Exhibit 99.16
STOCK OPTION AGREEMENT
THIS STOCK OPTION AGREEMENT is effective as of the 11th day of December, 1998,
between SAF T LOK INCORPORATED, a Florida corporation (the "Company"), and
XXXXXX XXXXXXXX (the "Optionee").
Background
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A. Optionee is currently an employee of the Company.
B. The Company considers it desirable and in the Company's best interest that
Optionee be given an inducement to acquire a proprietary or equity interest
in the Company as an added incentive to advance the interests of the
Company in the form of an option to purchase common stock of the Company.
C. This Agreement shall be considered an individual employee benefit plan for
the Optionee.
Agreement
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In consideration of the mutual covenants and agreements contained herein and
other good and valuable constitutional, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:
1. Grant of Option. The Company hereby grants to Optionee the right and
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option (hereinafter referred to as the "Option") to purchase up to an aggregate
of 150,000 shares of the Company common stock (the "Stock") at an exercise price
equal to $1.09 per share (the "Exercise Price"), on the terms and conditions
herein set forth. The date of grant of the Option is the date set forth on
Exhibit "A" attached hereto.
2. Period of Option. The term of the Option shall be for a period of ten
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years from the date hereof, subject to earlier termination as provided herein.
Prior to the expiration of the Option, Optionee may exercise the Option for
portions of the total option stock granted only in accordance with the vesting
schedule set forth on Exhibit "A" attached hereto.
3. Exercise of Option. The Option shall be exercisable only during the term
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of the Option.
4. Investment Representation and Agreement. Optionee represents that this
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Option and any shares purchased pursuant to this Option are purchased for
investment purposes only and for Optionee's own account. Optionee acknowledges
that this Option and the shares pertaining to this Option are not registered
under the Securities Act of
1933, as amended the Florida Securities and Investor Protection Act, or the
securities laws of any other state.
5. Restrictive Legend. Optionee hereby agrees that certificates evidencing
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the shares of stock purchased by Optionee pursuant to this Agreement shall be
stamped or otherwise imprinted with a conspicuous legend in substantially the
following form:
These shares have not been registered under the Securities
Act of 1933, as amended, the Florida Securities and Investor
Protection Act or any other state securities laws, and
therefore, cannot be sold unless they are subsequently
registered under the Act and any applicable state securities
laws, or unless an exemption from registration is available.
6. Nonassignability of Option Rights. The Option is exercisable only by
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Optionee, except in the case of Optionee's death while in Continuous Employment
of the company, in which case the Option is exercisable by Optionee's estate's
personal representative pursuant to paragraph 3(c), and except in the case of
Optionee's termination due to disability occurring during Continuous Employment
with Saf T Lok, in which case the Option is exercisable, if necessary, by
Optionee's legal representative pursuant to paragraph 3(d). The Option may not
be sold, exchanged, assigned, pledged, encumbered, hypothecated, or otherwise
transferred except by will or by the laws of descent and distribution. The
Option shall not be subject to execution, attachment, or similar process. Upon
any attempt to sell, exchange, assign, pledge, encumber, hypothecate, or
otherwise transfer the Option or any right thereunder, the Option and all rights
thereunder shall immediately become null and void.
7. Method of Exercise. Optionee may exercise the Option, in whole or in part,
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by written notice to the Company stating in such written notice the number of
shares of Stock such Optionee elects to purchase under the Option, and the time
of the delivery thereof, which time shall be at least 15 days after the giving
of such notice, unless an earlier date shall have been mutually agreed upon.
Upon receipt of such written notice, the Company shall provide the Optionee with
that information required by the applicable state and federal securities laws.
If, after receipt of such information, Optionee desires to withdraw such notice
of exercise, Optionee may withdraw such notice of exercise by notifying the
Company, in writing, prior to the time set forth for delivery of the shares of
Stock. In no event may the Option be exercised after the expiration of its term.
Optionee is under no obligation to exercise an Option or any part thereof.
