Document:

ex_154180.htm

EXHIBIT 10.3

 

Form of Restricted Stock Award Agreement for Directors

 

inTEST CORPORATION

Restricted Stock

Award Agreement

for

_____________________________

 

We are pleased to advise you that inTEST Corporation (the “Company”) hereby grants to you under the inTEST Corporation Second Amended and Restated 2014 Stock Plan (the “Plan”), an award of restricted stock (“Restricted Stock”) with respect to ____________ shares of Common Stock of the Company, subject to your signing this Agreement and the provisions hereof. This award incorporates and is subject in all respects to the applicable provisions of the Plan, a complete copy of which has been furnished to you and receipt of which you acknowledge by acceptance of the award. All capitalized terms not defined in this Agreement have the meaning given them in the Plan.

 

	
			1.

				
			Issuance of Shares. Upon your execution and delivery of this Agreement and one or more instruments of transfer relating to all shares issuable pursuant to this Agreement (the "Shares"), you will be issued _______________ Shares of Common Stock as of _________________ (the "Grant Date"), subject to the terms, conditions and restrictions of this Agreement and the Plan. Such Shares shall be registered in your name, but the Company shall retain custody of any certificates issued for such Shares pending the vesting or forfeiture thereof. Upon the vesting of any such Shares, the Company shall deliver to you the certificates for such Shares.

			
	 	 
	
			2.

				
			Vesting.

			
	 	 
	
			 

				
			(i)

				
			Shares of Common Stock issued to you under this Agreement shall vest according to the following schedule:

			
	 	 	 
	
			 

				
			 

				
			_________________________________________________________.

			
	 	 	 
	
			 

				
			(ii)

				
			In the event that you become entitled to a fractional Share, such fractional Share shall not vest unless and until the participant becomes entitled to such number of fractional Shares as shall be equal in sum to a whole Share.

			
	 	 	 
	
			3.

				
			Conditions to Vesting. As a condition to the vesting of Shares, all of the following conditions must be fully satisfied on the applicable vesting date:

			
	 	 	 
	
			 

				
			(i)

				
			You must have been continuously engaged to provide services to the Company or its Affiliates, through and including the date of vesting, and no event shall have occurred which, with due notice or lapse of time, or both, would entitle the Company or its Affiliates to terminate your engagement with the Company or its Affiliates.

			
	 	 	 
	
			 

				
			(ii)

				
			You must not be in breach or default of any obligation to the Company or its Affiliates, whether or not contained in any agreement with the Company or its Affiliates, or imposed by law.

			

 

 

 

 

	
			4.

				
			Death, Disability or Change of Control. Shares issued under this Agreement shall become immediately and fully vested in the event: (i) you die; (ii) you incur a Disability; or (iii) a Change of Control occurs; provided, however, that you satisfy the requirements of Section 3 of this Agreement. For purposes of this Agreement, the term “Disability” shall mean a condition of total mental or physical incapacity for further performance of a person’s duty with the Company that the Committee determines, on the basis of competent medical evidence, is likely to be permanent and constitutes a “disability” within the meaning of section 22(e)(3) of the Internal Revenue Code.

			
	 	 
	
			5.

				
			Transferability. The Shares issued to you under this Agreement shall not be transferable by you prior to the date such Shares become vested under the terms of this Agreement and the Plan.

			
	 	 
	
			6.

				
			Restrictive Legend. Certificates for the Shares with respect to which the vesting requirements have not been met shall be inscribed with the following legend:

			
	 	 
	
			 

				
			 

				"The shares of stock evidenced by this certificate are subject to the terms and restrictions of a Restricted Stock Award Agreement. They are subject to forfeiture under the terms of that Agreement if they are transferred, sold, pledged, given, hypothecated, or otherwise disposed of, other than through death or disability. A copy of that Agreement is available from the Secretary of inTEST Corporation upon request."	
			 

			
	 	 
	
			7.

				
			Removal of Restrictive Legend. When the vesting requirements on any Shares have been met, the Company shall cause a replacement stock certificate for those Shares, without the legend referred to in Section 6, to be issued and delivered to you, as soon as practicable.

			
	 	 
	
			8.

				
			No Right to Continued Service on the Board of Directors. Neither the award of Shares pursuant to this Agreement nor any provision of this Agreement shall be construed to give you any right to continued service as a member of the Board of Directors.

			
	 	 
	
			9.

				
			Forfeiture. Shares issued to you under this Agreement not previously vested hereunder shall be forfeited as of the date your engagement to provide services to the Company and all Affiliates thereof terminates. Following such a forfeiture, you shall have no rights whatsoever with respect to the Shares forfeited.

			
	 	 
	
			10.

