EXHIBIT 10.8
IN FOCUS SYSTEMS, INC.
INCENTIVE STOCK OPTION AGREEMENT
In Focus Systems, Inc., an Oregon corporation (the "Corporation"),
through its Board of Directors or a Committee thereof (the "Plan
Administrator"), has granted to ____________ ("Optionee") an option (the
"Option") to purchase ____________ shares of the Corporation's Common Stock (the
"Option Shares") at a price of $__________ per share (the "Option Price"). The
Option has been granted to Optionee on __________, __________ (the "Grant
Date"), pursuant to the In Focus Systems 1998 Stock Incentive Plan (the "Plan").
1. NATURE OF THE OPTION
1.1 The Option is intended to qualify as an Incentive Stock
Option as defined in Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code").
1.2 Except as expressly provided herein, the Option is subject
to the terms, definitions and provisions of the Plan, as it may be amended from
time to time. The terms defined in the Plan have the same meaning in this
Agreement.
2. DATE EXERCISABLE; VESTING.
2.1 Subject to the restrictions and conditions set forth in the
Plan, the Option shall become exercisable by Optionee as follows:
2.1.1 The Option shall become exercisable as to
twenty-five percent (25%) of the total number of Option Shares at the end of the
twelve (12) month period of Optionee's continuous employment with the
Corporation following the Grant Date.
2.1.2 The Option shall thereafter become exercisable as
to twenty-five percent (25%) of the total number of Option Shares at the end of
each subsequent twelve (12) month period of Optionee's continuous employment
with the Corporation.
2.1.3 The right to purchase any installment of the
Option Shares shall be cumulative, so that when the right to purchase any Option
Shares has accrued, such Option Shares may be purchased at any time or from time
to time thereafter prior to the Expiration Date, subject to the limitations of
Sections 3 and 4 herein.
2.2 In the event Optionee for any reason ceases to be an
employee of the Corporation, whether by dismissal, resignation, death,
disability or otherwise, the Option shall be exercisable thereafter only to the
extent Optionee was entitled to exercise it at the date of termination of
employment.
Page 1 - INCENTIVE STOCK OPTION AGREEMENT
2.3 The Option may become immediately exercisable for the full
number of Option Shares in the event of a reorganization as defined in the Plan.
3. EXERCISE OF OPTION.
3.1 MANNER OF EXERCISE. The Option may be exercised in whole or
in part by delivery to the Corporation, from time to time, of written notice,
signed by Optionee, specifying the number of Option Shares that Optionee then
desires to purchase, together with cash or check payable to the order of the
Corporation, or other form of payment acceptable to the Plan Administrator, for
an amount of United States dollars equal to the Option Price of such Option
Shares. The total number of dates on which Optionee exercises this Option, or
any other option granted by the Corporation to Optionee, shall not exceed four
(4) in any twelve (12) month period.
3.2 STOCK CERTIFICATES. As soon as practicable after any
exercise in whole or in part of the Option by Optionee, the Corporation shall
deliver to Optionee or, at Optionee's request, Optionee's designated broker, a
certificate or certificates for the number of shares of Stock with respect to
which the Option was so exercised, registered in Optionee's name.
4. DURATION OF OPTION. The Option, to the extent not previously
exercised, shall terminate upon the earliest of the following dates:
4.1 The date (10) years from the Grant Date (the "Expiration
Date");
4.2 Three (3) months after the date of Optionee's termination of
employment with the Corporation, in the event such termination is for any reason
other than Optionee's total disability (as defined in the Plan) or death;
4.3 One year after Optionee's termination of employment, if such
termination is by reason of Optionee's total disability (as defined in the Plan)
or death;
4.4 The date of any sale, transfer or hypothecation, or any
attempted sale, transfer or hypothecation, of such Option in violation of
Section 5;
4.5 Upon the occurrence of any Terminating Event (as defined in
the Plan); or
4.6 At the discretion of the Plan Administrator, immediately
upon determination by the Plan Administrator that the Optionee has (i) made
unauthorized disclosure of confidential information relating to the Company,
(ii) failed to assign to the Company any invention which the Optionee is
obligated to assign to the Company pursuant to written agreement or otherwise,
or (iii) breached the terms of any written agreement in effect between the
Company and the Optionee relating to confidentiality, nondisclosure or ownership
of inventions.
