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Exhibit
10.10
IDENTIPHI,
INC.
RESTRICTED STOCK PURCHASE
AGREEMENT
IdentiPHI, Inc. has granted
to the Participant named in the Notice of Grant of Stock
Purchase Right (the “ Notice
” ) to which this Restricted Stock Purchase Agreement
(the “ Agreement ” ) is
attached a Purchase Right consisting of a right to purchase certain
shares of Common Stock upon the terms and conditions set forth in
the Notice and this Agreement. The Purchase Right has been granted
pursuant to and shall in all respects be subject to the terms and
conditions of the IdentiPHI, Inc. 2007 Equity Incentive Plan (the
“ Plan ” ), as amended to
the Date of Grant, the provisions of which are incorporated herein
by reference. By signing the Notice, the Participant:
(a) represents that the Participant has received copies of,
and has read and is familiar with the terms and conditions of the
Notice, the Plan and this Agreement, (b) accepts the Purchase
Right subject to all of the terms and conditions of the Notice, the
Plan and this Agreement, and (c) agrees to accept as binding,
conclusive and final all decisions or interpretations of the Board
upon any questions arising under the Notice, the Plan or this
Agreement.
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1. |
D EFINITIONS AND C
ONSTRUCTION . |
1.1 Definitions
. Unless otherwise defined herein, capitalized terms
shall have the meanings assigned to such terms in the Notice or the
Plan.
1.2 Construction
. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation
of any provision of this Agreement. Except when otherwise indicated
by the context, the singular shall include the plural and the
plural shall include the singular. Use of the term “or”
is not intended to be exclusive, unless the context clearly
requires otherwise.
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2. |
E XERCISE OF P
URCHASE R IGHT . |
2.1 Exercise of Purchase
Right. Provided that the Participant’s service to the
Company or its Subsidiaries has not terminated (except as provided
by Section 4), the Purchase Right shall be exercisable on and
after the Date of Grant and prior to the Expiration Date in an
amount not to exceed the Total Number of Shares, subject to the
Company’s repurchase rights set forth in Sections 5 and
6.
2.2 Method of Exercise of
Purchase Right . Exercise of the Purchase Right
shall be by written notice to the Company which must state the
election to exercise the Purchase Right, the number of whole shares
of Common Stock for which the Purchase Right is being exercised and
such other representations and agreements as to the
Participant’s investment intent with respect to such shares
as may be required pursuant to the provisions of this Agreement.
The written notice must be signed by the Participant and must be
delivered in person, by certified or registered mail, return
receipt requested, by confirmed facsimile transmission, or by such
other means as the Company may permit, to the Chief Financial
Officer of the Company, or other authorized representative of the
Company, prior to the Expiration Date, accompanied by (i) full
payment of the aggregate Purchase Price for the number of shares of
Stock being purchased and (ii) an executed copy, if required
herein, of the then current form of escrow agreement referenced
below. The Purchase Right shall be deemed to be exercised upon
receipt by the Company of such written notice, the aggregate
Purchase Price, and, if required by the Company, such executed
agreements.
1
2.3 Payment of Purchase
Price. Payment of the aggregate Purchase Price for the number
of shares of Common Stock for which the Purchase Right is being
exercised shall be made in cash, by check, cash equivalent,
cancellation of debt, or in the form of the Participant’s
past service rendered to the Company or its Subsidiaries or for its
benefit having a value not less than the aggregate purchase price
of the shares being acquired, or such other payment as determined
by the Plan Administrator.
2.4 Tax Withholding.
At the time the Purchase Right is exercised, in whole or in part,
or at any time thereafter as requested by the Company, the
Participant hereby authorizes withholding from payroll and any
other amounts payable to the Participant, and otherwise agrees to
make adequate provision for any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of
the Participating Company Group, if any, which arise in connection
with the shares acquired pursuant to this Agreement, including,
without limitation, obligations arising upon (i) the exercise,
in whole or in part, of the Purchase Right, (ii) the transfer,
in whole or in part, of any shares acquired, or (ii) the
lapsing of any restriction with respect to any shares acquired. The
Purchase Right is not exercisable unless the tax withholding
obligations of the Participating Company Group are satisfied.
Accordingly, the Company shall have no obligation to deliver shares
of Stock or to release shares of Stock from an escrow established
pursuant to this Agreement until the tax withholding obligations of
the Participating Company Group have been satisfied by the
Participant.
2.5 Certificate
Registration . The certificate for the shares of
Stock purchased shall be registered in the name of the Participant,
or, if applicable, in the names of the heirs of the
Participant.
2.6 Restrictions on Sale
and Issuance of Shares . The sale and issuance of
shares of Stock shall be subject to compliance with all applicable
requirements of federal, state or foreign law with respect to such
securities. The Purchase Right may not be exercised if the issuance
of shares of Stock upon exercise would constitute a violation of
any applicable federal, state or foreign securities laws or other
law or regulations or the requirements of any stock exchange or
market system upon which the Stock may then be listed. In addition,
the Purchase Right may not be exercised unless (i) a
registration statement under the Securities Act shall at the time
of exercise of the Purchase Right be in effect with respect to the
shares issuable upon exercise of the Purchase Right or (ii) in
the opinion of legal counsel to the Company, the shares issuable
upon exercise of the Purchase Right may be issued in accordance
with the terms of an applicable exemption from the registration
requirements of the Securities Act. The inability of the Company to
obtain from any regulatory body having jurisdiction the authority,
if any, deemed by the Company’s legal counsel to be necessary
to the lawful issuance and sale of any shares subject to the
Purchase Right shall relieve the Company of any liability in
respect of the failure to issue or sell such shares as to which
such requisite authority shall not have been obtained. As a
condition to the exercise of the Purchase Right, the Company may
require the Participant to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any
applicable law or regulation and to make any representation or
warranty with respect thereto as may be requested by the
Company.
