MITEK
SYSTEMS, INC.
2006
STOCK OPTION PLAN
1.
PURPOSE
.
This
Stock Option Plan (the "Plan") is intended to serve as an incentive to, and
to
encourage stock ownership by certain eligible participants rendering services
to
Mitek Systems, Inc., a Delaware corporation, and certain affiliates as set
forth
below (the "Corporation"), so that they may acquire or increase their
proprietary interest in the Corporation and to encourage them to remain in
the
service of the Corporation.
2.
ADMINISTRATION
.
2.1
Committee
.
The
Plan shall be administered by the Board of Directors of the Corporation (the
"Board of Directors"), or a committee of two or more members appointed by the
Board of Directors (the "Committee") who are Non-Employee Directors as defined
in Rule 16b-3 promulgated under Section 16 of the Securities Exchange Act
of 1934 and an outside director as defined in Treasury Regulation
§ 1.162-27(e)(3). If a Committee is appointed, it shall select one of its
members as Chairman and shall appoint a Secretary, who need not be a member
of
the Committee. The Committee shall hold meetings at such times and places as
it
may determine and minutes of such meetings shall be recorded. Acts by a majority
of the Committee in a meeting at which a quorum is present and acts approved
in
writing by a majority of the members of the Committee shall be valid acts of
the
Committee.
2.2
Term
.
If the
Board of Directors selects a Committee, the members of the Committee shall
serve
on the Committee for the period of time determined by the Board of Directors
and
shall be subject to removal by the Board of Directors at any time. The Board
of
Directors may terminate the function of the Committee at any time and resume
all
powers and authority previously delegated to the Committee.
2.3
Authority
.
The
Committee shall have sole discretion and authority to grant options under the
Plan to eligible participants rendering services to the Corporation or any
"parent" or "subsidiary" of the Corporation, as defined in Section 424 of
the Internal Revenue Code of 1986, as amended (the "Code") ("Parent or
Subsidiary"), at such times, under such terms and in such amounts as it may
decide. For purposes of this Plan and any Stock Option Agreement (as defined
below), the term "Corporation" shall include any Parent or Subsidiary, if
applicable. Subject to the express provisions of the Plan, the Committee shall
have complete authority to interpret the Plan, to prescribe, amend and rescind
the rules and regulations relating to the Plan, to determine the details and
provisions of any Stock Option Agreement, to accelerate any options granted
under the Plan and to make all other determinations necessary or advisable
for
the administration of the Plan.
2.4
Type
of Option
.
The
Committee shall have full authority and discretion to determine, and shall
specify, whether the eligible individual will be granted options intended to
qualify as incentive options under Section 422 of the Code ("Incentive
Options") or options which are not intended to qualify under Section 422 of
the Code ("Non-Qualified Options"); provided, however, that Incentive Options
shall only be granted to employees of the Corporation, or a Parent or Subsidiary
thereof, and shall be subject to the special limitations set forth herein
attributable to Incentive Options.
2.5
Interpretation
.
The
interpretation and construction by the Committee of any provisions of the Plan
or of any option granted under the Plan shall be final and binding on all
parties having an interest in this Plan or any option granted hereunder. No
member of the Committee shall be liable for any action or determination made
in
good faith with respect to the Plan or any option granted under the
Plan.
3.
ELIGIBILITY
.
3.1
General
.
All
directors, officers, employees of and consultants to the Corporation, or any
Parent or Subsidiary relative to the Corporation's, or any Parent's or
Subsidiary's management, operation or development shall be eligible to receive
options under the Plan. The selection of recipients of options shall be within
the sole and absolute discretion of the Committee. No person shall be granted
an
Incentive Option under this Plan unless such person is an employee of the
Corporation, or a Parent or Subsidiary on the date of grant. No person shall
be
granted an option under this Plan unless such person has executed, if requested
by the Committee, the grant representation letter set forth on Exhibit "A,"
as such Exhibit may be amended by the Committee from time to time. No
person shall be granted more than 500,000 options in any one-year
period.
