Document:

ospn_Ex4_10

		

			Exhibit 4.10

		

		

			 

		

		

			MASTER 2019 DIRECTOR GRANT

		

		

			 

		

		
			AWARD AGREEMENT FOR RESTRICTED STOCK UNITS
		

		
			FOR NON-EMPLOYEE DIRECTORS UNDER THE
		

		
			ONESPAN INC.
		

		
			2019  OMNIBUS INCENTIVE PLAN
		

		
			 
		

		
			THIS AWARD AGREEMENT FOR RESTRICTED STOCK UNITS (this “Agreement”) is made as of February 1, 2019 (the “Effective Date”), between OneSpan Inc. (the “Company”) and the undersigned director of the Company (the “Grantee”).
		

		
			 
		

		
			WHEREAS, the Company maintains the OneSpan Inc. 2019 Omnibus Incentive Plan (the “Plan”) for the benefit of its employees, directors, consultants, and other individuals who provide services to the Company; and
		

		
			 
		

		
			WHEREAS, the Plan permits the issuance of restricted stock units with respect to shares of Common Stock (as defined below), subject to certain terms, conditions and restrictions; and
		

		
			 
		

		
			WHEREAS, to compensate the Grantee for his or her service as a director of the Company, the Company wishes to award the Grantee restricted stock units with respect to shares of Common Stock, subject to the restrictions and on the terms and conditions contained in the Plan and this Agreement.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of these premises and the agreements set forth herein, the parties, intending to be legally bound hereby, agree as follows:
		

		
			 
		

		
			1.            Grant of Restricted Stock Units.  Pursuant to Article III of the Plan, the Company hereby grants to the Grantee an award of restricted stock units (the “Restricted Stock Units”) with respect to the number of shares of the Company’s common stock, par value of $.001 per share (the “Common Stock”),  that is specified on the signature page hereto,  subject to the terms and conditions set forth herein and in the Plan and subject further to adjustment as provided in Section 5.7 of the Plan;  provided,  however, the grant of Restricted Stock Units contemplated herein shall be subject to the approval of the Plan by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders and if the Plan shall not be approved at such meeting, the Restricted Stock Units shall be forfeited for no consideration without any action on the part of the Company or the Grantee.  The terms of the Plan are hereby incorporated into this Agreement by this reference, as though fully set forth herein.  Capitalized terms used but not defined herein will have the same meaning as defined in the Plan.
		

		
			 
		

		
			2.           Vesting of Restricted Stock Units.  The Restricted Stock Units are subject to forfeiture until they become non-forfeitable in accordance with this Section 2.
		

		
			 
		

		
			(a)           Vesting.  The Restricted Stock Units will vest and become non-forfeitable on the one-year anniversary of the Effective Date (the “Vesting Date”), provided that the Grantee has, from the date hereof, continuously served as a director of the Company through the Vesting Date.
		

		
			 
		

		
			(b)           All Outstanding Restricted Stock Units Forfeited Upon Cessation of Service.  Subject to the remainder of this Section 2, upon cessation of Grantee’s service as a director of the Company for any reason or for no reason (and whether such cessation is initiated by the Company, the Grantee or otherwise):
		

		
			
		

		
			

		 

		

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			MASTER 2019 DIRECTOR GRANT

		

		

			 

		

		

		
			(i)           any Restricted Stock Units that have not vested prior to the effective date of such cessation will immediately and automatically, without any action on the part of the Company, be forfeited; and
		

		
			 
		

		
			(ii)          the Grantee will have no further rights with respect to those Restricted Stock Units.
		

		
			 
		

		
			(c)                  Acceleration on Death or Disability. If the Grantee ceases to be a director of the Company by reason of the Grantee's death or disability, all outstanding Restricted Stock Units shall become immediately vested. The term “disability” means a medically determinable mental or physical impairment that, in the opinion of the Board, causes the Grantee to be unable to perform Grantee’s duties as a director of the Company.
		

		
			 
		

		
			(d)           Acceleration upon a Change in Control. Upon a Change in Control of the Company, all outstanding Restricted Stock Units shall become immediately vested.
		

		
			 
		

		
			(e)           Acceleration upon Retirement.  If the Grantee ceases to be a director of the Company by reason of the Grantee’s Retirement (as defined below), all outstanding Restricted Stock Units shall become immediately vested.  The term “Retirement” for this Agreement shall have both of the following meanings (and only one of which need be satisfied): (i) the termination of the Grantee’s service as a director of the Company occurring on or after the date that the Grantee reaches age 65,  or (ii) regardless of the director’s age, with respect to any director who has served as a director for at least ten consecutive years, the termination of the Grantee’s service as a director of the Company upon expiration of the Grantee’s term of service following Grantee’s declination to stand for nomination for a new annual term as director.
		

		
			 
		

		
			3.           Rights as a Stockholder. The Grantee shall have no rights as a stockholder of the Company with respect to the shares of Common Stock subject to the Restricted Stock Units (including the right to vote) until the underlying Common Stock becomes vested pursuant to Section 2 and the Grantee becomes a stockholder of record with respect to such shares, except that the Grantee shall be entitled to receive dividend equivalents related to the Restricted Stock Units equal in amount to the dividends declared on the underlying shares of Common Stock.  Dividend equivalent amounts shall accrue and be paid or distributed in cash at the same time the underlying shares of Common Stock are distributed to Grantee in accordance with Section 4.
		

