Document:

Form of Stock Option Agreement

  
 Exhibit 10.2

 

 

 FORM OF STOCK OPTION AGREEMENT

  

									
	 GRANTEE

NAME
	 	 NUMBER OF
 OPTIONS

GRANTED
	 	 OPTION

PRICE
	 	 GRANT

DATE
	 	 EXPIRATION

DATE

					
	 «First_Name»
 «Last_Name»
	 	«Options»	 	$«Price»	 	«Grant_Date»	 	«Expiration_Date»

STOCK OPTION VESTING SCHEDULE 
  

			
	 PERCENTAGE OF OPTION

SHARES EXERCISABLE
	  	 DATE

EXERCISABLE

	  	  	  
	  	  	  
	  	  	  
	  	  	  

 I, «First_Name» «Last_Name», SSN «SSN»,
hereby accept the Options set forth in this Stock Option Agreement, reflecting the grant on «Grant_Date» of «Options» options to purchase the common stock of WMS Industries Inc. at an option price of $«Price»
(“Option Agreement”) and agree to comply with the terms and conditions of the Stock Option Agreement and of the Plan referenced in the Stock Option Agreement. 
 WMS Industries, Inc., a Delaware corporation (the “Company”), hereby grants to «First_Name» «Last_Name» (the “Grantee”, also referred to as “you”), an
option to purchase «Options» shares of the common stock of the Company at an option price of $«Price» per share pursuant to the terms of this Stock Option Agreement and the 2009 Restatement of the WMS Industries Inc. Amended
and Restated Incentive Plan (the “Plan”). 
 By signing this cover sheet, you agree to all of the terms and conditions described
in the attached Stock Option Agreement and the Plan. 
  

			
	Grantee:	 	  

		 	(Signature)
		
	Company:	 	
 

  

		 	Brian R. Gamache
		 	Chief Executive Officer

PLEASE RETURN A COPY OF THIS SIGNED AGREEMENT TO: 
 WMS — Legal Department, Waukegan Office 
 PLEASE RETAIN THE ORIGINALLY
SIGNED AGREEMENT FOR YOUR RECORDS 
 This is not a stock certificate or a negotiable instrument.

 This document constitutes part of a prospectus covering securities 

that have been registered under the Securities Act of 1933. 

  

 

 

 STOCK OPTION AGREEMENT 
 1. Options/Nontransferability. This Stock Option Agreement (the “Option Agreement”) evidences the grant to you on the Grant Date set forth on the cover page of an option under the 2009
Restatement of the WMS Industries Inc. Amended and Restated Incentive Plan (the “Plan”) to purchase shares of the common stock of the Company (the “Option”). Under applicable provisions of the Internal Revenue Code of 1986, as
amended, the Option is treated as a non-qualified stock option. As used in this Option Agreement, your primary employer (“Employer”), the Company, and its subsidiaries and affiliates are collectively referred to as the “Employer
Group.” Capitalized terms that are not defined on the cover page or in the Option Agreement are defined in the Plan. Your Option Agreement may not be transferred, assigned, pledged or hypothecated, whether by operation of law or otherwise, nor
may the Option be made subject to execution, attachment or similar process. 
 2. The Plan. This Option is issued in accordance with and
is subject to and conditioned upon all of the terms and conditions of this Option Agreement and the Plan as amended from time to time, provided, however, that no future amendment or termination of the Plan shall, without your consent, alter or
impair any of your rights or obligations under the Plan, all of which are incorporated by reference in this Option Agreement as if fully set forth herein. 
 3. Termination. The Option shall terminate immediately if you voluntarily incur a Termination of Service without the written consent of the Employer Group or if you incur a Termination of Service
by action of the Employer Group due to your willful refusal to perform your duties or for “cause” (as such term is defined in your employment or severance agreement (if any) or, if none, as defined by the Committee and in effect at the
time of your termination). Notwithstanding the previous sentence, if your Termination of Service is voluntary and with the written consent of the Employer Group (which written consent expressly sets forth a statement to the effect that, to the
extent exercisable on the date of such termination the Option shall remain exercisable), or if your Termination of Service is by action of the Employer Group for reasons other than cause, you may exercise the Option to the extent exercisable at the
time of such termination, at any time prior to the expiration of three months after such termination, or for any longer period of time after such termination as shall be determined by the Committee, but not later than the Expiration Date. Should you
die during your employment or service or following your Termination of Service, the Option shall immediately terminate, except that, to the extent exercisable by you at the time of your death, the Option may be exercised within one year after the
date of your death but not later than the Expiration Date, solely in accordance with all of the terms and conditions of the Plan by your personal representatives or by the person or persons to whom your rights under the Option shall pass by will or
by the applicable laws of descent and distribution. 
 4. Additional Forfeiture. The Committee may cancel, suspend, withhold or otherwise
limit or restrict the Option at any time if you (i) are not in compliance with all applicable provisions of this Option Agreement or the Plan or (ii) engage in any activity inimical, contrary or harmful to the interests of the Employer
Group, including but not limited to: (A) conduct related to your service or employment for which either criminal or civil penalties against you may be sought, 

