Document:

Exhibit 10.4

 

	
   

  	
   

  	
   

  	
  GRANT NO.

  

 

REALD INC.

2010 STOCK INCENTIVE PLAN

NONSTATUTORY STOCK OPTION
AGREEMENT

 

The Company hereby grants an Option to purchase
Shares to the Optionee named below.  The
terms and conditions of the Option are set forth in this cover sheet, in the
attached Nonstatutory Stock Option Agreement and in the RealD Inc. 2010 Stock
Incentive Plan as it may be amended from time to time.  This cover sheet is incorporated into and a
part of the attached Nonstatutory Stock Option Agreement (together, the
“Agreement”).

 

Date of Option Grant: 
                                    ,
[YEAR]

 

Name of Optionee:

 

Number of Shares Covered by Option: 
                        
Shares

 

Exercise Price per Share: 
$          .

 

Fair Market Value of a Share on Date of Option
Grant: 
$          .

 

Expiration  Date: 
                          ,
[YEAR] [DO NOT EXCEED TEN YEARS FROM DATE OF GRANT]

 

Vesting Calculation Date: 
                          ,
[YEAR]

 

Vesting Schedule:

 

Subject to all the terms of the Agreement and
your continued Service, your right to purchase Shares under this Option shall
vest as to one-fourth (1/4) of the total number of Shares covered by this
Option, as shown above, on the first anniversary of the Vesting Calculation Date.  Thereafter, the number of
Shares which you may purchase under this Option shall vest at the rate of
one-forty-eighth (1/48) of the total number of Shares covered by this Option
per calendar month on the first day of each of the thirty-five (35) months
following the month of the first anniversary of the Vesting Calculation Date and the final one-forty-eighth (1/48) of the total number of
Shares covered by this Option shall vest on the fourth anniversary of the
Vesting Calculation Date.

 

In the event you experience a Qualifying
Termination, in accordance with the Employment Agreement and subject to
Section 2 of this Agreement, either before or after the Change in Control
Period, if any, then this Option shall become incrementally vested on an
accelerated basis on the Qualifying Termination Date as if the Qualifying
Termination had occurred twenty-four (24) months after the Qualifying
Termination Date.  Subject to the next
paragraph, the remaining unvested portion of the Option shall be forfeited
without consideration on the 90th day after your Qualifying
Termination Date.

 

In the event you experience a Qualifying
Termination, in accordance with the Employment Agreement, and subject to
Section 2 of this Agreement, and your Qualifying Termination Date occurs
during the Change in Control Period then the remaining outstanding unvested
portion of this Option will become fully vested as of the later of either your
Qualifying Termination Date or immediately prior to the consummation of the
Change in Control.

 

 

In the event of a Change in Control and if you
do not experience a Qualifying Termination, in accordance with the Employment
Agreement and subject to Section 2 of this Agreement, and if you are still employed as the Company’s Chief Executive Officer as of
the consummation of the Change in Control, and (i) the Option is not
assumed by or substituted into comparable equity incentives of the acquirer in
the Change in Control transaction, or merger or acquisition or similar
transaction involving the Company, then the outstanding unvested portion of
this Option will become fully vested and exercisable as of immediately prior to
the consummation of the Change in Control, or merger or acquisition or similar
transaction involving the Company; or (ii) you are still employed as the Company’s
Chief Executive Officer as of the Illiquidity Date, then the outstanding
unvested portion of this Option will become fully vested and exercisable as of
immediately prior to the Illiquidity Date.

 

In all cases, the resulting aggregate number of
vested Shares will be rounded down to the nearest whole number.  Except as may be provided above, no Shares
subject to this Option will vest after your employment with the Company has
terminated for any reason.

 

By signing this cover
sheet, you agree to all of the terms and conditions described in the Agreement
and in the Plan and the Plan’s prospectus. 
You are also acknowledging receipt of this Agreement and a copy of the
Plan and the Plan’s prospectus.

 

 

	
  Optionee:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  
	
  Title:

  	
   

  	
   

  

 

 

Attachment

 

2

 

REALD INC.

2010 STOCK INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION
AGREEMENT

 

	
  1.

  	
   

  	
  The Plan and Other Agreements

  	
   

  	
  The text of the Plan is incorporated in this
  Agreement by reference. Certain capitalized terms used in this Agreement are
  defined in the Plan and Section 3 below.

   

  This Agreement and the Plan constitute the
  entire understanding between you and the Company regarding this Option. Any
  prior agreements, commitments or negotiations concerning this Option are
  superseded.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Release

  	
   

  	
  In
  order to receive any payments or benefits under Section 3(d) of your
  Employment Agreement, including, among other things and without limitation,
  acceleration of vesting, as described in the Vesting Schedule on the attached
  cover sheet, as applicable, you must comply with the terms of your Employment
  Agreement and timely execute and deliver to the Company (and not revoke) a
  Release.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Certain Additional Definitions

   

   

  	
   

  	
  For purposes of this Option, the following
  definitions (in addition to those terms defined in the Plan and the cover
  sheet) apply:

   

  (a) 
  “Cause” has the meaning set forth in
  your Employment Agreement during the Term of the Employment Agreement. In addition, during the Term of the Employment Agreement, all
  notice, cure, procedural and other provisions relating to the determination
  of Cause shall apply in the precise manner set forth in the Employment
  Agreement, and not based on the default rules set forth in the Plan.
  Without limiting the foregoing, the last sentence of Section 2(f) of
  the Plan (i.e., “In each of the foregoing
  subclauses (i) through (v), whether or not a “Cause” event has occurred
  will be determined by the Company’s chief human resources officer or other
  person performing that function or, in the case of Participants who are Directors
  or Officers or Section 16 Persons, the Board, each of whose
  determination shall be final, conclusive and binding”) shall not apply for
  purposes of this Agreement during the Term of the Employment Agreement.

   

  (b) 
  “Change in Control” has the meaning
  set forth in your 

  

 

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  Employment
  Agreement, even if the
  Employment Agreement has expired or terminated.

   

  (c) 
  “Change in Control Period” means the
  time period that commences on the date that is ninety (90) days before a
  Change in Control and extends through the date that is twenty-four (24)
  months after a Change in Control.

   

  (d) 
  “Disability” has the meaning set forth
  in your Employment Agreement, even if the Employment Agreement has expired or terminated.