		
			 
		

		
			4.           Delivery of Common Stock Underlying Restricted Stock Units.  The Company shall deliver vested shares of Common Stock (and the related dividend equivalents in accordance with Section 3)  with respect to the Restricted Stock Units to the Grantee within ten business days upon the earliest to occur of: (i) the Grantee’s cessation of service as a director of the Company; and (ii) a Change in Control (as defined in the Plan), but only if such Change in Control also constitutes a “change in control event” of the Company within the meaning of Section 409A of the Code.
		

		
			 
		

		
			5.           Restrictions on Transfer.  The Grantee may not sell, transfer, assign, pledge or otherwise encumber or dispose of the Restricted Stock Units subject to this Agreement until such time as the shares of Common Stock underlying the Restricted Stock Units are issued to the Grantee in accordance with Section 4.  The Grantee may designate beneficiaries to receive
		

		
			
		

		
			

		 

		

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			MASTER 2019 DIRECTOR GRANT

		

		

			 

		

		

		
			the shares of Common Stock underlying the Restricted Stock Units subject to this Agreement if the Grantee dies before delivery of the shares of Common Stock by so indicating on a form supplied by the Company. If the Grantee fails to designate a beneficiary, such Common Stock will be delivered to the Grantee’s estate.
		

		
			 
		

		
			6.           Tax Consequences.  The Grantee acknowledges that the Company has not advised
		

		
			the Grantee regarding the Grantee’s income tax liability in connection with the grant or vesting
		

		
			of the Restricted Stock Units, the dividend equivalents contemplated hereunder or the delivery of the Common Stock underlying the Restricted Stock Units. The Grantee has reviewed with the Grantee’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement.  The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  The Grantee understands that the Grantee (and not the Company) shall be responsible for the Grantee’s own tax liability that may arise as a result of the transactions contemplated by this Agreement.
		

		
			 
		

		
			7.           Securities Laws.  The Company may from time to time impose any conditions on the Restricted Stock Units or the shares of Common Stock underlying the Restricted Stock Units as it deems necessary or advisable to ensure that the Plan satisfies the conditions of Rule 16b-3 or other applicable laws.
		

		
			 
		

		
			8.           General Provisions.
		

		
			 
		

		
			(a)           This Agreement and the Plan together represent the entire agreement between the parties with respect to the Restricted Stock Units and may only be modified or amended in a writing signed by both parties.
		

		
			 
		

		
			(b)           Any notice, demand or request required or permitted to be given by either the Company or the Grantee pursuant to the terms of this Agreement shall be in writing and shall be deemed given on the date and at the time delivered via personal, courier or recognized overnight delivery service or, if sent via telecopier, on the date and at the time telecopied with confirmation of delivery or, if mailed, on the date five days after the date of the mailing (which shall be by regular, registered or certified mail).  Delivery of a notice by telecopy (with confirmation) shall be permitted and shall be considered delivery of a notice notwithstanding that it is not an original that is received.  Any notice to Grantee under this Agreement shall be made to Grantee at the address listed in the Company’s personnel files.  If directed to the Company, any such notice, demand or request shall be sent to the Company’s principal executive office, c/o the Company’s Secretary, or to such other address or person as the Company may hereafter specify in writing.
		

		
			 
		

		
			(c)          The Company may condition delivery of certificates for the shares of Common Stock underlying the Restricted Stock Units upon the prior receipt from Grantee of any undertakings which it may determine are required to assure that the certificates are being issued in compliance with federal and state securities laws.
		

		
			 
		

		
			(d)           The Grantee has received a copy of the Plan, has read the Plan and is familiar with its terms, and hereby accepts the Restricted Stock Units subject to all of the terms and provisions of the Plan, as amended from time to time.  Pursuant to the Plan, the Board and the Committee are authorized to interpret the Plan and to adopt rules and regulations not inconsistent with the Plan as they deem appropriate.  The Grantee hereby agrees to accept as
		

		
			
		

		
			

		 

		

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			MASTER 2019 DIRECTOR GRANT

		

		

			 

		

		

		
			binding, conclusive and final all decisions or interpretations of the Board and the Committee upon any questions arising under the Plan.
		

		
			 
		

		
			(e)          The award of Restricted Stock Units granted hereunder is intended to comply with the requirements of Section 409A of the Code (“Section 409A”) and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code.
		

		
			 
		

		
			(f)           Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the Code.
		

		
			 
		

		
			(g)           Neither this Agreement nor any rights or interest hereunder shall be assignable by the Grantee, Grantee’s beneficiaries or legal representatives, and any purported assignment in violation hereof shall be null and void.
		

		
			 
		

		
			(h)           Either party’s failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this Agreement.  The rights granted both parties herein are cumulative and shall not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances.
		

		
			 
		

		
			(i)           The grant of Restricted Stock Units hereunder will not confer upon the Grantee any right to continue in service with the Company or any of its Subsidiaries.
		

