Document:

Exhibit 10.2

Exhibit 10.2

GRANT NO.                     

HEALTHSPORT, INC.

2009 EQUITY INCENTIVE PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

Healthsport, Inc., a Delaware corporation (the “Company”), hereby grants an Option to purchase
shares of its Common Stock (the “Shares”) to the Optionee named below. The terms and conditions of
the Option are set forth in this cover sheet, in the attachment and in the Healthsport, Inc. 2009
Equity Incentive Plan (the “Plan”).

Date of Option Grant:                                         , [YEAR]

Name of Optionee:                                                             

Optionee’s Social Security Number:                     -                    -                    

Number of Shares Covered by Option:                                         

Exercise Price per Share: $                    .                    

Fair Market Value of a Share on Date of Option Grant: $                    .                    

Expiration Date:                                         , [YEAR] [DO NOT EXCEED TEN YEARS FROM GRANT]

Vesting Calculation Date:                                         , [YEAR]

Vesting Schedule:

Subject to all the terms of the attached Agreement, your right to purchase Shares under this
Option shall vest as to one-fourth (1/4) of the total number of Shares covered by this Option, as
shown above, on the one-year anniversary of the Vesting Calculation Date. Thereafter, the number
of Shares which you may purchase under this Option shall vest at the rate of one-forty-eighth
(1/48) per month on the 1st day of each of the thirty-six (36) months following the month of the
one-year anniversary of the Vesting Calculation Date. The resulting aggregate number of vested
Shares will be rounded to the nearest whole number. No Shares will vest after your Service has
terminated for any reason.

By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also enclosed.

	 	 	 	 	 	 	 
	Optionee:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Attachment

 

 

 

HEALTHSPORT, INC.

2009 EQUITY INCENTIVE PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

	 	 	 
	The Plan and Other Agreements

	 	The text of the Plan is
incorporated in this Agreement by
reference. Certain capitalized
terms used in this Agreement are
defined in the Plan.
	 
	 	 
	

	 	This Agreement and the Plan
constitute the entire
understanding between you and the
Company regarding this Option.
Any prior agreements, commitments
or negotiations concerning this
Option are superseded.
	 
	 	 
	Nonstatutory Stock Option

	 	This Option is not intended to be
an Incentive Stock Option under
section 422 of the Code and will
be interpreted accordingly.

	 
	 

	 	This Option is not intended to be
deferred compensation under
section 409A of the Code and will
be interpreted accordingly.
	 
	 	 
	Vesting

	 	This Option is only exercisable
before it expires and then only
with respect to the vested
portion of the Option. This
Option will vest according to the
Vesting Schedule on the attached
cover sheet.
	 
	 	 
	Term

	 	Your Option will expire in any
event at the close of business at
Company headquarters on the
Expiration Date, as shown on the
cover sheet. Your Option will
expire earlier if your Service
terminates, as described below.
	 
	 	 
	Termination — General

	 	If your Service terminates for
any reason (except in the case of
death or Disability of a
California Participant), other
than for Cause, then your Option
will expire at the close of
business at Company headquarters
on the date that is ninety (90)
days after your termination date.
	 
	 	 
	Termination for
Cause

	 	If your Service is terminated for
Cause or if you commit an act(s)
of Cause while this Option is
outstanding, as determined by the
Committee in its sole discretion,
then you shall immediately
forfeit all rights to your Option
and the Option shall immediately
expire.

 

2

 

	 	 	 
	Death or Disability California
Participants only

	 	If you are a California
Participant and your Service
terminates because of your death
or Disability, then your Option
will expire at the close of
business at Company headquarters
on the date six (6) months after
the date of your death or
Disability. During that six (6)
month period, your estate or
heirs may exercise the vested
portion of your Option.
	 
	 	 
	Leaves of Absence

	 	For purposes of this Option, your
Service does not terminate when
you go on a bona fide leave of
absence that was approved by the
Company in writing, if the terms
of the leave provide for
continued Service crediting, or
when continued Service crediting
is required by applicable law.
Your Service terminates in any
event when the approved leave
ends unless you immediately
return to active work.
	 
	 	 
	 

	 	The Company determines which
leaves count for this purpose,
and when your Service terminates
for all purposes under the Plan.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this
Option, you must notify the
Company by filing a “Notice of
Exercise” form at the address
given on the form. Your notice
must specify how many Shares you
wish to purchase. Your notice
must also specify how your Shares
should be registered (in your
name only or in your and your
spouse’s names as community
property or as joint tenants with
right of survivorship). The
notice will be effective when it
is received by the Company.
	 
