EX-10.2 FORM OF INCENTIVE STOCK OPTION GRANT



 





EXHIBIT 10.2









 




 




AuthenTec, Inc.

Stock Option Certificate



THIS CERTIFIES THAT           (the “Employee”) has been awarded under the AuthenTec, Inc.
2004 Stock Incentive Plan (the “Plan”), incentive stock options (each, an “Option” or collectively,
the “Options”) to purchase           shares of Common Stock, par value $0.01 per share (“Common
Stock”) of AuthenTec, Inc., a Delaware corporation (the “Company”), at a price of $  per share
(the “Exercise Price”). This Certificate constitutes part of and is subject to the terms and
provisions of the attached Incentive Stock Option Grant Agreement (the “Agreement”), which is
incorporated by reference herein.





			
	Grant Date:
	 	Initial Vesting Date:                                   





Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
prior to the tenth anniversary of the Initial Vesting Date (the “Expiration Date”), unless fully
exercised or terminated earlier.



Vesting Schedule: The Options vest and become exercisable in accordance with the vesting
schedule below, subject to the terms and conditions described in the Agreement:





	 	(a)	 	25% of the Options vest and become exercisable on the first anniversary
of the Initial Vesting Date, and
	 
	 	(b)	 	1/48th of the Options vest and become exercisable on the
date one month after the first anniversary date of the Initial Vesting Date and
on such date every month thereafter, through the fourth anniversary of the
Initial Vesting Date.




The extent to which the Options are vested and exercisable as of a particular vesting date is
rounded down to the nearest whole share. However, vesting is rounded up to the nearest whole share
on the fourth anniversary of the Initial Vesting Date.



IN WITNESS WHEREOF, the Company has caused this Certificate to be executed by its duly authorized
officer on this            day of




	 	 	 	 	 
	 	AUTHENTEC, INC.:

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 


The undersigned hereby acknowledges that he/she has carefully read the attached Agreement and the
Plan and agrees to be bound by all of the provisions set forth in such documents.




	 	 	 	 	 
	 	EMPLOYEE:

 	 
	 	 	 
	 
	 	Date:  	 	 
	 



	 	 	 
	Enclosures:

	 	Incentive Stock Option Grant Agreement

AuthenTec, Inc. 2004 Stock Incentive Plan

Stock Restriction Agreement

Exercise Form








 









 








Incentive Stock Option Grant Agreement




Under The




AuthenTec, Inc. 2004 Stock Incentive Plan




          1. Terminology.     All capitalized words that are not defined in this Agreement have the
meanings ascribed to them in the Plan. For purposes of this Agreement, the terms below have the
following meanings:




               (a)     “Cause” has the meaning ascribed to such term or words of similar import in the Employee’s
written employment or service contract with the Company and, in the absence of such agreement or
definition, means the Employee’s (i) material breach of any written employment, consulting,
advisory, proprietary information, nondisclosure or other agreement with the Company and his or her
subsequent failure to cure such breach to the satisfaction of the Board within thirty (30) days
following written notice of such breach to the Employee by the Company; (ii) conviction of, or
entry of a plea of guilty or nolo contendere to, a felony or any misdemeanor involving moral
turpitude if the Board reasonably determines that such conviction or plea materially adversely
affects the Company; (iii) commission of an act of fraud or dishonesty by the Employee if the Board
reasonably determines that such act materially adversely affects the Company; or (iv) intentional
damage or destruction of substantial property of the Company. The determination of “cause” shall
be made by the Board and its determination shall be final and conclusive.




               (b)     “Change in Control” means: the earliest to occur of (i) a merger or consolidation to
which the Company is a party and which results in, or is effected in connection with, a change in
ownership of a majority of the outstanding shares of voting stock of the Company, (ii) any sale or
transfer of all or substantially all of the assets of the Company to an unaffiliated third party,
(iii) the sale by the stockholders of the Company of a majority of the voting stock of the Company
to an unaffiliated third party or (iv) a liquidation or dissolution of the Company.




               (c)     “Company” includes AuthenTec, Inc. and its Affiliates, except where the context otherwise
requires.




               (d)     “Good Reason” has the meaning ascribed to such term or words of similar import in the
Employee’s written employment or service contract with the Company and, in the absence of such
agreement or definition, means any of the following that occurs coincident with or following a
Change in Control, if not cured and corrected by the Company or its successor within 10 business
days after written notice thereof by the Employee to the Company or its successor: (i) any change
in the Employee’s title or position that constitutes a material diminution in authority as compared
to the authority of the Employee’s title or position immediately prior to the occurrence of the
Change in Control; (ii) any material reduction in the Employee’s annual base salary as in effect on
the effective date of the Change in Control; (iii) a substantial diminution in the Employee’s
duties and responsibilities (other than a change due to the Employee’s Total and Permanent
Disability or as an accommodation under the Americans With Disabilities Act); or (iv) any
requirement that the Employee relocate, by more than 100 miles, the principal location from which
he performs services for the Company as compared to such location immediately prior to the
occurrence of the Change in Control; provided, however, that no diminution of
title, position, duties or responsibilities shall be deemed to occur solely because the Company
becomes a subsidiary of another corporation or entity or because there has been a change in the
reporting hierarchy incident thereto involving the Employee.




 









 








               (e)     “Option Shares” mean the shares of Common Stock underlying the Options.




               (f)     “Total and Permanent Disability” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether the Employee is totally and permanently disabled will be
final and binding on all parties concerned.




          2. Vesting.




               (a)     The Options vest in accordance with the vesting schedule identified in the Stock Option
Certificate which is attached hereto and constitutes a part of the Agreement (the “Vesting
Schedule”), so long as the Employee is in the continuous employ of, or in a service relationship
with, the Company from the Grant Date through the applicable date upon which vesting is scheduled
to occur. No vesting will accrue to any Options after the Employee ceases to be in either an
employment or other service relationship with the Company.




               (b)     Except to the extent that the Options have earlier terminated or become fully vested,
including by way of the provisions of Section 10(c) of this Agreement, the lesser of 25% of the
Options or the remaining unvested Options shall become vested upon the termination date of the
Employee’s employment or other service relationship with the Company if (i) the Company or its
successor terminates the Employee without Cause or the Employee terminates with Good Reason, and
(ii) such termination occurs coincident with or within one year following a Change in Control.