		
			 
		

		
			(j)           This Agreement shall be governed by, and enforced in accordance with, the laws of the State of Delaware, without regard to the application of the principles of conflicts or choice of laws.
		

		
			 
		

		
			(k)           This Agreement may be executed, including execution by facsimile signature, in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument. The parties confirm that it is their wish that this Agreement may be executed by means of electronic signature.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		
			
		

		
			

		 

		

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			MASTER 2019 DIRECTOR GRANT

		

		

			 

		

		

		
			SIGNATURE PAGE TO
		

		
			AWARD AGREEMENT FOR RESTRICTED STOCK UNITS
		

		
			 
		

		
			IN WITNESS WHEREOF, the parties have duly executed this Award Agreement intending it to be effective as of the first date written above.
		

		
			 
		

			
					
						 

					
					
						ONESPAN INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Its:

					
					
						CFO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GRANTEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Signature:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GRANT VALUE:  $105,000

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SHARE PRICE:  $14.74

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						SHARES SUBJECT TO AWARD:  7,124

				

		
			 
		

		 

		

			-5-ospn_Ex4_11

		
			Exhibit 4.11
		

		
			 
		

		
			CASH AWARD LONG-TERM INCENTIVE PLAN AGREEMENT
		

		
			Version [  ]% Performance / [  ]% Time-Based
		

		
			 
		

		
			THIS AWARD AGREEMENT (this “Agreement”) is made as of January 1, 2019  (the “Grant Date”), between OneSpan Inc. (the “Grantor”) and [                     ] (the “Grantee”).
		

		
			WHEREAS, the Grantor seeks to motivate and incentivize the Grantee to contribute to the future success of OneSpan Inc. (the "Company") and all of the entities that are directly or indirectly controlled by, in control of or under the common control with the Company (each a "Related Company"); and
		

		
			WHEREAS, as a means for motivating and incentivizing the Grantee, the Grantor wishes to provide the Grantee with an opportunity to receive future cash payments, the amount of which is based upon the Grantee's continued service.
		

		
			NOW, THEREFORE, in consideration of these premises and the agreements set forth herein, the parties, intending to be legally bound hereby, agree as follows:
		

		
			1.         Definitions.  Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates otherwise.
		

		
			(a)  "Administrator" means the Company's Chief Financial Officer.
		

		
			(b)  Change in Control," unless otherwise defined for purposes of an Award in a written employment, services or other agreement between the Grantee and the Employer, the Company or a Related Company, means the occurrence of any of the following events:
		

		
			(i).     An acquisition by any individual, entity or group, within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act, (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of either (1) the then outstanding shares of Common Stock of the Company (the “Outstanding Common Stock”) or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Voting Securities”); excluding,  however, the following: (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise, exchange or conversion of any Convertible Securities unless such securities were themselves acquired directly from the Company, (B) any acquisition by the Company; (C) any acquisition by T. Kendall Hunt or any of his affiliates, or (D) any acquisition by any Person pursuant to a transaction which complies with clauses (1) and (2) of the exception contained in the definition of “Company Transaction;” or
		

		
			(ii).    A Company Transaction; or
		

		
			(iii).  The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company (other than to an entity pursuant to a transaction which would comply with clauses (1) and (2) of the exception contained in the definition of “Company Transaction”), assuming for this purpose that such transaction would be a Company Transaction.
		

		
			
		

		
			

		 

		

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			For purposes of the definition of “Change of Control” and “Company Transaction”, a series of transactions undertaken with a common purpose shall be treated as a single transaction that begins at the consummation of the first transaction in the series and ends at the consummation of the last transaction in the series.
		

		
			(c)  "Company Transaction" means the consummation of:
		

		
			(i).     a reorganization, merger or consolidation of the Company; or
		

		
			(ii).    the sale or other disposition of all or substantially all of the assets of the Company and its direct and indirect subsidiaries taken as a whole to a Person or Persons who are not “related persons” as defined in U.S. Treasury Regulation § 1.409A-3(i)(5)(vii)(B);
		

		
			except in each case a transaction pursuant to which:
		

		
			1.          all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such transaction will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding shares of common stock, and the combined voting power of the outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets, either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such transaction, of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be; and
		

		
			2.          individuals who were members of the Board immediately prior to the approval by the stockholders of the Company of such transaction will constitute at least a majority of the members of the board of directors of the entity resulting from such transaction.
		

		
			(d)  “Disability” means, except as otherwise required under local law, a mental or physical impairment of the Grantee that is expected to result in death or that has lasted or is expected to last for a continuous period of 12 months or more and that causes the Grantee to be unable to perform his or her material duties for the Employer and to be engaged in any substantial gainful activity, in each case as determined by the Company in its sole discretion, whose determination shall be conclusive and binding.  Notwithstanding the foregoing, the Grantee will not be deemed to have sustained a Disability if it is the result of (A) a willfully self-inflicted injury or willfully self-induced sickness; or (B) an injury or disease contracted, suffered, or incurred while participating in a criminal offense.
		

