Document:

exv10w02

 

Exhibit 10.02

NETWORK SPECIALISTS, INCORPORATED

Stock Option Certificate

And Agreement

	 	 	 
	Date of Grant:

	 	Option No.
	Name of Optionee:
	 	 
	Number of Shares:
	 	 
	Price Per Share:
	 	 
	Expiration Date:
	 	 

     Effective on the date of grant specified above (the “Date of Grant”), the Board of Directors
(“Board”), or the Stock Option Committee (“Committee”) designated by the Board, of Network
Specialists Incorporated (the “Company”) has granted to the above-named optionee (the “Optionee”)
an option (the “Option”) to purchase from the Company, for the price per share set forth above, the
number of shares (the “Shares”) of Common Stock, $.001 par value per share (the “Stock”) of the
Company set forth above pursuant to the terms and conditions of the 1996 Employee Stock Option Plan
(“Plan”) which is incorporated in this Option as though set forth in full. This Option is intended
to be treated as an “incentive stock option” within the meaning of Section 422A of the Internal
Revenue Code of 1954, as amended (the “Code”).

     The terms and conditions of the Option granted hereby, are as follows:

     1. The number and price of the Shares subject to this Option shall be the number and price set
forth above, subject to any adjustments which may be made pursuant to Section 9 below.

     2. Subject to the terms and conditions set forth in this Option, this Option may be exercised
to purchase the Shares covered by this Option as follows: commencing on the first anniversary of
the Date of Grant (the “Anniversary”), but prior to the second Anniversary, up to an aggregate of
one-third of the aggregate number of Shares covered by this Option; after the second Anniversary
but prior to the third Anniversary, up to an aggregate of two-thirds of the aggregate number of
Shares covered by this Option; after the third Anniversary but prior to the Expiration Date, all of
the Shares covered by this Option. This Option shall terminate and no Shares may be purchased
after the Expiration Date.

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     3. Except as provided in Section 7 of this Option, this Option may not be exercised unless the
Optionee is in the employ of the Company or one of its parent or subsidiary corporations (as within
the meaning of Section 425(e) and (f) of the Code respectively) on the date of such exercise and
shall have been such employee continuously since the Date of Grant of this Option.

     4. Subject to the terms and conditions set forth in this Option, this Option is exercisable by
a written notice signed by you and delivered to the Company at its executive offices, signifying
your election to exercise this Option. The notice must state the number of Shares as to which your
Option is being exercised, must contain a statement by you (in a form acceptable to the Company)
that such Shares are being acquired by you for investment and not with a view to their distribution
or resale (unless a Registration Statement covering the Shares has been declared effective by the
Securities and Exchange Commission) and must be accompanied by the full purchase price of the
Shares being purchased. Payment shall be in cash, or by certified or bank cashier’s check payable
to the order of the Company, free from all collection charges; provided, however, that payment may
be made in Shares owned by the Optionee having a market value on the date of exercise equal to the
aggregate purchase price, or in a combination of cash and Stock. For these purposes, the market
value per share of Stock shall be: (i) if the Stock is traded on a national securities exchange or
on the Nasdaq National Market System (“NMS”), the per share closing price of the Stock on the
principal securities exchange on which they are listed or on NMS, as the case may be, on the date
of exercise (or if there is no closing price for such date of exercise, then the last preceding
business day on which there was a closing price); or (ii) if the Stock is traded in the
over-the-counter market and quotations are published on the Nasdaq quotation system (but not on
NMS), the closing bid price of the Stock on the date of exercise as reported by Nasdaq (or if there
are no closing bid prices for such date of exercise, then the last preceding business day on which
there was a closing bid price); or (iii) if the Stock is traded in the over-the-counter market but
bid quotations are not published on Nasdaq, the closing bid price per share for the Stock as
furnished by a broker-dealer which regularly furnishes price quotations for the Stock.

          If notice of the exercise of this Option is given by the person or persons other than you,

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the Company may require, as a condition to the exercise of this Option, the submission to the
Company of appropriate proof of the right of such person or person to exercise this Option.

          Certificate for Shares so purchased will be issued as soon as practicable. The Company,
however, shall not be required to issue or deliver a certificate for any Shares until it has
complied with all requirements of the Securities Act of 1933, as amended, the Securities Exchange
Act of 1934, as amended, any stock exchange on which the Company’s Stock may then be listed and all
applicable state laws in connection with the issuance or sale of such Shares or the listing of such
Shares on such exchange. Until the issuance of the certificate for such Shares, you or such other
person as may be entitled to exercise this Option, shall have none of the rights of a stockholder
with respect to Shares subject to this Option.

