GAIN CAPITAL HOLDINGS, INC. 2010 OMNIBUS INCENTIVE COMPENSATION PLAN INCENTIVE STOCK OPTION GRANT
EXHIBIT
10.4
GAIN CAPITAL HOLDINGS, INC.
2010 OMNIBUS INCENTIVE COMPENSATION PLAN
2010 OMNIBUS INCENTIVE COMPENSATION PLAN
This INCENTIVE STOCK OPTION GRANT AGREEMENT (the “Agreement”), dated as of __________ ___,
20__ (the “Date of Grant”), is delivered by GAIN Capital Holdings, Inc. (the “Company”) to
_______________ (the “Grantee”).
RECITALS
A. The GAIN Capital Holdings, Inc. 2010 Omnibus Incentive Compensation Plan (the “Plan”)
provides for the grant of options to purchase shares of common stock of the Company. The Board of
Directors of the Company (the “Board”) has decided to make a stock option grant as an inducement
for the Grantee to promote the best interests of the Company and its stockholders. A copy of the
Plan is available on the Company’s intranet site at xxxx://xxxxxxxx/xxxxxxx.xxxx.
B. The Board is authorized to appoint a committee to administer the Plan. If a committee is
appointed, all references in this Agreement to the “Board” shall be deemed to refer to the
committee.
NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as
follows:
1. Grant of Option.
(a) Subject to the terms and conditions set forth in this Agreement and in the Plan, the
Company hereby grants to the Grantee an incentive stock option (the “Option”) to purchase ____
shares of common stock of the Company (“Shares”) at an exercise price of $_____ per Share. The
Option shall become exercisable according to Paragraph 2 below.
(b) The Option is designated as an incentive stock option, as described in Paragraph 5 below.
However, if and to the extent the Option exceeds the limits for an incentive stock option, as
described in Paragraph 5, the Option shall be a nonqualified stock option.
2. Exercisability of Option.
(a) Except as otherwise provided in subparagraph 2(b) below, the Option shall become
exercisable on the following dates, if the Grantee is employed by, or providing service to, the
Employer (as defined in the Plan) on the applicable vesting date (each, a “Vesting Date”):
| Shares for Which the Option is | ||
| Vesting Date | Exercisable on the Vesting Date | |
| _________________ | _________________________ | |
| _________________ | _________________________ | |
| _________________ | _________________________ | |
| _________________ | _________________________ |
The exercisability of the Option is cumulative, but shall not exceed 100% of the Shares subject to
the Option. If the foregoing schedule would produce fractional Shares, the number of Shares for
which the Option becomes exercisable shall be rounded up to the nearest whole Share.
(b) If the Grantee’s employment or service with the Employer is terminated coincident with or
within one year following a Change of Control (as defined in the Plan) either by the Grantee for
Good Reason or by the Company or its successor other than for Cause (as defined in the Plan), death
or Disability (as defined in the Plan), the Option, to the extent that it has not yet become fully
exercisable as of the date of such employment or service termination will immediately become 100%
exercisable. As used herein, “Good Reason” means that, without the Grantee’s consent, any of the
following has occurred: (i) a material diminution in the Grantee’s authority, duties or
responsibilities; (ii) a material diminution in the Grantee’s base salary; or (iii) any action or
inaction by the Company or its successor that constitutes a material breach by the Company or its
successor of its obligations under an employment agreement then in effect between the Company or
its successor and the Grantee.
3. Term of Option.
(a) The Option shall have a term of ten years from the Date of Grant and shall terminate at
the expiration of that period, unless it is terminated at an earlier date pursuant to the
provisions of this Agreement or the Plan.
(b) The Option shall automatically terminate upon the happening of the first of the following
events:
(i) The expiration of the 90-day period after the Grantee ceases to be employed by, or provide
service to, the Employer, if the termination is for any reason other than Disability, death or
Cause (as defined in the Plan).
(ii) The expiration of the one-year period after the Grantee ceases to be employed by, or
provide service to, the Employer on account of the Grantee’s Disability.
(iii) The expiration of the one-year period after the Grantee ceases to be employed by, or
provide service to, the Employer, if the Grantee dies while employed by, or providing service to,
the Employer or within 90 days after the Grantee ceases to be so employed or provide services on
account of a termination described in subparagraph (i) above.
(iv) The date on which the Grantee ceases to be employed by, or provide service to, the
Employer for Cause. In addition, notwithstanding the prior provisions of this Paragraph 3, if the
Grantee engages in conduct that constitutes Cause after the Grantee’s
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employment or service terminates, the Option shall immediately terminate, and the Grantee
shall automatically forfeit all Shares underlying any exercised portion of the Option for which the
Company has not yet delivered the Share certificates, upon refund by the Company of the exercise
price paid by the Grantee for such Shares.
Notwithstanding the foregoing, in no event may the Option be exercised after the date that is
immediately before the tenth anniversary of the Date of Grant. Except as otherwise provided in
subparagraph 2(b) above, any portion of the Option that is not exercisable at the time the Grantee
ceases to be employed by, or provide service to, the Employer shall immediately terminate.