		
			(e)  "Employer" means the Related Company that employs the Grantee.
		

		
			(f)  "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time.
		

		
			
		

		
			

		 

		

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			(g)  "Good Reason" means: (a) the assignment to the Grantee of any duties inconsistent in any respect with the Grantee’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities or any other action by the Employer, the Company or a Related Company that results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith; (b) any failure by the Employer, the Company or a Related Company to comply with any provision of any employment agreement covering the Grantee other than an isolated, insubstantial and inadvertent failure not occurring in bad faith; (c) the Employer, the Company or a Related Company requiring the Grantee to be based at any office or location other than the office occupied by the Grantee as of the date of the Award or a reasonably comparable office located within a 40-mile radius of such current office; or (d) a material adverse change in the Grantee's base salary.  A Good Reason termination will have occurred only if (a) the Grantee terminates his or her employment during the one year following the initial existence of a Good Reason event; (b) the Grantee provided notice to the Employer within 90 days of the initial existence of a Good Reason condition; and (c) the Employer failed to cure the Good Reason event within 30 days of such notice from the Grantee.  Any good faith determination regarding the occurrence of "Good Reason" made by the Administrator shall be binding and conclusive upon all parties.
		

		
			(h)  “Performance Period” means the period commencing on January 1, 2019 and ending on December 31, 2021.
		

		
			(i)   "Recoupment Period" means the period beginning on the date the financial statements requiring restatement were originally released to the public or submitted to the Securities and Exchange Commission (whichever is earlier) and ending on the date the restated financial statements are filed with the Securities and Exchange Commission.
		

		
			2.         Cash Bonus Opportunity. The Company hereby grants to the Grantee the opportunity to receive future cash payments (the "Award"), subject to the terms and conditions set forth in this Agreement. The target amount of the Award in USD is detailed in Addendum B (“Target Amount”).
		

		
			3.         Vesting of Award. Subject to Section 7, the Award is subject to forfeiture and not earned until it becomes vested in accordance with this Section 3.
		

		
			 
		

		
			(a)  Performance Period: The portion of the Target Amount that is determined and thereafter subject to any vesting shall be determined by the Administrator, in its sole and absolute discretion, in accordance with Addendum B, based upon the Company’s achievement relative to the Performance Target during the Performance Period (“Determined Amount”). Upon determination of Determined Amount and subject to Section 7, the Determined Amount as detailed in Addendum B shall become vested after the three-year performance period and finalization of the audited financial statements, provided that on the payment date, the Grantee has, from the Grant Date, continuously provided services to the Employer, the Company or any other Related Company.
		

		
			(b)  Time Vesting Period.  Subject to Section 7, the Target Amount subject to time-based vesting shall be subject to vesting, in accordance with the following schedule (the "Time Vesting Period"), provided that on each payment date, the
		

		
			
		

		
			

		 

		

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			Grantee has, from the Grant Date, continuously provided services to the Employer, the Company or any other Related Company:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Date

					
					
						Vesting Percentage of 
Time-Based Amount

				
	
					
						March 2020

					
					
						 

				
	
					
						March 2021

					
					
						 

				
	
					
						March 2022

					
					
						 

				
	
					
						March 2023

					
					
						 

				

		
			 
		

		
			Any portion of the Determined Amount that has not vested pursuant to this Section 3 will be automatically forfeited.
		

		
			(c)  In the event of the occurrence of a Change in Control prior to the expiration of the Performance Period, the value of the Target Amount outstanding as of the date of the Change in Control shall be prorated (based on the ratio of (x) the number of days that have elapsed in the Performance Period to (y) the total number of days in the Performance Period) and compared to actual performance up to and including the date of such Change in Control (the “Prorated Award”) and the Grantee shall become vested in the Prorated Award immediately prior to (and contingent on) the Change in Control if the prorated performance targets have been met as determined by the Administrator.
		

		
			(d)  In the event of (i) the occurrence of a Change in Control during the Time Vesting Period and (ii) the Grantee’s termination of continuous service with the Employer, the Company or any Related Company for reasons other than (A) resignation without Good Reason, or (B) Cause, during the one year period following the Change in Control, 100% of the Target Amount that is subject to the Time Vesting Period will become vested immediately prior to (and contingent upon) such termination.
		

		
			(e)  In the event of the termination of the Grantee's continuous service with the Employer, the Company or any Related Company,  by reason of the Grantee’s death or Disability prior to the expiration of the Time Period, 100% of the Target Amount based upon the target (100%) Time level will become vested immediately prior to (and contingent on) the occurrence of such death or Disability.  If the Grantee’s continuous service with the Employer, the Company or any Related Company ceases by reason of the Grantee’s death or Disability during the Time Vesting Period, 100% of the Target Amount that is subject to the Time Vesting Period will become vested immediately prior to (and contingent upon) the occurrence of such death or Disability.
		

		
			(f)  Except as provided in Sections 3(c),  3(d) and 3(e), in the event of the termination of the Grantee's continuous service with the Employer, the Company or any Related Company for any other reason: (i) any portion of the Award that has not, prior to such cessation, become vested will immediately and automatically, without any action on the part of the Grantor, be forfeited, and (ii) the Grantee shall have no further rights with respect to the Award.
		

