Document:

Exhibit 10.52

 

FOCUS ENHANCEMENTS, INC.

 

2000 Plan - Executive Non-Qualified Stock Option Agreement

 

FOCUS
ENHANCEMENTS, INC., a Delaware Corporation (the “Company “) hereby
grants to               
(the “Optionee”) on this the                                 a
Non-Qualified Stock Option to purchase                                 (###)
shares (the “Option Shares”) of Common Stock, $0.01 par value (the “Common
Stock”), at a price per share equaling the closing price of the Company’s
common stock on its principle market on a per share basis on the date that the
Plan (defined later herein) is approved by the shareholders of the Company.
Both parties acknowledge that the Company previously entered an Executive
Non-Qualified Stock Option Agreement with Optionee having the same effective
date and granting the right to purchase the same amount of shares of Company’s
common stock (“Original Agreement”) where such Original Agreement contained
language regarding the price of the option which was inconsistent with the intent
of the parties. This Agreement shall replace the Original Agreement and upon
execution hereof, and such Original Agreement shall immediately become null and
void without recourse.

 

NOW,
THEREFORE, for good and valuable consideration, the sufficiency of which is
hereby acknowledged, the Company and the Optionee hereby agree as follows:

 

1.                                      Grant as Non-Qualified Option;
Other Options. This Option is intended to
be a Non-Qualified Option (rather than an incentive stock option), and the
Board of Directors intends to take appropriate action, if necessary, to achieve
this result. This Option is in addition to any other options heretofore or
hereafter granted to the Optionee by the Company, but a duplicate original of
this instrument shall not affect the grant on another option. This Agreement
shall be subject in all respects to shareholder approval of the underlying
option plan (“Plan”). If, for any reason, the Plan is not approved by the
shareholders, this grant shall be voidable at the sole option of the Company.

 

2.                                      Vesting of Options. If the Optionee continues to serve the
Company as an employee, officer, director, agent, advisor or consultant,
including services as a member of the board of Advisors of the Company (such
service is described herein as maintaining or being involved in a “Business
Relationship” with the Company), then at the end of the first calendar month
from the Granting Date, the Option shall vest to the extent of one thirty-sixth
(1/36) of the Optioned Shares for each such one calendar month period that
elapses from the Granting Date. Notwithstanding the cancellation of the
Original Agreement, vesting shall begin on the effective date hereof.

 

The
foregoing notwithstanding, this Option shall become immediately exercisable
with respect to all the Option Shares purchasable hereunder if while the
Optionee continues to maintain a Business Relationship with the Company in the
event of a change of control as defined herein. For purposes of this agreement
a “change in control” shall mean: (x) a merger or consolidation of the Company
with or into, or the acquisition of the Company by, another entity (y) the sale
of all or substantially all of the stock or assets of the Company in a
transaction or series of related transactions such that the stockholders of the
Company immediately prior to such event do not immediately after giving effect
to such event beneficially own voting securities representing in the aggregate
more than 80% of the combined voting power of the voting securities of the
surviving entity or the entity purchasing such stock or assets (the “Surviving
Entity”) or the members of the Board of Directors of the Company immediately
prior to such event do not immediately after giving effect to such event
constitute a majority of the Board of Directors of the Surviving Entity.

 

3                                         Termination of Business
Relationship. If the Optionee ceases to
maintain a Business

 

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Relationship with the Company (or any affiliated
corporation) for any reason, no further installments of this Option shall
become exercisable except as set forth in Section 2 above, and this Option
shall terminate 90 days after the date the Business Relationship ceases, but in
no event later than the scheduled expiration date. In such a case, the Optionee’s
only rights to exercise options hereunder shall be those which are properly
exercisable before the termination of this Option, and the Optionee may
exercise this Option for the number of Option Shares which have vested and
become exercisable prior to the date of termination.