  
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(B) violation of any policies of the Employer Group, including, without limitation, insider trading or anti-harassment policies, or (C) participating in a hostile takeover attempt against
the Employer Group. 
 5. Restrictive Covenants. As a condition of and consideration for this option grant and in consideration for
«Grant_Reason», you agree with the Company as follows: 
  

	 	a.	Acknowledgments. You acknowledge that: 

  

	 	i.	The Employer Group is engaged in the business of designing, developing, commercializing and promoting gaming products and services including game themes, game play
concepts, gaming systems, gaming platforms, gaming websites, online game play; manufacturing, selling, leasing and distributing gaming devices (e.g., without limitation, video and reel spinning slot machines, video poker games, video lottery
terminals, local progressives and wide-area progressive systems), related gaming systems hardware and software, as well as ancillary products associated with such gaming devices, including without limitation marketing materials, chairs, and signage
(“Business”). 

  

	 	ii.	As an integral part of its business, the Employer Group develops and maintains proprietary, confidential and trade secret information relating to both specific gaming
machines and gaming machines generally, as well as those being developed, its Business, including, but not limited to, information related to design, product development plans and strategies, techniques for game design and development, knowledge
regarding and plans for the integration of hardware and software, product maintenance and operations, game and bonus concepts, product and marketing strategies, new game concepts, mathematical formulas, license agreements, research regarding
players’ behavior and trends in the gaming industry and game themes, licensed and non-licensed themes, and strategic marketing. 

  

	 	iii.	The Employer Group undertakes various efforts and measures to maintain the secrecy and confidentiality of its proprietary, confidential and trade secret information.

  

	 	iv.	You have or will have access to and knowledge of such proprietary, confidential and trade secret information. 

 

	 	v.	The scope of the covenants and restrictions on future employment set forth below, including with respect to time, territory and industry are reasonable and fair and are
necessary for the protection of the Employer Group’s proprietary, confidential and trade secret information. 

  

	 	vi.	The scope of the covenants and restrictions contained herein in no way limit you from utilizing in future employment your general skills and abilities as well as the
general and non-proprietary, non-confidential and non-trade secret information and knowledge that you have or will obtain, acquire and develop in the course of employment with the Employer Group. 

 

	 	vii.	 For a period of one (1) year following termination of your employment with the Employer Group, you would not be able to work for a competing
Business anywhere in 

  
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the world without using or disclosing the proprietary, confidential or trade secret information of the Employer Group, regardless of any measures taken by you or a future employer to protect and
preserve the Employer Group’s proprietary, confidential or trade secret information. 

  

	 	viii.	You have both general and specific skills and abilities that are beneficial across many industries outside of the Business and which are located throughout the world,
including throughout the United States. 

