Document:

exhibit10_33.htm

    
      Exhibit
        10.33

    

    Executive
      Retention Agreement

    

    This
      Executive Retention Agreement (the "Agreement") is effective as
      of  December 2007 (the "Effective Date"), by and between T.L.V. Kumar
      (the "Executive"), and Kinetic Concepts, Inc. ("KCI" or the "Company") (together
      the "Parties").

    

    RECITALS

    

    WHEREAS,
      the Executive has accepted
      employment with KCI UK Holdings (one of the Company’s subsidiaries) as
      President, EMEA and has significant strategic and management responsibilities
      necessary to the continued successful operation of the Company’s
      business;

    

    WHEREAS,
      the Board of Directors of the
      Company (the "Board") has determined that it is in the best interests of the
      Company and its stockholders to assure that the Company will have the continued
      dedication and objectivity of the Executive;

    

    WHEREAS,
      the Board believes that it is
      imperative to provide the Executive with certain severance benefits upon the
      Executive’s termination of employment under the circumstances described herein
      that provide the Executive with the financial incentive and encouragement
      necessary to remain with the Company on a long-term basis.

    

    NOW,
      THEREFORE, in
      consideration of the mutual covenants contained herein, the Parties agree as
      follows:

    

    1. Term
      of
      Agreement.  The Company and the Executive agree that this
      Agreement will be in effect from the Effective Date until the termination of
      the
      Executive's employment with the Company as set forth in Section 2
      herein.

     

    2. At-Will
      Employment.  While this Agreement is in effect, the Executive's
      employment with the Company shall continue
to
      be at-will and, as such, may be terminated by the Executive or the Company
      at
      any time, for any reason and with or without advance notice, subject to the
      Company's severance obligations set forth herein.

     

    3. Definition
      of
      Terms.  The following terms referred to in this Agreement shall
      have the following meanings:

     

    (a) Change
      in
      Control.  A Change in Control means the first to occur of any
      one of the following events: (i) consummation of any sale, lease, exchange,
      or
      other disposition (in one transaction or a series of related transactions)
      of
      all or substantially all of the assets of the Company (together with the assets
      of the Company's direct and indirect subsidiaries) to any Person or group of
      related Persons, as that term is used in Section 13(d) of the Exchange Act
      (a
      "Group"), together with any affiliates thereof; or (ii) any Person or Group
      becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
      Act), directly or indirectly, of Shares representing more than 50% of the
      aggregate voting power of the issued and outstanding stock entitled to vote
      in
      the election of directors of the Company; or (iii) the shareholders of the
      Company approve a plan of complete liquidation or dissolution of the
      Company.

     

    (b) Qualifying
      Termination.  A "Qualifying Termination" shall mean the
      Executive's (i) termination of employment by the Company without "Cause;" or
      (ii) the Executive's resignation from employment for "Good Reason."

     

    (c) Cause.  "Cause"
      shall mean conduct involving one or more of the following:  (i) the
      substantial and continuing failure of the Executive to render services to the
      Company or any subsidiary or affiliate in accordance with the Executive’s
      obligations and position with the Company, subsidiary or affiliate; provided that the
      Company or any subsidiary or affiliate provides the Executive with adequate
      notice of such failure and, if such failure is capable of cure, the Executive
      fails to cure such failure within 30 days of the notice; (ii) dishonesty, gross
      negligence, or breach of fiduciary duty; (iii) the Executive's indictment of,
      conviction of, or no contest plea to, an act of theft, fraud or embezzlement;
      (iv) the commission of a felony; or (v) a material breach of the terms of an
      agreement between the Executive and the Company or any subsidiary or affiliate
      on the other hand or a material breach of any Company policy.

     

    (d) Good
      Reason.  "Good Reason" shall mean one or more of the
      following:  (i) the material reduction of Executive’s duties and/or
      responsibilities, which is not cured within 30 days after the Executive provides
      written notice to the Company; provided, however,
      it
      shall not be considered Good Reason if, upon or following a Change in Control,
      the Executive's duties and responsibilities remain the same as those prior
      to
      the Change in Control but the Executive's title and/or reporting relationship
      is
      changed; (ii) the material reduction of Executive's base salary, other than
      across-the-board decreases in base salary applicable to all executive officers
      of the Company; or (iii) the relocation of the Executive to a business location
      in excess of fifty (50) miles from the Company’s headquarters in San
      Antonio.

     

    (e) Disability.  For
      purposes of this Agreement, "Disability" shall mean that the Executive is
      unable, with or without reasonable accommodation, to perform one or more
      essential functions of his or her position as an employee of the Company as
      the
      result of his or her incapacity due to physical or mental impairment for more
      than 90 days (not necessarily consecutive) in any 180-day period.

     

    4. Severance
      Benefits Upon a
      Qualifying Termination.

     

    (a) Qualifying
      Termination in
      Connection with a Change in Control.  If the Executive
      experiences a Qualifying Termination upon or within 24 months following a Change
      of Control, then the Executive shall be entitled to receive the following
      severance benefits, which shall be in addition to any salary earned and vacation
      accrued up to and including the date of termination, as determined by the
      Company: (i) a severance payment in the amount of two times  the sum
      of the Executive's annual base salary plus annual target bonus, payable as
      a
      lump sum payment within five business days of the date the Executive executes
      and returns a full waiver and release of all claims in a form provided by the
      Company; and (ii) if the Executive timely elects COBRA health insurance
      continuation coverage, reimbursement of COBRA premiums for up to 18 months
      following the date of termination.

     

    (b) Qualifying
      Termination not
      in Connection with a Change in Control.  If the Executive
      experiences a Qualifying Termination that is not in connection with a Change
      of
      Control as described in Section 4(a) herein, then the Executive shall be
      entitled to receive the following severance benefits, which shall be in addition
      to any salary earned and vacation accrued up to and including the date of
      termination, as determined by the Company: (i) a severance payment in the amount
      of the Executive's annual base salary plus annual target bonus, payable as
      a
      lump sum payment within five business days of the date the Executive executes
      and returns a full waiver and release of all claims in a form provided by the
      Company; and (ii) if the Executive timely elects COBRA health insurance
      continuation coverage, reimbursement of COBRA premiums for up to 12 months
      following the date of termination.

     

    5. Termination
      of Executive's
      Employment Other than a Qualifying Termination

     

    (a) Termination
      on Account of
      Executive's Disability or Death.  If the Company terminates the
      Executive’s employment as a result of the Executive’s Disability or due to the
      death of the Executive, then the Executive shall not be entitled to receive
      any
      severance benefits and shall only be entitled to receive any salary earned
      and
      vacation accrued up to and including the date of termination; provided, however,
      that this provision shall not have any effect upon any rights the Executive
      or
      his estate may have under the terms of any Company short or long-term disability
      policy or life insurance policy.