               (c)     Unless the Options have earlier terminated, if before the Employee has vested in any
Options, his or her employment or other service relationship with the Company terminates due to
death or Total and Permanent Disability, then as of such termination a number of Options will be
vested equal to (i) the total number of Options granted under this Agreement as specified on the
Stock Option Certificate, multiplied by (ii) 25%, multiplied by (iii) a fraction, the numerator of
which is the total number of days measured from the Employee’s date of hire to the date that the
employment or other service relationship ceased and the denominator of which is 365.




          3. Exercise of Options.




               (a)     Right to Exercise. The Employee may exercise the Options to the extent vested at
any time on or before the Expiration Date or the earlier termination of the Options, unless
otherwise provided in this Agreement. Section 4 below describes certain limitations on exercise of
the Options that apply in the event of the Employee’s death, Total and Permanent Disability, or
termination of employment or other service relationship with the Company. The Options may be
exercised only in multiples of whole shares and may not be exercised at any one time as to fewer
than one hundred shares (or such lesser number of shares as to which the Options are then
exercisable). No fractional shares will be issued under the Options.




               (b)     Exercise Procedure. In order to exercise the Options, the following items must be
delivered to the Secretary of the Company before the expiration or termination of the Options: (i)
an exercise notice, in such form as the Administrator may require from time to time, specifying the
number of Option Shares to be purchased, (ii) full payment of the Exercise Price for such Option
Shares or properly executed, irrevocable instructions, in such form as the Administrator may
require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance
with Section 3(c) of this Agreement, and (iii) an executed copy of any other

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agreements requested by the Administrator pursuant to Section 3(d) of this Agreement. An
exercise will not be effective until all of the foregoing items are received by the Secretary of
the Company.




               (c)     All Shares acquired by the Optionee upon exercise of the Option, whether before or after
termination of the Optionee’s employment with the Company or a related corporation, and all other
Shares or other securities of the Company issued as a dividend on such Shares or as a result of a
stock split, recapitalization or similar transaction shall be considered acquired upon exercise of
the Option and shall be subject to and Optionee agrees:





     a.     that all Shares shall be deposited in and made subject to the terms and
conditions of that certain Voting Trust Agreement in the form attached hereto as
Exhibit B (the “Voting Trust Agreement”) to be held for the benefit of the Optionee
pursuant to the terms thereof; and




     b. in addition to any other legend required by law or agreement, each
certificate evidencing the Shares now or hereafter owned by the Optionee, his or
her successors, and assigns, shall be stamped or otherwise imprinted with a legend
to the following effect:




SALE, TRANSFER, OR HYPOTHECATION OF THE SHARES REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED BY THE PROVISIONS OF THE EMPLOYEE STOCK OPTION
AGREEMENT AMONG THE UNDERSIGNED AND THE COMPANY, A COPY OF WHICH MAY BE
INSPECTED AT THE PRINCIPAL OFFICE OF THE COMPANY, AND ALL THE PROVISIONS
OF WHICH ARE INCORPORATED BY REFERENCE IN THIS CERTIFICATE. THE AGREEMENT
PROVIDES, AMONG OTHER THINGS, FOR TRANSFER RESTRICTIONS AND SUBJECTS THE
SHARES TO A VOTING TRUST AGREEMENT BY ACCEPTING THE SHARES OF STOCK
EVIDENCED BY THIS CERTIFICATE THE HOLDER OF THIS CERTIFICATE AGREES TO BE
BOUND BY SAID AGREEMENTS.



               A copy of this Agreement shall be delivered to the Secretary of the Company, and shall be
shown to any shareholder making inquiry about it.




               (d)     Method of Payment. Payment of the Exercise Price may be made by delivery of cash,
certified or cashier’s check, money order or other cash equivalent acceptable to the Administrator
in its discretion, a broker-assisted cashless exercise in accordance with Regulation T of the Board
of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator,
or a combination of the foregoing. In addition, payment of the Exercise Price may be made by any
of the following methods, or a combination thereof, as determined by the Administrator in its
discretion at the time of exercise:





     (i) by tender (via actual delivery or attestation) to the Company of other shares of
Common Stock of the Company which have a Fair Market Value on the date of tender equal to
the Exercise Price, provided that such shares have been owned by the
Employee for a period of at least six months free of any substantial risk of forfeiture or
were purchased on the open market without assistance, direct or indirect, from the Company;




     (ii) by withholding of Option Shares otherwise issuable pursuant to the exercise which
have a Fair Market Value on the date of exercise equal to the Exercise Price; or




     (iii) by any other method approved by the Administrator.



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               (e)     Agreement by Employee to Execute Other Agreements. The Employee hereby agrees to
execute, as a condition precedent to the exercise of the Options and at any time thereafter as may
reasonably be requested by the Administrator, a Voting Trust Agreement, substantially in the form,
and containing the terms and provisions, of the Voting Trust Agreement attached hereto as Exhibit
B, with respect to any Option Shares acquired by the Employee pursuant to this Agreement;
provided, however, that execution of the Voting Trust Agreement will not be
required upon any exercise of the Options that occurs after the closing of the first public
offering of capital stock of the Company that is effected pursuant to a registration statement
filed with, and declared effective by, the Securities and Exchange Commission under the Securities
Act of 1933 or, if later, the expiration of any market stand-off agreement that applies to other
shareholders of the Company respecting such public offering of capital stock.




               (f)     Issuance of Shares upon Exercise. Upon exercise of the Options in accordance with
the terms of this Agreement, the Company will issue to the Employee, the brokerage firm specified
in the Employee’s delivery instructions pursuant to a broker-assisted cashless exercise, or such
other person exercising the Options, as the case may be, the number of shares of Common Stock so
paid for, in the form of fully paid and nonassessable stock. The Company will deliver stock
certificates for the Option Shares as soon as practicable after exercise, which certificates will,
unless such Option Shares are registered or an exemption from registration is available under
applicable federal and state law, bear a legend restricting transferability of such shares and
referencing any applicable Stock Restriction Agreement.




          4. Termination of Employment or Service.



               (a)     Exercise Period Following Cessation of Employment or Other Service Relationship, In
General. If the Employee ceases to be employed by, or in a service relationship with, the
Company for any reason other than death, Total and Permanent Disability, or discharge for Cause,
(i) the unvested Options, after giving effect to the provisions of Section 2 of this Agreement,
terminate immediately upon such cessation, and (ii) the vested Options remain exercisable during
the 90-day period following such cessation, but in no event after the Expiration Date. Unless
sooner terminated, the vested Options terminate upon the expiration of such 90-day period.



