Document:

EX-10.2

Exhibit 10.2

LANCE, INC.

2009 Three-Year Performance Incentive Plan for Officers and Key Managers

	 	 	 
	Purposes and
Introduction

	 	The 2009 Three-Year Performance Incentive Plan for Officers and Key Managers
provides for Stock Options, Restricted Stock and Performance Awards under the
Lance, Inc. 2007 Key Employee Incentive Plan (the “Incentive Plan”). Except as
otherwise expressly defined herein, capitalized terms shall be as defined in the
Incentive Plan.
	 
	 	 
	 

	 	The primary purposes of the 2009 Three-Year Performance Incentive Plan for Officers
and Key Managers (the “2009 Plan”) are to:
	 
	 	 
	 

	 	•     Align officers’ and managers’ interests with those of stockholders by
linking a substantial portion of compensation to the price of the Company’s Common
Stock and to the Company’s financial performance based on the performance measures
specified below.

	 
	 	 
	 

	 	•     Provide a way to attract and retain key executives and managers who are
critical to Lance’s future success.

	 
	 	 
	 

	 	•     Provide competitive total compensation for executives and managers
commensurate with Company performance.

	 
	 	 
	 

	 	To achieve the maximum motivational impact, the Plan and the awards opportunities
will be communicated to participants as soon as practical after the 2009 Plan is
approved by the Compensation Committee of the Board of Directors.
	 
	 	 
	 

	 	Each officer will be assigned a Target Incentive based on market and peer group data
and each other participant will be assigned a Target Incentive, stated as a percent
of base salary. The Chief Executive Officer is assigned a Target Incentive based on
his Employment Agreement. Concurrently with the approval of the 2009 Plan, 35% of
the Target Incentive will be awarded in the form of Nonqualified Stock Options and
30% will be awarded in the form of Restricted Stock. The final 35% of the Target
Incentive will be in the form of a Performance Award to be settled in shares of
Common Stock (with a portion as Restricted Stock) after the completion of the 2009
and 2010 fiscal years (the “Performance Period”), based on the attainment of
predetermined goals.

 

 

	 	 	 
	 

	 	For the 2009 Plan, participants will be eligible to earn the Performance Award based
on the performance measures listed on Exhibit A-1 hereto, excluding acquisitions and
special items, and defined as follows:
	 
	 	 
	 

	 	1. Net Sales is defined as the average of sales and other operating revenue, net of
returns, allowances, discounts and other sales deduction items for the 2009 and 2010
fiscal years, as audited and reported in the Company’s Forms 10-K for the 2009 and
2010 fiscal years.
	 
	 	 
	 

	 	2. Corporate Earnings Per Share (“Corporate EPS”) is defined as the average of the
fully diluted earnings per share of the Company for the 2009 and 2010 fiscal years,
as audited and reported in the Company’s Forms 10-K for the 2009 and 2010 fiscal
years.
	 
	 	 
	 

	 	3. Return on Capital Employed (“ROCE”) is defined as the average of the ROCE for
the 2009 and 2010 fiscal years, as audited and reported in the Company’s Forms 10-K
for the 2009 and 2010 fiscal years, calculated as follows:

	 	 	 	 	 
	 

	 	 Operating Income x (1 - Tax Rate)
 

Average Equity + Average Net Debt
	 	 

	 	 	 
	 

	 	Operating Income shall be the Company’s actual earnings before interest and taxes
and excluding other income and expense.
	 
	 	 
	 

	 	Tax Rate for ROCE shall be the Company’s actual total effective income tax rate.
	 
	 	 
	 

	 	Average Net Debt shall be the Company’s average debt less average cash.
	 
	 	 
	 

	 	Average amounts for ROCE shall be calculated on a 12-month basis.
	 
	 	 
	 

	 	Base salary shall be the annual rate of base compensation for the 2009 fiscal year
which is in effect on February 23, 2009; provided that for any award intended to
satisfy the Performance-Based Exception, base salary shall be the annual rate of
base compensation for the fiscal year which is set no later than March 31 of such
fiscal year.

2

 

	 	 	 
	Eligibility and
Participation

	 	Eligibility in the Plan is limited to Executive Officers and managers in Salary
Grade 21 and above who are key to Lance’s success.
The Compensation Committee will
review and approve participants nominated by the President and Chief Executive
Officer. An employee hired or promoted into an eligible position during the
Performance Period will not participate in the 2009 Plan. Participation in the 2009
Plan does not guarantee participation in any subsequent long-term incentive plans
but will be reevaluated and determined on an annual basis.
	 