   

  (e)  “Employment
  Agreement” means the employment agreement you entered into with
  the Company dated [           ]
  as may be amended from time to time.

   

  (f) 
  “Established Securities Market” has
  the meaning set forth in your Employment Agreement during the Term of the
  Employment Agreement.

   

  (g) 
  “Good Reason” has the meaning set
  forth in your Employment Agreement during the Term of the Employment
  Agreement.

   

  (h)  “Illiquidity
  Date” means the first date on or after a Change in Control wherein
  the shares of the acquirer of the Company (into which the Shares underlying
  the Option have been converted or substituted) are not publicly-traded on an
  Established Securities Market.

   

  (i) 
  “Qualifying Termination” has the
  meaning set forth in your Employment Agreement during the Term of the
  Employment Agreement.

   

  (j) 
  “Qualifying Termination Date” has the
  meaning set forth in your Employment Agreement during the Term of the
  Employment Agreement.

   

  (k) 
  “Release” means, during the Term of
  the Employment Agreement, the separation
  agreement and general release of claims in favor of the Company, any
  affiliates or related entities, and their employees and affiliates, in the form
  and content attached to your Employment Agreement as Exhibit A.

   

  (l) 
  “Term” has the meaning set forth in
  your Employment Agreement, even if the
  Employment Agreement has expired or terminated.

   

  (m) 
  “Termination Date” has the meaning set
  forth in your Employment Agreement, even if the Employment Agreement has 

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
  expired or terminated.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Nonstatutory Stock Option

  	
   

  	
  This Option is not intended to be an
  Incentive Stock Option under section 422 of the Code and will be interpreted
  accordingly.

   

  This Option is not intended to be deferred
  compensation under section 409A of the Code and will be interpreted
  accordingly.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Vesting

  	
   

  	
  This Option is only exercisable before it
  expires and only with respect to the vested portion of the Option. This
  Option will vest according to the Vesting Schedule described in the cover
  sheet of this Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Option term

  	
   

  	
  Your Option will expire in all cases no later
  than the Expiration Date, as shown on the cover sheet. Your Option will
  expire earlier if your employment with the Company terminates, as described
  in Sections 7 and 8 below.

   

  If the Expiration Date specified in the
  attached cover sheet falls on a day on which the New York Stock Exchange
  (“NYSE”) is open for trading, then any unexercised portion of this Option
  that is outstanding shall be forfeited without consideration as of
  3:45 P.M. New York time on the Expiration Date. However, if the
  Expiration Date specified in the attached cover sheet falls on any day on
  which the NYSE is not open for trading, then your ability to exercise this Option
  will terminate as of 3:45 P.M. New York time on the last day in which
  the NYSE is open for trading that occurs immediately prior to the Expiration
  Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Termination - for Cause or without Good Reason

  	
   

  	
  If your employment with the Company is terminated
  by the Company for Cause, then you shall immediately forfeit all rights to
  your Option without consideration, including the vested portion of the
  Option, and the entire Option shall immediately expire, and any rights,
  payments and benefits with respect to the Option shall be subject to
  reduction or recoupment in accordance with the Clawback Policy and
  Section 13(d) of the Plan.

   

  In
  the event that, while the Option is outstanding during the Term of the
  Employment Agreement, the Company provides you with written notice of its
  intention to terminate you for Cause in accordance with
  Section 4(b) of the Employment Agreement, you shall be given the
  right to cure any such Cause event if and to the extent you are provided a
  cure right under Section 4(b) of the Employment Agreement (the
  “Cure Period”), any right you have to exercise the Option shall be suspended, and if the
  actions or inactions giving rise

  

 

5

 

	
   

  	
   

  	
   

  	
   

  	
  to
  such a termination for Cause are not timely cured by you during the Cure
  Period, then the entire Option,
  including the vested portion of the Option, shall immediately expire, as
  described in the paragraph above. In the event that you
  timely cure the circumstances giving rise to such a termination for Cause
  within the Cure Period, the Company shall effective immediately remove the
  suspension and reinstate your right to exercise the Option.

   

  If your employment with the Company is
  terminated by you without Good Reason and the Termination Date is prior to the
  first anniversary of the Vesting Calculation Date, no portion of the Option
  shall vest and your Option shall be forfeited without consideration and the
  entire Option shall immediately expire on your Termination Date. If your
  employment with the Company is terminated by you without Good Reason and your Termination Date occurs prior to
  the end date of the six (6) months notice period required under
  Section 4(g) of the Employment Agreement, then your Option, including any vested portion of the Option, shall be
  forfeited without consideration and the entire Option shall immediately
  expire on your Termination Date. If your employment with the Company is
  terminated by you without Good Reason after the first anniversary of the
  Vesting Calculation Date and your Termination Date occurs on or after the end
  date of the six (6) month notice period required under
  Section 4(g) of the Employment Agreement, the vested portion of the
  Option shall remain exercisable by you in accordance with Section 8 below.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Exercise Period After Termination - General

  	
   

  	
  If, while the Option is outstanding, your
  employment with the Company is terminated for any reason (including, but not
  limited to, death and Disability) other than (x) being terminated by the
  Company for Cause or (y) being terminated by you without Good Reason on or before the expiration of the Term of the
  Employment Agreement wherein you failed to provide written notice of such termination to
  the Company at least six (6) months prior to your Termination Date, then the unvested portion of your Option shall be forfeited without
  consideration and shall immediately expire on your Termination Date and the
  vested portion of your Option will expire at the earlier of
  (i) the close of business at Company headquarters on the first
  anniversary of the earlier of your Termination Date or Qualifying Termination
  Date, (ii) the Expiration Date set forth in the attached cover sheet and
  further described in Section 6 above, or (iii) the date on which
  the Option is cancelled (and not substituted or assumed) pursuant to a Change
  in Control or merger or acquisition or similar transaction involving the
  Company. In no event is the Option exercisable
  after the Expiration Date. Moreover, the Option will terminate on an earlier
  date if the Option expires earlier as provided herein.

  

 

6

 

	
  9.

  	
   

  	
  Leaves of Absence

  	
   

  	
  For purposes of this Option, your employment
  with the Company does not terminate when you go on a bona fide
  leave of absence that was approved by the Company in writing, if the terms of
  the leave provide for continued employment crediting, or when continued
  employment crediting is required by applicable law. Your employment with the
  Company terminates in any event when the approved leave ends unless you
  immediately return to active work.