				
			Voting, Dividend and Tender Offer Rights. You shall have voting and tender offer rights with respect to Shares issued to you under this Agreement whether or not such Shares are vested or unvested. Any cash dividends, however, shall accrue and be paid when the Shares underlying the award of Restricted Stock vest. Stock dividends shall be issued to you and shall become vested under the same terms and conditions as the Shares under the award of Restricted Stock to which they pertain.

			
	 	 
	
			11.

				
			Withholding of Applicable Taxes. It shall be a condition to the Company’s obligation to deliver Common Stock to you pursuant to this Agreement that you pay, or make provision satisfactory to the Company for the payment of, any taxes (other than stock transfer taxes) the Company is obligated to collect with respect to the delivery of Common Stock under this Agreement, including any applicable federal, state, or local withholding or employment taxes.

			
	 	 
	
			12.

				
			Amendment. This Agreement may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and you.

			

 

	
			13.

				
			Governing Law. This Agreement shall be construed in accordance with the laws of the State of Delaware.

			

 

 

 

[Signature Page Follows]

 

 

 

 

The undersigned hereby acknowledges this award of restricted stock on behalf of the Company.

 

 

 

	 	
			inTEST CORPORATION

			 

			 

			 

			By: ______________________________

			       Hugh T. Regan, Jr.

			       Secretary, Treasurer and Chief Financial Officer

			 

			

			Date: ____________________

			

 

To indicate your acceptance and agreement to this Restricted Stock Award, please execute and immediately return to the Company the enclosed duplicate original of this Agreement.

 

ACCEPTED AND AGREED TO:

 

	
			

			_______________________________________

				
			

			Date:   ________________ex_154181.htm

EXHIBIT 10.4

 

inTEST Corporation

____________________

 

Incentive Stock Option Agreement

_____________________

 

inTEST Corporation, a Delaware corporation (“inTEST” or the “Company”), hereby grants to _________________ (the “Optionee”) an option to purchase a total of __________________ (_________) shares of the Common Stock (the “Option Shares”) of inTEST, at the price and on the terms and conditions set forth herein and in all respects subject to the terms, conditions and provisions of the inTEST Corporation Second Amended and Restated 2014 Stock Plan (the “Plan”) applicable to incentive options, which terms, conditions and provisions are hereby incorporated herein by reference. Unless the context herein otherwise requires, the capitalized terms not defined herein shall have the meaning provided in the Plan.

 

	
			1.

				
			Nature of Option

			
	 	 
	
			 

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

			
	 	 
	
			2.

				
			Term of Option

			
	 	 
	
			 

				
			This Option is granted as of ______________ (the “Date of Grant”) and it may not be exercised later than the close of business on ________________ (the “Expiration Date”); however, this Option is subject to earlier termination as set forth in this Option Agreement and in the Plan.

			
	 	 
	
			3.

				
			Option Exercise Price

			
	 	 
	
			 

				
			The Option exercise price (“Option Price”) is ___________________________ ($____) per Option Share.

			
	 	 
	
			4.

				
			Exercise of Option

			
	 	 
	
			 

				
			This Option is exercisable during its term only in accordance with the terms, conditions and provisions of the Plan and this Option Agreement as follows:

			
	 	 
	
			 

				
			(i)

				
			Right to Exercise. This Option shall vest _________________________________. The Optionee must be in the employ of inTEST or any of its Affiliates on such anniversary date in order for the Option to vest; provided, however, if, upon retirement of active employment with the Company or its Affiliates, the Optionee’s age plus years of service are equal to or greater than seventy-five years, and the Optionee signs and agrees to be bound by the Company’s or an Affiliate’s post-employment non-competition, non-solicitation and non-disclosure agreement, the Option shall continue to vest according to this Section 4. This Option may be exercised, in whole or in part, up to the amount vested through the date of exercise to the extent not earlier exercised and otherwise in accordance with the terms, conditions and provisions of the Plan and this Option Agreement.

			
	 	 	 
	
			 

				
			(ii)

				
			Method of Exercise. When exercisable, this Option shall be exercised only upon receipt by inTEST, in form and substance acceptable to inTEST, of (A) written notice of such exercise and (B) payment in full of the Option Price for the Option Shares to be purchased and any additional amount described in Section 13 below. Each such notice shall (A) specify the number of Option Shares to be purchased; (B) satisfy the securities law requirements set forth in the Plan; and (C) contain a statement by the Optionee acknowledging that the Option will not be treated as an incentive stock option for federal income tax purposes if the Option is exercised more than three (3) months after the termination of employment, or if the Option Shares are sold or otherwise disposed of within one (1) year of exercise or two (2) years from the Date of Grant.

