Exhibit 10.5
THE GO DADDY GROUP, INC.
2006 EQUITY INCENTIVE PLAN
STOCK OPTION AWARD AGREEMENT
Unless otherwise defined herein, the terms defined in the 2006 Equity Incentive Plan (the
“Plan”) will have the same defined meanings in this Stock Option Award Agreement (the “Award
Agreement”).
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NOTICE OF STOCK OPTION GRANT |
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Name: |
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Address: |
You have been granted an option to purchase Common Stock of
the Company, subject to the terms
and conditions of the Plan and this Award Agreement, as follows:
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Grant Number
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Date of Grant |
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Vesting Commencement Date |
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Exercise Price per Share
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$ |
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Total Number of Shares Granted |
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Total Exercise Price
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$ |
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Type of Option:
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___Incentive Stock Option
___Nonstatutory Stock Option |
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Term/Expiration Date: |
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Vesting Schedule: |
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Subject to accelerated vesting as set forth below or in the Plan, this Option may be
exercised, in whole or in part, in accordance with the following schedule:
Twenty-five percent (25%) of the Shares subject to the Option will vest twelve (12) months
after the Vesting Commencement Date, and 1/48 of the Shares subject to the Option will vest each
month thereafter on the same day of the month as the Vesting Commencement Date (and if there is no
corresponding day, on the last day of the month), subject to Participant continuing to be a Service
Provider through such dates.
Termination Period:
This Option shall be exercisable for three (3) months after Participant ceases to be a Service
Provider, unless such termination is due to Participant’s death or Disability, in which case this
Option shall be exercisable for twelve (12) months after Participant ceases to be Service Provider.
Notwithstanding the foregoing, in no event may this Option be exercised after the Term/Expiration
Date as provided above and may be subject to earlier termination as provided in Section 14(c) of
the Plan. Notwithstanding any provisions to the contrary in the Award Agreement or the Plan, in
the event
the Company does not undergo a Change in Control or a Registration Date has not occurred
by
May 11, 2007, this Option shall terminate on
May 11, 2007.
The Administrator hereby grants to individual named in the Notice of Stock Option Grant
attached as Part I of this Agreement (the
“Participant”) an option (the
“Option”) to purchase the
number of Shares, as set forth in the Notice of Stock Option Grant, at the exercise price per share
set forth in the Notice of Stock Option Grant (the
“Exercise Price”), subject to the terms and
conditions of the Plan, which is
incorporated herein by reference. Subject to Section 19(c) of the
Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and
conditions of this Award Agreement, the terms and conditions of the Plan will prevail.
If designated in the Notice of Stock Option Grant as an Incentive Stock Option (“ISO”), this
Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code. However,
if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the
$100,000 rule of Code Section 422(d) it will be treated as a Nonstatutory Stock Option (“NSO”).
1. Right to Exercise. This Option is exercisable during its term in accordance with
the Vesting Schedule set out in the Notice of Stock Option Grant and the applicable provisions of
the Plan and this Award Agreement.
2.
Method of Exercise. This Option is exercisable by delivery of an exercise notice,
in the form attached as
Exhibit A (the
“Exercise Notice”) or in such other form and manner
as determined by the Administrator, which will state the election to exercise the Option, the
number of Shares in respect of which the Option is being exercised (the
“Exercised Shares”), and
such other representations and agreements as may be required by
the Company pursuant to the
provisions of the Plan. The Exercise Notice will be completed by Participant and delivered to the
Company. The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to
all Exercised Shares together with any applicable withholding taxes. This Option will be deemed to
be exercised upon receipt by
the Company of such fully executed Exercise Notice accompanied by such
aggregate Exercise Price.
No Shares will be issued pursuant to the exercise of this Option unless such issuance and
exercise comply with Applicable Laws. Assuming such compliance, for income tax
purposes the Exercised Shares will be considered transferred to Participant on the date the
Option is exercised with respect to such Exercised Shares.
Payment of the aggregate Exercise Price will be by any of the following, or a combination
thereof, at the election of Participant:
1. cash;
2. check;
3. consideration received by
the Company under a formal cashless exercise program adopted by
the Company in connection with the Plan; or
4. surrender of other Shares which, (a) in the case of Shares acquired from
the Company,
either directly or indirectly, have been owned by the Participant and not subject to a substantial
risk of forfeiture for more than six (6) months on the date of surrender, and (b) have a Fair
Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.
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Non-Transferability of Option. |
This Option may not be transferred in any manner otherwise than by will or by the laws of
descent or distribution and may be exercised during the lifetime of Participant only by
Participant.
This Option may be exercised only within the term set out in the Notice of Stock Option Grant,
and may be exercised during such term only in accordance with the Plan and the terms of this Award
Agreement.
1.
Withholding Taxes. Participant agrees to make appropriate arrangements with the
Company (or the Parent or Subsidiary employing or retaining Participant) for the satisfaction of
all Federal, state, and local income and employment tax withholding requirements applicable to the
Option exercise. Participant acknowledges and agrees that
the Company may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of
exercise.
