Incentive Stock Option Agreement Under the Alma Lasers Ltd. 2007 Stock Option and Grant Plan
Exhibit 10.5
Name of Optionee:
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(the “Optionee”) | |
No. of Underlying Shares:
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Ordinary Shares | |
Grant Date:
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(the “Grant Date”) | |
Vesting Commencement Date:
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(the “Vesting Commencement Date”) | |
Expiration Date:
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(the “Expiration Date”) | |
Option Exercise Price/Share:
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(the “Option Exercise Price”) |
Pursuant to the Xxxx Lasers Ltd. 2007 Stock Option and Grant Plan (the “Plan”), Xxxx Lasers
Ltd., a company organized under the laws of the State of Israel (together with all successors
thereto, the “Company”), hereby grants to the Optionee, who is an employee of the Company or any of
its Subsidiaries, an Option to purchase, on or prior to the Expiration Date (or such earlier date
as provided in Section 3 below), all or any part of the number of Ordinary Shares of the Company
indicated above (the “Underlying Shares,” with such shares once issued being referred to herein and
in the Plan as “Option Shares”) at the Option Exercise Price per share indicated above.
Notwithstanding anything in this Incentive Stock Option Agreement (the “Agreement”) to the
contrary, this Stock Option and any Option Shares shall be subject to, and governed by, all the
terms and conditions of the Plan, including, without limitation, Section 9 thereof concerning
certain restrictions on transfer of Option Shares and related matters. To the extent there is any
inconsistency between the terms of the Plan and of this Agreement, the terms of the Plan shall
control.
All capitalized terms used in this Agreement and not otherwise defined shall have the
respective meanings given such terms in the Plan.
1. Vesting and Exercisability.
(a) No portion of this Stock Option may be exercised until such portion shall have vested and
become exercisable. Except as set forth in Section 1(b) below, and subject to the determination of
the Committee in its sole discretion to accelerate the vesting schedule hereunder, this Stock
Option shall be vested and exercisable with respect to the Underlying Shares in accordance with the
following schedule:
Vesting Schedule
| One year from Vesting Commencement Date: | 25% of the Underlying Shares. | |
On the first business day of the calendar
month commencing after the one (1) year
anniversary of the Vesting Commencement
Date and the first business day of each
subsequent month for the next thirty-five
(35) months:
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an additional 2.083333% of the Underlying Shares. |
(b) In the case of a Sale Event, this Stock Option shall be treated as provided in Section
4(a) of the Plan.
2. Exercise of Stock Option. Prior to the Expiration Date (or such earlier date
provided in Section 3 below), the Optionee may exercise this Stock Option by (i) delivering a Stock
Option exercise notice (an “Exercise Notice”) in the form of Appendix A hereto indicating
his or her election to purchase some or all of the Underlying Shares with respect to which this
Stock Option is exercisable at the time of such notice and (ii) delivering a fully executed Joinder
Agreement in the form attached hereto as Appendix B. In the event such a Joinder Agreement
is not fully executed, the exercise of this Stock Option shall not be effective or valid (unless
the Holder is already bound by the terms of the Shareholders Agreement with respect to the Option
Shares).
3. Termination of Employment. Except as the Committee may otherwise expressly
provide, or as may otherwise be expressly provided in any employment agreement between the Company
and the Optionee, if the Optionee’s employment with the Company or a Subsidiary terminates, the
period within which the Optionee may exercise this Stock Option may be subject to earlier
termination as set forth below:
(a) Termination of Employment Due to Death or Disability. If the Optionee’s
employment terminates by reason of such Optionee’s death or disability (as defined in Section
422(c) of the Code), this Stock Option may be exercised, to the extent exercisable on the date of
such termination, by the Optionee or by the Optionee’s legal representative or legatee for a period
of twelve (12) months from the date of such termination or until the Expiration Date, if earlier.
(b) Termination for Cause. If the Optionee’s employment is terminated by the Company
for Cause, all Options (unvested and vested) shall terminate immediately.
(c) Other Termination. If the Optionee’s employment terminates for any reason other
than death or disability or Cause, this Stock Option may be exercised, to the extent exercisable on
the date of such termination, by the Optionee for a period of three (3) months from the date of
termination or until the Expiration Date, if earlier.
(d) Treatment of Unvested Options on Termination of Employment. Any portion of this
Stock Option that is not exercisable on the date of termination of the Optionee’s employment with
the Company, for any reason, shall terminate immediately and be null and void and of no further
force and effect.
4. Status of Stock Option. The Optionee understands that, while this Stock Option is
intended to qualify as an “incentive stock option” as defined in Section 422 of the Code to the
extent permitted under applicable law, the Company makes no representation or warranty that this
Stock Option
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will, in fact, so qualify. In order to obtain the benefits of an incentive stock option under
Section 422 of the Code, the Optionee understands that this Stock Option must be exercised within
three (3) months after termination of employment or within twelve (12) months after termination of
employment if such termination is due to death or disability; provided, that in no event may this
Stock Option be exercised after the Expiration Date. The Optionee further understands that, to
obtain such benefits, no sale or other disposition may be made of Option Shares for which incentive
stock option treatment is desired within the one-year period beginning on the day after the day of
the transfer of such Option Shares to him or her, nor within the two-year period beginning on the
day after the Grant Date of this Stock Option. If the Optionee disposes (whether by sale, gift,
transfer or otherwise) of any such Option Shares within either of these periods (a “disqualifying
disposition”), he or she will notify the Company within thirty (30) days after such disposition.
