Document:

exv10w1

 

Exhibit 10.1

	 	 	 
	LETTER OF INCENTIVE OPTION GRANT
	ORTHOLOGIC CORP. STOCK OPTION PLAN

Date

Name/address

RE: OrthoLogic Corp. 1997 Stock Option Plan

Dear                    ,

In order to provide additional incentive to certain selected employees,
OrthoLogic Corp. (the “Company”) adopted the OrthoLogic 1997 Stock Option Plan
(the “Stock Option Plan”). By means of this letter, the Company is offering
you an incentive stock option pursuant to the Stock Option Plan. The Company’s
sale of its common shares underlying the option granted to you hereby has been
registered with the U.S. Securities and Exchange Commission. A copy of the
prospectus including a copy of the Stock Option Plan (the “Prospectus”)
relating to that registration is enclosed or can be obtained from the
Company.

The option granted to you hereunder shall be subject to all of the terms and
conditions of the Stock Option Plan, which you should carefully review. In
addition, such option is subject to the following terms and conditions:

     1. Grant of Option. The Company hereby grants to you, pursuant to the
Stock Option Plan, the option to purchase from the Company upon the terms and
conditions and at the times hereinafter set forth, an aggregate of 
                 
 
 shares of the common stock, $.0005 par value, of the Company (the “Shares”)
at
a purchase price of $

                 
 
 per Share. The date of grant of this option is
                 
                     (hereinafter referred to as the “Option Date”).

This option is an incentive stock option within the meaning of the Internal
Revenue Code of 1986, as amended (the code), except if required by applicable
tax rules, to the extent that the aggregate fair market value (determined as of
the date these options are granted) of Shares exercisable for the first time by
you during any calendar year (when aggregated, if appropriate, with shares
subject to other incentive stock option grants made under the Stock Option Plan
and any other plan maintained by the Company or any ISO Group member as defined
in the Stock Option Plan) exceeds $100,000 (or such other limit as is
prescribed by the Internal Revenue Code, as amended), the option granted hereby
as to such excess Shares shall be treated as a nonqualified stock option
pursuant to Code Section 422(d).

 

 

Name

12/29/2004

Page 2

     2. Exercise Term of Option. Unless earlier terminated, the Shares may be
purchased between the vesting, described in the following schedule, and up to
ten years from the Option Date:

	 	 	 
	Total	 	 
	Number of Shares
	 	Vesting Schedule

	

	 	

     3. Nontransferability. This option shall not be transferable otherwise
than by will or by the laws of descent and distribution, and the options shall
be exercisable only by (a) you, during your lifetime (except as contemplated by
the next clause); or (b) your legal representative or a person who acquired the
right to exercise these options by bequest or inheritance, during the one-year
period referred to in Section 7(iv) hereof. Any attempted transfer in
violation of this restriction shall be void.

     4. Other Conditions and Limitations.

a) Any Shares issued upon exercise of this option shall not be
issued unless the issuance and delivery of Shares pursuant thereto
shall comply with all relevant provisions of law including, without
limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the rules and regulations
promulgated thereunder, any applicable state securities or “Blue
Sky” law or laws (or an exemption from such provision is available),
and the requirements of any stock exchange or national market system
of a national securities association upon which the Shares may then
be listed and shall be further subject to the approval of counsel
for the Company with respect to such compliance.

b) No transfer of any Shares issued upon the exercise of the option
will be permitted by the Company, unless any request for transfer is
accompanied by evidence satisfactory to the Company that the
proposed transfer will not result in a violation of any applicable
law, rule or regulation, whether federal or state, including in the
discretion of the Company an opinion of counsel reasonably
acceptable to the Company.

c) Inability of the Company to obtain approval from any regulatory
body having jurisdictional authority deemed by the Company’s counsel
to be necessary to the lawful issuance and sale of any Shares
hereunder shall relieve the Company of any liability in respect to
the nonissuance or sale of such Shares as to which such requisite
authority shall not have been obtained.

 

 

Name

12/29/2004

Page 3

d) Unless the Shares are subject to a then effective registration
statement under the Securities Act of 1933, upon exercise of this
option (in whole or in part) and the issuance of the Shares, the
Company shall instruct its transfer agent to enter stop transfer
orders with respect to Shares, and all certificates representing the
Shares shall bear on the face thereof substantially the following
legend:

“The shares of common stock represented by this certificate have
not been registered under the Securities Act of 1933, as amended,
and may not be sold, offered for sale, assigned, transferred or
otherwise disposed of unless registered pursuant to the provisions
of that Act or an opinion of counsel to the Company is obtained
stating that such disposition is in compliance with an available
exemption from such registration.”

