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EXHIBIT 4.4
MEDAPHIS CORPORATION
NON-EMPLOYEE DIRECTOR STOCK OPTION AGREEMENT
THIS AGREEMENT ("Agreement") is made as of the ____ day of __________,
______, by and between MEDAPHIS CORPORATION, a corporation organized and doing
business under the laws of the State of Delaware (the "Company"), and
__________________ (the "Optionee").
W I T N E S S E T H:
WHEREAS, the Optionee has been granted an option to purchase the number
of shares of voting common stock, par value $.01 per share ("Common Stock"), of
the Company allocated to such Optionee under the formula contained in the
Medaphis Corporation Non-Employee Director Stock Option Plan, as amended (the
"Plan"), and the Board of Directors of the Company (the "Board"), as
administrator of the Plan, wishes for the Optionee and the Company to enter into
this Agreement to provide for certain matters relating to such option;
WHEREAS, Optionee is a director of the Company and is not an employee
of the Company (a "Non-Employee Director");
WHEREAS, the Company and the Optionee wish to confirm the terms and
conditions of the option; and
WHEREAS, capitalized terms used and not otherwise defined herein shall
have the meaning provided to such terms in the Plan.
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, it is hereby agreed between the parties hereto as follows:
1. Grant of Option. Upon and subject to the terms, restrictions,
limitations and conditions stated herein and in the Plan, the Company hereby
grants to the Optionee an option (the "Option") to purchase all or any part of
____ Thousand (_______) shares of Common Stock (hereinafter, the "Option
Shares"), effective as of the date first written above.
2. Terms and Exercise of Option. Subject to the provisions of Section 5
of this Agreement:
(a) The Option shall be fully vested as of the date of this
Agreement (the "Date of Grant"), but the Optionee shall not have the
right to exercise the Option until one (1) year after the Date of Grant
; provided, however, that in the event the Optionee ceases to be a
Non-Employee Director of the Company by reason of retirement, total and
permanent disability (within the meaning of Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended (the "Code")), or death, the
Option shall become immediately exercisable. For purposes of this
Agreement, the term "by reason of retirement" means mandatory
retirement pursuant to established Board policy.
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(b) The Option shall expire, terminate and no longer be
exercisable upon the date which is eleven (11) years from the Date of
Grant.
(c) After the Option has become exercisable, the Optionee
shall have the right to exercise the Option at any time and from time
to time, subject to Section 2(b), with respect to any unexercised
portion of the Option Shares. The Option may be exercised by delivery
to the Company, at its principal place of business in Atlanta, Georgia,
of the written Notice of Exercise in the form attached hereto as
Exhibit A, which is incorporated herein by reference, specifying the
number of shares of Common Stock with respect to which the Option is
being exercised and signed by the Optionee or the personal
representative of the Optionee pursuant to Section 2(a) hereof, and
payment of the exercise price. Upon acceptance of such notice and
receipt of payment in full, the Company shall cause to be issued a
certificate representing the shares of Common Stock purchased.
(d) The Optionee, or the personal representative of the
Optionee pursuant to Section 2(a) hereof, shall have no rights as a
stockholder with respect to any shares covered by the Option until the
issuance of a stock certificate to the Optionee for such shares. No
adjustment shall be made for dividends (ordinary or extraordinary,
whether in cash, securities or other property), distributions or other
rights on or with respect to shares of Common Stock purchased pursuant
to the Option for which the record date for such dividend, distribution
or other right is prior to the date of exercise of the Option, except
as provided in Section 4 hereof.
3. Exercise Price. The Optionee must pay to the Company $______ per
share for the Common Stock acquired pursuant to the exercise of the Option. The
Option exercise price shall be paid in full at the time of exercise (a) in cash,
(b) by tendering Common Stock then owned (which has been held for the preceding
six (6) months) and properly endorsed to the Company having a Fair Market Value
equal to the Option exercise price, or (c) partly in cash and partly in Common
Stock (which has been held for the preceding six (6) months) valued at Fair
Market Value, at the election of the Recipient. The Fair Market Value of any
such tendered Shares shall be determined as of the close of the business day
immediately preceding the day on which the certificate is received by the office
of the Secretary of the Company.
4. Change in Control. If the Company agrees to sell all or
substantially all of its assets for cash or property or for a combination of
cash and property or agrees to any merger, consolidation, reorganization or
other corporate transaction in which Common Stock is converted into another
security or into the right to receive securities or property, or in the event of
a Change in Control of the Company or a tender or exchange offer is made for
Common Stock other than by the Company, the Option shall, on the date
immediately preceding the effective date of a transaction contemplated by this
Section 4, become immediately exercisable and the Optionee shall be entitled to
receive (at Optionee's election) upon exercise of such Option and payment of the
applicable Option exercise price, either (1) the number of Shares subject to
such Option, or (2) a cash payment,
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the amount of which shall be determined by the Board by multiplying the number
of shares subject to such Option by the Fair Market Value of the Common Stock;
provided, however, that in the event the transaction contemplated by this
Section 4 involves a merger to be accounted for under the "pooling of interests"
accounting method, then the Board shall have the authority hereunder to modify
the rights of the Optionee under this Section 4 to the extent necessary in order
to preserve the "pooling of interests" accounting treatment for such merger.