     

    (b) Termination
      for Cause or
      Resignation without Good Reason.  If the Executive is
      terminated for Cause or resigns from employment without Good Reason, then the
      Executive shall not be entitled to receive any severance benefits and shall
      only
      be entitled to receive any salary earned and vacation accrued up to and
      including the date of termination

     

    6. Conditions
      to Severance
      Benefits.

     

    (a) No
      severance benefits shall be made under Sections 4(a) and (b) unless and until
      the Executive shall, in consideration of such benefits, execute a full waiver
      and release of all claims in a form provided by the Company.

     

    (b) The
      Executive acknowledges and agrees that he or she is not entitled to any
      severance or change in control benefits provided under the terms of the 1997
      KCI
      Severance Pay Plan or any similar agreement, plan or arrangement, other than
      the
      Company's stock option plans.

     

    (c) All
      payment of severance benefits under this Agreement shall comply with section
      409A of the Internal Revenue Code.

     

    7. Successors.

     

    (a) Company’s
      Successors.  Any successor (or parent thereof) to the Company
      (whether direct or indirect and whether by purchase, lease, merger,
      consolidation, liquidation or otherwise) or to all or substantially all of
      the
      Company’s business and/or assets shall assume the obligations under this
      Agreement and agree expressly to perform the obligations under this Agreement
      in
      the same manner and to the same extent as the Company would be required to
      perform such obligations in the absence of a succession.  For all
      purposes under this Agreement, the term "Company" shall include any successor
      (or parent thereof) to the Company’s business and/or assets.

     

    (b) Executive’s
      Successors.  All rights of the Executive hereunder shall inure
      to the benefit of, and be enforceable by, the Executive’s personal or legal
      representatives, executors, administrators, successors, heirs, distributees,
      devisees and legatees.  Executive shall have no right to assign any of
      his obligations or duties under this Amended Agreement to any other person
      or
      entity.

     

    8. Notice.

     

    (a) General.  Notices
      and all other communications contemplated by this Agreement shall be in writing
      and shall be deemed to have been duly given when personally delivered or when
      mailed by U.S. registered or certified mail, return receipt requested and
      postage prepaid.  In the case of the Executive, mailed notices shall
      be addressed to him at the home address which he most recently communicated
      to
      the Company in writing.  In the case of the Company, mailed notices
      shall be addressed to its corporate headquarters, and all notices shall be
      directed to the attention of its General Counsel.

     

    (b) Notice
      of
      Termination.  Any termination by the Company for Cause or by
      the Executive for Good Reason shall be communicated by a written notice of
      termination to the other party hereto.  Such notice shall indicate the
      specific termination provision in this Agreement relied upon and shall set
      forth
      in reasonable detail the facts and circumstances claimed to provide a basis
      for
      termination under the provision so indicated.

     

    9. Arbitration.  All
      disputes relating to or arising out of this Agreement or otherwise in connection
      with the Executive's employment with, or termination from, the Company, shall
      be
      settled by binding arbitration in accordance with the Company's standard
      arbitration policy and procedures.

     

    10. Miscellaneous
      Provisions.

     

    (a) Waiver.  No
      provision of this Agreement shall be amended, modified, waived or discharged
      unless the modification, waiver or discharge is agreed to in writing and signed
      by the Executive and by an authorized officer of the Company (other than the
      Executive).  No waiver by either party of any breach of, or of
      compliance with, any condition or provision of this Agreement by the other
      party
      shall be considered a waiver of any other condition or provision or of the
      same
      condition or provision at another time.

     

    (b) Choice
      of
      Law.  The validity, interpretation, construction and
      performance of this Amended Agreement shall be governed by the laws of the
      State
      of Texas.

     

    (c) Severability.  The
      invalidity or unenforceability of any provision or provisions of this Agreement
      shall not affect the validity or enforceability of any other provision hereof,
      which shall remain in full force and effect.

     

    (d) Employment
      Taxes.  All payments made pursuant to this Agreement will be
      subject to withholding of applicable income and employment taxes and other
      authorized deductions.

     

    (e) No
      Representations.  Each party acknowledges that it is not
      relying and has not relied on any promise, representation or statement made
      by
      or on behalf of the other party that is not set forth in this Amended
      Agreement.

     

    (f) Counterparts.  This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but all of which together will constitute one and the same
      instrument.

     

    (g) Prior
      Agreements.  Except as specifically set forth on Exhibit A
      hereto, this Agreement shall supersede all prior arrangements, whether written
      or oral, and understandings regarding the subject matter of this
      Agreement.

    

    

    

    

     

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    In
      Witness
      Whereof, each of the Parties has executed this Agreement, in the case of
      the Company by its duly authorized officer.

     

    
      	
              
              

              COMPANY

              
              

            	
              
              

              Kinetic
                Concepts, Inc.

               

              
              

              By:    /s/ 
                Catherin M.
                Burzik                                 
                

              
              

              Title:  President
                and Chief Executive Officer

               

              Date:

               

              
              

            
	
              
              

              EXECUTIVE

              
              

            	
              
              

                 /s/  
                TLV Kumar   

                 
                T.L.V. Kumar

               

                
Date: 
03
                Dec. 2007exhibit10_34.htm

    Exhibit
      10.34

     

    KINETIC
      CONCEPTS, INC.

    

    2003
      NON-EMPLOYEE DIRECTORS STOCK PLAN

    

    As
      Amended and Restated on December 4, 2007

    

    ____________________________________

    

    

    ARTICLE
      I.  DEFINITIONS

    

    1.1           
      Affiliate.  A
      corporate parent, corporate subsidiary, limited liability company, partnership
      or other business entity that is wholly-owned, controlled by, or controls the
      Company through the beneficial ownership of greater than 50% of the outstanding
      capital stock of the Company, as determined in accordance with Rule 13d-3 under
      the Exchange Act.

    

    1.2           
      Affiliated
      Participant.  A Participant who is (i) receiving a management
      fee from the Company, or (ii) a principal of, or a non-employee Board member
      appointed by, a shareholder of the Company which is receiving a management
      fee
      from the Company.

    

    1.3           
      Agreement.  A
      written agreement (including any amendment or supplement thereto) between the
      Company or an Affiliate of the Company and a Participant specifying the terms
      and conditions of an Option or a Restricted Stock Award, as the case may be,
      granted to such Participant.

