Document:

Exhibit 10.18

 

OMTOOL, LTD.

1997 STOCK OPTION PLAN

NOTICE OF ISO STOCK OPTION
AGREEMENT

 

 

	
  [DATE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [NAME]

  	
  Omtool, Ltd

  	
   

  
	
  [ADDRESS]

  	
  8 Industrial way

  	
   

  
	
  [CITY, STATE ZIP CODE]

  	
  Salem, NH 03079

  	
   

  

 

[NAME] (the “Employee”), you have been granted
an option to purchase Common Stock, $0.01 par value (“Common Stock”), of
Omtool, Ltd., a Delaware corporation (the “Company”) subject to terms as and
conditions as set forth on the following page(s):

 

	
  Grant Number:

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  	
   

  	
   

  
	
  Shares Granted:

  	
   

  	
   

  	
   

  	
   

  
	
  Option Price:

  	
   

  	
   

  	
   

  	
   

  
	
  Grant Type:

  	
  ISO

  	
   

  	
   

  	
   

  
	
  Vesting Start
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
  Last Date to
  Exercise:

  	
   

  	
   

  	
   

  	
   

  

 

Vesting:

Subject
to the terms of the Plan set forth on the following pages, shares vest
according to the following vesting schedule:

 

	
  Date of Vest

  	
   

  	
  Shares Vesting Over

  the Period

  	
   

  	
  Vesting in Period

  Occurs

  	
   

  	
  Last Date to Exercise

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  6 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  9 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  12 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  15 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  18 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  21 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  24 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  27 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  30 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  33 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  36 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  39 month anniversary
  of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  42 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  45 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  48 month
  anniversary of Vesting Start Date

  	
   

  	
  6.25%

  	
   

  	
  Quarterly

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  

 

IN
WITNESSOF, the Company and the Employee have caused this instrument to be
executed as of date first above written.

 

 

	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  [NAME]

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

                                                1.                                      Grant Under 1997 Stock
Plan. 
This option is granted pursuant to and is governed by the Company’s 1997
Stock Plan (the “Plan”) and, unless the context otherwise requires, terms used
herein shall have the same meaning as in the Plan.  Determinations made in connection with this
option pursuant to the Plan shall be governed by the Plan as it exists on this
date.

 

                                                2.                                      Grant as Incentive Stock
Option; Other Options.  This option is intended to qualify as an
incentive stock option under Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”).  This
option is in addition to any other options heretofore or hereafter granted to
the Employee by the Company or any Related Corporation (as defined in the
Plan), but a duplicate original of this instrument shall not effect the grant
of another option.

 

                                                3.                                      Vesting of Option if
Employment Continues.  If the Employee has continued to be employed
by the Company or any Related Corporation on the following dates, the Employee may
exercise this option for the number of shares of Common Stock set opposite the
applicable date.

 

Notwithstanding the foregoing, in accordance with and subject to the
provisions of the Plan, the Committee may, in its discretion, accelerate the
date that any installment of this Option becomes exercisable.  The foregoing rights are cumulative and
(subject to Sections 4 or 5 hereof if the Employee ceases to be employed by the
Company and all Related Corporations) may be exercised on or before the date
which is 10 (ten) years from the date this option is granted.

 

                                                4.                                      Termination of Employment.

 

                                                (a)                                  Termination Other Than for
Cause.  If
the Employee ceases to be employed by the Company and all Related Corporations,
other than by reason of death or disability as defined in Section 5 or
termination for Cause as defined in Section 4(c), no further installments of
this option shall become exercisable, and this option shall terminate (and may
no longer be exercised) after the passage of three months from the Employee’s
last day of employment, but in no event later than the scheduled expiration
date.  In such a case, the Employee’s
only rights hereunder shall be those which are properly exercised before the
termination of this option.

 

                                                (b)                                  Termination for Cause. 
If the
employment of the Employee is terminated for Cause (as defined in Section
4(c)), this option shall terminate upon the Employee’s receipt of written
notice of such termination and shall thereafter not be exercisable to any
extent whatsoever.

