Exhibit 4.4
SYMMETRICOM, INC.
2006 INCENTIVE AWARD
PLAN
STOCK OPTION GRANT NOTICE AND
STOCK OPTION AGREEMENT
Symmetricom, Inc., a Delaware
corporation (the “ Company ”), pursuant
to its 2006 Incentive Award Plan (the “ Plan
”), hereby grants to the holder listed below (“
Participant ”), an option to purchase the
number of shares of the Company’s common stock, par value
$0.0001 (“ Stock ”), set forth below (the
“ Option ”). This Option is subject
to all of the terms and conditions set forth herein and in the
Stock Option Agreement attached hereto as Exhibit A
(the “ Stock Option Agreement ”) and the
Plan, which are incorporated herein by reference. Unless
otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Grant Notice and the Stock Option
Agreement.
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Participant:
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Grant Date:
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Exercise Price per Share:
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Total Exercise Price:
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$
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Total Number of Shares
Subject to the Option:
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shares
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Expiration Date:
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Type of Option:
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Non-Qualified Stock Option
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Vesting Schedule:
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This Option shall become vested and
exercisable with respect to all of the shares subject to the Option
on the first anniversary of the Grant Date.
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The shares subject to this Option
shall vest on an accelerated basis in the event of the occurrence
of a Change of Control as described in Section 3.1(c) of
the Stock Option Agreement.
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By his or her signature, the
Participant agrees to be bound by the terms and conditions of the
Plan, the Stock Option Agreement and this Grant Notice. The
Participant has reviewed the Stock Option Agreement, the Plan and
this Grant Notice in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Grant Notice
and fully understands all provisions of this Grant Notice, the
Stock Option Agreement and the Plan. Participant hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions arising under
the Plan or relating to the Option.
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SYMMETRICOM, INC.
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PARTICIPANT
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By:
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By:
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Print Name:
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Print Name:
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Title:
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CFO
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Address:
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2300 Orchard Parkway
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Address:
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San Jose, CA 95131-1017
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EXHIBIT A
TO STOCK OPTION GRANT
NOTICE
STOCK OPTION
AGREEMENT
Pursuant to the Stock Option Grant
Notice (the “ Grant Notice ”) to which
this Stock Option Agreement (this “ Agreement
”) is attached, Symmetricom, Inc., a Delaware
corporation (the “ Company ”), has
granted to the Participant an option under the Company’s 2006
Incentive Award Plan (the “ Plan ”) to
purchase the number of shares of Stock indicated in the Grant
Notice.
ARTICLE I.
GENERAL
1.1
Defined Terms
. Wherever the following terms
are used in this Agreement they shall have the meanings specified
below, unless the context clearly indicates otherwise.
Capitalized terms not specifically defined herein shall have the
meanings specified in the Plan and the Grant Notice.
(a)
“ Administrator
” shall mean the Board or the Committee responsible for
conducting the general administration of the Plan in accordance
with Article 12 of the Plan; provided that if the Participant
is an Independent Director, “Administrator” shall mean
the Board.
(b)
“ Termination of
Consultancy ” shall mean the time when the engagement
of the Participant as a Consultant to the Company or a Subsidiary
is terminated for any reason, with or without cause, including, but
not by way of limitation, by resignation, discharge, death or
retirement, but excluding: (a) terminations where there
is a simultaneous employment or continuing employment of the
Participant by the Company or any Subsidiary, and
(b) terminations where there is a simultaneous
re-establishment of a consulting relationship or continuing
consulting relationship between the Participant and the Company or
any Subsidiary. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions
relating to Termination of Consultancy, including, but not by way
of limitation, the question of whether a particular leave of
absence constitutes a Termination of Consultancy.
Notwithstanding any other provision of the Plan, the Company or any
Subsidiary has an absolute and unrestricted right to terminate a
Consultant’s service at any time for any reason whatsoever,
with or without cause, except to the extent expressly provided
otherwise in writing.
(c)
“ Termination of
Directorship ” shall mean the time when the
Participant, if he or she is or becomes an Independent Director,
ceases to be a Director for any reason, including, but not by way
of limitation, a termination by resignation, failure to be elected,
death or retirement. The Board, in its sole and absolute
discretion, shall determine the effect of all matters and questions
relating to Termination of Directorship with respect to Independent
Directors.
