Document:

isdr_ex102.htm

EXHIBIT 10.2
   
 ISSUER DIRECT CORPORATION
  
 RESTRICTED STOCK UNIT AWARD AGREEMENT
  
 THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), is effective as of January 24, 2022 (the “Effective Date”), is between Issuer Direct Corporation, a Delaware corporation (the “Company”), and the individual identified on the signature page hereof (the “Participant”). 
  
 BACKGROUND 
   
 A. The Participant is currently an employee of the Company
   
 B. The Company desires to (i) provide the Participant with an incentive to remain as an employee of the Company, and (ii) increase the Participant’s interest in the success of the Company by granting restricted stock units (the “Restricted Stock Units”) to the Participant. 
   
 C. The grant of the Restricted Stock Units is (i) made subject to the terms and conditions of this Agreement, and (ii) not employment compensation nor an employment right. 
   
 AGREEMENT
   
 NOW, THEREFORE, in consideration of the covenants and agreements contained in this Agreement, the parties hereto, intending to be legally bound, agree as follows: 
  
 1. Grant of Restricted Stock Units. Subject to the provisions of this Agreement, the Company hereby grants to the Participant the number of Restricted Stock Units specified on the signature page of this Agreement. The Company shall credit to a bookkeeping account maintained by the Company, or a third party on behalf of the Company, for the Participant’s benefit the Restricted Stock Units, each of which shall be deemed to be the equivalent of one share of the Company’s common stock, par value $.001 per share (each, a “Share”). 
   
 2. Terms and Conditions. All of the Restricted Stock Units shall initially be unvested. 
   
 (a) Vesting. Provided Participant remains an employee of the Company, all of the Shares shall vest three years from the Effective Date (the “Vesting Schedule”). In the event of a Corporate Transaction (as defined in the Company’s 2014 Equity Incentive Plan, as amended), the Restricted Stock Units not previously vested shall immediately become vested.
   
 (b) Restrictions on Transfer. Until the applicable vesting date under the Vesting Schedule, no transfer of the Restricted Stock Units or any of the Participant’s rights with respect to the Restricted Stock Units, whether voluntary or involuntary, by operation of law or otherwise, shall be permitted. Unless the Company’s Board of Directors determines otherwise, upon any attempt to transfer any Restricted Stock Units or any rights in respect of the Restricted Stock Units before the applicable vesting date under the Vesting Schedule. 
   
 (c) Forfeiture. Upon termination of the Participant’s as an employee of the Company, the Participant shall forfeit any and all Restricted Stock Units which have not vested as of the date of such termination and such units shall revert to the Company without consideration of any kind. 
   
 3. Taxes. The Participant acknowledges that the tax laws and regulations applicable to the Restricted Stock Units and the disposition of the shares following the settlement of Restricted Stock Units are complex and subject to change. 
    
 	 
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 4. Securities Laws Requirements. The Company shall not be obligated to transfer any shares following the settlement of Restricted Stock Units to the Participant free of a restrictive legend if such transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as amended (the “Securities Act”) (or any other federal or state statutes having similar requirements as may be in effect at that time). 
   
 5. No Obligation to Register. The Company shall be under no obligation to register any shares as a result of the settlement of the Restricted Stock Units pursuant to the Securities Act or any other federal or state securities laws. 
   
 6. Protections Against Violations of Agreement. No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Restricted Stock Units by any holder thereof in violation of the provisions of this Units Agreement or the Certificate of Incorporation or the Bylaws of the Company, will be valid, and the Company will not transfer any shares resulting from the settlement of Restricted Stock Units on its books nor will any of such shares be entitled to vote, nor will any dividends be paid thereon, unless and until there has been full compliance with such provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable, available to enforce such provisions. 
   
 7. Rights as a Stockholder. The Participant shall not possess any rights of a stockholder underlying the Restricted Stock Units until the Restricted Stock Units have settled in accordance with the provisions of this Agreement. 
   
 8. Survival of Terms. This Agreement shall apply to and bind the Participant and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors. 
   
