As filed with the Securities and Exchange Commission on October 24, 1997
Registration No. 333-_____
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
NUMEREX CORP.
(Exact name of Registrant as specified in its charter)
Pennsylvania 112948749
- -------------------------------------- ----------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
100 Four Falls Corporate Center
Suite 407
Route 23 & Woodmont Road
West Conshohoken, PA 19428-2961
(Address of Principal Executive Offices)
AMENDED AND RESTATED 1994 EMPLOYEE STOCK OPTION PLAN
AMENDED AND RESTATED 1994 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS
(Full title of the Plans)
John J. Reis
President and Chief Executive Officer
Numerex Corp.
(610) 941-2844
100 Four Falls Corporate Center
Route 23 & Woodmont Road
West Conshohoken, PA 19428-2961
(Name, address and telephone number,
including area code, of agent for service)
Copies of Communications To:
BARRY H. GENKIN, ESQUIRE
Blank Rome Comisky & McCauley
ONE LOGAN SQUARE
Philadelphia, Pennsylvania 19103
(215) 569-5514
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
====================================================================================================================================
Amount Proposed maximum Proposed maximum Amount of
Title of securities to be offering price aggregate offering registration fee
to be registered registered(1) per share(2) price (2)
====================================================================================================================================
<S> <C> <C> <C> <C>
Common Stock, no par value
per share ............................. 810,000 $5.5259 $4,475,679 $1,356.14
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Plus such indeterminate number of shares as may be issued pursuant to
certain anti-dilution provisions contained in the Plans.
(2) Pursuant to Rule 457(h), based upon the price at which stock options
covered by this Registration Statement may be exercised and, in the case
where such price is not know, upon the average of the high and low sale
prices of Numerex Corp.'s Common Stock, no par value per share, reported
on the Nasdaq National Market on October 20, 1997.
<PAGE>
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1. Plan Information.
The document(s) containing the information specified in Item 1 of Form S-8 will
be sent or given to participants in the Numerex Corp. Amended and Restated 1994
Employee Option Plan and the Amended and Restated 1994 Stock Option Plan for
Non-Employee Directors (the "Plans") as specified by Rule 428(b)(1) promulgated
by the Securities and Exchange Commission (the "Commission") under the
Securities Act of 1933, as amended (the "Securities Act").
Such documents are not being filed with the Commission, but constitute (along
with the documents referred to in Item 2 and those incorporated by reference
into this Registration Statement pursuant to Item 3 of Part II hereof) a
Prospectus that meets the requirements of Section 10(a) of the Securities Act.
Item 2. Registrant Information and Employee Plan Annual Information.
The document(s) containing the information specified in Item 2 of Form S-8 will
be sent or given to participants in the Plans as specified by Rule 428(b)(1)
promulgated by the Commission under the Securities Act. Such documents are not
being filed with the Commission, but constitute (along with the documents
referred to in Item 1 and those incorporated by reference into this Registration
Statement pursuant to Item 3 of Part II hereof) a Prospectus that meets the
requirements of Section 10(a) of the Securities Act.
The Company shall furnish without charge to each person to whom the Prospectus
is delivered, on the written or oral request of such person, a copy of any and
all of the documents incorporated by reference, other than exhibits to such
documents (unless such exhibits are specifically incorporated by reference to
the information that is incorporated). Requests should be directed to Numerex
Corp. 100 Four Falls Corporate Center, Suite 407, Route 23 & Woodmont Road, West
Conshohocken, PA 19428-2961, Attention: Charles L. McNew, Vice President and
Chief Financial Officer, telephone number (610) 941-2844.
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<PAGE>
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Certain Documents by Reference.
The following documents filed with the Commission are incorporated herein by
reference:
(a) Registrant's Annual Report on Form 10-K for the fiscal year ended October
31, 1996; and
(b) All other reports filed by the Registrant pursuant to Section 13(a) or
15(d) of the Exchange Act since October 31, 1996; and
(c) The Company's Common Stock was registered under Section 12(g) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
description of the Company's Common Stock is incorporated by reference from
the Company's Registration Statement on Form S-1 (File No. 33-89794) filed
with the Commission on February 28, 1995 and all amendments or reports
filed for the purpose of updating such description.
All documents subsequently filed by the Company with the Commission
pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, after the
date hereof, and prior to the filing of a post-effective amendment which
indicates that all securities offered hereby have been sold or which deregisters
all securities then remaining unsold hereunder, shall be deemed incorporated by
reference into this Registration Statement and to be a part thereof from the
date of the filing of such documents.
All information appearing in this Registration Statement and the Prospectus
is qualified in its entirety by the detailed information, including financial
statements, appearing in the documents incorporated herein or therein by
reference.
Item 4. Description of Securities.
Not Applicable.
Item 5. Interests of Named Experts and Counsel.
Not Applicable.
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<PAGE>
Item 6. Indemnification of Directors and Officers.
Section 1741 through 1750 of Subchapter D, Chapter 17, of the Pennsylvania
Business Corporation Law of 1988, as amended, (the "BCL"), contain provisions
for mandatory and discretionary indemnification of a corporation's directors,
officers and other personnel, and related matters.
Under Section 1741, subject to certain limitations, a corporation has the
power to indemnify directors and officers under certain prescribed circumstances
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred in connection with an action or
proceeding, whether civil, criminal, administrative or investigative, to which
any of them is a part by reason of his being a representative, director or
officer of the corporation or serving at the request of the corporation as a
representative of another corporation, partnership, joint venture, trust or
other enterprise, if he acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of the corporation and,
with respect to any criminal proceeding, had no reasonable cause to believe his
conduct was unlawful. Under Section 1743, indemnification is mandatory to the
extent that the officer or director has been successful on the merits or
otherwise in defense of any action or proceeding if the appropriate standards of
conduct are met.
Section 1742 provides for indemnification in derivative actions except in
respect of any claim, issue or matter as to which the person has been adjudged
to be liable to the corporation unless and only to the extent that the proper
court determines upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, the person is fairly and
reasonably entitled to indemnity for the expenses that the court deems proper.
Section 1744 provides that, unless ordered by a court, any indemnification
under Section 1741 or 1742 shall be made by the corporation only as authorized
in the specific case upon a determination that the representative met the
applicable standard of conduct, and such determination will be made by the board
of directors (i) by a majority vote of a quorum of directors not parties to the
action or proceeding; (ii) if a quorum is not obtainable, or if obtainable and a
majority of disinterested directors so directs, by independent legal counsel; or
(iii) by the shareholders.
Section 1745 provides that expenses incurred by an officer, director,
employee or agent in defending a civil or criminal action or proceeding may be
paid by the corporation in advance of the final disposition of such action or
proceeding upon receipt of an undertaking by or on behalf of such person to
repay such amount if it shall ultimately be determined that he or she is not
entitled to be indemnified by the corporation.
Section 1746 provides generally that, except in any case where the act or
failure to act giving rise to the claim for indemnification is determined by a
court to have constituted willful misconduct or recklessness, the
indemnification and advancement of expenses provided by Subchapter 17D of the
BCL shall not be deemed exclusive of any other rights to which a person
II-2
<PAGE>
seeking indemnification or advancement of expenses may be entitled under any
bylaw, agreement, vote of shareholders or disinterested directors or otherwise,
both as to action in his or her official capacity and as to action in another
capacity while holding that office.
Section 1747 grants to a corporation the power to purchase and maintain
insurance on behalf of any director or officer against any liability incurred by
him or her in his or her capacity as officer or director, whether or not the
corporation would have the power to indemnify him or her against the liability
under Subchapter 17D of the BCL.
Section 1748 and 1749 extend the indemnification and advancement of
expenses provisions contained in Subchapter 17D of the BCL to successor
corporations in fundamental changes and to representatives serving as
fiduciaries of employee benefit plans.
