Document:

EX-10.2

 

 

    Exhibit
    10.2

 

    AMENDED
    AND RESTATED WELLSFORD REAL PROPERTIES, INC.

    1998 MANAGEMENT INCENTIVE PLAN

    

    RECITALS

 

    WHEREAS, Wellsford Real Properties, Inc., a Maryland corporation
    (the “Company”), has adopted the Wellsford Real
    Properties, Inc. 1998 Management Incentive Plan (the
    “Plan”);

 

    WHEREAS, the Plan has been adopted to encourage high levels of
    performance by those individuals who are key to the success of
    the Company, to attract new individuals who are highly motivated
    and who will contribute to the success of the Company and to
    encourage such individuals to remain as directors
    and/or
    employees of the Company and its subsidiaries by increasing
    their proprietary interest in the Company’s growth and
    success;

 

    WHEREAS, the Plan authorizes the granting of incentive awards
    through grants of stock options, grants of stock appreciation
    rights, grants of Stock Purchase Awards (hereinafter defined),
    and grants of Restricted Stock Awards (hereinafter defined) to
    those individuals whose judgment, initiative and efforts are
    responsible for the success of the Company;

 

    WHEREAS, the Company reserved the right to amend the Plan
    pursuant to Article 9.8 thereof; and

 

    WHEREAS, the Company desires to amend and restate the Plan in
    certain respects including to permit the awarding of Restricted
    Stock Units (hereinafter defined).

 

    NOW, THEREFORE, the Company hereby amends and restates the Plan
    (the Plan as hereinafter amended, the “Amended Plan”)
    to read as follows:

 

    ARTICLE 1.

    

 

    Purpose of
    the Plan
    

 

    1.1.  Purpose.  The purpose of the
    Amended Plan is to assist the Company in attracting and
    retaining selected individuals to serve as Directors (as
    hereinafter defined), officers and employees of the Company or
    any of its subsidiaries or affiliates who will contribute to the
    Company’s success and to achieve long-term objectives which
    will inure to the benefit of all shareholders of the Company
    through the additional incentive inherent in the ownership of
    the Company’s Common Stock (the “Shares”). Stock
    options granted under the Amended Plan (“Options”)
    will be either “incentive stock options,” intended to
    qualify as such under the provisions of section 422 of the
    Internal Revenue Code of 1986, as from time to time amended (the
    “Code”), or “nonqualified stock options.”
    For purposes of the Amended Plan, the term
    “subsidiary” shall mean “subsidiary
    corporation,” as such term is defined in
    section 424(f) of the Code, and “affiliate” shall
    have the meaning set forth in
    Rule 12b-2
    of the Securities Exchange Act of 1934, as amended (the
    “Exchange Act”). For purposes of the Amended Plan, the
    term “Award” shall include a grant of an Option, stock
    appreciation rights, a Stock Purchase Award, a Restricted Stock
    Award, a Restricted Stock Unit, or any other award made under
    the terms of the Amended Plan.

 

    ARTICLE 2.

    

 

    Shares Subject
    to Awards
    

 

    2.1.  Number of Shares.  Subject to
    the adjustment provisions of Section 9.9 of the Plan, the
    aggregate number of Shares originally authorized for Awards
    under the Plan was up to 2,000,000 Shares (the “Share
    Limitation”). Pursuant to Section 9.9 of the Plan, the
    Share Limitation was adjusted to take into account the reverse
    stock split that occurred on June 9, 2000, and the payment
    of a liquidating distribution that was made on December 14,
    2005. The Share Limitation shall hereafter continue to be
    subject to further adjustment pursuant to the provision of
    Section 10.9 hereof. No Options to purchase fractional
    Shares shall be granted or

    

    1

 

    issued under the Amended Plan. For purposes of this
    Section 2.1, the Shares that shall be counted toward such
    limitation shall include all Shares:

 

			
	 	    (1) 
	
    issued or issuable pursuant to Options that have been or may be
    exercised;

	 
	 	    (2) 
	
    issued or issuable pursuant to Stock Purchase Awards;

	 
	 	    (3) 
	
    issued as, or subject to issuance as a Restricted Stock
    Award; and

	 
	 	    (4) 
	
    issued as, or subject to issuance as a Restricted Stock Unit.

 

    2.2.  Shares Subject to Terminated
    Awards.  The Shares covered by any unexercised
    portions of terminated Options granted under Articles 4
    and 6, Shares forfeited as provided in Section 8.2(a)
    and Shares subject to any Awards which are otherwise surrendered
    by the Participant without receiving any payment or other
    benefit with respect thereto may again be subject to new Awards
    under the Amended Plan. In the event the purchase price of an
    Option is paid in whole or in part through the delivery of
    Shares, the number of Shares issuable in connection with the
    exercise of the Option shall not again be available for the
    grant of Awards under the Amended Plan. Shares subject to
    Options, or portions thereof, which have been surrendered in
    connection with the exercise of share appreciation rights shall
    not again be available for the grant of Awards under the Amended
    Plan.

 

    2.3.  Character of Shares.  Shares
    delivered under the Amended Plan may be authorized and unissued
    Shares or Shares acquired by the Company, or both.

 

    2.4.  Limitations on Grants to Individual
    Participant.  Subject to the adjustment provisions
    of Section 10.9 hereof, the maximum number of Shares with
    respect to all Awards that may be granted under the Plan to any
    employee during any fiscal year is 500,000 Shares (the
    “Grant Limitation”). If an Award is canceled, the
    Shares with respect to such canceled Award, shall continue to be
    counted toward the Grant Limitation for the year granted. An
    Option (or a stock appreciation right) that is repriced during
    any fiscal year is treated as the cancellation of the Option (or
    stock appreciation right) and a grant of a new Option (or stock
    appreciation right) for purposes of the Grant Limitation for
    that fiscal year.

 

    ARTICLE 3.