     5. Exercise of Option. You may exercise the option including the number
of Shares that you are intending to acquire, accompanied by the full exercise
price, only by giving the President of the Company written notice by personal
hand delivery, by professional overnight delivery service, or by registered or
certified mail, postage prepaid with return receipt requested, at the following
address:

President

OrthoLogic Corp.

1275 West Washington Street

Tempe, AZ 85281

Payment of the option price shall be made either in (i) cash or by check, or
(ii) at your request and with the approval of the Company, by delivering shares
of the Company’s common stock which have been beneficially owned by you for a
period of at least six months prior to the time of exercise (“Delivered Stock”)
or a combination of cash and Delivered Stock. Payment in the form of Delivered
Stock shall be in the amount of the fair market value of the stock at the date
of exercise, determined pursuant to the Stock Option Plan.

     6. Valuation and Withholding. If required by applicable regulations, the
Company shall, at the time of issuance of any Shares purchased pursuant to the
Stock Option Plan, provide you with a statement of valuation of the Shares
issued. The Company shall be entitled to withhold amounts from your
compensation or otherwise to receive an amount adequate to provide for any
applicable federal, state and local income taxes (or require you to remit such
amount as a condition of issuance). The Company may, in its discretion,
satisfy any such withholding requirement, in whole or in part, by withholding
from the shares to be issued the number of shares that would satisfy the
withholding amount due.

     7. Termination of Option. Notwithstanding anything to the contrary, this
option can become exercisable only while you are an employee of the Company,
and shall not be exercisable after the earliest of (i) the tenth anniversary of
the Option Date; (ii) three months after the date your employment with the
Company terminates, if such termination is for any reason other than permanent
disability, death, or cause; (iii) the date your employment terminates, if such
termination

 

 

Name

12/29/2004

Page 4

is for cause, as determined by the Company in its sole discretion; or (iv) one
year after the date your employment with the Company terminates, if such
termination is the result of death or permanent disability.

     8. Notice of Disposition of Shares. If you dispose of any Shares acquired
on the exercise of this option within either (a) two years after the Option
Date or (b) one year after the date of exercise of this option, you must notify
the Company within seven days of such disposition.

     9. Miscellaneous. You will have no rights as a stockholder with respect
to the Shares until the exercise of the option and payment of the full purchase
price therefor in accordance with the terms of the Stock Option Plan and this
Letter of Grant. Nothing herein contained shall impose any obligation on the
Company or any parent or subsidiary of the Company or on you with respect to
your continued employment by the Company or any parent or subsidiary of the
Company. Nothing herein contained shall impose any obligation upon you to
exercise this option. While the option granted hereunder is intended to
qualify as an incentive stock option under Code Section 422A, the Company
cannot assure you that such option will, in fact, qualify as incentive stock
options, and makes no representation as to the tax treatment to you upon
receipt or exercise of the option or sale or other disposition of the Shares
covered by the option.

     10. Governing Law. This Letter of Grant shall be subject to and construed
in accordance with the law of the State of Arizona, except as may be required
by the Delaware General Corporation Law or the federal securities laws. Venue
for any action arising from or relating to this Agreement shall lie exclusively
in Superior Court, Maricopa County, Arizona or the United States District Court
for the District of Arizona, Phoenix Division.

     11. Relationship to the Stock Option Plan. The option contained in this
Letter of Grant is subject to the terms, conditions and definitions of the
Stock Option Plan. To the extent that the terms, conditions and definitions of
this Letter of Grant are inconsistent with the terms, conditions and
definitions of the Stock Option Plan, the terms, conditions and definitions of
the Stock Option Plan shall govern. You hereby accept this option subject to
all terms and provisions of the Stock Option Plan. You agree to accept as
binding, conclusive and final all decisions or interpretations of the Board or
any committee appointed by the Board upon any questions arising under the Stock
Option Plan. You agree to consult your independent tax advisors with respect
to the income tax consequences to you, if any, of participating in the Stock
Option Plan and authorize the Company to withhold in accordance with applicable
law from any compensation otherwise payable to you any taxes required to be
withheld by federal, state or local law as a result of your participation in
the Stock Option Plan.

     12. Communication. No notice or other communication under this Letter of
Grant shall be effective unless the same is in writing and is personally
hand-delivered, or is sent by professional overnight delivery service or mailed
by registered or certified mail, postage prepaid and with return receipt
requested, addressed to:

	a)	 	the Company at the address set forth in Section 5 above, or such
other address as the Company has designated in writing to you, in
accordance with the provisions hereof, or

 

 

Name

12/29/2004

Page 5

	b)	 	you at the address set forth at the beginning of this letter, or such
other address as you have designated in writing to the Company, in
accordance with the provisions hereof.