               (b)     Disability of Employee. Notwithstanding the provisions of Section 4(a) above, if
the Employee ceases to be employed by, or in a service relationship with, the Company as a result
of the Employee’s Total and Permanent Disability, (i) the unvested Options, after giving effect to
the provisions of Section 2 of this Agreement, terminate immediately upon such cessation, and (ii)
the vested Options remain exercisable during the one-year period following such cessation, but in
no event after the Expiration Date. Unless sooner terminated, the vested Options terminate upon
the expiration of such one-year period.



               (c)     Death of Employee. If the Employee dies prior to the expiration or other
termination of the Options, (i) the unvested Options, after giving effect to the provisions of
Section 2 of this Agreement, terminate immediately upon the Employee’s death, and (ii) the vested
Options remain exercisable during the one-year period following the Employee’s death, but in no
event after the Expiration Date, by the Employee’s executor, personal representative, or the
person(s) to whom the Options are transferred by will or the laws of descent and distribution.
Unless sooner terminated, the vested Options terminate upon the expiration of such one-year period.



               (d)     Misconduct. Notwithstanding anything to the contrary in this Agreement, the
Options terminate in their entirety, regardless of whether the Options are vested, immediately upon
the Employee’s discharge of employment or other service relationship for Cause or upon the
Employee’s commission of any of the following acts during any period following the cessation of
employment or other service relationship during which the Options otherwise would be


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 exercisable: (i) fraud on or misappropriation of any funds or property of the Company, or (ii)
breach by the Employee of any provision of any employment, non-disclosure, non-competition,
non-solicitation, assignment of inventions, or other similar agreement executed by the Employee for
the benefit of the Company, as determined by the Administrator, which determination will be
conclusive.




               (e)     Change in Status. If the Employee’s relationship with the Company ceases to be a
“common law employee” relationship but the Employee continues to provide bona fide services to the
Company following such cessation in a different capacity, including without limitation as a
director, consultant or independent contractor, then a termination of employment or other service
relationship shall not be deemed to have occurred for purposes of this Section 4 upon such change
in relationship. Notwithstanding the foregoing, the Options shall not be treated as incentive
stock options within the meaning of Code section 422 with respect to any exercise that occurs more
than three months after such cessation of the common law employee relationship (except as otherwise
permitted under Code section 421 or 422).




          5. Non-Competition.




               (a)     During Employee’s term of employment with the Company and for twelve (12) months after
termination thereof, whether with or without cause, Employee will not directly or indirectly (i) as
an individual proprietor, partner, stockholder, officer, employee, director, joint venturer,
investor, lender, or in any other capacity whatsoever (other than as the holder of not more than
five percent (5%) of the total outstanding stock of a publicly-held company), engage in any
business activity that directly competes with the Company, or is based on technology of the kind or
type acquired, developed or being developed, produced, marketed, distributed, planned, furnished or
sold by the Company while Employee was employed by the Company; (ii) recruit, solicit or induce, or
attempt to induce, any employees of the Company to terminate their employment with, or otherwise
cease their relationship with, the Company; or (iii) solicit, divert, reduce, take away, or attempt
to divert, reduce or take away, the business or patronage (with respect to products or services of
the kind or type developed, produced, marketed, furnished or sold by the Company) of any of the
Company’s clients, customers, or accounts, or prospective clients, customers or accounts, that were
contacted, solicited or served by Employee while employed by the Company.




               (b)     Employee acknowledges that the covenant in Section 5(a) has a unique, very substantial and
immeasurable value to the Company. Employee acknowledges and agrees that the products and services
developed by the Company are or are intended to be marketed and licensed to customers worldwide.
Employee further acknowledges and agrees to the reasonableness of this covenant not to compete and
the reasonableness of the geographic area and duration of time which are a part of said covenant.
Employee also acknowledges and agrees that this covenant will not prevent Employee from becoming
gainfully employed, or otherwise earning a livelihood following termination of employment with the
Company.




          6. Market Stand-Off Agreement. The Employee agrees that following the effective date
of a registration statement of the Company filed under the Securities Act of 1933, the Employee,
for the duration specified by and to the extent requested by the Company and an underwriter of
Common Stock or other securities of the Company, shall not offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any equity securities of the Company, or any
securities convertible into or exchangeable or exercisable for such securities, enter into a
transaction which would have the same effect, or enter into any swap, hedge or other arrangement
that transfers, in whole or in part, any of the economic consequences of ownership of such
securities, whether any such aforementioned transaction is to be settled by delivery of such
securities or other securities, in cash or otherwise, or publicly disclose the intention to make
any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or

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other arrangement, in each case during the seven days prior to and the 180 days after the
effectiveness of any underwritten offering of the Company’s equity securities (or such longer or
shorter period as may be requested in writing by the managing underwriter and agreed to in writing
by the Company) (the “Market Stand-Off Period”), except as part of such underwritten registration
if otherwise permitted. In addition, the Employee agrees to execute any further letters,
agreements and/or other documents requested by the Company or its underwriters which are consistent
with the terms of this Section 5. The Company may impose stop-transfer instructions with respect
to securities subject to the foregoing restrictions until the end of such Market Stand-Off Period.




          7. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during the lifetime of the Employee, the Options
may be exercised only by the Employee or, during the period the Employee is under a legal
disability, by the Employee’s guardian or legal representative. Except as provided above, the
Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether
by operation of law or otherwise) and shall not be subject to execution, attachment or similar
process.




          In the event the employment or other service relationship of the Employee with the Company or
a related corporation is terminated for Cause, the Company shall have an irrevocable exclusive
option for a period ending 60 days after such termination to repurchase any or all Shares acquired
upon exercise of the Option and held by the Employee at such time at a price equal to the original
price per Option Share paid by the Employee (as adjusted for subsequent stock splits, stock
dividends or similar transactions).