 9. Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand or sent by certified or registered mail, return receipt requested, postage prepaid, addressed, if to the Participant, to the Participant’s attention at the mailing address set forth at the foot of this Agreement (or to such other address as the Participant shall have specified to the Company in writing) and, if to the Company, to the Company’s office at One Glenwood Drive, Suite 1001, Raleigh, North Carolina 27603, Attention: Chief Financial Officer (or to such other address as the Company shall have specified to the Participant in writing). All such notices shall be conclusively deemed to be received and shall be effective, if sent by hand delivery, upon receipt, or if sent by registered or certified mail, on the fifth day after the day on which such notice is mailed. 
   
 10. Waiver. The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement. 
   
 11. Authority of the Administrator. The Company’s Board of Directors or Compensation Committee shall have full authority to interpret and construe the terms of this Agreement. The determination of the administrator as to any such matter of interpretation or construction shall be final, binding and conclusive. 
   
 12. Representations. The Participant has reviewed with his own tax advisors the applicable tax (U.S., foreign, state, and local) consequences of the transactions contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant understands that he (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement. 
    
 	 
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 13. Investment Representation. The Participant hereby represents and warrants to the Company that the Participant, by reason of the Participant’s business or financial experience (or the business or financial experience of the Participant’s professional advisors who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent of the Company, directly or indirectly), has the capacity to protect the Participant’s own interests in connection with the transactions contemplated under this Agreement. 
   
 14. Entire Agreement; Governing Law. This Agreement and the other related agreements expressly referred to herein set forth the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same agreement. The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of this Agreement. This Agreement shall be governed by, and construed in accordance with, the laws of Delaware. 
   
 15. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Agreement. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such unenforceable provision, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such determination by such judicial body shall not affect the enforceability of such provisions or provisions in any other jurisdiction. 
   
 16. Amendments; Construction. The Company may amend the terms of this Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Participant hereunder without his or her consent. Headings to Sections of this Agreement are intended for convenience of reference only, are not part of this Restricted Stock Units and shall have no effect on the interpretation hereof. 
   
 17. Acceptance. The Participant hereby acknowledges receipt of a copy of this Agreement. The Participant has read and understand the terms and provision thereof, and accepts the shares of Restricted Stock Units subject to all the terms and conditions of this Agreement. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Agreement. 
   
 18. Miscellaneous. 
   
 (a) No Rights to Grants or Continued Employment. The Participant acknowledges that the award granted under this Agreement is not employment compensation nor is it an employment right, and is being granted at the sole discretion of the Company’s Board of Directors or Compensation Committee. Neither this Agreement, nor any action taken or omitted to be taken hereunder or thereunder, shall be deemed to create or confer on the Participant any right to be retained as an employee of the Company or any subsidiary or other affiliate thereof, or to interfere with or to limit in any way the right of the Company or any affiliate or subsidiary thereof to terminate the employment of the Participant at any time. 
    
 	 
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 (b) No Restriction on Right of Company to Effect Corporate Changes. This Agreement 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 stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred, or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the assets or business of the Company, or any other corporate act or proceeding, whether of a similar character or otherwise. 
   
 (c) Assignment. The Company shall have the right to assign any of its rights and to delegate any of its duties under this Agreement to any of its affiliates. 
  
 [SIGNATURE PAGE FOLLOWS]
  
 	 
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 IN WITNESS WHEREOF, this Agreement is effective as of the date first referenced above. 
  
 	 ISSUER DIRECT CORPORATION 

	  
		  

	 By:
	  
	  

	 Name:
	 Brian R. Balbirnie
	  

	 Title:
	 Chief Executive Officer
	  

			  

	 PARTICIPANT
	  

	  
	  

	 Name:
	 Timothy Pitoniak
	  

	 Address: 
		  

	  
	  
	  

	  
	  
	  