(d)
“ Termination of
Employment ” shall mean the time when the
employee-employer relationship between the Participant and the
Company or any Subsidiary is terminated for any reason, with or
without cause, including, but not by way of limitation, a
termination by resignation, discharge, death, disability or
retirement; but excluding: (a) terminations where there
is a simultaneous reemployment or continuing employment of the
Participant by the Company or any Subsidiary, and
(b) terminations where there is a simultaneous establishment
of a consulting relationship or continuing consulting relationship
between the Participant and the Company or any Subsidiary.
The Administrator, in its absolute discretion, shall determine the
effect of all matters and questions relating to Termination
of
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Employment, including, but not by way of
limitation, the question of whether a particular leave of absence
constitutes a Termination of Employment.
(e)
“ Termination of
Services ” shall mean the Participant’s
Termination of Consultancy, Termination of Directorship or
Termination of Employment, as applicable.
1.2
Incorporation of Terms of
Plan . The Option
is subject to the terms and conditions of the Plan which are
incorporated herein by reference. In the event of any
inconsistency between the Plan and this Agreement, the terms of the
Plan shall control.
ARTICLE II.
GRANT OF OPTION
2.1
Grant of Option
. In consideration of the
Participant’s past and/or continued employment with or
service to the Company or a Subsidiary and for other good and
valuable consideration, effective as of the Grant Date set forth in
the Grant Notice (the “ Grant Date ”),
the Company irrevocably grants to the Participant the Option to
purchase any part or all of an aggregate of the number of shares of
Stock set forth in the Grant Notice, upon the terms and conditions
set forth in the Plan and this Agreement. As designated in
the Grant Notice, the Option shall be treated as a Non-Qualified
Stock Option.
2.2
Exercise Price
. The exercise price of the
shares of Stock subject to the Option shall be as set forth in the
Grant Notice, without commission or other charge; provided ,
however , that the price per share of the shares of Stock
subject to the Option shall not be less than 100% of the Fair
Market Value of a share of Stock on the Grant Date.
2.3
Consideration to the
Company . In
consideration of the grant of the Option by the Company, the
Participant agrees to render faithful and efficient services to the
Company or any Subsidiary. Nothing in the Plan or this
Agreement shall confer upon the Participant any right to continue
in the employ or service of the Company or any Subsidiary or shall
interfere with or restrict in any way the rights of the Company and
its Subsidiaries, which rights are hereby expressly reserved, to
discharge or terminate the services of the Participant at any time
for any reason whatsoever, with or without Cause, except to the
extent expressly provided otherwise in a written agreement between
the Company or a Subsidiary and the Participant.
ARTICLE III.
PERIOD OF
EXERCISABILITY
3.1
Commencement of
Exercisability .
(a)
Subject to Sections 3.2, 3.3, 5.8
and 5.10, the Option shall become vested and exercisable in such
amounts and at such times as are set forth in the Grant
Notice.
(b)
No portion of the Option which has
not become vested and exercisable at the date of the
Participant’s Termination of Employment, Termination of
Directorship or Termination of Consultancy shall thereafter become
vested and exercisable, except as may be otherwise provided by the
Administrator or as set forth in a written agreement between the
Company and the Participant.
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(c)
Notwithstanding Sections
3.1(a) and 3.1(b), in the event of the occurrence of a Change
of Control, the Option shall become fully vested and
exercisable.
3.2
Duration of
Exercisability .
The installments provided for in the vesting schedule set forth in
the Grant Notice are cumulative. Each such installment which
becomes vested and exercisable pursuant to the vesting schedule set
forth in the Grant Notice shall remain vested and exercisable until
it becomes unexercisable under Section 3.3.
3.3
Expiration of Option
. The Option may not be
exercised to any extent by anyone after the first to occur of the
following events:
(a)
The expiration of seven years from
the Grant Date;
(b)
The expiration of three months from
the date of the Participant’s Termination of Services, unless
such termination occurs by reason of the Participant’s death
or Disability; or
(c)
The expiration of one year from the
date of the Participant’s Termination of Services by reason
of the Participant’s death or Disability.
ARTICLE IV.
EXERCISE OF OPTION
4.1
Person Eligible to
Exercise . Except
as provided in Sections 5.2(b) and 5.2(c), during the lifetime
of the Participant, only the Participant may exercise the Option or
any portion thereof. After the death of the Participant, any
exercisable portion of the Option may, prior to the time when the
Option becomes unexercisable under Section 3.3, be exercised
by the Participant’s personal representative or by any person
empowered to do so under the deceased the Participant’s will
or under the then applicable laws of descent and
distribution.