	 	 
	 

	 	If someone else wants to exercise
this Option after your death,
that person must prove to the
Company’s satisfaction that he or
she is entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include
payment of the Exercise Price for
the Shares you are purchasing.
Payment may be made in one (or a
combination) of the following
forms:
	 
	 	 
	 

	 	•     Cash, your personal
check, a cashier’s check or a
money order.

	 
	 	 
	 

	 	•     Shares which have already
been owned by you for more than
six (6) months and which are
surrendered to the Company. The
Fair Market Value of the Shares,
determined as of the effective
date of the Option exercise, will
be applied to the Exercise Price.

	 
	 	 
	 

	 	•     To the extent a public
market for the Shares exists as
determined by the Company, by
Cashless Exercise through
delivery (on a form prescribed by
the Company) of an irrevocable
direction to a securities broker
to sell Shares and to deliver all
or part of the sale proceeds to
the Company in payment of the
aggregate Exercise Price.

 

3

 

	 	 	 
	Withholding Taxes

	 	You will be solely responsible
for payment of any and all
applicable taxes associated with
this Option.
	 
	 	 
	 

	 	You will not be allowed to
exercise this Option unless you
make acceptable arrangements to
pay any withholding or other
taxes that may be due as a result
of the Option exercise or sale of
Shares acquired under this
Option.
	 
	 	 
	Restrictions on Exercise and Resale

	 	By signing this Agreement, you
agree not to exercise this Option
or sell any Shares acquired under
this Option at a time when
applicable laws, regulations or
Company or underwriter trading
policies prohibit exercise, sale
or issuance of Shares. The
Company will not permit you to
exercise this Option if the
issuance of Shares at that time
would violate any law or
regulation. The Company shall
have the right to designate one
or more periods of time, each of
which shall not exceed one
hundred eighty (180) days in
length, during which this Option
shall not be exercisable, and any
Shares acquired under this Option
shall not be sold, if the Company
determines (in its sole
discretion) that such limitation
on exercise could in any way
facilitate a lessening of any
restriction on transfer pursuant
to the Securities Act or any
state securities laws with
respect to any issuance of
securities by the Company,
facilitate the registration or
qualification of any securities
by the Company under the
Securities Act or any state
securities laws, or facilitate
the perfection of any exemption
from the registration or
qualification requirements of the
Securities Act or any applicable
state securities laws for the
issuance or transfer of any
securities. Such limitation on
exercise shall not alter the
vesting schedule set forth in
this Agreement other than to
limit the periods during which
this Option shall be exercisable.
	 
	 	 
	 

	 	If the sale of Shares under the
Plan is not registered under the
Securities Act, but an exemption
is available which requires an
investment or other
representation, you shall
represent and agree at the time
of exercise that the Shares being
acquired upon exercise of this
Option are being acquired for
investment, and not with a view
to the sale or distribution
thereof, and shall make such
other representations as are
deemed necessary or appropriate
by the Company and its counsel.
	 
	 	 
	 

	 	You may also be required, as a
condition of exercise of this
Option, to enter into any Company
stockholder agreement or other
agreements that are applicable to
stockholders.

 

4

 

	 	 	 
	The Company’s
Right of First Refusal

	 	In the event that you propose to
sell, pledge or otherwise
transfer to a third party any
Shares acquired under this
Agreement, or any interest in
such Shares, the Company shall
have the “Right of First Refusal”
with respect to all (and not less
than all) of such Shares. If you
desire to transfer Shares
acquired under this Agreement,
you must give a written “Transfer
Notice” to the Company describing
fully the proposed transfer,
including the number of Shares
proposed to be transferred, the
proposed transfer price and the
name and address of the proposed
transferee.
	 
	 	 
	 

	 	The Transfer Notice shall be
signed both by you and by the
proposed new transferee and must
constitute a binding commitment
of both parties to the transfer
of the Shares. The Company shall
have the right to purchase all,
and not less than all, of the
Shares on the terms of the
proposal described in the
Transfer Notice (subject,
however, to any change in such
terms permitted in the next
paragraph) by delivery of a
notice of exercise of the Right
of First Refusal within thirty
(30) days after the date when the
Transfer Notice was received by
the Company. The Company’s
rights under this subsection
shall be freely assignable, in
whole or in part.
	 
	 	 
	 

	 	If the Company fails to exercise
its Right of First Refusal within
thirty (30) days after the date
when it received the Transfer
Notice, you may, not later than
ninety (90) days following
receipt of the Transfer Notice by
the Company, conclude a transfer
of the Shares subject to the
Transfer Notice on the terms and
conditions described in the
Transfer Notice. Any proposed
transfer on terms and conditions
different from those described in
the Transfer Notice, as well as
any subsequent proposed transfer
by you, shall again be subject to
the Right of First Refusal and
shall require compliance with the
procedure described in the
paragraph above. If the Company
exercises its Right of First
Refusal, the parties shall
consummate the sale of the Shares
on the terms set forth in the
Transfer Notice within sixty
(60) days after the date when the
Company received the Transfer
Notice (or within such longer
period as may have been specified
in the Transfer Notice);
provided, however, that in the
event the Transfer Notice
provided that payment for the
Shares was to be made in a form
other than lawful money paid at
the time of transfer, the Company
shall have the option of paying
for the Shares with
lawful money equal to the present
value of the consideration
described in the Transfer Notice.