(a) Payment for Option Stock. The exercise of this Option shall be
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contingent upon receipt by the Company of cash or certified bank check to
its order, shares of the Company's Common Stock or cancellation of a vested
portion of the Stock Option, or any combination of the foregoing in an
amount equal to the full option price of the shares of Stock being
purchased. The Optionee shall have no rights as a shareholder with respect
to any shares covered by his Option until the exercise of the Option and
the date of issuance of a certificate to him for such shares. No adjustment
shall be made for dividends or other rights for which the record date is
prior to the date such certificate is issued.
(b) Delivery of Stock to Optionee. Provided the Optionee has delivered
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proper notice of exercise and full payment of the option price, the Company
shall undertake and follow all necessary procedures to make prompt delivery
of the number of shares of Stock which the Optionee elects to purchase at
the time specified in such notice. Such delivery, however, may be postponed
at the sole discretion of the company to enable the Company to comply with
any applicable procedures, regulations or listing requirements of any
governmental agency, stock exchange or regulatory authority. As a condition
to the issuance of shares of Stock, the Company may require such additional
payments from the Optionee as may be required to allow the Company to
withhold any income taxes which the Company deems necessary to insure the
Company that it can comply with any federal or state income tax withholding
requirements.
8. Changes in Capital Structure of Company. In the event of a change in
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capital structure of the Company, the number of shares covered by the Options
and the price per share shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Stock resulting from the splitting or
consolidation of shares, or the payment of a stock dividend, or effected in any
other manner without receipt of additional or further consideration by the
Company. The Company shall give notice of any adjustment to Optionee.
9. Governing Law. This Agreement shall be governed by, interpreted under, and
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construed in accordance with the laws of the State of Florida.
10. Binding Effect. This Agreement will inure to the benefit of and be binding
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on the Company, its successors and assigns, including but not limited to, any
company or entity that may acquire all or substantially all of the Company's
assets and business or into which the company may be consolidated or merged, and
on Optionee and except as set forth in paragraph 6 above, their heirs, legal
representatives, and successors, as the case may be.
11. Entire Agreement. This Agreement constitutes the entire agreement of the
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parties hereto with respect to the subject matter of this Agreement and
supersedes any and all previous agreements between parties, whether written or
oral, with respect to such subject matter.
12. Waiver of Modification. No waiver or modification of this Agreement or of
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any convenant, condition, or limitation herein contained shall be valid unless
in writing and duly executed by the party to be charged therewith. Furthermore,
no evidence of any waiver or modification shall be offered or received in
evidence in any proceeding, arbitration, or litigation between the parties
arising out of or affecting this Agreement or the rights or obligations of any
party hereunder, unless such waiver or modification is in writing and duly
executed as aforesaid. The provisions of this paragraph may not be waived except
as herein set forth.
13. Number and Gender. Whenever used herein, singular numbers shall include
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the plural, the singular, and the use of any gender shall include all genders.
14. Invalid Provision. The Invalidity or unenforceability of any term or
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provision of this Agreement or the nonapplication of any such term or provision
to any person or circumstance shall not impair or affect the remainder of this
Agreement, and the
remaining terms and provisions hereof shall not be invalidated but shall remain
in full force and effect and shall be construed as if such invalid,
unenforceable, or nonapplicable provision were omitted.
15. Nonqualified Stock Option. This Agreement shall be considered an
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individual employee benefit plan for the Optionee.
IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the
day and year first above written.
"COMPANY" "OPTIONEE"
SAF T LOK INCORPORATED
By:_________________________________ ____________________________________
Xxxxxxxx X. Xxxxxx Xxxxxx Xxxxxxxx
CEO/Chairman of the Board
EXHIBIT "A" TO STOCK OPTION AGREEMENT
NOTICE OF GRANT OF STOCK OPTION
This Agreement shall be considered an individual employee benefit plan for the
Optionee.
