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Exhibit 4.6
STOCK OPTION AGREEMENT
THIS STOCK OPTION AGREEMENT is made as of the date set forth on the
signature page hereof by and between Universal Electronics Inc., a Delaware
corporation (the "Corporation") and the undersigned Optionee (the "Optionee").
As used in this Agreement, the term "Corporation" shall include, where
applicable, any and all of its subsidiaries or related entities.
WHEREAS, the stockholders of the Corporation at the annual shareholder
meeting and the Board of Directors of the Corporation (the "Board") have
approved the Universal Electronics Inc. 1999 Stock Incentive Plan (the "Plan");
WHEREAS, the Board has designated the Compensation Committee of the
Board (the "Committee") to serve as the Committee to administer the Plan; and
WHEREAS, the Committee has determined that the Optionee, as an Eligible
Employee, should be granted a stock option ("Option") under the Plan to purchase
shares of the Corporation's common stock, par value $0.01 per share (the
"Stock"), upon the terms and conditions set forth in this Agreement;
NOW, THEREFORE, the parties, intending to be legally bound, hereto
agree as follows:
1. GRANT AND DESIGNATION OF OPTION. Upon the execution and delivery of
this Agreement and the related Stock Option Certificate of even date herewith
(the "Certificate"), the Corporation hereby grants to the Optionee the Option to
purchase the aggregate number of shares of Stock set forth on the Certificate at
the price per share ("Option Price") further set forth on the Certificate.
2. TERM AND EXERCISE OF OPTION. Subject to earlier termination,
acceleration or cancellation of the Option as provided herein, the term of the
Option shall be for that period of time also set forth on the Certificate (the
"Option Period") and, subject to the provisions of this Agreement, the Option
shall be exercisable at such times and as to such number of shares as determined
on the schedule set forth on the Certificate.
3. METHOD OF EXERCISE. The Option may be exercised by written notice to
the Corporation (the "Exercise Notice") at its offices at 0000 Xxxxxxx Xxxxx,
Xxxxxxx, Xxxxxxxxxx 00000 to the attention of the Secretary of the Corporation.
The Exercise Notice shall state (a) the election to exercise the Option, (b) the
total number of full shares in respect to which it is being exercised, and (c)
shall be signed by the person or persons exercising the Option. The Exercise
Notice shall be accompanied by the Certificate and a certified or cashier's
check for the full amount of the purchase price of such shares plus an amount
necessary to satisfy Optionee's obligations pursuant to Paragraph 11, or as may
be permitted by the Committee, by certificates for shares of Stock which have
been owned by the Optionee for more than six months prior to the date of
exercise and which have a fair market value of the date of exercise equal to the
purchase price, or by a combination of such methods of payment. Upon receipt of
the foregoing, the Corporation shall issue the shares of Stock as to which the
Option has been duly exercised and shall return the Certificate, duly endorsed
to reflect such exercise, to the Optionee. In a cashless exercise, as permitted
under Federal Reserve Board's Regulation T, subject to applicable securities law
restrictions, Optionee must notify the Corporation as to the manner of the
transaction.
4. OPTIONEE'S COVENANTS AND REPRESENTATIONS.
(a) Optionee represents and warrants that any and all shares
acquired through the exercise of rights under the Option granted pursuant to
this Agreement will be acquired for Optionee's own account and not with a view
to, or present intention of, distribution thereof in violation of the Securities
Act of 1933, as amended and the rules and regulations promulgated thereunder
(the "1933 Act") and will not be disposed of in contravention of the 1933 Act.
(b) Optionee acknowledges that Optionee is able to bear the economic
risk of the investment in any and all shares of Stock acquired through the
exercise of
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rights under the Option for an indefinite period of time because the Stock has
not been registered under the 1933 Act and, therefore, cannot be sold unless
subsequently registered under the 1933 Act or an exemption from such
registration is available.
(c) Optionee has reviewed this Agreement and has had an opportunity
to ask questions and receive answers concerning the terms and conditions of the
offering of Stock and has had full access to such other information concerning
the Corporation as Optionee has requested.