 

4.                                      Death: Disability. If the Optionee dies while involved in a
Business Relationship with the Company (or any affiliated corporation), this
Option may be exercised, to the extent of the number of Option Shares with
respect to which the Optionee could have exercised it on the date of his or her
death, by his or her estate, personal representative or beneficiary to whom
this Option has been assigned pursuant to Section 9, at any time within
180 days after the date of death, but not later than the scheduled expiration
date. If the Optionee’s Business Relationship with the Company is terminated by
reason of his disability, this Option may be exercised, to the extent of the
number of Option Shares with respect to which the Optionee could have exercised
it on the date the Business Relationship was terminated, at any time within 180
days after the date of such termination, but not later than the scheduled
expiration date. At the expiration of such 180-day period or the scheduled
expiration date, whichever is the earlier, this Option shall terminate and the
only rights hereunder shall be those as to which the Option was properly
exercised before such termination. For the purposes of this Option, the term “disability”
shall mean “permanent and total disability” as defined in Section 22(e)(3) of
the Internal Revenue Code or successor statute.

 

5.                                      Partial Exercise. Exercise of this Option up to the extent
above stated may be made in part at any time and from time to time within the
above limits, except that this Option may not be exercised for a fraction of a
share unless such exercise is with respect to the final installment of Option
Shares subject to this Option and a fractional share (or cash in lieu thereof)
must be issued to permit the Optionee to exercise completely such final
installment. Any fractional share with respect to which an installment of this
Option cannot be exercised because of the limitation contained in the preceding
sentence shall remain subject to this Option and shall be available for later
purchase by the Optionee in accordance with the terms hereof.

 

6.                                      Payment of Price. The Option price is payable in United States
dollars only and must be paid:

 

a.                                       in cash or by personal check, or any
combination of the foregoing, equal in amount to the Option price; or

 

b.                                      in the discretion of the Board of Directors,
in cash, by personal check, by delivery of shares of the Company’s Common Stock
having a fair market value (as determined by the Board of Directors) equal as
of the date of exercise to the Option price, by delivery of a personal recourse
promissory note, through the delivery of an assignment to the Company of a
sufficient amount of the proceeds from the sale of the Common Stock acquired
upon exercise of the Option and an authorization to the broker or selling agent
to pay that amount to the Company, which sale shall be at the Optionee’s
direction at the time of exercise, or by any combination of the foregoing,
equal in amount to the Option Price.

 

If the Optionee delivers shares of Common Stock held
by the Optionee (the “Old Stock”) to the Company in full or partial
payment of the option price, and the Old Stock so delivered is subject to
restrictions or limitations imposed by agreement between the Optionee and the
Company, the Common Stock received by the Optionee on the exercise of this
Option shall be subject to all

 

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restrictions
and limitations applicable to the Old Stock to the extent that the Optionee paid
for such Commons Stock or Preferred Stock by delivery of Old Stock, in addition
to any restrictions or limitations imposed by this Agreement.

 

7.                                 Agreement to Purchase for
Investment. By acceptance of this
Option, the Optionee agrees that a purchase of Option Shares under this Option
will not be made with a view to their distribution, as that term is used in the
Securities Act of 1933, as amended (the “Securities Act”), unless in the
opinion of counsel to the Company such distribution is in compliance with or
exempt from the registration and prospectus requirements of the Securities Act
and applicable state securities laws, and the Optionee agrees to sign a
certificate to such effect at the time of exercising this Option and agrees
that the certificate for the Option Shares so purchased may be inscribed with a
legend to ensure compliance with the Securities Act and applicable state
securities laws.

 

8.                                 Method of Exercising Option. Subject to the terms and conditions of this
Agreement, this Option may be exercised by written notice to the address of the
Company, at its Wilmington, Massachusetts office, in the form attached hereto
as Exhibit A. Such notice shall state the election to exercise this Option
and the number of Option Shares in respect of which it is being exercised and
shall be signed by the person or persons so exercising this Option. Such notice
shall be accompanied by payment of the full purchase price of such Option
Shares, and the Company or its transfer agent shall deliver a certificate or certificates
representing such Option Shares as soon as practicable after the notice shall
be received. The certificate or certificates for the Option shares as to which
this Option shall have been so exercised shall be registered in the name of the
person or persons so exercising this Option (or, if this Option shall be
exercised by the Optionee and if the Optionee shall so request in the notice
exercising this Option, shall be registered in the name of the Optionee and
another person jointly, with right of survivorship) and shall be delivered as
provided above to or upon the written order of the person or persons exercising
this Option. In the event this Option shall be exercised, pursuant to Section 4
hereof, by any person or persons other than the Optionee, such notice shall be
accompanied by appropriate proof of the right of such person or persons to
exercise this Option. All Option Shares that shall be purchased upon the
exercise of this Option as provided herein shall be fully paid and
nonassessable.