 

5

 

	 	 	 
	 

	 	The Company’s Right of First
Refusal shall inure to the
benefit of its successors and
assigns and shall be binding upon
any transferee of the Shares.
	 
	 	 
	 

	 	The Company’s Right of First
Refusal shall terminate in the
event that Shares are listed on
an established stock exchange or
are quoted regularly on the OTC
Bulletin Board.
	 
	 	 
	Right of Repurchase

	 	Following your Termination Date
after termination of your Service
for any reason, the Company shall
have the right to purchase all of
those Shares that you have or
will acquire under this Option.
If the Company exercises its
right to purchase such Shares,
the purchase price shall be the
Fair Market Value of those Shares
on the date of purchase as
determined by the Board of
Directors and shall be paid in
cash. The Company will notify
you of its intention to purchase
such Shares, and will consummate
the purchase within any time
period established by applicable
law. The Company’s right of
repurchase shall inure to the
benefit of its successors and
assigns and shall be binding upon
any transferee of the Shares.
The Company’s rights under this
subsection shall be freely
assignable, in whole or in part.
The Company’s right of repurchase
shall terminate in the event that
the Shares are listed on an
established stock exchange or are
quoted regularly on the OTC
Bulletin Board.
	 
	 	 
	Transfer of Option

	 	Prior to your death, only you may
exercise this Option. You cannot
transfer, assign, alienate,
pledge, attach, sell, or encumber
this Option. If you attempt to
do any of these things, this
Option will immediately become
invalid. You may, however,
dispose of this Option in your
will or it may be transferred by
the laws of descent and
distribution. Regardless of any
marital property settlement
agreement, the Company is not
obligated to honor a notice of
exercise from your spouse, nor is
the Company obligated to
recognize your spouse’s interest
in your Option in any other way.
	 
	 	 
	Retention Rights

	 	Your Option or this Agreement
does not give you the right to be
retained by the Company (or any
Parent or any Subsidiaries or
Affiliates) in any capacity. The
Company (or any Parent and any
Subsidiaries or Affiliates)
reserves the right to terminate
your Service at any time and for
any reason.
	 
	 	 
	Stockholder Rights

	 	You, or your estate or heirs,
have no rights as a stockholder
of the Company until a
certificate for your Option’s
Shares has been issued. No
adjustments are made for
dividends or other rights if the
applicable record date occurs
before your stock certificate is
issued, except as described in
the Plan.

 

6

 

	 	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar
change in the Company stock, the
number of Shares covered by this
Option (rounded down to the
nearest whole number) and the
Exercise Price per Share may be
adjusted pursuant to the Plan.
Your Option shall be subject to
the terms of the agreement of
merger, liquidation or
reorganization in the event the
Company is subject to such
corporate activity.
	 
	 	 
	Legends

	 	All certificates representing the
Shares issued upon exercise of
this Option shall, where
applicable, have endorsed thereon
the following legends:
	 
	 	 
	 

	 	         “THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER
AND OPTIONS TO PURCHASE SUCH
SHARES SET FORTH IN AN AGREEMENT
BETWEEN THE COMPANY AND THE
REGISTERED HOLDER, OR HIS OR HER
PREDECESSOR IN INTEREST. A COPY
OF SUCH AGREEMENT IS ON FILE AT
THE PRINCIPAL OFFICE OF THE
COMPANY AND WILL BE FURNISHED
UPON WRITTEN REQUEST TO THE
SECRETARY OF THE COMPANY BY THE
HOLDER OF RECORD OF THE SHARES
REPRESENTED BY THIS CERTIFICATE.”

	 
	 	 
	 

	 	         “THE SHARES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE SOLD,
PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION
THEREOF UNDER SUCH ACT OR AN
OPINION OF COUNSEL, SATISFACTORY
TO THE COMPANY AND ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT
REQUIRED.”

	 
	 	 
	Applicable Law

	 	This Agreement will be
interpreted and enforced under
the laws of the State of
Delaware.

By
signing the cover sheet of this Agreement, you agree to all of the terms and 
conditions described above and in the Plan.

 

7

 

HEALTHSPORT, INC.

NOTICE OF EXERCISE OF NONSTATUTORY STOCK OPTION BY OPTIONEE

Healthsport, Inc.