Section 1750 provides that the indemnification and advancement of expenses
provided by, or granted pursuant to, Subchapter 17D of the BCL, shall, unless
otherwise provided when authorized or ratified, continue as to a person who has
ceased to be a director, officer, employee or agent and shall inure to the
benefit of the heirs and personal representative of such person.
For information regarding provisions under which a director or officer of
the Company may be indemnified in any manner against any liability which he or
she may incur in his or her capacity as such, reference is made to Article 11 of
the Company's Articles of Incorporation and Article IV of the Company's Bylaws,
which provide in general that the Company shall indemnify its officers and
directors to the fullest extent authorized by law.
The Company has obtained directors' and officers' liability insurance which
covers certain liabilities, including liabilities to the Company and its
shareholders, in the amount of $2.0 million.
Item 7. Exemption from Registration Claimed.
Not Applicable.
Item 8. Exhibits.
The following exhibits are filed as part of this Registration Statement.
Exhibit Number Description
<TABLE>
<S> <C>
5.1 Opinion of Blank Rome Comisky & McCauley
10.1 Numerex Corp. Amended and Restated 1994 Stock Option Plan
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<PAGE>
10.2 Numerex Corp. Amended and Restated 1994 Stock Option Plan for Non-
Employee Directors
23.1 Consent of Blank Rome Comisky & McCauley (included in Exhibit 5.1)
23.2 Consent of Deloitte & Touche LLP
24.1 Power of Attorney (included on signature page)
</TABLE>
Item 9. Undertakings.
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
Post-Effective Amendment to this Registration Statement;
(i) To include any Prospectus required by section 10(a)(3) of the
Securities Act of 1933, as amended:
(ii) To reflect in the Prospectus any facts or events arising after
the effective date of the Registration Statement (or the most recent
Post-Effective Amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
Registration Statement.
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the Registration Statement or any
material change to such information in the Registration Statement;
Provided, however, that paragraph (a)(1)(i) and (a)(1)(ii) do not apply if
the Registration Statement is on Form S-3 or S-8 and the information required to
be included in a Post-Effective Amendment by those paragraphs is contained in
periodic reports filed by the Registrant pursuant to section 13 or section 15(d)
of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") that
are incorporated by reference in the Registration Statement.
(2) That for the purpose of determining any liability under the Securities
Act each such Post-Effective Amendment shall be deemed to be a new Registration
Statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
(3) To remove from registration by means of Post-Effective Amendment any of
the securities being registered which remain unsold at the termination of the
offering.
II-4
<PAGE>
(b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
Registrant's Annual Report pursuant to Section 13(a) or Section 15(d) of the
Exchange Act (and, where applicable, each filing of an employee benefit plan's
Annual Report pursuant to Section 15(d) of the Exchange Act) that is
incorporated by reference in the Registration Statement shall be deemed to be a
new Registration Statement to the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused this Registration
Statement on Form S-8 to be signed on its behalf by the undersigned, thereunto
duly authorized, in West Conshohocken, Pennsylvania, on this 24th day of
October, 1997.
NUMEREX CORP.
By: /s/ John J. Reis
----------------------------------
John J. Reis
President and Chief Executive Officer
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below hereby authorizes John J. Reis or Charles L. McNew to file one or more
Amendments, including Post-Effective Amendments, to this Registration Statement,
which Amendments may make such changes as John J. Reis or Charles L. McNew deem
appropriate, and each person whose signature appears below, individually and in
each capacity stated below hereby appoints John J. Reis or Charles L. McNew as
attorney-in-fact to execute in his name and on his behalf any such Amendments to
this Registration Statement.
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed below by the following persons in
the capacities and on the date indicated.
<TABLE>
<CAPTION>
Signature Capacity Date
--------- -------- ----
<S> <C> <C>
/s/ John J. Reis President and Chief Executive October 24, 1997
- ------------------------------------------------- Officer
John J. Reis (Principal Executive Officer)
/s/ Charles L. McNew Vice President and Chief October 24, 1997
- ------------------------------------------------ Financial Officer
Charles L. McNew (Principal Financial and
Accounting Officer)
/s/ Matthew J. Flanigan Director October 24, 1997
- -----------------------------------------------
Matthew J. Flanigan
/s/ Frederick C. Shay Director October 24, 1997
- -----------------------------------------------
Frederick C. Shay
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<PAGE>
<CAPTION>
Signature Capacity Date
--------- -------- ----
/s/ Kenneth F. Manser Director October 24, 1997
- -----------------------------------------------
Kenneth F. Manser
/s/ George Benson Director October 24, 1997
- -----------------------------------------------
George Benson
/s/ Gordon T. Ray Director October 24, 1997
- -----------------------------------------------
Gordon T. Ray
/s/ Andrew J. Ryan Director October 24, 1997
- -----------------------------------------------
Andrew J. Ryan
</TABLE>
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<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
S-8 Exhibit Number Description
- ------------------ -----------
<S> <C>
5.1 Opinion of Blank Rome Comisky & McCauley
10.1 Numerex Corp. Amended and Restated 1994 Stock Option Plan
10.2 Numerex Corp. Amended and Restated 1994 Stock Option Plan for Non-
Employee Directors
23.1 Consent of Blank Rome Comisky & McCauley (included in Exhibit 5.1)
23.2 Consent of Deloitte & Touche LLP
</TABLE>
II-8
Exhibit 5.1
Opinion of Blank Rome Comisky & McCauley
<PAGE>
Exhibit 5.1
October 24, 1997
Numerex Corp.
100 Four Falls Corporate Center
Route 23 & Woodmont Road
West Conshohocken, PA 19428-2961
RE: Numerex Corp. Registration Statement on Form S-8
-------------------------------------------------
Gentlemen:
We have acted as counsel to Numerex Corp. (the "Company") in connection
with the Registration Statement on Form S-8 (the "Registration Statement") filed
by the Company with the Securities and Exchange Commission pursuant to the
Securities Act of 1933, as amended, relating to the offer and sale of up to
810,000 shares of common stock, no par value per share (the "Common Stock"), by
the Company pursuant to the Numerex Corp. Amended and Restated 1994 Stock Option
Plan and Numerex Corp. Amended and Restated 1994 Stock Option Plan for
Non-Employee Directors (collectively, the "Plans"). This opinion is furnished
pursuant to the requirements of Item 601(b)(5) of Regulation S-K.
In rendering this opinion, we have examined only the documents listed
on Exhibit "A" attached hereto. Our opinion is therefore qualified in all
respects by the scope of that document examination. We have assumed and relied,
as to questions of fact and mixed questions of law and fact, on the truth,
completeness, authenticity and due authorization of all certificates, documents,
and records examined and the genuineness of all signatures. This opinion is
limited to the laws of the Commonwealth of Pennsylvania.
Based upon and subject to the foregoing, we are of the opinion that the
shares of Common Stock of the Company, when issued by the Company pursuant the
Registration Statement and the Plans, will be legally issued, fully paid and
non-assessable.
We hereby consent to the filing of this opinion as an Exhibit to the
Registrant Statement.
Sincerely,
/s/ BLANK ROME COMISKY & MCCAULEY
---------------------------------
BLANK ROME COMISKY & MCCAULEY
<PAGE>
EXHIBIT "A"
1. The Company's Amended and Restated Articles of Incorporation, as
filed with the Secretary of the State of the Commonwealth of
Pennsylvania.
2. The Company's Amended and Restated Bylaws.
3. The Company's minute book through the date hereof.
4. The Company's Plans.
Exhibit 10.1
Numerex Corp. Amended and Restated 1994 Stock Option Plan
<PAGE>
Exhibit 10.1
NUMEREX CORP.
AMENDED AND RESTATED 1994 EMPLOYEE STOCK OPTION PLAN
1. Purpose of Plan
The purpose of this Amended and Restated 1994 Employee Stock Option
Plan (the "Plan") is to provide additional incentive to officers and other key
employees of Numerex Corp. (the "Company") and each present or future parent or
subsidiary corporation by encouraging them to invest in shares of the Company's
common stock and thereby acquire a proprietary interest in the Company and an
increased personal interest in the Company's continued success and progress, to
the mutual benefit of officers, employees and shareholders.