 

9.                                 Option Not Transferable.

 

a.                                       This Option is not transferable or assignable
except by will or by the laws of descent and distribution. During the Optionee’s
lifetime only the Optionee can exercise this Option.

 

b.                                      In the event the Option Shares shall be community
property, and in the event of a divorce between the Optionee and said Optionee’s
spouse, then any transfer of the Option Shares (whether to said Optionee’s
spouse or otherwise), shall be a prohibited transfer.

 

10.                               No Obligation to Exercise Option. The grant and acceptance of this Option
imposes no obligation on the Optionee to exercise it.

 

11.                               No Obligation to Continue
Business Relationship. The Company and any
affiliated corporations are not, as a result of the grant and acceptance of
this Option, obligated in any manner to continue to maintain a Business
Relationship with the Optionee.

 

12.                               No Rights as Stockholder
until Exercise. The Optionee shall have no
rights as a stockholder with respect to the Option Shares subject to this
Agreement until a stock certificate therefor has been issued to the Optionee
and is fully paid for by the Optionee. No adjustment shall

 

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be made, except adjustments for changes in
capitalization pursuant to Section 13 hereof, for dividends (whether in cash,
securities or other property) or distributions or other similar rights for
which the record date is prior this date such stock certificate is issued.

 

13.                               Capital Changes and Business
Successions. It is the purpose of this
Option to encourage the Optionee to work for the best interests of the Company
and its stockholders. Because, for example, that might require the issuance of
a stock dividend or a merger with another corporation, the purpose of this
Option would not be served if such a stock dividend, stock split, merger or
similar occurrence would cause the Optionee’s rights hereunder to be diluted or
terminated and thus be contrary to the Optionee’s interest. Therefore, if the
Company is to be consolidated with or acquired by another entity in a merger,
sale of all or substantially all of the Company’s assets or otherwise (an “Acquisition”),
the Board or the board of directors of any entity assuming the obligations of
the Company hereunder (the “Successor Board”), may, as to outstanding
Options, take one or more of the following actions: (i) make appropriate
provision for the continuation of such Options by substituting on an equitable
basis for the shares then subject to such Options the consideration payable
with respect to the outstanding shares of Common Stock in connection with the
Acquisition; or (ii) make appropriate provision for the continuation of
such Options by substituting on an equitable basis for the shares then subject
to such Options any equity securities of the successor corporation; or (iii) upon
written notice to the Optionee, provide that all Options must be exercised, to
the extent than exercisable, within a specified number of days of the date of
such notice, at the end of which period the Options shall terminate; or (iv) terminate
all Options in exchange for a cash payment equal to the excess of the fair
market value of the shares subject to such Options (to the extent then
exercisable) over the exercise price thereof; or (v) terminate all Options
in exchange for the right to participate in any stock option or other employee
benefit plan of any successor corporation (giving proper credit to any Optionee
for that portion of any Option which has otherwise vested and become
exercisable prior to the Acquisition).

 

14.                               Withholding Taxes. The Optionee hereby agrees that the Company
may withhold from the Optionee’s wages or other remuneration the appropriate
amount of federal, state and local taxes attributable to the Optionee’s
exercise of any installment of this Option. At the Company’s discretion, the
amount required to be withheld may be withheld in cash from such wages or other
remuneration, or in kind from the Common Stock otherwise deliverable to the
Optionee on exercise of this Option. The Optionee further agrees that, if the
Company does not withhold an amount from the Optionee’s wages or other
remuneration sufficient to satisfy the Company’s withholding obligation, the
Optionee will reimburse the Company on demand, in cash, for the amount
underwithheld.