6429 Independence Avenue

Woodland Hills, CA 91367

	 	 	 	 	 
	Re:	 	Exercise of Nonstatutory Stock Option to Purchase Shares of Company Stock
	 
	 	 	 	 
	 

	 	[PRINT NAME OF OPTIONEE]

	 	 

Pursuant to the Nonstatutory Stock Option Agreement dated                                                             
,                      between
Healthsport, Inc., a Delaware corporation, (the “Company”) and me, made pursuant to the 2009 Equity
Incentive Plan (the “Plan”), I hereby request to purchase                      shares (whole number only) of
common stock of the Company (the “Shares”), at the exercise price of $                     per Share. I am
hereby making full payment of the aggregate exercise price by one or more of the following forms of
payment in accordance with the whole number percentages that I have provided below. I further
understand and agree that I will timely satisfy any and all applicable tax withholding obligations
as a condition of this Option exercise.

	 	 	 	 	 	 	 
	Percentage	 	 	 	 	 
	of Payment	 	 	 	 	Form of Payment As Provided In the Nonstatutory Stock Option Agreement
	 	 	 	 	 
	 	 
	 	                    	%	 	 
	 	Cash/My Personal
Check/Cashier’s Check/Money Order (payable to “Healthsport, Inc.”)
	 	 	 	 	 
	 	 
	 	                    	%	 	 
	 	Surrender of Vested Shares (Valued
At Their Fair Market Value) Owned By Me For More Than Six (6) Months
	 	100	%	 	 
	 	 

	 	 	 	 	 
	Check one:

	 	o
	 	The Shares certificate is to be issued and registered in my name only.
	 
	 	 	 	 
	 

	 	o
	 	The Shares certificate is to be issued and registered in my name and
my spouse’s name.
	 
	 	 	 	 
	 

	 	 	 	[PRINT SPOUSE’S NAME, IF CHECKING SECOND BOX]

	 
	 	 	 	 
	 

	 	 	 	Check one (if checked second box above):
	 
	 	 	 	 
	 

	 	 	 	o Community Property or o Joint Tenants With Right of Survivorship

I acknowledge that I have received, understand and continue to be bound by all of the terms
and conditions set forth in the Plan and in the Nonstatutory Stock Option Agreement.

Dated:                                         

	 	 	 	 	 	 	 
	 

(Optionee’s Signature)

	 	 	 	
 

(Spouse’s Signature)**
	 	 

**   Spouse
must sign this Notice of Exercise if listed above.

	 	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

(Full Address)

	 	 	 	 

(Full Address)
	 	 

	 	 	 
	*	 	THIS NOTICE OF EXERCISE MAY BE REVISED BY THE COMPANY AT ANY TIME WITHOUT NOTICE.

 

8Exhibit 10.3

Exhibit 10.3

HEALTHSPORT, INC.

2009 EQUITY INCENTIVE PLAN

STOCK AWARD AGREEMENT

Healthsport, Inc., a Delaware corporation, (the “Company”), hereby awards a Stock Award of
restricted stock (the “Restricted Stock”) to the Participant named below. The terms and conditions
of the Stock Award are set forth in this cover sheet and the attached Stock Award Agreement
(collectively, the “Agreement”) and in the 2009 Equity Incentive Plan (the “Plan”). The text of
the Plan is incorporated in the Agreement by this reference.

	 	 	 	 	 
	Date of Award:
	 	 	 	 
	 
	 	 	 	 
	Name of Participant:
	 	 	 	 
	 
	 	 	 	 
	Number of Shares of Restricted Stock Awarded:
	 	 	 	 
	 
	 	 	 	 
	Amount
Paid by Participant for the Shares of Restricted Stock Awarded:
$______
	 	 	 	 
	 
	 	 	 	 
	Aggregate Fair Market Value of Restricted Stock on Date of Award: $______
	 	 	 	 

Vesting Calculation Date:                                         , 2009

Vesting Schedule:

As long as you render continuous Service to the Company (or its Parent, Subsidiary or Affiliate),
you will become vested as to  _____% of the total number of Shares of Restricted Stock awarded (rounded
down to the nearest whole number), as shown above on the cover sheet, on each of the dates listed
below (the “Vesting Dates”):

	 	•	 	[DATE 1]
	 
	 	•	 	[DATE 2]
	 
	 	•	 	[DATE 3]
	 
	 	•	 	[DATE 4]
	 
	 	•	 	[DATE 5]

In the event that your Service to the Company (or its Parent, Subsidiary or Affiliate) ceases prior
to any of the Vesting Dates, you will forfeit to the Company without consideration all of the
unvested Shares subject to this Award.