     5. As soon as practicable after the Company receives payment for the Shares, it shall deliver
a certificate or certificates representing the Shares so purchased to the Optionee.

     6. This Option is personal to the Optionee and during the Optionee’s lifetime may be exercised
only by the Optionee. This Option shall not be transferable other than by will or the laws of
descent and distribution.

     7. In the event that an option holder ceases to be an employee of the Company or of any
subsidiary for any reason other than permanent disability (as determined by the Board of Directors)
or death, this Option, including any unexercised portion thereof, which was otherwise exercisable
on the date of termination, shall expire unless exercised within a period of three months from the
date on which the Optionee ceased to be so employed, but in no event after the Expiration Date. In
the event of the death of Optionee during this three month period, this Option shall be exercisable
by his or her personal representatives, heirs or legatees to the same extent that the Optionee
could have exercised this Option if he or she had not died, for the three months from the date of
death, but in no event after the Expiration Date. In the event of the permanent disability of
Optionee while an employee of the Company or of any subsidiary, this Option shall be exercisable
for twelve (12) months after the date of permanent disability, but in no event after the Expiration
Date. In the event of the death of the Optionee while an employee of

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the Company or any Subsidiary, or during the twelve (12) month period after the date of permanent
disability of the Optionee, that portion of the Option which had become exercisable on the date of
death shall be exercisable by his or her personal representatives, heir or legatees at any time
prior to the expiration of twelve (12) months from the date of the death of Optionee, but in no
event after the Expiration Date.

     8. This Option does not confer on the Optionee any right to continue in the employ of the
Company or interfere in any way with the right of the Company to determine the terms of the
Optionee’s employment.

     9. In the event of a reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, rights offering, or any other change in the
corporate structure or Stock of the Company after January 18, 1996, the Board shall make such
adjustments, if any, as it deems appropriate in the number and kind of shares covered by this
Option, or in the Option price, or both. Notwithstanding any provision to the contrary, the
Committee or the Board may cancel, amend, alter or supplement any term or provision of this Option
to avoid the penalty provisions of Section 4999 of the Code.

     10. This Option shall be subject to the requirement that if at any time the Board shall
determine that the registration, listing or qualification of the Shares covered hereby upon any
securities exchange or under any federal or state law, or the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of, or in connection with,
the granting of this Option or the purchase of the Shares, this Option may not be exercised unless
and until such registration, listing, qualification, consent or approval shall have been effected
or obtained free of any conditions not acceptable to the Board. The Board may require that the
person exercising this Option shall make such representations and agreements and furnish such
information as it deems appropriate to assure compliance with the foregoing or any other applicable
legal requirements.

     11. This Option is intended to qualify for “incentive stock option” treatment under the

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provisions of Section 422A of the Internal Revenue Code of 1954, as amended. However, you are
urged to consult with your individual tax advisor prior to exercising this Option since the
exercise of this Option may result in adverse tax consequences including the payment of additional
federal and/or state income taxes.

     12. All notices hereunder to the Company shall be delivered or mailed to the following
address:

Network Specialists, Incorporated

Baker Waterfront Plaza

2 Hudson Place, Suite 700

Hoboken, NJ 07030

Attention: President

     Such address for the service of notices may be changed at any time provided notice of such
change is furnished in advance to the Optionee.

	 	 	 	 	 
	 	NETWORK SPECIALISTS, INCORPORATED

 	 
	 	By:  	 	 
	 

Secretary:

                                        

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OPTION EXERCISE FORM

	 	 	 
	TO:

	 	Network Specialists, Incorporated
	 

	 	Baker Waterfront Plaza
	 

	 	2 Hudson Place, Suite 700
	 

	 	Hoboken, NJ 07030

     The undersigned holder hereby irrevocably elects to exercise the right to purchase ___
shares of Common Stock covered by this Option Agreement according to the conditions hereof and
herewith makes full payment of the Exercise Price of such shares.

     Kindly deliver to the undersigned a certificate representing the Shares.

INSTRUCTIONS FOR DELIVERY

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(please typewrite or print in block letters)
	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 	 	 

Signature
 

6exv10w03

 

Exhibit 10.03

NON-EXECUTIVE DIRECTOR

STOCK OPTION PLAN OF

NETWORK SPECIALISTS, INC.

