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INCENTIVE STOCK OPTION AGREEMENT

Option Agreement

INCENTIVE STOCK OPTION AGREEMENT | Document Parties: QUALITY SYSTEMS, INC You are currently viewing:
This Option Agreement involves

QUALITY SYSTEMS, INC

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Title: INCENTIVE STOCK OPTION AGREEMENT
Governing Law: California     Date: 6/5/2007
Industry: Software and Programming     Sector: Technology

INCENTIVE STOCK OPTION AGREEMENT, Parties: quality systems  inc
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Exhibit 10.3

 

INCENTIVE STOCK OPTION AGREEMENT

THIS INCENTIVE STOCK OPTION AGREEMENT, dated this _____ day of __________, 200_, between QUALITY SYSTEMS, INC., a California corporation (hereinafter referred to as the “ Company ”), and _________________, an employee of the Company, its parent or one or more of its subsidiaries (hereinafter referred to as the “ Optionee ”), is made with reference to the following facts:

The Company desires, by affording the Optionee an opportunity to purchase shares of Common Stock, $0.01 par value, in the Company (hereinafter called “ Common Stock ”), as hereinafter provided, to carry out the purpose of the Company’s 2005 Stock Option and Incentive Plan (the “ Plan ”). Terms not otherwise defined herein shall have the meaning given them under the Plan.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants hereinafter set forth, and for other good and valuable consideration, the parties hereto have agreed, and do hereby agree, as follows:

2.

Grant of Option .

The Company hereby irrevocably grants to the Optionee the right and option (hereinafter called the “ Option ”) to purchase all or any part of an aggregate of _____________ shares (such number being subject to adjustment as provided in the Plan) on the terms and conditions herein set forth. The Option granted herein is intended to be an “incentive option” within the meaning of the Plan and Section 422A of the Internal Revenue Code of 1986, as amended (the “ Code ”).

3.

Purchase Price .

Subject to adjustment as provided in the Plan, the purchase price of the Common Stock covered by the Option shall be $____________ per share, representing one hundred percent (100%) of the Fair Market Value of a share as determined pursuant to Section 2.3(f) of the Plan as of the date hereof. The purchase price of stock acquired pursuant to an Option shall be paid at the time the Option is exercised either in cash or by tendering any other form of legal consideration that may be acceptable to the Board and permitted under the Plan.

4.

Term of Option .

The term of the Option shall commence on the date hereof and all rights to purchase shares hereunder shall cease at 11:59 P.M. on the day before the ___________ anniversary of the date hereof, subject to earlier termination as provided herein. Except as may otherwise be provided in this Agreement, the Option granted hereunder shall become exercisable in cumulative installments as follows:

 

 

 

 

 



Date Installments First
Become Exercisable

Number of Option Shares
Subject to Installment

 

 

 

 

 

 

 

 

 

Once an installment of the Option granted hereunder becomes exercisable for the first time, the shares subject thereto will be purchasable thereafter by the Optionee at any time in whole, or from time-to-time in part, prior to the expiration or earlier termination of the Option granted hereunder. Except as provided in Section 5 hereof, the Option may not be exercised at any time unless the Optionee shall have been continuously, from the date hereof to the date of the exercise of the Option, an employee of the Company, its parent, if any, or of one or more of its subsidiaries or a corporation or a parent or subsidiary of a corporation issuing or assuming an option to which Section 424(a) of the Code applies. The holder of the Option shall not have any of the rights of a shareholder with respect to the shares covered by the Option as to any shares of Common Stock not actually issued and delivered to such holder.

5.

Non-Transferability .

The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and the Option may be exercised, during the lifetime of the Optionee, only by the Optionee. More particularly (but without limiting the generality of the foregoing), the Option may not be assigned, transferred (except as provided in Section 5(c) hereof), pledged or hypothecated in any way, shall not be assignable by operation of law and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect.

6.

Termination of Employment .

(a)            Termination of Employment Other than by Disability, Death or Retirement . In the event that an Optionee’s Termination of Employment occurs at Optionee’s election for any reason other than by retirement (as described in Section 5(d) below) or at the Company’s election for Cause, the Option shall terminate immediately. In the event an Optionee’s Termination of Employment occurs at the election of the Company without Cause, the Optionee may exercise his or her Option (to the extent that the Optionee was entitled to exercise it at the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) mo


 
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