			

 

 

 

 

	
			 

				
			(iii)

				
			Restrictions on Exercise. This Option may not be exercised if the issuance of the option Shares upon such exercise would constitute a violation of any applicable federal or state securities laws or regulations or other laws or regulations. As a condition to the exercise of this Option, inTEST may require the Optionee to make any representations and warranties to inTEST as inTEST deems necessary or appropriate under any applicable law or regulation.

			
	 	 	 
	 	
			(iv)

				
			Acceleration of Option Vesting. This Option shall immediately vest and be exercisable in the event: (A) the Optionee dies; (B) the Optionee incurs a Disability; or (C) a Change of Control occurs; and (1) the Unrelated Person involved in such Change of Control does not assume or substitute Awards granted under the Plan; (2) the Optionee’s employment is terminated by the Unrelated Person within two years following the Change of Control other than for Cause; or (3) the Optionee resigns for Good Reason following a Change of Control. An employee who has retired from active employment according to Section 4(i) of this Option Agreement and whose Award is not assumed or substituted by an Unrelated Person following a Change of Control is considered to be terminated without Cause. For purposes of this Option Agreement, the term “Disability” shall mean a condition of total mental or physical incapacity for further performance of a person’s duty with the Company that the Committee determines, on the basis of competent medical evidence, is likely to be permanent and constitutes a “disability” within the meaning of section 22(e)(3) of the Internal Revenue Code.

			
	 	 	 
	
			5.

				
			Payment for Option Shares

			
	 	 
	
			 

				
			The Optionee shall pay for the shares (i) in cash, (ii) by bank check payable to the order of inTEST or (iii) by such other mode of payment as inTEST may approve.

			
	 	 
	
			6.

				
			Transfer of Option Shares

			
	 	 
	
			 

				
			Option Shares may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner without compliance with all applicable federal and state securities laws and regulations, and an appropriate legend referring to any restrictions on transfer and any other restrictions imposed herein or under the Plan may be endorsed on the certificates representing Option Shares.

			
	 	 
	
			7.

				
			Disqualifying Disposition

			
	 	 
	
			 

				
			The Optionee shall notify inTEST if any Option Shares received upon exercise of this Option are sold, assigned, gifted, transferred or disposed of in any manner within one (1) year of exercise or two (2) years from the Date of Grant (a “Disqualifying Disposition”). In the event of a Disqualifying Disposition, the Optionee shall, upon request of inTEST, provide inTEST with the amount of any federal, state or local taxes that inTEST is required to withhold with respect to such Disqualifying Disposition. If inTEST does not withhold income taxes from the Optionee with respect to a Disqualifying Disposition, the Optionee shall timely pay all income taxes resulting from such Disqualifying Disposition, shall provide inTEST with such information as requested by inTEST to substantiate the payment of such taxes, and shall indemnify inTEST against penalties or other damages imposed upon inTEST for failure to withhold taxes, to the extent such penalties or damages could have been reduced or offset had the Optionee paid his or her income taxes attributable to the Disqualifying Disposition or are otherwise attributable to the Optionee's failure to pay his or her taxes.

			

 

 

 

 

	
			8.

				
			Transfer of Option

			
	 	 
	
			 

				
			This Option may not be sold, pledged, assigned, hypothecated, gifted, transferred or disposed of in any manner, either voluntarily or involuntarily by operation of law, other than by will or by the laws of descent or distribution, and may be exercised during the lifetime of the Optionee only by the Optionee. Subject to the foregoing, the terms of the Plan and the terms of this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

			
	 	 
	
			9.

				
			Termination of Options

			
	 	 
	
			 

				
			This Option shall expire as set forth above and may not be exercised later than the Expiration Date. Notwithstanding the foregoing, this Option may not be exercised after the first to occur of the following:

			
	 	 
	
			 

				
			(i)

				
			five years from the Date of Grant, if on such date the Optionee owns directly or by attribution under the Code, shares possessing more than ten percent (10%) of the total combined voting power of all classes of stock of inTEST;

			
	 	 	 
	
			 

				
			(ii)

				
			the date set by the Board of Directors of inTEST (the “Board of Directors”) to be an accelerated expiration date after a finding by the Board of Directors that a change in the financial accounting treatment for options from that in effect on the date the Plan was adopted materially adversely affects inTEST or, in the determination of the Board of Directors, may materially adversely affect inTEST in the foreseeable future, provided the Board of Directors may take whatever action, including acceleration of any exercise provisions, it deems necessary should it make the determination referred to above;

			
	 	 	 
	
			 

				
			(iii)

				
			expiration of one (1) year from the date the Optionee's employment or service with inTEST (or any of its Affiliates) terminates for any reason other than if the Optionee has been discharged from employment with inTEST for Cause, in which case, this Option shall expire immediately; or

			
	 	 	 
	
			 

				
			(iv)

				
			in the event of a Change of Control, the Expiration Date of any Option which has vested may be accelerated to a date not earlier than thirty (30) days after notice of such acceleration is given to the Optionee, and any Option which has not vested may be terminated.

