EXHIBIT 10.22
STOCK OPTION AGREEMENT
Stock Option Agreement made as of the 1st day of May, 2000 (the "Grant
Date), between US WATS, Inc. (the "Company"), and XXXX XXXXXXX ("Optionee").
WHEREAS, the Company desires to afford the Optionee an opportunity to
purchase shares of common stock of the Company ("Common Shares") as hereinafter
provided.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth and for other good and valuable consideration the legal sufficiency of
which is hereby acknowledged, the parties hereto, intending to be legally bound
hereunder, agree as follows:
1. Grant of Option. The Company hereby grants to the Optionee the right
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and option (the "Option") to purchase all or any part of an aggregate
of 500 Common Shares.
2. Purchase Price. The purchase price per share of the Common Shares
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covered by the Option shall be $1.25
3. Term. Unless earlier terminated pursuant to any provision of the Plan
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or this Option Agreement, this Option shall expire on May 1, 2003 (the
"Expiration Date").
3. Exercise of Option. The Options are exercisable as follows:
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Number of Shares Date Exercisable
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500 May 1, 2001
The Options shall remain exercisable, subject to the provision of
this Option Agreement, until the expiration of the term of this
Option as set forth in Paragraph 3 or until other termination of
the option.
5. Method of Exercising Option. Subject to the terms and conditions of this
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Option Agreement, the Option may be exercised upon written notice to the
Company, at its principal office, which is located at 3331 Street Road, 0
Xxxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxxxxxxx 00000. Such notice (a
suggested form of which is attached as Exhibit A) shall state the election
to exercise the Option and the number of shares with respect to which it is
being exercised; shall be signed by the Optionee; shall, if the Company so
requests, be accompanied by the investment certificate referred to in
Paragraph 6 hereof; and shall be accompanied by payment of the full Option
price of such shares.
The Option price shall be paid to the Company in cash.
Upon receipt of such notice and payment, the Company, as promptly as
practicable, shall deliver or cause to be delivered a certificate or
certificates representing the shares with respect to which the Option is so
exercised. The certificate or certificates for the shares as to which the
Option shall been so exercised shall be registered in the name of the
Optionee and shall be delivered as provided above to or upon the written
order of the Optionee. All shares that shall be purchased upon the exercise
of the Option as provided herein shall be fully paid and non-assessable by
the Company.
6. Shares to be Purchased for Investment. Unless the Company has heretofore
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notified the Optionee that a registration statement covering the shares to
be acquired upon the exercise of the Option has become effective under the
Securities Xxx 0000 and the Company has not thereafter notified the
Optionee that such registration is no longer effective, it shall be a
condition to any exercise of this Option that the shares acquired upon such
exercise be acquired for investment and not with a view of distribution,
and the person effecting such exercise shall submit to the Company a
certificate of such investment intent, together with such other
evidence supporting the same as the Company may request. The Company
shall be entitled to restrict the transferability of the shares issued
upon any such exercise to the extent necessary to avoid a risk of
violation of the Securities Act of 1933 (or of any rules or
regulations promulgated thereunder) or of any state laws or
regulations. Such restrictions may, at the option of the Company, be
noted or set forth in full on the share certificates.
7. Non-Transferability of Option. This Option is not assignable or
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transferable, in whole or in part, by the Optionee.
8. Corporate Transactions. In the event of a corporate transaction ( as
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that term is described in section 424(a) of the Internal Revenue Code
of 1986, as amended and the Treasury Regulations issued thereunder, as
for example, a merger, consolidation, acquisition of property of
stock, separation, reorganization or liquidation), each outstanding
Option shall be assumed by the surviving or successor corporation. The
Corporation's Board of Directors, in its discretion, may accelerate,
in whole or in part, the date on which any outstanding Options become
exercisable. The Board of Directors also, may, in its discretion,
change the terms of any outstanding Option to reflect any such
corporate transaction.
9. Withholding of Taxes. The obligation of the Company to deliver Common
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Shares upon the exercise of the Option shall be subject to applicable
federal, state and local tax withholdings requirements.
10. Determinations. The Optionee hereby agrees to accept as binding,
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conclusive and final all decisions and interpretations of the Board
and the Committee as to any questions arising under the Options
Agreement.
11. Governing Law. This Option Agreement shall be construed in accordance
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with, and its interpretation shall be governed by applicable federal
law, and otherwise by the laws of the State of New York.
12. Financial Information. The Company will comply with Section 240.140.46 of
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Title 10, California Administrative Code, which requires the Company to
deliver financial statements at least annually to the OPtionee.
IN WITNESS WHEREOF, the Company has caused this Stock Option Agreement to be
duly executed by its officers thereunto duly authorized, and the Optionee has
hereunto set his hand and seal, as of the date below signed.
[Corporate Seal] US WATS, Inc.
Attest:__________________________ By:___________________________
Xxxxxxx XxXxxxxx
Chief Financial Officer
Date: 5/1/00
OPTIONEE
RBHL
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Witness Date: 05-12-00