		
			(g)  For purposes of this Agreement, “Cause” and “Wrongful Act” mean:
		

		
			
		

		
			

		 

		

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			(i).   Grantee materially breaches Grantee’s obligations under any employment, consulting, or other agreement between the Grantee and the Employer, the Company or any Related Company (each, a “Company Agreement”);
		

		
			(ii).  Grantee materially breaches Grantee’s obligations under the Company’s Code of Ethics and Conduct (or any successor thereto) or an established policy of the Company;
		

		
			(iii). Grantee engages in conduct prohibited by law (other than minor violations), commits an act of dishonesty, fraud, or serious or willful misconduct in connection with Grantee’s job duties, or engages in unethical or immoral conduct that, in the reasonable judgment of the Administrator, could injure the integrity, character or reputation of the Employer, the Company or any Related Company;
		

		
			(iv). Grantee fails or refuses to perform, or habitually neglects, Grantee’s duties and responsibilities under any Company Agreement (other than on account of Disability), and continues such failure, refusal or neglect after having been given written notice that specifies what duties Grantee failed to perform and an opportunity to cure of 10 days;
		

		
			(v).  Use or disclosure by Grantee of confidential information or trade secrets of the Employer, the Company or any Related Company, other than in the furtherance of the Employer's, the Company's or any Related Company's business interests, or other violation of a fiduciary duty to the Employer, the Company or any Related Company (including, without limitation, entering into any transaction or contractual relationship causing diversion of business opportunity from the Employer, the Company or any Related Company); or
		

		
			(vi). Grantee fails to reasonably cooperate with any audit or investigation involving the Employer, the Company or any Related Company or its business practices after having been given written notice that specifies Grantee’s failure to cooperate and an opportunity to cure of 10 days.
		

		
			(h)  For purposes of this Agreement, the termination date of the Grantee's service with the Employer, the Company or any Related Company shall mean the earliest of (i) the date on which notice of termination is provided to the Grantee, (ii) the last day of the Grantee's active service with the Employer, the Company or any Related Company, or (iii) the last day on which the Grantee is an employee of the Employer, the Company or any Related Company, as determined in each case without including any required advance notice period and irrespective of the status of the termination under local labor or employment laws.
		

		
			 
		

		
			(i)   If the Grantee is a resident of or employed in a country that is a member of the European Union, the grant of the Award and this Agreement are intended to comply with the age discrimination provisions of the EU Equal Treatment Framework Directive, as implemented into local law (the “Age Discrimination Rules”).  To the extent that a court or tribunal of competent jurisdiction determines that any provision of this Agreement or the Award are invalid or
		

		
			
		

		
			

		 

		

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			unenforceable, in whole or in part, under the Age Discrimination Rules, the Administrator, in its sole discretion, shall have the power and authority to revise or strike such provision to the minimum extent necessary to render it valid and enforceable to the full extent permitted under local law.
		

		
			 
		

		
			4.         Payment of Award.  As soon as administratively practicable following each vesting date (target month: March), the Grantor shall make a cash payment in local currency, less any applicable tax withholding and/or any other required withholdings pursuant to Section 5 of this Agreement, to the Grantee equal to the vested percentage of the time-based Target Amount portion.  For purposes of the foregoing, the amount of the cash payment in local currency shall be determined using the applicable currency conversion rate on the date of payment or up to 10 days prior, as determined by the Administrator (or its delegate) in its sole discretion.
		

		
			5.         Withholding of Tax-Related Items.  Regardless of any action the Grantor may take with respect to any or all income tax, social insurance, housing fund, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Grantee acknowledges that the ultimate liability for all Tax-Related Items legally due by the Grantee is and remains the Grantee's responsibility, and that the Grantor (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the Award, the vesting of the Award, and any cash payments made in settlement of the Award; and (ii) does not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Grantee's liability for Tax-Related Items.  Prior to the delivery of any cash payment in settlement of the Award, if any taxing jurisdiction requires withholding of Tax-Related Items, the Grantor shall withhold any amount necessary to pay the Tax-Related Items from the gross amount of the cash payment in settlement of the Award.
		

		
			6.         Restrictions on Unvested Award. Except for the forfeiture of the Award, as described in Section 3, the Grantee may not sell, pledge, assign, encumber, hypothecate, gift, transfer, bequeath, devise, donate or otherwise dispose of, in any way or manner whatsoever, whether voluntary or involuntary, any legal or beneficial interest in any portion of the Award until the Award becomes vested in accordance with Section 3.
		

		
			7.         Recoupment of Cash Payments.  Notwithstanding anything in this Agreement to the contrary and to the extent permitted under applicable law, if the Administrator determines that the Grantee’s Wrongful Act was a significant contributing factor to the Employer, the Company or any Related Company having to restate all or a portion of its financial statements, any outstanding portion of the Award will immediately and automatically be forfeited and the Grantee shall promptly repay to the Grantor any cash or other property previously paid in respect of the Award during the Recoupment Period.
		