   
 Social Security No: __________________________________
   
 Date of Grant: January 24, 2022
  
 Number of Shares of Restricted Stock Units: 20,000
   
 	 
	5isdr_ex103.htm

EXHIBIT 10.3
   
 ISSUER DIRECT CORPORATION
 INCENTIVE STOCK OPTION GRANT AND AGREEMENT
  
 THIS Incentive Stock Option Grant and Agreement (the “Agreement”), is effective as of January 24, 2022, made by and between Issuer Direct Corporation, a Delaware corporation (the “Company”), and the individual named below (“Optionee”). This Agreement is made pursuant to the terms and conditions of the Issuer Direct Corporation 2014 Equity Incentive Plan, as amended (the “Plan”), a copy of which is attached to this Agreement as Exhibit A, and the provisions of which are incorporated into this Agreement by reference. All terms not otherwise defined herein shall have the meanings set forth in the Plan. In the event of any conflict between this Agreement and the Plan, the terms of the Plan shall govern. The 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”).
  
 OPTIONEE NAME: Timothy Pitoniak                                                                                      
  
 DATE OF GRANT: January 24, 2022                                                                                     
  
 VESTING COMMENCEMENT DATE: January 24, 2023                                                       
   
 NUMBER OF SHARES OF COMMON STOCK (the “Shares”): 30,000                              
  
 EXERCISE PRICE:                  $[TBD] per share
  
 EXPIRATION DATE:              January 23, 2032                                                                     
  
 EARLY EXERCISE:                Yes __X___            No ______ 
  
 VESTING SCHEDULE:           Optionee’s right to exercise the option granted in this Agreement shall vest as follows:
  
 (a) Provided Optionee remains an Employee of the Company, the Shares shall vest as follows: over a four-year period, at a rate of 7,500 of the Shares on the first, second, third and fourth anniversary of the Date of Grant set forth above. Options shall be rounded down to the nearest whole Share.
  
 (b) In the event of Optionee’s death, disability or other termination of employment, the exercisability of this Option shall be governed by Section 11(d) of the Plan.
  
 (c) The Option may not be exercised for fractional shares or for less than one hundred shares (100) Shares unless the remaining number of Shares subject to exercise is less than 100.
  
 (d) Shares may not be exercised prior to the time they have vested (the “Unvested Shares”) in Optionee, unless and until a majority of the Company’s Board of Directors has approved such early exercise by Optionee; provided, however, in the event of a Corporate Transaction, any unvested and outstanding options shall become immediately exercisable prior to such Corporation Transaction.
  
 1. No Transfer or Assignment of Option. This Option and the rights and privileges conferred hereby shall not be transferred, assigned, pledged, or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment, or similar process. Upon any attempt to transfer, assign, pledge, hypothecate, or otherwise dispose of this option, or of any right or privilege conferred hereby, contrary to the provisions of this Agreement, or upon any attempted sale under any execution, attachment, or similar process upon the rights and privileges conferred hereby, this Option and the rights and privileges conferred hereby shall immediately become null and void.
  
 	 
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 2. Method of Exercise.
  
 (a) Notice. Optionee may exercise this Option by delivering a signed Notice of Exercise in substantially the form attached hereto to the officer of the Company designated in such notice. Such Notice of Exercise shall be accompanied by payment in full of the aggregate purchase price for the Shares as provided in Section 2(c). 
  
 (b) Restriction on Exercise. This Option may not be exercised if the issuance of the Shares upon such exercise or the method of payment of consideration for such Shares would constitute a violation of any applicable Federal or state securities law or any other law or regulation. Furthermore, the method and manner of payment of the Option Price will be subject to the rules under Part 207 of Title 12 of the Code of Federal Regulations (“Regulation G”) as promulgated by the Federal Reserve Board if such rules apply to the Company at the date of exercise. As a condition to the exercise of this Option, the Company may require Optionee to make any representation or warranty to the Company at the time of exercise of the Option as in the opinion of legal counsel for the Company may be required by any applicable law or regulation, including the execution and delivery of an appropriate representation statement. Accordingly, the stock certificates for the Shares issued upon exercise of this Option may bear appropriate legends restricting transfer.
  
