EXHIBIT A
TO
AGREEMENT dated as of July 15, 2000
PURSUANT TO THE STRATABASE.COM 2000
STOCK OPTION PLAN
with
Fred Coombes
[X] (check if applicable)
The Option awarded under this Agreement is intended to be a
Nonqualifying Stock Option.
[_] (check if applicable)
The Option awarded under this Agreement is intended to qualify as an
Incentive Stock Option pursuant to Section 422 of the Code.
(a) Number of shares of the Common Stock
covered by the Option: 350,000 Shares.
(b) Exercise price per share: $0.50.
(c) Vesting Date: July 15, 2000.
(d) Exercise Period: 10 years from date of grant.
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STRATABASE.COM
STOCK OPTION AGREEMENT
This Stock Option Agreement (the Agreement) is entered into as of July
15, 2000, by and between STRATABASE.COM, a Nevada corporation (the Corporation)
and Fred Coombes (the Optionee).
WHEREAS, the Corporation desires to afford the Optionee an opportunity
to purchase certain Shares of the Corporation's common stock so as to acquire a
proprietary interest as a shareholder of the Corporation and to provide the
Optionee with an incentive to use his best efforts in the service of the
Corporation.
NOW, THEREFORE, in consideration of the premises and mutual covenants
set forth below, the parties agree as follows:
1. Grant of Option.
The Corporation hereby grants to Optionee the right to
purchase up to the aggregate number of Shares set forth in Exhibit A attached
hereto at the exercise price per Share stated therein. The right to purchase
such Shares shall be subject to all of the provisions, terms and conditions set
forth in this Agreement and in the STRATABASE.COM 2000 Stock Option (the Plan),
a copy of which is annexed hereto and made a part hereof. Unless defined in this
Agreement, capitalized terms used herein shall have the meaning ascribed to them
in the Plan.
[_] (check if applicable):
This Option is not intended to be and shall not be treated as
an Incentive Stock Option under Section 422 of the Code unless this sentence has
been manually crossed out and its deletion is followed by the signature of the
corporate officer who signed this Option on behalf of the Corporation
_____________.
2. Vesting Schedule and Expiration.
This Option shall not be exercisable prior to the vesting date
set forth in Exhibit A attached hereto or subsequent to the expiration date set
forth therein unless extended by the Board of Directors or the Option Committee.
During the exercise period, the Option may be exercised by the Optionee (or such
other person or persons authorized to exercise Options under the Plan), in whole
or in part, from time to time, subject to the maximum percentage of Options then
exercisable in accordance with the schedule set forth in Exhibit A attached
hereto. The Corporation agrees to maintain during such exercise period a
sufficient number of Shares (which may be authorized and unissued Shares or
issued Shares that have been reacquired by the Corporation) corresponding to the
number of unexercised Options granted to the Optionee after taking into account
any Share adjustment under the Plan.
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3. Restrictions on Transferability of Options.
This Option may not be transferred by the Optionee other than
by will or the laws of descent and distribution and may be exercised during the
Optionee's lifetime only by the Optionee or the Optionee's guardian or legal
representative. A transfer of an Option by will or the laws of descent and
distribution shall not be effective unless the Option Committee shall have been
furnished with such evidence as it may deem necessary to establish the validity
and effectiveness of the transfer.
4. Termination Provisions
(1) Except as provided in paragraphs (2), and (3) below, if an Optionee's
employment by, or relationship with, the Corporation is terminated voluntarily
or, by the Corporation, whether such termination is for Cause or for no reason
whatsoever, any Option heretofore granted which remains unexercised at the time
of such termination shall expire immediately, provided, however, that the Option
Committee may, in its sole and absolute discretion, within thirty (30) days of
such termination, waive the expiration of any Option awarded under the Plan, by
giving written notice of such waiver to the Optionee at such Optionee's last
known address. In the event of such waiver, the Optionee may exercise any such
Options only to such extent, for such time, and upon such terms and conditions
set forth in subparagraph (i) above. The determination as to whether a
termination is voluntary or for Cause shall be made by the Option Committee,
whose decision shall be final and conclusive.