		
			8.         No Right to Continued Service.  To the extent the Award is granted to the Grantee by an entity other than the Employer, the Grantor's grant of the Award shall not be deemed to create an employment relationship with the Grantee.  Further, the granting of the Award evidenced hereby and this Agreement shall impose no obligation on the Employer to continue the employment of the Grantee and shall not lessen or affect any right that the Employer may have to terminate the employment of such Grantee.
		

		
			9.         Discretionary Nature of Agreement; No Vested Rights. The Grantee acknowledges and agrees that the Agreement is discretionary in nature and may be amended, cancelled, or terminated by the Grantor, in its sole discretion, at any time.  The grant of
		

		
			
		

		
			

		 

		

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			the Award under this Agreement is a one-time benefit and does not create any contractual or other right to receive a grant of an Award or any other award under this Agreement or other benefits in lieu thereof in the future.  Future grants, if any, will be at the sole discretion of the Grantor.  Any amendment, modification or termination of the Agreement shall not constitute a change or impairment of the terms and conditions of the Grantee’s employment with the Employer.
		

		
			10.       Extraordinary Nature of Award.  The value of the Award is an extraordinary item of compensation outside the scope of the Grantee’s employment (and the Grantee’s employment agreement, if any), and is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments.
		

		
			11.       Repatriation and Legal/Tax Compliance Requirements.  The Grantee agrees, as a condition to the grant of the Award, to repatriate all cash acquired pursuant to the Award in accordance with local foreign exchange rules and regulations in the Grantee’s country of residence (and country of employment, if different).  In addition, the Grantee agrees to take any and all actions, and consents to any and all actions taken by the Employer, the Company or any Related Company as may be required to allow the Employer, the Company or any Related Company to comply with local laws, rules and regulations in the Grantee’s country of residence (and country of employment, if different).  Finally, the Grantee agrees to take any and all actions that may be required to comply with the Grantee’s personal legal and tax obligations under local laws, rules and regulations in the Grantee’s country of residence (and country of employment, if different).
		

		
			12.       Consent to Collection, Processing and Transfer of Personal Data.  Pursuant to applicable personal data protection laws, the Grantor hereby notifies the Grantee of the following in relation to the Grantee’s personal data and the collection, processing and transfer of such data in relation to the Grantor’s grant of the Award.  The collection, processing and transfer of the Grantee’s personal data are necessary for the Grantor’s administration of the Grantee's Award.  As such, the Grantee voluntarily acknowledges and consents (where required under applicable law) to the collection, use, processing and transfer of personal data as described herein. The Grantor holds certain personal information about the Grantee, including the Grantee’s name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, and job title for the purpose of managing and administering the Grantee's Award (“Data”).  The Data may be provided by the Grantee or collected, where lawful, from third parties, and the Grantor will process the Data for the exclusive purpose of implementing, administering and managing the Grantee’s Award.  The Data processing will take place through electronic and non-electronic means according to logics and procedures strictly correlated to the purposes for which Data are collected and with confidentiality and security provisions as set forth by applicable laws and regulations in the Grantee’s country of residence (and country of employment, if different).  Data processing operations will be performed minimizing the use of personal and identification data when such operations are unnecessary for the processing purposes sought.  Data will be accessible within the Grantor’s organization only by those persons requiring access for purposes of the implementation and administration of the Grantee's Award.  The Grantor will transfer Data internally as necessary for the purpose of the implementation and administration of the Grantee’s Award, and the Grantor may further transfer Data to any third parties assisting the Company in the implementation and administration of the Grantee's Award.  These recipients may be located in the European Economic Area, or elsewhere throughout the
		

		
			
		

		
			

		 

		

			7/13

		

		

		
			world, such as the United States.  The Grantee hereby authorizes (where required under applicable law) these recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for purposes of implementing and administering the Grantee's Award.  The Grantee may, at any time, exercise the Grantee’s rights provided under applicable personal data protection laws, which may include the right to (a) obtain confirmation as to the existence of the Data, (b) verify the content, origin and accuracy of the Data, (c) request the integration, update, amendment, deletion, or blockage (for breach of applicable laws) of the Data, and (d) to oppose, for legal reasons, the collection, processing or transfer of the Data which is not necessary or required for the implementation and administration of the Grantee's Award.  The Grantee may seek to exercise these rights by contacting the Grantee’s local HR manager or the Grantor’s Human Resources Department.
		

		
			13.       Electronic Delivery.  The Grantor may, in its sole discretion, decide to deliver any documents related to the Award granted to the Grantee under this Agreement by electronic means.  The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in this Agreement through an on-line or electronic system established and maintained by the Company or a third party designated by the Grantor.
		

		
			14.       English Language.  The Grantee acknowledges and agrees that it is the Grantee’s express intent that the Agreement and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Award, be drawn up in English.  If the Grantee has received the Agreement or any other documents related to the Award translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.
		