2. Aggregate Number of Shares
747,500 shares of the Company's Class A Common Stock (the "Common
Stock"), shall be the aggregate number of shares which may be issued under this
Plan. Notwithstanding the foregoing, in the event of any change in the
outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the Option
Committee (defined in Section 4(a)), deems in its sole discretion to be similar
circumstances, the aggregate number and kind of shares which may be issued under
this Plan shall be appropriately adjusted in a manner determined in the sole
discretion of the Option Committee. Reacquired shares of the Company's Common
Stock, as well as unissued shares, may be used for the purpose of this Plan.
Common Stock of the Company subject to options which have terminated
unexercised, either in whole or in part, shall be available for future options
granted under this Plan.
3. Class of Persons Eligible to Receive Options; Participant Limitation
(a) All officers and key employees of the Company and of any present or
future Company parent or subsidiary corporation are eligible to receive an
option or options under this Plan, but excluding directors who are eligible for
options under the 1994 Stock Option Plan for Non-Employee Directors. The
individuals who shall, in fact, receive an option or options shall be selected
by the Option Committee, in its sole discretion, except as otherwise specified
in Section 4 hereof.
(b) The maximum number of shares of Common Stock for which options may
be granted under this Plan to any participant during any fiscal year of the
Company is 100,000 shares (as adjusted for any change in the outstanding shares
of the Common Stock of the Company by reason of a stock dividend, stock split,
combination of shares, recapitalization, merger, consolidation, transfer of
assets, reorganization, conversion or what the Option Committee deems in its
sole discretion to be similar circumstances).
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<PAGE>
4. Administration of Plan
(a) This Plan shall be administered by the Option Committee
("Committee") appointed by the Company's Board of Directors. The Committee shall
consist of a minimum of two and a maximum of five members of the Board of
Directors, each of whom shall be a "disinterested person" within the meaning of
Rule 16b-3(c)(2)(i) under the Securities Exchange Act of 1934, as amended, or
any future corresponding rule. The Committee shall, in addition to its other
authority and subject to the provisions of this Plan, determine which
individuals shall in fact be granted an option or options, whether the option
shall be an Incentive Stock Option or a Non-Qualified Stock Option (as such
terms are defined in Section 5(a)), the number of shares to be subject to each
of the options, the time or times at which the options shall be granted, the
rate of option exercisability, and, subject to Section 5 hereof, the price at
which each of the options is exercisable and the duration of the options.
(b) The Committee shall adopt such rules for the conduct of its
business and administration of this Plan as it considers desirable. A majority
of the members of the Committee shall constitute a quorum for all purposes. The
vote or written consent of a majority of the members of the Committee on a
particular matter shall constitute the act of the Committee on such matter. The
Committee shall have the right to construe the Plan and the options issued
pursuant to it, to correct defects and omissions and to reconcile
inconsistencies to the extent necessary to effectuate the Plan and the options
issued pursuant to it, and such action shall be final, binding and conclusive
upon all parties concerned. No member of the Committee or the Board of Directors
shall be liable for any act or omission (whether or not negligent) taken or
omitted in good faith, or for the exercise of an authority or discretion granted
in connection with the Plan to a Committee or the Board of Directors, or for the
acts or omissions of any other members of a Committee or the Board of Directors.
Subject to the numerical limitations on Committee membership set forth in
Section 4(a) hereof, the Board of Directors may at any time appoint additional
members of the Committee and may at any time remove any member of the Committee
with or without cause. Vacancies in the Committee, however caused, may be filled
by the Board of Directors, if it so desires.
5. Incentive Stock Options and Non-Qualified Stock Options
(a) Options issued pursuant to this Plan may be either Incentive Stock
Options granted pursuant to Section 5(b) hereof or Non-Qualified Stock Options
granted pursuant to Section 5(c) hereof, as determined by the Committee. An
"Incentive Stock Option" is an option which satisfies all of the requirements of
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code") and
the regulations thereunder, and a "Non-Qualified Stock Option" is an option
which either does not satisfy all of those requirements or the terms of the
option provide that it will not be treated as an Incentive Stock Option. The
Committee may grant both an Incentive Stock Option and a Non-Qualified Stock
Option to the same person, or more than one of each type of option to the same
2
<PAGE>
person. The option price for Incentive Stock Options issued under this Plan
shall be equal at least to the fair market value (as defined below) of the
Company's Common Stock on the date of the grant of the option. The option price
for Non-Qualified Stock Options issued under this Plan may, in the sole
discretion of the Committee, be less than the fair market value of the Common
Stock on the date of the grant of the option. The fair market value of the
Company's Common Stock on any particular date shall mean the last reported sale
price of a share of the Company's Common Stock on any stock exchange on which
such stock is then listed or admitted to trading, or on the Nasdaq National
Market or the Nasdaq SmallCap Market, on such date, or if no sale took place on
such day, the last such date on which a sale took place, or if the Common Stock
is not then quoted on the Nasdaq National Market or the Nasdaq SmallCap Market,
or listed or admitted to trading on any stock exchange, the average of the bid
and asked prices in the over-the-counter market on such date, or if none of the
foregoing, a price determined by the Committee.
(b) Subject to the authority of the Committee set forth in Section 4(a)
hereof, Incentive Stock Options issued pursuant to this Plan shall be issued
substantially in the form set forth in Appendix I hereof, which form is hereby
incorporated by reference and made a part hereof, and shall contain
substantially the terms and conditions set forth therein. Incentive Stock
Options shall not be exercisable after the expiration of ten years from the date
such options are granted, unless terminated earlier under the terms of the
option. At the time of the grant of an Incentive Stock Option hereunder, the
Committee may, in its discretion, modify or amend any of the option terms
contained in Appendix I for any particular optionee, provided that the option as
modified or amended satisfies the requirements of Section 422 of the Code and
the regulations thereunder. Each of the options granted pursuant to this Section
5(b) is intended, if possible, to be an "Incentive Stock Option" as that term is
defined in Section 422 of the Code and the regulations thereunder. In the event
this Plan or any option granted pursuant to this Section 5(b) is in any way
inconsistent with the applicable legal requirements of the Code or the
regulations thereunder for an Incentive Stock Option, this Plan and such option
shall be deemed automatically amended as of the date hereof to conform to such
legal requirements, if such conformity may be achieved by amendment.
(c) Subject to the authority of the Committee set forth in Section 4(a)
hereof, Non-Qualified Stock Options issued pursuant to this Plan shall be issued
substantially in the form set forth in Appendix II hereof, which form is hereby
incorporated by reference and made a part hereof, and shall contain
substantially the terms and conditions set forth therein. Non-Qualified Stock
Options shall expire ten years and 30 days after the date they are granted,
unless terminated earlier under the option terms. At the time of granting a
Non-Qualified Stock Option hereunder, the Committee may, in its discretion,
modify or amend any of the option terms contained in Appendix II for any
particular optionee.
(d) Neither the Company nor any of its current or future parent,
subsidiaries or affiliates, nor their officers, directors, shareholders, stock
option plan committees, employees or agents shall have any liability to any
optionee in the event (i) an option granted pursuant to Section 5(b) hereof does
not qualify as an "Incentive Stock Option" as that term is used in Section 422
of the Code and the regulations thereunder; (ii) any optionee does not obtain
the tax treatment pertaining to an Incentive Stock Option; or (iii) any option
granted pursuant to Section 5(c) hereof is an "Incentive Stock Option."
