Document:

exv10w41

 

Exhibit 10.41

Photon Dynamics, Inc.

2005 Employee Incentive Plan

RESTRICTED STOCK UNIT AGREEMENT

1. TERMS OF RESTRICTED STOCK UNIT

Pursuant to your Restricted Stock Unit Grant Notice (“Grant Notice”) and this Restricted Stock Unit
Agreement (this “Agreement”), Photon Dynamics, Inc. (the “Company”) has granted you Restricted
Stock Units (“RSUs”) under its 2005 Employee Incentive Plan, as amended (the “Plan”) with respect
to the number of shares of the Company’s Common Stock indicated in your Grant Notice. Defined
terms not explicitly defined in this Restricted Stock Unit Agreement but defined in the Plan shall
have the same definitions as in the Plan. Your Grant Notice, this Agreement and the Plan
constitute the entire understanding between you and the Company regarding the RSUs.

2. VESTING OF RSUs

Subject to the terms of this Agreement and the Plan, your RSUs will vest as provided in your Grant
Notice, provided that except to the extent expressly provided herein, vesting will cease upon the
termination of your Continuous Service for any reason. If a vesting date falls on a weekend or any
other day which is not a Trading Day, affected RSUs shall vest on the next following Trading Day.
The number of shares of Common Stock into which RSUs convert as specified in the Grant Notice shall
be adjusted for stock splits and similar matters as specified in and pursuant to the Plan.

3. CONVERSION INTO COMMON STOCK

Shares of Common Stock will be issued or become free of restrictions as soon as practicable
following vesting of the RSUs (or such later date to the extent the Company has permitted you to
defer delivery of your shares and you have made a valid election), provided that you have satisfied
your tax withholding obligations as specified in this Agreement and you have completed, signed and
returned any documents and taken any additional action that the Company deems appropriate to enable
it to accomplish the delivery of the shares of Common Stock. The shares of Common Stock will be
issued in your name (or may be issued to your executor or personal representative, in the event of
your death or Disability), and may be effected by recording shares on the stock records of the
Company or by crediting shares in an account established on your behalf with a brokerage firm or
other custodian, in each case as determined by the Company. In no event will the Company be
obligated to issue a fractional share.

Notwithstanding the foregoing, (i) the Company shall not be obligated to deliver any shares of the
Common Stock during any period when the Company determines that the conversion of a RSU or the
delivery of shares hereunder would violate any federal, state or other applicable laws and/or may
issue shares subject to any restrictive legends that, as determined by the Company’s counsel, is
necessary to comply with securities or other regulatory requirements, and (ii) the date on which
shares are issued may include a delay

1 of 6

 

in order to provide the Company such time as it determines appropriate to address tax withholding
and other administrative matters.

4. TERMINATION OF SERVICE; DEATH, DISABILITY

(a) Except as expressly provided otherwise in this Agreement, if your Continuous Service with the
Company terminates for any reason, whether voluntarily or involuntarily, all RSUs not then vested
shall be cancelled on the date of such termination of Continuous Service.

(b) Notwithstanding the foregoing clause (a), if you die or become Disabled while in Continuous
Service with the Company, your RSUs will become immediately vested to the extent such RSUs would
have become vested within 12 months after the date of death or Disability, as applicable.

5. TAX WITHHOLDING

RSUs are taxable upon vesting based on the market value on the date of vesting. To the extent
required by applicable federal, state or other law, you shall make arrangements satisfactory to the
Company for the payment and satisfaction of any income tax, social security tax, payroll tax, or
payment on account of other tax related to withholding obligations that arise by reason of vesting
of a RSU and, if applicable, any sale of shares of the Common Stock (whichever is applicable). The
Company shall not be required to issue or lift any restrictions on shares of the Common Stock
pursuant to your RSUs or to recognize any purported transfer of shares of the Common Stock until
such obligations are satisfied.