    

    1.4           
      Board.  The
      board of directors of the Company.

    

    1.5           
      Code.  The
      Internal Revenue Code of 1986, as amended.

    

    1.6           
      Committee.  A
      committee that is designated by the Board to serve as the administrator of
      the
      Plan.  The Committee shall be composed of at least two individuals who
      are members of the Board and are not employees of the Company or an Affiliate,
      and who are designated by the Board as the "compensation committee" or are
      otherwise designated to administer the Plan.  In the absence of a
      designation of a Committee by the Board, the Board shall be the
      Committee.

    

    1.7           
      Company.  Kinetic
      Concepts, Inc. and its successors.

    

    1.8           
      Date of
      Exercise.  The date that the Participant tenders the exercise
      price of an Option.

    

    1.9           
      Effective
      Date.  The effective date of the Plan, which is May 28,
      2003.

    

    1.10          Exchange
      Act.  The Securities Exchange Act of 1934, as
      amended.

    

    1.11          Fair
      Market
      Value.  On any given date, Fair Market Value shall be
      determined by the applicable method described below:

    

    (a)           
      If the Stock is traded on a trading exchange (e.g., the New York Stock Exchange)
      or is reported on the NASDAQ National Market System or another NASDAQ automated
      quotation system or the OTC Bulletin Board System, Fair Market Value shall
      be
      the closing selling price of the Stock on such exchange or system with respect
      to the date for which Fair Market Value is being determined. If there is no
      closing selling price for the Stock on the date in question, then the Fair
      Market Value shall be the closing selling price on the last preceding date
      for
      which such a quotation exists.

    

    (b)           
      If the Stock is not traded on a recognized exchange or automated trading system,
      Fair Market Value shall be the value determined in good faith by the
      Committee.

    

    1.12          Grant
      Date.  The date set forth herein in Article IV as the date of
      grant for an Option or Stock Award, notwithstanding that an Agreement with
      respect thereto may be executed or delivered thereafter.

    

    1.13.         Non-Affiliated
      Participant.  A Participant who is not an Affiliated
      Participant.

    

    1.14          Option.  The
      right that is granted hereunder to a Participant to purchase from the Company
      a
      stated number of shares of Stock at the price set forth in an
      Agreement.

    

    1.15          Participant.  A
      member of the Board who is not employed by the Company or an Affiliate of the
      Company and who otherwise satisfies the criteria for being a Participant, as
      established from time to time by the Board.

    

    1.16          Plan.  The
      Kinetic Concepts, Inc. 2003 Non-Employee Directors Stock Plan, as amended and
      restated.

    

    1.17          Restricted
      Stock
      Award.  An award of shares of Stock granted under the Plan and
      subject to the restrictions set forth herein and in the Agreement executed
      in
      connection therewith.

    

    1.18          Restriction
      Period.  The period of time during which restrictions apply to
      a Restricted Stock Award.

    

    1.19          Stock.  The
      common stock, par value $0.001 per share, of the Company or any successor
      security.

    

    1.20          Stock
      Award.  A Restricted Stock Award or an Unrestricted Stock Award
      granted under the Plan, as applicable.

    

    1.21          Underwriting
      Agreement.  The agreement between the Company and the
      underwriter or underwriters managing the initial public offering of the
      Stock.

    

    1.22          Underwriting
      Date.  The date on which the Underwriting Agreement is executed
      and priced in connection with the initial public offering of the Common
      Stock.

    

    1.23          Unrestricted
      Stock
      Award.  An award of shares of Stock granted under the Plan
      which is not subject to vesting requirements or transferability restrictions
      (other than those required under Article IX, applicable law and any Company
      policy restricting the trading of shares of Stock by directors and
      officers).

    

    ARTICLE
      II.  PURPOSE OF PLAN

    

    The
      purpose of the Plan is to provide
      an incentive to enable the Company to attract and retain experienced and
      highly-qualified individuals to serve as directors of the Company, and to
      encourage stock ownership by such directors so that their interests are aligned
      with the interests of the Company and its shareholders.  It is
      intended that Participants may acquire and maintain equity interests in the
      Company to align their interests with the Company's shareholders.

    

    ARTICLE
      III.  ADMINISTRATION

    

    3.1           
      Administration of
      Plan.  The Plan shall be administered by the
      Committee.  The express grant in the Plan of any specific power to the
      Committee shall not be construed as limiting any power or authority of the
      Committee.  Any decision made or action taken by the Committee to
      administer the Plan shall be final and conclusive.  No member of the
      Committee shall be liable for any act done in good faith with respect to this
      Plan or any Agreement, Option or Stock Award.  The Company shall bear
      all expenses of Plan administration.  In addition to all other
      authority vested in the Committee under the Plan, the Committee shall have
      complete authority to:

    

    (a)           
      Interpret all provisions of the Plan;

    

    (b)           
      Prescribe the form of any Agreement and notice and manner for executing or
      giving the same;

    

    (c)           
      Make amendments to all Agreements;

    

    (d)           
      Adopt, amend and rescind rules for Plan administration;

    

    (e)           
      Make all determinations it deems advisable for the administration of the
      Plan;

    

    (f)           
      Amend the terms of outstanding Options and impose terms and conditions on the
      shares of Stock issued pursuant to Stock Awards or upon the exercise of
      Options;

    

    (g)           
      Either at the time an Option or Stock Award is granted, or by subsequent action,
      to impose such restrictions, conditions, or limitations as it determines
      appropriate as to the timing and manner of any resales including, but not
      limited to restrictions under an insider trading policy, restrictions designed
      to delay and/or coordinate the timing and manner of sales by Participants,
      and
      restrictions as to the use of specific brokerage firms for any resales or
      transfers. Notwithstanding the foregoing, an amendment, restriction, condition
      or limitation that would have a material adverse effect on the rights of a
      Participant under an outstanding Option or Stock Award shall not be valid with
      respect to such Option or Stock Award without the Participant’s
      consent;

    

    (h)           
      Waive conditions to and/or accelerate the exercisability or vesting of an Option
      or Stock Award, either automatically or upon the occurrence of specified events
      or otherwise in its discretion; and

    

    (i)           
      Determine the extent to which a leave of absence for military or government
      service, illness, temporary or permanent disability, or other reasons shall
      be
      treated as a termination, disability or interruption of service as a member
      of
      the Board.

    

    3.2           
      Section
      16(b).  Notwithstanding anything in the Plan to the contrary,
      the Committee, in its absolute discretion, may restrict, limit or condition
      the
      use of any provision of the Plan in order to ensure compliance with Section
      16(b) of the Exchange Act and the rules promulgated thereunder.