   

  The Company determines which leaves count for
  this purpose (along with determining the effect of a leave of absence on
  vesting of the Option), and when your employment terminates for all purposes
  under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Notice of Exercise

  	
   

  	
  When you wish to exercise this Option, you
  must notify the Company by filing a “Notice of Exercise” form at the address
  given on the form. Your notice must specify how many Shares you wish to
  purchase. Your notice must also specify how your Shares should be registered
  (in your name only or in your and your spouse’s names as community property
  or as joint tenants with right of survivorship). The notice will be effective
  when it is received by the Company.

   

  If someone else wants to exercise this Option
  after your death, that person must prove to the Company’s satisfaction that
  he or she is entitled to do so.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Form of Payment

  	
   

  	
  When you submit your notice of exercise, you
  must include payment of the Exercise Price for the Shares you are purchasing.
  Payment may be made in one (or a combination) of the following forms:

   

  ·      Cash, your personal check,
  a cashier’s check or a money order.

   

  ·      Shares which have already
  been owned by you for more than six (6) months and which are surrendered
  to the Company. The Fair Market Value of the Shares, determined as of the
  effective date of the Option exercise, will be applied to the Exercise Price.

   

  ·      To the extent a public market for the Shares exists as determined by
  the Company, by Cashless Exercise (as defined in the Plan) through delivery
  (on a form prescribed by the Company) of an irrevocable direction to a
  securities broker to sell Shares and to deliver all or part of the sale
  proceeds to the Company in payment of the aggregate Exercise Price.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Withholding Taxes

  	
   

  	
  You will be solely responsible for payment of
  any and all applicable taxes associated with this Option.

   

  You will not be allowed to exercise this
  Option unless you make acceptable arrangements to pay any withholding or
  other taxes that

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
  may be due as a result of the Option exercise
  or sale of Shares acquired under this Option.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Restrictions
  on Exercise and Resale

  	
   

  	
  By signing this Agreement,
  you agree not to (i) exercise this Option (“Exercise Prohibition”), or
  (ii) sell, transfer, dispose of, pledge, hypothecate, make any short
  sale of, or otherwise effect a similar transaction of any Shares acquired
  under this Option (each a “Sale Prohibition”) at a time when applicable laws,
  regulations or Company or underwriter trading policies prohibit the exercise
  or disposition of Shares. The Company
  will not permit you to exercise this Option if the issuance of Shares at that
  time would violate any law or regulation. The Company shall have the
  right to designate one or more periods of time, each of which generally will
  not exceed one hundred eighty (180) days in length (provided however,
  that such period may be extended in connection with the Company’s release (or
  announcement of release) of earnings results or other material news or
  events), and to impose an Exercise Prohibition and/or Sale Prohibition, if
  the Company determines (in its sole discretion) that such
  limitation(s) is needed in connection with a public offering of Shares
  or to comply with an underwriter’s request or trading policy, or could in any
  way facilitate a lessening of any restriction on transfer pursuant to the
  Securities Act or any state securities laws with respect to any issuance of
  securities by the Company, facilitate the registration or qualification of
  any securities by the Company under the Securities Act or any state
  securities laws, or facilitate the perfection of any exemption from the
  registration or qualification requirements of the Securities Act or any
  applicable state securities laws for the issuance or transfer of any securities.
  The Company may issue stop/transfer instructions and/or appropriately legend
  any stock certificates issued pursuant to this Option in order to ensure
  compliance with the foregoing. Any such Exercise Prohibition shall not alter
  the vesting schedule set forth in this Agreement other than to limit the
  periods during which this Option shall be exercisable.

   

  If the sale of Shares
  under the Plan is not registered under the Securities Act, but an exemption
  is available which requires an investment or other representation, you shall
  represent and agree at the time of exercise that the Shares being acquired
  upon exercise of this Option are being acquired for investment, and not with
  a view to the sale or distribution thereof, and shall make such other
  representations as are deemed necessary or appropriate by the Company and its
  counsel.

   

  You may also be required,
  as a condition of exercise of this Option, to enter into any Company
  stockholder agreement or other agreements that are applicable to
  stockholders.

  

 

8

 

	
  14.

  	
   

  	
  Transfer of Option

  	
   

  	
  Prior to your death, only you may exercise
  this Option. You cannot transfer, assign, alienate, pledge, attach, sell, or
  encumber this Option. If you attempt to do any of these things this Option
  will immediately become invalid. You may, however, dispose of this Option in
  your will or it may be transferred by the laws of descent and distribution.
  Regardless of any marital property settlement agreement, the Company is not
  obligated to honor a notice of exercise from your spouse, nor is the Company
  obligated to recognize your spouse’s interest in your Option in any other
  way.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Retention Rights

  	
   

  	
  Your Option or this Agreement does not give
  you the right to be retained by the Company (or any Parent or any
  Subsidiaries or Affiliates) in any capacity; provided, however, the foregoing
  statement shall not limit any of your rights under the Employment Agreement.
  Subject to the Employment Agreement, the Company (or any Parent and any Subsidiaries
  or Affiliates) reserves the right to terminate your Service at any time and
  for any reason.

   

  This Option and the Shares subject to the
  Option are not intended to constitute or replace any pension rights or
  compensation and are not to be considered compensation of a continuing or
  recurring nature, or part of your normal or expected compensation, and in no
  way represent any portion of your salary, compensation or other remuneration
  for any purpose, including but not limited to, calculating any severance,
  resignation, termination, redundancy, dismissal, end of service payments,
  bonuses, long-service awards, pension or retirement benefits or similar
  payments.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Stockholder Rights

  	
   

  	
  Other than with regard to other Company
  securities which you may own, you, or your estate or heirs, have no rights as
  a stockholder of the Company with regard to the Option until a certificate
  for your Option’s Shares has been issued. No adjustments are made for
  dividends or other rights if the applicable record date occurs before your
  stock certificate is issued, except as described in the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Adjustments

  	
   

  	
  In the event of a stock split, a stock
  dividend or a similar change in the Company stock, the number of Shares
  covered by this Option (rounded down to the nearest whole number) and the
  Exercise Price per Share may be adjusted pursuant to the Plan. Your Option
  shall be subject to the terms of the agreement of merger, liquidation or
  reorganization in the event the Company is subject to such corporate activity.

  

 

9

 

	
  18.