4.2
Partial Exercise
. Any exercisable portion of
the Option or the entire Option, if then wholly exercisable, may be
exercised in whole or in part at any time prior to the time when
the Option or portion thereof becomes unexercisable under
Section 3.3.
4.3
Manner of Exercise
. The Option, or any
exercisable portion thereof, may be exercised solely by delivery to
the Secretary of the Company (or any third party administrator or
other person or entity designated by the Company) of all of the
following prior to the time when the Option or such portion thereof
becomes unexercisable under Section 3.3:
(a)
An Exercise Notice in a form
specified by the Administrator, stating that the Option or portion
thereof is thereby exercised, such notice complying with all
applicable rules established by the Administrator;
(b)
The receipt by the Company of full
payment for the shares of Stock with respect to which the Option or
portion thereof is exercised, including payment of any applicable
withholding tax, which may be in one or more of the forms of
consideration permitted under Section 4.4;
(c)
Any other written representations as
may be required in the Administrator’s reasonable discretion
to evidence compliance with the Securities Act or any other
applicable law rule, or regulation; and
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(d)
In the event the Option or portion
thereof shall be exercised pursuant to Section 4.1 by any
person or persons other than the Participant, appropriate proof of
the right of such person or persons to exercise the
Option.
Notwithstanding any of the foregoing, the
Company shall have the right to specify all conditions of the
manner of exercise, which conditions may vary by country and which
may be subject to change from time to time.
4.4
Method of Payment
. Payment of the exercise
price shall be by any of the following, or a combination thereof,
at the election of the Participant:
(a)
Cash;
(b)
Check;
(c)
With the consent of the
Administrator, delivery of a notice that the Participant has placed
a market sell order with a broker with respect to shares of Stock
then issuable upon exercise of the Option, and that the broker has
been directed to pay a sufficient portion of the net proceeds of
the sale to the Company in satisfaction of the aggregate exercise
price; provided , that payment of such proceeds is then made
to the Company upon settlement of such sale;
(d)
With the consent of the
Administrator, surrender of other shares of Stock which
(A) have been held for such period of time as the
Administrator may require in order to avoid adverse accounting
consequences, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the shares of
Stock with respect to which the Option or portion thereof is being
exercised;
(e)
With the consent of the
Administrator, surrendered shares of Stock issuable upon the
exercise of the Option having a Fair Market Value on the date of
exercise equal to the aggregate exercise price of the shares of
Stock with respect to which the Option or portion thereof is being
exercised; or
(f)
With the consent of the
Administrator, property of any kind which constitutes good and
valuable consideration.
4.5
Conditions to Issuance of Stock
Certificates . The
shares of Stock deliverable upon the exercise of the Option, or any
portion thereof, may be either previously authorized but unissued
shares of Stock or issued shares of Stock which have then been
reacquired by the Company. Such shares of Stock shall be
fully paid and nonassessable. The Company shall not be
required to issue or deliver any shares of Stock purchased upon the
exercise of the Option or portion thereof prior to fulfillment of
all of the following conditions:
(a)
The admission of such shares of
Stock to listing on all stock exchanges on which such Stock is then
listed;
(b)
The completion of any registration
or other qualification of such shares of Stock under any state or
federal law or under rulings or regulations of the Securities and
Exchange Commission or of any other governmental regulatory body,
which the Administrator shall, in its absolute discretion, deem
necessary or advisable;
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(c)
The obtaining of any approval or
other clearance from any state or federal governmental agency which
the Administrator shall, in its absolute discretion, determine to
be necessary or advisable;
(d)
The receipt by the Company of full
payment for such shares of Stock, including payment of any
applicable withholding tax, which may be in one or more of the
forms of consideration permitted under Section 4.4;
and
(e)
The lapse of such reasonable period
of time following the exercise of the Option as the Administrator
may from time to time establish for reasons of administrative
convenience.
4.6
Rights as Stockholder
. The holder of the Option
shall not be, nor have any of the rights or privileges of, a
stockholder of the Company in respect of any shares of Stock
purchasable upon the exercise of any part of the Option unless and
until such shares of Stock shall have been issued by the Company to
such holder (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the
Company). No adjustment will be made for a dividend or other
right for which the record date is prior to the date the shares of
Stock are issued, except as provided in Section 11.2 of the
Plan.
ARTICLE V.
