Document:

Exhibit 10.2

 

FORM OF

ARCTIC CAT
INC.

STOCK-SETTLED
APPRECIATION RIGHTS AGREEMENT

 

This STOCK-SETTLED APPRECIATION
RIGHTS AGREEMENT (“Agreement”) is
made as of the        day of
                        ,
20     (the “Effective Date”),
between Arctic Cat Inc., a Minnesota corporation (the “Company”),
and
                        ,
an employee of the Company or one or more of its subsidiaries (“Employee”).

 

WHEREAS, the Company desires, by granting to
Employee a stock-settled appreciation right (the “SSAR”)
with respect to the common stock of the Company (the “Common Stock”),
to carry out the purpose of the 2007
Omnibus Stock and Incentive Plan (the “2007 Stock Plan”)
of the Company approved by its shareholders.

 

NOW, THEREFORE, in consideration of the
mutual covenants hereinafter set forth and for other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties
hereto have agreed, and do hereby agree, as follows:

 

1.             Award.

 

(a)           The SSAR.  The Company hereby grants to Employee a SSAR
with respect to a total of
                    
shares of the Common Stock at a grant price of
                                                                  
($              )
per share (the “Grant Price”), which is equal to
the closing sale price of a share of the Common Stock on The Nasdaq Stock
Market, or if not so listed, such other stock exchange on which the Common
Stock is listed (“Market Price”),
on the Effective Date of this Agreement.

 

(b)           Issuance of the SSAR.  The SSAR shall be issued upon acceptance
hereof by Employee and upon satisfaction of the conditions of this Agreement.

 

(c)           2007 Stock Plan.  The SSAR is subject to all of the terms and
conditions set forth in the 2007 Stock Plan, including future amendments
thereto, if any.  A copy of the 2007
Stock Plan is on file with the Chief Financial Officer of the Company, and
Employee, by acceptance hereof, agrees to and accepts this award of the SSAR
subject to the terms of the 2007 Stock Plan.

 

2.             Exercise of the SSAR.

 

(a)           Right to Exercise.  The SSAR may be exercised, in whole or in
part, upon vesting in accordance with subparagraph (b) of this Paragraph 2
and during the term set forth in Paragraph 6. 
Upon exercise, Employee shall be entitled to receive from the Company a
number of shares of the Common Stock with an aggregate market value on the date
of exercise equal to the product of: (A) the number of shares in respect
of which the SSAR is being exercised, multiplied by (B) the excess of (i) the
Market Price of one share of the Common Stock on the date or dates of exercise,
over (ii) the Grant Price; provided, 

 

 

however, that the maximum amount of this clause (B) shall be Ten Dollars
($10.00).  Fractional shares of the
Common Stock shall be paid in cash based on the Market Price on the date of
exercise.

 

(b)           Vesting.  The SSAR herein granted shall be exercisable
at such time as trading of the Company’s shares of Common Stock have a Market
Price equal to or greater than         
and     /100 Dollars
($        ) for thirty (30) of the
preceding forty (40) trading days; provided, however,
in no event shall the SSAR be exercisable earlier than one (1) year from
the Effective Date of this Agreement.

 

(c)           Method of Exercise.  The SSAR shall be exercisable by written
notice which shall state the election to exercise the SSAR and the number of
shares in respect of which the SSAR is being exercised, and such other
representations and agreements as to the holder’s investment intent with
respect to the shares to be issued as may be required by the Company pursuant
to the provisions of the 2007 Stock Plan. 
Such written notice shall be signed by Employee and shall be delivered
in person or by certified mail to the Secretary of the Company.  The certificate or certificates for the
shares as to which the SSAR shall have been so exercised shall be registered in
the name of Employee, or if Employee so elects, in the name of Employee or one
other person as joint tenants, and shall be delivered as soon as practicable
after the notice shall have been received. 
In the event the SSAR shall be exercised by any person other than
Employee, such notice shall be accompanied by appropriate proof of the right of
such person to exercise the SSAR.  The
shares issued upon exercise of the SSAR as provided herein shall be fully paid
and nonassessable.

 

(d)           Restriction on Exercise.  No shares will be issued pursuant to the
exercise of the SSAR unless such issuance and such exercise shall comply with
all relevant provisions of law and the requirements of The Nasdaq Stock Market
or such other stock exchange on which the Common Stock is listed.  Assuming such compliance, for income tax
purposes, the shares shall be considered transferred to Employee on the date on
which the SSAR is exercised with respect to such shares.