 

15.                               No Exercise of Option if
Engagement or Employment Terminated for Cause. If the employment or engagement of the
Optionee is terminated for “Cause,” this Option shall terminate on the date of
such termination and this Option shall thereupon not be exercisable to any
extent whatsoever. “Cause” is conduct, as determined by the Board of
Directors, involving one or more of the following: (i) gross misconduct by
the Optionee which is materially injurious to the Company; or (ii) the
commission of an act of embezzlement, fraud or deliberate disregard of the rules or
polices of the Company which results in material economic loss, damage or
injury to the Company; or (iii) the unauthorized disclosure of any trade
secret or confidential information of the Company or any third party who has a
business relationship with the Company or a violation of any noncompetition
covenant or assignment of inventions obligation with the Company; or (iv) the
commission of an act which induces any customer or prospective customer of the
Company to break a contract with the Company or to decline to do business with
the Company; or (v) the conviction of the Optionee of a felony involving
any financial impropriety or which would materially interfere with the Optionee’s
ability to perform his or her services or otherwise be injurious to the
Company;

 

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or
(vi) the failure of the Optionee to perform in a material respect his or
her employment of engagement obligations without proper cause. In making such
determination, the Board of Directors shall act fairly and in good faith.

 

16.                               Stock Certificate Legend. Because the Optionee is an “affiliate” of the
Company (as defined in Rule 144 promulgated under the Securities Act), all
stock certificates representing shares of Common Stock issued pursuant to the
Option shall have affixed thereto legends substantially in the following form:

 

“The
shares represented by this certificate have not been registered under the
Securities Act of 1933, as amended (the “Act”), and may not be sold,
transferred or assigned unless such shares are registered under the Act or an
opinion of counsel, satisfactory to the corporation, is obtained to the effect
that such sale, transfer or assignment is exempt from the registration
requirements of the Act.”

 

17.                               Release. Optionee, for itself and his/her respective
trustees and beneficiaries, hereby releases, remises and forever discharges
Focus Enhancements, Inc., its respective, subsidiaries, affiliates,
officers, directors, employees, agents, trustees, beneficiaries, successors and
assigns (collectively referred to hereinafter as “Company”) of and from any and
all claims, suits, demands, liabilities, sums, dues, actions and causes of
action that Optionee has had, now has, or can, shall or may have against
Company, or any of them, from the beginning of the world until this date
related to the Original Agreement (“Claims”).

 

The Optionee hereby acknowledges and assumes all risk, chance, hazard,
likelihood or possibility, however large or remote, that the Claims may be or
become greater or more extensive than is now known, anticipated or expected,
that no promise or inducement has been made to the Optionee except the
consideration recited herein, and that in executing this Agreement the Optionee
does not rely on and will not claim reliance on any statement or representation
of the Company or any of them concerning the nature or extent of any Claims.

 

From the date Optionee receives this Agreement, Optionee has twenty-two
(22) days to consider it. Should Optionee decide to sign the Agreement,
Optionee has seven (7) days following the signing to revoke the Agreement,
and the Agreement will not become effective and enforceable until that seven (7) day
revocation period has expired. Should Optionee either decide not to sign this
Agreement or should Optionee sign it and elect to revoke it during the seven- (7) day
period, then this Agreement shall be null and void.

 

The Optionee acknowledges that by the signing hereof the Optionee admits
to reading and understanding each and every line and the contents and effect of
this Release, that the Optionee has had an opportunity to have this document
reviewed by an attorney and to give the Optionee legal advice pertaining to
this Agreement prior to the Optionee signing this Agreement, and that the
signing hereof is the free act and deed of the Optionee or her duly authorized
representative.

 

18.                               Governing Law. This Agreement shall be governed by and
interpreted in accordance with the internal laws of the State of Delaware.

 

19.                               Miscellaneous.

 

a.                                       Notices. Any notices or communication provided for
herein shall be given in writing by first class mail, electronic facsimile
transmission, or overnight courier service, which shall be in the case of the Optionee
to his or her residence, or to such other address as may be

 

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designated by such Optionee.

 

b.                                       Amendment of Agreement. The provisions of this Agreement may be
waived, altered, amended, or repealed, in whole or in part, only on the written
consent of all parties to this Agreement.

 

c.                                       Severability. In the event that any provisions of this
Agreement shall be held to be invalid, the remaining Paragraphs shall remain in
full force and effect.

 

d.                                       Attorney’s Fees. In the event of any dispute, claim,
arbitration or legal proceeding arising out of this Agreement, the successful
or prevailing party shall be entitled to reimbursement from the other of all
costs, expenses and attorney’s fees.