    

 

    Eligibility
    and Administration
    

 

    3.1.  Awards to Employees and
    Directors.  (a) Participants who receive
    Options under Articles 4 and 6 hereof (including stock
    appreciation rights under Article 5)
    (“Optionees”), Stock Purchase Awards under
    Article 7, Restricted Stock Awards under Article 8, or
    Restricted Stock Units under Article 9 (in either case, a
    “Participant”) shall consist of such key employees and
    Directors (hereinafter defined) of the Company or any of its
    subsidiaries or affiliates as the Committee (hereinafter
    defined) shall select from time to time. The Committee’s
    designation of an Optionee or Participant in any year shall not
    require the Committee (hereinafter defined) to designate such
    person to receive Awards or grants in any other year. The
    designation of an Optionee or Participant to receive Awards or
    grants under one portion of the Amended Plan shall not require
    the Committee (hereinafter defined) to include such Optionee or
    Participant under other portions of the Amended Plan.

 

    (b) No Option which is intended to qualify as an
    “incentive stock option” may be granted to any
    employee or Director (hereinafter defined) who, at the time of
    such grant, owns, directly or indirectly (within the meaning of
    sections 422(b)(6) and 424(d) of the Code), shares
    possessing more than ten percent (10%) of the total combined
    voting power of all classes of shares of the Company or any of
    its subsidiaries or affiliates, unless at the time of such
    grant, (i) the option price is fixed at not less than 110%
    of the Closing Price (as defined below) of the Shares subject to
    such Option, determined on the date of the grant, and
    (ii) the exercise of such Option is prohibited by its terms
    after the expiration of five (5) years from the date such
    Option is granted.

 

    3.2.  Administration.  (a) The
    Amended Plan shall be administered by the compensation committee
    of the board of directors of the Company (such compensation
    committee, the “Committee”, and such board of

    

    2

 

    directors, the “Board”), provided, however, unless
    otherwise determined by the directors of the Company (the
    directors of the Company being herein referred to as the
    “Directors”), each member of the Committee shall be a
    “Non-Employee Director” within the meaning of
    Rule 16b-3
    (or any successor rule) of the Exchange Act and an “outside
    director” within the meaning of
    Section 162(m)(4)(C)(i) of the Code and the regulations
    thereunder. In no event shall the Committee consist of fewer
    than two Directors. The Directors may remove from, add members
    to, or fill vacancies in the Committee.

 

    Any Award to a member of the Committee shall be on terms
    consistent with Awards made to other non-employee Directors who
    are not members of the Committee, except where the Award is
    approved or ratified by the Board (excluding persons who are
    also members of the Committee).

 

    (b) The Committee is authorized, subject to the provisions
    of the Amended Plan, to establish such rules and regulations as
    it may deem appropriate for the conduct of meetings and proper
    administration of the Amended Plan. All actions of the Committee
    shall be taken by majority vote of its members. The Committee is
    also authorized, subject to any limitations of the Amended Plan,
    to make provisions in various Awards pertaining to a
    “change of control” of the Company and to amend or
    modify existing Awards.

 

    (c) Subject to the provisions of the Amended Plan, the
    Committee shall have authority, in its sole discretion, to
    interpret the provisions of the Amended Plan and, subject to the
    requirements of applicable law, including
    Rule 16b-3
    of the Exchange Act, to prescribe, amend, and rescind rules and
    regulations relating to it as it may deem necessary or
    advisable. All decisions made by the Committee pursuant to the
    provisions of the Amended Plan shall be final, conclusive and
    binding on all persons, including the Company, its shareholders,
    Directors and employees, and Amended Plan participants.

 

    ARTICLE 4.

    

 

    Options
    

 

    4.1.  Grant of Options.  The
    Committee shall determine, within the limitations of the Amended
    Plan, the Directors and employees of the Company and its
    subsidiaries and affiliates to whom Options are to be granted
    under the Amended Plan, the number of Shares that may be
    purchased under each such Option and the option price, and shall
    designate such Options at the time of the grant as either
    “incentive stock options” or “nonqualified stock
    options;” provided, however, that Options granted to
    employees of an affiliate (that is not also a subsidiary) or to
    non-employees of the Company may only be “nonqualified
    stock options.”

 

    All Options granted pursuant to this Article 4 and
    Article 6 herein shall be authorized by the Committee and
    shall be evidenced in writing by stock option agreements
    (“Stock Option Agreements”) in such form and
    containing such terms and conditions as the Committee shall
    determine which are not inconsistent with the provisions of the
    Amended Plan, and, with respect to any Stock Option Agreement
    granting Options which are intended to qualify as
    “incentive stock options,” are not inconsistent with
    Section 422 of the Code. Granting of an Option pursuant to
    the Amended Plan shall impose no obligation on the recipient to
    exercise such option. Any individual who is granted an Option
    pursuant to this Article 4 and Article 6 herein may
    hold more than one Option granted pursuant to such Articles at
    the same time and may hold both “incentive stock
    options” and “nonqualified stock options” at the
    same time. To the extent that any Option does not qualify as an
    “incentive stock option” (whether because of its
    provisions, the time or manner of its exercise or otherwise)
    such Option or the portion thereof which does not so qualify
    shall constitute a separate “nonqualified stock
    option.”

 

    4.2.  Option Price.

 

    (a) Subject to Section 3.1(b), the option price per
    each Share purchasable under any “incentive stock
    option” granted pursuant to this Article 4 and any
    “nonqualified stock option” granted pursuant to
    Article 6 herein shall not be less than 100% of the closing
    market price of such Share on the date of the grant of such
    Option or, if the market was closed on the date in question,
    then the closing price on the next trading day immediately
    following the day in question (such closing market price of a
    Share on the date of grant or, if applicable, the next trading
    day, the “Closing Price”). If the Shares are traded on
    more than one market or

    

    3

 

    exchange, then the Closing Price shall be determined by
    reference to the primary market or exchange where the Shares
    trade.

 

    (b) The option price per share of each Share purchasable
    under any “nonqualified stock option” granted pursuant
    to this Article 4 shall be not less than 100% of the
    closing market price on the date of such grant unless the
    Committee determines at the time of grant that a lesser price
    shall be used.

 

    4.3.  Other Provisions.  Options
    granted pursuant to this Article 4 shall be made in
    accordance with the terms and provision of Article 10
    hereof and any other applicable terms and provisions of the
    Amended Plan.

 

    ARTICLE 5.

