1
EXHIBIT 10.23
MAI SYSTEMS CORPORATION
STOCK OPTION AGREEMENT
MAI SYSTEMS CORPORATION, a Delaware corporation (the "Company"), hereby grants
to W. Xxxxx Xxxxxxxx (the "Optionee") an option to purchase a total of 75,000
shares of Common Stock (the "Shares") of the Company, at the price set forth
herein, and in all respects subject to the terms, conditions, and provisions of
this Agreement and of the Company's 1993 Stock Option Plan (the "Plan") which
was incorporated into and approved as part of the Company's Plan of
Reorganization, approved by the Bankruptcy Court, and which is attached as
Exhibit "A" and is incorporated herein by this reference. Terms defined in the
Plan shall have the same meanings herein.
1. NATURE OF THE OPTION. This Option is intended to be and is a
Nonstatutory Stock Option and is not intended to be an Incentive Stock Option
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code").
2. THE DATE OF GRANT AND TERM OF THE OPTION. This Option is granted on
March 24, 2000 The term of the Option is ten years from the date of grant and
this Option may not, in any event, be exercised later than March 24, 2010. If
the Option is not exercised within ten years of the date of grant, it will
expire and terminate.
3. OPTION EXERCISE PRICE. The Option exercise price is $1.00 per share,
which price is not less than eighty-five percent (85%) of the Fair Market Value
of a share of Common Stock on the date this Option was granted.
4. EXERCISE OF THE OPTION. This Option shall be exercisable during its
term only in accordance with the terms, conditions, and provisions of the Plan
and this Agreement as follows.
(a) RIGHT TO EXERCISE. This Option shall vest and be exercisable,
cumulatively, as follows:
Date Number of Shares
---- ----------------
After August 2, 2001 25,000
After August 2, 2002 25,000
After August 2, 2003 25,000
-------------- ------
75,000
(b) METHOD OF EXERCISE. The Optionee shall purchase a minimum of at
least 100 shares per transaction concerning the exercise of the Option. This
Option shall be exercisable by actual receipt by the Company of written notice
provided by the Optionee which shall state the election to exercise this Option,
the number of whole Shares in respect to which this Option is being exercised,
and such other representations and agreements as to the Optionee's investment
intent with respect to such Shares as may be required by the Company hereunder
or pursuant to the provisions of the Plan. Such written notice shall be signed
by the Optionee and shall be delivered in person or by certified mail, return
receipt requested, to the
1
2
then current President or Chief Financial Officer of the Company or any other
person as may be designated by the Company. The written notice shall be
accompanied by payment of the purchase price for the number of Shares in respect
to which this Option shall be exercised. Payment of the purchase price shall be
by check payable to the order of the Company, outstanding shares of Common Stock
duly endorsed to the Company (which shares shall be valued at their Fair Market
Value as of the day preceding the day of such exercise), or any combination of
the foregoing.
Unless otherwise determined by the Board of Directors of the
Company, the Company may arrange for the simultaneous exercise and sale of
Shares through the cooperation of broker-dealers which finance "same day" sales.
The certificate(s) for the Shares as to which the Option shall be
exercised shall be registered in the name of the Optionee and shall be legended
as set forth in the Plan or as required under applicable regulatory, state or
federal law.
(c) FURTHER RESTRICTIONS ON THE EXERCISE OF THE OPTION. This Option
shall not be exercised if the issuance of the Shares upon such exercise would
constitute a violation of any applicable federal or state securities law or laws
or regulations. As a condition to the exercise of this Option, the Company may
require the Optionee to make any representation, warranty or certification to
the Company as may be required by any applicable law or regulation or by the
Plan. There shall be no exercise of any fractional shares concerning the Option.
(d) ADJUSTMENT UPON CHANGE OF CAPITALIZATION. Appropriate adjustment
shall be made in the number, exercise price and class of shares of stock subject
to the Option in the event of a stock dividend, stock split, reverse stock
split, recapitalization, combination, reclassification, or like change in the
capital structure of the Company.