(d) Optionee agrees that if Optionee should dispose of any Shares
acquired upon the exercise of an Incentive Stock Option, including a disposition
by sale, exchange, gift or transfer of legal title within two (2) years after
the date such Option was granted to the Optionee or within one (1) year after
the transfer of such Shares to the Optionee upon the exercise of such Option,
the Optionee shall notify the Company within three (3) days after such
disposition.
5. RESTRICTION ON EXERCISE. This Option may not be exercised if the
issuance of such shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation. As a condition to the
exercise of this Option, the Corporation may require Optionee to make any
representation and warranty to the Corporation as may be required by any
applicable law or regulation. All exercises of the Option must be for full
shares of Stock only.
6. EFFECT OF TERMINATION OF EMPLOYMENT. Except as set forth in
Paragraphs 7 and 8 below and subject to the limitations set forth in
subparagraph 9(b), in the event that Optionee's employment with the Corporation
ceases for any reason, Optionee may (or Optionee's estate or representative, in
the event of Optionee's death during the applicable exercise period as set forth
in Paragraph 8), during the earlier of (a) the ninety (90) day period following
such cessation of employment or (b) the remaining term of the Option Period,
exercise the Option to the extent such Option was exercisable on the date such
employment ceased and, on such date, that portion of the Option which was not
exercisable shall automatically terminate without further action by the parties
hereto and, in all events, to the extent not exercised, the Option shall
terminate in its entirety at the end of business on the last day of the
applicable exercise period as set forth in this Paragraph 6; PROVIDED, HOWEVER,
the Committee, in its sole discretion, may approve the full vesting to Optionee
(or Optionee's estate or representative, in the event of Optionee's death) in
the Option and, in such event, to the extent not previously exercised, the
Option shall be exercisable in whole or in part with respect to all remaining
shares of Stock covered the Option and may be exercised by Optionee (or
Optionee's estate or representative, in the event of Optionee's death) at any
time prior to the expiration of the original Option Period.
7. EFFECT OF TERMINATION OF EMPLOYMENT WITHOUT CAUSE OR DUE TO
CONSTRUCTIVE TERMINATION.
(a) In the event that Optionee's employment with the Corporation is
terminated by the Corporation without "Cause" (as such term is defined in
subparagraph 7(b) below) or in the event of "Constructive Termination" (as such
term is defined in subparagraph 7(c) below), Optionee shall become immediately
fully vested in the Option without further action by the parties hereto, and, to
the extent not previously exercised, shall be exercisable in whole or in part
with respect to all remaining shares of Stock covered by the Option and may be
exercised by Optionee (or Optionee's estate or representative, in the event of
Optionee's death) at any time prior to the expiration of the original Option
Period, subject to the limitations set forth in subparagraph 9(b).
(b) For purposes of this Agreement, "Cause" shall mean (i) the
willful and continued failure by Optionee to substantially perform Optionee's
duties with the Corporation (other than a failure resulting from Optionee's
death or "Total Disability" (as such term is defined in subparagraph 7(e)
below)) after a demand for substantial performance is delivered to Optionee by
the Corporation which specifically identifies the manner in which it is believed
that Optionee has not substantially performed Optionee's duties; (ii) the
willful engaging by Optionee in gross misconduct materially and demonstrably
injurious to the property or business of the Corporation; or (iii) Optionee's
commission of fraud, misappropriation or a felony. For purposes of this
definition of "Cause", no act or failure to act on Optionee's part will be
considered "willful" unless done, or omitted to be done, by Optionee not in good
faith
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and without a reasonable belief that Optionee's action or omission was in the
interests of the Corporation or not opposed to the best interests of the
Corporation.
