Exhibit 4.2
ICEBERG BRANDS CORPORATION
INCENTIVE STOCK OPTION AGREEMENT
Agreement dated ____________, between Iceberg Brands Corporation, a Nevada
Corporation (the "Company"), with its principal office at Suite 000 - 0000
Xxxxxxx Xxxxxx, Xxxxxxxxx, X.X., Xxxxxx, X0X 0X0 and ______________________,
residing at ____________________________________________________________
("Optionee").
1. Grant of Option. The Company hereby grants to Optionee effective as of
________________, ("Grant Date"), the right and option ("Option") to purchase
from the Company, for a price equal to the exercise price determined as
described below ("Exercise Price"), up to _______ shares of the Company's common
stock ("Shares"), as a qualified incentive stock option ("Option"), which Option
shall be subject to the applicable terms and conditions set forth below and is
being granted pursuant to the Iceberg Brands Corporation Incentive Stock Option
Plan ("Plan").
2. Terms and Conditions of Option. The Option evidenced by this Agreement is
subject to the following terms and conditions, as well as the terms and
conditions of Section 3 hereof.
a. Exercise Price. The Exercise Price is $________ per Share, which is
the fair market value per Share on the Grant Date as determined in
accordance with the Plan.
b. Term of Option. The term of the Option over which the Option may be
exercised shall commence on the Grant Date and, subject to the
provisions of Section 3(b) below, shall terminate five years thereafter.
c. Exercisability of Option. As to the total number of Shares with
respect to which the Option is granted, the Option shall be exercisable
[on and after the first anniversary of the Grant Date] [as follows: (i)
_____% of the Option in the aggregate may be exercised on or after
__________; (ii) _____% of the Option in the aggregate may be exercised
on or after __________; (iii) . . .]
However, the right of Optionee to exercise the Option shall be deferred to the
extent that the Option otherwise would not be treated as a qualified incentive
stock option by reason of the $100,000 annual limitation under Section 422(d) of
the Internal Revenue Code of 1986, as amended (the "Code").
3. Additional Terms and Conditions.
a. Exercise of Option; Payments for Shares . An Option may be exercised
from time to time with respect to all or any portion of the number of
Shares with respect to which the Option has become exercisable, in whole
or in part, by written notice to the Company at the Company's then
principal office, to the attention of the Administrative Committee for
the Iceberg Brands Corporation Incentive Stock Option Plan (the
"Committee"), substantially in the form of Exhibit A attached hereto.
Notwithstanding anything in this Agreement to the contrary, no Option
may be exercised prior to the date on which the Plan is approved by the
Company's shareholders. Any notice of exercise of the Option shall be
accompanied by payment of the full Exercise Price for the Shares being
purchased by certified or bank check payable to the order of Iceberg
Brands Corporation or, as may be allowed by the Committee, by delivery
to the Company of a number of Shares already owned by Optionee having a
fair market value equal to such Exercise Price. In addition, with the
consent of the Committee, the Company may cooperate with Optionee in
arranging a "cashless exercise" of the Option through a broker approved
by the Committee. The Option shall not be exercised for any fractional
Shares and no fractional Shares shall be issued or delivered. The date
of actual receipt by the Company of the notice of exercise shall be
treated as the date of exercise of the Option for the Shares being
purchased.
b. Termination of Option . If Optionee's employment with the Company or
any Subsidiary terminates, the Option shall continue to be exercisable,
to the extent it is exercisable on the date such employment terminated,
for three (3) months after such termination, but in no event after the
date the Option otherwise terminates. However, if Optionee's employment
terminates because of Optionee's death or disability, the Option shall
continue to be exercisable, to the extent it is exercisable on the date
such employment terminated, for twelve (12) months after such
termination, but in no event after the date the Option otherwise
terminates.
c. Continued Employment . The Option granted hereunder shall confer no
right on Optionee to continue in the employ of the Company or any
Subsidiary, or limit in any respect the right of the Company or any
Subsidiary (in the absence of a specific agreement to the contrary) to
terminate Optionee's employment at any time.
d. Issuance of Shares; Registration; Withholding Taxes . As soon as
practicable after the exercise date of the Option, the Company shall
cause to be issued and delivered to Optionee, or for the Optionee's
account, a certificate or certificates for the Option Shares purchased.
The Company may postpone the issuance or delivery of the Shares until
(i) the completion of registration or other qualification of such Shares
or transaction under any state or federal law, rule or regulation, or
any listing on any securities exchange, as the Company shall determine
to be necessary or desirable; (ii) the receipt by the Company of such
written representations or other documentation as the Company deems
necessary to establish compliance with all applicable laws, rules and
regulations, including applicable federal and state securities laws and
listing requirements, if any; and (iii) the payment to the Company, upon
its demand, of any amount requested by the Company to satisfy any
federal, state or other governmental withholding tax requirements
related to the exercise of the Option. Optionee shall comply with any
and all legal requirements relating to Optionee's resale or other
disposition of any Shares acquired under this Agreement. The
certificates representing the Shares acquired pursuant to the Option may
bear such legend as described in Section 6 and as counsel to the Company
otherwise deems appropriate to assure compliance with applicable law.
e. Nontransferability of Options . The Option and this Agreement shall
not be assignable or transferable by Optionee other than by will or by
the laws of descent and distribution. During Optionee's lifetime, the
Option and all rights of Optionee under this Agreement may be exercised
only by Optionee (or by his guardian or legal representative). If the
Option is exercised after Optionee's death, the Committee may require
evidence reasonably satisfactory to it of the appointment and
qualification of Optionee's personal representatives and their authority
and of the right of any heir or distributee to exercise the Option.
f. Option is Incentive Stock Option . The Option granted hereunder is
intended to qualify as an "incentive stock option", as that term is
defined in Section 422 of the Internal Revenue Code of 1986, as amended.
