Document:

exhibit_10-2.htm

Exhibit 10.2

 

March 22, 2016

 

Angela Strand

419 NW Albemarle Terrace

Portland, OR 97210

 

Dear Ms. Strand,

 

On behalf of Integrity Applications, Inc., a Delaware corporation (the “Company”), I am pleased to invite you to join the Board of Directors of the Company (the “Board”) as a non-executive independent director and the chairperson of the Nominating and Corporate Governance Committee of the Board.

 

As a member of the Board, you will be entitled to compensation under the Board’s recently approved compensation package for non-employee directors, consisting of: (a) an annual cash fee in the amount of $15,000, payable in four equal quarterly installments of $3,750 each on the last day of each calendar quarter commencing with the second quarter of 2016, subject to your continued service as of each such date; (b) an additional annual cash payment in the amount of $10,000 for your service as the chairperson of the Nominating and Corporate Governance Committee, payable in four equal quarterly installments of $2,500 each on the last day of each calendar quarter commencing with the second quarter of 2016, subject to your continued service as of each such date; and (c) a grant of a one-time award of options to purchase up to an aggregate of 26,666 shares of the Company’s common stock, par value $0.001 per share, at an exercise price of $4.50 per share, under and pursuant to the Company’s 2010 Incentive Compensation Plan, which options shall vest in eight equal quarterly installments of 3,333.25 each, subject to your continued service as of each such date, commencing with the second quarter of 2016.  You will also be entitled to reimbursement for reasonable out-of-pocket expenses incurred in connection with your service on the Board, in accordance with the Company’s reimbursement policies, which the Company may amend from time to time. In addition, as a member of the Board, you will be added to the Company’s Director and Officer Liability Policy.  A copy of such policy is available for your review upon request.

 

The Board has already approved your appointment.  If you agree to serve on the Board, your term as a director will commence on the date on which you communicate such acceptance (or such later date indicated in such acceptance).  Your initial term of office will continue until the 2016 Annual Meeting of Stockholders.  At such time you will be eligible to be nominated for election to an additional 1-year term. If you are not re-elected, your term of office will expire at the 2016 Annual Meeting and when your successor is elected and qualified.

 

This letter sets forth the entire compensation you will receive for your service on the Board. Nothing in this letter should be construed as an offer of employment. If the foregoing terms are agreeable, please indicate your acceptance by signing the letter in the space provided below and returning this letter to the Company.

 

	 	
Sincerely,

 

Integrity Applications, Inc.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Avner Gal	 
	 	 	Name: Avner Gal	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

Accepted as of March 23, 2016 by:

 

	/s/ Angela Strand	 
	

Angela Strandexhibit_10-3.htm

Exhibit 10.3

 

AMENDMENT NO. 1

TO THE

INTEGRITY APPLICATIONS, INC.

2010 INCENTIVE COMPENSATION PLAN

 

WHEREAS, Integrity Applications, Inc., a Delaware corporation (the “Company”), adopted the Integrity Applications, Inc. 2010 Incentive Compensation Plan (the “Plan”), which was approved by the Company’s shareholders on July 22, 2010 at the Company’s 2010 Annual Meeting of Shareholders;

WHEREAS, capitalized terms used herein and not herein defined shall have the respective meanings ascribed thereto in the Plan;

WHEREAS, the Company desires to amend the Plan to increase the number of Shares reserved for delivery under the Plan to 1,000,000 Shares (as such number of Shares may be adjusted from time to time in accordance with the provisions of the Plan), resulting in 1,000,000 Shares being available for delivery under the Plan, effective March 17, 2016;

WHEREAS, the Company does not intend that this Amendment will increase (i) the maximum aggregate number of Shares that may be delivered under the Plan as a result of the exercise of the Incentive Stock Options, or (ii) the per-person Award limits under Section 5 of the Plan.

NOW THEREFORE, the Plan is hereby amended, effective as of March 17, 2016, as follows:

	
  

	
1.

	
Section 4(a) of the Plan is hereby amended and restated in its entirety, as follows:

“Limitation on Overall Number of Shares Available for Delivery Under Plan.  Subject to adjustment as provided in Section 10(c) hereof, the total number of Shares reserved and available for delivery under the Plan shall be 1,000,000. Any Shares delivered under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.”

	
  

	
2.