5. TERMINATION OF STATUS AS AN EMPLOYEE. If the Optionee ceases to
serve as an Employee for any reason other than death or for Cause (as defined in
the Plan) and thereby terminates his status as an Employee, the Optionee shall
have the right to exercise this Option at any time within ninety (90) days
following the date of such termination, to the extent that the Optionee was
entitled to exercise the Option at the date of such termination, but in no event
after the expiration of the term of the Option set forth in Section 2 hereof.
If the Optionee ceases to serve as an Employee due to death, this
Option may be exercised at any time within one (1) year following the date of
death by the Optionee's executor or administrator or the person or persons who
shall have acquired the Option by bequest or inheritance but only to the extent
the Optionee was entitled to exercise this option at the date of death. To the
extent that the Optionee was not entitled to exercise the Option at the date of
termination or death, or to the extent the Option is not exercised within the
time specified herein, this Option shall terminate. Notwithstanding the
foregoing, this Option shall not be exercisable after the expiration of the term
set forth in Section 2 hereof. If the Optionee ceases to serve as an Employee
due to termination of his employment by the Company for cause (as defined in the
Plan), this Option shall cease to be exercisable ten (10) days following the
date the notice of such termination is delivered to the Optionee.
6. NONTRANSFERABILITY OF THE OPTION. This Option may not be sold,
ledged, assigned, hypothecated, gifted, transferred or disposed of in any manner
either voluntarily or involuntarily by operation of law, other than by will or
by the laws of descent of distribution, and
2
3
may be exercised during the lifetime of the Optionee only by such Optionee.
Subject to the foregoing and the terms of the Plan, the terms of this Option
shall be binding upon the executors, administrators, heirs, successors and
assigns of the Optionee.
7. CONTINUATION OF EMPLOYMENT. Neither this Plan nor any Option granted
hereunder shall confer upon any Optionee any right to continue in the employment
of the Company or any of its Subsidiaries or limit in any respect the right of
the Company to discharge the Optionee at any time, with or without cause and
with or without notice.
8. WITHHOLDING TAX LIABILITY. The Optionee understands and agrees that
the company may be required to withhold part or all of the Optionee's regular
compensation to pay any taxes required to be withheld under federal, state, or
local law as a result of the exercise of this Option, and that if such regular
compensation is insufficient, the Company may require the Optionee, as a
condition of exercise of this Option, to pay in cash the amount of such
withholding tax liability.
9. THE PLAN. This Option is subject to, and the Company and the
Optionee expressly agree to be bound by, all of the terms and conditions of the
Plan as it may be amended from time to time in accordance with the terms
thereof, provided that no such amendment shall deprive the Optionee, without his
written consent, of this Option or any rights hereunder. Pursuant to the Plan,
the Committee appointed by the Board of Directors of the Company to administer
the Plan is authorized to adopt rules and regulations not materially
inconsistent with the Plan as it shall deem appropriate and proper. If questions
arise as to the intent, meaning or application of the provisions of this Option
Agreement or of the Plan, such questions shall be decided by Committee in its
sole discretion, and any such decision shall be conclusive and binding on the
Optionee. A copy of the Plan in its present form is available for inspection
during regular business hours by the Optionee of the persons entitled to
exercise this Option at the Company's principal office.
MAI SYSTEMS CORPORATION
Dated: By:
---------------------------------------
Xxxxxxx X. Xxxxxxx
Chairman of the Board
Dated: By:
---------------------------------------
Optionee
3
4
ACKNOWLEDGEMENT OF OPTIONEE
The Optionee acknowledges receipt of a copy of the 1993 Stock Option Plan, the
Stock Option Plan General Information Statement, and the supporting documents
(collectively referred to as the "Prospectus") relating thereto, copies of which
are attached hereto, represents that he has read and is familiar with all of the
terms and provisions thereof, and hereby accepts the Option set forth in this
Option Agreement subject to all of the terms, conditions and provisions thereof.
Dated:
------------------
--------------------------------------
Signature of Optionee
--------------------------------------
Address
--------------------------------------
City State Zip
Stockop.agt
4