Page 2 - INCENTIVE STOCK OPTION AGREEMENT
5. NONTRANSFERABILITY.
5.1 RESTRICTION. The Option is not transferable by Optionee
otherwise than by testamentary will, the laws of descent and distribution, or
qualified domestic relations order (as defined in the Plan) and, during
Optionee's lifetime, may be exercised only by Optionee or Optionee's guardian or
legal representative or the transferee pursuant to a qualified domestic
relations order. No assignment or transfer of the Option, whether voluntary,
involuntary, or by operation of law or otherwise, except by testamentary will,
the laws of descent and distribution, or qualified domestic relations order,
shall vest in the assignee or transferee any interest or right, but immediately
upon any attempt to assign or transfer the Option, the Option shall terminate
and be of no further force or effect.
5.2 EXERCISE IN EVENT OF DEATH OR DISABILITY. Whenever the word
"Optionee" is used in any provision of this Agreement under circumstances when
the provision should logically be construed to apply to the Optionee's guardian,
legal representative, executor, administrator, or the person or persons to whom
the Option may be transferred by testamentary will, the laws of descent and
distribution, or qualified domestic relations order, the word "Optionee" shall
be deemed to include such person or persons.
6. NO RIGHTS AS SHAREHOLDER PRIOR TO EXERCISE. Optionee shall not
be deemed for any purpose to be a shareholder of the Corporation with respect to
any Option Shares as to which the Option has not been exercised.
7. ADJUSTMENTS UPON RECAPITALIZATION OR REORGANIZATION.
7.1 RECAPITALIZATION. In the event of a material alteration in
the capital structure of the Corporation on account of a recapitalization, stock
split, reverse stock split, stock dividend or otherwise, the Option shall be
subject to adjustment by the Plan Administrator in accordance with the Plan.
7.2 REORGANIZATION. In the event of a reorganization as defined
in the Plan, the Option shall be assumed or an option substituted therefor in
accordance with the Plan.
8. MISCELLANEOUS PROVISIONS.
8.1 DISCLAIMER. Notwithstanding any other provision herein
to the contrary, Optionee acknowledges that the Corporation cannot, and does
not, guarantee that the Plan or the Option meets all the requirements of IRC
Section 422. Optionee hereby releases and discharges the Corporation, and
its successors, officers and directors, from any and all loss, liability or
damage that Optionee may incur in the event the Plan or the Option fails, for
whatever reason, to meet all the requirements of IRC Section 422.
Page 3 - INCENTIVE STOCK OPTION AGREEMENT
8.2 WITHHOLDING OF ADDITIONAL INCOME TAXES. Upon the sale of
Option Shares, the Corporation, in accordance with the Code, may require
Optionee to pay additional withholding taxes in respect of the amount that is
considered compensation includible in Optionee's gross income.
8.3 DISPUTES. Any dispute or disagreement that may arise under
or as a result of this Agreement, or any question as to the interpretation of
this Agreement or the Plan, shall be determined by the Plan Administrator in its
absolute discretion, and any such determination shall be final, binding, and
conclusive on all affected persons.
8.4 DISPOSITION OF STOCK. Optionee understands that if Optionee
disposes of any Option Shares within two (2) years after the Date of Grant or
within one (1) year after such Option Shares were issued to Optionee, Optionee
may be treated for federal income tax purposes as having received ordinary
income at the time of such disposition in an amount equal to the fair market
value of the Option Shares at the time of exercise minus the price paid for such
shares. Optionee hereby agrees to notify the Corporation in writing within 30
days after the date of any such disposition.
8.5 GOVERNING LAW. This Agreement shall be administered,
interpreted and enforced under the internal laws of the State of Oregon, without
regard to conflicts of laws thereof.
Page 4 - INCENTIVE STOCK OPTION AGREEMENT
IN WITNESS WHEREOF, the parties have executed this Agreement effective on
the Date of Grant.
OPTIONEE: CORPORATION:
IN FOCUS SYSTEMS, INC.
By:
------------------------------ -------------------------------------
Name: Xxxxx X. Xxxxxxxx
------------------------------ Title: Vice-President, Human Resources
Page 5 - INCENTIVE STOCK OPTION AGREEMENT