3.2
Termination
of Eligibility
.
3.2.1
If
an
optionee ceases to be employed by the Corporation, or its Parent or Subsidiary,
is no longer an officer or member of the Board of Directors of the Corporation,
or no longer performs services for the Corporation, or its Parent or Subsidiary,
for any reason (other than for "cause," as hereinafter defined, or such
optionee's death), any option granted hereunder to such optionee shall expire
three months after the occurrence giving rise to such termination of eligibility
(or 1 year in the event an optionee is "disabled," as defined in
Section 22(e)(3) of the Code) or upon the date it expires by its
terms, whichever is earlier. Any option that has not vested in the optionee
as
of the date of such termination shall immediately expire and shall be null
and
void. The Committee shall, in its sole and absolute discretion, decide,
utilizing the provisions set forth in Treasury Regulations § 1.421-7(h),
whether an authorized leave of absence or absence for military or governmental
service, or absence for any other reason, shall constitute termination of
eligibility for purposes of this Section.
3.2.2
If
an
optionee ceases to be employed by the Corporation, or its Parent or Subsidiary,
is no longer an officer or member of the Board of Directors of the Corporation,
or no longer performs services for the Corporation, or its Parent or Subsidiary,
and such termination is as a result of "cause," as hereinafter defined, then
all
options granted hereunder to such optionee shall expire on the date of the
occurrence giving rise to such termination of eligibility or upon the date
it
expires by its terms, whichever is earlier, and such optionee shall have no
rights with respect to any unexercised options. For purposes of this Plan,
"cause" shall mean an optionee's personal dishonesty, misconduct, breach of
fiduciary duty, incompetence, intentional failure to perform stated obligations,
willful violation of any law, rule, regulation or final cease and desist order,
or any material breach of any provision of this Plan, any Stock Option Agreement
or any employment agreement.
3.3
Death
of Optionee and Transfer of Option
.
In the
event an optionee shall die, an option may be exercised (subject to the
condition that no option shall be exercisable after its expiration and only
to
the extent that the optionee's right to exercise such option had accrued at
the
time of the optionee's death) at any time within six months after the optionee's
death by the executors or administrators of the optionee or by any person or
persons who shall have acquired the option directly from the optionee by bequest
or inheritance. Any option that has not vested in the optionee as of the date
of
death or termination of employment, whichever is earlier, shall immediately
expire and shall be null and void. No option shall be transferable by the
optionee other than by will or the laws of intestate succession.
3.4
Limitation
on Incentive Options
.
No
person shall be granted any Incentive Option to the extent that the aggregate
fair market value of the Stock (as defined below) to which such options are
exercisable for the first time by the optionee during any calendar year (under
all plans of the Corporation as determined under Section 422(d) of the
Code) exceeds $100,000.
4.
IDENTIFICATION
OF STOCK
.
The
Stock, as defined herein, subject to the options shall be shares of the
Corporation's authorized but unissued or acquired or reacquired common stock
(the "Stock"). The aggregate number of shares subject to outstanding options
shall not exceed 1,000,000 shares of Stock (subject to adjustment as provided
in
Section 6). If any option granted hereunder shall expire or terminate for
any reason without having been exercised in full, the unpurchased shares subject
thereto shall again be available for purposes of this Plan. Notwithstanding
the
above, at no time shall the total number of shares of Stock issuable upon
exercise of all outstanding options and the total number of shares of Stock
provided for under any stock bonus or similar plan of the Corporation exceed
30%
as calculated in accordance with the conditions and exclusions of §260.140.45 of
Title 10, California Code of Regulations, based on the shares of the issuer
which are outstanding at the time the calculation is made.
5.
TERMS
AND CONDITIONS OF OPTIONS
.
Any
option granted pursuant to the Plan shall be evidenced by an agreement ("Stock
Option Agreement") in such form as the Committee shall from time to time
determine, which agreement shall comply with and be subject to the following
terms and conditions:
5.1
Number
of Shares
.
Each
option shall state the number of shares of Stock to which it
pertains.
