Exhibit 4.6
SSP SOLUTIONS, INC.
AMENDED AND RESTATED 1999 STOCK OPTION PLAN
INCENTIVE STOCK OPTION AGREEMENT
This Option Agreement (this "Agreement") is made and entered into by and
between SSP Solutions, Inc., a Delaware corporation ("Company") and
_______________ ("Optionee"), as of ___________, 2001 ("Date of Grant"). If the
Optionee is presently or subsequently becomes employed by a subsidiary of the
Company, the term "Company" shall be deemed to refer collectively to SSP
Solutions, Inc. and the subsidiary or subsidiaries that employs the Optionee.
RECITALS
A. The Board of Directors of the Company has adopted the SSP Solutions,
Inc. Amended and Restated 1999 Stock Option Plan ("Plan") as an incentive to
retain key employees, officers, directors, and consultants of the Company and to
enhance the ability of the Company to attract new employees, officers,
directors, and consultants whose services are considered unusually valuable by
providing an opportunity to have a proprietary interest in the success of the
Company.
B. The Committee established to administer the Plan ("Committee") has
approved the granting of options to the Optionee pursuant to the Plan to provide
an incentive to the Optionee to focus on the long-term growth of the Company.
In consideration of the mutual covenants and conditions hereinafter set
forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Optionee agree as follows:
1. GRANT OF OPTION. The Company hereby grants to the Optionee the right
and option ("Option") to purchase an aggregate of _____________ shares (such
number being subject to adjustment as provided in paragraph 10 below and Section
13 of the Plan) of the Common Stock of SSP Solutions, Inc. ("Stock") on the
terms and conditions herein set forth. This Option may be exercised in whole or
in part and from time to time as hereinafter provided. The Option granted under
this Agreement is intended to be an "incentive stock option" as set forth in
Section 422 of the Internal Revenue Code of 1986, as amended ("Code").
2. VESTING OF OPTION. The Option shall vest and become exercisable in
accordance with the schedule below:
On the Date of Grant, _______ shares of Common Stock subject to the
Option shall be immediately vested and exercisable. On each
___________ thereafter, provided Optionee is still in the employ of
the Company as contemplated by the Plan, an additional __________
shares of Common Stock subject to the Option shall become vested and
exercisable. On _______________, the final _______ shares of Common
Stock subject to the Option shall become vested and exercisable, at
which time 100% of the shares of Common Stock subject to the Option
shall be vested and exercisable.
-1-
3. PURCHASE PRICE. The price at which the Optionee shall be entitled to
purchase the Stock covered by the Option shall be $_____ per share, which price
is 100% of the Fair Market Value (as defined in the Plan) of the Stock on the
Date of Grant.
4. TERM OF OPTION. The Option granted under this Agreement shall expire,
unless otherwise exercised, ten years from the Date of Grant, through and
including the normal close of business of the Company on _________, 2011
("Expiration Date"), subject to earlier termination as provided in paragraph 8
below.
5. EXERCISE OF OPTION. The Option may be exercised by the Optionee as to
all or any part of the Stock then vested by delivery to the Company of written
notice of exercise and payment of the purchase price as provided in paragraphs 6
and 7 below.
6. METHOD OF EXERCISING OPTION. Subject to the terms and conditions of
this Agreement, the Option may be exercised by timely delivery to the Company of
written notice, which notice shall be effective on the date received by the
Company ("Effective Date"). The notice shall state the Optionee's election to
exercise the Option, the number of shares in respect of which an election to
exercise has been made, the method of payment elected (see paragraph 7 below),
the exact name or names in which the shares will be registered and the taxpayer
identification number of the Optionee. The notice shall be signed by the
Optionee and shall be accompanied by payment of the purchase price of such
shares. If the Option is exercised by a person or persons other than Optionee
pursuant to paragraph 8 below, the notice shall be signed by the other person or
persons and shall be accompanied by proof acceptable to the Company of the legal
right of the person or persons to exercise the Option. All shares delivered by
the Company upon exercise of the Option shall be fully paid and nonassessable
upon delivery.
7. METHOD OF PAYMENT FOR OPTIONS. Payment for shares purchased upon the
exercise of the Option shall be made by the Optionee in cash or such other
method permitted by the Committee and communicated to the Optionee in writing
prior to the date the Optionee exercises all or any portion of the Option.
