LOGMEIN, INC. Incentive Stock Option Agreement Granted Under 2009 Stock Incentive Plan
Exhibit 10.23
Incentive Stock Option Agreement
Granted Under 2009 Stock Incentive Plan
Granted Under 2009 Stock Incentive Plan
1. Grant of Option.
This agreement evidences the grant by LogMeIn, Inc., a Delaware corporation (the “Company”),
on , 20 (the “Grant Date”) to , an employee of the Company
(the “Participant”), of an option to purchase, in whole or in part, on the terms provided herein
and in the Company’s 2009 Stock Incentive Plan (the “Plan”), a total of
shares (the “Shares”) of common stock, $0.01 par value per share, of the Company (“Common Stock”)
at $ per Share. Unless earlier terminated, this option shall expire at 5:00 p.m., Eastern time,
on , 20 (the “Final Exercise Date”).
It is intended that the option evidenced by this agreement shall be an incentive stock option
as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder (the “Code”). Except as otherwise indicated by the context, the term
“Participant”, as used in this option, shall be deemed to include any person who acquires the right
to exercise this option validly under its terms.
2. Vesting Schedule.
(a) This option will become exercisable (“vest”) as to 25% of the original number of Shares at
the end of each successive year following the Vesting Commencement Date (as defined below) until
the fourth anniversary of the Vesting Commencement Date. For purposes of this Agreement, the
“Vesting Commencement Date” shall mean , 20 .
(b) The right of exercise shall be cumulative so that to the extent the option is not
exercised in any period to the maximum extent permissible it shall continue to be exercisable, in
whole or in part, with respect to all Shares for which it is vested until the earlier of the Final
Exercise Date or the termination of this option under Section 3 hereof or the Plan.
(c) Upon the occurrence of a Sale (as defined below) of the Company, the vesting of this
option under Section 2(a) above shall be accelerated in part so that the option shall become
exercisable for an additional number of shares equal to 50% of the Shares that remain unvested
hereunder. After such Sale, any remaining unvested Shares shall continue to vest as to 25% of the
original number of Shares on each anniversary of the Vesting Commencement Date until all Shares are
vested; provided, however, that this option shall be immediately exercisable in full if, within the
12-month period following the Sale, the Participant’s employment with the Company or the acquiring
or succeeding corporation is terminated for Good Reason (as defined below) by the Participant or is
terminated without Cause (as defined below) by the Company or the acquiring or succeeding
corporation.
(d) For purposes of this agreement, the following terms shall have the following meanings:
(1) “Sale” shall mean the sale of all or substantially all of the outstanding shares of
capital stock, assets or business of the Company, by merger, consolidation, sale of assets or
otherwise (other than a transaction in which all or substantially all of the individuals and
entities who were beneficial owners of the capital stock of the Company immediately prior to such
transaction beneficially own, directly or indirectly, more than 50% of the outstanding securities
(on an as-converted to Common Stock basis) entitled to vote generally in the election of directors
of the (i) resulting, surviving or acquiring corporation in such transaction in the case of a
merger, consolidation or sale of outstanding shares, or (ii) acquiring corporation in the case of a
sale of assets).
(2) “Good Reason” shall exist upon (i) mutual written agreement by the Participant and the
Board of Directors of the Company that Good Reason exists; (ii) the relocation of the Company’s
offices such that such Participant’s daily commute is increased by at least 100 miles without the
written consent of the Participant; (iii) reduction of the Participant’s annual base salary without
the prior consent of the Participant (other than in connection with, and substantially
proportionate to, a general reduction by the Company of the annual base salary of its employees or
officers); or (iv) demotion of the Participant to a position with responsibilities substantially
less than such Participant’s current position without the prior consent of the Participant and such
reduction remains in effect for fifteen (15) days following written notice by the Participant to
the Company describing the reduction and referencing this section of this agreement.
(3) If the Participant is party to an employment or severance agreement with the Company that
contains a definition of “cause” for termination of employment, “Cause” shall have the meaning
ascribed to such term in such agreement. Otherwise, “Cause” shall mean (i) fraud,
misappropriation, embezzlement or other act of material misconduct against the Company including
without limitation, unauthorized use or disclosure of Company or third party confidential
information or trade secrets; (ii) conviction of any criminal act involving a felony or crime of
moral turpitude including without limitation, misappropriation of funds or property; (iii) willful
and knowing violation of any rules or regulations of any governmental or regulatory body material
to the business of the Company; (iv) any intentional or material failure to perform your
obligations hereunder or material gross negligence in performance of such duties; (v) any
continuing failure to perform your obligations hereunder or continuing negligence in performance of
such duties after you have been informed in writing of your default in performing such duties and
such failure or negligence continues for 30 days following such written notice; or (vi) any
material breach of the terms of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or other similar agreement between the Participant and the Company.