          8. Qualified Nature of the Options. The Options are intended to qualify as incentive
stock options within the meaning of Code section 422 (“Incentive Stock Options”), to the fullest
extent permitted by Code section 422, and this Agreement shall be so construed. Pursuant to Code
section 422(d) the aggregate fair market value (determined as of the Grant Date) of shares of
Common Stock with respect to which all Incentive Stock Options first become exercisable by the
Employee in any calendar year under the Plan or any other plan of the Company (and its parent and
subsidiary corporations, within the meaning of Code section 424(e) and (f), as may exist from time
to time) may not exceed $100,000 or such other amount as may be permitted from time to time under
Code section 422. To the extent that such aggregate fair market value exceeds $100,000 or other
applicable amount in any calendar year, such stock options will be treated as nonstatutory stock
options with respect to the amount of aggregate fair market value thereof that exceeds the Code
section 422(d) limit. For this purpose, the Incentive Stock Options will be taken into account in
the order in which they were granted. In such case, the Company may designate the shares of Common
Stock that are to be treated as stock acquired pursuant to the exercise of Incentive Stock Options
and the shares of Common Stock that are to be treated as stock acquired pursuant to nonstatutory
stock options by issuing separate certificates for such shares and identifying the certificates as
such in the stock transfer records of the Company.




          Notwithstanding anything herein to the contrary, if the Employee owns, directly or indirectly
through attribution, stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company or of any of its subsidiaries (within the meaning of Code section
424(f)) on the Grant Date, then the Exercise Price is the greater of (a) the Exercise Price stated
on the Stock Option Certificate which is attached hereto and constitutes a part of this Agreement
or (b) 110% of the Fair Market Value of the Common Stock on the Grant Date, and the Expiration Date
is the last business day prior to the fifth anniversary of the Grant Date.




          Code section 422 provides additional limitations respecting the treatment of these Options as
Incentive Stock Options.




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          9. Notice of Disqualifying Disposition. If the Employee makes a disposition (as that
term is defined in Code section 424(c)) of any Option Shares acquired pursuant to these Options
within two years of the Grant Date or within one year after the Option Shares are transferred to
the Employee, the Employee agrees to notify the Administrator of such disposition in writing within
30 days of the disposition.




          10. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, the Employee hereby authorizes withholding
from payroll or any other payment of any kind due the Employee and otherwise agrees to make
adequate provision for foreign, federal, state and local taxes required by law to be withheld, if
any, which arise in connection with the Options (including upon a disqualifying disposition within
the meaning of Code section 421(b)). The Company may require the Employee to make a cash payment
to cover any withholding tax obligation as a condition of exercise of the Options or issuance of
share certificates representing Option Shares.




          The Administrator may, in its sole discretion, permit the Employee to satisfy, in whole or in
part, any withholding tax obligation which may arise in connection with the Options either by
electing to have the Company withhold from the shares to be issued upon exercise that number of
shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair
Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.




          11. Adjustments for Corporate Transactions and Other Events.




               (a)     Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock, the number of shares covered by and
the exercise price and other terms of the Options, shall, without further action of the Board, be
adjusted to reflect such event unless the Board determines, at the time it approves such stock
dividend, stock split or reverse stock split, that no such adjustment shall be made. The
Administrator may make adjustments, in its discretion, to address the treatment of fractional
shares and fractional cents that arise with respect to the Options as a result of the stock
dividend, stock split or reverse stock split.




               (b)     Non-Change in Control Transactions. Except with respect to the transactions set
forth in Section 10(a), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control, the Administrator, in its discretion and without the consent of the
Employee, shall make any adjustments in the Options, including but not limited to modifying the
number, kind and price of securities subject to the Options.




               (c)     Change in Control Transactions. In the event of any transaction resulting in a
Change in Control, the Options will terminate upon the effective time of any such Change in Control
unless provision is made in connection with the transaction in the sole discretion of the parties
thereto for the continuation or assumption of the Options, or the substitution of the Options with
new options of the surviving or successor entity or a parent thereof. In the event of such
termination, (A) the outstanding Options that will terminate upon the effective time of the Change
in Control shall become fully vested immediately before the effective time of the Change in
Control, and (B) the Employee will be permitted, immediately before the Change in Control, to
exercise all portions of such Options that are then exercisable or which become exercisable upon or
prior to the effective time of the Change in Control. If, immediately before the Change in
Control, no stock of the Company is readily tradeable on an established securities market or
otherwise, and the vesting of the Options pursuant to this Section 10(c) would be treated as a
“parachute payment” (as defined in section 280G of the Code), then such Options shall not vest

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unless the requirements of the shareholder approval exemption of section 280G(b)(5) of the
Code have been satisfied with respect to such Options.




               (d)     Adjustments for Unusual Events. The Administrator is authorized to make, in its
discretion and without the consent of the Employee, adjustments in the terms and conditions of, and
the criteria included in, the Options in recognition of unusual or nonrecurring events affecting
the Company, or the financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Administrator determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Options or the Plan.




               (e)     Binding Nature of Adjustments. Adjustments under this Section 10 will be made by
the Administrator, whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive. No fractional shares will be issued pursuant to the
Options on account of any such adjustments. The terms and conditions of this Agreement shall apply
with equal force to any additional and/or substitute securities received by the Employee pursuant
to this Section 10 in exchange for, or by virtue of the Employee’s ownership of, the Options or the
Option Shares, except as otherwise determined by the Administrator.




          12. Confidential Information. In consideration of the Options granted to the Employee
pursuant to this Agreement, the Employee agrees and covenants that, except as specifically
authorized by the Company, the Employee will keep confidential any trade secrets or confidential or
proprietary information of the Company which are now or which hereafter may become known to the
Employee as a result of the Employee’s employment by or other service relationship with the
Company, and shall not at any time, directly or indirectly, disclose any such information to any
person, firm, Company or other entity, or use the same in any way other than in connection with the
business of the Company, at all times during and after the Employee’s employment or other service
relationship. The provisions of this Section 11 shall not narrow or otherwise limit the
obligations and responsibilities of the Employee set forth in any agreement of similar import
entered into between the Employee and the Company.




          13. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement shall alter the at-will or other employment status or other service relationship of the
Employee, nor be construed as a contract of employment or service relationship between the Company
and the Employee, or as a contractual right of Employee to continue in the employ of, or in a
service relationship with, the Company for any period of time, or as a limitation of the right of
the Company to discharge the Employee at any time with or without cause or notice and whether or
not such discharge results in the failure of any Options to vest or any other adverse effect on the
Employee’s interests under the Plan.




          14. No Rights as a Stockholder. The Employee shall not have any of the rights of a
stockholder with respect to the Option Shares until such shares have been issued to him or her upon
the due exercise of the Options. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such shares are issued.




          15. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.




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          16. Employee. Whenever the word “Employee” is used in any provision of this Agreement
under circumstances where the provision should logically be construed, as determined by the
Administrator, to apply to the estate, personal representative, or beneficiary to whom the Options
may be transferred by will or by the laws of descent and distribution, the word “Employee” shall be
deemed to include such person.