    

 

    Stock
    Appreciation Rights
    

 

    5.1.  Grant and Exercise.  Stock
    appreciation rights may be granted in conjunction with all or
    part of any Option granted under the Amended Plan provided such
    rights are granted at the time of the grant of such Option. A
    “stock appreciation right” is a right to receive cash
    or Shares, as provided in this Article 5, in lieu of the
    purchase of a Share under a related Option. A share appreciation
    right or applicable portion thereof shall terminate and no
    longer be exercisable upon the termination or exercise of the
    related Option, and a stock appreciation right granted with
    respect to less than the full number of Shares covered by a
    related Option shall not be reduced until, and then only to the
    extent that, the exercise or termination of the related Option
    exceeds the number of Shares not covered by the share
    appreciation right. A stock appreciation right may be exercised
    by the holder thereof (the “Holder”), in accordance
    with Section 5.2 of this Article 5, by giving written
    notice thereof to the Company and surrendering the applicable
    portion of the related Option. Upon giving such notice and
    surrender, the Holder shall be entitled to receive an amount
    determined in the manner prescribed in Section 5.2 of this
    Article 5. Options which have been so surrendered, in whole
    or in part, shall no longer be exercisable to the extent the
    related share appreciation rights have been exercised

 

    5.2.  Terms and Conditions.  Stock
    appreciation rights shall be subject to such terms and
    conditions, not inconsistent with the provisions of the Amended
    Plan, as shall be determined from time to time by the Committee,
    including the following:

 

    (a) Stock appreciation rights shall be exercisable only at
    such time or times and to the extent that the Options to which
    they relate shall be exercisable in accordance with the
    provisions of the Amended Plan.

 

    (b) Upon the exercise of a stock appreciation right, a
    Holder shall be entitled to receive up to, but no more than, an
    amount in cash or whole Shares equal to the excess of the then
    Fair Market Value of one Share over the option price per Share
    specified in the related Option multiplied by the number of
    Shares in respect of which the share appreciation right shall
    have been exercised. The Holder shall specify in his written
    notice of exercise, whether payment shall be made in cash or in
    whole Shares. Each share appreciation right may be exercised
    only at the time and so long as a related Option, if any, would
    be exercisable or as otherwise permitted by applicable law.

 

    (c) Upon the exercise of a stock appreciation right, the
    Option or part thereof to which such share appreciation right is
    related shall be deemed to have been exercised for the purpose
    of the limitation of the number of Shares to be issued under the
    Amended Plan, as set forth in Section 2.1 of the Amended
    Plan.

 

    (d) With respect to stock appreciation rights granted in
    connection with an Option that is intended to be an
    “incentive stock option,” the following shall apply:

 

    (i) No stock appreciation right shall be transferable by a
    Holder otherwise than by will or by the laws of descent and
    distribution, and stock appreciation rights shall be
    exercisable, during the Holder’s lifetime, only by the
    Holder.

    

    4

 

 

    (ii) Stock appreciation rights granted in connection with
    an Option may be exercised only when the Fair Market Value of
    the Shares subject to the Option exceeds the option price at
    which Shares can be acquired pursuant to the Option.

 

    ARTICLE 6.

    

 

    Reload
    Options
    

 

    6.1.  Authorization of Reload
    Options.  Concurrently with the award of any
    Option (such Option hereinafter referred to as the
    “Underlying Option”) to any participant in the Amended
    Plan, the Committee may grant one or more reload options (each,
    a “Reload Option”) to such participant to purchase for
    cash or Shares a number of Shares as specified below. A Reload
    Option shall be exercisable for an amount of Shares equal to
    (i) the number of Shares delivered by the Optionee to the
    Company to exercise the Underlying Option, and (ii) to the
    extent authorized by the Committee, the number of Shares used to
    satisfy any tax withholding requirement incident to the exercise
    of the Underlying Option, subject to the availability of Shares
    under the Amended Plan at the time of such exercise. Any Reload
    Option may provide for the grant, when exercised, of subsequent
    Reload Options to the extent and upon such terms and conditions
    consistent with this Article 6, as the Committee in its
    sole discretion shall specify at or after the time of grant of
    such Reload Option. The grant of a Reload Option will become
    effective upon the exercise of an Underlying Option or Reload
    Option by delivering to the Company Shares in payment of the
    exercise price
    and/or tax
    withholding obligations. Notwithstanding the fact that the
    Underlying Option may be an “incentive stock option,”
    a Reload Option is not intended to qualify as an “incentive
    stock option” under Section 422 of the Code.

 

    6.2.  Reload Option Amendment.  Each
    Share Option Agreement shall state whether the Committee has
    authorized Reload Options with respect to the Underlying Option.
    Upon the exercise of an Underlying Option or other Reload
    Option, the Reload Option will be evidenced by an amendment to
    the underlying Share Option Agreement.

 

    6.3.  Reload Option Price.  The
    option price per Share deliverable upon the exercise of a Reload
    Option shall be the Closing Price of a Share on the date the
    grant of the Reload Option becomes effective.

 

    6.4.  Term and Exercise.  Each Reload
    Option is fully exercisable immediately upon its grant. The term
    of each Reload Option shall be equal to the remaining option
    term of the Underlying Option.

 

    6.5.  Termination of Employment.  No
    additional Reload Options shall be granted to Optionees when
    Options
    and/or
    Reload Options are exercised pursuant to the terms of this
    Amended Plan following termination of the Optionee’s
    employment unless the Committee, in its sole discretion, shall
    determine otherwise.

 

    6.6.  Applicability of Other
    Sections.  Except as otherwise provided in this
    Article 6, the provisions of Article 10 applicable to
    Options shall apply equally to Reload Options.

 

    ARTICLE 7.

    

 

    Stock
    Purchase Awards
    

 

    7.1.  Grant of Stock Purchase
    Award.  The term “Stock Purchase Award”
    means the right to purchase Shares of the Company and to pay for
    such Shares through a loan made by the Company to the
    Participant (a “Purchase Loan”) as set forth in this
    Article 7.

 

    7.2.  Terms of Purchase Loans.

 

    (a) Purchase Loan.  Each Purchase Loan
    shall be evidenced by a promissory note. The term of the
    Purchase Loan shall be for a period of years, as determined by
    the Committee, and the proceeds of the Purchase Loan shall be
    used exclusively by the Participant for purchase of Shares from
    the Company at a purchase price equal to the Fair Market Value
    on the date of the Stock Purchase Award.