  

	 	b.	Covenants. You hereby covenant and agree that during your employment by the Employer Group and for a period of one (1) year following your voluntary
termination of employment or any termination of your employment by the Employer Group for cause or without cause: 

  

	 	i.	You shall not engage or participate in, or assist, advise or otherwise be connected with (including as an employee, independent contractor, owner, partner, member,
shareholder, officer, director, advisor, consultant, lender, supplier, agent or otherwise) a business located anywhere in the world which is engaged in the design, development, importation, manufacture, leasing, distribution and/or sale of gaming
devices, or component parts for gaming devices or related hardware and software, as well as ancillary products associated with such gaming devices, including without limitation marketing materials, chairs, and signage; provided, however, that
nothing in this agreement shall prevent you from acquiring or owning, as a passive investment, up to one percent (1%) of the outstanding voting securities of an entity engaged in a competing Business which securities are publicly traded in any
recognized national securities market; 

  

	 	ii.	You shall not solicit or attempt to solicit (i) any person, company or entity who is or has been a customer of the Employer Group during the one (1) year
period prior to the termination of your employment at the Employer Group to do business with any person, company or entity other than the Employer Group, or (ii) solicit for employment or employ any employee of the Employer Group or any person
who is or was employed by the Employer Group during the one (1) year period prior to the termination of your employment at the Employer Group, or take any actions which are calculated to persuade any such person to terminate his or her
association with the Employer Group. 

  

	 	c.	Injunctive Relief. You acknowledge that any violation or threatened violation by you of the covenants contained in this agreement would cause material and
irreparable harm to the Company and that the Company would not have an adequate remedy at law because it will be difficult or impossible to establish the full and precise monetary value of such damage. You agree that, in addition to any and all
other remedies available to the Company at law or in equity, the Company shall have the right to have your violation or threatened violation of any of the covenants contained herein restrained by equitable relief, including, but not limited to, a
temporary restraining order, a preliminary injunction, a permanent injunction, or such other alternative relief as may be appropriate, without the necessity of the Company posting any bond. In the event you breach the covenants contained herein, the
restricted period applicable to you shall be extended for the period of such breach. 

  
 4 

  

	 	d.	Indemnification. You agree to indemnify, save and hold harmless the Company from and against any and all claims, damages, losses and expenses (including
reasonable attorneys’ and expert witness fees) resulting from or arising out of any breach by you of this Agreement, or incurred by the Company in enforcing this Agreement against you. 

 

	 	e.	Other Limitations. The provisions of this paragraph 5 are in addition to the award forfeiture provisions set forth in Section 11 of the Plan and in no way
modify, amend or change such Plan provisions. 

 6. Employment Not Affected. Neither the grant of any Option, nor any other
action taken with respect to the Option, shall confer upon the Grantee any right to continue in the employ of the Employer Group or shall interfere in any way with the right of the Employer Group to terminate Grantee’s employment at any time.
Except as may be otherwise limited by another written agreement, the right of the Employer Group to terminate at will the Grantee’s employment with it at any time (whether by dismissal, discharge, retirement or otherwise) is specifically
reserved. 
 7. No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of
the Grantee’s death, shall have any of the rights and privileges of a holder of the Company’s common stock subject to this Option Agreement. 
 8. Severability. Should a court of competent jurisdiction deem any of the provisions in this Option Agreement to be unenforceable in any respect, it is the intention of the parties to this Option
Agreement that this Option Agreement be enforced to the greatest extent deemed to be enforceable. 
 9. Choice of Law. This Option
Agreement shall be governed by and construed and interpreted in accordance with the substantive laws of the State of Delaware, without giving effect to any conflicts of law rule or principle that might require the application of the laws of another
jurisdiction. 
 10. Securities Laws. The Company shall not be obligated to issue any shares pursuant to this Option if, in the opinion
of counsel to the Company, the shares to be so issued are required to be registered or otherwise qualified under the United States Securities Act of 1933, as amended, or under any other applicable statute, regulation or ordinance affecting the sale
of securities, unless and until such shares have been so registered or otherwise qualified. 
 11. Income Taxes. You agree to comply with
the appropriate procedures established by the Company, from time to time, to provide for payment or withholding of such income or other taxes as may be required by law to be paid or withheld in connection with the exercise of this Option.