8. TERMINATION OF EMPLOYMENT.
(a) GENERAL. If the Optionee terminates employment for any other
reason than for Cause (as that term is defined in the Plan) or voluntary
resignation of any agreement to remain in the employ of the Company, then
the Optionee may at any time within three months after the effective date
of termination of employment exercise the Option to the extent that the
Optionee was entitled to exercise the Option at the date of termination,
provided that in no event shall the Option be exercisable after the
Expiration Date. If the Optionee terminates employment for Cause or
voluntary resignation of any agreement to remain in the employ of the
Company, the Optionee may at any time within 30 days after the effective
date of such termination of employment exercise the Option to the extent
that the Optionee was entitled to exercise the Option at the date of
termination, provided that in no event shall the Option, or any part
thereof, be exercisable after the Expiration Date.
(b) DEATH OR DISABILITY OF OPTIONEE. In the event of the death or
Disability (as that term is defined in the Plan) of the Optionee within a
period during which the Option, or any part thereof, could have been
exercised by the Optionee, including three months after termination of
employment other than for Cause or voluntary resignation of any agreement
to remain in the employ of the Company ("Option Period"), the Option shall
lapse unless it is exercised within the Option Period and in no event
later than 12 months after the date of the Optionee's death or Disability
by the Optionee or the Optionee's legal representative or representatives
in the case of
-2-
a Disability or, in the case of death, by the person or persons entitled
to do so under the Optionee's last will and testament or if the Optionee
fails to make a testamentary disposition of the Option or shall die
intestate, by the person or persons entitled to receive the Option under
the applicable laws of descent and distribution. An Option may be
exercised following the death or Disability of the Optionee only if the
Option was exercisable by the Optionee immediately prior to his death or
Disability. In no event shall the Option be exercisable after the
Expiration Date. The Committee shall have the right to require evidence
satisfactory to it of the rights of any person or persons seeking to
exercise the Option under this paragraph 8 to exercise the Option.
9. NONTRANSFERABILITY. The Option granted by this Option Agreement shall
be exercisable only during the term of the Option provided in paragraph 4 above
and, except as provided in paragraph 8 above, only by the Optionee during his
lifetime and while an Optionee of the Company. This Option shall not be
transferable by the Optionee or any other person claiming through the Optionee,
either voluntarily or involuntarily, except by will or the laws of descent and
distribution or such other events as are set forth in the Plan.
10. ADJUSTMENTS IN NUMBER OF SHARES AND OPTION PRICE. In the event of a
stock dividend or if the Stock is changed into or exchanged for a different
number or class of shares of stock of the Company or of another corporation,
whether through reorganization, recapitalization, stock split-up, combination of
shares, merger or consolidation, there shall be substituted for each remaining
share of Stock then subject to this Option the number and class of shares of
stock into which each outstanding share of Stock is to be so exchanged, all
without any change in the aggregate purchase price for the shares then subject
to the Option, all as set forth in Section 13 of the Plan.
11. DELIVERY OF SHARES. No shares of Stock shall be delivered upon
exercise of the Option until (i) the purchase price has been paid in full in the
manner herein provided; (ii) applicable taxes required to be withheld have been
paid or withheld in full; (iii) approval of any governmental authority required
in connection with the Option, or the issuance of shares thereunder, has been
received by the Company; and (iv) if required by the Committee, the Optionee has
delivered to the Committee an Investment Letter in form and content satisfactory
to the Company as provided in paragraph 12 below.
12. SECURITIES ACT. The Company shall not be required to deliver any
shares of Stock pursuant to the exercise of all or any part of the Option if, in
the opinion of counsel for the Company, the issuance would violate the
Securities Act of 1933 or any other applicable federal or state securities laws
or regulations. The Committee may require that the Optionee, prior to the
issuance of any shares pursuant to exercise of the Option, sign and deliver to
the Company a written statement ("Investment Letter") stating (i) that the
Optionee is purchasing the shares for investment and not with a view to the sale
or distribution thereof; (ii) that the Optionee will not sell any shares
received upon exercise of the Option or any other shares of the Company that the
Optionee may then own or thereafter acquire except either (a) through a broker
on a national securities exchange or (b) with the prior written approval of the
Company; and (iii) containing such other terms and conditions as counsel for the
Company may reasonably require to assure compliance with the Securities Act of
1933 or other applicable federal or state securities laws and regulations. The
Investment Letter shall be in form and content acceptable to the Committee in
its sole discretion.