 

                                                (c)                                  Definition of Cause. 
“Cause”
shall mean conduct involving one or more of the following: (i) the
substantial and continuing failure of the Employee, after notice thereof, to
render services to the Company or Related Corporation in accordance with the
terms or requirements of his or her employment; (ii) disloyalty, gross
negligence, willful misconduct, dishonesty or breach of fiduciary duty to the
Company or Related Corporation; (iii) the commission of an act of
embezzlement or fraud; (iv) deliberate

 

2

 

disregard of the rules or policies of the Company or
Related Corporation which results in direct or indirect loss, damage or injury
to the Company or Related Corporation; (v) the unauthorized disclosure of
any trade secret or confidential information of the Company or Related
Corporation; or (vi) the commission of an act which constitutes unfair
competition with the Company or Related Corporation or which induces any
customer or supplier to breach a contract with the Company or Related
Corporation.

 

                                                5.                                      Death; Disability.

 

                                                (a)                                  Death.  If the
Employee dies while in the employ of the Company or any Related Corporation,
this option may be exercised, to the extent otherwise exercisable on the date
of his or her death, by the Employee’s 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.

 

                                                (b)                                  Disability.  If the
Employee ceases to be employed by the Company and all Related Corporations by
reason of his or her disability (as defined in the Plan), this option may be
exercised, to the extent otherwise exercisable on the date of the termination
of his or her employment, at any time within 180 days after such
termination, but not later than the scheduled expiration date.

 

                                                (c)                                  Effect of Termination. 
At the
expiration of the 180-day period provided in paragraphs (a) or (b) of this
Section 5 or the scheduled expiration date, whichever is the earlier, this
option shall terminate (and shall no longer be exercisable) and the only rights
hereunder shall be those as to which the option was properly exercised before
such termination.

 

                                                6.                                      Partial Exercise. 
This
option may be exercised 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 stock
subject to this option and cash in lieu of a fractional share must be paid, in
accordance with Paragraph 13(G) of the Plan, to permit the Employee 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
Employee in accordance with the terms hereof.

 

                                                7.                                      Payment of Price. 
(a) The
option price shall be paid in the following manner:

 

(i)                                     in cash or by check;

 

(ii)                                  subject to Section 7(b) below, by
delivery of shares of the Company’s Common Stock having a fair market value (as
determined by the Committee) equal as of the date of exercise to the option
price;

 

(iii)                               by delivery of an assignment satisfactory
in form and substance to the Company of a
sufficient amount of the proceeds from the sale of the

 

3

 

Option Shares and an instruction to the broker or
selling agent to pay that amount to the Company; or

 

(iv)                              by any combination of the foregoing.

 

                                                (b)                                  Limitations on Payment by
Delivery of Common Stock.  If the Employee delivers Common Stock held by
the Employee (“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 Employee and the Company, an
equivalent number of Option Shares shall be subject to all restrictions and
limitations applicable to the Old Stock to the extent that the Employee paid
for the Option Shares by delivery of Old Stock, in addition to any restrictions
or limitations imposed by this Agreement. 
Notwithstanding the foregoing, the Employee may not pay any part of the
exercise price hereof by transferring Common Stock to the Company unless such
Common Stock has been owned by the Employee free of any substantial risk of
forfeiture for at least six months.

 

                                                8.                                      Method of Exercising
Option.  Subject to the terms and conditions of
this Agreement, this option may be exercised by written notice to the Company
at its principal executive office,  or to
such transfer agent as the Company shall designate.  Such notice shall state the election to
exercise this option and the number of Option Shares for 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 shares, and the Company shall
deliver a certificate or certificates representing such shares as soon as
practicable after the notice shall be received. 
Such certificate or certificates shall be registered in the name of the
person or persons so exercising this option (or, if this option shall be
exercised by the Employee and if the Employee shall so request in the notice
exercising this option, shall be registered in the name of the Employee and
another person jointly, with right of survivorship). In the event this option
shall be exercised, pursuant to Section 5 hereof, by any person or persons
other than the Employee, such notice shall be accompanied by appropriate proof
of the right of such person or persons to exercise this option.

