Document:

EX-10.1

    Exhibit
      10.1

    

    RESTRICTED
      STOCK AGREEMENT

    

    

    THIS
      RESTRICTED STOCK AGREEMENT, made and entered into as of the ____ day
      of
      ___________, 2007, by and between Smart Online, Inc., a Delaware corporation
      (the “Company), and __________________________ (the “Employee”).

     

    WHEREAS,
      in consideration of the services of the Employee, the Company is desirous of
      giving the Employee shares of common stock of the Company under the Company’s
      2004 Equity Compensation Plan (the “Plan”) (all capitalized terms not otherwise
      defined herein shall have the meaning set forth in the Plan), subject to the
      restrictions set forth below.

    

    NOW,
      THEREFORE, in consideration of the foregoing, of the mutual promises set forth
      below and of other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the parties hereto agree as
      follows:

    

    1. Restricted
      Stock Award.
      The
      Company shall issue _____________ (_______) shares of the common stock of the
      Company (the “Securities”) to the Employee, as part of the Employee’s
      compensation. The Securities are subject to the restrictions set forth in
      Section 4 below.

    

    2.
      Employee
      Representations.
      The
      Employee hereby acknowledges and represents the following:

    

    (a) Compensation.
      The
      Employee acknowledges that the Securities are part of his or her compensation
      from the Company.

    

    (b) Taxes.
      The
      Employee has not relied upon the Company with respect to any tax consequences
      related to the acquisition or disposition of the Securities. The Employee
      acknowledges that the Employee may incur a substantial tax liability. The
      Employee assumes full responsibility for all such consequences and the filing
      of
      all tax returns and elections the Employee may be required or find desirable
      to
      file in connection therewith. In the event any valuation of the Securities
      purchased pursuant to its exercise must be made under federal or state tax
      laws
      and such valuation affects any return or election of the Company, the Employee
      agrees that the Company may determine such value and that the Employee will
      observe any determination so made by the Company in all returns and elections
      filed by the Employee. In the event the Company is required by applicable law
      to
      collect any withholding, payroll or similar taxes by reason of the grant of
      the
      Securities, the Employee agrees that the Company may withhold such taxes from
      any monetary amounts otherwise payable by the Company to the Employee and that,
      if such amounts are insufficient to cover the taxes required to be collected
      by
      the Company, the Employee will pay to the Company such additional amounts as
      are
      required.

    

    (c) Compliance
      with Securities Laws.
      The
      Employee hereby agrees to comply with any plan, policy or other document of
      the
      Company approved by the Board of

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Directors
      of the Company to ensure compliance with securities laws, rules and regulations
      both prior to the Termination of Service of the Employee and for one (1) year
      thereafter. The Company may impose stop transfer restrictions with respect
      to
      the Securities to enforce this provision.

    

    (d) Legends.
      Each
      certificate representing Securities shall also bear any legend required by
      any
      applicable state securities law or by any other agreement to which the holder
      thereof is a party or by which the holder thereof is bound, including the
      provisions of any existing “lock-up” or similar agreements between the Employee
      and the Company, and including the following legend as required in Section
      4,
      below:

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ASSIGNED, CONVEYED
      OR
      PLEDGED ONLY UPON COMPLIANCE WITH THE TERMS AND CONDITIONS OF A RESTRICTED
      STOCK
      AGREEMENT, AS THE SAME MAY BE AMENDED OR REPLACED FROM TIME TO TIME, A COPY
      OF
      WHICH IS ON FILE WITH, AND AVAILABLE FOR INSPECTION AT THE OFFICES OF THE
      SECRETARY OF THE CORPORATION.

     

    3. Condition
      to Issuance.
      The
      representations, warranties, understandings, acknowledgments and agreements
      in
      this Agreement are true and accurate as of the date hereof, shall be true and
      accurate as of the date of the issuance of the Securities by the Company and
      shall survive thereafter.