Unless provided otherwise by the Committee, these obligations will be satisfied by the Company
withholding a number of shares of Common Stock that would otherwise be issued under the RSUs that
the Company determines has a Market Value sufficient to meet the tax withholding obligations. In
the event that the Committee provides that these obligations will not be satisfied under the method
described in the previous sentence, you authorize any successor plan administrator, to sell a
number of shares of Common Stock that are issued under the RSUs, which the Company determines is
sufficient to generate an amount that meets the tax withholding obligations plus additional shares
to account for rounding and market fluctuations, and to pay such tax withholding to the Company.
The shares may be sold as part of a block trade with other participants of the Plan in which all
participants receive an average price. For this purpose, “Market Value” will be calculated as the
average of the highest and lowest sales prices of the Common Stock as reported by NASDAQ on the day
your RSUs vest. The future value of the underlying shares of Common Stock is unknown and cannot be
predicted with certainty.

You are ultimately liable and responsible for all taxes owed by you in connection with your RSUs,
regardless of any action the Company takes or any transaction pursuant to this Section with respect
to any tax withholding obligations that arise in connection with the RSUs. The Company makes no
representation or undertaking regarding the treatment

2 of 6

 

of any tax withholding in connection with the grant, issuance, vesting or settlement of the RSUs or
the subsequent sale of any of the shares of Common Stock underlying the RSUs that vest. The Company
does not commit and is under no obligation to structure the RSU program to reduce or eliminate your
tax liability.

6. RIGHTS AS A STOCKHOLDER

Your RSUs may not be otherwise transferred or assigned, pledged, hypothecated or otherwise disposed
of in any way, whether by operation of law or otherwise, and may not be subject to execution,
attachment or similar process. Any attempt to transfer, assign, hypothecate or otherwise dispose
of your RSUs other than as permitted above, shall be void and unenforceable against the Company.

You will have the rights of a stockholder only after shares of the Common Stock have been issued to
you following vesting of your RSUs and satisfaction of all other conditions to the issuance of
those shares as set forth in this Agreement. RSUs shall not entitle you to any rights of a
stockholder of Common Stock, except as otherwise determined by the Board. RSUs shall remain
terminable pursuant to this Agreement at all times until they vest. As a condition to having the
right to receive shares of Common Stock pursuant to your RSUs, you acknowledge that unvested RSUs
shall have no value for purposes of any aspect of your relationship with the Company.

7. RSU NOT A SERVICE CONTRACT

Neither this Agreement nor any RSU is an employment or service contract, and nothing in this
Agreement or your RSU shall be deemed to create in any way whatsoever any obligation on your part
to continue in the employ or service of the Company or an Affiliate, or of the Company or an
Affiliate to continue your employment or service. In addition, nothing in this Agreement or your
RSU shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors,
Officers or Employees to continue any relationship that you might have as a Director or Consultant
for the Company or an Affiliate. RSUs are not part of your contract (if any) with the Company,
your normal or expected compensation, or other remuneration for any purposes, including for
purposes of computing severance pay or other termination compensation or indemnity.

8. DISPUTES

Any question concerning the interpretation of this Agreement, your Grant Notice, the RSUs or the
Plan, any adjustments required to be made thereunder, and any controversy that may arise under this
Agreement, your Grant Notice, the RSUs or the Plan shall be determined by the Committee (including
any person(s) to whom the Committee has delegated its authority) in its sole and absolute
discretion. Such decision by the Committee shall be final and binding.

3 of 6

 

9. AMENDMENTS

The Plan and RSUs may be amended or altered by the Board to the extent provided in the Plan.

10. DATA PRIVACY

You 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 hereby understand that the Company holds certain personal information about you, including, but
not limited to, your name, home address and telephone number, date of birth, social insurance
number or other identification number, salary, nationality, job title, any shares of stock or
directorships held in the Company, details of all RSUs or any other entitlement to shares of stock
awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of
implementing, administering and managing the Plan (“Data”). You hereby understand that 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’s country may have different data privacy laws and protections than your country. You
hereby understand that you may request a list with the names and addresses of any potential
recipients of the Data by contacting your local human resources representative. 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 of Common Stock acquired under your RSUs. You hereby
understand that Data will be held only as long as is necessary to implement, administer and manage
your participation in the Plan. You hereby understand that you may, at any time, view Data,
request additional information about the storage and processing of Data, require any necessary
amendments to Data or refuse or withdraw the consents herein, in any case without cost, by
contacting in writing your local human resources representative. You hereby understand, however,
that refusing or withdrawing your consent may affect your ability to participate in the Plan. For
more information on the consequences of your refusal to consent or withdrawal of consent, you
hereby understand that you may contact the human resources representative responsible for your
country at the local or regional level.