	 	 
	 

	 	Attachment A-2 and Attachment A-3 include the list of 2009 Plan participants
approved by the Compensation Committee on February 23, 2009.
	 
	 	 
	Target Incentives and
Performance Measures

	 	Each participant will be assigned a Target Incentive as specified above.
Participants will be assigned to a Performance Tier by Salary Grade.

	 	 	 	 	 	 
		Performance Tier	 	Performance Tier Description
	 	 	1	 	 	Officer

	 	 	2	 	 	Non-Officer Vice President

	 	 	 
	 

	 	For the Performance Awards, the 2009-2010 financial performance measures and goals
are on Exhibit A-1 attached hereto. The related payout percentage is shown below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold	 	Target	 	Maximum	 
	Award Level Funded
	 	 	50	%	 	 	100	%	 	 	250	%	 

	 	 	 
	 

	 	Percent of payout will be determined on a straight line basis between Threshold and
Target and between Target and Maximum. There will be no payouts unless the
Threshold performance measure is reached.
	 
	 	 
	 

	 	The performance measures will be communicated to each participant as soon as
practicable after it has been established. Final Performance Awards will be
calculated after the Compensation Committee has reviewed the Company’s audited
financial statements for 2009 and 2010 and determined the performance level
achieved.
	 
	 	 
	 

	 	The following definitions for the terms Maximum, Target and Threshold should help
set the goals for the Performance Period, as well as evaluate the payouts:
	 
	 	 
	 

	 	•     Maximum: Excellent; deserves payout above Target

	 
	 	 
	 

	 	•     Target: Normal or expected performance; deserves Target payout

3

 

	 	 	 
	 

	 	•     Threshold: Lowest level of performance deserving a payout

	 
	 	 
	 

	 	Attachment A-2 and Attachment A-3 list the Target Incentives for each participant
for the 2009 Plan as determined by the Compensation Committee. Target Incentives
will be communicated to each participant as close to the beginning of the year as
practicable, in writing. Target Incentives, except for Officers, will be calculated
by multiplying each participant’s base salary by the appropriate Performance Tiers
and percentages, as described below.

	 	 	 
	 	 	Percentage of Base Salary
	Performance Tier	 	for 2009 Target Incentives
	2
	 	35-45%

	 	 	 
	 

	 	Final Performance Awards will be calculated, paid and granted after the Compensation
Committee has reviewed the Company’s audited financial statements for 2009 and 2010
and determined the performance levels achieved.
	 
	 	 
	Awards

	 	As further specified on Attachment B-1 and Attachment B-2, the Awards under the 2009
Plan shall be as follows:
	 
	 	 
	 

	 	1. Stock Options. Each participant shall receive Stock Options equal to 35% in
value of his or her Target Incentive. The number of Stock Options awarded to each
participant will equal the dollar value of the participant’s Stock Option Incentive
divided by the Black-Scholes value of the Stock Options, with the result rounded up
to the nearest multiple of three shares.
	 
	 	 
	 

	 	The grant date for Stock Options will be the date the awards are approved by the
Compensation Committee and the exercise price will be the Fair Market Value of the
Common Stock, which is the closing price of the Common Stock, on the grant date.
Each Stock Option will vest in three substantially equal annual installments
beginning one year after the date of grant and the term of each Stock Option will be
ten years.
	 
	 	 
	 

	 	2. Restricted Stock. Each participant shall receive Restricted Stock equal to 30%
in value of his or her Target Incentive. The number of shares of Restricted Stock
awarded to each participant will equal the dollar value of the participant’s
Restricted Stock Incentive divided by the closing price of the Common Stock on the
date of award, with the results rounded up to the nearest multiple of three shares.

4

 

	 	 	 
	 

	 	The award date for Restricted Stock will be the date the awards are approved by the
Compensation Committee and the value shall be the Fair Market Value of the Common
Stock on the award date. Each award of Restricted Stock will vest in three
substantially equal annual installments beginning one year after the date of award.
	 
	 	 
	 

	 	3. Performance Awards. Each participant shall receive a Performance Award equal to
35% in value of his or her Target Incentive.
	 
	 	 
	 

	 	As a Performance Award, the number of shares of the Company’s Restricted Stock
awarded will equal the applicable dollar value divided by the closing price for the
Company’s Common Stock on the award date, with the result rounded up to the nearest
multiple of three shares. Two-thirds of such shares of Restricted Stock will be
fully vested on the award date with the balance vesting one year after the award
date.
	 