    

    ARTICLE
      IV.  ELIGIBILITY AND LIMITATIONS ON GRANTS

    

    4.1           
      Option
      Grants.  Options shall be granted automatically as
      follows:

    

    (a)           
      Number.

    

    (i)           
      Effective for all periods prior to January 1, 2005, each Participant shall
      automatically be granted an Option on a yearly basis to purchase a number of
      shares of Stock equal to $50,000 divided by the Fair Market Value of the Stock
      as of the Grant Date. The initial Grant Date for each Non-Affiliated Participant
      shall be on the earlier to occur of (i) the Effective Date, if the Participant
      is serving as a Board member on such date, or (ii) the first date after the
      Effective Date that such Participant is elected by the shareholders of the
      Company to serve as a Board member. The initial Grant Date for each Affiliated
      Participant shall be on the earlier of occur of (x): the Underwriting Date,
      or
      (y) the date on which the agreement pursuant to which a management fee is
      required to be paid, paid by the Company to the Affiliated Participant or the
      Affiliated Participant’s employer shall be terminated.  Each year
      thereafter, each Participant shall be granted an additional Option to purchase
      a
      number of shares of Stock equal to $50,000 divided by the Fair Market Value
      of
      the Stock on the date the Board ratifies such grant, provided that he or she
      is
      serving as a Board member on each such date.

    

    (ii)           
      Effective for the period beginning on January 1, 2006 and ending on December
      31,
      2006, as of the date of the annual meeting of shareholders, each Participant
      that is serving as a Board member immediately following the annual meeting
      of
      shareholders shall automatically be granted an Option to purchase 4,500 shares
      of Stock. In addition to the foregoing, unless the Board unanimously determines
      otherwise, if an individual first becomes a Participant at any time during
      this
      period other than at an annual meeting of shareholders, then that Participant
      shall receive an initial Option grant to purchase 4,500 shares of Stock at
      such
      time as he or she first becomes a Participant.

    

    (iii)           
      Effective for the period beginning on January 1, 2007 and ending on December
      31,
      2007, as of the date of each annual meeting of shareholders, each Participant
      (other than the Chairperson of the Board) that is serving as a Board member
      immediately following the annual meeting of shareholders shall automatically
      be
      granted an Option to purchase a number of shares of Stock approximately equal
      to
      the Company's then current Black-Scholes calculation value of $90,000 ($180,000
      for the Chairperson of the Board). In addition to the foregoing, unless the
      Board unanimously determines otherwise, if an individual first becomes a
      Participant at any time other than at an annual meeting of shareholders, then
      that Participant shall receive an initial Option grant to purchase a number
      of
      shares of Stock approximately equal to the Company's then current Black-Scholes
      calculation value of $90,000 at such time as he or she first becomes a
      Participant. The actual number of shares subject to the Option shall
      conclusively be determined by the Company's Chief Financial Officer and set
      forth in the stock option award agreement.

    

    (iv)           
      Effective for all periods from and following January 1, 2008, as of the date
      of
      each annual meeting of shareholders, commencing with the 2008 annual meeting
      of
      shareholders, each Participant (other than the Chairperson of the Board) that
      is
      serving as a Board member immediately following the annual meeting of
      shareholders shall automatically be granted an Option to purchase a number
      of
      shares of Stock approximately equal to the Company's then current Black-Scholes
      calculation value of $100,000 ($200,000 for the Chairperson of the Board).
      In
      addition to the foregoing, unless the Board unanimously determines otherwise,
      if
      an individual first becomes a Participant at any time other than at an annual
      meeting of shareholders, then that Participant shall receive an initial Option
      grant to purchase a number of shares of Stock approximately equal to the
      Company's then current Black-Scholes calculation value of $100,000 at such
      time
      as he or she first becomes a Participant. The actual number of shares subject
      to
      the Option shall conclusively be determined by the Company's Chief Financial
      Officer and set forth in the stock option award agreement.

    

    (b)           
      Price.  The
      exercise price of each share of Stock subject to an Option shall be the Fair
      Market Value of Stock on the Grant Date of such Option.

    

    (c)           
      Option
      Period.  Each Option granted to a Participant will vest and
      become exercisable incrementally over a period of three years with one-twelfth
      (1/12) of the number of the shares of Stock subject to the Option vesting and
      becoming exercisable on the date which is three calendar months following the
      Grant Date, provided that the Participant remains a Board member on each such
      date.  The right to exercise an Option shall terminate seven (7) years
      after the Grant Date, unless terminated sooner pursuant to any of the
      following:

    

    (i)           
      If a Participant is terminated as a Board member on account of fraud, dishonesty
      or other acts detrimental to the interests of the Company, the Option, including
      any portion of the Option which has vested or is otherwise exercisable by the
      Participant, shall terminate as of the date of such termination.

    

    (ii)           
      Upon the death or disability (as defined in Section 22(e)(3) of the Code) of
      a
      Participant, the Option shall fully vest on the date thereof and may be
      exercised within twelve (12) months after such death or disability. In the
      event
      a participant fails to be re-elected to serve as a Board member, the Option
      may
      be exercised, to the extent the Option had vested as of the Participant’s last
      day of service as a member of the Board, within twelve (12) months of such
      an
      event.  Thereafter, the Option shall terminate and no longer be
      exercisable.

    

    (iii)           
      If a Participant is terminated as a Board member for any reason other than
      the
      circumstances described in subparagraphs (i) or (ii) above, the Option may
      be
      exercised, to the extent the Option had vested as of the date of termination
      of
      his directorship, within three (3) months after the effective date of such
      termination. Thereafter, the Option shall terminate and no longer be
      exercisable. Notwithstanding the foregoing, if the Participant becomes an
      employee of the Company or an Affiliate upon the termination of his
      directorship, the Option shall expire after the termination of his employment
      in
      a manner that is consistent with this subparagraph (iii).

    

    (d)           
      Rights of
      Participant.  No Participant shall have any rights as a
      shareholder of the Company with respect to shares of Stock subject to Options
      prior to the date of exercise of such Option.

    

    4.2           
      Restricted Stock
      Awards.  Restricted Stock Awards shall be granted automatically
      as follows:

    

    (a)           
      Number.