(c) For purposes of this Agreement, "Constructive Termination" shall
occur on that date on which Optionee resigns from employment with the
Corporation, if such resignation occurs within eighteen (18) months after the
occurrence of (i) the failure of Optionee to be elected or re-elected or
appointed or reappointed to such office that Optionee holds (other than as a
result of a termination for "Cause") if Optionee is an officer of the
Corporation and the office which Optionee holds is one to which Optionee is
elected according to the Corporation's By-laws; (ii) a change in Optionee's
functions, duties, or responsibilities such that Optionee's position with the
Corporation becomes substantially less in responsibility, importance, or scope;
or (iii) a "Change in Control" (as such term is defined in subparagraph 7(d)
below).
(d) For purposes of this Agreement, a "Change in Control" shall be
deemed to occur when (i) any "person" or "group" (as such terms are used in
Sections 3(a), 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder (the "1934 Act")),
other than (1) a trustee or other fiduciary holding securities under any
employee benefit plan of the Corporation or (2) a corporation owned directly or
indirectly by the stockholders of the Corporation in substantially the same
proportions as their ownership of Stock in the Corporation immediately prior to
any such occurrence, is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of securities of the
Corporation representing 20% or more of the total voting power of the then
outstanding securities of the Corporation entitled to vote generally in the
election of directors (the "Voting Stock"); (ii) individuals who are members of
the Board on the date of this Agreement and any individual who becomes a member
of the Board hereafter whose nomination for election as a director was approved
by the affirmative vote of a majority of such directors (including any
non-director added pursuant to this clause), cease to constitute a majority of
the members of the Board; (iii) there occurs a merger or consolidation of the
Corporation with any other corporation or entity, other than a merger or
consolidation which would result in the Voting Stock of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least 80% of the total voting power represented by the
Voting Stock or the voting securities of such surviving entity outstanding
immediately after such merger or consolidation; (iv) there occurs a sale or
transfer or disposition of all or substantially all of the Corporation's assets
to any other corporation or entity, other than a corporation owned directly or
indirectly by the stockholders of the Corporation in substantially the same
proportions as their ownership of Stock in the Corporation immediately prior to
such sale, transfer or disposition; or (v) the dissolution or liquidation of the
Corporation.
(e) For purposes of this Agreement, "Total Disability" shall mean an
event of illness or other incapacity of Optionee resulting in Optionee's failure
or inability to discharge Optionee's duties as an employee of the Corporation
for ninety (90) or more days during any period of 120 consecutive days.
8. EFFECT OF TERMINATION OF EMPLOYMENT DUE TO DEATH OR TOTAL
DISABILITY. In the event that Optionee's employment with the Corporation ceases
or is terminated due to Optionee's death or Total Disability, Optionee (or
Optionee's estate or representative, in the event of Optionee's death) may,
subject to the limitations set forth in subparagraph 9(b), during the earlier of
(a) the one (1) year period following such cessation or termination of
employment or (b) the remaining term of the Option Period, exercise the Option
to the extent such Option was exercisable on the date such employment ceased or
was terminated and, on such date, that portion of the Option which was not
exercisable shall automatically terminate without further action by the parties
hereto and, in all events, to the extent not exercised, the Option shall
terminate in its entirety at the end of business on the last day of the
applicable exercise period as set forth in this Paragraph 8; PROVIDED, HOWEVER,
the Committee, in its sole discretion, may approve the full vesting to Optionee
(or Optionee's estate or representative, in the event of Optionee's death) in
the Option and, in such event, to the extent not previously exercised, the
Option shall be exercisable in whole or in part with respect to all remaining
shares of Stock covered the Option and may be exercised by Optionee (or
Optionee's estate or representative, in the event of Optionee's death) at any
time prior to the expiration of the original Option Period.
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9. LIMITATIONS ON EXERCISE OF INCENTIVE STOCK OPTION.