 12. Expiration. This Option, to the extent not previously exercised, shall expire on the seventh anniversary of the Grant Date.

 13. Exercise. This Option is to be exercised by logging on to www.benefitaccess.com with your User Name, Password and Trading
Pin, or by delivering to the Company a written notice of exercise in the form attached hereto as Exhibit A together with payment as provided in the Plan. 

  
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 EXHIBIT A 

STOCK OPTION EXERCISE NOTICE 
 Dated:                      
 Vice President and Secretary 
 WMS INDUSTRIES INC. 

800 S. Northpoint Blvd. 
 Waukegan, Illinois
60085 
 Sir/Madam: 

Notice is hereby given of my election to purchase      shares of common stock of WMS Industries Inc. (the
“Company”) at a price of $             per share under the provisions of the stock option (“Option”) granted to me on
                     under the terms of the 2009 Restatement of the WMS Industries Inc. Amended and Restated Incentive Plan. 

I hereby certify that I am in compliance with the covenants and forfeiture provisions of the Option Agreement dated as of
                     between the Company and me (the “Option Agreement”). I acknowledge that a violation of these provisions will
result in the forfeiture of any remaining options that I have. 
 Cash Method or Cashless Method 

Cash: Enclosed is my check made payable to WMS Industries Inc. in the amount of
$             in payment of the exercise price of the Option and my check in the amount of $             made
payable to
                                        
in payment of the tax due on exercise of the Option. 
 Cashless: I will contact my broker from
                                        
[BROKER’S NAME/COMPANY], who will be verifying my options and arranging to exercise and sell my option shares. 
 The
following information is supplied for use in issuing and registering the shares purchased: 
  

			
	Number of shares:	 	  

		
	Full Name:	 	  

		
	Address:	 	  

		
		 	  

 

	
	Very truly yours,
	  

	[                              
          ]

  
 6Form of Restricted Stock Agreement

  
 Exhibit 10.3

 

 

 FORM OF RESTRICTED STOCK
AGREEMENT 
  

							
	 GRANTEE

NAME
	 	 NUMBER OF

SHARES
	 	 GRANT

DATE
	  	 VESTING

SCHEDULE

				
	 «Full_Name»
	 	«Shares»	 	«Grant_Date»	  	«Vesting Schedule»

WMS Industries Inc., a Delaware corporation (the “Company”), hereby grants to «Name» (the “Grantee”, also referred to
herein as “you”) shares of its common stock, par value $.50 per share (the “Stock”), pursuant to the terms of this Restricted Stock Agreement and the 2009 Restatement of the WMS Industries Inc. Amended and Restated Incentive Plan
(the “Plan”). 
 By signing this cover sheet, you agree to all of the terms and conditions described in the attached Restricted
Stock Agreement and the Plan. 
  

			
	Grantee:	 	  

		 	(Signature)
		
	Company:	 	
 

  

		 	Brian R. Gamache
		 	Chief Executive Officer

PLEASE SIGN BOTH COPIES OF THIS AGREEMENT AND 
 RETURN (1) ORIGINALLY EXECUTED COPY TO: 
 WMS – Legal
Department 
 Waukegan Office 
 PLEASE RETAIN THE OTHER ORIGINALLY EXECUTED COPY FOR YOUR RECORDS. 

This is not a stock certificate or a negotiable instrument. 

UPON RECEIPT OF YOUR SIGNED AGREEMENT, 
 A BOOK ENTRY WILL BE ENTERED AT OUR TRANSFER AGENT TO EVIDENCE 
 THE
SHARES GRANTED TO YOU. 
 This document constitutes part of a prospectus covering securities 

that have been registered under the Securities Act of 1933. 

  
 WMS INDUSTRIES INC.