    

    (i)           
      Effective for all periods prior to January 1, 2005, each Participant shall
      automatically be granted at no cost to the Participant a Restricted Stock Award
      with respect to a number of shares of Stock equal to $50,000 divided by the
      Fair
      Market Value of the Stock as of the Grant Date on a yearly basis. The initial
      Grant Date for each Non-Affiliated Participant shall be on the earlier to occur
      of (i) the Effective Date, if the Participant is serving as a Board member
      on such date, or (ii) the first date after the Effective Date that such
      Participant is elected by the shareholders of the Company to serve as a Board
      member.  The initial Grant Date for each Affiliated Participant shall
      be in the earlier to occur of: (x) the Underwriting Date or (y) such earlier
      date on which the management fee paid to the Participant or the Participant’s
      employer is terminated.  Each year thereafter, each Participant shall
      be granted an additional Restricted Stock Award with respect to a number of
      shares of Stock equal to $50,000 divided by the Fair Market Value of the Stock
      on the date the Board ratifies such grant, provided that he or she is serving
      as
      a Board member on each such date.

    

    (ii)           
      Effective for the period beginning on January 1, 2006 and ending on December
      31,
      2006, as of the date of the annual meeting of shareholders, each Participant
      that is serving as a Board member immediately following the annual meeting
      of
      shareholders shall automatically be granted at no cost to the Participant a
      Restricted Stock Award with respect to 1,600 shares of Stock. In addition to
      the
      foregoing, unless the Board unanimously determines otherwise, if an individual
      first becomes a Participant at any time during this period other than at an
      annual meeting of shareholders, then that Participant shall receive an initial
      Restricted Stock Award with respect to 1,600 shares of Stock at such time as
      he
      or she first becomes a Participant.

    

    (iii)           
      Effective for the period beginning on January 1, 2007 and ending on December
      31,
      2007, as of the date of each annual meeting of shareholders, each Participant
      (other than the Chairperson of the Board) that is serving as a Board member
      immediately following the annual meeting of shareholders shall automatically
      be
      granted at no cost to the Participant a Restricted Stock Award covering a number
      of shares of Stock approximately equal to $90,000 ($180,000 for the Chairperson
      of the Board) divided by the Fair Market Value of the Stock as of the Grant
      Date. In addition to the foregoing, unless the Board unanimously determines
      otherwise, if an individual first becomes a Participant at any time other than
      at an annual meeting of shareholders, then that Participant shall receive at
      no
      cost to the Participant a Restricted Stock Award covering a number of shares
      of
      Stock approximately equal to $90,000 divided by the Fair Market Value of the
      Stock as of the Grant Date at such time as he or she first becomes a
      Participant. The actual number of shares subject to the Restricted Stock Award
      shall conclusively be determined by the Company's Chief Financial Officer and
      set forth in the Restricted Stock award agreement.

    

    (iv)           
      Effective for all periods from and following January 1, 2008, as of the date
      of
      each annual meeting of shareholders, commencing with the 2008 annual meeting
      of
      shareholders, each Participant (other than the Chairperson of the Board) that
      is
      serving as a Board member immediately following the annual meeting of
      shareholders shall automatically be granted at no cost to the Participant a
      Restricted Stock Award covering a number of shares of Stock approximately equal
      to $100,000 ($200,000 for the Chairperson of the Board) divided by the Fair
      Market Value of the Stock as of the Grant Date. In addition to the foregoing,
      unless the Board unanimously determines otherwise, if an individual first
      becomes a Participant at any time other than at an annual meeting of
      shareholders, then that Participant shall receive at no cost to the Participant
      a Restricted Stock Award covering a number of shares of Stock approximately
      equal to $100,000 divided by the Fair Market Value of the Stock as of the Grant
      Date at such time as he or she first becomes a Participant. The actual number
      of
      shares subject to the Restricted Stock Award shall conclusively be determined
      by
      the Company's Chief Financial Officer and set forth in the Restricted Stock
      award agreement.

    

    (b)           
      Restrictions.  The
      Restricted Stock Award shall be granted to a Participant only pursuant to an
      Agreement, which shall set forth such terms and conditions of the Restricted
      Stock Award as may be determined by the Committee to be consistent with the
      Plan, and which may include additional provisions and restrictions that are
      not
      inconsistent with the Plan.  During the Restriction Period, a
      Participant may not sell, assign, transfer, pledge, or otherwise dispose of
      the
      shares of Stock subject to the Restricted Stock Award except in accordance
      with
      Article VI hereof.  Except for any restrictions under applicable law
      or pursuant to any Company policy restricting the trading of shares of Stock
      by
      directors and officers, all restrictions imposed under the Restricted Stock
      Award shall lapse (i) upon the expiration of the Restriction Period, subject
      to
      the provisions of subparagraph (c) below or (ii) as provided under Section
      8.3.

    

    (c)           
      Restriction
      Period.  The rights of a Participant in respect of a Restricted
      Stock Award shall be subject to a Restriction Period commencing on the Grant
      Date and ending on the third anniversary of the Grant Date provided
      that:

    

    (i)           
      If during the Restriction Period, the Participant is terminated as a Board
      member by death or disability (as defined in Section 22(e)(3) of the Code),
      or
      in the event the Participant fails to be re-elected to serve as a Board member,
      then for each full year such Participant served as a Board member during the
      Restriction Period, one-third (1/3) of the shares of Stock subject to the
      applicable Restricted Stock Award shall be deemed fully vested, and the
      restrictions with respect such vested shares shall lapse on the date of
      termination.  Upon any such termination, if any portion of the
      Restricted Stock Award remains unvested pursuant to this subparagraph (i),
      Participant shall immediately return the share certificates for the Stock
      granted under the Restricted Stock Award to the Company and the Company will
      re-issue share certificates to Participant representing the vested portion
      of
      the Restricted Stock Award.

    

    (ii)           
      If during the Restriction Period, a Participant is terminated as a Board member
      for any reason other than the circumstances described in subparagraph (i) above,
      the Restricted Stock Award shall terminate and Participant shall immediately
      return the share certificates for the Stock granted under the Restricted Stock
      Award to the Company.

    

    (d)           
      Rights of
      Participant.  The Participant shall be entitled to delivery of
      certificates representing the shares of Stock granted under the Restricted
      Stock
      Award.  Upon the grant of a Restricted Stock Award, the Participant
      receiving the grant shall be entitled to vote the shares of Stock and to receive
      any dividends paid thereon.

    

    (e)           
      Stock
      Certificates.  A stock certificate registered in the name of
      each Participant receiving a Restricted Stock Award (or in the name of a trustee
      for the benefit of each Participant) shall be issued in respect of the shares
      of
      Stock issuable pursuant to such Restricted Stock Award.  Such
      certificate shall bear whatever appropriate legend referring to the terms,
      conditions, and restrictions applicable to such award as the Board or the
      Committee shall determine.