5. General Restrictions. If there is no registration statement covering
the Shares in effect under the Securities Act of 1933, as amended, then
notwithstanding anything contained herein to the contrary, no purported transfer
or exercise of the Option shall be effective without the written opinion of
counsel to the Company that the Common Stock to be acquired pursuant to the
exercise of the Option is being acquired in accordance with the terms of an
applicable exemption from the registration requirements of applicable federal
and state securities laws.
6. Limitation of Rights.
(a) No Stockholder Rights. Neither the Optionee nor the
Optionee's successor or successors in interest shall have any rights as
a stockholder of the Company with respect to the Shares subject to the
Option until the date of issuance of a certificate for such Shares. 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 the
certificate is issued, except as otherwise provided in this Agreement.
(b) Limitation as to Directorship. Neither this Agreement, nor
the granting of the Option evidenced hereunder, nor any other action
taken pursuant hereto shall constitute or be evidence of any agreement
or understanding, express or implied, that the Optionee has a right to
continue as a director for any period of time.
7. No Obligation to Exercise Option. The granting of an Option shall
impose no obligation upon the Optionee to exercise the Option.
8. Governing Laws. This Agreement shall be construed, administered and
enforced according to the laws of the State of Delaware; provided, however, that
no Option may be exercised except, in the reasonable judgment of the Board, in
compliance with exemptions under applicable state securities laws of the state
in which the Optionee resides, and/or any other applicable securities laws.
9. Transferability. The Option shall not be assignable or transferable
by the Optionee other than (i) to the spouse, children or grandchildren of the
Optionee ("Immediate Family Members"), (ii) to a trust or trusts for the
exclusive benefit of such Immediate Family Members, (iii) to a partnership in
which such Immediate Family Members are the only partners, (iv) to an entity
exempt from federal income tax pursuant to Section 501(c)(3) of the Code or any
successor provision, or (v) to a split interest trust or pooled income fund
described in Section 2522(c)(2) of the
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Code or any successor provision; provided, however, that (x) there shall be no
consideration for any such transfer, and (y) other transfers by the Optionee, or
any subsequent transfer of transferred Options by a transferee, shall be
prohibited, except those by will or the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined in the Code or Title
I of the Employee Retirement Income Security Act of 1974, as amended; and
provided, further, that following transfer, for purpose of elections to exercise
the Option and the sale or merger and change in control provisions of the Plan
and of Section 4 of this Agreement, the terms "Non-Employee Director," as used
in the Plan, and "Optionee," as used in this Agreement, shall be deemed to
include the transferee, but the Option otherwise shall continue to be subject to
the same terms and conditions that were applicable immediately prior to
transfer. The Company shall have no obligation to register with any federal or
state securities commission or agency any Common Stock issuable or issued under
the Option in the event that the Option has been transferred by the Optionee
under Section 5(h) of the Plan or under this Section 9.
10. Successors. This Agreement shall be binding upon and inure to the
benefit of the heirs, legal representatives, successors and permitted assigns of
the parties.
IN WITNESS WHEREOF, the parties have executed and sealed this Agreement
on the day and year first written above.
MEDAPHIS CORPORATION
By:
--------------------------------
Name:
[CORPORATE SEAL] Title:
ATTEST:
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Name:
Title:
OPTIONEE
(Seal)
-----------------------------
Name:
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EXHIBIT A
NOTICE OF EXERCISE OF MEDAPHIS CORPORATION
NON-EMPLOYEE DIRECTOR STOCK OPTION TO PURCHASE
COMMON STOCK OF MEDAPHIS CORPORATION
Name:
-------------------------------
Address:
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Date:
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Medaphis Corporation
2840 Mt. Wilkinson Parkway
Suite 300
Atlanta, Georgia 30339
Attn: President
Re: Exercise of Medaphis Corporation Non-Employee Director Stock
Option
Ladies and Gentlemen:
Subject to acceptance hereof in writing by Medaphis Corporation (the
"Company") pursuant to the provisions of the Medaphis Corporation Non-Employee
Director Stock Option Plan, I hereby elect to exercise options granted to me to
purchase __________ shares of Common Stock, par value $.01 per share, of the
Company under the Medaphis Corporation Non-Employee Director Stock Option
Agreement dated the ____ day of ____________, _____, at a price of $_______ per
share.
Enclosed is $__________________ for the full purchase price in the form
of ________________________.
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As soon as the Stock Certificate is registered in my name, please
deliver it to me at the above address.
Very truly yours,
-----------------------------------
Name:
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AGREED TO AND ACCEPTED:
MEDAPHIS CORPORATION
By: __________________________________
Title: _________________________________
Number of Shares
Exercised: _____________________________
Number of Shares
Remaining: ____________________________
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