By signing this cover sheet, you agree to all terms and conditions described in the attached
Stock Award Agreement and in the Plan. You specifically acknowledge that you have carefully
read the section entitled “Code Section 83(b) Election” and the attachment entitled “Section
83(b) Elections” and you further acknowledge that you are solely responsible for filing any
Code Section 83(b) election, and that such election must be filed within thirty (30) days
after the Date of Award in order to be effective. You are also acknowledging receipt of this
Agreement and a copy of the Plan.

	 	 	 	 	 	 	 
	Company:

	 	 	 	 	 	Participant:
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	Its:

	 	 

	 	 
	 	 

	 

	 	 	 	 	 	 

 

 -1-

 

Attachments

 

 -2-

 

HEALTHSPORT, INC.

2009 EQUITY INCENTIVE PLAN

STOCK AWARD AGREEMENT

	 	 	 
	The Plan and Other Agreements

	 	The text of the Plan is incorporated
in this Agreement by this reference.
You and the Company agree to
execute such further instruments and
to take such further action as may
reasonably be necessary to carry out
the intent of this Agreement.
Unless otherwise defined in this
Agreement, certain capitalized terms
used in this Agreement are defined
in the Plan.
	 
	 	 
	 

	 	This Agreement, the attached
Exhibits and the Plan constitute the
entire understanding between you and
the Company regarding this Award of
Restricted Stock. Any prior
agreements, commitments or
negotiations are superseded.
	 
	 	 
	Award of Restricted Stock

	 	The Company awards you the number of
shares of Restricted Stock shown on
the cover sheet of this Agreement.
The Award is subject to the terms
and conditions of this Agreement and
the Plan. This Award is not
intended to constitute a
nonqualified deferred compensation
plan within the meaning of section
409A of the Code and will be
interpreted accordingly. You may
also be required, as a condition of
this Award, to enter into any
Company stockholder agreement or
other agreements that are applicable
to stockholders.
	 
	 	 
	Vesting

	 	This Award will vest according to
the Vesting Schedule set forth on
the attached cover sheet.
	 
	 	 
	Escrow

	 	The certificate(s) for the
Restricted Stock shall be deposited
in escrow with the Secretary of the
Company (or his/her designee) to be
held in accordance with the
provisions of this paragraph. Each
deposited certificate shall be
accompanied by a duly executed
Assignment Separate from Certificate
in the form attached hereto as
Exhibit A. The deposited
certificates shall remain in escrow
until such time as the certificates
are to be released or otherwise
surrendered for cancellation as
discussed below. Upon delivery of
the certificates to the Company, you
shall be issued an instrument of
deposit acknowledging the number of
Shares of Restricted Stock delivered
in escrow to the Secretary of the
Company.
	 
	 	 
	 

	 	All regular cash dividends, if any,
on the Restricted Stock shall be
paid directly to you and shall not
be held in escrow.
	 
	 	 
	 

	 	The Restricted Stock held in escrow
hereunder shall be subject to the
following terms and conditions
relating to its release from escrow
or its surrender to the Company,
provided, however, that the minimum
number of shares released to you in
any individual release of share
certificates must be at least
twenty-five (25) Shares (unless the
release represents your final
release of Share certificates from
escrow):
	 
	 	 
	 

	 	•     A portion of the Restricted
Stock shall be released from escrow
and the Share certificates delivered
to you when (i) that portion of the
Restricted Stock has vested
according to the Vesting Schedule,
this Agreement and the Plan, (ii)
that portion of the Restricted Stock
has been deemed to be Certified
Shares, and (iii) you request such
delivery. Only Certified Shares
that have satisfied all of the
vesting conditions of this Agreement
and the Plan shall be released from
escrow. Upon termination of your
continuous Service for any reason
(and subject to any provisions of
this Agreement or the Plan
specifically related to vesting upon
such termination), all the
Restricted Stock shall be
immediately surrendered to the
Company except for the Certified
Shares that have satisfied all of
the vesting conditions of this
Agreement and the Plan as of the
date of termination.

 

 -3-

 

	 	 	 
	Change in Control 

	 	Notwithstanding anything to the
contrary in this Agreement or the
Plan, in the event of a Change in
Control during your Service, this
Award and all the Restricted Stock
shall vest as of immediately before
such Change in Control.
	 
	 	 
	No Assignment

	 	The Shares subject to this Award
shall not be sold, anticipated,
assigned, attached, garnished,
optioned, transferred or made
subject to any creditor’s process,
whether voluntarily, involuntarily
or by operation of law. However,
this shall not preclude a transfer
of vested Certified Shares by will
or by the laws of descent and
distribution. In addition, pursuant
to Company procedures, you may
designate a beneficiary who will
receive any outstanding vested
Certified Shares in the event of
your death.
	 