          17. Notices. All notices and other communications made or given pursuant to this
Agreement shall be in writing and shall be sufficiently made or given if hand delivered or mailed
by certified mail, addressed to the Employee at the address contained in the records of the
Company, or addressed to the Administrator, care of the Company for the attention of its Corporate
Secretary at its principal office or, if the receiving party consents in advance, transmitted and
received via telecopy or via such other electronic transmission mechanism as may be available to
the parties.




          18. Entire Agreement. This Agreement contains the entire agreement between the
parties with respect to the Options granted hereunder. Any oral or written agreements,
representations, warranties, written inducements, or other communications made prior to the
execution of this Agreement with respect to the Options granted hereunder shall be void and
ineffective for all purposes.




          19. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Option Shares as determined in
the discretion of the Administrator, except as provided in the Plan or in a written document signed
by each of the parties hereto.




          20. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.




          21. Governing Law. The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Administrator relating to this Agreement, and the rights of
any and all persons having or claiming to have any interest under this Agreement, shall be
determined exclusively in accordance with the laws of the State of Delaware, without regard to its
provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in the federal or state courts in the districts which include the city and
state in which the principal offices of the Company are located, and the Employee hereby agrees and
submits to the personal jurisdiction and venue thereof.




          22. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.





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EXHIBIT A




EXERCISE FORM




Administrator of 2004 Stock Incentive Plan

c/o Office of the Corporate Secretary

AuthenTec, Inc.

709 S. Harbor City Blvd., Suite 400

Melbourne, FL 32901




Gentlemen:




          I hereby exercise the Options granted to me on __________________, ___, by AuthenTec, Inc.
(the “Company”), subject to all the terms and provisions of the applicable grant agreement and of
the AuthenTec, Inc. 2004 Stock Incentive Plan (the “Plan”), and notify you of my desire to purchase
______shares of Common Stock of the Company at a price of $______ per share pursuant to
the exercise of said Options.




          This will confirm my understanding with respect to the shares to be issued to me by reason of
this exercise of the Options (the shares to be issued pursuant hereto shall be collectively
referred to hereinafter as the “Shares”) as follows:




               (a)     I am purchasing the Shares for my own account for investment only, and not with a view to,
or for sale in connection with, any distribution of the Shares in violation of the Securities Act
of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act.




               (b)     I understand that the Shares are being issued without registration under the Securities
Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is
based in part on the above representation. I also understand that the Company is not obligated to
comply with the registration requirements of the Securities Act or with the requirements for an
exemption under Regulation A under the Securities Act for my benefit.




               (c)     I have had such opportunity as I deemed adequate to obtain from representatives of the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company.




               (d)     I have sufficient experience in business, financial and investment matters to be able to
evaluate the risks involved in the purchase of the Shares and to make an informed investment
decision with respect to such purchase.




               (e)     I can afford a complete loss of the value of the Shares and am able to bear the economic
risk of holding such Shares for an indefinite period.




               (f)     I understand that (i) the Shares have not been registered under the Securities Act and are
“restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the Shares
cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under
the Securities Act or an exemption from registration is then available and, therefore, they may
need to be held indefinitely; and (iii) there is now no registration statement on file with the
Securities and Exchange Commission with respect to any stock of the Company and the Company has no
obligation or current intention to register the Shares under the Securities Act. As a condition to
any transfer of the Shares, I understand that the Company may require an opinion of counsel
satisfactory to the Company to the effect that such transfer does not require registration under
the Securities Act or any state securities law.




 









 








          (g) I understand that the certificates for the Shares to be issued to me will bear a legend
substantially as follows:





The shares of stock represented by this certificate are subject to restrictions on
transfer, an option to purchase and a market stand-off agreement set forth in a
certain Stock Restriction Agreement between the corporation and the registered owner
of this certificate (or his predecessor in interest), and no transfer of such shares
may be made without compliance with that Agreement. A copy of that Agreement is
available for inspection at the office of the corporation upon appropriate request and
without charge.




The securities represented by this stock certificate have not been registered under
the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State
Acts”), and shall not be sold, pledged, hypothecated, donated, or otherwise
transferred (whether or not for consideration) by the holder except upon the issuance
to the corporation of a favorable opinion of its counsel and/or submission to the
corporation of such other evidence as may be satisfactory to counsel for the
corporation, to the effect that any such transfer shall not be in violation of the Act
and the State Acts.”


Appropriate stop transfer instructions will be issued by the Company to its transfer agent.




               (h)     I am a party to a grant agreement and a stock restriction agreement with the Company,
pursuant to which I have agreed to certain restrictions on the transferability of the Shares and
other matters relating thereto.







			
	Total Amount Enclosed: $	 	

 






 





			
	Date:	 	

 









 

(Employee)




 




Received by AUTHENTEC, INC. on




_________________________, __________




	 	 	 	 
	 	 
	By:  	 
 	 
	 	 	 
	 	 	 
	 








 




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EXHIBIT B




VOTING TRUST AGREEMENT




          THIS AGREEMENT, dated this ___day of _________, 20___, by and between the undersigned
parties to create a Voting Trust of the stock of AuthenTec, Inc., a Delaware corporation,
hereinafter referred to as the “Company.”




ARTICLE I




CONSIDERATION AND PURPOSE OF TRUST




          1.01 Consideration. In consideration of their mutual promises contained within that certain
Stock Option Agreement by and between AuthenTec, Inc., and the undersigned and other good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned
hereby agrees to enter into this Voting Trust Agreement.




          1.02 Purpose of Trust. The parties enter into this Voting Trust Agreement for the purpose of
concentrating the vote of the shares represented under this Agreement in the hands of the Voting
Trustee and to provide a clear and definite policy of management to guide the discretion of the
Voting Trustee.




ARTICLE II




PARTIES AND EFFECTIVE DATE




          2.01 Parties. The parties to this Agreement are:




          (1) ____________, owner of ____________(______) shares of common stock of the
Company, hereinafter called “Shareholder” before Voting Trust Certificates are issued to him and a
“Voting Trust Certificate Holder” after Voting Trust Certificates are issued to him.




          (2) F. Scott Moody or such other appointee as from time to time selected by the Board of
Directors pursuant to Section 3.04 (hereinafter called the “Trustee”).




