Document:

ex_10-1.htm

 

 

EXHIBIT 10.1

 

 

CYBERONICS, INC. 2009 STOCK PLAN

STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in CYBERONICS, INC. 2009 STOCK PLAN (the “Plan”) shall have the same defined meanings in this Option Agreement.

I.           NOTICE OF STOCK OPTION GRANT

[Name] (“Optionee”)

You have been granted an option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows:

	
Date of Grant

	  
	  	  
	
Exercise Price per Share

	
$

	  	  
	
Total Number of Shares Granted

	
#

	  	  
	
Type of Grant:

	
Nonstatutory Stock Option

	  	  
	
Expiration Date:

	
Tenth Anniversary of Date of Grant

	  	  
	
Vesting Schedule:

	
Twenty-five percent (25%) of the Shares subject to the Option shall vest each of the first four anniversaries of the Date of Grant, subject to the Optionee continuing to be a Service Provider on such dates, until the Option is fully vested.

	  	  
	
Termination Period:

	
To the extent vested on Optionee’s termination of service, this Option may be exercised for ninety (90) days after Optionee ceases to be a Service Provider and shall then terminate.  Upon the death or Disability of the Optionee while a Service Provider, this Option shall be fully vested and may be exercised during the one-year after Optionee ceases to be a Service Provider and shall then terminate on the first anniversary of such termination of service.  However, in no event may this Option be exercised after the Expiration Date as provided above.

II.           AGREEMENT

1.           Grant of Option.  The Plan’s Administrator hereby grants to the Optionee an option (the "Option") to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the "Exercise Price"), subject to the terms and conditions of the Plan, which is incorporated herein by reference.  The Optionee agrees that this Option grant shall be subject to all the terms and provisions of the Plan, including future amendments thereto, if any, pursuant to the terms thereof.  In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.

If designated in the Notice of Grant as an Incentive Stock Option ("ISO"), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code.  However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Nonstatutory Stock Option ("NSO").

2.           Exercise of Option.

(a)           Right to Exercise.  This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement.

(b)           Method of Exercise.  This Option is exercisable by contacting Bank of America Merrill Lynch (“ML”) or by logging into Optionee’s ML account and completing the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the "Exercised Shares"), and such other representations and agreements as may be required by ML to complete exercise request.

No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with Applicable Laws.  Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such Exercised Shares.

3.           Settlement of Exercise.  Upon settlement of the transaction, ML will calculate taxes owed based on market price, exercise price, and tax information loaded into the ML system, and remit proceeds from the exercise to Optionee.

4.           Nontransferability of Option.  This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution or a qualified domestic relations order and may be exercised during the lifetime of Optionee only by the Optionee.  The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

5.           Term of Option.  This Option may be exercised only within the term set out in the Notice of Grant and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

6.           Notice of Disqualifying Disposition of ISO Shares.  If the Optionee sells or otherwise disposes of any of the Shares acquired pursuant to an ISO on or before the later of (i) two years after the Date of Grant, or (ii) one year after the exercise date, the Optionee shall immediately notify the Company in writing of such disposition.  The Optionee agrees that he or she may be subject to tax withholding by the Company on the compensation income recognized from such early disposition of ISO Shares.

7.           Service Relationship.  For purposes of this Agreement, the Optionee shall be considered to be in the service of the Company as long as the Optionee remains an Employee, Consultant or Director (as those terms are defined in the Plan).  Nothing in the adoption of the Plan, or the grant of the Options thereunder pursuant to this Agreement, shall confer upon the Optionee the right to continued service with the Company or affect in any way the right of the Company to terminate such relationship at any time.  Unless otherwise provided in a written employment agreement or by Applicable Law, the Optionee’s relationship as an Employee of the Company, if applicable, shall be on an at-will basis, and the employment relationship may be terminated at any time by either the Optionee or the Company for any reason whatsoever, with or without cause.  Any question as to whether and when there has been a termination of Optionee’s relationship as a Service Provider, and the cause of such termination, shall be determined by the Administrator, and its determination shall be final.

8.           Notices.  Any notices or other communications provided for in this Agreement shall be sufficient if in writing.  In the case of the Optionee, such notices or communications shall be effectively delivered if hand delivered to the Optionee at his or her principal place of employment or if sent by registered or certified mail to the Optionee at the Optionee’s last address known to the Company.  In the case of the Company, such notices or communications shall be effectively delivered if sent by registered or certified mail to the Company at its principal executive offices.

9.           Amendment.  Except as permitted by Section 15 of the Plan, this Agreement may not be modified in any respect except by a written agreement signed by the Optionee and an officer of the Company who is expressly authorized by the Company to execute such document.

10.         Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under the Optionee.

11.         Controlling Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to conflicts of laws principles.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Optionee has executed this Agreement, all effective as of the Date of Grant.

	
OPTIONEE

	  	
CYBERONICS, INC.

	  	  	  	  
	  	  	  	  
	  	  	  	  
	_______________________________________	  	
By:

	_________________________________________
	  	  	  	
David S. Wise, Senior Vice President

	  	  	  	
& Chief Administrative Officerex_10-2.htm

 

 

EXHIBIT 10.2

 

 

GRANTEE RESTRICTED STOCK AGREEMENT

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is made effective as of ____________ (the “Grant Date”), between CYBERONICS, INC., a Delaware corporation (the “Company”), and ______________________ (the “Grantee”), whose address is _______________________________________.

