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Exhibit
10.27
OPTION TERMS AND
CONDITIONS
2004 Stock Incentive
Plan
[Incentive][Non-Qualified]
Stock Option
Pursuant to the
Company’s 2004 Stock Option Incentive Plan (the “2004
Plan”), the Board of Directors has voted in favor of granting
to the Optionee an option to purchase Common Stock of the Company
(the “Option”) in the amount indicated on the attached
notice.
1. The Option is granted upon
the following terms:
1.1 Duration of Options.
Subject to reductions in the Option period as hereinafter provided
in the event of termination of employment or death of the Optionee,
the Option shall continue in effect for a period of 10 years from
the Grant Date.
1.2 Time of Exercise. Except
as provided in paragraphs 1.5 and 1.6 and the Plan (including
Section 17 thereof), the Option may be exercised from time to
time in the following amounts: [Insert vesting schedule]
.
1.3 Limitations on Rights to
Exercise. Except as provided in paragraphs 1.5 and 1.6, the
Option may not be exercised unless at the time of such exercise the
Optionee is employed by the Company or any parent or subsidiary of
the Company and shall have been so employed continuously since the
date such option was granted.
1.4 Nonassignability. The
Option is nonassignable and nontransferable by the Optionee except
by will or by the laws of descent and distribution of the state or
country of the Optionee’s domicile at the time of death, and
is exercisable during the Optionee’s lifetime only by the
Optionee.
1.5 Termination of
Employment.
(a) Unless otherwise
determined by the Board of Directors, if an Optionee’s
employment or service with the Company terminates for any reason
other than in the circumstances specified in subsection (b) or
(c) below or Section 1.6, his or her option may be
exercised at any time before the expiration date of the option or
the expiration of three months after the date of termination,
whichever is the shorter period, but only if and to the extent the
Optionee was entitled to exercise the option at the date of
termination.
(b) Unless otherwise
determined by the Board of Directors, if an Optionee’s
employment or service with the Company terminates because of total
disability, his or her option may be exercised at any time before
the expiration date of the option or before the date 12 months
after the date of termination, whichever is the shorter period, but
only if and to the extent the Optionee was entitled to exercise the
option at the date of termination. The term “total
disability” means a medically determinable mental or physical
impairment that is expected to result in death or has lasted or is
expected to last for a continuous period of 12 months or more and
that, in the opinion of the Company and two independent physicians,
causes the Optionee to be unable to perform his or her duties as an
employee, director, officer or consultant of the Company and unable
to be engaged in any substantial gainful activity. Total disability
shall be deemed to have occurred on the first day after the two
independent physicians have furnished their written opinion of
total disability to the Company and the Company has reached an
opinion of total disability.
(c) Unless otherwise
determined by the Board of Directors, if an Optionee dies while
employed by or providing service to the Company, his or her option
may be exercised at any time before the expiration date of the
option or before the date 12 months after the date of death,
whichever is the shorter period, but only if and to the extent the
Optionee was entitled to exercise the option at the date of death
and only by the person or persons to whom the Optionee’s
rights under the option shall pass by the Optionee’s will or
by the laws of descent and distribution of the state or country of
domicile at the time of death.
(d) To the extent the Option
held by any deceased Optionee or by the Optionee whose employment
is terminated shall not have been exercised within the limited
periods provided above, all further rights to purchase shares
pursuant to the Option shall cease and terminate at the expiration
of such periods.
(e) Absence on leave approved
by the Company or on account of illness or disability shall not be
deemed a termination or interruption of employment or service.
Unless otherwise determined by the Board of Directors, vesting of
options shall continue during a medical, family, military or other
leave of absence, whether paid or unpaid.
1.6 Change in
Control.
(a) If as a result of a
Change in Control, the Company’s Common Stock ceases to be
listed for trading on a national securities exchange (an
“Exchange”), any options subject to this award that are
unvested on the date of the Change in Control shall continue to
vest according to the terms and conditions of this award; provided
that such award is replaced with an award for voting securities of
the resulting corporation or the acquiring corporation, as the case
may be (including without limitation, the voting securities of any
corporation which as a result of the Change in Control owns the
Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) (the
“Surviving Company”) which are traded on an Exchange (a
“Replacement Award”), which Replacement Award shall
consist of options with the number of options and exercise price
determined in a manner consistent with Section 424(a) of the
Internal Revenue Code of 1986, as amended, with vesting and any
other terms continuing in the same manner as this award; provided,
however, that in the event of a termination by the Company without
Cause or by the Optionee for Good Reason during the vesting period
of any Replacement Award, the Replacement Award shall immediately
vest; and provided further that upon the vesting date of all or a
portion of a Replacement Award, the Optionee shall be entitled to
receive a lump sum cash payment, paid as soon as practicable, equal
to the decrease, if any, in the value of a share of the Surviving
Company’s stock from the date of the Change in Control (as
increased on a calendar quarterly basis using an annual interest
rate, as of the last business day of the calendar quarter, for
zero-coupon U.S. government securities with a constant maturity
closest in length to the time period between the date of the Change
in Control and the date of vesting of the Replacement Award) to the
time of vesting multiplied by the total number of shares vesting on
such date. If any options that are unvested at the time of the
Change in Control are not replaced with Replacement Awards, such
options shall immediately vest.
(b) If as a result of a
Change in Control, the Company’s Common Stock continues to be
listed for trading on an Exchange, any options that are unvested on
the date of the Change of Control shall continue to vest according
to the terms and conditions of this award; provided however, that,
in the event of a termination by the Company without Cause or by
the Optionee for Good Reason during the vesting period of this
award such award shall immediately vest; and provided further that
upon the vesting date of all or portion of this award, the Optionee
shall be entitled to receive a lump sum cash payment, pa
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