Document:

Exhibit 10.4

Exhibit 10.4

DIGITILITI, INC.

2010 Long-Term Incentive Plan

ADDITIONAL DIRECTOR

NON-QUALIFIED STOCK OPTION AGREEMENT

	 	 	 
	OPTIONEE:

	 	[                                        ]
	 
	 	 
	GRANT DATE:

	 	[                                        ]
	 
	 	 
	NUMBER OF OPTION SHARES:

	 	 5,000
	 
	 	 
	EXERCISE PRICE PER SHARE:

	 	$ [                    ] per Share
	 
	 	 
	EXPIRATION DATE:

	 	[                                        ]

THIS AGREEMENT is made as of the Grant Date set forth above by and between Digitiliti, Inc., a
Delaware corporation (the “Company”), and the Optionee named above, who is an non-employee Director
of the Company (the “Optionee”).

The Company desires, by affording the Optionee an opportunity to purchase shares of its Common
Stock, par value $0.001 per share (the “Common Stock”), as hereinafter provided, to carry out the
purpose of the Digitiliti, Inc. 2010 Long-Term Incentive Plan (the “Option Plan”). Any capitalized
term used herein that is not expressly defined herein shall have the meaning ascribed to it in the
Option Plan.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, and for other
good and valuable consideration, the parties hereby agree as follows:

1. Grant of Option. The Company hereby grants to the Optionee the right and option (the
“Option”) to purchase all or any part of the aggregate number of shares of Common Stock set forth
above (the “Option Shares”) (such number being subject to adjustment as provided in Section 8
hereof) on the terms and subject to the conditions set forth in this Agreement. This Option is
not 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. Purchase Price. The per share purchase price of the Option Shares shall be the Exercise
Price Per Share set forth above (such Exercise Price Per Share being subject to adjustment as
provided in Section 8 hereof).

3. Term and Exercise of Option.

(a) The term of this Option shall commence on the Grant Date set forth above and shall
continue until the Expiration Date set forth above, unless earlier terminated as provided
herein.

 

 

 

(b) Subject to the earlier termination of this Option pursuant to its terms and to the
terms of the Plan, this Option shall vest and become exercisable in full on the first annual
anniversary date of the Grant Date, but only if the Optionee then is a director of the
Company.

(c) To exercise this Option, the Optionee shall give written notice to the Company, to
the attention of its Chief Executive Officer or other designated agent, in substantially the
form attached hereto as Exhibit A, and the Optionee shall deliver payment in full
for the Option Shares with respect to which this Option is then being exercised, as provided
in Section 4(a) below, as well as the original Option.

(d) Neither the Optionee nor the Optionee’s legal representatives, as the case may be,
will be, or will be deemed to be, a holder of any Option Shares for any purpose unless and
until certificates for such Option Shares are issued to the Optionee or the Optionee’s legal
representatives under the terms of the Option Plan.

4. Limitations on Exercise of Option.

(a) The exercise of this Option will be contingent upon receipt of the full Exercise
Price of such Option Shares. Payment of the Exercise Price shall be made in cash or by a
certified or cashier’s check. However, in its sole discretion, the Company may accept
previously acquired shares of Common Stock of the Company that have been owned by the
Optionee for at least six (6) months, which shares have an aggregate Fair Market Value on
the date of exercise which is not less than the total Exercise Price, or shares of Common
Stock issuable upon the exercise of this Option, or a combination of cash and such shares of
Common Stock, in payment of the Exercise Price. No Option Shares will be issued until full
payment therefor has been made and the Optionee has executed any and all agreements that the
Company may require the Optionee to execute.

(b) The issuance of Option Shares upon the exercise of this Option shall be subject to
all applicable laws, rules, and regulations. If, in the opinion of the Board of Directors
of the Company or a Committee of the Board of Directors, (i) the listing, registration or
qualification of the Option Shares upon any securities exchange or under any state or
federal law, (ii) the consent or approval of any regulatory body, or (iii) an agreement of
the Optionee with respect to the disposition of the Option Shares, is necessary or desirable
as a condition to the issuance or sale of the Option Shares, this Option shall not be
exercised and/or the Option Shares shall not be sold unless and until such listing,
registration, qualification, consent, approval or agreement is effected or obtained in form
satisfactory to the Board of Directors or the Committee.