(a) Notwithstanding the foregoing, any Incentive Stock Option granted
pursuant to this Agreement is exercisable only to the extent that the aggregate
fair market value (determined at the time such Incentive Stock Option is
granted) of the Stock with respect to which such Incentive Stock Option first
become exercisable during any calendar year does not exceed $100,000 (the
"$100,000 Exercise Limitation"); PROVIDED, HOWEVER, that (i) if the aggregate
fair market value of the Stock with respect to which such Incentive Stock
Options first became exercisable exceeds the $100,000 Exercise Limitation the
maximum number of whole shares of Stock with an aggregate fair market value not
in excess of $100,000 shall be treated as Stock issued pursuant to an Incentive
Stock Option and the remaining aggregate fair market value in excess of such
amount shall be treated as Stock issued pursuant to a non-qualified stock option
and (ii) the $100,000 Exercise Limitation shall not apply if the Option no
longer qualifies as an Incentive Stock Option as a result of the failure of the
Optionee to exercise the Option within the three (3) month period contained in
subparagraph 9(b) below.
(b) IN THE CASE OF AN INCENTIVE STOCK OPTION, THE OPTION MUST BE
EXERCISED IN FULL WITHIN THREE (3) MONTHS AFTER CESSATION OF EMPLOYMENT OR SUCH
OPTION WILL NO LONGER QUALIFY AS AN INCENTIVE STOCK OPTION AND SHALL THEREAFTER
BE, AND RECEIVE THE TAX TREATMENT APPLICABLE TO, A NON-QUALIFIED STOCK OPTION.
10. RIGHT OF A STOCKHOLDER. Optionee shall not have any rights as a
stockholder with respect to any shares of Stock unless and until appropriate
certificates for such shares of such Stock are issued.
11. WITHHOLDING OF TAXES. Whenever the Corporation is required to issue
shares of Stock upon exercise hereunder, the Corporation shall have the right to
require the recipient to remit in cash to the Corporation an amount sufficient
to satisfy any federal, state and/or local withholding tax requirements prior to
the delivery of any certificate or certificates for such shares of Stock.
12. ADJUSTMENTS. In the event of any change in the outstanding shares
of Stock of the Corporation by reason of a stock dividend or distribution,
recapitalization, spin-off, merger, consolidation, split-up, combination,
exchange of shares or the like, the Committee shall adjust the number of shares
of Stock which may be issued under the Plan and shall provide for an equitable
adjustment of any outstanding Option or shares of Stock issuable pursuant to an
outstanding Option under the Plan.
13. COMPLIANCE WITH CERTAIN LAWS AND REGULATIONS. If the Committee
shall determine, in its sole discretion, that the listing, registration or
qualification of the shares subject to the Option upon any securities exchange
or under any law or regulation, or that the consent or approval of any
governmental regulatory body is necessary or desirable in connection with the
granting of the Option or the acquisition of shares thereunder, the Optionee
shall supply the Committee or the Corporation, as the case may be, with such
certificates, representations and information as the Committee or the
Corporation, as the case may be, may request and shall otherwise cooperate with
the Corporation in obtaining any such listing, registration, qualification,
consent or approval.
14. TRANSFERABILITY OF OPTION. The Option is not transferable by the
Optionee otherwise than by will or by the laws of descent and distribution and
is exercisable, during the Optionee's lifetime, only by the Optionee, or in the
case of Optionee's legal incompetency, only by Optionee's guardian or legal
representative.
15. ADDITIONAL RESTRICTIONS ON TRANSFER. The certificates representing
the Stock purchased upon the exercise of the Option will bear the following
legend until such shares of Stock have been registered under an effective
registration statement under the 1933 Act:
The securities represented by this certificate were originally issued
on _____________________, _____, have not been registered under the
Securities Act of 1933, as amended, or under the securities laws of any
state or other jurisdiction (together, the "Securities Laws") and may
not be offered for sale, sold or otherwise transferred or encumbered in
the absence of compliance with such Securities Laws and until the
issuer hereof shall have received from counsel acceptable to issuer a
written
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opinion reasonably satisfactory to issuer that the proposed transaction
will not violate any applicable Securities Laws.
16. NOTICES. Any notice or demand provided for in this Agreement must
be in writing and must be either personally delivered, delivered by overnight
courier, or mailed by first class mail, to the Optionee at Optionee's most
recent address on file in the records of the Corporation, and to the Corporation
at the address set forth or established pursuant to Paragraph 3 or to such other
address or to the attention of such other person as the recipient party shall
have specified by prior written notice to the sending party. Any notice or
demand under this Agreement will be deemed to have been given when received.