	 	 
	The Company’s
Right of First Refusal

	 	In the event that you propose to
sell, pledge or otherwise transfer
to a third party any Shares acquired
under this Agreement, or any
interest in such Shares, the Company
shall have the “Right of First
Refusal” with respect to all (and
not less than all) of such Shares.
If you desire to transfer Shares
acquired under this Agreement, you
must give a written “Transfer
Notice” to the Company describing
fully the proposed transfer,
including the number of Shares
proposed to be transferred, the
proposed transfer price and the name
and address of the proposed
transferee.
	 
	 	 
	 

	 	The Transfer Notice shall be signed
both by you and by the proposed new
transferee and must constitute a
binding commitment of both parties
to the transfer of the Shares. The
Company shall have the right to
purchase all, and not less than all,
of the Shares on the terms of the
proposal described in the Transfer
Notice (subject, however, to any
change in such terms permitted in
the next paragraph) by delivery of a
notice of exercise of the Right of
First Refusal within thirty (30)
days after the date when the
Transfer Notice was received by the
Company. The Company’s rights under
this subsection shall be freely
assignable, in whole or in part.

If the Company fails to exercise its
Right of First Refusal within thirty
(30) days after the date when it
received the Transfer Notice, you
may, not later than ninety (90) days
following receipt of the Transfer
Notice by the Company, conclude a
transfer of the Shares subject to
the Transfer Notice on the terms and
conditions described in the Transfer
Notice. Any proposed transfer on
terms and conditions different from
those described in the Transfer
Notice, as well as any subsequent
proposed transfer by you, shall
again be subject to the Right of
First Refusal and shall require
compliance with the procedure
described in the paragraph above. If the Company exercises its Right
of First Refusal, the parties shall
consummate the sale of the Shares on
the terms set forth in the Transfer
Notice within sixty (60) days after
the date when the Company received
the Transfer Notice (or within such
longer period as may have been
specified in the Transfer Notice);
provided, however, that in the event
the Transfer Notice provided that
payment for the Shares was to be
made in a form other than lawful
money paid at the time of transfer,
the Company shall have the option of
paying for the Shares with lawful
money equal to the present value of
the consideration described in the
Transfer Notice.

 

 -4-

 

	 	 	 
	 

	 	The Company’s Right of First Refusal
shall inure to the benefit of its successors and assigns and shall be
binding upon any transferee of the Shares.
	 
	 	 
	 

	 	The Company’s Right of First Refusal
shall terminate in the event that
Shares are listed on an established
stock exchange or are quoted
regularly on the OTC Bulletin Board.
	 
	 	 
	Right of Repurchase

	 	Following your Termination Date
after termination of your Service
for any reason, the Company shall
have the right to purchase all of
those Shares that you have acquired
under this Award. If the Company
exercises its right to purchase such
Shares, the purchase price shall be
the Fair Market Value of those
Shares on the date of purchase as
determined by the Board of Directors
and shall be paid in cash. The
Company will notify you of its
intention to purchase such Shares,
and will consummate the purchase
within any time period established
by applicable law. The Company’s
Right of Repurchase shall inure to
the benefit of its successors and
assigns and shall be binding upon
any transferee of the Shares. The
Company’s rights under this
subsection shall be freely
assignable, in whole or in part.
The Company’s right of repurchase
shall terminate in the event that
the Shares are listed on an
established stock exchange or are
quoted regularly on the OTC Bulletin
Board.
	 
	 	 
	Code Section 83(b) Election

	 	You represent and warrant that you
understand the Federal, state and
local income tax consequences of the
granting of this Restricted Stock.
Under Section 83 of the Code, the
Fair Market Value of the Restricted
Stock on the date any forfeiture
restrictions applicable to such
Restricted Stock lapse will be
reportable as ordinary income at
that time. For this purpose,
“forfeiture restrictions” include
surrender to the Company of unvested
Restricted Stock as described above.
You may voluntarily elect to be
taxed at the time the Restricted
Stock is acquired to the extent that
the Fair Market Value of the
Restricted Stock exceeds the amount
of consideration paid by you (if
any) for such Restricted Stock at
that time rather than when such
Restricted Stock ceases to be
subject to such forfeiture
restrictions, by filing an election
under Section 83(b) of the Code with
the Internal Revenue Service within
thirty (30) days after the Date of
Award. A form for making this
election is attached as Exhibit B
hereto. Failure to make this filing
within the thirty (30) day period
will result in the recognition of
ordinary income by you as the
forfeiture restrictions lapse. YOU
ACKNOWLEDGE THAT IT IS YOUR SOLE
RESPONSIBILITY, AND NOT THE
COMPANY’S, TO FILE A TIMELY ELECTION
UNDER CODE SECTION 83(b), EVEN IF
YOU REQUEST THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THIS FILING
ON YOUR BEHALF. MOREOVER, YOU ARE
RELYING SOLELY ON YOUR OWN ADVISORS
WITH RESPECT TO THE DECISION AS TO
WHETHER OR NOT TO FILE A CODE
SECTION 83(b) ELECTION.