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

6. Termination of Status as a Director. If the Optionee ceases to be a Director of the
Company, the Optionee shall have the shorter of one (1) year after such termination (“Termination
Exercise Period”) or until the Expiration Date to exercise any portion of the Option that was
vested on such termination date, but the unvested portion of the Option shall automatically
terminate and be immediately forfeited, and neither the Optionee nor any of the Optionee’s heirs,
personal representatives, successors or assigns shall have any rights with respect to such unvested
portion of the Option.

 

2

 

7. Termination of Status as a Director due to Death. If the Optionee ceases to be a Director
of the Company due to Optionee’s death, this Option may be exercised to the same extent that the
Optionee would have been entitled to exercise it at the date of death and may be exercised within a
period of one (1) year after the date of death, but in no case later than the Expiration Date
set forth above. In such event, this Option shall be exercisable only by the executors or
administrators of the Optionee or by the person or persons to whom the Optionee’s rights under the
Option shall pass by the Optionee’s will or the laws of descent and distribution. Any portion of
an Option that is not exercisable at the time of an Optionee’s death shall automatically terminate.
Notwithstanding the above, if the Optionee’s status as a Director of the Company is terminated
prior to Optionee’s death under Section 6 above but then the Optionee dies before the expiration
of the Termination Exercise Period, this Option may be exercised to the same extent that the
Optionee would have been entitled to exercise it at the date of death and may be exercised the
shorter period of the remainder of the Termination Exercise Period or until the Expiration Date.

8. Adjustments. In the event of any change in the outstanding shares of Common Stock by reason
of any stock dividend, stock split, reverse stock split, reclassification, combination, exchange of
shares, or other similar recapitalization of the Company, there shall be an appropriate and
proportionate adjustment to the number of Option Shares and the per share Exercise Price Per Share
hereunder so that the Optionee then shall receive for the aggregate Exercise Price paid by the
Optionee upon exercise of this Option the number of shares the Optionee would have received if this
Option had been exercised before such recapitalization event occurred. No adjustment shall be made
under this Section 8 upon the issuance by the Company of any warrants, rights, or options to
acquire additional Common Stock or of securities convertible into Common Stock unless such
warrants, rights, options or convertible securities are issued to all of the Company’s shareholders
on a proportionate basis.

9. Effect of Certain Transactions. Notwithstanding any provision in this Option to the
contrary, immediately before the effective time of any of the events described in Sections 9(a)
through (d) below, the portion of this Option that is not vested shall immediately and
automatically vest and, to the extent not exercised, the Option shall be automatically converted
into an Option to acquire the kind and amount of shares of stock or other securities or property
that the Optionee would have owned or have been entitled to receive immediately after the
occurrence of the event, had the Option been exercised in full immediately before the effective
time of such event; provided, however, that the Expiration Date of the Option shall remain
unchanged, and, in any such case, appropriate adjustment shall be made in the application of the
provisions of this Option with respect to the rights and interests thereafter of the Optionee, to
the end that the provisions set forth in this Option shall thereafter correspondingly be made
applicable, as nearly as may reasonably be, in relation to any shares of stock or other securities
or property thereafter deliverable on the exercise of this Option:

(a) The sale, lease, exchange or other transfer, directly or indirectly, of all or
substantially all of the assets of the Company (in one transaction or in a series of
related transactions) to a person or entity that is not controlled by the Company,

(b) The approval by the Company’s shareholders of any plan or proposal for the
liquidation or dissolution of the Company;

(c) Any person or entity becomes the “beneficial owner” (as defined in Rule 13d-3
under the Securities Exchange Act of 1934, as amended (“Exchange Act”)), directly or
indirectly, of more than fifty percent (50%) of the combined voting power of the
outstanding securities of the Company ordinarily having the right to vote at
elections of directors who were not beneficial owners of at least fifty percent
(50%) of such combined voting power as of the date the Company’s Board of Directors
adopted the Option Plan, and

 

3

 

(d) A merger or consolidation to which the Company is a party if the shareholders of
the Company immediately prior to the effective date of such merger or consolidation
have, solely on account of ownership of securities of the Company at such time,
“beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act) immediately
following the effective date of such merger or consolidation of securities of the
surviving company representing less than fifty percent (50%) of the combined voting
power of the surviving corporation’s then outstanding securities ordinarily having
the right to vote at elections of directors.