4. Changes in Capitalization; Reorganization.
a. Adjustments . The number of shares of Common Stock which may be
subject to options under the Plan, the number of Shares subject to the
Option, and the Exercise Price shall be adjusted proportionately for any
increase or decrease in the number of issued shares of Common Stock by
reason of stock dividends, split- ups, recapitalizations or other
capital adjustments. Notwithstanding the foregoing, (i) no adjustment
shall be made, unless the Committee determines otherwise, if the
aggregate effect of all such increases and decreases occurring in any
fiscal year is to increase or decrease the number of issued shares by
less than five percent (5%); (ii) any right to purchase fractional
shares resulting from any such adjustment shall be eliminated; and (iii)
the terms of this Section 4(a) are subject to the terms of Section 4(b)
below.
b. Corporate Transactions . Pursuant to Article 13 of the Program, in
the event of (i) a dissolution or liquidation of the Company, (ii)
merger or consolidation or reorganization of the Company in which the
Company is not the surviving corporation, (iii) merger or consolidation
or reorganization in which the Company is the surviving corporation but
after which the shareholders cease to own their shares in the Company,
(iv) the sale of substantially all of the assets of the Company, or (v)
the acquisition, sale, or transfer of more than fifty percent (50%) of
the outstanding shares of the Company (herein referring to (i) through
(v) as "Corporate Transaction"), or (iv) the Board of Directors of the
Company proposes that the Company enter into a Corporate Transaction,
then the Committee may in its discretion take any or all of the
following actions: (i) by written notice to Optionee, provide that the
Option shall be terminated unless exercised within thirty (30) days (or
such longer period as the Committee shall determine its discretion)
after the date of such notice; and (ii) accelerate the dates upon which
any or all outstanding Options granted to Optionee shall be exercisable.
Whenever deemed appropriate by the Committee, any action referred to in
this Section 4(b) may be made conditional upon the consummation of the
applicable Corporate Transaction.
c. Committee Determination . Any adjustments or other action pursuant to
this Section 4 shall be made by the Committee, and the Committee's
determination as to what adjustments shall be made or actions taken, and
the extent thereof, shall be final and binding.
5. No Rights as Shareholder . Optionee shall acquire none of the rights of a
shareholder of the Company with respect to the Shares until a certificate for
the shares are issued to Optionee upon the exercise of the Option. Except as
otherwise provided in Section 4 above, no adjustments shall be made for
dividends, distributions or other rights (whether ordinary or extraordinary, and
whether in cash, securities or other property) for which the record date is
prior to the date such certificate is issued.
6. Legends . All certificates evidencing Shares purchased under this Agreement
in an unregistered transaction shall bear the following legend (and such other
restrictive legends as are required or deemed advisable under the provisions of
any applicable law):
THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1934, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF
COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS
NOT REQUIRED.
If, in the opinion of the Company and it counsel, any legend placed on a stock
certificate representing Shares sold under this Agreement is no longer required,
the holder of such certificate shall be entitled to exchange such certificate
for a certificate representing the same number of Shares but without such
legend.
7. Optionee Bound by Plan . Optionee hereby acknowledges receipt of a copy of
the Plan and acknowledges that Optionee shall be bound by its terms, regardless
of whether such terms have been set forth in the Agreement. Notwithstanding the
foregoing, if there is an inconsistency between the terms of the Plan and the
terms of this Agreement, Optionee shall be bound by the terms of the Plan.
8. Notices . Any notice or other communication made in connection with this
Agreement shall be deemed duly given when delivered in person or mailed by
certified or registered mail, return receipt requested, to Optionee at
Optionee's address listed above or such other address of which Optionee shall
have advised the Company by similar notice, or to the Company at its then
principal office, to the attention of the Committee.
9. Miscellaneous . This Agreement and the Plan set forth the parties' final and
entire agreement with respect to the subject matter hereof, may not be changed
or terminated orally and shall be governed by and shall be construed in
accordance with the laws of the State of Nevada, United States of America,
despite the fact that one or both parties may be or shall become a resident of a
different state or country. This Agreement shall bind and benefit Optionee, the
heirs, distributees and personal representative of Optionee, and the Company and
its successors and assigns.
IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date
first above written.
ICEBERG BRANDS CORPORATION
By: _______________________________________
Title: ____________________________________
OPTIONEE
___________________________________________________
EXHIBIT A
________________, 2003
Iceberg Brands Corporation
Attention: Administrative Committee for
Iceberg Brands Corporation
Xxxxx 000,
0000 Xxxxxxx Xxxxxx
Xxxxxxxxx, X.X. Xxxxxx
X0X 0X0
Dear Sir/Madam:
Pursuant to the provisions of the Iceberg Brands Corporation Incentive Stock
Option Agreement, dated _______________, 2003 (the "Option Agreement"), whereby
you have granted me the Option to purchase up to _____ shares of common stock of
Iceberg Brands(the "Company"), I hereby notify you that I elect to exercise my
option to purchase _____ of the shares covered by the Option at $________, the
price determined in accordance with the Option Agreement. In full payment of
such price for the shares being purchased hereby, I am delivering to you.
The undersigned hereby agrees to provide the Company, prior to the receipt of
the shares being purchased hereby, with such representations or certifications
or payments that the Company may require pursuant to the terms of the Plan and
the Option Agreement.
Sincerely,
Address:
(For notices, reports, dividend checks and communications to shareholders.)