			
	 	 	 
	
			10.

				
			Amendment of Option

			
	 	 
	
			 

				
			inTEST has the right to amend this Option, subject to the Optionee's consent if such amendment is not favorable to the Optionee, except that the consent of the Optionee shall not be required for any amendment made pursuant to the Plan.

			
	 	 
	
			11.

				
			Amendment of the Plan

			
	 	 
	
			 

				
			Subject to certain restrictions contained in the Plan, the Board of Directors of inTEST may amend the Plan from time to time in such manner as it may deem advisable.

			
	 	 
	
			12.

				
			Continued Employment

			
	 	 
	
			 

				
			The grant of this Option shall not be construed to imply or constitute evidence of any agreement, express or implied, on the part of inTEST to continue the employment of the Optionee with inTEST or any of its Affiliates.

			
	 	 
	
			13.

				
			Withholding of Taxes

			
	 	 
	
			 

				
			If required by inTEST, the Optionee shall, as a condition to the exercise of the Option and the issuance of Option Shares or the transfer of the Option Shares, remit to inTEST the amount of any federal, state or local taxes, including FICA taxes and other employment taxes, required to be withheld or paid under applicable law. To the extent that such taxes are not collected upon the exercise of the Option, inTEST may withhold a portion of the Option Shares or take whatever other action it deems necessary to collect all required taxes due upon the exercise of the Option or transfer of the Option Shares.

			

 

	
			14.

				
			Entire Agreement

			
	 	 
	
			 

				
			This Option Agreement, together with the Plan, represents the entire agreement between the parties.

			
	 	 
	
			15.

				
			Governing Law

			
	 	 
	
			 

				
			This Option Agreement shall be construed in accordance with the laws of the State of Delaware.

			

 

 

 

[Signature Page Follows]

 

 

 

IN WITNESS WHEREOF, inTEST executes this Option Agreement as of the day and year set forth above.

 

 

 

 

	 	
			inTEST Corporation

			
	 	 
	 	 
	 	
			By: _______________________________

			Hugh T. Regan, Jr.

			Secretary, Treasurer and Chief Financial Officer 

			

 

 

 

 

ACKNOWLEDGMENT

 

 

 

The Optionee acknowledges receipt of a copy of the Plan and a copy of the Prospectus covering the Option Shares to be issued pursuant to the Plan, copies of which are attached hereto, and Optionee represents that he or she has read and is familiar with the terms, conditions and provisions thereof and hereby accepts the Option granted ______________ subject to all the terms, conditions and provisions thereof. The Optionee hereby agrees to accept as binding, conclusive and final, all decisions or interpretations of the Board of Directors or the Committee upon any questions arising under the Plan.

 

 

	Date:	 	 	
			 

			
	 	 	 	Name:
	 	 	 	 
	 	
			 

				 	
			Address:

			

 

 

 

NOTICE OF EXERCISE OF STOCK OPTION

 

	
			To:

				
			inTEST Corporation

			804 East Gate Drive, Suite 200

			Mt. Laurel, NJ 08054

			Attn: Chief Financial Officer

			

 

_____________, 20___

 

 

 

In accordance with Section 4 of the Incentive Stock Option Agreement granted as of ______________ (the “Option”), I hereby irrevocably elect to exercise the Option to purchase ____________________ Option Shares of the Common Stock of inTEST Corporation (the “Corporation”) at the exercise price of __________________ ________________ ($____) per Option Share and deliver herewith a bank check payable to the order of the Corporation for the aggregate exercise price of $__________________.

I agree to notify the Chief Financial Officer of the Corporation at the address set forth above, or at such other address as the Corporation may designate in the future, in the event I sell, assign, gift, transfer or otherwise dispose of any of the Option Shares within one (1) year of exercise or two (2) years from the Date of Grant (a “Disqualifying Disposition”).

I understand that any Disqualifying Disposition of the Option Shares will result in the Option not qualifying as an incentive stock option with respect to such Option Shares. If requested by the Corporation, I will provide the Corporation the amount of any taxes the Corporation is required to withhold as a result of a Disqualifying Disposition of Option Shares. Furthermore, the Option must be exercised within three (3) months following the termination of my employment with the Corporation in order to maintain the incentive stock option status with respect to Option Shares issuable upon such exercise.

 

 

 

	 	Signature*:	 	 
	 	Name*:

			Address:

			

			Phone:	 	 

 

 

*     The signature and name should correspond exactly with the name on the first page of the Option.

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