 (c) Method of Payment. Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of Optionee:
  
 a. cash;
  
 b. certified or bank cashier’s check; or
  
 c. in the event there exists a public market for the Company’s Common Stock on the date of exercise, by surrender of shares of the Company’s Common Stock; provided that if such shares were acquired upon exercise of an incentive stock option, Optionee must have first satisfied the holding period requirements under Section 422(a)(1) of the Code. If payment is made with already owned shares, payment shall be made as follows:
  
 (i)   Optionee shall deliver to the Secretary of the Company a written notice which shall set forth the portion of the purchase price Optionee wishes to pay with Common Stock, and the number of shares of such Common Stock the Optionee intends to surrender pursuant to the exercise of this Option, which shall be determined by dividing the aforementioned portion of the purchase price by the Fair Market Value per Share of the Common Stock at the close of the last business day immediately preceding the date of exercise of the Option, as determined by the Committee;
  
 (ii) Fractional shares shall be disregarded, and Optionee shall pay any balance in cash;
  
 (iii) The written notice shall be accompanied by a duly endorsed blank stock power with respect to the number of Shares set forth in the notice, and the certificate(s) representing said Shares shall be delivered to the Company at its principal offices within three (3) working days from the date of the notice of exercise;
  
 	 
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 (iv) Optionee hereby authorizes and directs the Secretary of the Company to transfer so many of the Shares represented by such certificate(s) as are necessary to pay the purchase price in accordance with the provisions herein;
  
 (v) If any such transfer of Shares requires the consent of some agency under the securities laws of any state, or an opinion of counsel for the Company or Optionee that such transfer may be effected under applicable Federal and state securities laws, the time periods specified herein shall be extended for such periods as the necessary request for consent to transfer is pending before said Commission or other agency, or until counsel renders such an opinion, as the case may be. All parties agree to cooperate in making such request for transfer, or in obtaining such opinion of counsel, and no transfer shall be effected without such consent or opinion if required by law; and
  
 (vi) Notwithstanding any other provision herein, Optionee shall only be permitted to pay the purchase price with shares of the Company’s Common Stock owned by him as of the exercise date in the manner and within the time periods allowed under 17 CFR § 240.16b-3 promulgated under the Securities Exchange Act of 1934 as such regulation is presently constituted, as it is amended from time to time, and as it is interpreted now or hereafter by the Securities and Exchange Commission.
  
 3. Term and Expiration. This Option, if it has not earlier expired pursuant to the terms of this Agreement or the Plan, shall expire in all events on the 10th anniversary of the Date of Grant set forth on the first page hereof.
  
 4. Compliance with State and Federal Securities Laws. No Shares shall be issued upon the exercise of this Option unless and until the Company has determined that all applicable provisions of state and federal securities laws have been satisfied.
  
 5. Adjustment Upon Changes in Capitalization or Merger. The number of Shares covered by this Option shall be adjusted in accordance with the provisions of Section 16 of the Plan in the event of changes in the capitalization or organization of the Company, or if the Company is a party to a merger or other corporate reorganization.
  
 6. Not Employment Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue in the employ of the Company (or any Subsidiary or Parent) or shall interfere with or restrict in any way the rights of the Company (or any Subsidiary or Parent), which are hereby expressly reserved, to discharge Optionee at any time for any reason whatsoever, with or without cause, subject to the provisions of applicable law. This is not an employment contract.
  
 7. Income Tax Withholding. Optionee authorizes the Company to report income and to withhold in accordance with applicable law from any compensation payable to him or her any taxes required to be withheld by Federal, state or local laws as a result of the exercise of this Option. Furthermore, in the event of any determination that the Company has failed to withhold a sum sufficient to pay all withholding taxes due in connection with the exercise of this Option, Optionee agrees to pay the Company the amount of any such deficiency in cash within five (5) days after receiving a written demand from the Company to do so, whether or not Optionee is an Employee or service provider of the Company at that time.
  
 8. Miscellaneous Provisions.
  
 (a) No Rights as a Stockholder. Optionee shall have no rights as a stockholder with respect to any Shares subject to this Option until the Shares have been issued in the name of Optionee.
  