(2) If an Optionee ceases to be employed by or ceases to perform services to the
Corporation by reason of death or Disability, the aggregate amount of
unexercised Options granted hereunder shall thereupon become fully vested and
immediately exercisable and shall expire no later than one (1) year thereafter
unless such Options by their terms expire before such date. During such one (1)
year period, the Optionee, or, in the case of death, the Optionee's estate or
the person or persons to whom the Option was transferred by will or the laws of
descent and distribution, may exercise any such Options, and if not exercised,
shall expire at the end of such one (1) year period unless such Options by their
terms expire before such date.
(3) If the Optionee ceases to be employed by, or ceases to provide services to
the Corporation by reason of Retirement, the aggregate amount of unexercised
Options granted hereunder shall thereupon become fully vested and immediately
exercisable and shall expire, in the case of an Incentive Stock Option, no later
than three (3) months following such Retirement, or in the case of a
Nonqualifying Stock Option one (1) year following Retirement, unless, in either
case, the Options by their terms expire prior to such date.
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5. Exercise, Payment for and Delivery of Stock
This Option may be exercised by the Optionee or other person
then entitled to exercise it by delivery of a written notice to the Secretary of
the Corporation together with this Option Agreement specifying the number of
Options intended to be exercised and the exercise price and accompanied by
payment in full of the exercise price for the number of Shares with respect to
which the Option is exercised.
If the Corporation is required to withhold any federal, state
or local tax as a result of such exercise, the notice shall also be accompanied
by a check payable to the Corporation in payment of the applicable amount
required to be withheld, unless alternate arrangements have been agreed to
between the parties to satisfy any applicable withholding obligations.
Payment for Shares may be made in cash, or with the approval
of the Option Committee (which may be withheld in its sole discretion) with
Shares having a fair market value on the date of exercise equal to the exercise
price, or a combination of cash and Shares. In addition, subject to the approval
of the Option Committee (which may be withheld in its sole discretion), payment
may be effected wholly or partly by monies borrowed from the Corporation
pursuant to the terms of a promissory note, the terms and conditions of which
shall be determined from time to time by the Option Committee. An Optionee may
purchase less than the total numbers of Shares for which Options are then
exercisable, provided, however, that any partial exercise shall not be for less
than 100 Shares and shall not include any fractional Shares. No Optionee, legal
representative of such Optionee, as the case may be, shall be, or shall be
deemed to be, the owner of any Shares covered by an Option unless and until
certificates for the Shares are issued to the Optionee or such Optionee's
representative under the Plan.
6. Adjustments.
In the event that there is any change in the Shares of the
Corporation arising through merger, consolidation, reorganization,
recapitalization, stock dividend, stock split or combination thereof, the Board
of Directors shall make such adjustments in the aggregate number of Options
subject to this Agreement and/or the price per share of such Options in order to
prevent dilution or enlargement of the Optionee's rights and of the value
represented by the Options. Upon any adjustment in the number or exercise price
of Shares subject to an Option, a new Option may be granted in place of such
Option which has been so adjusted. In the event of a dissolution or liquidation
of the Corporation or a merger, consolidation, sale of all or substantially all
of the Corporation's assets, or other corporate reorganization in which the
Corporation is not the surviving corporation, or any merger in which the
Corporation is the surviving corporation but the holders of Shares receive
securities of another corporation, outstanding Options shall terminate, provided
that the holder of each Option shall, in such event, if no provision has been
made for the substitution of a new option for such outstanding option, have the
right immediately prior to such event to exercise the holder's Options in whole
or in part without regard to the date on which the Options otherwise would be
first exercisable.
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7. Compliance with Laws and Regulations.
By accepting this Option, the Optionee represents and agrees
for himself and his transferees by will or the laws of descent and distribution
that, unless a registration statement under Securities Act of 1933 is in effect
as to Shares purchased upon any exercise of this Option, (a) any and all Shares
so purchased shall be acquired for his personal account and not with a view to
or for sale in connection with distribution, and (b) each notice of exercise of
all or any portion of this Option shall, if the Option Committee so requests, be
accompanied by a representation and warranty in writing, signed by the person
entitled to exercise the same, that the Shares are being so acquired in good
faith for his or her personal account and not with a view to or for sale in
connection with any distribution.