    

    4.3           
      Unrestricted Stock
      Awards.  Effective for all periods prior to January 1, 2005,
      unrestricted Stock Awards shall be granted automatically as
      follows:

    

    (a)           
      Number.  Each
      Participant shall automatically be granted an Unrestricted Stock Award on a
      yearly basis with respect to a number of shares of Stock equal to $10,000
      divided by the Fair Market Value of the Stock as of the Grant
      Date.  The initial Grant Date for each Non-Affiliated Participant
      shall be the earlier to occur of (i) the Effective Date, if the Participant
      is serving as a Board member on such date, or (ii) the first date after the
      Effective Date that such Participant is elected by the shareholders of the
      Company to serve as a Board member.  The initial Grant Date for each
      Affiliated Participant shall be on the earlier to occur of: (x) the Underwriting
      Date, or (y) the date on which the agreement pursuant to which a management
      fee
      is required to be paid by the Company to the Affiliated Participant or the
      Affiliated Participant’s employer shall be terminated.  Each year
      thereafter, each Participant shall automatically be granted an additional
      Unrestricted Stock Award with respect to a number of shares of Stock equal
      to
      $10,000 divided by the Fair Market Value of the Stock on the anniversary date
      of
      the initial Unrestricted Stock Award grant to such Participant, provided he
      or
      she is serving as a Board member on such date.

    

    (b)           
      Rights of
      Participant.  Ownership of shares under an Unrestricted Stock
      Award shall vest in the Participant immediately upon the Grant
      Date.  The Participant shall be entitled to delivery of stock
      certificates representing the shares of Stock granted under the Unrestricted
      Stock Award.  Upon the grant of an Unrestricted Stock Award, the
      Participant receiving the grant shall be entitled to all the rights of a
      shareholder of the Company.

    

    

    ARTICLE
      V.  STOCK SUBJECT TO PLAN

    

    5.1           
      Source of
      Shares.  Upon the grant of a Stock Award or the exercise of an
      Option, the Company shall transfer to the Participant authorized but previously
      unissued shares of Stock or, if determined by the Board, shares of Stock that
      are held in treasury.

    

    5.2           
      Maximum Number of
      Shares.  The maximum aggregate number of shares of Stock
      (including shares issuable upon exercise of all Options) that may be issued
      pursuant to this Plan is 400,000 shares, subject to increases and adjustments
      as
      provided in Article VIII.  Should the exercise price of an Option
      under the Plan be paid with shares of Stock or should shares of Stock otherwise
      issuable under the Plan be withheld by the Company in satisfaction of the
      withholding taxes incurred in connection with the exercise of an Option or
      the
      grant of a Stock Award, then the number of shares of Stock issuable under the
      Plan shall be reduced by the gross number of shares of Stock for which the
      Option is exercised, and not by the net number of shares of Stock issued to
      the
      Participant.  If, on any Grant Date, there are not sufficient shares
      of Stock that remain available pursuant to this Section 5.2 to provide the
      grant
      on such date, then the number of shares of Stock subject to the grant on that
      date shall be determined on a pro-rata basis, with fractional shares rounded
      down to the nearest number of whole shares.  All references to numbers
      of shares of Stock subject to grants under Article IV are subject to adjustment
      in accordance with Article VIII.

    

    5.3           
      Forfeitures.  If
      any Option or Restricted Stock Award granted hereunder is forfeited, expires
      or
      terminates for any reason, in part or whole, the shares of Stock subject thereto
      which are thus forfeited shall again be available for issuance under the
      Plan.

    

    ARTICLE
      VI.  TRANSFERABILITY OF OPTIONS AND

    RESTRICTED
      STOCK AWARDS

    

    Any
      Option or Restricted Stock Award
      granted under this Plan shall not be transferable except by will or by the
      laws
      of descent and distribution, and shall be exercisable during the lifetime of
      the
      Participant only by the Participant; provided, however, that an Option or
      Restricted Stock Award may be transferable to the extent provided in an
      Agreement.  No right or interest of a Participant in any Option or
      Restricted Stock Award shall subject to any lien, obligation or liability of
      such Participant.

    

    ARTICLE
      VII.  METHOD OF EXERCISE OF OPTIONS

    

    7.1           
      Exercise.  An
      Option granted hereunder shall be deemed to have been exercised on the Date
      of
      Exercise.  Subject to the provisions of Articles VI and IX, an Option
      may be exercised in whole or in compliance with such requirements as the
      Committee shall determine, but in no event sooner than six months from the
      date
      of grant.

    

    7.2           
      Payment.  Except
      as otherwise provided by the Option Agreement, payment of the exercise price
      of
      an Option shall be made (i) in cash, (ii) where the Stock is publicly traded
      on
      a recognized exchange or automated trading system, in actual or constructive
      delivery of Stock that was acquired at least six months prior to the exercise
      of
      the Option, or such shorter or longer period, if any, as is required by the
      Company’s accountants to avoid a charge to the Company’s earnings for financial
      reporting purposes, (iii) where the Stock is publicly traded on a recognized
      exchange or automated trading system, through a special sale and remittance
      procedure pursuant to which a Participant shall concurrently provide irrevocable
      instructions to (a) a Company-designated brokerage firm to effect the immediate
      sale of the purchased shares and remit to the Company, out of the sale proceeds
      available on the settlement date, sufficient funds to cover the aggregate
      exercise price payable for the purchased shares plus all applicable income
      and
      employment taxes required to be withheld by the Company by reason of such
      exercise and (b) the Company to deliver the certificates for the purchased
      shares directly to such brokerage firm in order to complete the sale, (iv)
      in
      other consideration acceptable to the Committee, or (v) in a combination
      thereof; provided, however, that a form of payment other than cash is only
      acceptable to the extent that the same is approved by the Committee. Payment
      of
      the exercise price must include payment of tax withholding, as described in
      Section 7.3, in cash unless the Company consents to alternative arrangements
      for
      withholding.

    

    7.3           
      Withholding Tax
      Requirements.  Upon exercise of an Option, the Participant
      shall, upon notification of the amount due and prior to or concurrently with
      the
      delivery of the certificates representing the shares, pay to the Company amounts
      necessary to satisfy applicable federal, state and local withholding tax
      requirements or shall otherwise make arrangements satisfactory to the Company
      for such requirements, but only to the extent that the Company is required
      by
      law to withhold such amounts or that the Participant voluntarily elects for
      such
      withholding.