 

                                                9.                                      Option Not Transferable. 
This
option is not transferable or assignable except by will or by the laws of
descent and distribution.  During the
Employee’s lifetime only the Employee can exercise this option.

 

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

 

                                                11.                               No Obligation to Continue
Employment.  Neither the Plan, this Agreement, nor the
grant of this option imposes any obligation on the Company or any Related
Corporation to continue the Employee in employment.

 

                                                12.                               No Rights as Stockholder
until Exercise.  The Employee shall have no rights as a
stockholder with respect to the Option Shares until such time as the Employee
has exercised this option by delivering a notice of exercise and has paid in
full the purchase price for the shares

 

4

 

so exercised in accordance with Section 8.  Except as is expressly provided in the Plan
with respect to certain changes in the capitalization of the Company, no
adjustment shall be made for dividends or similar rights for which the record
date is prior to such date of exercise.

 

                                                13.                               Capital Changes and
Business Successions.  The Plan contains provisions covering the
treatment of options in a number of contingencies such as stock splits and
mergers.  Provisions in the Plan for
adjustment with respect to stock subject to options and the related provisions
with respect to successors to the business of the Company are hereby made
applicable hereunder and are incorporated herein by reference.

 

                                                14.                               Early Disposition. 
The Employee
agrees to notify the Company in writing immediately after the Employee
transfers any Option Shares, if such transfer occurs on or before the later of
(a) the date two years after the date of this Agreement or (b) the
date one year after the date the Employee acquired such Option Shares.  The Employee also agrees to provide the
Company with any information concerning any such transfer required by the
Company for tax purposes.

 

                                                15.                               Withholding Taxes.  If the Company
or any Related Corporation in its discretion determines that it is obligated to
withhold any tax in connection with the exercise of this option, or in
connection with the transfer of, or the lapse of restrictions on, any Common
Stock or other property acquired pursuant to this option, the Employee hereby
agrees that the Company or any Related Corporation may withhold from the
Employee’s wages or other remuneration the appropriate amount of tax.  At the discretion of the Company or Related
Corporation, the amount required to be withheld may be withheld in cash from
such wages or other remuneration or in kind from the Common Stock or other
property otherwise deliverable to the Employee on exercise of this option.  The Employee further agrees that, if the Company
or any Related Corporation does not withhold an amount from the Employee’s
wages or other remuneration sufficient to satisfy the withholding obligation of
the Company or Related Corporation, the Employee will make reimbursement on
demand, in cash, for the amount underwithheld.

 

                                                16.                               Provision of  Documentation  to  Employee.  By signing this Agreement the Employee
acknowledges receipt of a copy of this Agreement and a copy of the Plan.

 

                                                17.                               Miscellaneous.

 

                                                (a)                                  Notices.  All notices
hereunder shall be in writing and shall be deemed given when sent by certified
or registered mail, postage prepaid, return receipt requested, to the address
set forth below.  The addresses for such
notices may be changed from time to time by written notice given in the manner
provided for herein.

 

                                                (b)                                  Entire Agreement;
Modification.  This Agreement constitutes the entire
agreement between the parties relative to the subject matter hereof, and
supersedes all proposals, written or oral, and all other communications between
the parties relating to the subject matter of this Agreement.  This Agreement may be modified, amended or
rescinded only by a written agreement executed by both parties.

 

5

 

                                                (c)                                  Severability. 
The
invalidity, illegality or unenforceability of any provision of this Agreement
shall in no way affect the validity, legality or enforceability of any other
provision.

 

                                                (d)                                  Successors and Assigns. 
This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, subject to the limitations set
forth in Section 9 hereof.

 

                                                (e)                                  Governing Law.  This Agreement
shall be governed by and interpreted in accordance with the laws of the
Delaware, without giving effect to the
principles of the conflicts of laws thereof.

 

6Exhibit 10.19

 

OMTOOL, LTD.