5.2
Option
Exercise Price.
Each
option shall state the option exercise price, which shall be determined by
the
Committee; provided, however, that (i) the exercise price of any Incentive
Option shall not be less than the fair market value of the Stock, as determined
by the Committee, on the date of grant of such option, (ii) the exercise
price of any option granted to any person who owns more than 10% of the total
combined voting power of all classes of the Corporation's stock, as determined
for purposes of Section 422 of the Code, shall not be less than 110% of the
fair market value of the Stock, as determined by the Committee, on the date
of
grant of such option, and (iii) the exercise price of any Non-Qualified
Option shall not be less than 85% of the fair market value of the Stock, as
determined by the Committee, on the date of grant of such option. In the event
that the fair market value of the price of the common stock declines below
the
price at which the option is granted, the Committee shall have the discretion
and authority to cancel, reduce, or otherwise modify the price of any
unexercised option, including, but not limited to, a regrant of the option
at a
new price more commensurate with the fair market value of the stock. The
Committee must receive the approval of the Board of Directors before any action
is taken in accordance with this provision.
5.3
Term
of Option
.
The
term of an option granted hereunder shall be determined by the Committee at
the
time of grant, but shall not exceed ten years from the date of the grant. The
term of any Incentive Option granted to an employee who owns more than 10%
of
the total combined voting power of all classes of the Corporation's stock,
as
determined for purposes of Section 422 of the Code, shall in no event
exceed five years from the date of grant. All options shall be subject to early
termination as set forth in this Plan. In no event shall any option be
exercisable after the expiration of its term.
5.4
Method
of Exercise
.
An
option shall be exercised by written notice to the Corporation by the optionee
(or successor in the event of death) and execution by the optionee of an
exercise representation letter in the form set forth on Exhibit "B," as
such Exhibit may be amended by the Committee from time to time. Such
written notice shall state the number of shares with respect to which the option
is being exercised and designate a time, during normal business hours of the
Corporation, for the delivery thereof ("Exercise Date"), which time shall be
at
least 30 days after the giving of such notice unless an earlier date shall
have
been mutually agreed upon. At the time specified in the written notice, the
Corporation shall deliver to the optionee at the principal office of the
Corporation, or such other appropriate place as may be determined by the
Committee, a certificate or certificates for such shares. Notwithstanding the
foregoing, the Corporation may postpone delivery of any certificate or
certificates after notice of exercise for such reasonable period as may be
required to comply with any applicable listing requirements of any securities
exchange. In the event an option shall be exercisable by any person other than
the optionee, the required notice under this Section shall be accompanied
by appropriate proof of the right of such person to exercise the
option.
5.5
Medium
and Time of Payment
.
The
option exercise price shall be payable in full on or before the option Exercise
Date in any one of the following alternative forms:
5.5.1
Full
payment in cash or certified bank or cashier's check;
5.5.2
Subject
to Section 5.5.7 hereof, a Promissory Note (as defined below);
5.5.3
Full
payment in shares of Stock having a fair market value on the Exercise Date
in
the amount equal to the option exercise price;
5.5.4
Subject
to Section 5.5.7 hereof, through a special sale and remittance procedure
pursuant to which the optionee shall concurrently provide irrevocable written
instruction to (a) a Corporation-designated brokerage firm to effect the
immediate sale of the purchased shares and remit to the Corporation, out of
the
sale proceeds available on the settlement date pursuant to an irrevocable
assignment by the optionee, sufficient funds to cover the aggregate exercise
price payable for the purchased shares plus all applicable Federal, state and
local income and employment taxes required to be withheld by the Corporation
by
reason of such exercise and (b) the Corporation to deliver the certificates
for the purchased shares directly to such brokerage firm in order to complete
the sale.
5.5.5
A
combination of the consideration set forth in Sections 5.5.1, through 5.5.4
equal to the option exercise price; or
5.5.6
Any
other
method of payment complying with the provisions of Section 422 of the Code
with respect to Incentive Options, provided the terms of payment are established
by the Committee at the time of grant and any other method of payment
established by the Committee with respect to Non-Qualified Options.