    

    7.4           
      Issuance and Delivery
      of Shares.  Shares of Stock issued pursuant to the exercise of
      Options hereunder shall be delivered to Participants by the Company (or its
      transfer agent) as soon as administratively feasible after a Participant
      exercises an Option hereunder and executes any applicable shareholder agreement
      or agreement described in Section 9.2 that the Company requires at the time
      of
      exercise.

    

    7.5           
      Fractional
      Shares.  Only whole shares of Stock may be issued pursuant to a
      Stock Award or upon exercise of an Option.  Any fractional shares
      resulting from the calculations under Sections 4.1, 4.2 and 4.3 shall be rounded
      down to the nearest whole share.  Any amounts tendered in the exercise
      of an Option remaining after the maximum number of whole shares of Stock have
      been purchased will be returned to the Participant in the form of
      cash.

     

    ARTICLE
      VIII.  ADJUSTMENT UPON CORPORATE CHANGES

    

    8.1           
      Adjustments to
      Shares.  The maximum number of shares of Stock with respect to
      which Options or Stock Awards hereunder may be granted, the number of shares
      of
      Stock which are the subject of outstanding Options or Stock Awards, and the
      exercise price of Options, shall be equitably and appropriately adjusted by
      the
      Committee, in the event that:

    

    (a)           
      the Company effects one or more Stock dividends, Stock splits, reverse Stock
      splits, subdivisions, consolidations or other similar events;

    

    (b)           
      the Company engages in a transaction which is described in section 424(a) of
      the
      Code; or

    

    (c)           
      there occurs any other recapitalization or reorganization event which
      necessitates such action; provided, however, adjustments to the limit on Options
      or Stock Awards specified in Section 5.2 shall be proportionate to the
      modifications of the Stock that are on account of such corporate changes.
      Notwithstanding the foregoing, the Committee may not modify the Plan or the
      terms of any Options or Stock Awards then outstanding or to be granted hereunder
      to provide for the issuance under the Plan of a different class of stock or
      kind
      of securities. If an event described in paragraph (a), (b) or (c) occurs, the
      number of shares of Stock subject to each Option grant to be granted following
      such event pursuant to Section 4.1(a) shall not be adjusted to reflect such
      event unless the Board (in its sole discretion) determines
      otherwise.

    

    8.2           
      Substitution of
      Options on Merger or Acquisition.  The Committee may grant
      Options or Stock Awards in substitution for stock awards, stock options, stock
      appreciation rights or similar awards held by an individual who becomes a
      director of the Company in connection with a transaction to which section 424(a)
      of the Code applies.  The terms of such substituted Options or Stock
      Awards shall be determined by the Committee in its sole discretion, subject
      only
      to the limitations of Article V.

    

    8.3           
      Effect of Certain
      Transactions.  The provisions of this Section 8.3 shall apply
      to the extent that an Agreement does not otherwise expressly address the matters
      contained herein.  If the Company experiences an event which results
      in a "Change in Control," as defined in Section 8.3(a), then, whether or not
      the
      vesting requirements set forth in any Agreement have been satisfied, (i) all
      Options that are outstanding at the time of the Change in Control shall become
      fully vested and exercisable immediately prior to the Change in Control event,
      and (ii) the Restriction Period on an outstanding Restricted Stock Award shall
      automatically expire and all restrictions imposed under such Restricted Stock
      Award shall immediately lapse.

    

    (a)           
      A Change in Control will be deemed to have occurred for purposes hereof if
      (1)
      any "person" as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act, other than an individual who is a shareholder on the date of the adoption
      of the Plan by the Board, becomes the "beneficial owner" (as defined in Rule
      13d-3 under said Act), directly or indirectly, of securities of the Company
      representing more than 50% of the total voting power represented by the
      Company’s then outstanding Voting Securities (as defined below), or (2) the
      shareholders of the Company approve a merger or consolidation of the Company
      with any other entity, other than a merger or consolidation which would result
      in the Voting Securities of the Company outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or by being converted
      into Voting Securities of the surviving entity) more than 50% of the total
      voting power represented by the Voting Securities of the Company or such
      surviving entity outstanding immediately after such merger or consolidation,
      or
      (3) the shareholders of the Company approve a plan of complete liquidation
      of
      the Company or an agreement for the sale or disposition by the Company of all
      or
      substantially all of its assets. For purposes of this Section 8.3(a), "Voting
      Securities" of an entity shall mean any securities of the entity which vote
      generally in the election of its directors.

    

    (b)           
      In the event of a Change in Control, the Committee may provide, in its
      discretion and on such terms and conditions as it deems appropriate, either
      by
      the terms of the Agreement or by a resolution adopted prior to the occurrence
      of
      the Change in Control, that:

    

    (i)         
         any outstanding Option shall be assumed by the surviving
      corporation or any successor corporation to the Company, or a parent or
      subsidiary thereof, or other corporation that is a party to the transaction
      resulting in the Change in Control, in which event, (1) the shares of the Stock
      subject to such Option shall be substituted with the number and class of
      securities of the successor, surviving or other corporation that would have
      been
      issued to the Participant in exchange for shares of the Stock pursuant to the
      Change in Control transaction had the Option been exercised prior to such
      transaction, (2) notwithstanding Section 8.3(b)(i)(1) hereof, the number of
      such
      securities of the successor, surviving or other corporation that is made subject
      to such Option shall be adjusted as necessary so that the aggregate value of
      such securities shall be equal to the aggregate value of the consideration
      that
      would have been paid or issued to the Participant in exchange for the shares
      of
      Stock pursuant to the Change in Control transaction had the Option been
      exercised immediately prior to such transaction, and (3) the exercise price
      payable per share of Stock subject to such Option shall be appropriately
      adjusted provided, however, that the aggregate exercise price for such Option
      shall remain the same;

    

    (ii)           
      any outstanding Option shall be converted into a right to receive cash on or
      following the closing date or expiration date of the Change in Control
      transaction in an amount equal to the aggregate value of the consideration
      that
      would have been paid or issued to the Participant in exchange for shares of
      the
      Stock pursuant to the Change in Control transaction had the Option been
      exercised immediately prior to such transaction less the aggregate exercise
      price of such Option;

    

    (iii)          
      any outstanding Option cannot be exercised after such a Change in Control;
      or

    

    (iv)          
      any outstanding Option may be dealt with in any other manner determined in
      the
      discretion of the Committee.