1997 STOCK OPTION PLAN

NOTICE OF Non Qual STOCK OPTION AGREEMENT

 

 

	
  [DATE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [NAME]

  	
  Omtool, Ltd.

  	
   

  
	
  [ADDRESS]

  	
  8 Industrial Way

  	
   

  
	
  [CITY,
  STATE ZIP CODE]

  	
  Salem, NH 03079

  	
   

  

 

[NAME] (the “Employee”),  you have been granted an option to purchase
Common Stock, $0.01 par value (“Common Stock”), 
of  Omtool, Ltd., a Delaware
corporation (the “Company”) subject to terms as and conditions as set forth on
the following page(s):

 

	
  Grant Number:

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  	
   

  	
   

  
	
  Shares Granted:

  	
   

  	
   

  	
   

  	
   

  
	
  Option Price:

  	
   

  	
   

  	
   

  	
   

  
	
  Grant Type:

  	
  Non Qual

  	
   

  	
   

  	
   

  
	
  Vesting Start
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
  Last Date to
  Exercise:

  	
   

  	
   

  	
   

  	
   

  

 

Vesting:

Subject to the terms of the Plan as set forth on the
following pages, shares vest according to the following vesting schedule:

 

	
  Date of
  Vest

  	
   

  	
  Shares
  Vesting Over

  the
  Period

  	
   

  	
  Vesting
  in Period

  Occurs

  	
   

  	
  Last
  Date to

  Exercise

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1st Anniversary of Vesting Start Date

  	
   

  	
  25%

  	
   

  	
  End of
  period

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  2nd Anniversary of Vesting Start Date

  	
   

  	
  25%

  	
   

  	
  End of
  period

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  3rd Anniversary of Vesting Start Date

  	
   

  	
  25%

  	
   

  	
  End of
  period

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  
	
  4th Anniversary of Vesting Start Date

  	
   

  	
  25%

  	
   

  	
  End of
  period

  	
   

  	
  10th anniversary from
  Grant Date

  	
   

  

 

IN WITNESS WHEREOF, the Company and the Employee have
caused this instrument to be executed as of the date first above written.

 

 

	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  [NAME]

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

                                                1.                                      Grant Under 1997 Stock
Plan. 
This option is granted pursuant to and is governed by the Company’s 1997
Stock Plan (the “Plan”) and, unless the context otherwise requires, terms used
herein shall have the same meaning as in the Plan.  Determinations made in connection with this
option pursuant to the Plan shall be governed by the Plan as it exists on this
date.

 

                                                2.                                      Grant as Incentive Stock
Option; Other Options.  This option is not intended to qualify as an
incentive stock option under Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”).  This
option is in addition to any other options heretofore or hereafter granted to
the Employee by the Company or any Related Corporation (as defined in the
Plan), but a duplicate original of this instrument shall not effect the grant
of another option.

 

                                                3.                                      Vesting of Option if
Employment Continues.  If the Employee has continued to be employed
by the Company or any Related Corporation on the following dates, the Employee
may exercise this option for the number of shares of Common Stock set opposite
the applicable date.

 

Notwithstanding the foregoing, in accordance with and subject to the
provisions of the Plan, the Committee may, in its discretion, accelerate the
date that any installment of this Option becomes exercisable.  The foregoing rights are cumulative and
(subject to Sections 4 or 5 hereof if the Employee ceases to be employed by the
Company and all Related Corporations) may be exercised on or before the date
which is 10 (ten) years from the date this option is granted.

 

                                                4.                                      Termination of Employment.

 

                                                (a)                                  Termination Other Than for
Cause.  If
the Employee ceases to be employed by the Company and all Related Corporations,
other than by reason of death or disability as defined in Section 5 or
termination for Cause as defined in Section 4(c), no further installments of
this option shall become exercisable, and this option shall terminate (and may
no longer be exercised) after the passage of three months from the Employee’s
last day of employment, but in no event later than the scheduled expiration
date.  In such a case, the Employee’s
only rights hereunder shall be those which are properly exercised before the
termination of this option.