11. THE PLAN AND OTHER TERMS; OTHER MATTERS

(a) Certain capitalized terms used in this Agreement are defined in the Plan. Any prior
agreements, commitments or negotiations concerning the RSUs are superseded by this Agreement and
your Grant Notice. You hereby acknowledge that a copy of the Plan has been made available to you.

4 of 6

 

Your RSUs are subject to all the provisions of the Plan, the provisions of which are hereby made a
part of your RSUs, and are further subject to all interpretations, amendments, rules and
regulations, which may from time to time be promulgated and adopted pursuant to the Plan. In the
event of any conflict between the provisions of your option and those of the Plan, the provisions
of the Plan shall control.

The grant of RSUs to an individual in any one year, or at any time, does not obligate the Company
or any Subsidiary to make a grant in any future year or in any given amount and should not create
an expectation that the Company or any Subsidiary might make a grant in any future year or in any
given amount.

(b) To the extent that the grant of RSUs refers to the Common Stock of the Company, and as required
by the laws of your country of residence or service, only authorized but unissued shares thereof
shall be utilized for delivery upon vesting in accord with the terms hereof.

(c) Notwithstanding any other provision of this Agreement, if any changes in the financial or tax
accounting rules applicable to the RSUs covered by this Agreement shall occur which, in the sole
judgment of the Committee, may have an adverse effect on the reported earnings, assets or
liabilities of the Company, the Committee may, in its sole discretion, modify this Agreement or
cancel and cause a forfeiture with respect to any unvested RSUs at the time of such determination.

(d) Notwithstanding any other provision of this Agreement, the Grant Notice or the Plan to the
contrary, if, at the time of your termination of service with the Company, you are a “specified
employee” (as defined in Section 409A of the Code), and one or more of the payments or benefits
received or to be received by you pursuant to the RSUs would constitute deferred compensation
subject to Section 409A, no such payment or benefit will be provided under the RSUs until the
earliest of (A) the date which is six months after your “separation from service” for any reason,
other than death or “disability” (as such terms are used in Section 409A (a)(2) of the Code), (B)
the date of your death or “disability” (as such term is used in Section 409A (a)(2)(C) of the Code)
or (C) the effective date of a “change in the ownership or effective control” of the Company (as
such term is used in Section 409A (a)(2)(A)(v) of the Code). The provisions of this Section shall
only apply to the extent required to avoid your incurrence of any penalty tax or interest under
Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder. In
addition, if any provision of the RSUs would cause you to incur any penalty tax or interest under
Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the
Company may reform such provision to maintain the maximum extent practicable the original intent of
the applicable provision without violating the provisions of Section 409A of the Code.

(e) The law of the state of California shall govern all questions concerning the construction,
validity and interpretation of this Plan, without regard to such state’s conflict of laws rules.

5 of 6

 

(g) Copies of Photon Dynamics, Inc. Annual Report to Stockholders for its latest fiscal year and
Photon Dynamics, Inc. latest quarterly report are available, without charge, at the Company’s
business office.

6 of 6exv10w43

 

Exhibit 10.43

Photon Dynamics, Inc.

2005 Equity Incentive Plan

Stock Option Agreement

 (Incentive Stock Option or Nonstatutory Stock Option)

     Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement,
Photon Dynamics, Inc. (the “Company”) has granted you an option under its 2005 Equity Incentive
Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your
Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly
defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as
in the Plan.