    

    

    4. Restrictions.
      The
      Securities described above shall be subject to the following
      restrictions:

    

    (a) Restriction
      Period; Lapse of Restriction.
      The
      Employee agrees not to transfer, assign or sell the Securities, without the
      express written consent of the Company, which may be granted or withheld in
      the
      sole discretion of the Company. This restriction shall expire and cease to
      be of
      any effect with respect to the number of shares equal to
      _________________________________________________________________________________________________________________________________________;
      provided
      that
      this
      restriction shall lapse with respect to an increment as specified only if the
      Employee is employed by the Company on the specified date for such increment.
      Shares representing the Securities shall bear a legend to such
      effect.

    

    The
      schedule set forth above is cumulative, so that the Securities as to which
      the
      restriction has lapsed on and after a date indicated by the schedule may be
      transferred, assigned, or sold at any subsequent date. 

    

    (b) Acceleration
      of Lapse of Restriction.
      Upon a
      Change of Control or Corporate Reorganization, as defined below, the restriction
      set forth in Section 5(a) shall accelerate so as to lapse as to all of the
      Securities to which the restriction applies on the date of such
      event.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (i) A
“Change
      in Control” shall be deemed to have occurred if, after the class of stock then
      subject to this Agreement becomes publicly traded, (1) the direct or indirect
      beneficial ownership (within the meaning of Section 13(d) of the Act and
      Regulation 13D thereunder) of fifty percent (50%) or more of the class of
      securities then subject to this Agreement is acquired or becomes held by any
      person or group of persons (within the meaning of Section 13(d)(3) of the Act),
      but excluding the Company and any employee benefit plan sponsored or maintained
      by the Company, or (2) assets or earning power constituting more than fifty
      percent (50%) of the assets or earning power of the Company and its subsidiaries
      (taken as a whole) is sold, mortgaged, leased or otherwise transferred, in
      one
      or more transactions not in the ordinary course of the Company’s business, to
      any such person or group of persons; provided, however, that a Change in Control
      shall not be deemed to have occurred upon an investment by one or more venture
      capital funds, Small Business Investment Companies (as defined in the Small
      Business Investment Act of 1958, as amended) or similar financial investors.
      For
      the purposes of this Agreement, the class of stock then subject to this
      Agreement shall be deemed to be “publicly traded” if such stock is listed or
      admitted to unlisted trading privileges on a national securities exchange or
      as
      to which sales or bid and offer quotations are reported in the automated system
      operated by the National Association of Securities Dealers, Inc. 

    

    (ii) A
      “Corporate Reorganization” means the happening of any one (1) of the following
      events: (1) the dissolution or liquidation of the Company; (2) a capital
      reorganization, merger or consolidation involving the Company, unless (A) the
      transaction involves only the Company and one or more of the Company’s parent
      corporation and wholly-owned (excluding interests held by employees, officers
      and directors) subsidiaries; or (B) the shareholders who had the power to elect
      a majority of the board of directors of the Company immediately prior to the
      transaction have the power to elect a majority of the board of directors of
      the
      surviving entity immediately following the transaction; (3) the sale of all
      or
      substantially all of the assets of the Company to another corporation, person
      or
      business entity; or (4) an acquisition of Company stock, unless the shareholders
      who had the power to elect a majority of the board of directors of the Company
      immediately prior to the acquisition have the power to elect a majority of
      the
      board of directors of the Company immediately following the transaction;
      provided, however, that a Corporate Reorganization shall not be deemed to have
      occurred upon an investment by one or more venture capital funds, Small Business
      Investment Companies (as defined in the Small Business Investment Act of 1958,
      as amended) or similar financial investors.

    

    5. Effect
      of Termination of Service.
      The
      restriction on the Securities shall lapse as specified in Section 4 above until
      the Termination of Service of the Employee for reasons other than death,
      Disability or Retirement. Pursuant to Section 7.6 of the Plan, where the
      Termination of Service is for death, Disability or Retirement, than the
      Committee shall determine, in its sole discretion, whether to waive any
      remaining restriction.