3
<PAGE>
6. Modification, Amendment, Suspension and Termination
Options shall not be granted pursuant to this Plan after the expiration
of ten years from the date the Plan is adopted by the Board of Directors of the
Company. The Board of Directors reserves the right at any time, and from time to
time, to modify or amend this Plan in any way, or to suspend or terminate it,
effective as of such date, which date may be either before or after the taking
of such action, as may be specified by the Board of Directors; provided,
however, that such action shall not affect options granted under the Plan prior
to the actual date on which such action occurred. If a modification or amendment
of this Plan is required by the Code or the regulations thereunder to be
approved by the shareholders of the Company in order to permit the granting of
"Incentive Stock Options" (as that term is defined in Section 422 of the Code
and regulations thereunder) pursuant to the modified or amended Plan, such
modification or amendment shall also be approved by the shareholders of the
Company in such manner as is prescribed by the Code and the regulations
thereunder. If the Board of Directors voluntarily submits a proposed
modification, amendment, suspension or termination for shareholder approval,
such submission shall not require any future modifications, amendments,
suspensions or terminations (whether or not relating to the same provision or
subject matter) to be similarly submitted for shareholder approval.
7. Effectiveness of Plan
The Plan originally became effective on March 8, 1994, the date of its
adoption by the Company's Board of Directors, and was approved by the holders of
the Company's Common Stock in the manner as prescribed in the Code and the
regulations thereunder on May 5, 1994. The amendments reflected herein were
approved by the Board of Directors on December 7, 1994 but shall not become
effective unless and until approved by the holders of the Company's Common Stock
in the manner as prescribed in the Code and the regulations thereunder. Options
for the additional shares of Common Stock authorized by the amendments reflected
herein may be granted under this Plan prior to obtaining shareholder approval,
provided such options shall not be exercisable until shareholder approval is
obtained.
8. General Conditions
(a) Nothing contained in this Plan or any option granted pursuant to
this Plan shall confer upon any employee the right to continue in the employ of
the Company or any affiliated or subsidiary corporation or interfere in any way
with the rights of the Company or any affiliated or subsidiary corporation to
terminate his employment in any way.
(b) Corporate action constituting an offer of stock for sale to any
employee under the terms of the options to be granted hereunder shall be deemed
complete as of the date when the Committee authorizes the grant of the option to
the employee, regardless of when the option is actually delivered to the
employee or acknowledged or agreed to by him.
4
<PAGE>
(c) The terms "parent corporation" and "subsidiary corporation" as used
throughout this Plan, and the options granted pursuant to this Plan, shall
(except as otherwise provided in the option form) have the meaning that is
ascribed to that term when contained in Section 422(b) of the Code and the
regulations thereunder, and the Company shall be deemed to be the grantor
corporation for purposes of applying such meaning.
(d) References in this Plan to the Code shall be deemed to also refer
to the corresponding provisions of any future United States revenue law.
(e) The use of the masculine pronoun shall include the feminine gender
whenever appropriate.
5
<PAGE>
APPENDIX I
INCENTIVE STOCK OPTION
To:
-------------------------------------------------------------------------
Name
-------------------------------------------------------------------------
Address
Date of Grant: ______________________
You are hereby granted an option, effective as of the date hereof, to
purchase __________ shares of Class A Common Stock (the "Common Stock"), no par
value, of Numerex Corp. (the "Company") at a price of $____ per share pursuant
to the Company's Amended and Restated 1994 Employee Stock Option Plan (the
"Plan").
Your option may first be exercised on and after one year from the date
of grant, but not before that time. On and after one year and prior to two years
from the date of grant, your option may be exercised for up to 33 1/3% of the
total number of shares subject to the option minus the number of shares
previously purchased by exercise of the option (as adjusted for any change in
the outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the Option
Committee deems in its sole discretion to be similar circumstances). Each
succeeding year thereafter, your option may be exercised for up to an additional
33 1/3% of the total number of shares subject to the option minus the number of
shares previously purchased by exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the Option
Committee deems in its sole discretion to be similar circumstances). Thus, this
option is fully exercisable on and after three years after the date of grant,
except if terminated earlier as provided herein. No fractional shares shall be
issued or delivered. This option shall terminate and is not exercisable after
ten years from the date of its grant (the "Scheduled Termination Date"), except
if terminated earlier as hereafter provided.
In the event of a "change of control" (as hereafter defined) of the
Company, your option may, from and after the date of the change of control, and
notwithstanding the foregoing paragraph, be exercised for up to 100% of the
total number of shares then subject to the option minus the number of shares
previously purchased upon exercise of the option (as adjusted for stock
dividends, stock splits, combinations of shares and what the Option Committee
deems in its sole discretion to be similar circumstances). A "change of control"
shall be deemed to have occurred upon the happening of any of the following
events:
<PAGE>
1. A change within a twelve-month period in a majority of the members
of the board of directors of the Company;
2. A change within a twelve-month period in the holders of more than
50% of the outstanding voting stock of the Company; or
3. Any other event deemed to constitute a "change of control" by the
Option Committee.
You may exercise your option by giving written notice to the Secretary
of the Company on forms supplied by the Company at its then principal executive
office, accompanied by payment of the option price for the total number of
shares you specify that you wish to purchase. The payment may be in any of the
following forms: (a) cash, which may be evidenced by a check; (b) (unless
prohibited by the Option Committee) certificates representing shares of Common
Stock of the Company, which will be valued by the Secretary of the Company at
the fair market value per share of the Company's Common Stock (as determined in
accordance with the Plan) on the date of delivery of such certificates to the
Company, accompanied by an assignment of the stock to the Company; or (c)
(unless prohibited by the Option Committee) any combination of cash and Common
Stock of the Company valued as provided in clause (b). Any assignment of stock
shall be in a form and substance satisfactory to the Secretary of the Company,
including guarantees of signature(s) and payment of all transfer taxes if the
Secretary deems such guarantees necessary or desirable.
Your option will, to the extent not previously exercised by you,
terminate three months after the date on which your employment by the Company or
a Company subsidiary corporation is terminated (whether such termination be
voluntary or involuntary) other than by reason of disability as defined in
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "Code"),
and the regulations thereunder, or death, in which case your option will
terminate one year from the date of termination of employment due to disability
or death (but in no event later than the Scheduled Termination Date). After the
date your employment is terminated, as aforesaid, you may exercise this option
only for the number of shares which you had a right to purchase and did not
purchase on the date your employment terminated. If you are employed by a
Company subsidiary corporation, your employment shall be deemed to have
terminated on the date your employer ceases to be a Company subsidiary
corporation, unless you are on that date transferred to the Company or another
Company subsidiary corporation. Your employment shall not be deemed to have
terminated if you are transferred from the Company to a Company subsidiary
corporation, or vice versa, or from one Company subsidiary corporation to
another Company subsidiary corporation.
If you die while employed by the Company or a Company subsidiary
corporation, your executor or administrator, as the case may be, may, at any
time within one year after the date of your death (but in no event later than
the Scheduled Termination Date), exercise the option as to any shares which you
had a right to purchase and did not purchase during your lifetime. If your
employment with the Company or a Company parent or subsidiary corporation is
terminated by reason of your becoming disabled (within the meaning of Section
22(e)(3) of the Code and the regulations thereunder), you or
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<PAGE>
your legal guardian or custodian may at any time within one year after the date
of such termination (but in no event later than the Scheduled Termination Date),
exercise the option as to any shares which you had a right to purchase and did
not purchase prior to such termination. Your executor, administrator, guardian
or custodian must present proof of his authority satisfactory to the Company
prior to being allowed to exercise this option.
In the event of any change in the outstanding shares of the Common
Stock of the Company by reason of a stock dividend, stock split, combination of
shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Option Committee deems in its sole
discretion to be similar circumstances, the number and kind of shares subject to
this option and the option price of such shares shall be appropriately adjusted
in a manner to be determined in the sole discretion of the Option Committee.
This option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during your lifetime only by you,
including, for this purpose, your legal guardian or custodian in the event of
disability. Until the option price has been paid in full pursuant to due
exercise of this option and the purchased shares are delivered to you, you do
not have any rights as a shareholder of the Company. The Company reserves the
right not to deliver to you the shares purchased by virtue of the exercise of
this option during any period of time in which the Company deems, in its sole
discretion, that such delivery would violate a federal, state, local or
securities exchange rule, regulation or law.