 

3.             Adjustment.  The number of shares subject to the SSAR
herein granted or the Grant Price are subject to adjustment by the Company’s
Board of Directors in the event of an increase or decrease in the number of
issued shares of the Common Stock resulting from a subdivision or consolidation
of the Common Stock or the payment of a stock dividend on the Common Stock, or
any other increase or decrease in the number of shares of the Common Stock
effected without receipt or payment of consideration by the Company.

 

4.             No Rights of Shareholder.  Until stock certificates are issued to
Employee, neither Employee nor any beneficiary or transferee thereof shall have
any rights or privileges of a shareholder of the Company with respect to the
shares issuable upon conversion of the SSAR. 
Except as expressly provided in Paragraph 3 or in the Plan, no
adjustment to the SSAR shall be made for dividends or other rights for which
the record date occurs prior to the date the certificates representing such
shares are issued.

 

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5.             Transferability.  This SSAR may not be transferred in any
manner other than by will or by laws of descent or distribution and may be
exercised during the lifetime of Employee only by Employee.  More particularly (but without limiting the
generality of the foregoing), the SSAR may not be assigned, transferred (except
as provided above), pledged, or hypothecated in any way; shall not be
assignable by operation of law; and shall not be subject to execution,
attachment, or similar process.  Any
attempted assignment, transfer, pledge, hypothecation, or other disposition of
the SSAR contrary to the provisions hereof, and the levy of any execution,
attachment, or similar process upon the SSAR, shall be null and void and
without effect.  The terms of the SSAR
shall be binding upon Employee and his or her personal representative, heirs,
successors and assigns.

 

6.             Term.  This SSAR shall immediately terminate on the
fifth (5th) anniversary of the Grant Date and be of no further force and
effect.

 

7.             Withholding Taxes.  Upon the exercise of the vested SSAR,
Employee authorizes the Company to withhold a portion of the shares that
Employee would otherwise be entitled to receive upon exercise of the SSAR,
which is equal in value to an amount sufficient to satisfy any applicable
federal, state, local and foreign withholding or other taxes.

 

8.             Termination of Employment Relationship.  In the event the employment of Employee shall
be terminated for any reason whatsoever, the SSAR may be exercised by Employee
at any time (i) until the date twelve (12) months after the date the SSAR
becomes vested or the date of Retirement (as defined in the 2007 Stock Plan),
whichever is later, if such termination was by reason of Retirement, (ii) within
one (1) month after such termination if such termination was for any
reason other than Retirement, Cause (as defined in the 2007 Stock Plan) or as
provided in paragraph 9 hereof, and (iii) no later than the date of
termination if such termination was for Cause; provided,
however, that in no event may the SSAR be exercised later than the
expiration of the term specified in paragraph 6.  Unless otherwise determined by the Committee
in writing after the date of this Agreement, (A) upon termination by
reason of Retirement, the SSAR will continue to vest in accordance with its
terms, and (B) upon termination for any reason other than Retirement, the
SSAR shall be exercisable only to the extent Employee shall have been entitled
to do so at the date of his or her termination of employment.  So long as Employee shall continue to be an
employee of the Company or one or more of its subsidiaries, the SSAR shall not
be affected by any change of duties or position.  Nothing in this Agreement shall confer upon Employee
any right to continue in the employ of the Company or of any of its
subsidiaries or interfere in any way with the right of the Company or any such
subsidiary to terminate the employment of Employee at any time.

 

9.             Death or Permanent Disability of Employee.  If Employee shall die while still employed by
the Company or one or more of its subsidiaries, or shall become permanently and
totally disabled (as determined by the Committee) while still employed by the
Company or one or more of its subsidiaries, the SSAR may be exercised (to the
extent that Employee shall have been entitled to do so at the date of his or
her death or termination by reason of permanent and total disability, unless
otherwise determined by the Committee 

 

3

 

in writing after the date of this Agreement) by
Employee, his or her legal representative or the person to whom the SSAR is
transferred by will or the applicable laws of descent and distribution, at any
time within twelve (12) months after Employee’s death or termination by reason
of permanent and total disability, but in no event later than the expiration of
the term specified in paragraph 6 hereof.

 

10.           Company Authority.  The existence of the SSAR herein granted
shall not affect in any way the right or power of the Company or its
shareholders 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 issuance of
bonds, debentures, preferred or prior preference stock ahead of or affecting
the Common Stock or its rights thereof, or dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

 

11.           Disputes.  As a condition of the granting of the SSAR
herein granted, Employee agrees, for Employee and Employee’s personal
representatives, that any dispute or disagreement which may arise under or as a
result of or pursuant to this Agreement shall be determined by the Board of
Directors of the Company, in its sole discretion, and that any interpretation
of the Board of the terms of this Agreement shall be final, binding and
conclusive.