2
Except as otherwise provided
in the Plan, shares acquired pursuant to this Agreement shall
become Vested Shares as provided in the Notice.
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4. |
N ONTRANSFERABILITY OF P
URCHASE R IGHT . |
The Purchase Right may be
exercised during the lifetime of the Participant only by the
Participant or the Participant’s guardian or legal
representative and may not be assigned or transferred in any manner
except by will or by the laws of descent and distribution.
Following the death of the Participant, the Purchase Right may be
exercised prior to the Expiration Date by the Participant’s
legal representative or by any person empowered to do so under the
deceased Participant’s will or under the then applicable laws
of descent and distribution.
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5. |
U NVESTED S HARE R
EPURCHASE O PTION
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5.1 Grant of Unvested
Share Repurchase Option . In the event the
Participant’s Service with the Participating Company Group is
terminated for Cause (as defined below), or the Participant
voluntarily ceases to provide Services to the Participating Company
Group without Good Reason (as defined below) (other than death or
disability (meaning the Participant’s inability to perform
the Participant’s duties for any consecutive 90 day period in
any one year period as a result of physical or mental impairment as
determined by a physician reasonably accepted by the Company)), or,
if the Participant, the Participant’s legal representative,
or other holder of shares acquired pursuant to this Agreement,
attempts to sell, exchange, transfer, pledge, or otherwise dispose
of (other than pursuant to an Ownership Change Event, as defined in
Section 5.6 below) any Unvested Shares, as defined in
Section 5.2 below (the “ Unvested
Shares ” ), the Company shall have the right
to repurchase the Unvested Shares under the terms and subject to
the conditions set forth in this Section 5 (the “
Unvested Share Repurchase Option ”
).
5.2 Unvested Shares
Defined . The “ Unvested
Shares ” shall mean, on any given date, the
number of shares of Stock acquired upon exercise of the Purchase
Right which exceed the Vested Shares determined as of such
date.
5.3 Exercise of Unvested
Share Repurchase Option . The Company may
exercise the Unvested Share Repurchase Option by written notice to
the Participant within sixty (60) days after
(a) termination of the Participant’s Service as
described in Section 5.1, or (b) the Company has received
notice of the attempted disposition of Unvested Shares. If the
Company fails to give notice within such sixty (60) day
period, the Unvested Share Repurchase Option shall terminate unless
the Company and the Participant have extended the time for the
exercise of the Unvested Share Repurchase Option. The Unvested
Share Repurchase Option must be exercised, if at all, for all of
the Unvested Shares, except as the Company and the Participant
otherwise agree.
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5.4 Payment for Shares and
Return of Shares to Company . The purchase price
per share being repurchased by the Company shall be an amount equal
to the Participant’s original cost per share, as adjusted
pursuant to Section 8 (the “ Repurchase
Price ” ). The Company shall pay the aggregate
Repurchase Price to the Participant in cash within thirty
(30) days after the date of the written notice to the
Participant of the Company’s exercise of the Unvested Share
Repurchase Option. For purposes of the foregoing, cancellation of
any purchase money indebtedness of the Participant to any
Participating Company for the shares shall be treated as payment to
the Participant in cash to the extent of the unpaid principal and
any accrued interest canceled. The shares being repurchased shall
be delivered to the Company by the Participant at the same time as
the delivery of the Repurchase Price to the Participant.
5.5 Assignment of Unvested
Share Repurchase Option . The Company shall have
the right to assign the Unvested Share Repurchase Option at any
time, whether or not such option is then exercisable, to one or
more persons as may be selected by the Company.
5.6 Ownership Change
Event . An “ Ownership Change
Event ” shall be deemed to have occurred if
any of the following occurs with respect to the Company:
(i) the issuance by the Company in a single or a series of
related transactions of voting securities representing more than
fifty percent (50%) of the total outstanding voting securities
of the Company following such issuance; (ii) the direct or
indirect sale or exchange in a single or series of related
transactions by the stockholders of the Company of more than fifty
percent (50%) of the voting securities of the Company;
(iii) a merger or consolidation in which the Company is a
party, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity
or its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or
such surviving entity or its parent outstanding immediately after
such merger or consolidation; (iv) the sale, exchange, or
transfer of all or substantially all of the assets of the Company;
or (v) a liquidation or dissolution of the Company. Upon the
occurrence of an Ownership Change Event, any Unvested Shares and
any and all new, substituted or additional securities or other
property to which the Participant is entitled by reason of the
Participant’s ownership of Unvested Shares will be Vested
Shares and no longer subject to the Unvested Share Repurchase
Option.
5.7 Certain
Definitions .
(a) For purposes of this
Agreement, a termination for “ Cause ”
occurs if the Participant is terminated for any of the following
reasons: (i) theft, dishonesty, misconduct or falsification of
any employment or Participating Company records; (ii) improper
disclosure of a Participating Company’s confidential or
proprietary information; (iii) any action by the Participant
which has a material detrimental effect on a Participating
Company’s reputation or business; (iv)&nbs
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