5.5.7
Notwithstanding
the foregoing, the methods of payment described in Section 5.5.2 and Section
5.5.4 shall not be available to any optionee classified as "a director or
executive officer (or equivalent thereof)" within the meaning of Section 402
of
the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley") at the time of the exercise,
unless such optionee provides to the Corporation a written opinion of counsel
satisfactory to the Corporation that the proposed medium of payment is not
prohibited by Sarbanes-Oxley.
5.6
Fair
Market Value
.
The
fair market value of a share of Stock on any relevant date shall be determined
in accordance with the following provisions:
5.6.1
If
the
Stock at the time is neither listed nor admitted to trading on any stock
exchange nor traded in the over-the-counter market, then the fair market value
shall be determined by the Committee after taking into account the factors
found
in § 260.140.50 of Title 10, California Code of Regulations and such other
factors as the Committee shall deem appropriate.
5.6.2
If
the
Stock is not at the time listed or admitted to trading on any stock exchange
but
is traded in the over-the-counter market, the fair market value shall be the
mean between the highest bid and lowest asked prices (or, if such information
is
available, the closing selling price) of one share of Stock on the date in
question in the over-the-counter market, as such prices are reported by the
National Association of Securities Dealers through its NASDAQ system or any
successor system. If there are no reported bid and asked prices (or closing
selling price) for the Stock on the date in question, then the mean between
the
highest bid and lowest asked prices (or the closing selling price) on the last
preceding date for which such quotations exist shall be determinative of fair
market value.
5.6.3
If
the
Stock is at the time listed or admitted to trading on any stock exchange, then
the fair market value shall be the closing selling price of one share of Stock
on the date in question on the stock exchange determined by the Committee to
be
the primary market for the Stock, as such price is officially quoted in the
composite tape of transactions on such exchange. If there is no sale of Stock
on
such exchange on the date in question, then the fair market value shall be
the
closing selling price on the exchange on the last preceding date for which
such
quotation exists.
5.7
Promissory
Note
.
Subject
to the requirements of applicable state or Federal law or margin requirements,
payment of all or part of the purchase price of the Stock may be made by
delivery of a full recourse promissory note ("Promissory Note"). The Promissory
Note shall be executed by the optionee, made payable to the Corporation and
bear
interest at such rate as the Committee shall determine, but in no case less
than
the minimum rate which will not cause under the Code (i) interest to be
imputed, (ii) original issue discount to exist, or (iii) any other
similar results to occur. Unless otherwise determined by the Committee, interest
on the Note shall be payable in quarterly installments on March 31,
June 30, September 30 and December 31 of each year. A Promissory
Note shall contain such other terms and conditions as may be determined by
the
Committee; provided, however, that the full principal amount of the Promissory
Note and all unpaid interest accrued thereon shall be due not later than five
years from the date of exercise. The Corporation may obtain from the optionee
a
security interest in all shares of Stock issued to the optionee under the Plan
for the purpose of securing payment under the Promissory Note and may retain
possession of the stock certificates representing such shares in order to
perfect its security interest.
5.8
Rights
as a Shareholder
.
An
optionee or successor shall have no rights as a shareholder with respect to
any
Stock underlying any option until the date of the issuance to such optionee
of a
certificate for such Stock. No adjustment shall be made for dividends (ordinary
or extraordinary, whether in cash, securities or other property) or
distributions or other rights for which the record date is prior to the date
such Stock certificate is issued, except as provided in
Section 6.
5.9
Modification,
Extension and Renewal of Options
.
Subject
to the terms and conditions of the Plan, the Committee may modify, extend or
renew outstanding options granted under the Plan, or accept the surrender of
outstanding options (to the extent not exercised) and authorize the granting
of
new options in substitution therefor.
5.10
Vesting
and Restrictions
.
