Exhibit 10.35
Network Engines, Inc.
Incentive Stock Option Agreement
Granted Under 2009 Incentive Plan
1.
Grant of Option .
This agreement evidences the grant
by Network Engines, Inc., a Delaware corporation (the
“Company”), on
,
20 (the “Grant Date”)
to ,
an employee of the Company (the “Participant”), of an
option to purchase, in whole or in part, on the terms provided
herein and in the Company’s 2009 Incentive Plan (the
“Plan”), a total of
shares (the “Shares”) of common stock, $0.01 par
value per share, of the Company (“Common Stock”) at
$ per
Share. Unless earlier terminated, this option shall expire at
5:00 p.m., Eastern time, on
(the “Final Exercise Date”).
It is intended that the option
evidenced by this agreement shall be an incentive stock option as
defined in Section 422 of the Internal Revenue Code of 1986,
as amended, and any regulations promulgated thereunder (the
“Code”). Except as otherwise indicated by the
context, the term “Participant”, as used in this
option, shall be deemed to include any person who acquires the
right to exercise this option validly under its terms.
2.
Vesting Schedule .
This option will become exercisable
(“vest”) as to [25% of the original number of Shares on
the first anniversary of the employment start date and as to an
additional 6.25% of the original number of Shares at the end of
each successive three-month period following the first anniversary
of the employment start date until the fourth anniversary of the
employment start date] [6.25% of the original number of Shares at
the end of each successive three-month period following the Grant
Date until the fourth anniversary of the Grant Date]. This
option shall expire upon, and will not be exercisable after, the
Final Exercise Date.
The right of exercise shall be
cumulative so that to the extent the option is not exercised in any
period to the maximum extent permissible it shall continue to be
exercisable, in whole or in part, with respect to all Shares for
which it is vested until the earlier of the Final Exercise Date or
the termination of this option under Section 3 hereof or the
Plan.
3.
Exercise of Option .
(a)
Form of Exercise . Each election to exercise this
option shall be delivered in the manner or in the form directed by
the Company, and accompanied by payment in full in the manner
provided in the Plan. The Participant may purchase less than
the number of shares covered hereby, provided that no partial
exercise of this option may be for any fractional share.
(b)
Continuous Relationship with the Company Required .
Except as otherwise provided in this Section 3, this option
may not be exercised unless the Participant, at the time he or she
exercises this option, is, and has been at all times since the
Grant Date, an employee or officer of, or consultant or advisor to,
the Company or any parent or subsidiary of the Company as defined
in Section 424(e) or (f) of the Code (an
“Eligible Participant”).
1