13. FEDERAL AND STATE TAXES. Upon exercise of the Option, or any part
thereof, the Optionee may incur certain liabilities for federal, state or local
taxes and the Company may be required by law to withhold taxes for payment to
taxing authorities. Upon determination by the Company of the amount of taxes
required to be withheld, if any, with respect to the shares to be issued
pursuant to the exercise of the Option, the Optionee shall pay all federal state
and local tax withholding requirements to the Company.
-3-
14. DEFINITIONS; COPY OF PLAN. To the extent not specifically provided
herein, all capitalized terms used in this Agreement have the same meanings
ascribed to them in the Plan. By the execution of this Agreement, the Optionee
acknowledges receipt of a copy of the Plan.
15. ADMINISTRATION. This Agreement shall at all times be subject to the
terms and conditions of the Plan and the Plan shall in all respects be
administered by the Committee in accordance with the terms of and as provided in
the Plan. The Committee shall have the sole and complete discretion with respect
to all matters reserved to it by the Plan and decisions of the majority of the
Committee with respect thereto and to this Option Agreement shall be final and
binding upon the Optionee and the Company. In the event of any conflict between
the terms and conditions of this Agreement and the Plan, the provisions of the
Plan shall control.
16. CONTINUATION OF EMPLOYMENT. This Agreement shall not be construed to
confer upon the Optionee any right to continue in the employ of the Company and
shall not limit the right of the Company, in its sole discretion, to terminate
the employment of the Optionee at any time.
17. ACCELERATION OF VESTING. Notwithstanding the vesting schedule set
forth in Paragraph 2, this Option is subject to Section 6.4 of Optionee's
Executive Employment Agreement dated August 16, 2001 between Optionee and the
Company which provides for the acceleration of vesting upon the occurrence of
certain specified events.
18. OBLIGATION TO EXERCISE. The Optionee shall have no obligation to
exercise any option granted by this Agreement.
19. GOVERNING LAW. This Agreement shall be interpreted and administered
under the laws of the State of California.
20. AMENDMENTS. This Agreement may be amended only by a written agreement
executed by the Company and the Optionee. The Company and the Optionee
acknowledge that changes in federal tax laws enacted subsequent to the Date of
Grant, and applicable to stock options, may provide for tax benefits to the
Company or the Optionee. In that event, the Company and the Optionee agree that
this Agreement may be amended as necessary to secure for the Company and the
Optionee any benefits that may result from that legislation. Any amendment shall
be made only upon the mutual consent of the parties, which consent (of either
party) may be withheld for any reason.
21. TAX INFORMATION AND NOTICE OF DISQUALIFYING DISPOSITION. This Option
is intended to be eligible for treatment as an Incentive Stock Option under
Section 422 of the Code. Whether this Option will receive that tax treatment
will depend, in part, on the actions by the Optionee after exercise of this
Option. For example, if the Optionee disposes of any of the Stock acquired under
this Option within two years after the Date of Grant or within one year of the
date of exercise of this Option, the Optionee may lose the benefits of Code
Section 422. Accordingly, the Company makes no representations by way of the
Plan, this Agreement, or otherwise, with respect to the actual tax consequences
of the grant or exercise of this Option or the subsequent disposition of the
Stock acquired under this Option.
If the Optionee sells or makes a disposition (within the meaning of
Section 422 of the Code) of any of the Stock acquired under this Option prior to
the later of (i) one year from the date of exercise of this Option, or (ii) two
years from the Date of Grant, the Optionee agrees to give written notice to the
Company of the disposition. The notice shall include the Optionee's name, the
number, exercise price and exercise date of the shares of Stock disposed of, and
the date of disposition.
-4-
IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its officers thereunto duly authorized and the Optionee has hereunto
set his or her hand as of the date first written above.
SSP SOLUTIONS, INC. OPTIONEE
By:______________________________ ____________________________________
[NAME OF OPTIONEE]
-5-