 

    (b) Interest on Purchase Loan.  A Purchase
    Loan shall be non-interest bearing or shall bear interest at
    whatever rate the Committee shall determine (but not in excess
    of the maximum rate permissible under applicable law), payable
    in a manner and at such times as the Committee shall determine.
    Those terms and

    

    5

 

    provisions as the Committee shall determine shall be
    incorporated into the promissory note evidencing the Purchase
    Loan.

 

    (c) Forgiveness of Purchase Loan.  Subject
    to Section 7.4 hereof, the Company may forgive the
    repayment of up to 100% of the principal amount of the Purchase
    Loan, subject to such terms and conditions as the Committee
    shall determine and set forth in the promissory note evidencing
    the Purchase Loan. A Participant’s Purchase Loan can be
    prepaid at any time, and from time to time, without penalty.

 

    7.3.  Security for Loans.

 

    (a) Stock Power and Pledge.  Purchase
    Loans granted to Participants shall be secured by a pledge of
    the Shares acquired pursuant to the Stock Purchase Award. Such
    pledge shall be evidenced by a pledge agreement (the
    “Pledge Agreement”) containing such terms and
    conditions as the Committee shall determine. The share
    certificates for the Shares purchased by a Participant pursuant
    to a Stock Purchase Award shall be issued in the
    Participant’s name, but shall be held by the Company as
    security for repayment of the Participant’s Purchase Loan
    together with a stock power executed in blank by the Participant
    (the execution and delivery of which by the Participant shall be
    a condition to the issuance of the Stock Purchase Award). The
    Participant shall be entitled to exercise all rights applicable
    to such Shares, including, but not limited to, the right to vote
    such Shares and the right to receive dividends and other
    distributions made with respect to such Shares. When the
    Purchase Loan and any accrued but unpaid interest thereon has
    been repaid or otherwise satisfied in full, the Company shall
    deliver to the Participant the share certificates for the Shares
    purchased by a Participant under the Stock Purchase Award.
    Purchase Loans shall be recourse or non-recourse with respect to
    a Participant, as determined by the Committee.

 

    (b) Release and Delivery of Stock Certificates During
    the Term of the Purchase Loan.  The Company shall
    release and deliver to each Participant certificates for Shares
    purchased by a Participant pursuant to a Stock Purchase Award,
    in such amounts and on such terms and conditions as the
    Committee shall determine, which shall be set forth in the
    Pledge Agreement.

 

    (c) Release and Delivery of Stock Certificates Upon
    Repayment of the Purchase Loan.  The Company shall
    release and deliver to each Participant certificates for the
    Shares purchased by the Participant under the Stock Purchase
    Award and then held by the Company, provided the Participant has
    paid or otherwise satisfied in full the balance of the Purchase
    Loan and any accrued but unpaid interest thereon. In the event
    the balance of the Purchase Loan is not repaid, forgiven or
    otherwise satisfied within ninety (90) days after
    (i) the date repayment of the Purchase Loan is due (whether
    in accordance with its term, by reason of acceleration or
    otherwise), or (ii) such longer time as the Committee, in
    its discretion, shall provide for repayment or satisfaction, the
    Company shall retain those Shares then held by the Company in
    accordance with the Pledge Agreement.

 

    (d) Recourse Purchase
    Loans.  Notwithstanding Sections 7.3(a),
    (b) and (c) above, in the case of a recourse Purchase
    Loan, the Committee may make a Purchase Loan on such terms as it
    determines, including without limitation, not requiring a pledge
    of the acquired Shares.

 

    7.4.  Termination of Employment.

 

    (a) Termination of Employment by Death, Disability or by
    the Company Without Cause; Change of Control.  In
    the event of a Participant’s termination of employment by
    reason of death, “disability” or by the Company
    without “cause”, or in the event of a “change of
    control”, the Committee shall have the right (but shall not
    be required) to forgive the remaining unpaid amount (principal
    and interest) of the Purchase Loan in whole or in part as of the
    date of such occurrence. “Change of Control”,
    “disability” and “cause” shall have the
    respective meanings as set forth in the promissory note
    evidencing the Purchase Loan.

 

    (b) Termination of Employment.  Subject to
    Section 7.4(a) above, in the event of a Participant’s
    termination of employment for any reason, the Participant shall
    repay to the Company the entire balance of the Purchase Loan and
    any accrued but unpaid interest thereon, which amounts shall
    become immediately due and payable, provided, however, that if
    the Participant voluntarily resigns as an employee in good
    standing,

    

    6

 

    such amounts will become due and payable on the ninetieth (90th)
    day after the effective date of such resignation.

 

    7.5.  Restrictions on Transfer.  No
    Stock Purchase Award or Shares purchased through such an Award
    and pledged to the Company as collateral security for the
    Participant’s Purchase Loan (and accrued by unpaid interest
    thereon) may be otherwise pledged, sold, assigned or transferred
    (other than by will or by the laws of descent and distribution).

 

    ARTICLE 8.

    

 

    Restricted
    Stock Awards
    

 

    8.1.  Restricted Stock
    Awards.  (a) A grant of Shares made pursuant
    to this Article 8 is referred to as a “Restricted
    Stock Award.” The Committee may grant to any Participant an
    amount of Shares in such manner, and subject to such terms and
    conditions relating to vesting, forfeitability and restrictions
    on delivery and transfer (whether based on performance
    standards, periods of service or otherwise) as the Committee
    shall establish (such Shares, “Restricted Shares”).
    The terms of any Restricted Stock Award granted under this
    Amended Plan shall be set forth in a written agreement (a
    “Restricted Stock Agreement”) which shall contain
    provisions determined by the Committee and not inconsistent with
    this Amended Plan. The provisions of Restricted Stock Awards
    need not be the same for each Participant receiving such Awards.