Name: Xxxxxx Xxxxxxxx
Address: _______________________________
________________________________
Social Security Number: ###-##-####
You have been granted a stock option to buy Saf T Lok Incorporated common stock
as follows:
Stock Option Grant Date.................................December 11, 1998
Type of Grant*.......................................................NQSO
Exercise Price per Share............................................$1.09
Total Shares Granted..............................................150,000
Total Amount to Fully Exercise...................................$163,500
Expiration Date of the Grant............................December 11, 2008
The vesting schedule for this grant is as follows:
1. The option to purchase 150,000 shares shall vest on January 1, 1999.
By Order of the Board of Directors of Saf T Lok Incorporated
Validated by: __________________________________________________________
Corporate Secretary
*ISO = Qualified Stock Option
NQSO = Nonqualified Stock Option
September 1, 1999
Amendment to Stock Option Agreement
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This is an amendment to the stock option agreement dated December 11, 1998
between Saf T Lok Incorporated and Xxxxxx Xxxxxxxx granting the Optionee the
option to purchase 150,000 shares of Saf T Lok Incorporated common stock at an
exercise price of $1.09 per share (the "Agreement").
The Agreement is amended as follows:
1.a. The section of the Agreement entitled "Investment Representation and
Agreement" shall be modified to read as follows: "Optionee represents that this
Option and any shares purchased pursuant to this Option are purchased for
investment purposes, for Optionee's own account and not for distribution,
resale, assignment, transfer or other disposition except in compliance with
applicable securities laws."
1.b. The following sentences shall be added to the end of the section of the
Agreement entitled "Nonassignability of Option Rights:" "Notwithstanding any
provision of this Agreement to the contrary, Options granted hereunder which
have vested may be assigned to a member of Optionee's immediate family; provided
that: (i) the Optionee provides the Company with written notice of assignment;
(ii) the assignee agrees, in writing, to be bound by the terms of the Option
Agreement with respect to the Option so assigned; and (iii) the assignment does
not conflict with the provisions of applicable Federal or State securities laws.
Upon compliance with the foregoing the assignee shall become the Optionee under
this agreement with respect to the portion of the Option so assigned. For
purposes of this Section, the term "immediate family" shall consist solely of
Optionee's (A) child(ren), (B) spouse or former spouse, (C) stepchild(ren) , (D)
parent(s), (E) sibling(s), (F) stepparent(s), (G) grandchild(ren), (H) mother-
in-law, father-in-law, brother-in-law, sister-in-law, (I) grandparent(s), (J)
niece(s) and nephew(s), (K) any person(s) sharing the Optionee's household
(other than a tenant or employee), and (L) trusts for the exclusive benefit of
any of the foregoing persons."
2. The following sentences shall be added to the end of the section of the
Agreement entitled "Period of Option": "Notwithstanding the foregoing, in the
event of change of control of the Company as a result of which the Optionee
ceases to be a director of the Company or employed by the Company, then all
unvested options shall become fully vested on the day before the effective date
of change in control."
"Company" "Optionee"
Saf T Lok Incorporated
/s/ Xxxxxxxx X. Xxxxxx /s/ Xxxxxx Xxxxxxxx
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Xxxxxxxx X. Xxxxxx, President Xxxxxx Xxxxxxxx
September 29, 1999
Amendment to Stock Option Agreement
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This is an amendment to the stock option agreement dated December 11, 1998
between Saf T Lok Incorporated and Xxxxxx Xxxxxxxx granting the Optionee the
option to purchase 150,000 shares of Saf T Lok Incorporated common stock at an
exercise price of $1.09 per share (the "Agreement").
The Agreement is amended as follows:
1. The section of the Agreement entitled "Exercise of Option" shall be
modified to read as follows: "The Option shall be exercisable only during the
term of the Option."
2. The first sentence in the section of the Agreement entitled
"Nonassignability of Option Rights" shall be modified to read as follows: "The
Option is exercisable only by Optionee or his legal representative, except in
the case of Optionee's death, in which case the Option is exercisable by
Optionee's estate's personal representative and/or Optionee's heirs.
"Company" "Optionee"
Saf T Lok Incorporated
/s/ Xxxxxxxx X. Xxxxxx /s/ Xxxxxx Xxxxxxxx
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Xxxxxxxx X. Xxxxxx, President Xxxxxx Xxxxxxxx