As amended January 31, 2000

	1.	 	PURPOSE

     The purpose of the Non-Executive Director Stock Option Plan (the “Director Plan”) is to
provide a means by which each director of Network Specialists, Inc., a New Jersey corporation (the
“Company”) who is not otherwise a full time employee of the Company or any subsidiary of the
Company (each such person being hereafter referred to as a “Non-Executive Director”) will be given
an opportunity to purchase Common Stock, $.001 par value per share, of the Company (“Common
Stock”). The Company, by means of the Director Plan, seeks to attract and retain the services of
qualified independent persons to serve as Non-Executive Directors of the Company, and to provide
incentives for such persons to exert maximum efforts for the success of the Company.

	2.	 	ADMINISTRATION

     (a) The Director Plan shall be administered by a committee of the Board of Directors of the
Company (the “Committee”) which shall at all times consist of not less than two (2) officers or
directors of the Company or other individuals who are not entitled to participate in the Director
Plan, to be appointed by the Board of Directors and to serve at the pleasure of the Board of
Directors.

     (b) Grant of options under the Director Plan and the amount and nature of the awards to be
granted shall be automatic as described in Section 5 hereof. However, all questions of
interpretation of the Director Plan or of any options issued under it shall be determined by the
Committee and such determination shall be final and binding upon all persons having an interest in
the Director Plan. A majority of the Committee’s members shall constitute a quorum, and all
determinations shall be made by a majority of such quorum. Any determination reduced to writing
and signed by all of the members of the Committee shall be fully effective as if it had been made
by a majority vote at a meeting duly called and held.

	3.	 	SHARES SUBJECT TO THE PLAN

     Subject to the provisions of Section 10 hereof, the shares that may be acquired pursuant to
options granted under the Director Plan (“Options”) shall not exceed in the aggregate 300,000
shares of the Company’s Common Stock.

     The Common Stock subject to the Director Plan may be in whole or in part authorized and
unissued shares of Common Stock or issued shares of Common Stock which shall have been reacquired
by the Company. If any Option shall expire or terminate for any reason without

 

 

having been exercised in full, the unissued shares subject thereto shall again be available
for purposes of the Director Plan.

	4.	 	ELIGIBILITY

     Options shall be granted only to Non-Executive Directors serving on the Board of Directors of
the Company.

	5.	 	NON-DISCRETIONARY GRANTS

     Commencing on June 30, 1996, an Option to purchase 20,000 shares of Common Stock on the terms
and conditions set forth herein shall be granted to each Non-Executive Director on the Board of
Directors on such date, and to each Non-Executive Director upon joining the Board of Directors
after such date; and on each June 1 of each year, an Option to purchase 20,000 shares of Common
Stock, on the terms and conditions set forth herein, shall be granted to each Non-Executive
Director on the Board of Directors on such date provided such individual has continually served as
a Non-Executive Director for the twelve month period immediately preceeding the date of grant;
provided that any Non-Executive Director, who has not served as a director for an entire year prior
to June 1st of the determination year, shall receive a pro rata number of options based on the
length of service in such year.

	5.	 	OPTION PROVISIONS

     Each Option shall be evidenced by a written agreement (“Stock Option Agreement”) and shall
contain the following terms and conditions:

     (a) The term of each Option commences on the date it is granted and, unless sooner terminated
as set forth herein, expires on the date (“Expiration Date”) five years from the date of grant.
The term of each Option may terminate sooner than such Expiration Date if the optionee’s service as
a Non-Executive Director of the Company terminates for any reason or for no reason. In the event
of such termination of service, the Option shall terminate on the earlier of (i) the Expiration
Date or the date seven (7) months following the date of termination of service as a director or
(ii) if termination of service is due to the optionee’s death, the Expiration Date or twelve (12)
months following the date of the optionee’s death. In any and all circumstances, an option may be
exercised following termination of the optionee’s service as a Non-Executive Director only as to
that number of shares as to which it was exercisable on the date of termination of such service, in
accordance with the provisions of Subsection 5(e) of the Director Plan.

     (b) The exercise price of each option shall be one hundred percent (100%) of the Fair Market
Value of the shares subject to such option on the date such option is granted. “Fair Market Value”
of a share of Common Stock shall mean (i) if the Common Stock is traded on a national securities
exchange or on the Nasdaq National Market System (“NMS”), the per share closing price of the Common
Stock on the principal securities exchange on which they are listed or on NMS, as the case may be,
on the date of grant (or if there is no closing price for such date of grant, then the last
preceding business day on which there was a closing price); or (ii) if the Common Stock is traded
in the over-the-counter market and quotations are published on the Nasdaq quotation system
(including Nasdaq SmallCap Market but not on NMS), the per share

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closing bid price of the Common Stock on the date of grant as reported by Nasdaq (or if there
is no closing bid price for such date of grant, then the last preceding business day on which there
was a closing bid price); or (iii) if the Common Stock is traded in the over-the-counter market but
bid quotations are not published on Nasdaq, the closing bid price per share for the Common Stock as
furnished by a broker-dealer which regularly furnishes price quotations for the Common Stock or
(iv) if the Common Stock is not traded on any national securities exchange, NMS or Nasdaq SmallCap
Market and quotations for the Common Stock are not available, the fair market value of the Common
Stock as determined by the Board of Directors, determined in good faith.