  	
   

  	
  Legends

  	
   

  	
  All certificates representing the Shares
  issued upon exercise of this Option may, where applicable,
  have endorsed thereon the following legends and any other legend the Company
  determines appropriate:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  “THE SHARES REPRESENTED BY THIS CERTIFICATE
  ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN AN AGREEMENT
  BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN
  INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE
  COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE
  COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS
  CERTIFICATE.”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  “THE SHARES REPRESENTED HEREBY HAVE NOT BEEN
  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
  SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
  THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY
  AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Applicable Law

  	
   

  	
  This Agreement will be interpreted and
  enforced under the laws of the State of California without reference to the
  conflicts of law provisions thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Voluntary Participant

  	
   

  	
  You acknowledge that you are voluntarily
  participating in the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  No Rights to Future Awards

  	
   

  	
  Subject to the Employment Agreement, your
  rights, if any, in respect of or in connection with this Option or any future
  Awards are derived solely from the discretionary decision of the Company to
  permit you to participate in the Plan and to benefit from a discretionary
  future Award. By accepting this Option, you expressly acknowledge that there
  is no obligation on the part of the Company to continue the Plan and/or grant
  any additional Awards to you or benefits in lieu of Options or any other
  Awards even if Options have been granted repeatedly in the past. All
  decisions with respect to future Awards, if any, will be at the sole
  discretion of the Committee.

  

 

10

 

	
  22.

  	
   

  	
  Future Value

  	
   

  	
  The future value of the underlying Shares is
  unknown and cannot be predicted with certainty. If the underlying Shares do
  not increase in value after the Date of Option Grant, the Option will have
  little or no value. If you exercise the Option and obtain Shares, the value
  of the Shares acquired upon exercise may increase or decrease in value, even
  below the Exercise Price.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  No Right to Damages

  	
   

  	
  You will have no right to bring a claim or to
  receive damages if any portion of the Option is cancelled or expires
  unexercised. The loss of existing or potential profit in the Option will not
  constitute an element of damages in the event of the termination of your
  Service for any reason, even if the termination is in violation of an
  obligation of the Company or a Parent or a Subsidiary or an Affiliate to you.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  No Advice Regarding Grant

  	
   

  	
  The Company has not provided any tax, legal
  or financial advice, nor has the Company made any recommendations regarding
  your participation in the Plan, or your acquisition or sale of the underlying
  Shares. You are hereby advised to consult with your own personal tax, legal
  and financial advisors regarding your participation in the Plan before taking
  any action related to the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Data Privacy

  	
   

  	
  You
  hereby explicitly and unambiguously consent to the collection, use and
  transfer, in electronic or other form, of your personal data as described in
  this document by the Company for the exclusive purpose of implementing,
  administering and managing your participation in the Plan. You understand
  that the Company holds certain personal information about you, including, but
  not limited to, name, home address and telephone number, date of birth,
  social security or insurance number or other identification number, salary,
  nationality, job title, any shares of stock or directorships held in the
  Company, details of all Awards or any other entitlement to Shares awarded,
  canceled, purchased, exercised, vested, unvested or outstanding in your favor
  for the purpose of implementing, managing and administering the Plan
  (“Data”). You understand that the Data may be transferred to any third
  parties assisting in the implementation, administration and management of the
  Plan, that these recipients may be located in your country or elsewhere and
  that the recipient country may have different data privacy laws and
  protections than your country. You may request a list with the names and
  addresses of any potential recipients of the Data by contacting the
  Committee. You authorize the recipients to receive, possess, use, retain and
  transfer the Data, in electronic or other form, for the purposes of
  implementing, administering and managing your participation in the Plan,
  including any requisite transfer of such Data, as may be required to a broker
  or other third party with whom you may elect to deposit any Shares acquired
  under the Plan. You understand that Data will be held only as long as is
  necessary to implement, administer and manage participation in the Plan. You
  understand that you may view your

  

 

11

 

	
   

  	
   

  	
   

  	
   

  	
  Data,
  request additional information about the storage and processing of the Data,
  require any necessary amendments to the Data or refuse or withdraw the
  consents herein, in any case without cost, by contacting the Committee in
  writing. You understand that refusing or withdrawing consent may affect your
  ability to participate in the Plan. For more information on the consequences
  of refusing to consent or withdrawing consent, you may contact the Committee
  and/or the Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Other Information

  	
   

  	
  You
  agree to receive stockholder information, including copies of any annual
  report, proxy statement and periodic report, from the Company’s website at
  www.reald.com, if the Company wishes to provide such information through its
  website. You acknowledge that copies of the Plan, Plan prospectus, Plan
  information and stockholder information are also available upon written or
  telephonic request to the Committee and/or the Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Other Plan Provisions

  	
   

  	
  The Company agrees that the following
  sections of the Plan shall not apply to this Agreement or the Option granted
  hereunder: (a) Section 15(b)(ii) of the Plan; and (b) the
  provisions in the first sentence of Section 4(d) of the Plan
  relating to rights of first refusal and rights of repurchase.

  

 

By signing the cover sheet
of this Agreement, you agree to all of the terms and conditions described above
and in the Plan and Plan prospectus.

 

12

 

	
   

  	
   

  	
   

  	
  GRANT NO.

  

 

REALD INC.

NOTICE OF EXERCISE OF

NONSTATUTORY STOCK OPTION BY
OPTIONEE

 

RealD Inc.

100 N. Crescent Drive, Suite 120

Beverly Hills, California 90210

Attention:  Secretary

 

	
  Re:

  	
  Exercise of Nonstatutory Stock Option to
  Purchase Shares of Company Stock

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [PRINT NAME OF OPTIONEE]

  	
   

  

 

Pursuant to the Nonstatutory Stock Option
Agreement dated
                                      ,
[DATE] between RealD Inc., a Delaware corporation, (the “Company”) and me, made
pursuant to the 2010 Stock Incentive Plan  (the “Plan”), I
hereby request to purchase
              
Shares (whole number only and must be not less than 25 Shares or the remaining
number of vested Shares under this Option) of common stock of the Company (the
“Shares”), at the exercise price of
$                    
per Share.  I am hereby making full
payment of the aggregate exercise price by one or more of the following forms
of payment in accordance with the whole number percentages that I have provided
below.  I further understand and agree
that I will timely satisfy any and all applicable tax withholding obligations
as a condition of this Option exercise.