No certificates for Shares purchased upon exercise of this
Option shall be issued and delivered unless and until, in the opinion of legal
counsel for the Corporation, such securities may be issued and delivered without
causing the Corporation to be in violation of or incur any liability under any
federal, state or other securities law or any other requirement of law or of any
regulatory body having jurisdiction over the Corporation. Without limiting the
generality of the foregoing, the Optionee acknowledges and understands that the
Shares subject to the Options granted hereunder have not been registered under
the Securities Act of 1933, as amended, or under the blue sky or securities laws
of any state, that the Corporation has no obligation to so register any of such
Shares and that, except to the extent the Shares are so registered, the Shares
will be restricted securities and may be sold, transferred or otherwise disposed
of only if an exemption from such registration is available. Unless the Shares
have been so registered, there shall be noted conspicuously upon each stock
certificate representing such Shares, the following statement:
The shares of stock represented by this certificate have not been
registered under the Securities Act of 1933 (1933 Act) nor under any
applicable state securities act and may not be offered or sold except
pursuant to (i) an effective registration statement relating to such
stock under the 1933 Act and any applicable state securities act, (ii)
to the extent applicable, Rule 144 under the 1933 Act (or any similar
rule under such act or acts relating to the disposition of securities),
or (iii) an opinion of counsel satisfactory to the Corporation that an
exemption from registration under Act or Acts is available.
8. Invalidity; Severability.
If any clause or provision of this Agreement shall be adjudged
invalid, the same shall not affect the validity of any other clause or provision
of this Agreement, or of any other document pertaining to the subject matter
thereof, or constitute by reason thereof, any claim or cause of action in favor
of Optionee as against the Corporation. In addition, the provisions of this
Agreement shall be read and construed and shall have effect as separate,
severable and independent provisions or restrictions, and shall be enforceable
accordingly.
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9. Entire Agreement; No Waiver; Remedies.
This Agreement contains the entire agreement of the parties
and incorporates and supersedes any and all prior or contemporaneous oral or
written agreements with respect to the matters referred to in it. No waiver of
any breach or default hereunder shall be considered valid unless in writing and
signed by the party giving such waiver, and no such waiver shall be deemed a
waiver of any subsequent breach or default of the same or similar nature. No
failure on the part of any party to exercise, and no delay in exercising any
right, remedy, power or privilege hereunder shall operate as a waiver thereof;
no waiver whatever shall be valid unless in writing signed by the party or
parties to be charged and then only to the extent specifically set forth in such
writing. All remedies, rights, powers and privileges, either under this
Agreement or by law or otherwise afforded the parties to this Agreement, shall
be cumulative and shall not be exclusive of any remedies, rights, powers and
privileges provided by law.
10. Successors and Assigns.
The rights and obligations of the Corporation under this
Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Corporation.
11. Headings; Counterparts; Governing Law.
The headings in this Agreement are for convenience of
reference only and are not intended to define or limit the contents of any
section or paragraph. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement shall in
all respects be governed by the laws (without reference to conflicts of laws
principles) of the State of Nevada applicable to contracts made and performed
within the State of Nevada.
12. Execution.
(1) The grant of the Option hereunder shall be binding and effective only if
this Agreement is duly executed by or on behalf of the Corporation and by the
Optionee, and a signed copy is returned to the Corporation.
(2) The Optionee acknowledges that no assurances or representations are made by
the Corporation as to the present or future market value of the Shares or as to
the business, affairs, financial condition or prospects of the Corporation.
13. Governing Provisions.
In the event of any conflict between the terms and provisions
contained in this Agreement and the terms and provisions contained in the Plan,
the terms, provisions and conditions set forth in the Plan shall govern.
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14. Optionee Bound by Plan.
OPTIONEE ACKNOWLEDGES RECEIPT OF THE ATTACHED COPY OF THE STRATABASE.COM 2000
STOCK OPTION PLAN AND AGREES TO BE BOUND BY ALL THE TERMS AND PROVISIONS
THEREOF.
AGREED AND ACCEPTED: STRATABASE.COM
/s/ Fred Coombes By: /s/Trevor Newton
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Optionee Name: Trevor Newton
