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Exhibit
10.6
NANOMETRICS
INCORPORATED
2005 EQUITY INCENTIVE
PLAN
STOCK OPTION
AGREEMENT
NOTICE OF GRANT OF STOCK
OPTION
Unless otherwise defined
herein, the terms defined in the 2005 Equity Incentive Plan (the
“Plan”) will have the same defined meanings in this
Notice of Grant of Stock Option (the “Notice of Grant”)
and Terms and Conditions of Stock Option Grant, attached hereto as
Exhibit A (together, the “Option
Agreement”).
Participant has been granted
an Option to purchase Common Stock of the Company, subject to the
terms and conditions of the Plan and this Option Agreement, as
follows:
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| Grant
Number |
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Date of Grant
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| Vesting
Commencement Date |
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| Number of
Shares Granted |
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| Exercise
Price per Share |
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$ |
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| Total
Exercise Price |
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$ |
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| Type of
Option |
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Incentive Stock Option |
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Nonstatutory Stock Option |
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| Term/Expiration Date |
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Vesting Schedule
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This Option will be
exercisable, in whole or in part, in accordance with the following
vesting schedule:
[ One third (1/3) of the
Shares subject to the Option shall vest on the one (1)-year
anniversary of the Vesting Commencement Date, and one-third
(1/3) of the Shares subject to the Option shall vest
on
-1-
each one year anniversary of the Vesting
Commencement Date thereafter, subject to Participant continuing to
be a Service Provider through each such date.]
Termination Period
:
This Option will be
exercisable (to the extent vested) for three (3) months after
Participant ceases to be a Service Provider, unless such
termination is due to Participant’s death or Disability, in
which case this Option will be exercisable (to the extent vested)
for twelve (12) months after Participant ceases to be a
Service Provider. Notwithstanding the foregoing sentence, in no
event may this Option be exercised after the Term/Expiration Date
as provided above and may be subject to earlier termination as
provided in Section 17(c) of the Plan.
By Participant’s
signature and the signature of the Company’s representative
below, Participant and the Company agree that this Option is
granted under and governed by the terms and conditions of the Plan
and this Option Agreement. Participant has reviewed the Plan and
this Option Agreement in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and
Option Agreement. Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the
Administrator upon any questions relating to the Plan and Option
Agreement. Participant further agrees to notify the Company upon
any change in the residence address indicated above.
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PARTICIPANT
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NANOMETRICS INCORPORATED
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Signature |
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By |
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Print
Name |
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Title |
-2-
EXHIBIT A
TERMS AND CONDITIONS OF
STOCK OPTION GRANT
1.
Grant of Option . The Administrator hereby grants to the
Participant named in the Notice of Grant (the
“Participant”) an option (the “Option”) to
purchase the number of Shares set forth in the Notice of Grant, at
the exercise price per Share set forth in the Notice of Grant (the
“Exercise Price”), subject to all of the terms and
conditions of this Option Agreement and the Plan, which is
incorporated herein by reference. Subject to Section 19(c) of
the Plan, in the event of a conflict between the terms and
conditions of the Plan and this Option Agreement, the terms and
conditions of the Plan will prevail.
If designated in the Notice
of Grant as an Incentive Stock Option (“ISO”), this
Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. Further, if for any reason
this Option (or portion thereof) shall not qualify as an ISO, then,
to the extent of such nonqualification, such Option (or portion
thereof) shall be regarded as a NSO granted under the Plan. In no
event shall the Administrator, the Company or any Parent or
Subsidiary or any of their respective employees or directors have
any liability to Participant (or any other person) due to the
failure of the Option to qualify for any reason as an
ISO.
2.
Exercise of Option .
(a)
Right to Exercise . This Option will be exercisable during
its term in accordance with the Vesting Schedule set out in the
Notice of Grant and with the applicable provisions of the Plan and
this Option Agreement.
(b)
Administrator Discretion to Accelerate . The Administrator,
in its discretion, may accelerate the vesting of the balance, or
some lesser portion of the balance, of the unvested Shares subject
to the Option at any time, subject to the terms of the Plan. If so
accelerated, such Shares subject to the Option will be considered
as having vested as of the date specified by the
Administrator.
(c)
Method of Exercise . This Option will be exercisable by
delivery of an exercise notice, in the form attached as
Exhibit B (the “Exercise Notice”) or in a
manner and pursuant to such procedures as the Administrator may
determine, which will state the election to exercise the Option,
the number of Shares with respect to which the Option is being
exercised (the “Exercised Shares”), and such other
representations and agreements as may be required by the Company.
The Exercise Notice will be accompanied by payment of the aggregate
Exercise Price as to all Exercised Shares (as such Exercise Price
may be adjusted in accordance with the terms of Section 17 of
the Plan), together with any applicable tax withholding. This
Option will be deemed to be exercised upon receipt by the Company
of such fully executed Exercise Notice accompanied by the aggregate
Exercise Price, together with any applicable tax
withholding.
No Shares will be issued
pursuant to the exercise of an Option unless such issuance and such
exercise comply with Applicable Laws. Assuming such compliance, for
income tax purposes the
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Shares will be considered transferred to
the Participant on the date on which the Option is exercised with
respect to such Shares.
3.
Method of Payment . Payment of the aggregate Exercise Price
will be by any of the following, or a combination thereof, at the
election of Participant:
(a) cash;
(b) check;
(c) consideration received by the
Company under a formal cashless exercise program adopted by the
Company in connection with the Plan; or
(d) surrender of other Shares which
(i) have a Fair Market Value on the date of surrender equal to
the aggregate Exercise Price of the Exercised Shares, and
(ii) must be owned free and clear of any liens, claims,
encumbrances or security interests, if accepting such Shares, in
the sole discretion of the A
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