 RESTRICTED STOCK AGREEMENT 
 1. Restricted Stock/Nontransferability. This Restricted Stock Agreement evidences the grant to you on the Grant Date set forth on the cover page of shares of Restricted Stock (the “Restricted
Stock”) under the 2009 Restatement of the WMS Industries Inc. Amended and Restated Incentive Plan (the “Plan”). To the extent not yet vested, your Restricted Stock may not be transferred, assigned, pledged or hypothecated, whether by
operation of law or otherwise, nor may the Restricted Stock be made subject to execution, attachment or similar process. As used in this Restricted Stock Agreement, the Company, and its subsidiaries and affiliates are collectively referred to as the
“Employer Group.” Capitalized terms that are not defined on the cover page or in the Restricted Stock Agreement are defined in the Plan. 
 2. The Plan. This Restricted Stock Agreement is issued in accordance with and is subject to and conditioned upon all of the terms and conditions of this Restricted Stock Agreement and the Plan as
amended from time to time; provided, however, that no future amendment or termination of the Plan shall, without your consent, alter or impair any of your rights or obligations under the Plan, all of which are incorporated by reference in this
Restricted Stock Agreement as if fully set forth herein. 
 3. Issuance and Vesting. The Company will issue your Restricted Stock in your
name as of the Grant Date. Your right to the Restricted Stock under this Restricted Stock Agreement vests as indicated on the cover sheet. 
 4.
Accelerated Vesting. Notwithstanding Paragraph 3, your right to the Restricted Stock under this Restricted Stock Agreement shall immediately vest as to 100% of the total number of shares covered by this grant upon the occurrence of either:

  

	 	•	 	 your death or permanent or total disability; 

  

	 	•	 	 involuntary Termination of Service, other than by reason of (i) willful refusal to perform your duties, (ii) violation of the Company’s
policies, (iii) failure to meet the director qualification requirements set forth in the Company’s By-Laws, or (iv) failure of the Board of Directors to re-nominate you, or your failure to meet our suitability requirements due to any
of the reasons described in clauses (i) through (iii) above; 

  

	 	•	 	 your retirement from the Board with the Board’s approval and six months’ prior notice or such shorter period as approved by the majority of
the remaining directors; or 

  

	 	•	 	 a “Change in Control” as provided for in Section 10 of the Plan. 

5. Termination. Your right to the Restricted Stock under this Restricted Stock Agreement to the extent the restrictions have not lapsed shall
terminate immediately upon your voluntary Termination of Service or if Termination of Service occurs by action of the Employer Group due to your willful refusal to perform your duties or for “cause” (as such term is by the Committee and in
effect at the time of your termination). 

  
 2 

  
 6. Additional Forfeiture. The
Committee may cancel, suspend, withhold or otherwise limit or restrict your right to the Restricted Stock under this Restricted Stock Agreement at any time if you (i) are not in compliance with all applicable provisions of this Restricted Stock
Agreement or the Plan or (ii) engage in any activity inimical, contrary or harmful to the interests of the Employer Group, including, but not limited to: (A) conduct related to your service for which either criminal or civil penalties
against you may be sought, (B) violation of any policies of the Employer Group, including, without limitation, the Employer Group’s insider trading or anti-harassment policies or (C) participating in a hostile takeover attempt against
the Employer Group. 
 7. Return of Shares. These shares will be issued in book-entry form and held with the transfer agent until
vesting. If the Restricted Stock is evidenced by a stock certificate and does not become vested in accordance with the foregoing provisions or as otherwise provided for in the Plan, you will return the certificate representing the Restricted Stock
and the Restricted Stock shall be deemed no longer outstanding. 
 8. Section 83(b) Election. Under Section 83 of the
Internal Revenue Code of 1986, as amended (the “Code”), the difference between the purchase price, if any, paid for the shares of Restricted Stock and their fair market value on the date any forfeiture restrictions applicable to such
shares lapse will be reportable as ordinary income at that time. You may elect to be taxed at the time the shares are acquired rather than when such shares cease to be subject to such forfeiture restrictions by filing an election under
Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days after the Grant Date. You will have to make a tax payment to the extent the purchase price is less than the fair market value of the shares on the Grant
Date. No tax payment will have to be made to the extent the purchase price is at least equal to the fair market value of the shares on the Grant Date. The form for making this election is attached as Exhibit A hereto. Failure to make this filing
within the thirty (30) day period will result in the recognition of ordinary income by you (in the event the fair market value of the shares increases after the date of purchase) as the forfeiture restrictions lapse. 