 

	
   

  	
  Percentage

  of Payment

  	
   

  	
  Form of Payment As
  Provided In the Nonstatutory Stock

  Option Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  %

  	
  Cash/My Personal Check/Cashier’s Check/Money
  Order (payable to “RealD Inc.”)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  %

  	
  Cashless Exercise as provided in the
  Nonstatutory Stock Option Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  %

  	
  Surrender of vested Shares (Valued At Their
  Fair Market Value) Owned By Me For More Than Six (6) Months

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  100

  	
  %

  	
   

  

 

Check
one:             ̈  The Shares certificate is to be
issued and registered in my name only.

 

 ̈  The Shares certificate is to be issued and
registered in my name and my spouse’s name.

 

	
   

  	
   

  	
   

  
	
   

  	
  [PRINT SPOUSE’S
  NAME, IF CHECKING SECOND BOX]

  	
   

  

 

Check one (if checked second box above):

 

 ̈
Community Property or
 ̈
Joint Tenants With Right of Survivorship

 

I acknowledge that I have received, understand
and continue to be bound by all of the terms and conditions set forth in the
Plan, Plan prospectus and in the Nonstatutory Stock Option Agreement.

 

	
  Dated:

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
  (Optionee’s
  Signature)

  	
   

  	
  (Spouse’s
  Signature)**

  
	
   

  	
   

  	
  **Spouse must sign this
  Notice of Exercise if listed above.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Full Address)

  	
   

  	
  (Full Address)

  

 

*THIS NOTICE
OF EXERCISE MAY BE REVISED BY THE COMPANY AT ANY TIME WITHOUT NOTICEExhibit
10.5

 

GRANT
NO.                           

 

REALD INC.

2010 STOCK INCENTIVE PLAN

NONSTATUTORY STOCK OPTION
AGREEMENT

 

The Company hereby grants an Option to purchase
Shares to the Optionee named below.  The
terms and conditions of the Option are set forth in this cover sheet, in the
attached Nonstatutory Stock Option Agreement and in the RealD Inc. 2010 Stock
Incentive Plan as it may be amended from time to time.  This cover sheet is incorporated into and a
part of the attached Nonstatutory Stock Option Agreement (together, the “Agreement”).

 

Date of Option Grant: 
                                    ,
[YEAR]

 

Name of Optionee:

 

Number of Shares Covered by Option:

 

Exercise Price per Share: 
$          .

 

Fair Market Value of a Share on Date of Option
Grant: 
$          .

 

Expiration  Date: 
                          ,
[YEAR] [DO NOT EXCEED TEN YEARS FROM GRANT]

 

Vesting Calculation Date: 
                          ,
[YEAR]

 

Vesting Schedule:

 

Subject to all the terms of the Agreement and
your continued Service, your right to purchase Shares under this Option shall
vest as to one-fourth (1/4) of the total number of Shares covered by this
Option, as shown above, on the first anniversary of the Vesting Calculation Date.  Thereafter, the number of
Shares which you may purchase under this Option shall vest at the rate of
one-forty-eighth (1/48) of the total number of Shares covered by this Option
per calendar month on the first day of each of the thirty-five (35) months
following the month of the first anniversary of the Vesting Calculation Date and the final one-forty-eighth (1/48) of the total number of
Shares covered by this Option shall vest on the fourth anniversary of the
Vesting Calculation Date.

 

In the event you experience a Qualifying
Termination, in accordance with the Employment
Agreement and subject to Section 2 of this Agreement, and your Termination
Date occurs during the Change in Control Period, then the outstanding unvested
portion of this Option will become fully vested as of the later of either your
Termination Date or immediately prior to the consummation of the Change in
Control.

 

In all cases, the resulting aggregate number of
vested Shares will be rounded down to the nearest whole number.  Except as may be provided above, no Shares
subject to this Option will vest after your Service has terminated for any
reason.

 

By signing this cover
sheet, you agree to all of the terms and conditions described in the Agreement
and in the Plan and the Plan’s prospectus. 
You are also acknowledging receipt of this Agreement and a copy of the
Plan and the Plan’s prospectus.

 

 

	
  Optionee:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment

  	
   

  	
   

  

 

2

 

REALD INC.

2010 STOCK INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION
AGREEMENT

 

	
  1.

  	
   

  	
  The Plan and Other Agreements

  	
   

  	
  The text of the Plan is incorporated in this
  Agreement by reference. Certain capitalized terms used in this Agreement are
  defined in the Plan and Section 3 below.

   

  This Agreement and the Plan constitute the
  entire understanding between you and the Company regarding this Option. Any
  prior agreements, commitments or negotiations concerning this Option are
  superseded.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Release

  	
   

  	
  In
  order to receive any payments or benefits under Section 3(d) of
  your Employment Agreement, including, among other things and without
  limitation, acceleration of vesting, as described in the Vesting Schedule on
  the attached cover sheet, as applicable, you must comply with the terms of
  your Employment Agreement and timely execute and deliver to the Company (and
  not revoke) a Release.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Certain Additional Definitions

   

   

  	
   

  	
  For purposes of this Option, the following
  definitions (in addition to those terms defined in the Plan and the cover
  sheet) apply:

   

  (a) 
  “Cause” has the meaning set forth in
  your Employment Agreement during the Term of the Employment Agreement.

   

  (b) 
  “Change in Control” has the meaning
  set forth in your Employment Agreement, even if the Employment Agreement has expired or terminated.

   

  (c) 
  “Change in Control Period” means the
  time period that commences on the date that is ninety (90) days before a
  Change in Control and extends through the date that is twenty-four (24)
  months after a Change in Control.

   

  (d) 
  “Disability” has the meaning set forth
  in your Employment Agreement, even if the Employment Agreement has expired or terminated.

   

  (e)  “Employment
  Agreement” means the employment agreement you entered into with
  the Company dated May 25, 2010, as may be amended from time to time.

   

  (f) 
  “Good Reason” has the meaning set
  forth in your Employment Agreement during the Term of the Employment
  Agreement.

   

  (g) 
  “Qualifying Termination” has the
  meaning set forth in your Employment Agreement during the Term of the
  Employment

  

 

3

 

	
   

  	
   

  	
   

  	
   

  	
  Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (h) 
  “Release” means, during the Term of
  the Employment Agreement, the
  separation agreement and general release of claims in favor of the Company,
  any affiliates or related entities, and their employees and affiliates, in the form
  and content attached to your Employment Agreement as Exhibit A.