          2.02 Effective Date. This Voting Trust Agreement shall become effective when signed by
Shareholder and the Trustee in accordance with Section 9.08.




 









 








ARTICLE III




TRUSTEE AND DEPOSITARY




          3.01 Number and Term of Trustee. There shall be one (1) Trustee of this trust. The first
Trustee shall be F. Scott Moody and his successor(s) shall be appointed as provided in Section
3.04. The Trustee shall serve for such term of this trust in the absence of his resignation or
death.




          3.02 Death of Trustee. The rights and duties of the Trustee shall terminate upon death and no
interest in any of the property owned or held by the trust nor any of the rights or duties of the
Trustee may be transferred by will, devise, succession, or in any manner except as provided in this
Agreement.




          3.03 Resignation. The Trustee may resign by giving sixty (60) days notice of resignation to
Shareholder and to the Company.




          3.04 Successor Trustee; Removal.




          (1) In the event of the death, resignation, removal, or incapacity to act of any Trustee, a
successor or successors shall be appointed by the Board of Directors of the Company representing at
least a majority of the Board of Directors of the Company, regardless of whether said shareholders
are parties to this Agreement.




          (2) Any trustee under this Agreement may be removed by an affirmative vote of the majority of
the then members of the Board of Directors of the Company.




ARTICLE IV




DEPOSITS AND TRANSFER OF SHARES — ISSUANCE AND TRANSFER OF VOTING

TRUST CERTIFICATES




          4.01 Deposit of Shares. On the execution of this Agreement, Shareholder shall deposit with
the Trustee share certificates for all shares of the Company issued to Shareholder from the
exercise of options pursuant to that certain Stock Option Agreement granted to Shareholder under
the AuthenTec, Inc. 1998 Stock Option Plan, as amended and restated from time to time. All these
share certificates shall be endorsed in blank or to the Trustee, and be accompanied by instruments
of transfer reasonably requested by Trustee including but not limited to Stock Power in the form
attached hereto as Attachment A, which will enable the Trustee to cause the share certificates to
be transferred to the name of the Trustee.




          4.02 Transfer of Shares to Trustee. All share certificates of the Company delivered to the
Trustee shall be surrendered by the Trustee to the Company in return for new share certificates to
be issued in the name of the Trustee. The new share certificates shall state that they are issued
pursuant to this Agreement, and in the entry of ownership of the shares by the Trustee in the stock
transfer records of the Company that fact shall also be noted.




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          4.03 Transfer of Shares to Successor Trustee. Despite any changes in the Trustee, the
certificates for shares standing in the name of the Trustee may be endorsed and transferred by any
successor Trustee with the same effect as if endorsed and transferred by the Trustee who has ceased
to act. The Trustee is authorized and empowered to cause any further transfer of the shares to be
made which may be necessary because of any change of persons holding the office of Trustee.




          4.04 No Sale of Shares. Notwithstanding the provisions of paragraph 4.01, the Trustee shall
have no authority to sell or otherwise dispose of or encumber any of the stock deposited pursuant
to the provisions of this Agreement.




          4.05 Voting Trust Certificate. On receipt by the Trustee of the share certificates and
transfer of them into the name of the Trustee, the Trustee shall hold the share certificates
subject to the terms of this Agreement, and the Trustee shall issue and deliver to Shareholder a
Voting Trust Certificate, in substantially the form of Attachment “A,” attached hereto.




          4.06 Transfer of Voting Trust Certificates. The Voting Trust Certificate shall not be
transferable by Shareholder except upon the issuance to the Company of a favorable opinion of
counsel for Shareholder in the form acceptable to Company or the submission to the Company of such
other evidence as may be satisfactory to Company and its counsel, in either case to the effect that
any such transfer shall not be in violation of the Securities Act of 1933, as amended, and
applicable state securities laws.




          Further, transfer of the Voting Trust Certificates and the rights evidenced thereby shall be
subject to all the transfer restrictions set forth in that certain Employee Option Agreement
related to the shares subject to this Voting Trust Agreement by and between undersigned and Company
including but not limited those set forth in Sections 6 and 7. The terms of such Employee Option
Agreement are hereby incorporated by this reference.




          All transfers shall be recorded in the Certificate Book and any transfer made of any Voting
Trust Certificate shall vest in the transferee all rights of the transferor and shall subject the
transferee to the same limitations as those imposed on the transferor by the terms of the Voting
Trust Certificate and this Agreement. The Trustee shall deliver the Voting Trust Certificate to
the transferee for the number of shares represented by the Voting Trust Certificate so transferred.




          4.07 Proof of Ownership. The Trustee shall not be required to recognize any transfer of a
Voting Trust Certificate not made in accordance with the provisions of this Agreement unless the
persons claiming ownership shall have produced indicia of title satisfactory to the Trustee, and
shall have deposited with the Trustee indemnity satisfactory to him.




          4.08 Holder of Certificate as Owner. The Trustee may treat the Voting Trust Certificate
Holders as the absolute owners and holders of the Voting Trust Certificates and as having all the
rights and interests represented by them for all purposes, and the Trustee shall not be bound or
affected by any notice to the contrary.




          4.09 Replacement of Certificates. If a Voting Trust Certificate shall become mutilated or be
destroyed, stolen or lost, the Trustee, in his discretion, may issue a new Voting Trust Certificate
of like tenor and denomination in exchange and substitution for and on cancellation

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of the mutilated Voting Trust Certificate, or in substitution for the Certificate so
destroyed, stolen, or lost. The applicant for a substituted Voting Trust Certificate shall furnish
to the Trustee evidence of the destruction, theft, or loss of the Certificate satisfactory to him
in his discretion. The applicant shall also furnish indemnity satisfactory to the Trustee and to
his agent.




ARTICLE V




VOTING AND ACTION BY TRUSTEE




          5.01 Voting of Shares. While the Trustee holds shares transferred pursuant to the provisions
of this Agreement, he shall possess, subject to this Agreement, the right to exercise in person, or
by his nominees, agents, attorneys-in-fact, or proxies, all rights and powers of absolute owners
for the purposes of this Agreement and to vote or assent the Shares with respect thereto and to
take part in and consent to any shareholders’ action in proportion to the vote of all other shares
on any matter brought before the stockholders for a vote. In the event the Trustee receives
dividends and distributions, said dividends and distributions shall be made in accordance with
Article VI, hereof.




          No other person shall have any voting rights in respect to the Shares so long as this
Agreement is in effect.