     The details of your option are as follows:

     1. Vesting. Subject to the limitations contained herein, your option will vest as
provided in your Grant Notice, provided that vesting will cease upon the termination of your
Continuous Service.

     2. Number of Shares and Exercise Price. The number of shares of Common Stock subject
to your option and your exercise price per share referenced in your Grant Notice may be adjusted
from time to time for Capitalization Adjustments.

     3. Exercise prior to Vesting (“Early Exercise”). If permitted in your Grant Notice
(i.e., the “Exercise Schedule” indicates that “Early Exercise” of your option is permitted) and
subject to the provisions of your option, you may elect at any time that is both (i) during the
period of your Continuous Service and (ii) during the term of your option, to exercise all or part
of your option, including the nonvested portion of your option; provided, however, that:

          (a) a partial exercise of your option shall be deemed to cover first vested shares of Common
Stock and then the earliest vesting installment of unvested shares of Common Stock;

          (b) any shares of Common Stock so purchased from installments that have not vested as of the
date of exercise shall be subject to the purchase option in favor of the Company as described in
the Company’s form of Early Exercise Stock Purchase Agreement;

          (c) you shall enter into the Company’s form of Early Exercise Stock Purchase Agreement with a
vesting schedule that will result in the same vesting as if no early exercise had occurred; and

          (d) if your option is an Incentive Stock Option, then, to the extent that the aggregate Fair
Market Value (determined at the time of grant) of the shares of Common Stock with respect to which
your option plus all other Incentive Stock Options you hold are exercisable for the first time by
you during any calendar year (under all plans of the Company and its Affiliates) exceeds one
hundred thousand dollars ($100,000), your option(s) or portions thereof

1

 

that exceed such limit (according to the order in which they were granted) shall be treated as
Nonstatutory Stock Options.

     4. Method of Payment. Payment of the exercise price is due in full upon exercise of
all or any part of your option. You may elect to make payment of the exercise price in cash or by
check or in any other manner permitted by your Grant Notice, which may include one or more of the
following:

          (a) In the Company’s sole discretion at the time your option is exercised and provided that at
the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street
Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check)
by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to
the Company from the sales proceeds.

          (b) Provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either
that you have held for the period required to avoid a charge to the Company’s reported earnings
(generally six (6) months) or that you did not acquire, directly or indirectly from the Company,
that are owned free and clear of any liens, claims, encumbrances or security interests, and that
are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the
sole discretion of the Company at the time you exercise your option, shall include delivery to the
Company of your attestation of ownership of such shares of Common Stock in a form approved by the
Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company
of Common Stock to the extent such tender would violate the provisions of any law, regulation or
agreement restricting the redemption of the Company’s stock.

     5. Whole Shares. You may exercise your option only for whole shares of Common Stock.

     6. Securities Law Compliance. Notwithstanding anything to the contrary contained
herein, you may not exercise your option unless the shares of Common Stock issuable upon such
exercise are then registered under the Securities Act or, if such shares of Common Stock are not
then so registered, the Company has determined that such exercise and issuance would be exempt from
the registration requirements of the Securities Act. The exercise of your option also must comply
with other applicable laws and regulations governing your option, and you may not exercise your
option if the Company determines that such exercise would not be in material compliance with such
laws and regulations.

     7. Term. You may not exercise your option before the commencement or after the
expiration of its term. The term of your option commences on the Date of Grant and expires upon
the earliest of the following:

          (a) immediately upon the termination of your Continuous Service for Cause;

          (b) three (3) months after the termination of your Continuous Service for any reason other
than Cause, Disability or death, provided that if during any part of such three (3)

2

 

month period you may not exercise your option solely because of the condition set forth in the
preceding paragraph relating to “Securities Law Compliance,” your option shall not expire until the
earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of
three (3) months after the termination of your Continuous Service;

          (c) twelve (12) months after the termination of your Continuous Service due to your
Disability;

          (d) eighteen (18) months after your death if you die either during your Continuous Service or
within three (3) months after your Continuous Service terminates for any reason other than Cause;

          (e) the Expiration Date indicated in your Grant Notice; or

          (f) the day before the seventh (7th) anniversary of the Date of Grant.