OTHER PROVISIONS
5.1
Administration
. The Administrator shall have
the power to interpret the Plan and this Agreement and to adopt
such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to
interpret, amend or revoke any such rules. All actions taken
and all interpretations and determinations made by the
Administrator in good faith shall be final and binding upon
Participant, the Company and all other interested persons. No
member of the Committee or the Board shall be personally liable for
any action, determination or interpretation made in good faith with
respect to the Plan, this Agreement or the Option.
5.2
Option Not
Transferable .
(a)
Subject to Section 5.2(b), the
Option may not be sold, pledged, assigned or transferred in any
manner other than by will or the laws of descent and distribution,
unless and until the shares of Stock underlying the Option have
been issued, and all restrictions applicable to such shares of
Stock have lapsed. Neither the Option nor any interest or
right therein shall be liable for the debts, contracts or
engagements of Participant or his or her successors in interest or
shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by
operation of law by judgment, levy, attachment, garnishment or any
other legal or equitable proceedings (including bankruptcy), and
any attempted disposition thereof shall be null and void and of no
effect, except to the extent that such disposition is permitted by
the preceding sentence.
(b)
Notwithstanding any other provision
in this Agreement, with the consent of the Administrator, the
Participant may transfer the Option (or any portion thereof) to any
one or more Permitted Transferees (as defined below), subject to
the following terms and conditions: (i) any portion of
the Option transferred to a Permitted Transferee shall not be
assignable or transferable by the Permitted Transferee other than
by will or the laws of descent and distribution; (ii) any
portion of the Option which is transferred to a Permitted
Transferee shall continue to be subject to all the terms and
conditions of the Option as applicable to the Participant (other
than the ability to further transfer the Option); and
(iii) the Participant
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and the Permitted Transferee shall execute any
and all documents requested by the Administrator, including,
without limitation documents to (A) confirm the status of the
transferee as a Permitted Transferee, (B) satisfy any
requirements for an exemption for the transfer under applicable
federal and state securities laws and (C) evidence the
transfer. For purposes of this Section 5.2(b),
“Permitted Transferee” shall mean, with respect to a
Participant, any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships,
any person sharing the Participant’s household (other than a
tenant or employee), a trust in which these persons (or the
Participant) control the management of assets, and any other entity
in which these persons (or the Participant) own more than fifty
percent of the voting interests, or any other transferee
specifically approved by the Administrator after taking into
account any state or federal tax or securities laws applicable to
transferable Options.
(c)
Unless transferred to a Permitted
Transferee in accordance with Section 5.2(b), during the
lifetime of Participant, only Participant may exercise the Option
or any portion thereof. Subject to such conditions and
procedures as the Administrator may require, a Permitted Transferee
may exercise the Option or any portion thereof during
Participant’s lifetime. After the death of Participant,
any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3, be
exercised by Participant’s personal 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.
5.3
Adjustments
. The Participant acknowledges
that the Option is subject to modification and termination in
certain events as provided in this Agreement and Article 11 of
the Plan.
5.4
Notices . Any notice to be given under the terms
of this Agreement to the Company shall be addressed to the Company
in care of the Secretary of the Company at the address given
beneath the signature of the Company’s authorized officer on
the Grant Notice, and any notice to be given to Participant shall
be addressed to Participant at the address given beneath
Participant’s signature on the Grant Notice. By a
notice given pursuant to this Section 5.4, either party may
hereafter designate a different address for notices to be given to
that party. Any notice which is required to be given to
Participant shall, if Participant is then deceased, be given to the
person entitled to exercise his or her Option pursuant to
Section 4.1 by written notice under this
Section 5.4. Any notice shall be deemed duly given when
sent via email or when sent by certified mail (return receipt
requested) and deposited (with postage prepaid) in a post office or
branch post office regularly maintained by the United States Postal
Service.
5.5
Titles . Titles are provided herein for
convenience only and are not to serve as a basis for interpretation
or construction of this Agreement.
5.6
Governing Law;
Severability . The
laws of the State of Delaware shall govern the interpretation,
validity, administration, enforcement and performance of the terms
of this Agreement regardless of the law that might be applied under
principles of conflicts of laws.
5.7
Conformity to Securities
Laws . The
Participant acknowledges that the Plan and this Agreement are
intended to conform to the extent necessary with all provisions of
the Securities Act and the Exchange Act and any and all regulations
and rules promulgated by the Secu