 

    (b) Issuance of Restricted Shares.  As
    soon as practicable after the date of grant of a Restricted
    Stock Award by the Committee, the Company shall cause to be
    transferred on the books of the Company, Shares registered in
    the name of the Company, as nominee for the Participant,
    evidencing the Restricted Shares covered by the Award, but
    subject to forfeiture to the Company retroactive to the date of
    grant, if a Restricted Stock Agreement delivered to the
    Participant by the Company with respect to the Restricted Shares
    covered by the Award is not duly executed by the Participant and
    timely returned to the Company. All Restricted Shares covered by
    Awards under this Article 8 shall be subject to the
    restrictions, terms and conditions contained in the Amended Plan
    and the Restricted Stock Agreement entered into by and between
    the Company and the Participant. Until the lapse or release of
    all restrictions applicable to an Award of Restricted Shares,
    the share certificates representing such Restricted Shares shall
    be held in custody by the Company or its designee.

 

    (c) Shareholder Rights.  Beginning on the
    date of grant of the Restricted Stock Award and subject to
    execution of the Restricted Stock Agreement as provided in
    Sections 8.1(a) and (b), the Participant shall become a
    shareholder of the Company with respect to all Shares subject to
    the Restricted Stock Agreement and shall have all of the rights
    of a shareholder, including, but not limited to, the right to
    vote such Shares and the right to receive distributions made
    with respect to such Shares; provided, however, that any Shares
    distributed as a dividend or otherwise with respect to any
    Restricted Shares as to which the restrictions have not yet
    lapsed shall be subject to the same restrictions as such
    Restricted Shares and shall be represented by book entry and
    held as prescribed in Section 8.1(b).

 

    (d) Restriction on Transferability.  None
    of the Restricted Shares may be assigned or transferred (other
    than by will or the laws of descent and distribution), pledged
    or sold prior to lapse or release of the restrictions applicable
    thereto.

 

    (e) Delivery of Shares Upon Release of
    Restrictions.  Upon expiration or earlier
    termination of the forfeiture period without a forfeiture and
    the satisfaction of or release from any other conditions
    prescribed by the Committee, the restrictions applicable to the
    Restricted Shares shall lapse. As promptly as administratively
    feasible thereafter, subject to the requirements of
    Section 11.1, the Company shall deliver to the Participant
    or, in case of the Participant’s death, to the
    Participant’s beneficiary, one or more stock certificates
    for the appropriate number of Shares, free of all such
    restrictions, except for any restrictions that may be imposed by
    law.

 

    8.2.  Terms of Restricted Shares.

 

    (a) Forfeiture of Restricted
    Shares.  Subject to Section 8.2(b), all
    Restricted Shares shall be forfeited and returned to the Company
    and all rights of the Participant with respect to such
    Restricted Shares shall terminate

    

    7

 

    unless the Participant continues in the service of the Company
    as an employee until the expiration of the forfeiture period for
    such Restricted Shares and satisfies any and all other
    conditions set forth in the Restricted Stock Agreement. The
    Committee in its sole discretion, shall determine the forfeiture
    period (which may, but need not, lapse in installments) and any
    other terms and conditions applicable with respect to any
    Restricted Stock Award.

 

    (b) Waiver of Forfeiture
    Period.  Notwithstanding anything contained in
    this Article 8 to the contrary, the Committee may, in its
    sole discretion, waive the forfeiture period and any other
    conditions set forth in any Restricted Stock Agreement under
    appropriate circumstances (including the death, disability or
    retirement of the Participant or a material change in
    circumstances arising after the date of an Award) and subject to
    such terms and conditions (including forfeiture of a
    proportionate number of the Restricted Shares) as the Committee
    shall deem appropriate.

 

    ARTICLE 9

    

 

    Restricted
    Stock Units
    

 

    9.1.  Award of Restricted Stock
    Units.  Subject to the terms of this
    Article 9, a “Restricted Stock Unit” entitles a
    Participant to receive cash or one Share for each Restricted
    Stock Unit at the end of the period to which the Award relates
    (“Restricted Period”) to the extent provided by the
    Award. The Committee may Award to any Participant an amount of
    Restricted Stock Units in such manner, and subject to such terms
    and conditions relating to vesting, forfeitability, restrictions
    on delivery and transfer (whether based on performance
    standards, periods of service or otherwise), and such other
    provisions as the Committee shall establish. The terms of an
    Award of a Restricted Stock Unit under this Amended Plan shall
    be set forth in a written agreement (a “Restricted Stock
    Unit Agreement”) which shall contain the Restricted
    Period(s), the number of Restricted Stock Units granted, and
    such other provisions determined by the Committee and not
    inconsistent with this Amended Plan. The provisions of
    Restricted Stock Units need not be the same for each Participant
    receiving such Awards.

 

    9.2  Termination of
    Employment.  Except to the extent the Committee
    specifies otherwise, any Restricted Stock Unit which is not
    earned and vested by the end of a Restricted Period shall be
    forfeited. If a Participant’s date of termination occurs
    prior to the end of a Restricted Period, the Committee, in its
    sole discretion, may determine that the Participant will be
    entitled to settlement of all or any portion of the Restricted
    Stock Units as to which he or she would otherwise be eligible,
    and may accelerate the determination of the value and settlement
    of such Restricted Stock Units or make such other adjustments as
    the Committee, in its sole discretion, deems desirable. With
    respect to any settlement contemplated by the foregoing
    sentence, such settlement shall be made in a manner that
    complies with the requirements of Section 409A of the Code
    (unless otherwise agreed to by the Committee and the
    Participant).

 

    9.3  Restricted Stock Units.  Except
    to the extent this Amended Plan or the Committee specifies
    otherwise, Restricted Stock Units represent an unfunded and
    unsecured obligation of the Company. During any period in which
    Restricted Stock Units are outstanding and have not been settled
    in Shares, the Participant shall not have the rights of a
    stockholder, but, in the discretion of the Committee, may be
    granted the right to receive a payment from the Company in lieu
    of a dividend as set forth in the Restricted Stock Unit
    Agreement in an amount equal to any cash dividends that might be
    paid during the Restricted Period. With respect to any grant
    contemplated by the foregoing sentence, no such grant shall be
    made to a Participant unless it complies with the requirements
    of Section 409A of the Code (unless otherwise agreed to by
    the Committee and the Participant). Until a Restricted Stock
    Unit is settled, the number of Shares represented by a
    Restricted Stock Unit shall be subject to adjustment pursuant to
    Section 10.9.

