WIRELESS
RONIN TECHNOLOGIES, INC.
INCENTIVE STOCK OPTION
AGREEMENT
PURSUANT TO 2006 EQUITY INCENTIVE PLAN
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No. of shares
subject to option: _________
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Option No. E___
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Date of grant:
_________
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THIS OPTION
AGREEMENT is entered into by and between Wireless Ronin
Technologies, Inc., a Minnesota corporation (the
“Company”), and ___ (the “Optionee”)
pursuant to the Company’s 2006 Equity Incentive Plan, as
amended to date (the “Plan”). Unless otherwise defined
herein, certain capitalized terms shall have the meaning set forth
in the Plan.
Nature of the
Option . This Option is not intended to qualify as an Incentive
Stock Option within the meaning of Section 422 of the United
States Internal Revenue Code of 1986, as amended.
Grant of
Option . Pursuant to the provisions of the Plan, the Company
grants to the Optionee, subject to the terms and conditions of the
Plan and to the terms and conditions herein, the right and option
to purchase from the Company all or a part of an aggregate of ___
( ) shares of the Company’s Common
Stock (the “Shares”) at the purchase price per share
equal to $___.
Terms and
Conditions . The Option is subject to the following terms and
conditions:
Expiration
Date . This Option shall expire five years after the date of
grant specified above.
Exercise of
Option . Subject to the Plan and the other terms of this
Agreement regarding the exercisability of this Option, if Optionee
is employed by the Company on each of the following dates, this
Option shall be exercisable cumulatively, as follows: (i) ___
Shares on the date hereof; (ii) ___ Shares on ___; (iii) ___ Shares
on ___; and (iv) ___ Shares on ___. Any exercise shall be
accompanied by a written notice to the Company specifying the
number of shares of Stock as to which the Option is being
exercised. Notation of any partial exercise shall be made by the
Company on Schedule I hereto. This Option may not be exercised
for a fraction of a Share, and must be exercised for no fewer than
one hundred (100) shares of Stock, or such lesser number of
shares as may be vested.
Payment of
Purchase Price Upon Exercise . At the time of any exercise, the
Exercise Price of the Shares as to which this Option is exercised
shall be paid in cash to the Company, unless the Board shall permit
or require payment of the purchase price in another manner set
forth in the Plan.
Acceleration
of Option Upon Change in Control . In the event of a Change in
Control the provisions of Section 3(b) hereof pertaining to vesting
shall cease to apply and this Option shall become immediately
vested and fully exercisable with respect to all Shares; provided,
however, that unless otherwise provided by the Committee, the
provisions of this Subsection 3(d) shall not apply unless the
Optionee has been employed by the Company for a period of at least
one year. No acceleration of vesting shall occur under this
Subsection 3(d) in the event a surviving corporation or its parent
assumes this Option or in the event the surviving corporation or
its parent substitutes an option agreement with substantially the
same economic terms as provided in this Agreement. Nothing in this
Subsection 3(d) shall limit the Committee’s authority to
cancel this Option in accordance with Section 6 hereof.
Notwithstanding the provisions of this Section 3(d), in the event
of a Change in Control of the Company, the Committee, in its sole
discretion may, without the consent of Optionee, determine that
Optionee will receive, with
respect to some
or all of the shares of Common Stock subject to this Option, as of
the effective date of any Change in Control of the Company, cash in
an amount equal to the excess of the Fair Market Value of such
Shares immediately prior to the effective date of such Change in
Control of the Company over the exercise price per share of such
options and that with respect to any granted and outstanding
Option, the Fair Market Value of which is less than or equal to the
exercise price per share of such Option as of the effective date of
such Change in Control and that the Option therefor shall terminate
as of the effective date of the Change in Control. If the Committee
makes such determination, then as of the effective date of any such
Change in Control of the Company, such Options will terminate as to
such shares and Optionee will only have the right to receive such
cash payment. If the Committee makes such determination, the Option
will terminate, become void and expire as to all unexercised shares
of Common Stock subject to such Option on such date and Optionee
will have no further rights with respect to the Option.
Subject to
Lock Up . Optionee understands that the Company at a future
date may file a registration or offering statement (the
“Registration Statement”) with the Securities and
Exchange Commission to facilitate an underwritten public offering
of its securities. The Optionee agrees, for the benefit of the
Company, that should such an underwritten public offering be made
and should the managing underwriter of such offering require, the
undersigned will not, without the prior written consent of the
Company and such underwriter, during the Lock Up Period as defined
herein: sell, transfer or otherwise dispose of, or agree to sell,
transfer or otherwise dispose of this Option or any of the Shares
acquired upon exercise of this Option during the Lock Up Period; or
sell or grant, or agree to sell or grant, options, rights or
warrants with respect to any of the Shares acquired upon exercise
of this Option. The foregoing does not prohibit gifts to donees or
transfers by will or the laws of descent to heirs or beneficiaries
provided that such donees, heirs and beneficiaries shall be bound
by the restrictions set forth herein. The term “Lock Up
Period” shall mean the period (not to exceed 12 months)
during which Company officers and directors are restricted by the
managing underwriter from effecting any sales or transfers of the
Shares. The Lock Up Period shall commence on the effective date of
the Registration Statement.
Not An
Employment Contract . The Option will not confer on the
Optionee any right with respect to continuance of employment or
other service with the Company or any Subsidiary, nor will it
interfere in any way with any right the Company or any Subsidiary
would otherwise have to terminate or modify the terms of such
Optionee’s employment or other service at any
time.
No Rights as
Shareholder . The Optionee shall have no rights as a
shareholder of the Company with respect to any Shares prior to the
date of issuance to the Optionee of a certificate for such
Shares.
Compliance
with Law and Regulations . This Option and the obligation of
the Company to sell and deliver Shares hereunder shall be subject
to all applicable laws, rules and regulations (including, but not
limited to, federal securities laws) and to such approvals by any
government or regulatory agency as may be required. This Option
shall not be exercisable, and the Company shall not be required to
issue or deliver any certificates for Shares of Stock prior to the
completion of any registration or qualification of such Shares
under any federal or state law, or any rule or regulation of any
government body which the Company shall, in its sole discretion,
determine to be necessary or advisable. Moreover, this Option may
not be exercised if its exercise or the receipt of Shares of Stock
pursuant thereto would be contrary to applicable law.
Withholding . All deliveries and distributions under this
Agreement are subject to withholding of all applicable
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