9. Shareholder Rights. You have the right to vote the Restricted Stock and to receive any dividends declared or paid on such stock. Any
distributions you receive as a result of any stock split, stock dividend, combination of shares or other similar transaction shall be deemed to be a part of the Restricted Stock and subject to the same conditions and restrictions applicable thereto.

 10. Compliance with Law. The issuance of this Restricted Stock shall be subject to compliance with the rules and policies of the New
York Stock Exchange. 
 11. Legend. Any certificates or book entry evidencing the Restricted Stock issued in connection with this grant
shall, where applicable, have endorsed thereon the following legend: 
 “THESE SHARES ARE SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN AN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY
THE HOLDER OF RECORD OF THESE SHARES.” 
 12. Severability. It is the parties’ intent that all provisions not deemed to be
overbroad shall be given their full force and effect. You acknowledge that you are freely, knowingly and voluntarily entering into this Restricted Stock Agreement after having an opportunity for consultation with your own independent counsel.

  
 3 

  
 13. Choice of Law. This
Restricted Stock Agreement shall be governed by and construed and interpreted in accordance with the substantive laws of the State of Delaware, without giving effect to any conflicts of law rule or principle that might require the application of the
laws of another jurisdiction. 
 14. Securities Laws. The Company shall not be obligated to issue any shares pursuant to this Restricted
Stock Agreement if, in the opinion of counsel to the Company, the shares to be so issued are required to be registered or otherwise qualified under the Securities Act of 1933, as amended, or under any other applicable statute, regulation or
ordinance affecting the sale of securities, unless and until such shares have been so registered or otherwise qualified. 
 15. Income
Taxes. You agree to comply with the appropriate procedures established by the Company, from time to time, to provide for payment or withholding of such income or other taxes as may be required by law to be paid or withheld in connection with the
vesting of Restricted Stock. 

  
 4 

  
 EXHIBIT A

 ELECTION UNDER SECTION 83(b) OF 
 THE INTERNAL REVENUE CODE 
 The undersigned hereby makes an election pursuant to
Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder: 

1. The name, address and social security number of the undersigned: 

 

			
	Name:	  	  

			
	Address:	  	  

	  

			
	Social Security No.	  	  

 2. Description of property with respect to which the election is being made: 

                     shares of
common stock, par value $.50 per share, WMS Industries Inc., a Delaware corporation, (the “Company”). 
 3. The date
on which the property was transferred is                     ,
            . 
 4. The taxable year to which this election
relates is calendar year                     . 
 5. Nature of restrictions to which the property is subject: 
 The shares of stock are subject to
the provisions of a Restricted Stock Agreement between the undersigned and the Company. The shares of stock are subject to forfeiture under the terms of the Agreement. 
 6. The fair market value of the property at the time of transfer (determined without regard to any lapse restriction) was $            
per share, for a total of $            . 
 7. The amount
paid by taxpayer for the property was $            . 
 8. A
copy of this statement has been furnished to the Company. 
 Dated:
                    ,              

 

	
	  

	Taxpayer’s Signature
	
	  

	Taxpayer’s Printed Name

  
 5 

  
 PROCEDURES FOR
MAKING ELECTION 
 UNDER INTERNAL REVENUE CODE SECTION 83(b) 
 The following procedures must be followed with respect to the attached form for making an election under Internal Revenue Code section 83(b) in order for the election to be effective: 

1. You must file one copy of the completed election form with the IRS Service Center where you file your federal income tax returns
within thirty (30) days after the Grant Date of your Restricted Stock. 
 2. At the same time you file the election form
with the IRS, you must also give a copy of the election form to the Secretary of the Company. 
 3. You must file another
copy of the election form with your federal income tax return (generally, Form 1040) for the taxable year in which the stock is transferred to you. 

  
 6

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