 

    ARTICLE 10

    

 

    Generally
    Applicable Provisions
    

 

    10.1  Option Period.  Subject to
    Section 3.1(b), the period for which an Option is
    exercisable shall not exceed ten (10) years from the date
    such Option is granted, provided, however, in the case of an
    Option that is

    

    8

 

    not intended to be an “incentive stock option,” the
    Committee may prescribe a period in excess of ten years. After
    the Option is granted, the option period may not be reduced.

 

    10.2  Fair Market Value.  If the
    Shares are listed or admitted to trading on a securities
    exchange registered under the Exchange Act, the “Fair
    Market Value” of a Share as of a specified date shall mean
    the average of the high and low price of the shares for the day
    immediately preceding the date as of which Fair Market Value is
    being determined (or if there was no reported sale on such date,
    on the last preceding date on which any reported sale occurred)
    reported on the principal securities exchange on which the
    Shares are listed or admitted to trading. If the Shares are not
    listed or admitted to trading on any such exchange but are
    traded in the
    over-the-counter
    market or are traded on any similar system then in use, the Fair
    Market Value of a Share shall be the average of the high and low
    sales price for the day immediately preceding the date as of
    which the Fair Market Value is being determined (or if there was
    no reported sale on such date, on the last preceding date on
    which any reported sale occurred) reported on such system. If
    the Shares are not listed or admitted to trading on any such
    exchange and are not traded in the
    over-the-counter
    market or traded on any similar system then in use, but are
    quoted on the National Association of Securities Dealers, Inc.
    Automated Quotations System or any similar system then in use,
    the Fair Market Value of a Share shall be the average of the
    closing high bid and low asked quotations on such system for the
    Shares on the date in question. If the Shares are not publicly
    traded, Fair Market Value shall be determined by the Committee
    in its sole discretion using appropriate criteria. An Option
    shall be considered granted on the date the Committee acts to
    grant the Option or such later date as the Committee shall
    specify.

 

    10.3  Exercise of Options.  Options
    granted under the Amended Plan shall be exercised by the
    Optionee thereof (or by his or her executors, administrators,
    guardian or legal representative, or by a Permitted Assignee, as
    provided in Sections 10.6 and 10.7 hereof) as to all or
    part of the Shares covered thereby, by the giving of written
    notice of exercise to the Company, specifying the number of
    Shares to be purchased, accompanied by payment of the full
    purchase price for the Shares being purchased. Full payment of
    such purchase price shall be made within five (5) business
    days following the date of exercise and shall be made
    (i) in cash or by certified check or bank check,
    (ii) with the consent of the Committee, by delivery of a
    promissory note in favor of the Company upon such terms and
    conditions as determined by the Committee, (iii) with the
    consent of Committee, by tendering previously acquired Shares
    (valued at its Fair Market Value, as determined by the Committee
    as of the date of tender), or (iv) with the consent of the
    Committee, any combination of (i), (ii) and (iii). In
    connection with a tender of previously acquired Shares pursuant
    to clause (iii) above, the Committee, in its sole
    discretion, may permit the Optionee to constructively exchange
    Shares already owned by the Optionee in lieu of actually
    tendering such Shares to the Company, provided that adequate
    documentation concerning the ownership of the Shares to be
    constructively tendered is furnished in form satisfactory to the
    Committee. The notice of exercise, accompanied by such payment,
    shall be delivered to the Company at its principal business
    office or such other office as the Committee may from time to
    time direct, and shall be in such form, containing such further
    provisions consistent with the provisions of the Amended Plan,
    as the Committee may from time to time prescribe. In no event
    may any Option granted hereunder be exercised for a fraction of
    a Share. The Company shall effect the transfer of Shares
    purchased pursuant to an Option as soon as practicable, and,
    within a reasonable time thereafter, such transfer shall be
    evidenced on the books of the Company. No person exercising an
    Option shall have any of the rights of a holder of Shares
    subject to an Option until certificates for such Shares shall
    have been issued following the exercise of such Option. No
    adjustment shall be made for cash dividends or other rights for
    which the record date is prior to the date of such issuance. To
    the extent permitted in a Stock Option Agreement in effect prior
    to the adoption of the Amended Plan or pursuant to a stock
    appreciation right an Optionee may receive a net cash payment
    (in cancellation of the Option or stock appreciation right),
    subject to the terms and conditions set forth in such Stock
    Option Agreement or stock appreciation right.

 

    10.4  Transferability.  No Option
    that is intended to qualify as an “incentive stock
    option” under Section 422 of the Code shall be
    assignable or transferable by the Optionee, other than by will
    or the laws of descent and distribution, and such Option may be
    exercised during the life of the Optionee only by the Optionee
    or his guardian or legal representative. “Nonqualified
    stock options” and any stock appreciation rights granted in
    tandem therewith are transferable (together and not separately)
    by the Optionee or Holder, as

    

    9

 

    the case may be, to any one or more of the following persons
    (each, a “Permitted Assignee”): (i) the spouse,
    parent, issue, spouse of issue, or issue of spouse
    (“issue” shall include all descendants whether natural
    or adopted) of such Optionee or Holder, as the case may be;
    (ii) a trust for the benefit of one or more of those
    persons described in clause (i) above or for the benefit of
    such Optionee or Holder, as the case may be, or for the benefit
    of any such persons and such Optionee or Holder, as the case may
    be; or (iii) an entity in which the Optionee or Holder or
    any Permitted Assignee thereof is a beneficial owner; provided,
    however, that such Permitted Assignee shall be bound by all of
    the terms and conditions of this Amended Plan and shall execute
    an agreement satisfactory to the Company evidencing such
    obligation; provided further, however that any transfer by an
    Optionee or Holder who is not then a Director of the Company to
    any Permitted Assignee shall be subject to the prior consent of
    the Committee; and provided further, however, that such Optionee
    or Holder shall remain bound by the terms and conditions of this
    Amended Plan. The Company shall cooperate with an
    Optionee’s Permitted Assignee and the Company’s
    transfer agent in effectuating any transfer permitted pursuant
    to this Section 10.4.