 

                                                (b)                                  Termination for Cause. 
If the
employment of the Employee is terminated for Cause (as defined in Section
4(c)), this option shall terminate upon the Employee’s receipt of written
notice of such termination and shall thereafter not be exercisable to any
extent whatsoever.

 

                                                (c)                                  Definition of Cause. 
“Cause”
shall mean conduct involving one or more of the following: (i) the
substantial and continuing failure of the Employee, after notice thereof, to
render services to the Company or Related Corporation in accordance with the
terms or requirements of his or her employment; (ii) disloyalty, gross
negligence, willful misconduct, dishonesty or breach of fiduciary duty to the
Company or Related

 

2

 

Corporation; (iii) the commission of an act of
embezzlement or fraud; (iv) deliberate disregard of the rules or policies
of the Company or Related Corporation which results in direct or indirect loss,
damage or injury to the Company or Related Corporation; (v) the
unauthorized disclosure of any trade secret or confidential information of the
Company or Related Corporation; or (vi) the commission of an act which
constitutes unfair competition with the Company or Related Corporation or which
induces any customer or supplier to breach a contract with the Company or
Related Corporation.

 

                                                5.                                      Death; Disability.

 

                                                (a)                                  Death.  If the
Employee dies while in the employ of the Company or any Related Corporation,
this option may be exercised, to the extent otherwise exercisable on the date
of his or her death, by the Employee’s 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.

 

                                                (b)                                  Disability.  If the
Employee ceases to be employed by the Company and all Related Corporations by
reason of his or her disability (as defined in the Plan), this option may be
exercised, to the extent otherwise exercisable on the date of the termination
of his or her employment, at any time within 180 days after such
termination, but not later than the scheduled expiration date.

 

                                                (c)                                  Effect of Termination. 
At the expiration
of the 180-day period provided in paragraphs (a) or (b) of this Section 5
or the scheduled expiration date, whichever is the earlier, this option shall
terminate (and shall no longer be exercisable) and the only rights hereunder
shall be those as to which the option was properly exercised before such
termination.

 

                                                6.                                      Partial Exercise. 
This
option may be exercised 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 stock
subject to this option and cash in lieu of a fractional share must be paid, in
accordance with Paragraph 13(G) of the Plan, to permit the Employee 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
Employee in accordance with the terms hereof.

 

                                                7.                                      Payment of Price. 
(a) The
option price shall be paid in the following manner:

 

(i)                                     in cash or by check;

 

(ii)                                  subject to Section 7(b) below, by
delivery of shares of the Company’s Common Stock having a fair market value (as
determined by the Committee) equal as of the date of exercise to the option
price;

 

3

 

(iii)                               by delivery of an assignment satisfactory
in form and substance to the Company of a
sufficient amount of the proceeds from the sale of the Option Shares and an
instruction to the broker or selling agent to pay that amount to the Company;
or

 

(iv)                              by any combination of the foregoing.

 

                                                (b)                                  Limitations on Payment by
Delivery of Common Stock.  If the Employee delivers Common Stock held by
the Employee (“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 Employee and the Company, an
equivalent number of Option Shares shall be subject to all restrictions and
limitations applicable to the Old Stock to the extent that the Employee paid
for the Option Shares by delivery of Old Stock, in addition to any restrictions
or limitations imposed by this Agreement. 
Notwithstanding the foregoing, the Employee may not pay any part of the
exercise price hereof by transferring Common Stock to the Company unless such
Common Stock has been owned by the Employee free of any substantial risk of
forfeiture for at least six months.

 

                                                8.                                      Method of Exercising
Option.  Subject to the terms and conditions of
this Agreement, this option may be exercised by written notice to the Company
at its principal executive office,  or to
such transfer agent as the Company shall designate.  Such notice shall state the election to
exercise this option and the number of Option Shares for 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 shares, and the Company shall
deliver a certificate or certificates representing such shares as soon as
practicable after the notice shall be received. 
Such certificate or certificates shall be registered in the name of the
person or persons so exercising this option (or, if this option shall be
exercised by the Employee and if the Employee shall so request in the notice
exercising this option, shall be registered in the name of the Employee and
another person jointly, with right of survivorship). In the event this option
shall be exercised, pursuant to Section 5 hereof, by any person or persons
other than the Employee, such notice shall be accompanied by appropriate proof
of the right of such person or persons to exercise this option.