Notwithstanding anything to the contrary contained herein, this option
is not exercisable until all the following events occur and during the following
periods of time:
(a) Until the Plan pursuant to which this option is granted is approved
by the shareholders of the Company in the manner prescribed by the Code and the
regulations thereunder;
(b) Until this option and the optioned shares are approved and/or
registered with such federal, state and local regulatory bodies or agencies and
securities exchanges as the Company may deem necessary or desirable; or
(c) During any period of time in which the Company deems that the
exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or securities exchange
rule, regulation or law, or may cause the Company to be legally obligated to
issue or sell more shares than the Company is legally entitled to issue or sell.
The following two paragraphs shall be applicable if, on the date of
exercise of this option, the Common Stock to be purchased pursuant to such
exercise has not been registered under the Securities Act of 1933, as amended,
and under applicable state securities laws, and shall continue to be applicable
for so long as such registration has not occurred:
3
<PAGE>
(a) The optionee hereby agrees, warrants and represents that he will
acquire the Common Stock to be issued hereunder for his own account for
investment purposes only, and not with a view to, or in connection with, any
resale or other distribution of any of such shares, except as hereafter
permitted. The optionee further agrees that he will not at any time make any
offer, sale, transfer, pledge or other disposition of such Common Stock to be
issued hereunder without an effective registration statement under the
Securities Act of 1933, as amended, and under any applicable state securities
laws or an opinion of counsel acceptable to the Company to the effect that the
proposed transaction will be exempt from such registration. The optionee shall
execute such instruments, representations, acknowledgements and agreements as
the Company may, in its sole discretion, deem advisable to avoid any violation
of federal, state, local or securities exchange rule, regulation or law.
(b) The certificates for Common Stock to be issued to the optionee
hereunder shall bear the following legend:
"The shares represented by this certificate have not been
registered under the Securities Act of 1933, as amended, or under
applicable state securities laws. The shares have been acquired for
investment and may not be offered, sold, transferred, pledged or
otherwise disposed of without an effective registration statement under
the Securities Act of 1933, as amended, and under any applicable state
securities laws or an opinion of counsel acceptable to the Company that
the proposed transaction will be exempt from such registration."
The foregoing legend shall be removed upon registration of the legended shares
under the Securities Act of 1933, as amended, and under any applicable state
laws or upon receipt of any opinion of counsel acceptable to the Company that
said registration is no longer required.
The sole purpose of the agreements, warranties, representations and
legend set forth in the two immediately preceding paragraphs is to prevent
violations of the Securities Act of 1933, as amended, and any applicable state
securities laws.
It is the intention of the Company and you that this option shall, if
possible, be an "Incentive Stock Option" as that term is used in Section 422 of
the Code and the regulations thereunder. In the event this option is in any way
inconsistent with the legal requirements of the Code or the regulations
thereunder for an "Incentive Stock Option," this option shall be deemed
automatically amended as of the date hereof to conform to such legal
requirements, if such conformity may be achieved by amendment.
This option shall be subject to the terms of the Plan in effect on the
date this option is granted, which terms are hereby incorporated herein by
reference and made a part hereof. In the event of any conflict between the terms
of this option and the terms of the Plan in effect on the date of this option,
the terms of the Plan shall govern. This option constitutes the entire
understanding between the Company and you with respect to the subject matter
hereof and no amendment, modification or waiver
4
<PAGE>
of this option, in whole or in part, shall be binding upon the Company unless in
writing and signed by the President of the Company. This option and the
performances of the parties hereunder shall be construed in accordance with and
governed by the laws of the Commonwealth of Pennsylvania.
Please sign the copy of this option and return it to the Company's
Secretary, thereby indicating your understanding of and agreement with its terms
and conditions.
NUMEREX CORP.
By: ______________________________
I hereby acknowledge receipt of a copy of the foregoing stock option
and, having read it hereby signify my understanding of, and my agreement with,
its terms and conditions.
- ---------------------------------------- -------------------------------
(Signature) (Date)
5
<PAGE>
APPENDIX II
NON-QUALIFIED STOCK OPTION
To:
-------------------------------------------------------------------------
Name
-------------------------------------------------------------------------
Address
Date of Grant: ______________________
You are hereby granted an option, effective as of the date hereof, to
purchase __________ shares of Class A Common Stock (the "Common Stock"), no par
value, of Numerex Corp. (the "Company") at a price of $____ per share pursuant
to the Company's Amended and Restated 1994 Employee Stock Option Plan (the
"Plan").
Your option may first be exercised on and after one year from the date
of grant, but not before that time. On and after one year and prior to two years
from the date of grant, your option may be exercised for up to 33 1/3% of the
total number of shares subject to the option minus the number of shares
previously purchased by exercise of the option (as adjusted for any change in
the outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the Option
Committee deems in its sole discretion to be similar circumstances). Each
succeeding year thereafter, your option may be exercised for up to an additional
33 1/3% of the total number of shares subject to the option minus the number of
shares previously purchased by exercise of the option (as adjusted for any
change in the outstanding shares of the Common Stock of the Company by reason of
a stock dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the Option
Committee deems in its sole discretion to be similar circumstances). Thus, this
option is fully exercisable on and after three years after the date of grant,
except if terminated earlier as provided herein. No fractional shares shall be
issued or delivered. This option shall terminate and is not exercisable after
ten years and 30 days from the date of its grant (the "Scheduled Termination
Date"), except if terminated earlier as hereafter provided.
In the event of a "change of control" (as hereafter defined) of the
Company, your option may, from and after the date of the change of control, and
notwithstanding the foregoing paragraph, be exercised for up to 100% of the
total number of shares then subject to the option minus the number of shares
previously purchased upon exercise of the option (as adjusted for stock
dividends, stock splits, combinations of shares and what the Option Committee
deems in its sole discretion to be similar
<PAGE>
circumstances). A "change of control" shall be deemed to have occurred upon the
happening of any of the following events:
1. A change within a twelve-month period in a majority of the members
of the board of directors of the Company;
2. A change within a twelve-month period in the holders of more than
50% of the outstanding voting stock of the Company; or
3. Any other event deemed to constitute a "change of control" by the
Option Committee.
You may exercise your option by giving written notice to the Secretary
of the Company on forms supplied by the Company at its then principal executive
office, accompanied by payment of the option price for the total number of
shares you specify that you wish to purchase. The payment may be in any of the
following forms: (a) cash, which may be evidenced by a check; (b) (unless
prohibited by the Option Committee) certificates representing shares of Common
Stock of the Company, which will be valued by the Secretary of the Company at
the fair market value per share of the Company's Common Stock (as determined in
accordance with the Plan) on the date of delivery of such certificates to the
Company, accompanied by an assignment of the stock to the Company; or (c)
(unless prohibited by the Option Committee) any combination of cash and Common
Stock of the Company valued as provided in clause (b). Any assignment of stock
shall be in a form and substance satisfactory to the Secretary of the Company,
including guarantees of signature(s) and payment of all transfer taxes if the
Secretary deems such guarantees necessary or desirable.
Your option will, to the extent not previously exercised by you,
terminate three months after the date on which your employment by the Company or
a Company subsidiary corporation is terminated (whether such termination be
voluntary or involuntary) other than by reason of disability as defined in
Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the "Code"),
and the regulations thereunder, or death, in which case your option will
terminate one year from the date of termination of employment due to disability
or death (but in no event later than the Scheduled Termination Date). After the
date your employment is terminated, as aforesaid, you may exercise this option
only for the number of shares which you had a right to purchase and did not
purchase on the date your employment terminated. If you are employed by a
Company subsidiary corporation, your employment shall be deemed to have
terminated on the date your employer ceases to be a Company subsidiary
corporation, unless you are on that date transferred to the Company or another
Company subsidiary corporation. Your employment shall not be deemed to have
terminated if you are transferred from the Company to a Company subsidiary
corporation, or vice versa, or from one Company subsidiary corporation to
another Company subsidiary corporation.