Notwithstanding any provision in the Option Plan or this Option Agreement to the contrary, the
Board of Directors or the Committee shall not have the power or right, either before or after the
occurrence of an event described in subparagraph (a) through (d) above, to rescind, modify or amend
the provisions of this Section 9 without the consent of the Optionee.

10. Interpretation. The interpretation and construction of any provision of the Option Plan
and this Option shall be made by the Board of Directors or the Committee and shall be final,
conclusive and binding on the Optionee and all other persons.

11. Definitions; Option Plan Governs. This Option is in all respects subject to and governed
by all of the provisions of the Option Plan.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its corporate name
by its duly authorized officer as of the Grant Date set forth above.

	 	 	 	 	 
	 	COMPANY:

Digitiliti, Inc.

 	 
	 	By  	 	 
	 	 	[Name of Officer of the Company] 	 
	 	 	Its: [Title] 	 

 

4

 

EXHIBIT A

NOTICE OF EXERCISE OF

STOCK OPTION

TO:

FROM:

DATE:

RE:      Exercise of Stock Option

I
hereby exercise my option to purchase ________  shares of Common Stock at
 $_______ per share (total
exercise price of $______). This notice is given in accordance with the terms of my Additional Director
Non-Qualified Stock Option Agreement (“Agreement”) dated
 _____. The option price and vested
amount is in accordance with Sections 2 and 3 of the Agreement.

Check one:

	 	 	 
	o
	 	Enclosed is cash, or a cashier’s or certified check payable to Digitiliti, Inc. for the total exercise price of the shares
being purchased.
	 
	 	 
	o
	 	Attached is a certificate(s) for
______  shares of common stock duly endorsed in blank
and surrendered for the exercise price of the shares being purchased.*

	 	 	 
	*	 	The use of this alternative is subject to the approval of Digitiliti, Inc.

Please prepare the stock certificate in the following name(s):

Sincerely,

	 	 	 
	 

(Signature)

	 	 
	 
	 	 
	 

(Print or Type Name)

	 	 

Letter and consideration

received on                                       
                    

(effective date of exercise)Exhibit 10.5

Exhibit 10.5

DIGITILITI, INC.

2010 Long-Term Incentive Plan

Restricted Stock Award Agreement

	 	 	 
	PARTICIPANT:

	 	[                                        ]
	 
	 	 
	GRANT DATE:

	 	[                                        ]
	 
	 	 
	NUMBER OF RESTRICTED SHARES:

	 	[                                        ]
	 
	 	 
	RESTRICTED STOCK AWARD REFERENCE NUMBER:

	 	RS- [                                 ]
	 
	 	 
	EXPIRATION DATE:

	 	[                                        ]

THIS AGREEMENT is made as of the Grant Date set forth above by and between Digitiliti, Inc., a
Delaware corporation (the “Company”), and the Participant named above pursuant to the terms of the
Digitiliti, Inc. 2010 Long-Term Incentive Plan (the “Plan”). Any capitalized term used herein that
is not expressly defined herein shall have the meaning ascribed to it in the Plan.

The Company desires, by granting to the Participant shares of the Company’s common stock, par
value $0.001 per share (the “Common Stock”), as hereinafter provided, to provide Participant with
incentive to achieve corporate objectives.

NOW, THEREFORE, in consideration of the provision of services by Participant to the Company,
the mutual covenants hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1. Grant of Shares of Restricted Stock. The Company hereby grants to the Participant the number of
shares of Common Stock set forth above (the “Restricted Stock”) on the terms and conditions set
forth in this Agreement.

2. Restrictions on Transfer. The shares of Restricted Stock may not be sold, assigned, transferred,
pledged or otherwise encumbered by the Participant until such shares of Restricted Stock are vested
as hereinafter provided. Any attempt to dispose of shares of Restricted Stock in a manner contrary
to these restrictions shall be void and of no force or effect.

3. Vesting and Forfeiture.

a. The Shares of Restricted Stock shall vest as follows: [describe vesting schedule/
performance requirements]

b. If the Participant’s active employment or other service with the Company or with an
Affiliate is terminated for any reason before the shares of Restricted Stock are vested,
including because of the disability of the Participant but not upon the death of the
Participant, all unvested shares of Restricted Stock shall immediately and automatically be
forfeited to the Company, and
neither the Participant nor any of the Participant’s heirs, personal representatives,
successors or assigns shall have any rights with respect to such unvested shares of
Restricted Stock.