 	 
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 (b) Confidentiality. Optionee agrees and acknowledges that the terms and conditions of this Agreement, including without limitation the number of Shares for which options have been granted, are confidential. Optionee agrees that he will not disclose these terms and conditions to any third party, except to Optionee’s financial or legal advisors, tax preparer or family members, unless such disclosure is required by law.
  
 (c) Governing Law. This Agreement and the rights and duties of the parties hereunder shall be governed and controlled as to validity, enforcement, interpretation, construction, effect and in all other respects by the internal laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule.
  
 (d) Entire Agreement. This Agreement, and the Plan, together with those documents that are referenced in this Agreement, are intended to be the final, complete, and exclusive statement of the terms of the agreement between Optionee and the Company with regard to the subject matter of this Agreement. This Agreement and the Plan supersede all other prior agreements, communications, and statements, whether written or oral, express or implied, pertaining to that subject matter. This Agreement and the Plan may not be contradicted by evidence of any prior or contemporaneous statements or agreements, oral or written, and may not be explained or supplemented by evidence of consistent additional terms.
  
 (e) Counterparts. This Agreement may be executed in one or more counterparts all of which together shall constitute one and the same instrument.
  
 [SIGNATURE PAGE FOLLOWS]
   
 	 
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 IN WITNESS WHEREOF, the Company and Optionee have executed this Incentive Stock Option Grant and Agreement as of the date first above written.
  
 	 	ISSUER DIRECT CORPORATION	
	 	 	 	 
		By:		
	  
	 Name:
	Brian R. Balbirnie	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	  
	 OPTIONEE 
	  

	  
	  
	  
	  

	  
	  
	  

	  
	 (signature)
	  
	  

	  
	  
	  
	  

	  
	 Name: 
	 Timothy Pitoniak
	  

	  
	  
	  
	  

	  
	  
	 Address: ________________________________________________
	  

	  
	  
	 _______________________________________________
	  

	  
	 Social Security No: ________________________________________________ 
	  

	  
	  
	  
	  

   
   
 	 
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 FORM OF NOTICE OF EXERCISE
  
 Issuer Direct Corporation
 [Current Address at Time of Exercise]
  
 Ladies and Gentlemen:
  
 This constitutes notice under my stock option that I elect to purchase the number of shares for the price set forth below.
  
 Type of Option (check one): _____Incentive _____Nonstatutory
  
 Stock Option Agreement dated: ________________
  
 Number of shares exercised: ________________
  
 Early exercise election: Yes ______ No _______
 (if permitted under Stock Option Agreement)
  
 Total Exercise Price: $  ________________
  
 By this exercise, I agree (i) to provide the Company with such additional documents as it may require, if any, in accordance with the provisions of the Issuer Direct Corporation 2015 Equity Incentive Plan, (ii) to pay (in the manner designated by the Company) any withholding obligation relating to this option exercise, (iii) if this notice relates to the exercise of unvested shares under an early exercise option, to immediately execute and deliver a Stock Restriction Agreement, and (iv) if this exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days after the date of any sale or other disposition of any shares issued upon exercise of this option if such sale or other disposition occurs within two (2) years after the Date of Grant of this option or within 1 year of the date of this notice of exercise.
  
 I acknowledge that the shares being purchased by me hereunder have not been registered under the Securities Act of 1933, as amended (the “Act”) and are “restricted securities” under Rule 701 and Rule 144 promulgated under the Act. I warrant and represent to the Company that I have no present intention of distributing or selling the Shares, except as permitted under the Act and any applicable state securities laws.
  
 I enclose my check for $______________ in full payment of the purchase price of said shares. Please register said shares in my name.
  
 Dated: __________________, 20___
  
  
   
 	  
	  
	  
	  

	  
	  
	 Signature
	  

	  
	  
	  
	  

	  
	  
	  
	  

	  
	  
	  Name (Printed)
	  

	  
	  
	  
	  

	  
	  
	  
	  

	  
	  
	    
  
	  

	  
	  
	 Address
	  

	  
	  
	  
	  

	  
	  
	  
	  

	  
	  
	 Social Security No. _______________________________________
	  

   
 	 
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