If you die while employed by the Company or a Company subsidiary
corporation, your executor or administrator, as the case may be, may, at any
time within one year after the date of your death (but in no event later than
the Scheduled Termination Date), exercise the option as to any shares which you
2
<PAGE>
had a right to purchase and did not purchase during your lifetime. If your
employment with the Company or a Company parent or subsidiary corporation is
terminated by reason of your becoming disabled (within the meaning of Section
22(e)(3) of the Code and the regulations thereunder), you or your legal guardian
or custodian may at any time within one year after the date of such termination
(but in no event later than the Scheduled Termination Date), exercise the option
as to any shares which you had a right to purchase and did not purchase prior to
such termination. Your executor, administrator, guardian or custodian must
present proof of his authority satisfactory to the Company prior to being
allowed to exercise this option.
In the event of any change in the outstanding shares of the Common
Stock of the Company by reason of a stock dividend, stock split, combination of
shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Option Committee deems in its sole
discretion to be similar circumstances, the number and kind of shares subject to
this option and the option price of such shares shall be appropriately adjusted
in a manner to be determined in the sole discretion of the Option Committee.
This option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during your lifetime only by you,
including, for this purpose, your legal guardian or custodian in the event of
disability. Until the option price has been paid in full pursuant to due
exercise of this option and the purchased shares are delivered to you, you do
not have any rights as a shareholder of the Company. The Company reserves the
right not to deliver to you the shares purchased by virtue of the exercise of
this option during any period of time in which the Company deems, in its sole
discretion, that such would violate a federal, state, local or securities
exchange rule, regulation or law.
Notwithstanding anything to the contrary contained herein, this option
is not exercisable until all the following events occur and during the following
periods of time:
(a) Until the Plan pursuant to which this option is granted is approved
by the shareholders of the Company in the manner prescribed by the Code and the
regulations thereunder;
(b) Until this option and the optioned shares are approved and/or
registered with such federal, state and local regulatory bodies or agencies and
securities exchanges as the Company may deem necessary or desirable; or
(c) During any period of time in which the Company deems that the
exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or securities exchange
rule, regulation or law, or may cause the Company to be legally obligated to
issue or sell more shares than the Company is legally entitled to issue or sell.
The following two paragraphs shall be applicable if, on the
date of exercise of this option, the Common Stock to be purchased pursuant to
such exercise has not been registered under the Securities Act of 1933, as
amended, and under applicable state securities laws, and shall continue to be
applicable for so long as such registration has not occurred:
3
<PAGE>
(a) The optionee hereby agrees, warrants and represents that he will
acquire the Common Stock to be issued hereunder for his own account for
investment purposes only, and not with a view to, or in connection with, any
resale or other distribution of any of such shares, except as hereafter
permitted. The optionee further agrees that he will not at any time make any
offer, sale, transfer, pledge or other disposition of such Common Stock to be
issued hereunder without an effective registration statement under the
Securities Act of 1933, as amended, and under any applicable state securities
laws or an opinion of counsel acceptable to the Company to the effect that the
proposed transaction will be exempt from such registration. The optionee shall
execute such instruments, representations, acknowledgements and agreements as
the Company may, in its sole discretion, deem advisable to avoid any violation
of federal, state, local or securities exchange rule, regulation or law.
(b) The certificates for Common Stock to be issued to the optionee
hereunder shall bear the following legend:
"The shares represented by this certificate have not been
registered under the Securities Act of 1933, as amended, or under
applicable state securities laws. The shares have been acquired for
investment and may not be offered, sold, transferred, pledged or
otherwise disposed of without an effective registration statement under
the Securities Act of 1933, as amended, and under any applicable state
securities laws or an opinion of counsel acceptable to the Company that
the proposed transaction will be exempt from such registration."
The foregoing legend shall be removed upon registration of the legended shares
under the Securities Act of 1933, as amended, and under any applicable state
laws or upon receipt of any opinion of counsel acceptable to the Company that
said registration is no longer required.
The sole purpose of the agreements, warranties, representations and
legend set forth in the two immediately preceding paragraphs is to prevent
violations of the Securities Act of 1933, as amended, and any applicable state
securities laws.
It is the intention of the Company and you that this option shall not
be an "Incentive Stock Option" as that term is used in Section 422 of the Code
and the regulations thereunder.
This option shall be subject to the terms of the Plan in effect on the
date this option is granted, which terms are hereby incorporated herein by
reference and made a part hereof. In the event of any conflict between the terms
of this option and the terms of the Plan in effect on the date of this option,
the terms of the Plan shall govern. This option constitutes the entire
understanding between the Company and you with respect to the subject matter
hereof and no amendment, modification or waiver of this option, in whole or in
part, shall be binding upon the Company unless in writing and signed by the
4
<PAGE>
President of the Company. This option and the performances of the parties
hereunder shall be construed in accordance with and governed by the laws of the
Commonwealth of Pennsylvania.
Please sign the copy of this option and return it to the Company's
Secretary, thereby indicating your understanding of and agreement with its terms
and conditions.
NUMEREX CORP.
By: _________________________________
I hereby acknowledge receipt of a copy of the foregoing stock option and, having
read it hereby signify my understanding of, and my agreement with, its terms and
conditions.
- ----------------------------------- --------------------------------
(Signature) (Date)
5
<PAGE>
Exhibit 10.2
Numerex Corp. Amended and Restated 1994 Stock Option Plan
for Non-Employee Directors
<PAGE>
Exhibit 10.2
NUMEREX CORP.
AMENDED AND RESTATED
1994 STOCK OPTION PLAN
FOR NON-EMPLOYEE DIRECTORS
1. Purpose of Plan
The purpose of the Amended and Restated 1994 Stock Option Plan for
Non-Employee Directors (the "Plan") contained herein is to enhance the ability
of Numerex Corp. (the "Company") to attract, retain and motivate members of the
Board of Directors and to provide additional incentive to members of the Board
of Directors by encouraging them to invest in shares of Numerex Corp. (the
"Company") common stock and thereby acquire a proprietary interest in the
Company and an increased personal interest in the Company's continued success
and progress, to the mutual benefit of directors, employees and stockholders.
2. Aggregate Number of Shares
62,500 shares of the Company's Class A common stock, no par value (the
"Common Stock"), shall be the aggregate number of shares which may be issued
under this Plan. Notwithstanding the foregoing, in the event of any change in
the outstanding shares of the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares, recapitalization, merger,
consolidation, transfer of assets, reorganization, conversion or what the Board
of Directors deems in its sole discretion to be similar circumstances, the
aggregate number and kind of shares which may be issued under this Plan shall be
appropriately adjusted in a manner determined in the sole discretion of the
Option Committee. Reacquired shares of the Company's Common Stock, as well as
unissued shares, may be used for the purpose of this Plan. Common Stock of the
Company subject to options which have terminated unexercised, either in whole or
in part, shall be available for future options granted under this Plan.
3. Participation
Each person who is, as of April 1, 1995, a director of the Company and
has served as a director for at least one (1) year, and is not as of such date
an employee of the Company or any subsidiary corporation or a Gwynedd Designated
Director (as hereinafter defined), shall, as of April 1, 1995, automatically be
granted an option to purchase 2,500 shares of the Company's Common Stock (such
figure to be subject to adjustment for the same events described in Section 2
hereof). Each person who (a) is not a director of the Company as of April 1,
1995 or who has not served as a director for at least one (1) year as of April
1, 1995, (b) is not an employee of the Company or any subsidiary corporation or
a Gwynedd Designated Director, and (c) who on or after April 1, 1995 is elected
1
<PAGE>
as a director of the Company at any annual or special meeting of stockholders of
the Company shall, as of the date of such election, automatically be granted an
option to purchase 2,500 shares of the Company's Common Stock (such figure to be
subject to adjustment for the same events described in Section 2 hereof). On
each anniversary of the initial option grant hereunder and provided a person
described in the first or second sentences of this Section 3 continues to be a
non-employee director and is not a Gwynedd Designated Director on such
anniversary, such person shall automatically be granted an option to purchase
2,500 shares of the Company's Common Stock (such figure to be adjusted for the
same events described in Section 2 hereof) or such lower number of shares as
shall be equal to the number of shares as shall then available (if any) for
grant under this Plan divided by the number of persons who are to receive a
option on such anniversary, subject, however, to the provisions of Section 6
hereof. "Gwynedd Designated Director" as used in this Plan means any director
designated by Gwynedd Resources, Ltd., or its successors or assigns, pursuant to
a letter agreement between the Company and Dominion Group Limited dated October
15, 1994, or any successor agreement.