The Optionee also agrees to provide the Company with any information concerning any such
dispositions required by the Company for tax purposes. Further, to the extent Underlying Shares
and any other incentive stock options of the Optionee having an aggregate Fair Market Value in
excess of $100,000 (determined as of the Grant Date) vest in any year, such options will not
qualify as incentive stock options. To the extent that any portion of the Stock Option does not
qualify as an incentive stock option, whether due to a disqualifying disposition or otherwise, it
shall be deemed a non-qualified stock option.
5. Miscellaneous Provisions.
(a) Change and Modifications. This Agreement may not be orally changed, modified or
terminated, nor shall any oral waiver of any of its terms be effective. This Agreement may be
changed, modified or terminated only by an agreement in writing signed by the Company and the
Optionee.
(b) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Israel without regard to conflict of law principles. The competent
courts of Tel Aviv, Israel shall have sole jurisdiction in any matters pertaining to this
Agreement.
(c) Notices. All notices, requests, consents and other communications shall be in
writing and be deemed given when delivered personally, by telex or facsimile transmission or when
received if mailed by first class registered or certified mail, postage prepaid. Notices to the
Company or the Optionee shall be addressed as set forth underneath their signatures below, or to
such other address or addresses as may have been furnished by such party in writing to the other.
(d) Counterparts. For the convenience of the parties and to facilitate execution,
this Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which shall constitute one and the same document.
[SIGNATURE PAGE FOLLOWS]
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The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed
to by the undersigned as of the date first above written.
| XXXX LASER LTD. | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| Address: | ||||
| 0 Xxxxxxx Xxxxxx P.O.B. 3021 | ||||
| Caesarea Industrial Park | ||||
| Caesarea, Israel 38900 | ||||
The undersigned hereby acknowledges receiving and reviewing a copy of the Plan, including, without
limitation, Section 9 thereof, and understands that the Stock Option granted hereby is subject to
the terms of the Plan and of this Agreement. This Agreement is hereby accepted, and the terms and
conditions thereof and of the Plan hereby agreed to, by the undersigned as of the date first above
written.
| OPTIONEE: | ||
| Name: | ||
| Address: | ||
DESIGNATION OF BENEFICIARY:
|
Beneficiary’s Address:
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Appendix A
STOCK OPTION EXERCISE NOTICE
Xxxx Lasers Ltd.
Attention: Chief Financial Officer
0 Xxxxxxx Xxxxxx X.X.X. 0000
Caesarea Industrial Park
Caesarea, Israel 38900
Attention: Chief Financial Officer
0 Xxxxxxx Xxxxxx X.X.X. 0000
Caesarea Industrial Park
Caesarea, Israel 38900
Pursuant to the terms of the stock option agreement between myself and Xxxx Lasers Ltd. (the
“Company”) dated (the “Agreement”), under the Company’s 2007 Stock Option and Grant
Plan, I, [Insert Name] , hereby [Circle One] partially/fully exercise such
Stock Option by including herein payment in the amount of $ representing the purchase price
for [Fill in number of Underlying Shares] Option Shares. I have chosen the following
form(s) of payment:
[ ]
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1. | Cash | ||||
[ ]
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2. | Certified or bank check payable to Xxxx Lasers Ltd. | ||||
[ ]
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3. | Other (as described in the Plan (please describe)) | ||||
In connection with my exercise of the Stock Option as set forth above, I hereby represent and
warrant to the Company as follows:
(i) I am purchasing the Option Shares for my own account for investment only, and not
for resale or with a view to the distribution thereof.
(ii) I have had such an opportunity as I have deemed adequate to obtain from the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company and have consulted with my own advisers with respect to my
investment in the Company.
(iii) I have sufficient experience in business, financial and investment matters to be
able to evaluate the risks involved in the purchase of the Option Shares and to make an
informed investment decision with respect to such purchase.
(iv) I can afford a complete loss of the value of the Option Shares and am able to bear
the economic risk of holding such Option Shares for an indefinite period of time.
(v) I understand that the Option Shares may not be registered under the Securities Act
of 1933 (it being understood that the Option Shares are being issued and sold in reliance on
the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue
sky” laws and may not be sold or otherwise transferred or disposed of in the absence of an
effective registration statement under the Securities Act of 1933 and under any applicable
state securities or “blue sky” laws (or exemptions from the registration requirements
thereof). I further acknowledge that certificates representing Option Shares will bear
restrictive legends reflecting the foregoing.
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(vi) I understand and agree that the Option Shares when issued will continue to be
subject to the Plan, including Section 9 thereof.
| Sincerely yours, | ||
| Name: | ||
| Address: | ||
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Appendix B
Joinder Agreement
The undersigned hereby acknowledges receiving and reviewing a copy of that certain
Shareholders Agreement (the “Agreement”) dated as of
March 23, 2006, by and among Xxxx Lasers
Ltd. (the “Company”) and the parties named therein and agrees, effective as of the date hereof, to
become a party to the Agreement for all purposes of the Agreement. The undersigned acknowledges
that the undersigned shall be included within the term “Shareholder” (as defined in the Agreement),
and agrees to be bound by the Articles of Association of the Company. The undersigned further
confirms that the representations and warranties contained in Section II of the Agreement are true
and correct as to the undersigned as of the date hereof. The address and facsimile number to which
notices may be sent to the undersigned is as follows:
Address: |
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Facsimile No.
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| [NAME OF UNDERSIGNED] |
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