	
Section 4(c)(v) of the Plan is hereby amended and restated in its entirety, as follows:

“Notwithstanding anything in this Section 4(c) to the contrary but subject to adjustment as provided in Section 10(c) hereof, the maximum aggregate number of Shares that may be delivered under the Plan as a result of the exercise of the Incentive Stock Options shall be the number of Shares authorized for issuance under the Plan pursuant to Section ‎4(a) prior to the amendment to Section 4(a) of the Plan, effective March 17, 2016, which increased the number of Shares authorized for issuance under the Plan.  Thus, for the avoidance of doubt, the maximum aggregate number of Shares that may be delivered under the Plan as a result of the exercise of the Incentive Stock Options shall be 529,555 Shares.”

  

  

  

	
  

	
3.

	
Section 5 of the Plan is hereby amended and restated in its entirety, as follows:

“Eligibility; Per-Person Award Limitations.  Awards may be granted under the Plan only to Eligible Persons.  Subject to adjustment as provided in Section 10(c), in any fiscal year of the Company during any part of which the Plan is in effect, no Participant may be granted (i) Options or Stock Appreciation Rights with respect to more than 60% of the Shares authorized for issuance under the Plan pursuant to Section ‎0 prior to the amendment to Section 4(a) of the Plan, effective March 17, 2016, which increased the number of Shares authorized for issuance under the Plan, or (ii) Restricted Stock, Deferred Stock, Performance Shares and/or Other Stock-Based Awards with respect to more than 25% of the Shares authorized for issuance under the Plan pursuant to Section ‎0 prior to the amendment to Section 4(a) of the Plan, effective March 17, 2016, which increased the number of Shares authorized for issuance under the Plan.  In addition, the maximum dollar value payable to any one Participant with respect to Performance Units is (x) $100,000 with respect to any 12 month Performance Period (pro-rated for any Performance Period that is less than 12 months based upon the ratio of the number of days in the Performance Period as compared to 365), and (y) with respect to any Performance Period that is more than 12 months, $200,000.”

	
  

	
4.

	
Except as amended herein, all other provisions of the Plan remain unchanged and in full force and effect.

 

  

  

  

IN WITNESS WHEREOF, the Company has caused the Plan to be amended as set forth herein as of March 17, 2016.

 

	 	
Integrity Applications, Inc.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Avner Gal	 
	 	 	Name: Avner Gal	 
	 	 	Title: Chief Executive OfficerExhibit 10.1

 

RESTRICTED STOCK AGREEMENT

 

THIS
RESTRICTED STOCK AGREEMENT (this “Agreement”) is made as of the ___ day of _____, 20__ (the “Effective
Date”), between Carbon Natural Gas Company, a Delaware corporation (the “Company”), and ___________
(the “Director”).

 

1.            Award.
Pursuant to the Carbon Natural Gas Company 2011 Stock Incentive Plan, as amended (the “Plan”) and effective
as of the Effective Date, an award of ______________ (_________) unvested shares of the Company’s common stock, par value
$0.01 per share (the “Restricted Stock Award”) has been made to the Director. The Restricted Stock Award is
subject to the terms and conditions of this Agreement. The Restricted Stock Award (and upon lapse of the Forfeiture Restrictions
(as defined hereinafter), the issuance of the shares underlying the Restricted Stock Award (the “Shares”))
is made in consideration of services that the Director has performed for the Company and services to be provided to the Company
in the future. The Restricted Stock Award is being made subject to acceptance of this Agreement by the Director and satisfaction
of the conditions of this Agreement. This Restricted Stock Award is subject to all of the terms and provisions of the Plan, including
future amendments thereto, if any.

 

2.            Definitions.
Capitalized terms used in this Agreement that are not defined below or in the body of this Agreement shall have the meanings given
to them in the Plan. In addition to the terms defined in the body of this Agreement, the following capitalized words and terms
shall have the meanings indicated below:

 

(a)          “Cause”
means a felony conviction of the Director or the failure of the Director to contest prosecution for a felony, or the Director’s
willful misconduct or dishonesty, any of which is determined by the Committee to be directly and materially harmful to the business
or reputation of the Company or its Subsidiaries.