	 	 
	 

	 	For purposes of the 2009 Plan, the award date for shares of Restricted Stock as a
Performance Award will be the date established by the Compensation Committee after
completion of the Performance Period and the applicable performance level has been
determined.
	 
	 	 
	Form and Timing of
Awards

	 	Awards will be made as soon as practicable after the performance level has been
determined and approved by the Compensation Committee. All awards will be rounded
to the nearest multiple of three shares.
	 
	 	 
	Change In Status

	 	An employee hired or promoted into an eligible position during the Performance
Period will not participate in the 2009 Plan.
	 
	 	 
	Certain
Terminations of
Employment

	 	Performance Awards

In the event a participant voluntarily terminates employment (other than Retirement)
or is terminated involuntarily during or after the end of the Performance Period but
before the applicable award date, the participant shall not receive any Performance
Award hereunder.
	 
	 	 
	 

	 	In the event of a participant’s death or Disability before the end of the
Performance Period, any Performance Award will be determined on the date of such
event based on target performance and paid out all in cash as soon as
administratively practicable (but in no event more than 75 days) after the date of
such event. In the

5

 

	 	 	 
	 

	 	event of a participant’s death or Disability on or after the end
of the Performance Period but before the applicable award date, any Performance
Award will be determined based on actual performance and paid out all in cash on or
about the applicable award date.
	 
	 	 
	 

	 	If the event of a participant’s Retirement during or after the end of the
Performance Period but before the applicable award date, any Performance Award will
be determined based on actual performance and paid out all in cash on or about the
applicable award date.
	 
	 	 
	 

	 	Stock Options
	 
	 	 
	 

	 	In the event a participant voluntarily terminates employment (other than by
Retirement) or is terminated involuntarily or in the event of death, Disability or
Retirement, vesting and the post-termination exercise period for Stock Options will
be as follows:
	 
	 	 
	 

	 	Voluntary termination (other than Retirement): Stock Options, whether vested or
unvested, cease to be exercisable as of the date of termination.
	 
	 	 
	 

	 	Involuntary termination: Vested Stock Options will remain exercisable for a period
of 30 days following the date of termination (or, if earlier, the original
expiration date of the option); unvested Stock Options will be forfeited as of the
date of termination.
	 
	 	 
	 

	 	Death: Stock Options will remain exercisable for a period of one year following the
date of death (or, if earlier, the original expiration date of the option); unvested
Stock Options will become fully vested as of the date of termination.
	 
	 	 
	 

	 	Disability: Vested Stock Options will remain exercisable through the original
expiration date of the option; unvested Stock Options will become fully vested as of
the date of termination.
	 
	 	 
	 

	 	Retirement: Vested Stock Options will remain exercisable for a period of three
years following retirement (or, if earlier, the original expiration date of the
option); unvested Stock Options will continue to vest for a period of six months
after Retirement and any remaining unvested Stock Options will be forfeited as of
such date.

6

 

	 	 	 
	 

	 	Restricted Shares
	 
	 	 
	 

	 	In the event a participant voluntarily terminates employment (other than by
Retirement) or is terminated involuntarily or in the event of death, Disability or
Retirement, vesting for Restricted Stock (including any Restricted Stock granted in
connection with a Performance Award following completion of the Performance Period)
will be as follows:
	 
	 	 
	 

	 	Voluntary termination (other than Retirement): Unvested Restricted Stock will be
forfeited as of the date of termination.
	 
	 	 
	 

	 	Involuntary termination: Unvested Restricted Stock will be forfeited as of the date
of termination.
	 
	 	 
	 

	 	Death: Unvested Restricted Stock will become fully vested on the date of such event.
	 
	 	 
	 

	 	Disability: Unvested Restricted Stock will become fully vested on the date of such
event.
	 
	 	 
	 

	 	Retirement: Unvested Restricted Stock will become vested pro rata based on the
number of full months elapsed on the date of such event since the award date and any
remaining unvested Restricted Stock will be forfeited as of such date.
	 
	 	 
	 

	 	“Retirement” is defined under the Incentive Plan to mean the participant’s
termination of employment with the Company either (i) after attainment of age 65 or
(ii) after attainment of age 55 with the prior consent of the Compensation
Committee.
	 