 

e.                                       Necessary Acts. Each party agrees to perform any further acts
and execute and deliver any documents which may be reasonably necessary to
carry out provisions of this Agreement.

 

f.                                         Persons Bound. This Agreement shall be binding upon the
parties hereto, their respective spouses, heirs, legatees, executors,
administrators, permitted transferees and legal successors. This Agreement
shall also be binding upon the distribution of any estate or trust which may be
a Optionee. At the request of the Company, any such transferees, distributees,
assignees, or successors in interest who shall be personally bound by this
Agreement shall execute a counterpart of this Agreement.

 

IN
WITNESS WHEREOF the Company and the Optionee have caused this instrument to be
executed, as of the date first written above, and the Optionee whose signature
appears below acknowledges receipt of a copy of the 10A Prospectus and
acceptance of an original copy of this Agreement.

 

 

	
  EMPLOYEE

  	
  FOCUS
  ENHANCEMENTS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street
  Address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City,
  State, Zip Code

  	
   

  

 

6Exhibit 10.53

 

FOCUS
ENHANCEMENTS, INC.

EXECUTIVE

RESTRICTED STOCK

AGREEMENT

 

We are pleased
to notify you that FOCUS ENHANCEMENTS, INC., a Delaware corporation (the “Company”)
hereby grants to you a restricted stock award (“Award”) under the Focus Enhancements, Inc.
Amended and Restated 2000 Stock Incentive Plan (the “Plan”) to receive the
shares of the Common Stock of the Company (the “Award Shares”) as described in
your Notice of Award of Restricted Stock and this Restricted Stock Agreement.

 

EXCEPT AS EXPRESSLY
SET FORTH IN THIS RESTRICTED STOCK AGREEMENT, THE AWARD IS SUBJECT TO AND MAY BE
EXECUTED ONLY IN ACCORDANCE WITH THE PLAN. 
ONLY CERTAIN PROVISIONS OF THE PLAN ARE SUMMARIZED IN THIS RESTRICTED
STOCK AGREEMENT.  THE TERMS OF THE PLAN
ARE INCORPORATED HEREIN BY REFERENCE.  IN
THE EVENT OF ANY CONFLICT BETWEEN THE PROVISIONS IN THIS RESTRICTED STOCK
AGREEMENT AND THE PLAN, THE PROVISIONS IN THE PLAN SHALL GOVERN.  A COPY OF THE PLAN IS ATTACHED AND IS
AVAILABLE FOR YOUR INFORMATION FROM THE COMPANY.

 

1.             Grant
of Award.  Subject to the terms of
this Restricted Stock Agreement and the Plan, the Company hereby grants to you
the Award for that number of shares of restricted stock set forth in the Notice
of Award of Restricted Stock.

 

2.             Nontransferability
of Award and Shares.  The Award shall
not be transferable (including by sale, assignment, pledge or hypothecation)
other than by will or the laws of intestate succession.  The designation of a beneficiary does not
constitute a transfer.  You shall not sell,
transfer, assign, pledge or otherwise encumber the shares subject to the Award
until all vesting requirements have been met.

 

3.             Shareholder
Rights.  Except as provided in Section 2,
you shall have all of the rights of a stockholder of the Company, including the
right to vote the shares and receive dividends and other distributions provided
that distributions in the form of stock shall be subject to the same
restrictions as the underlying restricted stock.

 

4.             Vesting
and Earning of Award.

 

(a)                                  If you continue to
serve the Company as an employee, officer, or director (such service is
described herein as maintaining or being involved in a “Service Relationship”
with the Company), then the Award shall vest in accordance with the Notice of
Award of Restricted Stock.