   

  (i) 
  “Term” has the meaning set forth in
  your Employment Agreement, even if the
  Employment Agreement has expired or terminated.

   

  (j) 
  “Termination Date” has the meaning set
  forth in your Employment Agreement, even if the Employment Agreement has expired or terminated.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Nonstatutory Stock Option

  	
   

  	
  This Option is not intended to be an
  Incentive Stock Option under section 422 of the Code and will be interpreted
  accordingly.

   

  This Option is not intended to be deferred
  compensation under section 409A of the Code and will be interpreted
  accordingly.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Vesting

  	
   

  	
  This Option is only exercisable before it
  expires and only with respect to the vested portion of the Option. This
  Option will vest according to the Vesting Schedule described in the cover
  sheet of this Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Option term

  	
   

  	
  Your Option will expire in all cases no later
  than the Expiration Date, as shown on the cover sheet. Your Option will
  expire earlier if your Service terminates, as described in Sections 7 and 8
  below.

   

  If the Expiration Date specified in the
  attached cover sheet falls on a day on which the New York Stock Exchange
  (“NYSE”) is open for trading, then any unexercised portion of this Option
  that is outstanding shall be forfeited without consideration as of
  3:45 P.M. New York time on the Expiration Date. However, if the
  Expiration Date specified in the attached cover sheet falls on any day on
  which the NYSE is not open for trading, then your ability to exercise this
  Option will terminate as of 3:45 P.M. New York time on the last day in
  which the NYSE is open for trading that occurs immediately prior to the
  Expiration Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Termination - for Cause or without Good Reason

  	
   

  	
  If your Service is terminated by the Company
  for Cause, then you shall immediately forfeit all rights to your Option
  without consideration, including the vested portion of the Option, and the
  entire Option shall immediately expire, and any rights, payments and benefits
  with respect to the Option shall be subject to reduction or recoupment in
  accordance with the Clawback Policy and Section

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
   13(d) of the Plan.

   

  In
  the event that, while the Option is outstanding during the Term of the
  Employment Agreement, the Company provides you with written notice of its
  intention to terminate your Service for Cause in accordance with
  Section 4(b) of the Employment Agreement, you shall be given the
  right to cure any such Cause event if and to the extent you are provided a
  cure right under Section 4(b) of the Employment Agreement (the
  “Cure Period”), any right you have to exercise the Option shall be suspended, and if the
  actions or inactions giving rise to such a termination for Cause are not
  timely cured by you during the Cure Period, then the entire Option, including the vested portion of the Option, shall
  immediately expire, as described in the paragraph above. In the
  event that you timely cure the circumstances giving rise to such a
  termination for Cause within the Cure Period, the Company shall effective
  immediately remove the suspension and reinstate your right to exercise the
  Option.

   

  If your Service is terminated by you without
  Good Reason and the Termination Date is prior to the first anniversary of the
  Vesting Calculation Date, no portion of the Option shall vest and your Option
  shall be forfeited without consideration and the entire Option shall
  immediately expire on your Termination Date. If your Service is terminated by
  you without Good Reason and your Termination Date occurs prior to the end date of the six
  (6) months notice period required under Section 4(g) of the
  Employment Agreement, then your Option, including any vested portion of the Option, shall be
  forfeited without consideration and the entire Option shall immediately
  expire on your Termination Date. If your Service is terminated by you without
  Good Reason after the first anniversary of the Vesting Calculation Date and
  your Termination Date occurs on or after the end date of the six
  (6) month notice period required under Section 4(g) of the
  Employment Agreement, the vested portion of the Option shall remain
  exercisable by you in accordance with Section 8 below.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Exercise Period After Termination - General

  	
   

  	
  If, while the Option is outstanding, your
  Service is terminated for any reason (including, but not limited to, death
  and Disability) other than (x) being terminated by the Company for Cause
  or (y) being terminated by you without Good Reason on or before the expiration of the Term of the
  Employment Agreement wherein you failed to provide written notice of such termination to
  the Company at least six (6) months prior to your Termination Date, then the unvested portion of your Option shall be forfeited without
  consideration and shall immediately expire on your Termination Date and the
  vested portion of your Option will expire at the earlier of
  (i) the close of business at Company headquarters on the first
  anniversary of your Termination Date, (ii) the Expiration Date set forth
  in the attached cover sheet and

  

 

5

 

	
   

  	
   

  	
   

  	
   

  	
  further
  described in Section 6 above, or (iii) the date on which the Option
  is cancelled (and not substituted or assumed) pursuant to a Change in Control
  or merger or acquisition or similar transaction involving the Company. In no event is the Option exercisable after the Expiration Date.
  Moreover, the Option will terminate on an earlier date if the Option expires
  earlier as provided herein.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Leaves of Absence

  	
   

  	
  For purposes of this Option, your Service
  does not terminate when you go on a bona fide
  leave of absence that was approved by the Company in writing, if the terms of
  the leave provide for continued Service crediting, or when continued Service
  crediting is required by applicable law. Your Service terminates in any event
  when the approved leave ends unless you immediately return to active work.

   

  The Company determines which leaves count for
  this purpose (along with determining the effect of a leave of absence on
  vesting of the Option), and when your Service terminates for all purposes
  under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Notice of Exercise

  	
   

  	
  When you wish to exercise this Option, you
  must notify the Company by filing a “Notice of Exercise” form at the address
  given on the form. Your notice must specify how many Shares you wish to
  purchase. Your notice must also specify how your Shares should be registered
  (in your name only or in your and your spouse’s names as community property
  or as joint tenants with right of survivorship). The notice will be effective
  when it is received by the Company.

   

  If someone else wants to exercise this Option
  after your death, that person must prove to the Company’s satisfaction that
  he or she is entitled to do so.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Form of Payment

  	
   

  	
  When you submit your notice of exercise, you
  must include payment of the Exercise Price for the Shares you are purchasing.
  Payment may be made in one (or a combination) of the following forms:

   

  ·                  Cash, your personal check, a cashier’s check or a money order.

   

  ·                  Shares which have already been owned by you for more than six
  (6) months and which are surrendered to the Company. The Fair Market
  Value of the Shares, determined as of the effective date of the Option
  exercise, will be applied to the Exercise Price.