The Participant’s employment shall be considered to have been terminated for Cause if the Company
determines, within 30 days after the Participant’s resignation, that termination for Cause was
warranted, which determination shall be conclusive.
3. Exercise of Option.
(a) Form of Exercise. Each election to exercise this option shall be in writing,
signed by the Participant, and received by the Company at its principal office, accompanied by this
agreement, and payment in full in the manner provided in the Plan. The Participant may
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purchase less than the number of shares covered hereby, provided that no partial exercise of
this option may be for any fractional share.
(b) Continuous Relationship with the Company Required. Except as otherwise provided
in this Section 3, this option may not be exercised unless the Participant, at the time he or she
exercises this option, is, and has been at all times since the Grant Date, an employee or officer
of, or consultant or advisor to, the Company or any parent or subsidiary of the Company as defined
in Section 424(e) or (f) of the Code (an “Eligible Participant”).
(c) Termination of Relationship with the Company. If the Participant ceases to be an
Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the
right to exercise this option shall terminate three months after such cessation (but in no event
after the Final Exercise Date), provided that this option shall be exercisable only
to the extent that the Participant was entitled to exercise this option on the date of such
cessation. Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date,
violates the non-competition or confidentiality provisions of any employment contract,
confidentiality and nondisclosure agreement or other agreement between the Participant and the
Company, the right to exercise this option shall terminate immediately upon such violation.
(d) Exercise Period Upon Death or Disability. If the Participant dies or becomes
disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date
while he or she is an Eligible Participant and the Company has not terminated such relationship for
“cause” as specified in paragraph (e) below, this option shall be exercisable, within the period of
one year following the date of death or disability of the Participant, by the Participant (or in
the case of death by an authorized transferee), provided that this option shall be
exercisable only to the extent that this option was exercisable by the Participant on the date of
his or her death or disability, and further provided that this option shall not be exercisable
after the Final Exercise Date.
(e) Termination for Cause. If, prior to the Final Exercise Date, the Participant’s
employment is terminated by the Company for Cause, the right to exercise this option shall
terminate immediately upon the effective date of such termination of employment. If, prior to the
Final Exercise Date, the Participant is given notice by the Company of the termination of his or
her employment by the Company for Cause, and the effective date of such employment termination is
subsequent to the date of delivery of such notice, the right to exercise this option shall be
suspended from the time of the delivery of such notice until the earlier of (i) such time as it is
determined or otherwise agreed that the Participant’s employment shall not be terminated for Cause
as provided in such notice or (ii) the effective date of such termination of employment (in which
case the right to exercise this option shall, pursuant to the preceding sentence, terminate upon
the effective date of such termination of employment).
4. Tax Matters.
(a) Withholding. No Shares will be issued pursuant to the exercise of this option
unless and until the Participant pays to the Company, or makes provision satisfactory to the
Company for payment of, any federal, state or local withholding taxes required by law to be
withheld in respect of this option.
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(b) Disqualifying Disposition. If the Participant disposes of Shares acquired upon
exercise of this option within two years from the Grant Date or one year after such Shares were
acquired pursuant to exercise of this option, the Participant shall notify the Company in writing
of such disposition.
5. Nontransferability of Option.
This option may not be sold, assigned, transferred, pledged or otherwise encumbered by the
Participant, either voluntarily or by operation of law, except by will or the laws of descent and
distribution, and, during the lifetime of the Participant, this option shall be exercisable only by
the Participant.
6. Provisions of the Plan.
This option is subject to the provisions of the Plan (including the provisions relating to
amendments to the Plan), a copy of which is furnished to the Participant with this option.
IN WITNESS WHEREOF, the Company has caused this option to be executed under its corporate seal
by its duly authorized officer. This option shall take effect as a sealed instrument.
| LOGMEIN, INC. |
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| By: | ||||
| Name: | ||||
| Title: | ||||
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PARTICIPANT’S ACCEPTANCE
The undersigned hereby accepts the foregoing option and agrees to the terms and conditions
thereof. The undersigned hereby acknowledges receipt of a copy of the Company’s 2009 Stock
Incentive Plan.
| PARTICIPANT: |
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Address: |
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