4. Exercise Procedures.
(a) Subject to the provisions of Paragraphs 2 and 3 above, the Grantee may exercise part or
all of the exercisable Option by giving the Company written notice of intent to exercise in the
manner provided in this Agreement, specifying the number of Shares as to which the Option is to be
exercised and the method of payment. Payment of the exercise price shall be made in accordance
with procedures established by the Board from time to time based on type of payment being made but,
in any event, prior to issuance of the Shares. The Grantee shall pay the exercise price (i) in
cash, (ii) unless the Board determines otherwise, by delivering Shares owned by the Grantee and
having a Fair Market Value (as defined in the Plan) on the date of exercise at least equal to the
exercise price or by attestation (on a form prescribed by the Board) to ownership of Shares having
a Fair Market Value on the date of exercise at least equal to the exercise price, (iii) by payment
through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve
Board, or (iv) by such other method as the Board may approve. The Board may impose from time to
time such limitations as it deems appropriate on the use of Shares of the Company to exercise the
Option.
(b) The obligation of the Company to deliver Shares upon exercise of the Option shall be
subject to all applicable laws, rules, and regulations and such approvals by governmental agencies
as may be deemed appropriate by the Board, including such actions as Company counsel shall deem
necessary or appropriate to comply with relevant securities laws and regulations.
(c) All obligations of the Company under this Agreement shall be subject to the rights of the
Company as set forth in the Plan to withhold amounts required to be withheld for any taxes, if
applicable. Subject to Board approval, the Grantee may elect to satisfy any tax withholding
obligation of the Employer with respect to the Option by having Shares withheld up to an amount
that does not exceed the minimum applicable withholding tax rate for federal (including FICA),
state and local tax liabilities.
5. Designation as Incentive Stock Option.
(a) This Option is designated an incentive stock option under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”). If the aggregate fair market value of the stock on
the date of the grant with respect to which incentive stock options are exercisable for the first
time by the Grantee during any calendar year, under the Plan or any other stock option plan of the
Company or a parent or subsidiary, exceeds $100,000, then the Option, as to
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the excess, shall be treated as a nonqualified stock option that does not meet the
requirements of Section 422. If and to the extent that the Option fails to qualify as an incentive
stock option under the Code, the Option shall remain outstanding according to its terms as a
nonqualified stock option.
(b) The Grantee understands that favorable incentive stock option tax treatment is available
only if the Option is exercised while the Grantee is an employee of the Company or a parent or
subsidiary of the Company or within a period of time specified in the Code after the Grantee ceases
to be an employee. The Grantee understands that the Grantee is responsible for the income tax
consequences of the Option, and, among other tax consequences, the Grantee understands that he or
she may be subject to the alternative minimum tax under the Code in the year in which the Option is
exercised. The Grantee will consult with his or her tax adviser regarding the tax consequences of
the Option. The Grantee understands that the Company does not warrant or guarantee any particular
tax treatment of the Option.
(c) The Grantee agrees that the Grantee shall immediately notify the Company in writing if the
Grantee sells or otherwise disposes of any Shares acquired upon the exercise of the Option and such
sale or other disposition occurs on or before the later of (i) two years after the Date of Xxxxx or
(ii) one year after the exercise of the Option. The Grantee also agrees to provide the Company
with any information requested by the Company with respect to such sale or other disposition.
6. Change of Control. Except as provided in subparagraph 2(b) above, the provisions of the
Plan applicable to a Change of Control shall apply to the Option, and, in the event of a Change of
Control, the Board may take such actions as it deems appropriate pursuant to the Plan.
7. Restrictions on Exercise. Only the Grantee may exercise the Option during the Grantee’s
lifetime. After the Grantee’s death, the Option shall be exercisable (subject to the limitations
specified in the Plan) solely by the legal representatives of the Grantee, or by the person who
acquires the right to exercise the Option by will or by the laws of descent and distribution, to
the extent that the Option is exercisable pursuant to this Agreement.
8. Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of
which are incorporated herein by reference, and in all respects shall be interpreted in accordance
with the Plan. The grant and exercise of the Option are subject to interpretations, regulations
and determinations concerning the Plan established from time to time by the Board in accordance
with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights
and obligations with respect to withholding taxes, (b) the registration, qualification or listing
of the Shares, (c) changes in capitalization of the Company and (d) other requirements of
applicable law. The Board shall have the authority to interpret and construe the Option pursuant
to the terms of the Plan, and its decisions shall be conclusive as to any questions arising
hereunder.
9. No Employment or Other Rights. The grant of the Option shall not confer upon the
Grantee any right to be retained by or in the employ or service of the Employer and shall not
interfere in any way with the right of the Employer to terminate the Grantee’s employment or
service at any time. The right of the Employer to terminate the Grantee’s employment or service at
any time for any reason is specifically reserved.
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10. No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the
Grantee’s rights in the event of the Grantee’s death, shall have any of the rights and privileges
of a stockholder with respect to the Shares subject to the Option, until certificates for Shares
have been issued upon the exercise of the Option.
