SEC Contract Filing

Filing Date: 2020-09-03

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>3
<FILENAME>daktex1038-ksom2020.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<div><a name="sf50a2435b8b348fb962b633300f0ac7b"></a></div><div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.3</font></div></div><div><br></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;font-weight:bold;">DAKTRONICS, INC. </font><font style="font-family:inherit;font-size:10pt;">&#32;<br></font><font style="font-family:Arial;font-size:11pt;font-weight:bold;">2020 STOCK INCENTIVE PLAN <br>NON-QUALIFIED STOCK OPTION TERMS AND CONDITIONS</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:Arial;font-size:11pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">1. &#160;&#160;&#160;&#160;</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Grant of Option</font><font style="font-family:Arial;font-size:10pt;">. The Options evidenced by the Daktronics Inc. Grant Agreement (the &#8220;Agreement&#8221;) to which these Terms and Conditions are attached are granted by Daktronics, Inc. (the &#8220;Company&#8221;) to the Recipient under the Daktronics, Inc. 2020 Stock Incentive Plan (the "Plan") (a copy of which has been provided to you), these Terms and Conditions, and the Agreement. The Plan is in all respects controlling except where expressly supplemented in these Terms and Conditions or the Agreement. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">2.&#160;&#160;&#160;&#160;Incorporation of Plan</font><font style="font-family:Arial;font-size:10pt;">. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, these Terms and Conditions and the Agreement shall be construed in accordance with the provisions of the Plan. Any capitalized terms not otherwise defined in these Terms and Conditions and the Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan, the Agreement and these Terms and Conditions and to make any and all determinations thereunder, and its decision shall be binding and conclusive upon all persons, including the Company and the Recipient, in respect of any questions arising under the Plan, the Agreement, or these Terms and Conditions. To the extent any provision in the Agreement or these Terms and Conditions is inconsistent with any provision of the Plan, the Plan shall govern. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">3.&#160;&#160;&#160;&#160;</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Method of Exercise</font><font style="font-family:Arial;font-size:10pt;">. The Option may be exercised in whole or in part by giving notice to the Company in such form as the Company may adopt from time to time. Such notice shall specify the number of shares of Stock subject to the Option being purchased and shall be accompanied by payment in full therefor. The total exercise price of the Option shall be paid to the Company by (i) cash, (ii) certified or bank check, (iii) to the extent permitted by law, promissory note, (iv) to the extent permitted by law, by delivering irrevocable instructions to a broker acceptable to the Company to promptly deliver to the Company sale or loan proceeds to pay the exercise price, or (v) by tendering to the Company (by actual delivery of Stock or attestation) shares of Stock that have been held by the Recipient for a minimum holding period determined by the Company, the Fair Market Value of which is equal to the total Exercise Price. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;">4.&#160;&#160;&#160;&#160;Exercise Following Termination of Employment or Service</font><font style="font-family:Arial;font-size:10pt;">. If the Recipient&#8217;s employment or service with the Company, any Parent Corporation or any Subsidiary terminates: </font></div><div style="line-height:120%;text-align:left;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br></font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">(a)</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">if the termination of employment or service is due to the Recipient&#8217;s death or Disability, the Option shall thereafter be exercised, to the extent it was exercisable at the time of the Recipient&#8217;s death or Disability, by the Recipient, the legal representative of the Recipient&#8217;s estate, or the le