4. Administration of Plan
This Plan shall be administered by the Board of Directors of the
Company. The Board of Directors of the Company shall adopt such rules for the
conduct of its business and administration of this Plan as it considers
desirable. A majority of the members of the Board of Directors of the Company
shall constitute a quorum for all purposes. The vote or written consent of a
majority of the members of the Board of Directors of the Company on a particular
matter shall constitute the act of the Board of Directors of the Company on such
matter. The Board of Directors of the Company shall have the exclusive right to
construe the Plan and the options issued pursuant to it, to correct defects and
omissions and to reconcile inconsistencies to the extent necessary to effectuate
the purpose of this Plan and the options issued pursuant to it, and such action
shall be final, binding and conclusive upon all parties concerned. No member of
the Board of Directors of the Company shall be liable for any act or omission
(whether or not negligent) taken or omitted in good faith, or for the exercise
of any authority or discretion granted in connection with the Plan to the Board
of Directors, or for the acts or omissions of any other members of the Board of
Directors.
5. Non-Qualified Stock Options, Option Price and Term
(a) Options issued pursuant to this Plan shall be non-qualified stock
options. A non-qualified stock option is an option which does not satisfy the
requirements of Section 422A of the Internal Revenue Code of 1986, as amended
(the "Code"). The option price for the non-qualified stock options issued under
this Plan shall be equal to the fair market value, as determined by the Board of
Directors of the Company, of the Company's Common Stock on the date of the grant
of the option. The fair market value of the Company's Common Stock on any
particular date shall mean the last reported sale price of a share of the
Company's Common Stock on any stock exchange on which such stock is then listed
or admitted to trading, or on the Nasdaq National Market or the Nasdaq SmallCap
Market, on such date, or if no sale took place on such day, the last such date
on which a sale took place, or if the Common Stock is not then quoted on the
Nasdaq National Market or the Nasdaq SmallCap Market, or listed or admitted to
2
<PAGE>
trading on any stock exchange, the average of the bid and asked prices in the
over-the-counter market on such date, or if none of the foregoing, a price
determined by the Committee.
(b) Options issued pursuant to this Plan shall be issued substantially
in the form set forth in Appendix I hereof, which form is hereby incorporated by
reference and made a part hereof, and shall contain substantially the terms and
conditions set forth therein. Options shall expire ten years after the date they
are granted, unless terminated earlier as provided herein.
6. Modification, Amendment, Suspension and Termination
Options shall not be granted pursuant to this Plan after the expiration
of ten years from and after the date this Plan is approved by the stockholders
of the Company. The Board of Directors of the Company reserves the right at any
time, and from time to time, to modify or amend this Plan in any way, or to
suspend or terminate it, effective as of such date, which date may be either
before or after the taking of such action, as may be specified by the Board of
Directors of the Company; provided, however, that such action shall not affect
options granted under the Plan prior to the actual date on which such action
occurred. Notwithstanding the foregoing, the Plan provisions specified in Rule
16b-3(c)(2)(ii)(A) under the Securities Exchange Act of 1934, as amended, or any
future corresponding rule may not be modified or amended more than once every
six months, other than to comport except as permitted by Rule
16b-3(c)(2)(ii)(B). If the Board of Directors voluntarily submits a proposed
modification, amendment, suspension or termination for stockholder approval,
such submission shall not require any future modifications, amendments (whether
or not relating to the same provision or subject matter), suspensions or
terminations to be similarly submitted for stockholder approval.
7. Effectiveness of Plan
The Plan originally became effective on March 8, 1994, the date of its
adoption by the Company's Board of Directors, and was approved by the holders of
the Company's Common Stock in the manner described in Rule 16b-3(b) under the
Securities Exchange Act of 1934, as amended, on May 5, 1994. The amendments
reflected herein were approved by the Board of Directors on December 7, 1994 but
shall not become effective unless and until approved by the holders of the
Company's Common Stock in the manner described in Rule 16b-3(b) under the
Securities Exchange Act of 1934, as amended, or any future corresponding rule.
8. General Conditions
(a) Nothing contained in this Plan or any option granted pursuant to
this Plan shall confer upon any director the right to continue as a director of
the Company or interfere in any way with the rights of the Company to terminate
him as a director.
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(b) Corporate action constituting an offer of stock for sale to any
director under the terms of the options to be granted hereunder shall be deemed
complete as of April 1, 1994, or as of the automatic grant date hereunder after
April 1, 1994, regardless of when the option is actually delivered to the
non-employee director or acknowledged or agreed to by him.
(c) The term "subsidiary corporation" as used throughout this Plan
shall mean a corporation in which the Company owns, directly or indirectly,
shares of stock representing fifty percent or more of the outstanding voting
power of all classes of stock of such corporation at the time of the granting of
an option under this Plan.
(d) The use of the masculine pronoun shall include the feminine gender
whenever appropriate.
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APPENDIX I
NON-QUALIFIED STOCK OPTION
To:
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Name
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Address
Date of Grant: ______________________
You are hereby granted an option, effective as of the date hereof, to
purchase ________ shares of Class A Common Stock (the "Common Stock"), no par
value, of Numerex Corp. (the "Company") at a price of $_______ per share
pursuant to the Company's Amended and Restated 1994 Stock Option Plan for
Non-Employee Directors (the "Plan").
Your option may first be exercised on and after the earlier to occur of
(i) one year from the date of its grant or (ii) a "change in control" of the
Company, as hereinafter defined, but not before that time. On and after the
earlier to occur of (i) one year from the date your option is granted or (ii) a
"change in control" of the Company, and prior to ten years from the date of its
grant, your option may be exercised in whole, or from time to time in part, for
up to the total whole number of shares then subject to the option minus the
number of shares previously purchased by exercise of the option (as
appropriately adjusted for stock dividends, stock splits and what the Board of
Directors of the Company deems in its sole discretion to be similar
circumstances). No fractional shares shall be issued or delivered. This option
shall terminate and is not exercisable after the expiration of ten years from
the date of its grant, except if terminated earlier as hereafter provided.
For purposes of your option, a "change in control" of the Company shall
have been deemed to conclusively occur when any of the following events shall
have occurred without your prior written consent:
(1) a change in the constituency of the Company's Board of Directors
with the result that individuals (the "Incumbent Directors") who are members of
the Board on the date the Plan is approved by the Company's stockholders cease
for any reason to constitute at least a majority of the Board of Directors,
provided that any individual who is elected to the Board of Directors after
stockholder approval of the Plan and whose nomination for election was
unanimously approved by the Incumbent Directors shall be considered an Incumbent
Director beginning on the date of his or her election to the Board of Directors.