   

  ·                  To the extent a public market for the
  Shares exists as determined by the Company, by Cashless Exercise (as defined
  in the Plan) through delivery (on a form prescribed by the Company) of an irrevocable
  direction to a securities broker to sell Shares and to deliver all or part of
  the sale proceeds to the Company in payment

  

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  of the aggregate
  Exercise Price.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Withholding Taxes

  	
   

  	
  You will be solely responsible for payment of
  any and all applicable taxes associated with this Option.

   

  You will not be allowed to exercise this
  Option unless you make acceptable arrangements to pay any withholding or
  other taxes that may be due as a result of the Option exercise or sale of
  Shares acquired under this Option.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Restrictions
  on Exercise and Resale

  	
   

  	
  By signing this Agreement,
  you agree not to (i) exercise this Option (“Exercise Prohibition”), or
  (ii) sell, transfer, dispose of, pledge, hypothecate, make any short
  sale of, or otherwise effect a similar transaction of any Shares acquired
  under this Option (each a “Sale Prohibition”) at a time when applicable laws,
  regulations or Company or underwriter trading policies prohibit the exercise
  or disposition of Shares. The Company
  will not permit you to exercise this Option if the issuance of Shares at that
  time would violate any law or regulation. The Company shall have the
  right to designate one or more periods of time, each of which generally will
  not exceed one hundred eighty (180) days in length (provided however,
  that such period may be extended in connection with the Company’s release (or
  announcement of release) of earnings results or other material news or
  events), and to impose an Exercise Prohibition and/or Sale Prohibition, if
  the Company determines (in its sole discretion) that such
  limitation(s) is needed in connection with a public offering of Shares
  or to comply with an underwriter’s request or trading policy, or could in any
  way facilitate a lessening of any restriction on transfer pursuant to the
  Securities Act or any state securities laws with respect to any issuance of
  securities by the Company, facilitate the registration or qualification of
  any securities by the Company under the Securities Act or any state
  securities laws, or facilitate the perfection of any exemption from the
  registration or qualification requirements of the Securities Act or any
  applicable state securities laws for the issuance or transfer of any securities.
  The Company may issue stop/transfer instructions and/or appropriately legend
  any stock certificates issued pursuant to this Option in order to ensure
  compliance with the foregoing. Any such Exercise Prohibition shall not alter
  the vesting schedule set forth in this Agreement other than to limit the
  periods during which this Option shall be exercisable.

   

  If the sale of Shares
  under the Plan is not registered under the Securities Act, but an exemption
  is available which requires an investment or other representation, you shall
  represent and agree at the time of exercise that the Shares being acquired
  upon exercise of this Option are being acquired for investment, and not with
  a view to the sale or distribution thereof, and shall make such other
  representations as are deemed necessary or appropriate by the Company and its

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
  counsel.

   

  You may also be required,
  as a condition of exercise of this Option, to enter into any Company
  stockholder agreement or other agreements that are applicable to
  stockholders.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Transfer of Option

  	
   

  	
  Prior to your death, only you may exercise
  this Option. You cannot transfer, assign, alienate, pledge, attach, sell, or
  encumber this Option. If you attempt to do any of these things, this Option
  will immediately become invalid. You may, however, dispose of this Option in
  your will or it may be transferred by the laws of descent and distribution.
  Regardless of any marital property settlement agreement, the Company is not obligated
  to honor a notice of exercise from your spouse, nor is the Company obligated
  to recognize your spouse’s interest in your Option in any other way.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Retention Rights

  	
   

  	
  Your Option or this Agreement does not give
  you the right to be retained by the Company (or any Parent or any
  Subsidiaries or Affiliates) in any capacity; provided, however, the foregoing
  statement shall not limit any of your rights under the Employment Agreement.
  Subject to the Employment Agreement, the Company (or any Parent and any
  Subsidiaries or Affiliates) reserves the right to terminate your Service at
  any time and for any reason.

   

  This Option and the Shares subject to the
  Option are not intended to constitute or replace any pension rights or
  compensation and are not to be considered compensation of a continuing or
  recurring nature, or part of your normal or expected compensation, and in no
  way represent any portion of your salary, compensation or other remuneration
  for any purpose, including but not limited to, calculating any severance,
  resignation, termination, redundancy, dismissal, end of service payments,
  bonuses, long-service awards, pension or retirement benefits or similar
  payments.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Stockholder Rights

  	
   

  	
  You, or your estate or heirs, have no rights
  as a stockholder of the Company with regard to the Option until a certificate
  for your Option’s Shares has been issued. No adjustments are made for
  dividends or other rights if the applicable record date occurs before your
  stock certificate is issued, except as described in the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Adjustments

  	
   

  	
  In the event of a stock split, a stock
  dividend or a similar change in the Company stock, the number of Shares
  covered by this Option (rounded down to the nearest whole number) and the
  Exercise Price per Share may be adjusted pursuant to the Plan. Your Option
  shall be subject to the terms of the agreement of merger, liquidation or
  reorganization in the event the Company is subject to such corporate
  activity.

  

 

8

 

	
  18.

  	
   

  	
  Legends

  	
   

  	
  All certificates representing the Shares
  issued upon exercise of this Option may, where applicable,
  have endorsed thereon the following legends and any other legend the Company
  determines appropriate:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  “THE SHARES REPRESENTED BY THIS CERTIFICATE
  ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH
  SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED
  HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON
  FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON
  WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF
  THE SHARES REPRESENTED BY THIS CERTIFICATE.”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  “THE SHARES REPRESENTED HEREBY HAVE NOT BEEN
  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
  SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
  THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY
  AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Applicable Law

  	
   

  	
  This Agreement will be interpreted and
  enforced under the laws of the State of California without reference to the
  conflicts of law provisions thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Voluntary Participant

  	
   

  	
  You acknowledge that you are voluntarily
  participating in the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  No Rights to Future Awards

  	
   

  	
  Subject to the Employment Agreement, your
  rights, if any, in respect of or in connection with this Option or any future
  Awards are derived solely from the discretionary decision of the Company to
  permit you to participate in the Plan and to benefit from a discretionary
  future Award. By accepting this Option, you expressly acknowledge that there
  is no obligation on the part of the Company to continue the Plan and/or grant
  any additional Awards to you or benefits in lieu of Options or any other
  Awards even if Options have been granted repeatedly in the past. All
  decisions with respect to future Awards, if any, will be at the sole
  discretion of the Committee.