 

The foregoing
notwithstanding, this Award shall become immediately vested with respect to all
the Award Shares hereunder if while you continue to maintain a Service
Relationship with the Company a change of control as defined herein occurs.  For purposes of this Restricted Stock
Agreement a “change in control” shall mean: (i) any “person,” as such term
is used in Sections 13(d) and 14(d) of

 

1

 

the Exchange
Act (other than the Company or any trustee or other fiduciary holding
securities under an employee benefit plan of the Company), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities; (ii) during
any period of two consecutive years, individuals who at the beginning of such
period constitute the Board of Directors, and any new director (other than a
director designated by a person who has entered into an agreement with the
Company to effect a transaction described in clause (i), (iii) or (iv) of
this definition) whose election by the Board of Directors or nomination for
election by the Company’s shareholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at
least a majority thereof; (iii) the shareholders of the Company approve a
merger or consolidation of the Company with any other entity, other than (1) a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation or (2) a merger or consolidation
effected to implement a recapitalization of the Company (or similar
transaction) in which no “person” (as hereinabove defined) acquires more than
50% of the combined voting power of the Company’s then outstanding securities;
or (iv) the shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets.

 

(b)                                 The Committee has sole
authority to determine whether and to what degree the Award has vested and been
earned and is payable and to interpret the terms and conditions of this
Restricted Stock Agreement and the Plan.

 

5.             Termination
of Employment.  In the event that
your Service Relationship with the Company is terminated for any reason, other
than death or disability as set forth in Section 6, and you have not yet
earned all or part of the Award pursuant to Section 4, then the Award, to
the extent not earned as of your termination date, shall be forfeited
immediately upon such termination, and you shall have no further rights with
respect to the Award or the Award Shares underlying that portion of the Award
that have not yet been earned and vested. 
You expressly acknowledge and agree that the termination of your Service
Relationship with the Company shall result in forfeiture of the Award and the
Award Shares to the extent the Award has not been earned and vested as of the
date of his termination of service or employment.

 

6.             Death
or Permanent Disability.  In the
event of a participant’s retirement, death or disability prior to the end of
the Restriction Period for a participant who has satisfied the one year
employment requirement of Section 10(b)(2) of the Plan with respect
to an award prior to retirement, death or disability, or as otherwise
determined by the Committee, the participant, or the participant’s estate,
shall be entitled to receive that proportion (to the nearest whole share) of

 

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the number of shares subject to the award
granted as the number of months of the Restriction Period which have elapsed
since the award date to the date at which the participant’s retirement, death
or disability occurs, bears to the total number of months in the Restriction
Period.  The participant’s right to
receive any remaining shares shall be canceled and forfeited and the shares
will be deemed to be reacquired by the Company.

 

7.             Settlement
of Award.  The Company shall not be
obligated to deliver any shares hereunder for such period as may be required by
it in order to comply with applicable federal or state statutes, laws and
regulations.

 

8.             No
Acquired Rights.  You agree and
acknowledge that:

 

(a)                                  the Plan is
discretionary in nature and that the Company can amend, cancel, or terminate it
at any time;

 

(b)                                 the grant of this
Award under the Plan is voluntary and occasional and does not create any
contractual or other right to receive future grants of any Awards or benefits
in lieu of any Awards, even if Awards have been granted repeatedly in the past
and regardless of any reasonable notice period mandated under local law;

 

(c)                                  the value of this
Award is an extraordinary item of compensation which is outside the scope of
your employment contract, if any;

 

(d)                                 this Award is not part
of normal or expected compensation or salary for any purposes, including, but
not limited to, calculating termination, severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pension, retirement
benefits, or similar payments;

 

(e)                                  this Award shall
expire upon termination of your Service Relationship with the Company for any
reason except as may otherwise be explicitly provided in the Plan and this
Restricted Stock Agreement;

 

(f)                                    the future value of
the shares awarded under the Plan is unknown and cannot be predicted with
certainty;

 

(g)                                 no claim or
entitlement to compensation or damages arises from the termination of this
Award or diminution in value of this Award or Award Shares purchased under the
Plan and you irrevocably release the Company from any such claim; and

 

(h)                                 your participation in
the Plan shall not create a right to further employment with the Company and
shall not interfere with the ability of the Company to terminate your
employment relationship at any time, with or without cause.

 

9.             Tax
Withholding.  At the election of the
restricted stockholder, the withholding obligation may be satisfied: (a) through
payment in United States dollars in cash or check, (b) through the
restricted stockholder’s surrender of shares of Common Stock that the
restricted stockholder had owned for more than six (6) months prior to the
date of such transfer, (c)

 

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through the Company’s retention of shares of
Common Stock which would otherwise be issued as a result of the exercise of the
option or the award of the restricted stock.