11. Assignment and Transfers. The rights and interests of the Grantee under this Agreement
may not be sold, assigned, encumbered or otherwise transferred except, in the event of the death of
the Grantee, by will or by the laws of descent and distribution. In the event of any attempt by
the Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or any
right hereunder, except as provided for in this Agreement, or in the event of the levy or any
attachment, execution or similar process upon the rights or interests hereby conferred, the Company
may terminate the Option by notice to the Grantee, and the Option and all rights hereunder shall
thereupon become null and void. The rights and protections of the Company hereunder shall extend
to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and
affiliates. This Agreement may be assigned by the Company without the Grantee’s consent.
12. Applicable Law. The validity, construction, interpretation and effect of this
instrument shall be governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to the conflicts of laws provisions thereof.
13. Notice. Any notice to the Company provided for in this instrument shall be addressed
to the Company in care of the President at 000 Xxxxx 000/000, Xxxxx 00, Xxxxxxxxxx, XX 00000, and
any notice to the Grantee shall be addressed to such Grantee at the current address shown on the
payroll of the Employer, or to such other address as the Grantee may designate to the Employer in
writing. Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed
envelope addressed as stated above, registered and deposited, postage prepaid, in a post office
regularly maintained by the United States Postal Service.
14. The Company’s Rights. The existence of the Option shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Company Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.
15. Amendment. This Agreement may be amended from time to time by the Board in its
discretion; provided, however, that this Agreement may not be modified in a manner that would have
a materially adverse effect on the Option as determined in the discretion of the Board, except as
provided in the Plan or in a written document signed by the Grantee and the Company.
16. Electronic Delivery of Documents. By signing the Certificate, the Grantee (i) consents
to the electronic delivery of this Agreement, all information with respect to the Plan and the
Option, and any reports of the Company provided generally to the Company’s stockholders; (ii)
acknowledges that the Grantee may receive from the Company a paper copy of any documents
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delivered electronically at no cost to the Grantee by contacting the Company by telephone or in
writing; (iii) further acknowledges that the Grantee may revoke his or her consent to the
electronic delivery of documents at any time by notifying the Company of such revoked consent by
telephone, postal service or electronic mail; and (iv) further acknowledges that the Grantee
understands that he or she is not required to consent to electronic delivery of documents.
17. Personal Data. For the purpose of implementing, administering and managing the Option,
the Grantee, by execution of the Certificate, consents to the collection, receipt, use, retention
and transfer, in electronic or other form, of his or her personal data by and among the Company and
its third party vendors or any potential party to any Change of Control transaction or capital
raising transaction involving the Company. The Grantee understands that personal data (including
but not limited to, name, home address, telephone number, employee number, employment status,
social security number, tax identification number, date of birth, nationality, job and payroll
location, data for tax withholding purposes and shares awarded, cancelled, exercised, vested and
unvested) may be transferred to third parties assisting in the implementation, administration and
management of the Option and the Plan and the Grantee expressly authorizes such transfer as well as
the retention, use, and the subsequent transfer of the data by the recipient(s). The Grantee
understands that these recipients may be located in the Grantee’s country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections than the Grantee’s
country. The Grantee understands that data will be held only as long as is necessary to implement,
administer and manage the Option. The Grantee understands that he or she may, at any time, request
a list with the names and addresses of any potential recipients of the personal data, view data,
request additional information about the storage and processing of data, require any necessary
amendments to data or refuse or withdraw the consents herein, in any case without cost, by
contacting in writing the Company’s Secretary. The Grantee understands, however, that refusing or
withdrawing his or her consent may affect his or her ability to accept a stock option.
18. No Future Entitlement. By execution of the Certificate, the Grantee acknowledges and
agrees that: (i) the grant of the Option is a one-time benefit which does not create any
contractual or other right to receive future grants of stock options, or compensation in lieu of
stock options, even if stock options have been granted repeatedly in the past; (ii) all
determinations with respect to any such future grants, including, but not limited to, the times
when stock options shall be granted or shall become exercisable, the maximum number of shares
subject to each stock option, and the purchase price, will be at the sole discretion of the Board;
(iii) the value of the Option is an extraordinary item of compensation which is outside the scope
of the Grantee’s employment contract, if any; (iv) the value of the Option is not part of normal or
expected compensation or salary for any purpose, including, but not limited to, calculating any
termination, severance, resignation, redundancy, end of service payments or similar payments, or
bonuses, long-service awards, pension or retirement benefits; (v) the vesting of the Option ceases
upon termination of employment with the Company or transfer of employment from the Company, or
other cessation of eligibility for any reason, except as may otherwise be explicitly provided in
this Agreement; (vi) if the underlying Company Stock does not increase in value, the Option will
have no value, nor does the Company guarantee any future value; and (vii) no claim or entitlement
to compensation or damages arises if the Option does not increase in value and the Grantee
irrevocably releases the Company from any such claim that does arise.
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IN WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and attest
this Agreement, and the Grantee has executed this Agreement, effective as of the Date of Grant.
| GAIN CAPITAL HOLDINGS, INC. | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
I hereby accept the Option described in this Agreement, and I agree to be bound by the terms of the
Plan and this Agreement. I hereby further agree that all the decisions and determinations of the
Board shall be final and binding.
| Grantee: | ||||||
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