 

    10.5  Termination of Employment.  In
    the event of the termination of employment of an Optionee or the
    separation from service of a Director (who is an Optionee) for
    any reason (other than death or disability as provided below),
    any Option(s) held by such Optionee (or its Permitted Assignee)
    under this Amended Plan and not previously exercised or expired
    shall be deemed canceled and terminated on the day of such
    termination or separation, unless the Committee decides, in its
    sole discretion, to extend the term of the Option for a period
    not to exceed three months after the date of such termination or
    separation, provided, however, that in no instance may the term
    of the Option, as so extended, exceed the maximum term set forth
    in Section 3.1(b)(ii) or 10.1 above. Notwithstanding the
    foregoing, in the event of the separation from service of a
    non-employee Director (who is an Optionee) by reason of death,
    disability or under conditions satisfactory to both the Director
    and the Company, any nonqualified stock options held by such
    Director (or its Permitted Assignee) under the Amended Plan and
    not previously exercised or expired shall be exercisable for a
    period not to exceed five (5) years after the date of such
    separation, provided, however, that in no instance may the term
    of the Option, as so extended, exceed the maximum term set forth
    in Sections 3.1(b)(ii) or 10.1 above.

 

    10.6  Death.  In the event an
    Optionee (other than a non-employee Director) dies while
    employed by the Company or any of its subsidiaries or affiliates
    any Option(s) held by such Optionee (or its Permitted Assignee)
    and not previously expired or exercised shall, to the extent
    exercisable on the date of death, be exercisable by the estate
    of such Optionee or by any person who acquired such Option by
    bequest or inheritance, or by the Permitted Assignee at any time
    within one year after the death of the Optionee, unless earlier
    terminated pursuant to its terms, provided, however, that if the
    term of such Option would expire by its terms within six months
    after the Optionee’s death, the term of such Option shall
    be extended until six months after the Optionee’s death,
    provided further, however, that in no instance may the term of
    the Option, as so extended, exceed the maximum term set forth in
    Section 3.1(b)(ii) or 10.1 above.

 

    10.7  Disability.  In the event of
    the termination of employment of an Optionee (other than a
    non-employee Director) due to total disability, the Optionee, or
    his guardian or legal representative, or a Permitted Assignee
    shall have the unqualified right to exercise any Option(s) which
    have not been previously exercised or expired and which the
    Optionee was eligible to exercise as of the first date of total
    disability (as determined by the Committee), at any time within
    one (1) year after such termination, unless earlier
    terminated pursuant to its terms; provided, however, that if the
    term of such Option would expire by its terms within six months
    after such termination, the term of such Option shall be
    extended until six months after such termination; provided
    further, however, that in no instance may the term of the
    Option, as so extended, exceed the maximum term set forth in
    Section 3.1(b)(ii) or 10.1 above. The term “total
    disability” shall, for purposes of this Amended Plan, be
    defined in the same manner as such term is defined in
    Section 22(e)(3) of the Code.

 

    10.8  Amendment and Modification of the Amended
    Plan.  The Committee may, from time to time,
    alter, amend, suspend or terminate the Amended Plan as it shall
    deem advisable, subject to any requirement for shareholder
    approval imposed by applicable law or any rule of any stock
    exchange or quotation system on which Shares are listed or
    quoted; provided that such Committee may not amend the Amended
    Plan, without the approval of the Company’s shareholders,
    to increase the number of Shares that may be the subject of
    Options under the Amended Plan (except for adjustments pursuant
    to Section 10.9 hereof). In addition, no

    

    10

 

    amendments to, or termination of, the Amended Plan shall in any
    way impair the rights of an Optionee or a Participant (or a
    Permitted Assignee thereof) under any Award previously granted
    without such Optionee’s or Participant’s consent.

 

    10.9  Adjustments.  In the event that
    the Committee shall determine that any dividend, or other
    similar distribution (whether in the form of cash, Shares, other
    securities, or other property), recapitalization, stock split,
    reverse stock split, reorganization, merger, consolidation,
    split-up,
    spin-off, combination, repurchase, or exchange of Shares or
    other securities, the issuance of warrants or other rights to
    purchase Shares or other securities, or other similar corporate
    transaction or event affects the Shares with respect to which
    Awards have been or may be issued under the Amended Plan, such
    that an adjustment is determined by the Committee to be
    appropriate in order to prevent dilution or enlargement of the
    benefits or potential benefits intended to be made available
    under the Amended Plan, then the Committee shall, in such manner
    as the Committee deems equitable, adjust any or all of
    (i) the number and type of Shares that thereafter may be
    made the subject of Awards, (ii) the number and type of
    Shares subject to outstanding Awards, and (iii) the grant
    or exercise price with respect to any Award, or, if deemed
    appropriate, make provision for a cash payment to the holder of
    any outstanding Award; provided, in each case, that with respect
    to “incentive stock options,” no such adjustment shall
    be authorized to the extent that such adjustment would cause
    such options to violate Section 422(b) of the Code or any
    successor provision (unless otherwise agreed by the Committee
    and the holder of such option); and provided further, that the
    number of Shares subject to any Award denominated in Shares
    shall always be a whole number. In the event of any
    reorganization, merger, consolidation,
    split-up,
    spin-off, or other business combination involving the Company
    (collectively, a “Reorganization”), the Committee or
    the Board may cause any Award outstanding as of the effective
    date of the Reorganization to be canceled in consideration of a
    cash payment or alternate Award made to the holder of such
    canceled Award equal in value to the fair market value of such
    canceled Award. The determination of fair market value shall be
    made by the Committee or the Board, as the case may be, in their
    sole discretion. With respect to each adjustment contemplated by
    this Section 10.9, no such adjustment shall be authorized
    to the extent that such adjustment would cause an Award to
    violate the provisions of Section 409A of the Code (unless
    otherwise agreed by the Committee and the holder of such Award).