You should execute the enclosed copy of this Letter of Grant and return it to
the Company as soon as possible. The additional copy is for your records.

Very truly yours,

OrthoLogic Corp.

                                                                            

By:          Thomas R. Trotter
                President
and Chief Executive Officer

TRT/bd

	 	 	 
	

	ACCEPTED AND AGREED TO:
	 
	 	 
	

	

	

	Name

Optionee
	 
	 	 
	

	Date:exv10w2

 

Exhibit 10.2

LETTER OF NON-QUALIFIED OPTION GRANT

ORTHOLOGIC CORP. 1997 STOCK OPTION PLAN

Date

Name/address

RE: OrthoLogic Corp. 1997 Stock Option Plan

Dear ______,

In order to provide additional incentive to certain employees and directors,
OrthoLogic Corp. (the “Company”) adopted the OrthoLogic 1997 Stock Option Plan
(the “Stock Option Plan”). By means of this letter (the “Letter of Grant”),
the Company is offering you a non-qualified stock option pursuant to the Stock
Option Plan. The Company’s sale of its common shares underlying the option
granted to you hereby has been registered with the U.S. Securities and Exchange
Commission. A copy of the prospectus, including a copy of the Stock Option
Plan relating to that registration is enclosed or, can be obtained
from the Company.

The option granted to you hereunder shall be subject to all of the terms and
conditions of the Stock Option Plan, which you should carefully review. In
addition, such option is subject to the following terms and conditions:

     1. Grant of Option.
 The Company hereby grants to you, pursuant to the
Stock Option Plan, the option to purchase from the Company upon the terms and
conditions and at the times hereinafter set forth, an aggregate of
________
shares of the Company’s $0.0005 par value common stock (the “Shares”) at a
purchase price of $__________ per Share. The date of grant of this option is
__________ (hereinafter referred to as the “Option Date”).

     2. Exercise Term of Option. Unless earlier terminated as described in
Section 7, the option will vest and may be exercised for the purchase of Shares
as described in the following schedule:

	 	 	 
	Number of Shares
	 	Vesting Schedule

	

	 	

     3. Nontransferability. This option shall not be transferable otherwise
than by will or by the laws of descent and distribution, and the options shall
be exercisable only by you during your lifetime.

 

 

Name

12/29/2004

Page 2

     4. Other Conditions and Limitations.

(a) Any Shares issued upon exercise of this option shall not be issued
unless the issuance and delivery of Shares pursuant thereto shall
comply with all relevant provisions of law including, without
limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the rules and regulations
promulgated thereunder, any applicable state securities or “Blue Sky”
law or laws (or an exemption from such provision is available), and
the requirements of any stock exchange or national market system of a
national securities association upon which the Shares may then be
listed and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

(b) No transfer of any Shares issued upon the exercise of the option
will be permitted by the Company, unless any request for transfer is
accompanied by evidence satisfactory to the Company that the proposed
transfer will not result in a violation of any applicable law, rule or
regulation, whether federal or state, including in the discretion of
the Company an opinion of counsel reasonably acceptable to the
Company.

(c) Inability of the Company to obtain approval from any regulatory
body having jurisdictional authority deemed by the Company’s counsel
to be necessary to the lawful issuance and sale of any Shares
hereunder shall relieve the Company of any liability in respect to the
nonissuance or sale of such Shares as to which such requisite
authority shall not have been obtained.

(d) Unless the Shares are subject to a then effective registration
statement under the Securities Act of 1933, upon exercise of this
option (in whole or in part) and the issuance of the Shares, the
Company shall instruct its transfer agent to enter stop transfer
orders with respect to Shares, and all certificates representing the
Shares shall bear on the face thereof substantially the following
legend:

	 	 	 	“The shares of common stock represented by this certificate have
not been registered under the Securities Act of 1933, as amended,
and may not be sold, offered for sale, assigned, transferred or
otherwise disposed of unless registered pursuant to the provisions
of that Act or an opinion of counsel to the Company is obtained
stating that such disposition is in compliance with an available
exemption from such registration.”

     5. Exercise of Option. You may exercise the option only by giving the
President of the Company written notice (including the number of Shares that
you are intending to acquire, accompanied by the full exercise price), by
personal hand delivery, by professional overnight delivery service, or by
registered or certified mail, postage prepaid with return receipt requested, at
the following address:

 

 

Name

12/29/2004

Page 3

	 
	President

	OrthoLogic Corp.