 

                                                9.                                      Option Not Transferable. 
This
option is not transferable or assignable except by will or by the laws of
descent and distribution.  During the
Employee’s lifetime only the Employee can exercise this option.

 

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

 

                                                11.                               No Obligation to Continue
Employment.  Neither the Plan, this Agreement, nor the
grant of this option imposes any obligation on the Company or any Related
Corporation to continue the Employee in employment.

 

4

 

                                                12.                               No Rights as Stockholder
until Exercise.  The Employee shall have no rights as a
stockholder with respect to the Option Shares until such time as the Employee
has exercised this option by delivering a notice of exercise and has paid in
full the purchase price for the shares so exercised in accordance with
Section 8.  Except as is expressly
provided in the Plan with respect to certain changes in the capitalization of
the Company, no adjustment shall be made for dividends or similar rights for
which the record date is prior to such date of exercise.

 

                                                13.                               Capital Changes and
Business Successions.  The Plan contains provisions covering the
treatment of options in a number of contingencies such as stock splits and
mergers.  Provisions in the Plan for
adjustment with respect to stock subject to options and the related provisions
with respect to successors to the business of the Company are hereby made
applicable hereunder and are incorporated herein by reference.

 

                                                14.                               Early Disposition. 
The
Employee agrees to notify the Company in writing immediately after the Employee
transfers any Option Shares, if such transfer occurs on or before the later of
(a) the date two years after the date of this Agreement or (b) the
date one year after the date the Employee acquired such Option Shares.  The Employee also agrees to provide the
Company with any information concerning any such transfer required by the
Company for tax purposes.

 

                                                15.                               Withholding Taxes.  If the Company
or any Related Corporation in its discretion determines that it is obligated to
withhold any tax in connection with the exercise of this option, or in
connection with the transfer of, or the lapse of restrictions on, any Common
Stock or other property acquired pursuant to this option, the Employee hereby
agrees that the Company or any Related Corporation may withhold from the
Employee’s wages or other remuneration the appropriate amount of tax.  At the discretion of the Company or Related
Corporation, the amount required to be withheld may be withheld in cash from
such wages or other remuneration or in kind from the Common Stock or other
property otherwise deliverable to the Employee on exercise of this option.  The Employee further agrees that, if the
Company or any Related Corporation does not withhold an amount from the
Employee’s wages or other remuneration sufficient to satisfy the withholding
obligation of the Company or Related Corporation, the Employee will make
reimbursement on demand, in cash, for the amount underwithheld.

 

                                                16.                               Provision of  Documentation  to  Employee.  By signing this Agreement the Employee
acknowledges receipt of a copy of this Agreement and a copy of the Plan.

 

                                                17.                               Miscellaneous.

 

                                                (a)                                  Notices.  All notices
hereunder shall be in writing and shall be deemed given when sent by certified
or registered mail, postage prepaid, return receipt requested, to the address
set forth below.  The addresses for such
notices may be changed from time to time by written notice given in the manner
provided for herein.

 

                                                (b)                                  Entire Agreement;
Modification.  This Agreement constitutes the entire
agreement between the parties relative to the subject matter hereof, and
supersedes all proposals, written or oral, and all other communications between
the parties relating to

 

5

 

the subject matter of this Agreement.  This Agreement may be modified, amended or
rescinded only by a written agreement executed by both parties.

 

                                                (c)                                  Severability. 
The
invalidity, illegality or unenforceability of any provision of this Agreement
shall in no way affect the validity, legality or enforceability of any other
provision.

 

                                                (d)                                  Successors and Assigns. 
This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, subject to the limitations set
forth in Section 9 hereof.

 

                                                (e)                                  Governing Law.  This Agreement
shall be governed by and interpreted in accordance with the laws of the
Delaware, without giving effect to the
principles of the conflicts of laws thereof.

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]