    

    (c)           
      Notwithstanding the foregoing, a portion of the acceleration of vesting
      described in this Section shall not occur with respect to an Option to the
      extent such acceleration of vesting would cause the Participant or holder of
      such Option to realize less income, net of taxes, after deducting the amount
      of
      excise taxes that would be imposed pursuant to section 4999 of the Code, than
      if
      accelerated vesting of that portion of the Option did not occur. This limitation
      shall not apply (i) to the extent that the Company, an Affiliate or the acquirer
      are obligated to indemnify the Participant or holder for such excise tax
      liability under an enforceable "golden parachute" indemnification agreement,
      or
      (ii) to the extent applicable, the shareholder approval described in Q&A 7
      of Prop. Treas. Reg. ss. 1.280G-1 issued under section 280G of the Code is
      obtained to permit the acceleration of vesting described in this Section
      (applied as if the shareholder approval date was the date of the Change in
      Control).

    

    (d)           
      Notwithstanding anything to the contrary contained herein, a change in ownership
      that occurs as a result of a public offering of the Company’s equity securities
      that is approved by the Board shall not constitute a Change in
      Control.

    

    8.4           
      No Adjustment upon
      Certain Transactions.  The issuance by the Company of shares of
      stock of any class, or securities convertible into shares of stock of any class,
      for cash or property, or for labor or services rendered, either upon direct
      sale
      or upon the exercise of rights or warrants to subscribe therefor, or upon
      conversion of shares or obligations of the Company convertible into such shares
      or other securities, shall not affect, and no adjustment by reason thereof
      shall
      be made with respect to, outstanding Options or Stock Awards.

    

    ARTICLE
      IX.  COMPLIANCE WITH LAW AND REGULATORY APPROVAL

    

    9.1           
      General.  No
      Option shall be exercisable, no shares of Stock shall be issued, no certificates
      for shares of Stock shall be delivered, and no payment shall be made under
      this
      Plan except in compliance with all federal, state and local laws and regulations
      including, without limitation, withholding tax requirements, federal and state
      securities laws and regulations and the rules and regulations of any government
      or regulatory agency or body and in compliance with the rules of all securities
      exchanges or self-regulatory organizations on which the Company’s shares may be
      listed, which the Committee shall, in its discretion, determine to be necessary
      or applicable, in all respects. The Company shall have the right to rely on
      an
      opinion of its counsel as to such compliance.  Any certificate issued
      to evidence shares of Stock for which an Option is exercised or a Stock Award
      is
      granted may bear such legends and statements as the Committee upon advice of
      counsel may deem advisable to assure compliance with federal or state laws
      and
      regulations.

    

    9.2           
      Representations
      by
      Participants.  As a condition to the exercise of an Option or
      issuance of a Stock Award, the Company may require a Participant to represent
      and warrant at the time of any such exercise or grant that the shares are being
      acquired only for investment and without any present intention to sell or
      distribute such shares, if, in the opinion of counsel for the Company, such
      representation is required by any relevant provision of the laws referred to
      in
      Section 9.1.  At the option of the Company, a stop transfer order
      against any shares of Stock may be placed on the official stock books and
      records of the Company, and a legend indicating that the Stock may not be
      pledged, sold or otherwise transferred unless an opinion of counsel was provided
      (concurred in by counsel for the Company) and stating that such transfer is
      not
      in violation of any applicable law or regulation may be stamped on the stock
      certificate in order to assure exemption from registration.  The
      Committee may also require such other action or agreement by the Participants
      as
      may from time to time be necessary to comply with federal or state securities
      laws.  This provision shall not obligate the Company or any Affiliate
      to undertake registration of Options or Stock hereunder.

    

    ARTICLE
      X.  GENERAL PROVISIONS

    

    10.1          Unfunded
      Plan.  The Plan, insofar as it provides for grants, shall be
      unfunded, and the Company shall not be required to segregate any assets that
      may
      at any time be represented by grants under this Plan.  Any liability
      of the Company to any person with respect to any grant under this Plan shall
      be
      based solely upon contractual obligations that may be created
      hereunder.  No such obligation of the Company shall be deemed to be
      secured by any pledge of, or other encumbrance on, any property of the
      Company.

    

    10.2          Rules
      of
      Construction.  Headings are given to the articles and sections
      of this Plan solely as a convenience to facilitate reference.  The
      masculine gender when used herein refers to both masculine and
      feminine.  The reference to any statute, regulation or other provision
      of law shall be construed to refer to any amendment to or successor of such
      provision of law.

    

    10.3          Governing
      Law.  The internal laws of the State of Texas (without regard
      to choice of law) shall apply to all matters arising under this Plan, to the
      extent that federal law does not apply.

    

    10.4          Compliance
      with Section 16
      of the Exchange Act.  Transactions under this Plan are intended
      to comply with all applicable conditions of Rule 16b-3 (or successor provisions)
      promulgated under the Exchange Act.  To the extent any provision of
      this Plan or action by Committee fails to so comply, it shall be deemed null
      and
      void to the extent permitted by law and deemed advisable by the
      Committee.

    

    10.5          Amendment.  The
      Board may amend or terminate this Plan at any time; provided, however, an
      amendment that would have a material adverse effect on the rights of a
      Participant under an outstanding Option or Stock Award is not valid with respect
      thereto without the Participant’s consent; and provided, further, that the
      shareholders of the Company must approve, in general meeting, any amendment
      that
      changes the number of shares in the aggregate which may be issued pursuant
      to
      Options or Stock Awards granted under the Plan. Such amendment must be approved
      coincident with or prior to the date Options or Stock Awards are granted with
      respect to such shares.

     

    10.6          Disputes
      and Dispute
      Resolution.

    

    (a)           
      Any and all claims arising out of or relating to the Plan, or the Committee’s
      administration or interpretation of the Plan with respect to any Participant,
      shall be resolved by binding arbitration which shall be the sole and exclusive
      method of resolving such disputes or claims and shall be in lieu of any trial
      before a court of jury.  The Committee, in offering an option grant
      under this Plan, and a Participant, in accepting any option grant under the
      Plan, expressly waive any and all rights to a trial before a court or jury
      regarding any disputes and claims which arise from or relate to the Plan, and
      any option grant made under the Plan.

    

    (b)           
      Arbitration shall be conducted within Bexar County, Texas before a single
      neutral arbitrator selected jointly by the Committee and the Participant in
      accordance with the rules of the American Arbitration Association ("AAA") rules
      and applicable law then in effect. However, the standard of review to be applied
      by the Arbitrator shall be whether the Committee’s disputed act, omission or
      decision with respect to the Participant was contrary to any Plan provision
      or
      otherwise arbitrary and capricious.

    

    (c)           
      To the extent that any of the provisions of this Section 10.6 or the AAA Rules
      conflicts with applicable law for the arbitration of contract disputes, the
      provisions or procedures required by applicable law shall
      govern.

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