17. SEVERABILITY. This Agreement and each provision hereof shall be
valid and enforced to the fullest extent permitted by law. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision. Without limiting the
generality of the foregoing, if the scope of any provision contained in this
Agreement is too broad to permit enforcement to its fullest extent, such
provision shall be enforced to the maximum extent permitted by law, and the
parties hereby agree that such scope may be judicially modified accordingly.
18. COMPLETE AGREEMENT. This Agreement and those documents expressly
referred to herein embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related
to the subject matter hereof in any way.
19. COUNTERPARTS. This Agreement may be executed in separate
counterparts, each of which shall be deemed an original and all of which taken
together shall constitute one and the same agreement.
20. SUCCESSORS AND ASSIGNS. This Agreement is intended to bind and
inure to the benefit of and be enforceable by Optionee, the Corporation and
their respective permitted successors and assigns (including personal
representatives, heirs and legatees), and is intended to bind all successors and
assigns of the respective parties, except that Optionee may not assign any of
Optionee's rights or obligations under this Agreement except to the extent and
in the manner expressly permitted hereby.
21. REMEDIES. Each of the parties to this Agreement will be entitled to
enforce its rights under this Agreement specifically, to recover damages by
reason of any breach of any provision of this Agreement and to exercise all
other rights existing in its favor. The parties hereto agree and acknowledge
that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may, in its sole discretion,
apply to any court of law or equity of competent jurisdiction for specific
performance and/or injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement, without the necessity of posting
bond or any other security.
22. WAIVER OR MODIFICATION. Any waiver or modification of any of the
provisions of this Agreement shall not be valid unless made in writing and
signed by the parties hereto. A waiver by either party of any breach of this
Agreement shall not operate as a waiver of any subsequent breach.
IN WITNESS WHEREOF, the parties have executed this Agreement effective
on the ____ day of ______________, ______.
OPTIONEE UNIVERSAL ELECTRONICS INC.
__________________________ By:________________________
Signature Its: Chairman and Chief
Executive Officer
__________________________
Print Name
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Certificate Number: ____
UNIVERSAL ELECTRONICS INC.
1999 STOCK INCENTIVE PLAN
STOCK OPTION CERTIFICATE
------------------------
THIS CERTIFIES THAT ____________has been awarded an OPTION to purchase
__________ (_____) shares of common stock, par value $0.01 per share (the
"Stock"), of UNIVERSAL ELECTRONICS INC. This Certificate is issued in accordance
with and is subject to the terms and conditions of the related Stock Option
Agreement of even date herewith (the "Agreement"). The number of shares of Stock
subject to an Incentive Stock Option, the number of shares of Stock subject to a
Non-qualified Stock Option, and the respective Option prices are as set forth
below:
(a) ____________________ (_____) shares of Stock shall be subject
to an Incentive Stock Option at an Option price of $_____ per
share; and
(b) ____________________ (_____) shares of Stock shall be subject
to a Non-qualified Stock Option at an Option price of $_____
per share.
THIS OPTION is not transferable except in accordance with the terms and
conditions of the Agreement.
THIS OPTION shall expire ten (10) years from the date of this
Certificate.
THIS OPTION shall be exercisable as to all or a portion of the number
of shares set forth above as follows:
Incentive Stock Option Non-qualified Stock Option
On and After the Following Maximum Percentage Taking Maximum Percentage Taking
Dates, But Prior to Into Account Prior Into Account Prior
Expiration Exercises Exercises
__/__/__ 33% 33%
__/__/__ 67% 67%
__/__/__ 100% 100%
IN WITNESS WHEREOF, UNIVERSAL ELECTRONICS INC. has caused this Stock
Option Certificate to be signed by its duly authorized officer the ____ day of
______, ____.
UNIVERSAL ELECTRONICS INC.
By:_____________________________________
Its: Chairman and Chief Executive
Officer
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