 

10.           Fractional
Award Shares.  In the event that the Award is settled in shares as set
forth in Section 7 and in the event that you are vested in a fractional
portion of an Award Share (a “Fractional Portion”), such Fractional Portion
shall not be converted into a share or issued to you.  Instead, the
Fractional Portion shall remain unconverted until the final vesting date for
the Award Shares; provided, however,
if a subsequent Fractional Portion is received by you prior
to the final vesting date for the Award Shares, it may be added to an existing Fractional
Portion accrued by you  under this Award such that the
resulting sum would be equal to or greater than a whole Share,
then such Fractional Portions shall be converted into one share; provided, further, that following such
conversion, any remaining Fractional Portion shall remain unconverted.  Upon the final vesting date, the value of any
remaining Fractional Portion(s) shall be paid in cash to you at the same time
as the conversion of the remaining Award Shares.

 

11.           Certificates.
As soon as practicable after the Notice of Award of Restricted Stock, the
Company shall issue stock certificates or request its transfer agent to hold
the shares in restricted book entry format with respect to the Award Shares
which will be registered in your name, and shall bear whatever legend or
restriction the Committee shall determine. Such Award Shares shall be held by
the Company or its transfer agent pending vesting. To the extent the Award
Shares become vested, the Company shall promptly provide you (or in the case of
your death, your designated beneficiary) the certificates for the appropriate
number of shares of Common Stock.

 

12.           Administration.  The authority to construe and interpret this
Restricted Stock Agreement and the Plan, and to administer all aspects of the
Plan, shall be vested in the Committee (as such term is defined in the Plan),
and the Committee shall have all powers with respect to this Restricted Stock
Agreement as are provided in the Plan. 
Any interpretation of the Restricted Stock Agreement by the Committee
and any decision made by it with respect to the Restricted Stock Agreement is
final and binding.

 

13.           Adjustments
Upon Changes in Capitalization.  In
the event of any change in the outstanding Common Stock of the Company by
reason of stock dividends, recapitalization, mergers, consolidations, split-up,
combinations or exchanges of shares and the like, the aggregate number or class
of shares subject to this Award immediately prior to such event shall be
appropriately adjusted by the Board of Directors in accordance with the terms of
the Plan, and such adjustment shall be conclusive.

 

14.           Superseding
Agreement; Binding Effect.  This
Restricted Stock Agreement supersedes any statements, representations or
agreements of the Company with respect to the grant of the Award or any related
rights, and you hereby waive any rights or claims related to any such
statements, representations or agreements. 
This Restricted Stock Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective executors, administrators,
next-of-kin, successors and assigns.

 

4

 

15.           Governing
Law.  Except as otherwise provided in
the Plan or herein, this Restricted Stock Agreement shall be construed and
enforced according to the laws of the State of Delaware, without regard to the
conflict of laws provisions of any state.

 

16.           Amendment
and Termination; Waiver.  Subject to
the terms of the Plan, this Restricted Stock Agreement may be modified or
amended only by the written agreement of the parties hereto.  The waiver by the Company of a breach of any
provision of the Restricted Stock Agreement by you shall not operate or be
construed as a waiver of any subsequent breach by you.

 

17.           Notices.  Except as may be otherwise provided by the
Plan, any written notices provided for in this Restricted Stock Agreement or
the Plan shall be in writing and shall be deemed sufficiently given if either
hand delivered or if sent by fax or overnight courier, or by postage paid first
class mail.  Notices sent by mail shall
be deemed received three business days after mailed but in no event later than
the date of actual receipt.  Notice may
also be provided by electronic submission, if and to the extent permitted by the
Committee.  Notices shall be directed, if
to you, at your address indicated by the Company’s records, or if to the
Company, at the Company’s principal office, attention Secretary.

 

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

 

19.           Counterparts;
Further Instruments. This Restricted Stock Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.  The parties hereto agree to execute such
further instruments and to take such further action as may be reasonably necessary
to carry out the purposes and intent of this Restricted Stock Agreement.

 

5

 

In signing
below, you hereby agree to the terms of this Restricted Stock Agreement and the
Plan and acknowledge receipt of a copy of the Plan.

 

	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  (print)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

6

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