		
			15.       Addendum.  Notwithstanding any provision of this Agreement to the contrary, the Award shall be subject to any special terms and conditions for the Grantee’s country of residence (and country of employment, if different) as are forth in the applicable Addendum  A to this Agreement (the “Addendum”).  Further, if the Grantee transfers residency and/or employment to another country reflected in an Addendum to the Agreement, the special terms and conditions for such country will apply to the Grantee to the extent the Grantor determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local law or to facilitate the operation and administration of the Award (or the Grantor may establish alternative terms and conditions as may be necessary or advisable to accommodate the Grantee’s transfer).  Any applicable Addendum shall constitute part of this Agreement.
		

		
			16.       Additional Requirements.  The Grantor reserves the right to impose other requirements on the Award, to the extent the Company determines in its sole discretion, that such other requirements are necessary or advisable in order to comply with local law or to facilitate the operation and administration of the Award.  Such requirements may include (but are not limited to) requiring the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
		

		
			17.       Headings.  The headings preceding the text of the sections in this Agreement hereof are inserted solely for convenience of reference, and shall not constitute a part of the terms and conditions of this Agreement, nor shall they affect its meaning, construction or effect.
		

		
			18.       Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
		

		
			
		

		
			

		 

		

			8/13

		

		

		
			19.       Governing Law.  The Award made and actions taken under this Agreement shall be governed by and construed in accordance with the laws of Delaware without taking into account its conflict of law provisions.
		

		
			20.       General Provisions
		

		
			(a)  This Agreement represents the entire agreement between the parties with respect to the Award and may only be modified or amended in a writing signed by both parties.  Notwithstanding the foregoing, this Agreement may be modified or amended without the consent of the Grantee, should the Grantor determine in its sole discretion that a modification or amendment is advisable and necessary to accomplish the purposes of this Agreement.
		

		
			(b)  Any notice, demand or request required or permitted to be given by either the Grantor or the Grantee pursuant to the terms of this Agreement must be in writing and will be deemed given (i) on the date and at the time delivered via personal, courier or recognized overnight delivery service, (ii) if sent via telecopier on the date and at the time telecopied with confirmation of delivery, (iii) if sent via email or other electronic delivery and receipt is confirmed, on the date and at the time received, or (iv) if mailed, on the date five days after the date of the mailing (which must be by registered or certified mail). Delivery of a notice by telecopy (with confirmation) or by email or other electronic delivery (with confirmation or receipt) will be permitted and will be considered delivery of a notice notwithstanding that it is not an original that is received. Any notice to Grantee under this Agreement will be made to Grantee at the address (or telecopy number, email or other electronic address, as the case may be) listed in the Company’s personnel files. If directed to the Grantor, any such notice, demand or request will be sent to the Administrator at the Company’s principal executive office, or to such other address or person as the Grantor may hereafter specify in writing. Any notice to the Grantee will be sent to the Grantee's last known address, with a copy to the other party not sending the notice.
		

		
			(c)  The Grantee has received a copy of this Agreement, has read this Agreement and is familiar with its terms, and hereby accepts the Award subject to all of the terms and provisions of this Agreement.  Pursuant to this Agreement, the Administrator is authorized to interpret this Agreement and to adopt rules and regulations not inconsistent with this Agreement as the Administrator deems appropriate. The Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under this Agreement.
		

		
			(d)  Neither this Agreement nor any rights or interest hereunder will be assignable by the Grantee, the Grantee’s beneficiaries or legal representatives, and any purported assignment in violation hereof will be null and void.
		

		
			(e)  Either party’s failure to enforce any provision or provisions of this Agreement will not in any way be construed as a waiver of any such provision or provisions, nor prevent that party thereafter from enforcing each and every other provision of this Agreement. The rights granted both parties herein are cumulative and will not constitute a waiver of either party’s right to assert all other legal remedies available to it under the circumstances.
		

		
			
		

		
			

		 

		

			9/13

		

		

		
			(f)  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.  In the event that any signature to this Agreement is delivered by facsimile transmission, e-signature technology or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile, digital or “.pdf” signature page were an original thereof.
		

		
			IN WITNESS WHEREOF, the parties have duly executed this Agreement intending it to be effective as of the first date written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						OneSpan Inc.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Mark S. Hoyt

				
	
					
						 

					
					
						Its:   Chief Financial Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Grantee:

				
	
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			10/13

		

		

		
			ONESPAN INC.
		

		
			ADDENDUM A TO
		

		
			LONG-TERM INCENTIVE PLAN AGREEMENT
		

		

		
			 
		

		
			In addition to the terms of the Cash Award Long-Term Incentive Plan Agreement (the “Agreement”), the Award is subject to the following additional terms and conditions as set forth in this addendum to the extent the Grantee resides and/or is employed in one of the countries addressed herein (the “Addendum”).  All defined terms as contained in this Addendum shall have the same meaning as set forth in the Agreement. To the extent the Grantee transfers residency and/or employment to another country, the additional terms and conditions as set forth in the addendum for such country (if any) shall also apply to the Award to the extent the Grantor determines, in its sole discretion, that the application of such addendum is necessary or advisable in order to comply with local laws, rules and regulations, or to facilitate the operation and administration of the Award (or the Grantor may establish additional terms and conditions as may be necessary or advisable to accommodate the Grantee's transfer).
		