  

 

9

 

	
  22.

  	
   

  	
  Future Value

  	
   

  	
  The future value of the underlying Shares is
  unknown and cannot be predicted with certainty. If the underlying Shares do
  not increase in value after the Date of Option Grant, the Option will have
  little or no value. If you exercise the Option and obtain Shares, the value
  of the Shares acquired upon exercise may increase or decrease in value, even
  below the Exercise Price.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  No Right to Damages

  	
   

  	
  You will have no right to bring a claim or to
  receive damages if any portion of the Option is cancelled or expires
  unexercised. The loss of existing or potential profit in the Option will not
  constitute an element of damages in the event of the termination of your
  Service for any reason, even if the termination is in violation of an
  obligation of the Company or a Parent or a Subsidiary or an Affiliate to you.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  No Advice Regarding Grant

  	
   

  	
  The Company has not provided any tax, legal
  or financial advice, nor has the Company made any recommendations regarding
  your participation in the Plan, or your acquisition or sale of the underlying
  Shares. You are hereby advised to consult with your own personal tax, legal
  and financial advisors regarding your participation in the Plan before taking
  any action related to the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Data Privacy

  	
   

  	
  You
  hereby explicitly and unambiguously consent to the collection, use and
  transfer, in electronic or other form, of your personal data as described in
  this document by the Company for the exclusive purpose of implementing, administering
  and managing your participation in the Plan. You understand that the Company
  holds certain personal information about you, including, but not limited to,
  name, home address and telephone number, date of birth, social security or
  insurance number or other identification number, salary, nationality, job
  title, any shares of stock or directorships held in the Company, details of
  all Awards or any other entitlement to Shares awarded, canceled, purchased,
  exercised, vested, unvested or outstanding in your favor for the purpose of
  implementing, managing and administering the Plan (“Data”). You understand
  that the Data may be transferred to any third parties assisting in the
  implementation, administration and management of the Plan, that these
  recipients may be located in your country or elsewhere and that the recipient
  country may have different data privacy laws and protections than your
  country. You may request a list with the names and addresses of any potential
  recipients of the Data by contacting the Committee. You authorize the
  recipients to receive, possess, use, retain and transfer the Data, in
  electronic or other form, for the purposes of implementing, administering and
  managing your participation in the Plan, including any requisite transfer of
  such Data, as may be required to a broker or other third party with whom you
  may elect to deposit any Shares acquired under the Plan. You understand that
  Data will be held only as long as is necessary to implement, administer and
  manage participation in the Plan. You understand that you may view your

  

 

10

 

	
   

  	
   

  	
   

  	
   

  	
  Data,
  request additional information about the storage and processing of the Data,
  require any necessary amendments to the Data or refuse or withdraw the
  consents herein, in any case without cost, by contacting the Committee in
  writing. You understand that refusing or withdrawing consent may affect your
  ability to participate in the Plan. For more information on the consequences
  of refusing to consent or withdrawing consent, you may contact the Committee
  and/or the Board.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Other Information

  	
   

  	
  You
  agree to receive stockholder information, including copies of any annual
  report, proxy statement and periodic report, from the Company’s website at
  www.reald.com, if the Company wishes to provide such information through its
  website. You acknowledge that copies of the Plan, Plan prospectus, Plan
  information and stockholder information are also available upon written or
  telephonic request to the Committee and/or the Board.

  

 

By signing the cover sheet
of this Agreement, you agree to all of the terms and conditions described above
and in the Plan and Plan prospectus.

 

11

 

GRANT
NO.                            

 

REALD INC.

NOTICE OF EXERCISE OF

NONSTATUTORY STOCK OPTION BY
OPTIONEE

 

RealD Inc.

100 N. Crescent Drive, Suite 120

Beverly Hills, California 90210

Attention:  Secretary

 

	
  Re:

  	
  Exercise of Nonstatutory Stock Option to
  Purchase Shares of Company Stock

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [PRINT NAME OF OPTIONEE]

  	
   

  

 

Pursuant to the Nonstatutory Stock Option
Agreement dated
                                      ,
           between RealD
Inc., a Delaware corporation, (the “Company”) and me, made pursuant to the 2010
Stock Incentive Plan  (the “Plan”), I
hereby request to purchase
              
Shares (whole number only and must be not less than 25 Shares or the remaining
number of vested Shares under this Option) of common stock of the Company (the “Shares”),
at the exercise price of $                    
per Share.  I am hereby making full
payment of the aggregate exercise price by one or more of the following forms
of payment in accordance with the whole number percentages that I have provided
below.  I further understand and agree
that I will timely satisfy any and all applicable tax withholding obligations
as a condition of this Option exercise.

 

	
  Percentage

  	
   

  	
  Form of Payment As Provided In the Nonstatutory Stock

  
	
  of Payment

  	
   

  	
  Option Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  %

  	
  Cash/My Personal Check/Cashier’s Check/Money
  Order (payable to “RealD Inc.”)

  
	
   

  	
   

  	
   

  
	
   

  	
  %

  	
  Cashless Exercise as provided in the
  Nonstatutory Stock Option Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  %

  	
  Surrender of vested Shares (Valued At Their
  Fair Market Value) Owned By Me For More Than Six (6) Months

  
	
   

  	
   

  	
   

  
	
  100

  	
  %

  	
   

  

 

	
  Check one:

  	
  o

  	
  The Shares certificate is to be issued and
  registered in my name only.

  
	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  The Shares certificate is to be issued and
  registered in my name and my spouse’s name.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [PRINT SPOUSE’S NAME, IF CHECKING SECOND
  BOX]

  

 

Check one (if checked second box above):

 

	
   

  	
   

  	
   ̈  Community Property or   ̈ Joint Tenants With Right of Survivorship

  

 

I acknowledge that I have received, understand
and continue to be bound by all of the terms and conditions set forth in the
Plan, Plan prospectus and in the Nonstatutory Stock Option Agreement.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Optionee’s Signature)

  	
   

  	
  (Spouse’s
  Signature)**

  
	
   

  	
   

  	
  **Spouse must sign this
  Notice of Exercise if listed above.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Full Address)

  	
   

  	
  (Full Address)

  

 

*THIS NOTICE
OF EXERCISE MAY BE REVISED BY THE COMPANY AT ANY TIME WITHOUT NOTICE

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