1.           Award.  Pursuant to the CYBERONICS, INC. 2009 STOCK PLAN (the “Plan”), as of the Grant Date [___________] shares (the “Restricted Shares”) of the Company’s common stock shall be issued as hereinafter provided in the Grantee’s name subject to certain restrictions thereon.  The Grantee hereby acknowledges receipt of a copy of the Plan and the Prospectus relating thereto pursuant to the Securities Act of 1933, as amended, and agrees that this award of Restricted Shares shall be subject to all of the terms and provisions of the Plan, including future amendments thereto, if any, pursuant to the terms thereof.  In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan shall prevail.  All terms used herein shall have the meaning ascribed to such terms in the Plan unless the context herein clearly requires otherwise.

2.           Restricted Shares.  The Grantee hereby accepts the Restricted Shares when issued and agrees with respect thereto as follows:

(a) Forfeiture Restrictions.  The Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent then subject to the Forfeiture Restrictions, and in the event of termination of the Grantee’s service relationship with the Company (as provided in Section 5) for any reason other than as provided in Section 2(b), the Grantee shall, for no consideration, forfeit to the Company all Restricted Shares then subject to the Forfeiture Restrictions.  The prohibition against transfer and the Grantee’s obligation to forfeit and surrender the Restricted Shares to the Company upon the Grantee’s termination of service are herein referred to as the “Forfeiture Restrictions.”  The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of Restricted Shares.

 

(b) Vesting/Lapse of Forfeiture Restrictions.  So long as the Grantee continues in a service relationship with the Company (as provided in Section 5) on the first anniversary of the Grant Date, the Restricted Shares shall vest and the Forfeiture Restrictions shall lapse on such vested shares on such anniversary date.  Notwithstanding the foregoing vesting schedule, the Forfeiture Restrictions shall lapse in full as to all of the Restricted Shares on the earlier of (i) a Change of Control (as defined in the Plan) or (ii) the termination of the Grantee’s service relationship with the Company due to the Grantee’s Disability (as defined in the Plan) or death.

 

(c) Issuance of Restricted Shares.  Shares representing Restricted Shares shall be issued in book entry or electronic form, registered in the Grantee’s name, pursuant to which the Grantee shall have all of the rights of a shareholder of the Company with respect to the Restricted Shares, including, without limitation, voting rights and the right to receive, when paid, cash dividends (provided, however, that all dividends paid in shares of the Company’s stock and distributions other than cash dividends shall be subject to the Forfeiture Restrictions applicable to the Restricted Shares with respect to which such dividends or other distributions were paid and shall be held by the Company until such Restricted Shares are vested or forfeited).  The Grantee may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the stock until the Forfeiture Restrictions with respect to such shares have expired, and a breach of the terms of this Agreement shall cause a forfeiture of all then remaining Restricted Shares.  Upon the lapse of the Forfeiture Restrictions without forfeiture of the Restricted Shares, the Company shall cause the vested Restricted Shares to be deposited into Grantee’s Merrill Lynch brokerage account in accordance with Company policy.

 

(d) Corporate Acts.  The existence of the Restricted Shares shall not affect in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.  The prohibitions of Section 2(a) hereof shall not apply to the transfer of Restricted Shares pursuant to a plan of reorganization of the Company, but the stock, securities or other property received in exchange therefor shall also become subject to the Forfeiture Restrictions and provisions governing the lapsing of such Forfeiture Restrictions applicable to the original Restricted Shares for all purposes of this Agreement.

 

3.           Taxes.  The Grantee acknowledges that the Grantee, and not the Company, shall be liable for and shall pay all taxes engendered with respect to the grant or vesting of Restricted Shares (and any dividends or distributions thereon) and that, under current tax law, the Company is not required to withhold taxes with respect to this Award.  If such tax laws change, the Grantee agrees to make arrangements for the withholding of taxes that are acceptable to the Company.

 

4.           Status of Stock.  The Grantee agrees that the Restricted Shares issued under this Agreement will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws.  The Grantee also agrees that (i) the Company may refuse to register the transfer of the Restricted Shares on the stock transfer records of the Company if such proposed transfer would constitute a violation of the Forfeiture Restrictions or, in the opinion of counsel satisfactory to the Company, of any applicable securities law, and (ii) the Company may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Restricted Shares.

 

5.           Service Relationship.  For purposes of this Agreement, the Grantee shall be considered to be in the service of the Company as long as the Grantee remains an Employee, Consultant or Director (as those terms are defined in the Plan).  Nothing in the adoption of the Plan, or the award of the Restricted Shares thereunder pursuant to this Agreement, shall confer upon the Grantee the right to continued service with the Company or affect in any way the right of the Company to terminate such employment at any time.  Unless otherwise provided in a written employment agreement or by applicable law, the Grantee’s employment by the Company shall be on an at-will basis and the employment relationship may be terminated at any time by either the Grantee or the Company for any reason whatsoever, with or without cause.  Any question as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Administrator, and its determination shall be final.

 

6.           Notices.  Any notices or other communications provided for in this Agreement shall be sufficient if in writing.  In the case of the Grantee, such notices or communications shall be effectively delivered if hand delivered to the Grantee at his or her principal place of employment or if sent by overnight courier, with confirmation, to the Grantee at the last address the Grantee has filed with the Company.  In the case of the Company, such notices or communications shall be effectively delivered if sent by overnight courier, with confirmation, to the Company at its principal executive offices.

 

7.           Amendment.  Except as permitted by Section 15 of the Plan, this Agreement may not be modified in any respect except by a written agreement signed by the Grantee and an officer of the Company who is expressly authorized by the Company to execute such document.

 

8.           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under the Grantee.

 

9.           Controlling Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas without regard to conflicts of laws principles.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Grantee has executed this Agreement, all effective as of the Grant Date.

	  	
CYBERONICS, INC.

	  	  
	  	  
	  	
By:___________________________________

	  	
David S. Wise, Senior Vice President

	  	
& Chief Administrative Officer

	  	  
	  	
GRANTEE:

	  	  
	  	  
	  	
______________________________________

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