     If your option is an Incentive Stock Option, note that to obtain the federal income tax
advantages associated with an Incentive Stock Option, the Code requires that at all times beginning
on the date of grant of your option and ending on the day three (3) months before the date of your
option’s exercise, you must be an employee of the Company or an Affiliate, except in the event of
your death or your permanent and total disability, as defined in Section 22(e) of the Code. (The
definition of disability in Section 22(e) of the Code is different from the definition of the
Disability under the Plan). The Company has provided for extended exercisability of your option
under certain circumstances for your benefit but cannot guarantee that your option will necessarily
be treated as an Incentive Stock Option if you continue to provide services to the Company or an
Affiliate as a Consultant or Director after your employment terminates or if you otherwise exercise
your option more than three (3) months after the date your employment with the Company or an
Affiliate terminates.

     8. Exercise.

          (a) You may exercise the vested portion of your option (and the unvested portion of your
option if your Grant Notice so permits) during its term by delivering a Notice of Exercise (in a
form designated by the Company) together with the exercise price to the Secretary of the Company,
or to such other person as the Company may designate, during regular business hours, together with
such additional documents as the Company may then require.

          (b) By exercising your option you agree that, as a condition to any exercise of your option,
the Company may require you to enter into an arrangement providing for the payment by you to the
Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of
your option, (2) the lapse of any substantial risk of forfeiture to which the shares of Common
Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock
acquired upon such exercise.

          (c) If your option is an Incentive Stock Option, by exercising your option you agree that you
will notify the Company in writing within fifteen (15) days after the date of any disposition of
any of the shares of the Common Stock issued upon exercise of your option that

3

 

occurs within two (2) years after the date of your option grant or within one (1) year after
such shares of Common Stock are transferred upon exercise of your option.

     9. Transferability. Your option is not transferable, except by will or by the laws
of descent and distribution, and is exercisable during your life only by you. Notwithstanding the
foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you
may designate a third party who, in the event of your death, shall thereafter be entitled to
exercise your option.

     10. Option not a Service Contract. Your option is not an employment or service
contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation
on your part to continue in the employ of the Company or an Affiliate, or of the Company or an
Affiliate to continue your employment. In addition, nothing in your option shall obligate the
Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees
to continue any relationship that you might have as a Director or Consultant for the Company or an
Affiliate.

     11. Withholding Obligations.

          (a) At the time you exercise your option, in whole or in part, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll and any other amounts
payable to you, and otherwise agree to make adequate provision for (including by means of a
“cashless exercise” pursuant to a program developed under Regulation T as promulgated by the
Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if
any, which arise in connection with the exercise of your option.

          (b) Upon your request and subject to approval by the Company, in its sole discretion, and
compliance with any applicable legal conditions or restrictions, the Company may withhold from
fully vested shares of Common Stock otherwise issuable to you upon the exercise of your option a
number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of
the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or
such lower amount as may be necessary to avoid variable award accounting). If the date of
determination of any tax withholding obligation is deferred to a date later than the date of
exercise of your option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b) of the Code, covering
the aggregate number of shares of Common Stock acquired upon such exercise with respect to which
such determination is otherwise deferred, to accelerate the determination of such tax withholding
obligation to the date of exercise of your option. Notwithstanding the filing of such election,
shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined
as of the date of exercise of your option that are otherwise issuable to you upon such exercise.
Any adverse consequences to you arising in connection with such share withholding procedure shall
be your sole responsibility.

          (c) You may not exercise your option unless the tax withholding obligations of the Company
and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your option when
desired even though your option is vested, and the Company shall have no

4

 

obligation to issue a certificate for such shares of Common Stock or release such shares of
Common Stock from any escrow provided for herein unless such obligations are satisfied.

     12. Notices. Any notices provided for in your option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by
mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

     13. Governing Plan Document. Your option is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your option, and is further subject to all
interpretations, amendments, rules and regulations, which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your option
and those of the Plan, the provisions of the Plan shall control.

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]