	1275 West Washington

	Phoenix, Arizona 85281

Payment of the option price shall be made either in (i) cash or by check, or
(ii) at your request and with the written approval of the Company, (a) by
delivering shares of the Company’s common stock which have been beneficially
owned by you for a period of at least six months prior to the time of exercise
(“Delivered Stock”), or (b) a combination of cash and Delivered Stock. The
Company may arrange for or cooperate in permitting broker-assisted cashless
exercise procedures. Payment in the form of Delivered Stock shall be in the
amount of the fair market value of the stock at the date of exercise,
determined pursuant to the Stock Option Plan.

     6. Valuation and Withholding. If required by applicable regulations, the
Company shall, at the time of issuance of any Shares purchased pursuant to the
Stock Option Plan, provide you with a statement of valuation of the Shares
issued. The Company shall be entitled to withhold amounts from your
compensation or otherwise to receive an amount adequate to provide for any
applicable federal, state and local income taxes (or require you to remit such
amount as a condition of issuance). The Company may, in its discretion,
satisfy any such withholding requirement, in whole or in part, by withholding
form the shares to be issued the number of shares that would satisfy the
withholding amount due.

     7. Termination of Non-Qualified Stock Options. Notwithstanding anything
to the contrary, this option can become exercisable, and shall not be
exercisable after the earliest of (i) the tenth anniversary of the Option Date;
(ii) two years after the date you cease to perform services for the Company, if
such termination of services is for any reason other than death, permanent
disability, retirement or cause, (iii) three years after the date you cease to
perform services for the Company, if such termination of services is by reason
of death, permanent disability or retirement, or (iv) the date you cease to
perform services for the Company, if such termination is for cause, as
determined by the Board of Directors in its sole discretion.

     8. Miscellaneous. You will have no rights as a stockholder with respect to
the Shares until the exercise of the option and payment of the full purchase
price therefor in accordance with the terms of the Stock Option Plan and this
Letter of Grant. Nothing herein contained shall impose any obligation on the
Company or any parent or subsidiary of the Company or on you with respect to
your continued employment by the Company or any parent or subsidiary of the
Company. Nothing herein contained shall impose any obligation upon you to
exercise this option.

     9. Governing Law. This Letter of Grant shall be subject to and construed
in accordance with the law of the State of Arizona, except as may be required
by the Delaware General Corporation Law or the federal securities laws. Venue
for any action arising from or relating to this Agreement shall lie exclusively
in Superior Court, Maricopa County, Arizona or the United States District Court
for the District of Arizona, Phoenix Division.

 

 

Name

12/29/2004

Page 4

     10. Relationship to the Stock Option Plan. The option contained in this
Letter of Grant is subject to the terms, conditions and definitions of the
Stock Option Plan. To the extent that the terms, conditions and definitions of
this Letter of Grant are inconsistent with the terms, conditions and
definitions of the Stock Option Plan, the terms, conditions and definitions of
the Stock Option Plan shall govern. You hereby accept this option subject to
all terms and provisions of the Stock Option Plan. You agree to accept as
binding, conclusive and final all decisions or interpretations of the Board or
any committee appointed by the Board upon any questions arising under the Stock
Option Plan. You agree to consult your independent tax advisors with respect
to the income tax consequences to you, if any, of participating in the Stock
Option Plan and authorize the Company to withhold in accordance with applicable
law from any compensation otherwise payable to you any taxes required to be
withheld by federal, state or local law as a result of your participation in
the Stock Option Plan.

     11. Communication. No notice or other communication under this Letter of
Grant shall be effective unless the same is in writing and is personally
hand-delivered, or is sent by professional overnight delivery service or mailed
by registered or certified mail, postage prepaid and with return receipt
requested, addressed to the Company at the address set forth in Section 5
above, or such other address as the Company has designated in writing to you,
in accordance with the provisions hereof, or you at the address set forth at
the beginning of this letter, or such other address as you have designated in
writing to the Company, in accordance with the provisions hereof.

You should execute the enclosed copy of this Letter of Grant and return it to
the Company as soon as possible. The additional copy is for your records.

Very truly yours,

OrthoLogic Corp.

	 	 	 
	

	 	 
	By: Thomas R. Trotter
	 	 
	President and Chief Executive Officer

	 	 

	 	 	 
	

	 	ACCEPTED AND AGREED TO:
	

	 	 
	TRT/bd

	 	 
	 

	 	

	

	 	Name
	

	 	Optionee
	

	 	Date:

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