 

-5-

 

	 	 	 
	Leaves of Absence

	 	For purposes of this Agreement,
while you are a common-law employee,
your Service does not terminate when
you go on a bona fide leave of
absence that was approved by the
Company (or its Parent, Subsidiary
or Affiliate) in writing, if the
terms of the leave provide for
continued Service crediting, or when
continued Service crediting is
required by applicable law. Your
Service terminates in any event when
the approved leave ends, unless you
immediately return to active work.

The Company determines which leaves
count for this purpose, and when
your Service terminates for all
purposes under the Plan.
	 
	 	 
	Voting and Other Rights

	 	Subject to the terms of this
Agreement, you shall have all the
rights and privileges of a
stockholder of the Company while the
Restricted Stock is held in escrow,
including the right to vote and to
receive dividends (if any).
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Company stock, the number of
outstanding Shares of Restricted
Stock covered by this Award may be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan.
	 
	 	 
	Restrictions on 

Issuance

	 	The Company will not issue any
Restricted Stock or Shares if the
issuance of such Restricted Stock or
Shares at that time would violate
any law or regulation.
	 
	 	 
	Taxes and Withholding

	 	You will be solely responsible for
payment of any and all applicable
taxes associated with this Award.

	 
	 

	 	
The delivery to you of any Shares
will not be permitted unless and
until you have satisfied any
withholding or other taxes that may
be due.
	 
	 	 
	Restrictions on Resale

	 	By signing this Agreement, you agree
not to (i) sell (or transfer or
assign) any Restricted Stock prior
to its vesting and its designation
as Certified Shares, or (ii) sell
(or transfer or assign) any Shares
acquired under this Award at a time
when applicable laws, regulations or
Company or underwriter trading
policies prohibit sale.
	 
	 	 
	 

	 	If the sale of Shares acquired under
this Award is not registered under
the Securities Act of 1933, but an
exemption is available which
requires an investment
representation or other
representation and warranty, you
shall represent and agree that the
Shares being acquired are being
acquired for investment, and not
with a view to the sale or
distribution thereof, and shall make
such other representations and
warranties as are deemed necessary
or appropriate by the Company and
its counsel.
	 
	 	 
	Legends

	 	All certificates representing the
Common Stock issued under this Award
may, where applicable, have endorsed
thereon the following legend and any
other legend the Company determines
appropriate:
	 
	 	 
	 

	 	“THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AND OPTIONS
TO PURCHASE SUCH SHARES SET FORTH IN
AN AGREEMENT BETWEEN THE COMPANY AND
THE REGISTERED HOLDER, OR HIS OR HER
PREDECESSOR IN INTEREST. A COPY OF
SUCH AGREEMENT IS ON FILE AT THE
PRINCIPAL OFFICE OF THE COMPANY AND
WILL BE FURNISHED UPON WRITTEN
REQUEST TO THE SECRETARY OF THE
COMPANY BY THE HOLDER OF RECORD OF
THE SHARES REPRESENTED BY THIS
CERTIFICATE.”

 

-6-

 

	 	 	 
	 

	 	“THE SHARES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, PLEDGED, OR
OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION THEREOF UNDER
SUCH ACT OR AN OPINION OF COUNSEL,
SATISFACTORY TO THE COMPANY AND ITS
COUNSEL, THAT SUCH REGISTRATION IS
NOT REQUIRED.”
	 
	 	 
	No Retention Rights

	 	This Agreement is not an employment
agreement and does not give you the
right to be retained by the Company
(or its Parents, Subsidiaries or
affiliates) and you agree that you
are an employee-at-will. The
Company (or its Parents,
Subsidiaries or affiliates) reserves
the right to terminate your Service
at any time and for any reason.
	 
	 	 
	Notice

	 	Any notice to be given or delivered
to the Company relating to this
Agreement shall be in writing and
addressed to the Company at its
principal corporate offices. Any
notice to be given or delivered to
you relating to this Agreement shall
be in writing and addressed to you
at such address of which you advise
the Company in writing. All notices
shall be deemed effective upon
personal delivery or upon deposit in
the U.S. mail, postage prepaid and
properly addressed to the party to
be notified.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware.

 

In consideration of the Company granting you this Restricted Stock, please acknowledge your agreement to

fully comply with all of the terms and provisions contained herein by signing this Agreement in the space

provided above and returning it promptly to:

HEALTHSPORT, INC.