The
Committee shall have complete authority and discretion to set the terms,
conditions, restrictions, vesting schedules and other provisions of any option
in the applicable Stock Option Agreement and shall have complete authority
to
require conditions and restrictions on any Stock issued pursuant to this Plan;
provided, however, that except with respect to options granted to officers
or
directors of the Corporation, options granted pursuant to this Plan shall be
exercisable or "vest" at the rate of at least 20% per year over the 5-year
period beginning on the date the option is granted. Options granted to officers
and directors shall become exercisable or "vest," subject to subject to the
condition of continued employment and/or continued service on the Board of
Directors, as appropriate. The maximum vesting period for options granted to
officers or directors will be ten years from the date of grant.
5.11
Other
Provisions
.
The
Stock Option Agreements shall contain such other provisions, including without
limitation, restrictions or conditions upon the exercise of options, as the
Committee shall deem advisable.
6.
ADJUSTMENTS
UPON CHANGES IN CAPITALIZATION
.
6.1
Subdivision
or Consolidation
.
Subject
to any required action by shareholders of the Corporation, the number of shares
of Stock covered by each outstanding option, and the exercise price thereof,
shall be proportionately adjusted for any increase or decrease in the number
of
issued shares of Stock of the Corporation resulting from a subdivision or
consolidation of shares, including, but not limited to, a stock split, reverse
stock split, recapitalization, continuation or reclassification, or the payment
of a stock dividend (but only on the Stock) or any other increase or decrease
in
the number of such shares effected without receipt of consideration by the
Corporation. Any fraction of a share subject to option that would otherwise
result from an adjustment pursuant to this Section shall be rounded
downward to the next full number of shares without other compensation or
consideration to the holder of such option.
6.2
Capital
Transactions
.
Upon a
sale or exchange of all or substantially all of the assets of the Corporation,
a
merger or consolidation in which the Corporation is not the surviving
corporation, a merger, reorganization or consolidation in which the Corporation
is the surviving corporation and shareholders of the Corporation exchange their
stock for securities or property, a liquidation of the Corporation, or similar
transaction as determined by the Committee ("Capital Transaction"), this Plan
and each option issued under this Plan, whether vested or unvested, shall
terminate, unless such options are assumed by a successor corporation in a
merger or consolidation, immediately prior to such Capital Transaction;
provided, however, that unless the outstanding options are assumed by a
successor corporation in a merger or consolidation, subject to terms approved
by
the Committee, all optionees will have the right, during the 15 days prior
to
such Capital Transaction, to exercise all vested options. The Corporation shall,
subject to any nondisclosure provisions, attempt to provide optionees at least
15 days notice of the option termination date. The Committee may (but shall
not
be obligated to) (i) accelerate the vesting of any option or
(ii) apply the foregoing provisions, including but not limited to
termination of this Plan and options granted pursuant to the Plan, in the event
there is a sale of 51% or more of the stock of the Corporation in any two year
period or a transaction similar to a Capital Transaction.
6.3
Adjustments
.
To the
extent that the foregoing adjustments relate to stock or securities of the
Corporation, such adjustments shall be made by the Committee, whose
determination in that respect shall be final, binding and
conclusive.
6.4
Ability
to Adjust
.
The
grant of an option pursuant to the Plan shall not affect in any way the right
or
power of the Corporation to make adjustments, reclassifications, reorganizations
or changes of its capital or business structure or to merge, consolidate,
dissolve, liquidate, sell or transfer all or any part of its business or
assets.
6.5
Notice
of Adjustment.
Whenever
the Corporation shall take any action resulting in any adjustment provided
for
in this Section, the Corporation shall forthwith deliver notice of such action
to each optionee, which notice shall set forth the number of shares subject
to
the option and the exercise price thereof resulting from such
adjustment.
6.6
Limitation
on Adjustments.
Any
adjustment, assumption or substitution of an Incentive Option shall comply
with
Section 425 of the Code, if applicable.
7.
NONASSIGNABILITY
.