 

 

 

c. Upon the Participant’s death, all unvested shares of Restricted Stock shall immediately
and automatically become fully vested, and the restrictions on said shares shall terminate,
for the benefit of the Participant’s heirs, personal representatives and/or legatees
according to the Participant’s will or the laws of descent and distribution.

d. Upon the effective date of a Change in Control, all unvested shares of Restricted Stock
shall immediately and automatically become fully vested, and the restrictions on said shares
shall terminate.

4. Term. This award of Restricted Stock shall terminate and be of no force or effect as to any
shares of Restricted Stock not vested on or before the Expiration Date.

5. Stock Certificates.

a. The Company will issue a stock certificate in the name of the Participant representing
the shares of Restricted Stock granted under this Plan. The Participant agrees that the
Company will hold such stock certificate in custody until the shares of Restricted Stock
vest or terminate and are forfeited, and that the certificate may bear an appropriate legend
referring to the terms, conditions and restrictions applicable to the grant of shares of
Restricted Stock substantially in the following form:

The transferability of the shares of common stock represented by
this certificate is subject to the terms and conditions of the
Digitiliti, Inc. 2010 Long-Term Incentive Plan and a Restricted
Stock Award Agreement entered into under such Plan between the
registered owner of this stock certificate and Digitiliti, Inc.
Copies of such Plan and Agreement are on file at the offices of
Digitiliti, Inc.

b. As a condition of this award, the Participant agrees that, simultaneously with the
execution of this Agreement, the Participant will execute and deliver to the Company a stock
power in the form attached hereto as Exhibit A, endorsed in blank, relating to each
certificate evidencing the shares of Restricted Stock.

6. Consideration for Restricted Shares. The Participant is not required to pay any consideration
to the Company or its Affiliates upon the grant or vesting of the shares of Restricted Stock other
than the rendering of services for the Company.

7. Dividends. The Participant shall have the right to receive dividends and other distributions
with respect to the shares of Restricted Stock; provided, however, that all dividends in stock, all
stock rights and all stock issued upon split-ups or reclassifications shall be subject to the same
restrictions as the shares Restricted Stock upon which such stock dividends, rights or additional
shares are issued, and shall be held in custody by the Company until the restrictions thereon shall
have lapsed.

8. Employment and Retention. The shares of Restricted Stock granted hereunder will not confer upon
the Participant any right with respect to continuance of employment or other retention by the
Company, nor will they interfere in any way with the Company’s right to terminate Participant’s
employment or other retention at any time for any reason or for no reason.

 

 - 2 - 

 

9. Income Tax Withholding; Tax and Financial Advice. The Company shall have the right to require
the payment (through withholding from the Participant’s salary or otherwise) of any federal, state
or local taxes required by law to be withheld with respect to the grant of the shares of Restricted
Stock or the vesting of such shares of Restricted Stock. The Participant acknowledges and
represents to the Company that the Participant has obtained advice with respect to the tax and
other financial consequences of the grant of the shares of Restricted Stock including, without
limitation, advice with respect to the election that the Participant may make under Section 83(b)
of the Code.

10. Plan Governs. The provisions of this Restricted Stock Agreement are subject to the Plan, and
if any provision of this Restricted Stock Agreement conflicts with the Plan, the provisions of the
Plan shall govern.

11. Interpretation. The interpretation and construction of any provision of this Restricted Stock
Agreement, including whether vesting has occurred, shall be made by the Committee and shall be
final, conclusive and binding on the Participant and all other persons.

 

 - 3 - 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its corporate name by
its duly authorized officers and the Participant has executed this Agreement, as of the Grant Date
set forth above.

	 	 	 	 	 	 	 	 	 
	 	 	DIGITILITI, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Signature	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name Typed or Printed	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title Typed or Printed	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	PARTICIPANT:
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name Typed or Printed	 	 

 

 - 4 - 

 

EXHIBIT A

STOCK POWER

(Assignment Separate from Certificate)

For Value Received,                                          hereby sells, assigns and transfers unto
                                     
    (_________) shares of common stock of Digitiliti, Inc. (the “Company”)
standing in his/her/its name on the books of the Company represented by Stock Certificate No.
                     herewith and does hereby irrevocably constitute and appoint                                          attorney-in-fact to transfer
the said stock on the books of the Company with full power of
substitution in the premises.

Dated:                                                             

	 	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 

	 	 
	 

	 	Name Typed or Printed

IN PRESENCE OF

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