Attention: [          ], Secretary

 

-7-

 

EXHIBIT A

ASSIGNMENT SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED and pursuant to that certain Stock Award Agreement dated as of
[_______], the undersigned hereby sells, assigns and transfers unto [_________]
shares of the Common Stock of Healthsport, Inc., a Delaware corporation, standing in the
undersigned’s name on the books of said corporation represented by certificate No. 
 __________,
herewith, and does hereby irrevocably constitute and appoint
 ________ 

attorney-in-fact to
transfer the said stock on the books of the said corporation with full power of substitution in the
premises.

Dated: [Month] [Day], 20___

	 	 	 	 	 
	 

	 	 

	 	 

 

-1-

 

EXHIBIT B

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue
Code with respect to the property described below and supplies the following information in
accordance with the regulations promulgated thereunder:

	1.	 	The name, address and social security number of the undersigned:

	 	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Social Security No.:
	 	 	 	 
	 

	 	 

	 	 

	2.	 	Description of property with respect to which the election is being made:
	 
	 	 	
 _________ 

shares of common stock of Healthsport, Inc. (the “Company”).

	3.	 	The date on which the property was transferred is
 _________, [YEAR].

	4.	 	The taxable year to which this election relates is calendar year [YEAR].

	5.	 	Nature of restrictions to which the property is subject:

The shares of stock are subject to the provisions of a Stock Award Agreement (the
“Agreement”) between the undersigned and the Company. The shares of stock are subject to
forfeiture under the terms of the Agreement.

	6.	 	The Fair Market Value of the property at the time of transfer (determined without regard to
any lapse restriction) was $_____ per share, [for a total of $__________.]

	7.	 	The amount paid by taxpayer for the property was $__________.

	8.	 	A copy of this statement has been furnished to the Company.

Dated:
 ____________, [YEAR].

	 	 	 	 	 
	 

	 	 

[Taxpayer’s Name]
	 	 

 

-1-

 

SECTION 83(b) ELECTIONS

This memorandum briefly describes certain aspects of Internal Revenue Code section 83 and
section 83(b) elections as they exist under current law. A form of election is attached. The
effect of making the election is that it permits the employee or consultant to include in his or
her gross income, in his or her taxable year in which unvested shares are transferred, the excess,
if any, of (i) the Fair Market Value of such shares at the time of transfer (determined without
regard to restrictions other than those which will never lapse), over (ii) the amount (if any) paid
for such shares.

By making the section 83(b) election, subsequent appreciation in the value of the shares
generally will be taxed as a capital gain, rather than as compensation. Also, appreciation that
occurs after the transfer but prior to vesting will not be taxed until the shares are sold.
Finally, such subsequent appreciation may be deferred if transfer occurs in a tax-free
reorganization or may go untaxed altogether if a stepped-up basis results from transfer by reason
of death. However, if the shares are forfeited the employees or consultants who made the election
can only deduct a loss to the extent the amount received (if any) on forfeiture is less than the
amount paid (if any) for such shares. Thus, such employees or consultants are precluded from
recovering the tax paid with respect to any reported compensation income. Moreover, any loss
recognized will generally be a capital loss which can only offset capital gains plus $3,000 of
ordinary income ($1,500 in the case of married individuals filing a separate return).

In the absence of an election, the employee or consultant who receives unvested shares does
not recognize any income until such shares vest. In the taxable year in which any shares vest such
employee or consultant will recognize compensation income equal to the excess, if any, of (i) the
Fair Market Value of the vested shares on the vesting date, over (ii) the amount (if any) paid for
such shares. If the shares are forfeited the employee or consultant will recognize ordinary loss
to the extent the amount received on forfeiture is less than the amount paid for such shares.

The election must be made not later than 30 days after the date of transfer of the shares to
the employee or consultant. The election is to be filed with the Internal Revenue Service Center
with which the employee or consultant files his or her return. In general, the election is
irrevocable.

Each filing should be made by certified mail with the sender’s receipt postmarked at the time
of mailing to establish proof of filing. Also, one copy of the election should be filed with the
company. Finally, one copy of the election must be submitted with the employee’s federal income
tax returns for the taxable year in which the shares are transferred. Although the election must
be made within 30 days of the date of transfer of the shares, the tax, if any, arising out of the
election need not be paid until the employee or consultant files his or her tax return for the tax
year of transfer (subject to the withholding rules discussed below).

The company should be entitled to a tax deduction for federal income tax purposes equal to the
amount, if any, included in the gross income of the employees or consultants receiving the shares.
Any deduction is allowed for the taxable year of the company in which or with which ends the
taxable year in which the amount was included in the gross income of the employee or consultant.

While it may be desirable from a tax standpoint for employees and consultants to make an 83(b)
election at the time unvested shares are acquired, the matter should be reviewed by each employee
or consultant with his or her tax adviser.

The foregoing is intended only as a general summary of the tax consequences of section 83(b)
elections.

 

-2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]