, suspend, withhold or otherwise
restrict or limit any unexpired, unexercised or deferred  Option as of the first
date the Optionee engages in the Detrimental Activity, unless sooner terminated
by operation of another term of this Agreement, the Plan or any other
agreement.  In addition, if the Optionee exercises an Option hereunder at any
time during the period beginning six months prior to the date the Optionee first
engages in any Detrimental Activity and ending on the date six months after the
date the Optionee ceases to engage in any Detrimental Activity, the Optionee
shall be required to pay to the Company the excess of the fair market value of
the Shares subject to the Option exercised over the total exercise price for
such Shares.

9.      Effect of Change in Control.

          9.1     Vesting.  Upon the consummation of a Change in Control, all
outstanding unvested Options shall become immediately and fully exercisable, and
shall remain exercisable as otherwise provided in this Agreement.

          9.2     Termination of Options.  The Committee, in its discretion, may
terminate the Option upon a Change in Control; provided, however, that at least
30 days prior to the Change in Control (or, if not feasible to provide 30 days
notice, within a reasonable period prior to the Change in Control), the
Committee notifies the Optionee that the Option will be terminated and provides
the Optionee, either, at the election of the Committee, (i) a cash payment equal
to the difference between the Fair Market Value of the vested Options (including
Options that would become vested upon the Change in Control in accordance with
Section 9.1 above) and the

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Exercise Price for such Options, computed as of the date of the Change in
Control and to be paid no later than 3 business days after the Change in
Control, or (ii) the right to exercise all vested Options (including Options
that would become vested upon the Change in Control in accordance with Section
9.1 above) immediately prior to the Change in Control.

          9.3     Liquidation/Dissolution.  Upon the effective date of the
liquidation or dissolution of the Company without a successor, the Option shall
terminate; provided that the Optionee shall, in such event, have the right
immediately prior to such dissolution or liquidation, to exercise this Option in
whole or in part whether or not previously vested.

10.     No Right to Continued Employment.

          Nothing in this Agreement or the Plan shall be interpreted or
construed to confer upon the Optionee any right with respect to continuance of
employment by the Company or any subsidiary, nor shall this Agreement or the
Plan interfere in any way with the right of the Company or a subsidiary to
terminate the Optionee’s employment at any time.

11.     Adjustments.

          In the event of a change in capitalization, the Committee may make
appropriate adjustments to the number and class of Shares or other stock or
securities subject to the Option and the purchase price for such Shares or other
stock or securities.  The Committee’s adjustment shall be made in accordance
with the provisions of Section 4.4 of the Plan and shall be effective and final,
binding and conclusive for all purposes of the Plan and this Agreement.

12.     Withholding of Taxes.

          The Company shall have the right to deduct from any distribution of
cash to the Optionee an amount equal to the federal, state and local income
taxes and other amounts as may be required by law to be withheld (the
“Withholding Taxes”) with respect to the Option.  If the Optionee is entitled to
receive Shares upon exercise of the Option, the Optionee shall pay the
Withholding Taxes (if any) to the Company in cash prior to the issuance of such
Shares.  In satisfaction of the Withholding Taxes, the Optionee may make a
written election (the “Tax Election”), which may be accepted or rejected in the
discretion of the Committee, to have withheld a portion of the Shares issuable
to him or her upon exercise of the Option, having an aggregate Fair Market Value
equal to the minimum required Withholding Taxes, provided that, if the Optionee
may be subject to liability under Section 16(b) of the Exchange Act, the
election must comply with the requirements applicable to Share transactions by
such Optionee.

          If the Optionee makes a disposition, within the meaning of Section
424(c) of the Code and regulations promulgated thereunder, of any Share or
Shares issued to him pursuant to his exercise of the Option within the two-year
period commencing on the day after the Grant Date or within the one-year period
commencing on the day after the date of transfer of such Share or Shares to the
Optionee pursuant to such exercise, the Optionee shall, within ten (10) days of
such disposition, notify the Company thereof, by delivery of written notice to
the Company at its principal executive office, and immediately deliver to the
Company the amount of Withholding Taxes.

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13.     Modification of Agreement.

          Except as provided in Section 9, this Agreement may be modified,
amended, suspended or terminated, and any terms or conditions may be waived,
only by a written instrument executed by the parties hereto.

14.     Severability.

          Should any provision of this Agreement be held by a court of competent
jurisdiction to be unenforceable or invalid for any reason, the remaining
provisions of this Agreement shall not be affected by such holding and shall
continue in full force in accordance with their terms.

15.     Governing Law.

          The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Delaware without giving
effect to the conflicts of laws principles thereof.

16.     Successors in Interest.

          This Agreement shall inure to the benefit of and be binding upon each
successor corporation to the Company.  This Agreement shall inure to the benefit
of the Optionee’s legal representatives.  All obligations imposed upon the
Optionee and all rights granted to the Company under this Agreement shall be
final, binding and conclusive upon the Optionee’s heirs, executors,
administrators and successors.

17.     Resolution of Disputes.

          Any dispute or disagreement which may arise under, or as a result of,
or in any way relate to, the interpretation, construction or application of this
Agreement shall be determined by the Committee.  Any determination made
hereunder shall be final, binding and conclusive on the Optionee and the Company
for all purposes.

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          IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of the date first above written.

 

 

TURBOCHEF TECHNOLOGIES, INC.

 

 

 

 

By:

 

 

 

 

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Name:

 

 

 

 

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Title:

 

 

 

 

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          By signing below, Optionee hereby accepts the Option subject to all
its terms and provisions and agrees to be bound by the terms and provisions of
the Plan.  Optionee hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Committee responsible for administration of
the Plan, upon any questions arising under the Plan.  Optionee authorizes the
Company to withhold, in accordance with applicable law, from any compensation
payable to him or her, any taxes required to be withheld by federal, state or
local law as a result of the grant, existence or exercise of the Option.

 

 

OPTIONEE

 

 

 

 

Signature:

 

 

 

 

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Name:

 

 

 

 

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[EXHIBIT FOLLOWS]

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EXHIBIT A

OPTION EXERCISE FORM

          I, _____________________________, do hereby exercise the Option with a
Grant Date of _____________________ granted to me pursuant to the Option
Agreement. The Shares being purchased and the Total Option Exercise Price are
set forth below:

 

 

Number of Shares:

________________ Shares

 

 

Option Exercise Price Per Share

$__________ per Share

 

 

Total Option Exercise Price:

=  $____________.

 

 

The Total Option Exercise Price is included with this Form.

 

 

Date:  ___________________

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Signature

 

 

Send or deliver this Form with an original signature to:

TurboChef Technologies, Inc.
10500 Metric Drive, Suite 128
Dallas, Texas 75243
Attn:  ____________________

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