     (c) The optionee may elect to make payment of the exercise price under one of the following
alternatives:

          (i) Payment of the exercise price per share in cash at the time of exercise; or

          (ii) Payment by delivery of shares of Common Stock of the Company already owned by the
optionee for at least six months from the date of exercise, which Common Stock shall be valued at
Fair Market Value on the date of exercise; or

          (iii) Payment by a combination of the methods of payment specified in Subsections 5(c)(i) and
5(c)(ii) above.

     (d) An option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the person to whom the option is
granted only by such person or by his guardian or legal representative.

     (e) All options granted under the Director Plan shall be non-qualified stock options, which do
not qualify as incentive stock options within the meaning of Section 422A(b), or any successor
section, of the Internal Revenue Code of 1986, as amended.

	6.	 	RIGHT OF COMPANY TO TERMINATE SERVICES AS A NON-EXECUTIVE DIRECTOR OR ADVISOR

     Nothing contained in the Director Plan or in any instrument executed pursuant hereto shall
confer upon any Non-Executive Director or any right to continue in the service of the Company or
any of its subsidiaries or interfere in any way with the right of the Company or a subsidiary to
terminate the service of any Non-Executive Director at any time, with or without cause.

	7.	 	NONALIENATION OF BENEFITS

     No right or benefit under the Director Plan shall be subject to alienation, sale, assignment,
hypothecation, pledge, exchange, transfer, encumbrance or charge, and any attempt to alienate,
sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge the same shall be void.
No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts,
liabilities or torts of the person entitled to such benefit.

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	8.	 	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     The Stock Option Agreements evidencing options may contain such provisions as the Committee
shall determine to be appropriate for the adjustment of the number and class of shares subject to
all outstanding options and the option prices thereof in the event of changes in the outstanding
Common Stock of the Company by reason of any stock dividend, distribution, split-up,
recapitalization, combination or exchange of shares, merger, consolidation or liquidation and the
like, and, in the event of any such change in the outstanding Common Stock, the aggregate number
and class of shares available under the Director Plan and the number of shares subject to
non-discretionary grants pursuant to Section 5 hereof shall be appropriately adjusted by the
Committee, whose determination shall be conclusive.

	9.	 	TERMINATION AND AMENDMENT

     Unless the Director Plan shall theretofore have been terminated as hereinafter provided, no
grant of Options may be made under the Director Plan after June 1, 2006. The Board may at any
time, but not more than once every six months except to comply with changes in the Internal Revenue
Code, amend, alter, suspend or terminate the Director Plan; provided, however, that the Board may
not, without the requisite vote of the stockholders of the Company approving such action (i)
materially increase (except as provided in Section 8 hereof) the maximum number of shares which may
be issued under the Director Plan; (ii) extend the term of the Director Plan; (iii) materially
increase the requirements as to eligibility for participation in the Director Plan; or (iv)
materially increase the benefits accruing to participants under the Director Plan. No termination,
modification or amendment of the Director Plan or any outstanding Stock Option Agreement may,
without the consent of the Non-Executive Director to whom any option shall theretofore have been
granted, adversely affect the rights of such Director with respect to such option.

	10.	 	EFFECTIVENESS OF THE PLAN

     The Director Plan shall become effective upon the requisite vote of the stockholders of the
Company approving such action, and upon the approvals, if required, of any other public
authorities. Any grant of options under the Director Plan prior to such approval shall be
expressly subject to the condition that the Director Plan shall have been so approved. Unless the
Director Plan shall be so approved, the Director Plan and all options theretofore made thereunder
shall be and become null and void.

	11.	 	GOVERNMENT AND OTHER REGULATIONS

     The obligation of the Company with respect to options shall be subject to (i) all applicable
laws, rules and regulations and such approvals by any governmental agencies as may be required,
including, without limitation, the effectiveness of a registration statement under the Securities
Act of 1933, and (ii) the rules and regulations of any securities exchange on which the Common
Stock may be listed.

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	12.	 	GOVERNING LAW

     The Director Plan shall be governed by, and construed in accordance with, the laws of the
State of New Jersey.

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