 

    ARTICLE 11

    

 

    Miscellaneous
    

 

    11.1  Tax Withholding.  All payments
    or distributions made pursuant to the Amended Plan to an
    Optionee or Participant (or a Permitted Assignee thereof) shall
    be net of any applicable federal, state and local withholding
    taxes arising as a result of the grant of any Award, exercise of
    an Option or stock appreciation rights or any other event
    occurring pursuant to this Amended Plan. The Company shall have
    the right to withhold from such Optionee or Participant (or a
    Permitted Assignee thereof) such withholding taxes as may be
    required by law, or to otherwise require the Optionee or
    Participant (or a Permitted Assignee thereof) to pay such
    withholding taxes. If the Optionee or Participant (or a
    Permitted Assignee thereof) shall fail to make such tax payments
    as are required, the Company or its subsidiaries or affiliates
    shall, to the extent permitted by law, have the right to deduct
    any such taxes from any payment of any kind otherwise due to
    such Optionee or Participant or to take such other action as may
    be necessary to satisfy such withholding obligations. In
    satisfaction of the requirement to pay withholding taxes, the
    Optionee or Participant (or Permitted Assignee) may make a
    written election (the “Tax Election”), which may
    be accepted or rejected in the discretion of the Committee, to
    have withheld a portion of the Shares then issuable to the
    Optionee or Participant (or Permitted Assignee) pursuant to the
    Amended Plan, having an aggregate Fair Market Value equal to the
    withholding taxes.

 

    11.2  Right of Discharge
    Reserved.  Nothing in the Amended Plan nor the
    grant of an Award hereunder shall confer upon any employee,
    Director or other individual the right to continue in the
    employment or service of the Company or any subsidiary or
    affiliate of the Company or affect any right that the Company or
    any subsidiary or affiliate of the Company may have to terminate
    the employment or service of (or to demote or to exclude from
    future Options under the Amended Plan) any such employee,
    Director or other individual at any time for any reason. Except
    as specifically provided by the Committee, the Company shall not
    be liable

    

    11

 

    for the loss of existing or potential profit from an Award
    granted in the event of termination of an employment or other
    relationship even if the termination is in violation of an
    obligation of the Company or any subsidiary or affiliate of the
    Company to the employee or Director.

 

    11.3  Nature of Payments.  All Awards
    made pursuant to the Amended Plan are in consideration of
    services performed for the Company or any subsidiary or
    affiliate of the Company. Any income or gain realized pursuant
    to Awards under the Amended Plan and any share appreciation
    rights constitutes a special incentive payment to the Optionee,
    Participant or Holder and shall not be taken into account, to
    the extent permissible under applicable law, as compensation for
    purposes of any of the employee benefit plans of the Company or
    any subsidiary or affiliate of the Company except as may be
    determined by the Committee or by the Directors or directors of
    the applicable subsidiary or affiliate of the Company.

 

    11.4  Severability.  If any provision
    of the Amended Plan shall be held unlawful or otherwise invalid
    or unenforceable in whole or in part, such unlawfulness,
    invalidity or unenforceability shall not affect any other
    provision of the Amended Plan or part thereof, each of which
    remain in full force and effect. If the making of any payment or
    the provision of any other benefit required under the Amended
    Plan shall be held unlawful or otherwise invalid or
    unenforceable, such unlawfulness, invalidity or unenforceability
    shall not prevent any other payment or benefit from being made
    or provided under the Amended Plan, and if the making of any
    payment in full or the provision of any other benefit required
    under the Amended Plan in full would be unlawful or otherwise
    invalid or unenforceable, then such unlawfulness, invalidity or
    unenforceability shall not prevent such payment or benefit from
    being made or provided in part, to the extent that it would not
    be unlawful, invalid or unenforceable, and the maximum payment
    or benefit that would not be unlawful, invalid or unenforceable
    shall be made or provided under the Amended Plan.

 

    11.4  Gender and Number.  In order to
    shorten and to improve the understandability of the Amended Plan
    document by eliminating the repeated usage of such phrases as
    “his or her” and any masculine terminology herein
    shall also include the feminine, and the definition of any term
    herein in the singular shall also include the plural except when
    otherwise indicated by the context.

 

    11.5  Governing Law.  The Amended
    Plan and all determinations made and actions taken thereunder,
    to the extent not otherwise governed by the Code or the laws of
    the United States, shall be governed by the laws of the State of
    New York and construed accordingly.

 

    11.6  Termination of Amended
    Plan.  The Amended Plan shall be effective on the
    date of the approval of the Amended Plan by the holders of a
    majority of the shares entitled to vote thereon, provided such
    approval is obtained within 12 months after the date of
    adoption of the Amended Plan by the Board. Awards may be granted
    under the Amended Plan at any time and from time to time on or
    prior to March 10, 2008, on which date the Amended Plan
    will expire except as to Awards and related share appreciation
    rights then outstanding under the Amended Plan. Such outstanding
    Awards and stock appreciation rights shall remain in effect
    until they have been exercised or terminated, or have expired.

 

    11.7  Captions.  The captions in this
    Amended Plan are for convenience of reference only, and are not
    intended to narrow, limit or affect the substance or
    interpretation of the provisions contained herein.

    

    12EX-4.1

 

EXHIBIT 4.1

	STOCK CERTIFICATE

	CUSIP NO: 42327L 10 1

	 	 	 
	AMERICAN BANK NOTE COMPANY

	 	PRODUCTION COORDINATOR: MIKE PETERS 931-490-1714
	711 ARMSTRONG LANE

	 	PROOF OF MARCH 23, 2007
	COLUMBIA, TENNESSEE 38401

	 	HELIOS & MATHESON NORTH AMERICA INC.
	(931) 388-3003

	 	TSB 26575 FC
	SALES: R. JOHNS 516-731-2885

	 	Operator :      Ron  
	/ ETHER 7 / LIVE JOBS / H / HELIOS 26575 FC

	 	New

     PLEASE INITIAL THE APPROPRIATE SELECTION FOR THIS PROOF:                     OK AS IS                     OK WITH CHANGES                    MAKE CHANGES
AND SEND ANOTHER PROOF

Colors Selected for Printing: LOGO IS OF LOW RESOLUTION AND NOT SUITABLE FOR
PRINTING. Intaglio prints in SC-7 Dark Blue.

COLOR: This proof was printed from a digital file or artwork on a graphics quality, color laser
printer. It is a good representation of the color as it will appear on the final product. However,
II is not an exact color rendition, and the final printed product may
appear slightly different
from the proof due to the difference between the dyes and printing Ink.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]