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(2) a person or group acting in concert as described in Section
13(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")
proposes to hold or acquire beneficial ownership within the meaning of Rule
13(d)(3) promulgated under the Exchange Act of a number of voting shares of the
Company which constitutes either (i) more than fifty percent of the shares which
voted in the election of directors of the Company at the shareholders' meeting
immediately preceding such determination or (ii) more than thirty percent of the
Company's outstanding voting shares. The term "proposes to hold or acquire"
shall mean when a person or group acting in concert has (A) the right to acquire
or merge (whether such right is exercisable immediately or only after the
passage of time or upon the receipt of such regulatory approvals as is required
by applicable law) pursuant to an agreement, arrangement or understanding
(whether or not in writing) or upon the exercise or conversion of rights,
exchange rights, warrants or options or otherwise; (B) commenced a tender or
exchange offer with respect to the voting shares of the Company or securities
convertible or exchangeable into voting shares of the Company; or (C) the right
to vote pursuant to any agreement, arrangement or understanding (whether or not
in writing); provided, however, that such person or group acting in concert
shall not be deemed to have acquired such shares if the agreement, arrangement
or understanding to vote such securities arises solely from a revocable proxy
given in response to a public proxy or consent solicitation made pursuant to,
and in accordance with, the applicable rules and regulations of the Exchange Act
and is not also then reportable on Schedule 13D under the Exchange Act or any
comparable or successor report. For purposes of this provision any person or
group existing on the date the Plan is approved by shareholders shall be
excluded from the definition of "a person or group acting in concert."
You may exercise your option by giving written notice to the Secretary
of the Company on forms supplied by the Company at its then principal executive
office, accompanied by payment of the option price for the total number of
shares you specify that you wish to purchase. The payment may be in any of the
following forms: (a) cash, which may be evidenced by a check; (b) (unless
prohibited by the Board of Directors) certificates representing shares of Common
Stock of the Company, which will be valued by the Secretary of the Company at
the fair market value per share of the Company's Common Stock (as determined in
accordance with the Plan) on the date of delivery of such certificates to the
Company, accompanied by an assignment of the stock to the Company; or (c)
(unless prohibited by the Board of Directors) any combination of cash and Common
Stock of the Company valued as provided in clause (b). Any assignment of stock
shall be in a form and substance satisfactory to the Secretary of the Company,
including guarantees of signature(s) and payment of all transfer taxes if the
Secretary deems such guarantees necessary or desirable.
Your option will, to the extent not previously exercised by you,
terminate three months after the date on which you cease to be a director of the
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Company (whether by death, disability, resignation, removal, failure to be
reelected or otherwise and regardless of whether the failure to continue as a
director was for cause or otherwise), but in no event later than ten years from
the date this option is granted. After the date you cease to be a director, you
may exercise this option only for the number of shares which you had a right to
purchase and did not purchase on the date you ceased to be a director.
This option is not transferable by you otherwise than by will or the
laws of descent and distribution and is exercisable, during your lifetime, only
by you. If you die while a director of the Company, executor or administrator,
as the case may be, may, at any time within three months after the date of your
death (but in no event later than ten years from the date this option is
granted), exercise the option as to any shares which you had a right to purchase
and did not purchase during your lifetime. If your directorship with the Company
is terminated by reason of your becoming disabled, you or your legal guardian or
custodian may at any time within three months after the date of such termination
(but in no event later than 10 years from the date this option is granted),
exercise the option as to any shares which you had a right to purchase and did
not purchase prior to such termination. Your executor, administrator, guardian
or custodian must present proof of his authority satisfactory to the Company
prior to being allowed to exercise this option.
In the event of any change in the outstanding shares of the Common
Stock of the Company by reason of a stock dividend, stock split, combination of
shares, recapitalization, merger, consolidation, transfer of assets,
reorganization, conversion or what the Board of Directors deems in its sole
discretion to be similar circumstances, the number and kind of shares subject to
this option and the option price of such shares shall be appropriately adjusted
in a manner to be determined in the sole discretion of the Board of Directors.
This option is not transferable otherwise than by will or the laws of
descent and distribution, and is exercisable during your lifetime only by you,
including, for this purpose, your legal guardian or custodian in the event of
disability. Until the option price has been paid in full pursuant to due
exercise of this option and the purchased shares are delivered to you, you do
not have any rights as a stockholder of the Company. The Company reserves the
right not to deliver to you the shares purchased by virtue of exercise of this
option during any period of time in which the Company deems, in its sole
discretion, that such delivery may not be consummated without violating a
federal, state, local or securities exchange rule, regulation or law.
Notwithstanding anything to the contrary contained herein, this option
is not exercisable until all the following events occur and during the following
periods of time:
(1) Until this option and the optioned shares are approved and/or
registered with such federal, state and local regulatory bodies or agencies and
securities exchanges as the Company may deem necessary or desirable.
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(2) During any period of time in which the Company deems that the
exercisability of this option, the offer to sell the shares optioned hereunder,
or the sale thereof, may violate a federal, state, local or securities exchange
rule, regulation or law, or may cause the Company to be legally obligated to
issue or sell more shares than the Company is legally entitled to issue or sell.
The following two paragraphs shall be applicable if, on the date of
exercise of this option, the Common Stock to be purchased pursuant to such
exercise has not been registered under the Securities Act of 1933, as amended,
and under applicable state securities laws, and shall continue to be applicable
for so long as such registration has not occurred:
(a) The optionee hereby agrees, warrants and represents that he will
acquire the Common Stock to be issued hereunder for his own account for
investment purposes only, and not with a view to, or in connection with, any
resale or other distribution of any of such shares, except as hereafter
permitted. The optionee further agrees that he will not at any time make any
offer, sale, transfer, pledge or other disposition of such Common Stock to be
issued hereunder without an effective registration statement under the
Securities Act of 1933, as amended, and under any applicable state securities
laws or an opinion of counsel acceptable to the Company to the effect that the
proposed transaction will be exempt from such registration. The optionee shall
execute such instruments, representations, acknowledgements and agreements as
the Company may, in its sole discretion, deem advisable to avoid any violation
of federal, state, local or securities exchange rule, regulation or law.
(b) The certificates for Common Stock to be issued to the optionee
hereunder shall bear the following legend:
"The shares represented by this certificate have not been
registered under the Securities Act of 1933, as amended, or under
applicable state securities laws. The shares have been acquired for
investment and may not be offered, sold, transferred, pledged or
otherwise disposed of without an effective registration statement under
the Securities Act of 1933, as amended, and under any applicable state
securities laws or an opinion of counsel acceptable to the Company that
the proposed transaction will be exempt from such registration."
The foregoing legend shall be removed upon registration of the legended shares
under the Securities Act of 1933, as amended, and under any applicable state
laws or upon receipt of any opinion of counsel acceptable to the Company that
said registration is no longer required.
The sole purpose of the agreements, warranties, representations and
legend set forth in the two immediately preceding paragraphs is to prevent
violations of the Securities Act of 1933, as amended, and any applicable state
securities laws.
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This option shall be subject to the terms of the Plan in effect on the
date this option is granted, which terms are hereby incorporated herein by
reference and made a part hereof. In the event of any conflict between the terms
of this option and the terms of the Plan in effect on the date of this option,
the terms of the Plan shall govern. This option constitutes the entire
understanding between the Company and you with respect to the subject matter
hereof and no amendment, modification or waiver of this option, in whole or in
part, shall be binding upon the Company unless in writing and signed by the
President of the Company. This option and the performances of the parties
hereunder shall be construed in accordance with and governed by the laws of the
Commonwealth of Pennsylvania.
Please sign the copy of this option and return it to the Company's
Secretary, thereby indicating your understanding of and agreement with its terms
and conditions.
NUMEREX CORP.
(SEAL) By: ________________________
I hereby acknowledge receipt of a copy of the foregoing stock option
and, having read it hereby signify my understanding of, and my agreement with,
its terms and conditions.
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(Signature) (Date)
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Exhibit 23.2
INDEPENDENT AUDITORS' CONSENT
Numerex Corp.
We consent to the incorporation by reference in this Registration Statement of
Numerex Corp. on Form S-8 of our report dated December 23, 1996 appearing in the
Annual Report on Form 10-K of Numerex Corp. for the year ended October 31, 1996.
/s/ DELOITTE & TOUCHE LLP
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DELOITTE & TOUCHE LLP
Philadelphia, Pennsylvania
October 23, 1997