 

(b)         “Change
in Control” means the occurrence of:

 

(i)         the
acquisition within any 12-month period by any “Person” (as the term person is used for purposes of Section 13(d)
or 14(d) of the Exchange Act), immediately after which such Person has “Beneficial Ownership” (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of the total voting power of the then outstanding
stock of the Company entitled to vote generally in the election of directors, but excluding the following transactions (the “Excluded
Acquisitions”):

 

(A)        any
acquisition directly from the Company (other than an acquisition by virtue of the exercise of a conversion privilege of a security
that was not acquired directly from the Company),

 

(B)        any
acquisition by the Company, and

 

(C)        any
acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company;

 

(ii)         a
change in the composition of the Board such that at any time during a period of 12 months or less, individuals who at the beginning
of such period constitute the Board (and any new directors whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least a majority of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was so approved) cease for any reason to constitute a
majority thereof;

 

(iii)         an
acquisition (other than an Excluded Acquisition) by any Person of fifty percent (50%) or more of the voting power or value
of the Company’s stock;

 

(iv)         the
consummation of a merger, consolidation, reorganization or similar corporate transaction, whether or not the Company is the surviving
company in such transaction, other than a merger, consolidation, or reorganization that would result in the Persons who are Beneficial
Owners of the Company’s stock outstanding immediately prior thereto continuing to Beneficially Own, directly or indirectly,
in substantially the same proportions, at least fifty percent (50%) of the combined voting power or value of the Company’s
stock (or the stock of the surviving entity) outstanding immediately after such merger, consolidation or reorganization; or

 

     

     

    

 

(v)         the
sale or other disposition during any 12 month period of all or substantially all of the assets of the Company, provided that such
sale is of assets having a total gross fair market value equal to or greater than forty percent (40%) of the total gross fair
market value of the assets of the Company immediately prior to such sale or disposition.

 

The
foregoing definition of “Change in Control” is intended to comply with the requirements of Section 409A of the
Code and the guidance issued thereunder and shall be interpreted and applied by the Committee in a manner consistent therewith.

 

(c)         “Disability”
means disability as determined by the Committee in accordance with Section 22(e)(3) of the Code.

 

(d)         “Fair
Market Value” has the meaning provided in the Plan.

 

(e)         “Forfeiture
Restrictions” shall have the meaning specified in Section 3(a) hereof.

 

(f)         “Section 16
Person” shall mean an officer, director or affiliate of the Company or a former officer, director or affiliate of the
Company who is subject to section 16 of the Securities Exchange Act of 1934, as amended.

 

3.            Restricted
Stock.The Director hereby accepts the Restricted Stock Award and agrees with respect thereto as follows:

 

(a)          Forfeiture
Restrictions. Prior to the lapse of the Forfeiture Restrictions, neither the Restricted Stock Award nor the Shares may be
sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of, and in the event of termination
of the Director’s membership on the Board for Cause, the Director shall, for no consideration, forfeit to the Company all
of his rights in and to the Restricted Stock Award and the Shares to the extent then subject to the Forfeiture Restrictions. The
prohibition against transfer and the obligation to forfeit and surrender such rights in and to the Restricted Stock Award and
the Shares upon termination of membership on the Board as provided in the preceding sentence are herein referred to as the “Forfeiture
Restrictions.” The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of the Director’s
rights in and to the Restricted Stock Award.

 

(b)          Lapse
of Forfeiture Restrictions. Provided that the Director has continuously served as a member of the Board from the date of this
Agreement through the lapse date described in this sentence, the Forfeiture Restrictions shall lapse with respect to 100% of the
Restricted Stock Award on the first to occur of (i) the date upon which a Change in Control occurs or (ii) the date
upon which the Director’s membership on the Board is terminated other than for Cause.

 

(c)          Certificates.
As soon as practicable following the lapse of the Forfeiture Restrictions, the Company shall either (i) cause a certificate
or certificates evidencing Shares to be issued without legend (except for any legend required pursuant to applicable securities
laws or any other agreement to which the Director is a party) in the name of the Director or, (ii) issue appropriate instructions
to the transfer agent if the electronic, book-entry method is utilized. In any event, the Company, in its discretion, may elect
to deliver the Shares in certificate form or electronically to a brokerage account established for the Director’s benefit
at a brokerage financial institution selected by the Company.

 

(d)          Corporate
Acts. The existence of the Restricted Stock Award shall not affect in any way the right or power of the Board or the stockholders
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 3(a) hereof shall not apply to the transfer of the Restricted
Stock Award 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 Stock Award for all purposes of this Agreement.