    

    All
      shares of the Securities still subject to the restriction set forth in Section
      5
      shall be forfeited by the Employee and reacquired by the Company on such date.
      Upon such date, the Employee shall have no further rights to any Securities
      to
      which the restriction has not lapsed.

     

    6. Rights
      as Stockholder.
      The
      Employee shall have all rights as a stockholder with respect to the Securities;
      provided,
      however,
      any
      dividends or distributions on the Securities shall be

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    automatically
      deferred and reinvested as restricted Securities subject to the same
      restrictions set forth in this Agreement.

    

    7. Incorporation
      of the Plan.
      The
      terms and conditions included in the Plan, the receipt of a copy of which
      Participant hereby acknowledges by execution of this Agreement, are incorporated
      by reference herein, and to the extent that any conflict may exist between
      any
      term or provision of this Agreement and any term or provision of the Plan,
      such
      term or provision of the Plan shall control.

    

    8. Governing
      Law.
      This
      Agreement shall be enforced, governed and construed in all respects in
      accordance with the laws of the State of Delaware, as such laws are applied
      by
      Delaware courts to agreements entered into and to be performed in Delaware,
      and
      shall be binding upon the Employee, the Employee’s heirs, estate, legal
      representatives, successors and assigns and shall inure to the benefit of the
      Company and its successors and assigns.

    

    9. Miscellaneous.
      This
      Agreement and the Plan constitute the entire agreement among the parties hereto
      with respect to the subject matter hereof and supersedes any and all prior
      or
      contemporaneous representations, warranties, agreements and understandings
      in
      connection therewith, other than any existing “lock-up” or similar agreements
      between the parties which by their terms would apply to the Securities. This
      Agreement may be amended only by a writing executed by all parties hereto.
      This
      Agreement may be executed in one or more counterparts.

    

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, Employee has executed this Restricted Stock Agreement effective
      as of the date first written above.

    

    

    
      	
              EMPLOYEE:

            	
              SMART
                ONLINE, INC.

            
	 	 
	 	 
	
              By:________________________

            	
              By:_________________________

            
	 	
              Name:
                ______________________

            
	 	
              Title:
                _______________________

            
	
              Print
                Name:__________________

            	 
	
              Address:_____________________

            	 
	
              _____________________

            	 
	
              _____________________

            	 

    

     

     

    
      
         

      

        -5-EX 10.5

    Exhibit
      10.5

     

     

    SMART
      ONLINE, INC.

     

    Equity
      Award Program

     

    (Approved,
      November 2007)

    

    The
      Equity Award Program of Smart Online, Inc. (the “Company”) is designed to
      encourage the Company’s employees to focus on its long-term performance and
      provide an opportunity for employees to increase their stake in the Company.
      All
      employees of the Company, including named executive officers, would be eligible
      to receive annual equity awards. 

    

    The
      equity pool of shares of restricted stock available for award under the program
      is equal to the number of shares resulting from subtracting from 1,000,000
      shares the following: (1) the number of outstanding shares of restricted stock
      as of December 12, 2007, and (2) the number of shares issuable upon exercise
      or
      exchange of outstanding options. The resulting pool of restricted shares is
      to
      be distributed over the next five years in equal annual amounts. The chief
      executive officer of the Company will provide recommendations for such
      restricted stock awards at the board of director’s meeting held during the
      fourth quarter of each fiscal year, with awards to be granted as of January
      1 of
      the following fiscal year. The restrictions on the shares of restricted stock
      granted to an employee would lapse as to 50% of such shares on the second
      anniversary of the grant date, as to 25% of such shares on the third anniversary
      of the grant date, and as to 25% of such shares on the fourth anniversary of
      the
      grant date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]