		
			 
		

		
			Belgium / France / Canada
		

		
			 
		

		
			1.         English Language.  The Grantee acknowledges and agrees that it is the Grantee’s express intent that the Agreement and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Award, be drawn up in English.  If the Grantee has received the Agreement or any other documents related to the Award translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version shall control.
		

		
			2.         Tax. As per Section 5 of the Agreement, Grantee acknowledges that the ultimate liability for all Tax-Related Items legally due by the Grantee is and remains the Grantee's responsibility, and that the Grantor (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant of the Award, the vesting of the Award, and any cash payments made in settlement of the Award; and (ii) does not commit to structure the terms of the grant or any aspect of the Award to reduce or eliminate the Grantee's liability for Tax-Related Items.
		

		
			 
		

		
			BY SIGNING BELOW, THE GRANTEE ACKNOWLEDGES, UNDERSTANDS AND AGREES TO THE PROVISIONS OF THE AGREEMENT AND ADDENDUM A AND  B.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Signature

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			11/13

		

		

		
			ONESPAN, INC.
		

		
			ADDENDUM B TO
		

		
			LONG-TERM INCENTIVE PLAN AGREEMENT
		

		
			 
		

		
			Target Amount: [             ] USD.
		

		
			The three-year Performance Target shall be the combined revenues of [              ] and [              ] for the Performance Period. Revenues shall be measured in accordance with U.S. Generally Accepted Accounting Principles as reported in the Company’s audited financial statements.
		

		
			The portion of the Target Amount that is time-based (and subject to further vesting in accordance with Section 3 of the Agreement) shall be determined by the Time-Based percentage as set out below and the portions that are performance-based are based on achievement of the Performance Targets (three-year cliff vesting) below and the assigned percentages below.  The Performance Based portion of the Target Amount will not be earned if actual performance is less than the minimum Performance Target (90%).
		

		
			The maximum Performance Based portion is 150% of Performance Based Target Amount.
		

		
			2019 – 2021 Performance and Time Based Criteria:
		

		
			 
		

			
					
						Long-Term Incentive Plan

				
	
					
						  

					
					
						2019-2021
HW Revenue
(c)

					
					
						 

					
					
						2019-2021
Non-HW Rev
(c, d)

					
					
						 

					
					
						Time
Based
(4 years) 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						(in millions)

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Percent of Target Amount Payout Performance and Time Based

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2019-2021 Performance Target Amounts

					
					
						$271.0

					
					
						 

					
					
						$515.0

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Payout Curve (with interpolation between achievement levels):

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2019-2021 HW Revenue (c)

					
					
						 

					
					
						2019-2021 Non-HW Rev (c, d)

					
					
						 

				
	
					
						Target

					
					
						flr/clng

					
					
						% of Target
Payout

					
					
						 

					
					
						Target

					
					
						flr/clng

					
					
						% of
Target
Payout

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Less than floor

					
					
						 

					
					
						0%

					
					
						 

					
					
						Less than floor

					
					
						 

					
					
						0%

					
					
						 

				
	
					
						$244

					
					
						90%

					
					
						50%

					
					
						 

					
					
						$464.0

					
					
						90%

					
					
						50%

					
					
						 

				
	
					
						$271

					
					
						 

					
					
						100%

					
					
						 

					
					
						$515.0

					
					
						 

					
					
						100%

					
					
						 

				
	
					
						$298

					
					
						110%

					
					
						150%

					
					
						 

					
					
						$567.0

					
					
						110%

					
					
						150%

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Plan

					
					
						Long-Term

					
					
						 

				
	
					
						REVENUE

					
					
						2019

					
					
						2020

					
					
						2021

					
					
						19-21 Tot

				
	
					
						Non-HW

					
					
						$ 136

					
					
						$ 169

					
					
						$ 210

					
					
						$515

				
	
					
						Non-HW growth

					
					
						27%

					
					
						25%

					
					
						24%

					
					
						 

				
	
					
						HW

					
					
						$ 98

					
					
						$ 91

					
					
						$ 82

					
					
						$271

				
	
					
						HW growth

					
					
						-7%

					
					
						-7%

					
					
						-10%

					
					
						 

				
	
					
						Total revenue

					
					
						$ 234

					
					
						$ 260

					
					
						$ 292

					
					
						$786

				
	
					
						Total Growth

					
					
						10%

					
					
						11%

					
					
						12%

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			12/13

		

		

		
			Example LTIP Award - $25,000 50/50 (performance goal met at 100%):
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Time-Based 
(50%)

					
					
						2019 
Payout

					
					
						2020 
Payout

					
					
						2021
 Payout

					
					
						2022
 Payout

					
					
						2023 
Payout

				
	
					
						$12,500

					
					
						$0 

					
					
						$3,125 

					
					
						$3,125 

					
					
						$3,125 

					
					
						$3,135 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Performance-Based (50%)

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						$12,500

					
					
						$0

					
					
						$0

					
					
						$0

					
					
						$12,500

					
					
						$0

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Total Annual 
Payouts

					
					
						$0 

					
					
						$3,125 

					
					
						$3,125 

					
					
						$15,625 

					
					
						$3,125 

				

		
			 
		

		 

		

			13/13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}]]