          5.02 Any Trustee, its employees or agents and any firm or corporation of which it may be a
member, agent, or employee and any corporation, trust, or association of which it may be a trustee,
stockholder, director, officer, agent, or employee may contract with or be or become interested in
a pecuniary manner, directly or indirectly, in any matter or transaction to which the Company or
any subsidiary or controlled or affiliated corporation may be a party or in which it may be
concerned, as fully and freely as though the Trustee were not a Trustee hereunder. The Trustee,
his employees, or agents may act as directors or officers of the Company or of any subsidiary or
controlled or affiliated corporation.




          5.03 Compensation of Trustee. The Trustee shall serve without compensation.




          5.04 Expenses. The Trustee is expressly authorized to incur and pay those reasonable charges
and expenses that he may deem necessary and proper for administering this Agreement and loan
documents. The Company shall reimburse and indemnify the Trustee for all expenses incurred by him
in connection with the discharge of his duties under this Agreement.




          5.05 Trustee’s Liability. The Trustee shall be free from liability in acting upon any paper,
document, or signature reasonably believed by him to be genuine and to have been signed by the
proper party. The Trustee shall not be liable for any error of judgment in good faith and with due
diligence, nor for any act done or omitted, nor for any mistake of fact or law, nor for anything
which he may do or refrain from doing in good faith with due diligence, except that the Trustee
shall be liable for his own neglect or malfeasance.




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ARTICLE VI




DIVIDEND, DISTRIBUTION, SUBSCRIPTION RIGHTS OF CERTIFICATE HOLDERS




          6.01 Cash Dividends. Each Voting Trust Certificate Holder shall be entitled to receive from
time to time payments equal to the amount of cash distributions and/or dividends, if any, collected
or received by the Trustee on the shares in regard to which Voting Trust Certificates were issued,
less the deductions provided for in paragraph 6.04. These payments shall be made, as soon as
practicable after the receipt of the distributions/dividends, to the Voting Trust Certificate
Holders at the close of business on the record date determined pursuant to the provisions of
paragraph 6.05.




          6.02 Distributions on Liquidation. In the event of the dissolution or total or partial
liquidation of the Company, the Trustee shall receive the moneys, securities, rights, or property
to which Shareholders of the Company are entitled, and shall distribute it among the Voting Trust
Certificate Holders in proportion to their interests, as shown by the books of the Trustee. The
Trustee may withhold therefrom the deductions provided for in paragraph 6.04.




          6.03 Other Distributions to Shareholders. If at any time during the continuation of this
Agreement the Trustee shall receive or collect any moneys through a distribution by the Company to
its Shareholders, other than in payment of cash distributions/dividends, or shall receive any
property (other than shares of stock of the Company) through a distribution by the Company to its
Shareholders, the Trustee shall distribute it to the Voting Trust Certificate Holders registered as
such at the close of business on the record date determined pursuant to the provisions of paragraph
6.05. The Trustee may withhold therefrom the deductions provided for in Paragraph 6.04.




          6.04 Deductions for Distributions. There shall be deducted and withheld from every
distribution of every kind under this Agreement any taxes, assessments, or other charges that may
be required by law to be deducted or withheld, as well as expenses and charges incurred pursuant to
paragraph 5.06, to the extent that the expenses and charges are not reimbursed or remain unpaid.




          6.05 Record Date for Distributions. The Trustee may, if he deems it advisable, fix a date not
exceeding twenty (20) days preceding any date for the payment or distribution of dividends or for
the distribution of assets or rights as a record date for the determination of the Voting Trust
Certificate Holders entitled to receive the payment or distribution, and the Voting Trust
Certificate Holders of record on that date shall be exclusively entitled to participate in the
payments or distributions. If the Trustee fails to fix a record date, the date three (3) days
prior to the date of payment or distribution of dividends or the distribution of assets or rights
shall constitute the record date for the determination of the Voting Trust Certificate Holders
entitled to receive the payment or distribution.




          6.06 Subscription Rights. If any securities of the Company shall be offered for subscription
to the Voting Trust Certificate Holders, the Trustee, promptly on receipt of notice of the offer,
shall mail a copy of the notice to the Voting Trust Certificate Holder of record. On receipt by
the Trustee, at least thirty (30) days prior to the last date fixed by the Company for
subscription, of a request from the Voting Trust Certificate Holder to be subscribed in his behalf,
accompanied by the sum of money required to be paid for the securities, the Trustee shall make

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the subscription and payment on behalf of the Voting Trust Certificate Holder. On receiving
from the Company the certificate for the securities subscribed for, the Trustee shall issue to the
Voting Trust Certificate Holder a Voting Trust Certificate; if they are securities other than
shares, then the Trustee shall deliver the same to the Voting Trust Certificate Holder.




ARTICLE VII




BOOKS AND RECORDS




          7.01 Record of Shares. It shall be the duty of the Trustee to maintain a record of all share
certificates of the Company transferred to the Trustee, indicating the name in which the stock was
held, the date of issuance of the stock, the class and series of the stock, the number of shares,
and the number of the certificates representing those shares. The Trustee shall also maintain a
record of the date on which any share certificates were received by him, the date on which they
were delivered to the corporation for transfer to the Trustee and shall obtain a receipt for any
certificates so delivered. The Trustee shall receive and hold the new share certificates issued by
the corporation in the name of the Trustee and shall maintain a record indicating the date of
issuance of the certificates, the date of receipt of the certificates, and the place in which the
certificates are held by him.




          7.02 Record of Trust Certificates. The Trustee shall maintain a record showing the names and
addresses of the Voting Trust Certificate Holders. The record shall show the number of
Certificates held by each person. The record shall show the dates on which the Voting Trust
Certificates were issued, cancelled, transferred, or replaced. The record shall be known as the
Certificate Record Book and shall be open to inspection by any of the parties to this Agreement or
their successors at any reasonable time. The record shall show any subsequent transfer,
assignment, pledge, attachment, execution, and any other matter affecting the title to the Voting
Trust Certificates which comes to the attention of the Trustee. Any documents purporting to affect
the title of the Voting Trust Certificates shall also be kept in the Certificate Record Book,
together with a sample copy of the Voting Trust Certificate.




          7.03 Other Records. The Trustee shall maintain such other books and records and shall perform
the duties required of him to be performed elsewhere in this Agreement.