 

12.           Binding Effect.  This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all persons lawfully
claiming under Employee.

 

13.           Governing Law.  This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Minnesota.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an
officer thereunto duly authorized, and Employee has executed this Agreement,
all as of the date first above written.

 

 

	
   

  	
  ARCTIC CAT INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Chairman of the Board and

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  

 

4Exhibit 4.1

 

FIRST AMENDMENT OF RIGHTS
AGREEMENT

 

THIS FIRST
AMENDMENT  OF RIGHTS AGREEMENT (this
“Amendment”), effective as of March 23, 2008, is made by Digimarc
Corporation, a Delaware corporation (the “Company”), and acknowledged by
Computershare Trust Company N.A. (formerly Equiserve Trust Company, the “Rights
Agent”).

 

NOW,
THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

 

1.              Amendments

 

(a)           Subject to the terms hereof, pursuant to Section 26
of that certain Rights Agreement, dated as of November 16, 2004, by and
between the Company and the Rights Agent (the “Rights Agreement”), the
parties hereby amend the Rights Agreement to add the following provision to Section 23
(Redemption and Termination), immediately following clause (c):

 

 “(d).       This Agreement shall terminate
automatically at the Effective Time (as such term is defined in the Merger
Agreement (as defined in Section 36)) with no further actions required from
any Person.”

 

(b)           Subject to the terms hereof, pursuant to Section 26
of the Rights Agreement, the parties hereby amend the Rights Agreement to add
the following section:

 

“SECTION 36.  Transactional Exemption.

 

(a)           Notwithstanding
anything to the contrary in this Agreement, the execution, delivery or
performance by the respective parties thereto of, and the consummation of the
merger or any other transactions contemplated by, that certain Agreement
and Plan of Merger dated as of March 23, 2008, as amended from time to
time (the “Merger Agreement”), by and among the Company, L-1 Identity
Solutions, Inc. (“Parent”) and Dolomite Acquisition Co., a Delaware
corporation and wholly owned subsidiary of Parent, including but not limited
to, the execution, delivery and performance by the respective parties thereto
of the Support Agreement and the Spin-Off Agreements (as such terms are defined
in the Merger Agreement) (the Merger Agreement, the Spin-Off Agreements and all
other ancillary documents relating to the transactions contemplated therein are
collectively referred to herein as the “Transaction Agreements”), shall
not cause any Person to become an “Acquiring Person” (as that term is
defined in Section 1 hereof), or give rise to any event that, through
passage of time or otherwise, would result in the occurrence of a “Stock
Acquisition Date,” a “Distribution Date,” a “Section 11(a)(ii) Event”
or a “Section 13 Event” (as those terms are defined in Sections 1,
3(a), 11(a)(ii) and 13(a) hereof, respectively).

 

 

(b)           Notwithstanding
anything to the contrary in this Agreement, the provisions of Section 11
hereof shall be deemed not to apply to the merger or any other transactions
contemplated by the Transaction Agreements.”

 

2.              Condition to Effectiveness

 

This Amendment shall become
effective on March 23, 2008, immediately prior to the first to occur of (a) the
execution and delivery of the Support Agreement, or (b) the execution and
delivery of the Merger Agreement by each of the parties thereto.  By execution hereof, the Rights Agent hereby
acknowledges that it has received written notice of the Amendment; provided,
however, that the Rights Agent shall not be deemed to have any knowledge
of the effectiveness of this Amendment prior to the date of the execution of this
Amendment.

 

3.              Reference to and Effect on
Rights Agreement

 

Each reference in the Rights
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or any other
expression of like import referring to the Rights Agreement shall mean and be a
reference to the Rights Agreement as amended by this Amendment.

 

4.              Governing
Law

 

This First Amendment of
Rights Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware applicable to contracts executed in and to be
performed entirely in such State.

 

5.              Continuing
Effect

 

The Rights Agreement, except
as amended hereby, shall remain in full force and effect.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the Company
has executed this Amendment on April 3, 2008.

 

	
   

  	
  DIGIMARC
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Bruce Davis

  
	
   

  	
   

  	
  Name:
  Bruce Davis

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  

 

3

 

	
  Acknowledged
  by:

  
	
   

  
	
  COMPUTERSHARE
  TRUST COMPANY N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Tyler Haynes

  	
   

  
	
   

  	
  Name:
  Tyler Haynes

  	
   

  
	
   

  	
  Title:
  Manager

  	
   

  

 

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