2.
Notice of Disqualifying Disposition of ISO Shares. If the Option granted to
Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the Shares
acquired pursuant to the ISO on or before the later of (a) the date two (2) years after the Grant
Date, or (b) the date one (1) year after the date of exercise, Participant will immediately notify
the Company in writing of such disposition. Participant agrees that Participant may be subject to
income tax withholding by
the Company on the compensation income recognized by Participant.
3.
Code Section 409A. Under Code Section 409A, an option that vests after
December
31, 2004 that was granted with a per share exercise price that is determined by the Internal
Revenue Service (the
“IRS”) to be less than the fair market value of a Share of Common Stock on the
date of grant (a
“Discount Option”) may be considered
“deferred compensation.” A Discount Option
may result in (a) income recognition by the Participant prior to the exercise of the option, (b) an
additional twenty percent (20%) tax, and (c) potential penalty and interest charges. Participant
acknowledges that
the Company cannot and has not guaranteed that the IRS will agree that the per
share exercise price of this Option equals or exceeds the fair market value of a Share of Common
Stock on the date of grant in a later examination. Participant agrees that if the IRS determines
that the Option was granted with a per share exercise price that was less than the fair market
value of a Share of Common Stock on the date of grant, Participant will be solely responsible for
Participant’s costs related to such a determination.
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Entire Agreement; Governing Law. |
The Plan is
incorporated herein by reference. The Plan and this Award Agreement constitute
the entire agreement of the parties with respect to the subject matter hereof and supersede in
their entirety all prior undertakings and agreements of
the Company and Participant with respect to
the subject matter hereof, and may not be modified adversely to Participant’s interest except by
means of a writing signed by
the Company and Participant. This Award Agreement is governed by the
internal substantive laws, but not the choice of law rules, of Arizona.
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NO GUARANTEE OF CONTINUED SERVICE. |
PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING
SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF
THE COMPANY (AND
NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER).
PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE
OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL,
AND WILL NOT INTERFERE WITH PARTICIPANT’S RIGHT OR
THE COMPANY’S RIGHT TO TERMINATE PARTICIPANT’S
RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.
[Remainder of Page Intentionally Left Blank]
By Participant’s signature and the signature of
the Company’s representative below,
Participant and
the Company agree that this Option is granted under and governed by the terms and
conditions of the Plan and this Award Agreement. Participant has reviewed the Plan and this Award
Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Award Agreement and fully understands all provisions of the Plan and Award
Agreement. Participant hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions relating to the Plan and Award Agreement.
Participant further agrees to notify
the Company upon any change in the residence address indicated
below.
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| PARTICIPANT:
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THE GO DADDY GROUP, INC. |
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| Signature
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By |
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| Print Name
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Title |
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| Residence Address |
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EXHIBIT A
THE GO DADDY GROUP, INC.
2006 EQUITY INCENTIVE PLAN
EXERCISE NOTICE
Attention: _______________________
1. Exercise of Option. Effective as of today, _________, ___, the
undersigned (“Purchaser”) hereby elects to purchase _________shares (the “Shares”) of the
Common Stock of The Go Daddy Group, Inc. (the “Company”) under and pursuant to the 2006 Equity
Incentive Plan (the “Plan”) and the Stock Option Award Agreement dated ______(the “Award
Agreement”). The purchase price for the Shares will be $_________, as required by the Award
Agreement.
2.
Delivery of Payment. Purchaser herewith delivers to
the Company the full purchase
price for the Shares and any required withholding taxes to be paid in connection with the exercise
of the Option.
3. Representations of Purchaser. Purchaser acknowledges that Purchaser has received,
read and understood the Plan and the Award Agreement and agrees to abide by and be bound by their
terms and conditions.
4.
Rights as Stockholder. Until the issuance (as evidenced by the appropriate entry
on the books of
the Company or of a duly authorized transfer agent of
the Company) of the Shares,
no right to vote or receive dividends or any other rights as a stockholder will exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option. The Shares so acquired will be
issued to Participant as soon as practicable after exercise of the Option. No adjustment will be
made for a dividend or other right for which the record date is prior to the date of issuance,
except as provided in Section 14 of the Plan.
5. Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser’s purchase or disposition of the Shares. Purchaser
represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in
connection with the purchase or disposition of the Shares and that Purchaser is not relying on the
Company for any tax advice.
6. Entire Agreement; Governing Law. The Plan and Award Agreement are incorporated
herein by reference. This Agreement, the Plan and the Award Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of
the Company and Purchaser with respect to the
subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by
means of a writing signed by
the Company and Purchaser. This agreement is governed by the internal
substantive laws, but not the choice of law rules, of Arizona.
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| Submitted by:
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Accepted by: |
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| PURCHASER:
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THE GO DADDY GROUP, INC. |
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| Signature
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By |
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| Print Name
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Its |
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| Address: |
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Date Received |