Options
granted under this Plan may not be sold, pledged, assigned or transferred in
any
manner other than by will or by the laws of intestate succession, and may be
exercised during the lifetime of an optionee only by such optionee. Any transfer
in violation of this Section shall void such option, and any Stock Option
Agreement entered into by the optionee and the Corporation regarding such
transferred option shall be void and have no further force or effect. No option
shall be pledged or hypothecated in any way, nor shall any option be subject
to
execution, attachment or similar process.
8.
NO
RIGHT OF EMPLOYMENT
.
Neither
the grant nor exercise of any option nor anything in this Plan shall impose
upon
the Corporation or any other corporation any obligation to employ or continue
to
employ any optionee. The right of the Corporation and any other corporation
to
terminate any employee shall not be diminished or affected because an option
has
been granted to such employee.
9.
TERM
OF PLAN
.
This
Plan is effective on the date the Plan is adopted by the Board of Directors
and
options may be granted pursuant to the Plan from time to time within a period
of
ten (10) years from such date, or the date of any required shareholder approval
required under the Plan, if earlier. Termination of the Plan shall not affect
any option theretofore granted.
10.
AMENDMENT
OF THE PLAN
.
The
Board of Directors of the Corporation may, subject to any required shareholder
approval, suspend, discontinue or terminate the Plan, or revise or amend it
in
any respect whatsoever with respect to any shares of Stock at that time not
subject to options.
11.
APPLICATION
OF FUNDS
.
The
proceeds received by the Corporation from the sale of Stock pursuant to options
may be used for general corporate purposes.
12.
RESERVATION
OF SHARES
.
The
Corporation, during the term of this Plan, shall at all times reserve and keep
available such number of shares of Stock as shall be sufficient to satisfy
the
requirements of the Plan.
13.
NO
OBLIGATION TO EXERCISE OPTION
.
The
granting of an option shall not impose any obligation upon the optionee to
exercise such option.
14.
APPROVAL
OF BOARD OF DIRECTORS AND SHAREHOLDERS
.
The
Plan shall not take effect until approved by the Board of Directors of the
Corporation. This Plan shall be approved by a vote of the shareholders within
12
months from the date of approval by the Board of Directors. In the event such
shareholder vote is not obtained, all options granted hereunder, whether vested
or unvested, shall be null and void. Further, any stock acquired pursuant to
the
exercise of any options under this Agreement may not count for purposes of
determining whether shareholder approval has been obtained.
15.
WITHHOLDING
TAXES
.
Notwithstanding anything else to the contrary in this Plan or any Stock Option
Agreement, the exercise of any option shall be conditioned upon payment by
such
optionee in cash, or other provisions satisfactory to the Committee, of all
local, state, federal or other withholding taxes applicable, in the Committee's
judgment, to the exercise or to later disposition of shares acquired upon
exercise of an option.
16.
PARACHUTE
PAYMENTS
.
Any
outstanding option under the Plan may not be accelerated to the extent any
such
acceleration of such option would, when added to the present value of other
payments in the nature of compensation which becomes due and payable to the
optionee would result in the payment to such optionee of an excess parachute
payment under Section 280G of the Code. The existence of any such excess
parachute payment shall be determined in the sole and absolute discretion of
the
Committee.
17.
SECURITIES
LAWS COMPLIANCE
.
Notwithstanding anything contained herein, the Corporation shall not be
obligated to grant any option under this Plan or to sell, issue or effect any
transfer of any Stock unless such grant, sale, issuance or transfer is at such
time effectively (i) registered or exempt from registration under the
Securities Act of 1933, as amended (the "Act"), and (ii) qualified or
exempt from qualification under the California Corporate Securities Law of
1968
and any other applicable state securities laws. As a condition to exercise
of
any option, each optionee shall make such representations as may be deemed
appropriate by counsel to the Corporation for the Corporation to use any
available exemption from registration under the Act or qualification under
any
applicable state securities law.
18.
RESTRICTIVE
LEGENDS
.
The
certificates representing the Stock issued upon exercise of options granted
pursuant to this Plan will bear any legends required by applicable securities
laws as determined by the Committee.
19.
NOTICES
.