          7.04 Inspection of Records. The parties to this Agreement shall deposit a counterpart of this
Agreement with the Company at its principal office and the Agreement shall be subject to the same
right of examination by a Shareholder of the Company, in person or by agent or attorney, as are the
books and records of the Company, and shall be subject to examination by any holder of a beneficial
interest in the voting trust, either in person or by agent or attorney, at any reasonable time for
any proper purpose.




ARTICLE VIII




TERM OF TRUST




          8.01 Irrevocability of Trust. The Trust created by this Agreement is expressly declared to be
irrevocable, except as otherwise provided in this Agreement.




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          8.02 Termination. This Agreement shall automatically terminate upon the earlier of the
following:




          (1) The liquidation of the Company; or




          (2) Ten (10) years after the date hereof; or




          (3) Upon the closing of a firm commitment underwritten public offering of shares of the
Company’s common stock described in Section II of the Certificate of Incorporation of the
Company.




          8.03 Return of Share Certificates After Termination. Within thirty (30) days after the
termination of this Agreement, the Trustee shall transfer to the Voting Trust Certificate Holders
share certificates representing the number of shares in respect of which the Voting Trust
Certificates were issued on the surrender of the Voting Trust Certificates properly endorsed and on
payment by the persons entitled to receive the share certificates of a sum sufficient to cover any
governmental charges on the transfer or delivery of the share certificates.




          8.04 Final Accounting. Within ninety (90) days after termination of this Trust, the Trustee
shall render a final accounting to the Voting Trust Certificate Holders and to the Company and
shall distribute any funds or other assets held by him to the parties entitled thereto.




ARTICLE IX




MISCELLANEOUS




          9.01 Place of Performance. This Agreement is made, executed, and entered into at Melbourne,
Florida, and it is mutually agreed that the performance of all parts of this contract shall be made
at Melbourne, Florida.




          9.02 Governing Law. This Agreement is intended by the parties to be governed and construed in
accordance with the laws of the State of Delaware and venue is agreed to be in Brevard County,
Florida.




          9.03 Severability of Provisions. This Agreement shall not be severable or divisible in any
way but it is specifically agreed that, if any provision should be held invalid, the invalidity
shall not affect the validity of the remainder of the Agreement.




          9.04 Notice to Trustee . Any notice to be given to the Trustee under this Agreement shall be
sufficiently given if mailed to the Trustee at P.O Box 2719, Melbourne, Florida 32902, or at such
other address as the Trustee may from time to time designate by written notice given to the Voting
Trust Certificate Holders.




          9.05 Notice to Voting Trust Certificate Holders. Any notice to be given to a Voting Trust
Certificate Holder shall be sufficiently given if delivered personally, or mailed by certified


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mail, return receipt requested, to him at the address of the Voting Trust Certificate Holder
appearing on the Certificate Book to be maintained by the Trustee. Every notice given pursuant
hereto shall be effective whether or not received and shall be deemed as given on the date of
mailing thereof.




          9.06 Meetings of Voting Trust Certificate Holders. The Trustee may call a meeting of the
Voting Trust Certificate Holders at any time by providing written notice fourteen (14) days prior
to such meeting. The notice shall contain a statement of the matters to be discussed at the
meeting.




          9.07 Execution of Counterparts. This Agreement shall be prepared in multiple copies and
forwarded to each of the parties for execution. This Agreement shall become effective at the time
provided in paragraph 2.02. All of the signatures may be affixed to one copy or to separate
copies, and when all copies are received and signed by all the parties, they shall constitute one
Agreement which is not otherwise separable or divisible.




          9.08 Amendment of Agreement. If at any time the Trustee deems it advisable to amend this
Agreement, he shall submit the amendment to the Voting Trust Certificate Holders of the then
outstanding Voting Trust Certificates for their approval at a special meeting of Voting Trust
Certificate Holders which shall be called for that purpose. Notice of the time and place of the
meeting shall be given in the manner provided in paragraph 9.07, and shall contain a copy of the
proposed amendment. If at the meeting or any adjournment thereof the proposed amendment shall be
approved by the affirmative vote of the majority of the Voting Trust Certificate Holders, the
proposed amendment so approved shall become a part of this Agreement as if originally incorporated
herein.




          9.09 Advice of Counsel. Each of the parties agrees and represents that he has been
represented by his own counsel with regard to the execution of this Agreement or that, if acting
without counsel, he has had adequate opportunity and has been encouraged to take the advice of his
own counsel prior to the execution of this Agreement.




          9.10 Share Certificates. Each certificate representing shares held by any of the parties to
this Agreement shall contain a statement that the shares represented by the certificate are subject
to the provisions of a Voting Agreement.




          Execution. Executed on ___, 200___, at ___, Florida.






Trustee:




 




 

F. Scott Moody, Trustee





 




 





 




 





(Name)




 




 





(SS#)







Witnesses:




 




 





 




 




 





 




 





 




 




 










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Attachment A




          THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED PURSUANT TO AN INVESTMENT REPRESENTATION
ON THE PART OF THE VOTING TRUST CERTIFICATE HOLDER HEREOF AND SHALL NOT BE SOLD, PLEDGED,
HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED, WHETHER OR NOT FOR CONSIDERATION, BY THE VOTING
TRUST CERTIFICATE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS
COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO SUCH
COUNSEL, IN EITHER CASE TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.




VOTING TRUST CERTIFICATE




          THIS IS TO CERTIFY that the undersigned Trustee has received a Certificate or Certificates
issued in the name of __________________________, evidencing the ownership of ___
(___) shares of common stock of AuthenTec, Inc. (“Company”), a Delaware corporation, and
that the shares are held subject to all the terms and conditions of that Agreement, dated
___, 200___, by and between F. SCOTT MOODY, as Trustee, and certain Shareholders of
AuthenTec, Inc. During the term of the Voting Trust, the Trustee shall possess and be entitled to
exercise the absolute right to vote and otherwise represent the shares of the Shareholders of the
Company pursuant and subject to the terms and conditions of the Voting Trust Agreement. It is
expressly understood and agreed that no voting rights shall pass to the holder by virtue of the
ownership of this Trust Certificate. Upon the termination of the Trust, this Certificate shall be
surrendered to the Trustee by the holder upon delivery to that holder of a stock certificate
representing a like number of shares.




          IN
WITNESS WHEREOF, the undersigned Trustee have executed this
Certificate on ____________________,
20___.




	 	 	 	 	 
	 	 	 
	 	 	 
	 	F. Scott Moody, Trustee 	 
	 	 	 
	 




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