 

    	 	2	 

     

    

 

(e)          No
Rights as a Stockholder. Until the lapse of the Forfeiture Restrictions, neither the Director nor any legal representative,
legatee or heir shall have any rights or privileges of a stockholder of the Company with respect to any unvested Shares and upon
the lapse of the Forfeiture Restrictions, the Director shall have rights as a stockholder of the Company only with respect to
the Shares from which the Forfeiture Restrictions have lapsed.

 

4.           Withholding
of Tax. To the extent that the receipt of the Restricted Stock Award or the lapse of any Forfeiture Restrictions results
in compensation income or wages to the Director for federal, state or local tax purposes, the Director shall deliver to the Company
at the time of such receipt or lapse, as the case may be, such amount of money as the Company may require to meet its minimum
obligation under applicable tax laws or regulations, and if the Director fails to do so, the Company is authorized to withhold
from any cash or stock remuneration (including withholding any Shares distributable to the Director under this Agreement) then
or thereafter payable to the Director any tax required to be withheld by reason of such resulting compensation income or wages.
The Director acknowledges and agrees that the Company is making no representation or warranty as to the tax consequences to the
Director as a result of the receipt of the Restricted Stock Award, the lapse of any Forfeiture Restrictions or the forfeiture
of any portion of the Restricted Stock Award pursuant to the Forfeiture Restrictions.

 

5.            Status
of Stock. The Director agrees that upon lapse of the Forfeiture Restrictions, the Shares issued under this Agreement will
not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities
laws. The Director also agrees that certificates, if any, representing the Shares shall bear the following restrictive legend
in order to assure compliance with applicable securities laws,

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER UNITED STATES FEDERAL OR STATE SECURITIES LAWS AND MAY
NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED OR ASSIGNED FOR VALUE, DIRECTLY OR INDIRECTLY, NOR MAY THE SECURITIES BE
TRANSFERRED ON THE BOOKS OF THE COMPANY, WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE UNITED STATES FEDERAL AND
STATE SECURITIES LAWS OR COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE, AT THE OPTION OF THE COMPANY, TO
BE EVIDENCED BY AN OPINION OF STOCKHOLDER’S COUNSEL, IN A FORM ACCEPTABLE TO THE COMPANY, THAT NO VIOLATION OF SUCH REGISTRATION
PROVISIONS WOULD RESULT FROM ANY PROPOSED TRANSFER OR ASSIGNMENT.

  

The
Director further agrees that (i) the Company may refuse to register the transfer of the shares of the Company’s common
stock issued under this Agreement on the stock transfer records of the Company if such proposed transfer would, constitute a violation,
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 Shares.

 

6.            Membership
on the Board. Nothing in the adoption of the Plan, or the Restricted Stock Award made pursuant to this Agreement, shall
confer upon the Director the right to continued membership on the Board or affect in any way the right of the Company to terminate
such membership at any time. Any question as to whether and when there has been a termination of the Director’s membership
on the Board, and the cause of such termination, shall be determined by the Committee or its delegate, and its determination shall
be final.

 

7.            Notices.
Any notices or other communications provided for in this Agreement shall be sufficient if in writing. In the case of the Director,
such notices or communications shall be effectively delivered if hand delivered to the Director or if sent by registered or certified
mail to the Director at the last address the Director has filed with 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.

 

    	 	3	 

     

    

 

8.            Entire
Agreement; Amendment. This Agreement replaces and merges all previous agreements and discussions relating to the same
or similar subject matters between the Director and the Company and constitutes the entire agreement between the Director and
the Company with respect to the subject matter of this Agreement. This Agreement may not be modified in any respect by any verbal
statement, representation or agreement made by any employee, officer, or representative of the Company or by any written agreement
unless signed by an officer of the Company who is expressly authorized by the Company to execute such document.

 

9.            Binding
Effect; Survival. This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all
persons lawfully claiming under the Director. The provisions of Section 5 shall survive the lapse of the Forfeiture Restrictions
without forfeiture.

 

10.          Controlling
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

 

    	 	4	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Director
has executed this Agreement, all as of the date first above written.

 

	 	CARBON
    NATURAL GAS COMPANY
	 	 
	 	By:	 
	 	 	Patrick
    R. McDonald,
	 	 	Chief
    Executive Officer
	 	 	 
	 	 	 
	 	DIRECTOR:
	 	 
	 	 

  

 

 

 

 

Signature
Page

Restricted
Stock Agreement

 

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]