Any
notice to be given under the terms of the Plan shall be addressed to the
Corporation in care of its Secretary at its principal office, and any notice
to
be given to an optionee shall be addressed to such optionee at the address
maintained by the Corporation for such person or at such other address as the
optionee may specify in writing to the Corporation.
20.
INFORMATION
TO PARTICIPANTS
.
The
Corporation shall make available to all holders of options the information
required pursuant to § 260.140.46 of the California Code of
Regulations.
EXHIBIT A
____________,
200__
Mitek
Systems, Inc.
8911
Balboa Ave, Suite B
San
Diego, CA 92123
|
Re:
|
2006
Stock Option Plan
|
To
Whom
It May Concern:
This
letter is delivered to Mitek Systems, Inc., a Delaware corporation (the
"Corporation"), in connection with the grant to
(the
"Optionee") of an option (the "Option") to purchase
shares
of common stock of the Corporation (the "Stock") pursuant to the Mitek Systems,
Inc. 2006 Stock Option Plan (the "Plan"). The Optionee understands that the
Corporation's receipt of this letter executed by the Optionee is a condition
to
the Corporation's willingness to grant the Option to the Optionee.
The
Optionee acknowledges that the grant of the Option by the Corporation is in
lieu
of any and all other promises of the Corporation to the Optionee, whether
written or oral, express or implied, regarding the grant of options or other
rights to acquire Stock. Accordingly, in anticipation of the grant of the
Option, the Optionee hereby relinquishes all rights to such other rights, if
any, to acquire stock of the Corporation.
In
addition, the Optionee makes the following representations and warranties with
the understanding that the Corporation will rely upon them.
1.
The
Optionee acknowledges receipt of a copy of the Plan and Agreement. The Optionee
has carefully reviewed the Plan and Agreement.
2.
The
Optionee acknowledges receipt of a prospectus regarding the Plan which includes
the information required by Section (a)(1) of Rule 428 under the
Securities Act of 1933.
3.
The
Optionee understands and acknowledges that the Option and the Stock are subject
to the terms and conditions of the Plan.
4.
The
Optionee understands and agrees that, at the time of exercise of any part of
the
Option for Stock, the Optionee may be required to provide the Corporation with
additional representations, warranties and/or covenants similar to those
contained in this letter.
5.
The
Optionee is a resident of the State of __________________________.
6.
The
Optionee will notify the Corporation immediately of any change in the above
information which occurs before the Option is exercised in full by the
Optionee.
The
foregoing representations and warranties are given on ___________________,
2006
at ____________________.
EXHIBIT B
____________,
200__
Mitek
Systems, Inc.
8911
Balboa Ave, Suite B
San
Diego, CA 92123
|
Re:
|
2006
Stock Option Plan
|
To
Whom
It May Concern:
I
(the
"Optionee") hereby exercise my right to purchase
shares
of common stock (the "Stock") of Mitek Systems, Inc., a Delaware corporation
(the "Corporation"), pursuant to, and in accordance with, the Mitek Systems,
Inc. 2006 Stock Option Plan dated ____________________, 2006 (the "Plan") and
Stock Option Agreement (the "Agreement") dated ______________________, 2006.
As
provided in such Plan, I deliver herewith payment as set forth in the Plan
in
the amount of the aggregate option exercise price. Please deliver to me at
my
address as set forth above stock certificates representing the subject shares
registered in my name (and
(spouse)
,
as
(style
of vesting)
).
The
Optionee hereby represents and agrees as follows:
1.
The
Optionee acknowledges receipt of a copy of the Plan and Agreement. The Optionee
has carefully reviewed the Plan and Agreement.
2.
The
Optionee is a resident of the State of __________.
3.
The
Optionee represents and agrees that if the Optionee is an "affiliate" (as
defined in Rule 144 under the Securities Act of 1933) of the Corporation at
the
time the Optionee desires to sell any of the Stock, the Optionee will be subject
to certain restrictions under, and will comply with all of the requirements
of,
applicable federal and state securities laws.
The
foregoing representations and warranties are given on
___________________________ at ______________________.