	 	 
	Change In Control

	 	In the event of a Change in Control, (i) unvested Stock Options and unvested
Restricted Stock will vest as provided in the Incentive Plan and (ii) for
outstanding Performance Awards pro rata payouts will be made all in cash at the
greater of (1) Target Incentive or (2) actual results through the closing date with
such proration based on the number of days in the Performance Period preceding the
closing of the Change in Control transaction. Payouts will be made within 30 days
after the relevant transaction has been closed.
	 
	 	 
	Withholding

	 	The Company shall withhold from awards any Federal, foreign, state or local income
or other taxes required to be withheld.
	 
	 	 
	Communications

	 	Progress reports should be made to participants annually, showing performance
results.
	 
	 	 
	Executive Officers

	 	Notwithstanding any provisions to the contrary above, participation, awards and
prorations for Executive Officers, including the President and Chief Executive
Officer, shall be approved by the Compensation Committee.

7

 

	 	 	 
	Stockholder 

Approval

	 	The 2009 Plan and the awards hereunder are made pursuant to the Incentive Plan,
which was approved by the Company’s stockholders at the Annual Meeting of
Stockholders held on April 26, 2007.
	 
	 	 
	Governance

	 	The Compensation Committee of the Board of Directors of Lance, Inc. is ultimately
responsible for the administration and governance of the Plan. Actions requiring
Committee approval include final determination of plan eligibility and
participation, identification of performance measures and goals, final award
components and determination and amendments to the Plan. The Committee may adjust
any award due to extraordinary events such as acquisitions, dispositions, required
accounting adjustments or similar events, all as specified in Section 11(d) of the
Incentive Plan; provided, however, that the Committee shall at all times be required
to exercise this discretionary power in a manner, and subject to such limitations,
as will permit all payments under the Plan to “covered employees,” as defined in
Section 162(m) of the Internal Revenue Code, to continue to qualify as
“performance-based compensation” for purposes of Section 162(m) of the Code. In
addition, under the Incentive Plan, the Committee retains the discretion to reduce
any award amount from the amount otherwise determined under the applicable formula.
Subject to the foregoing, the decisions of the Committee shall be conclusive and
binding on all participants.

8

 

Exhibit A-1

Performance Measures

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure	 	Weight	 	Threshold	 	Target	 	Maximum
	Net Sales *
	 	 	30	%	 	$	920 	million	 	$	940 	million	 	$	975 	million
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Corporate EPS*
	 	 	40	%	 	$	1.00	 	 	$	1.25	 	 	$	1.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Return on Capital Employed*
	 	 	30	%	 	 	11	%	 	 	12.5	%	 	 	14.9	%

 

			
	*	 	Excludes acquisitions and special items, which are significant one-time income or expense
items.

 

 

Attachment A-2

2009 Three-Year Performance Incentive Plan for Officers

	 	 	 	 	 	 	 
	 	 	 	 	Target
	Name	 	Title	 	Incentive
	David V. Singer
	 	President and Chief Executive Officer	 	$	1,296,000	 
	 
	 	 	 	 	 	 
	Rick D. Puckett
	 	Executive Vice President, Chief Financial Officer, Secretary and Treasurer	 	$	330,800	 
	 
	 	 	 	 	 	 
	Glenn A. Patcha
	 	Senior Vice President — Sales and Marketing	 	$	281,300	 
	 
	 	 	 	 	 	 
	Blake W. Thompson
	 	Senior Vice President — Supply Chain	 	$	247,300	 
	 
	 	 	 	 	 	 
	Earl D. Leake
	 	Senior Vice President — Human Resources	 	$	257,000	 
	 
	 	 	 	 	 	 
	Margaret E. Wicklund
	 	Vice President, Controller and Assistant Secretary	 	$	**	 

 

			
	**	 	Amounts are omitted for participants other than the Chief Executive Officer, the Chief
Financial Officer and the other executive officers who were named in the Summary Compensation
Table of the Company’s Proxy Statement for the 2009 Annual Meeting of Stockholders.

 

 

Attachment A-3

2009 Three-Year Performance Incentive Plan for Key Managers

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Award	 	Target
	Name	 	Title	 	Percentage	 	Incentive
	**
	 	** 	 	 	 	** 	 	 	 	** 	 	 

 

			
	**	 	Information is omitted for participants other than the Chief Executive Officer, the Chief
Financial Officer and the other executive officers who were named in the Summary Compensation
Table of the Company’s Proxy Statement for the 2009 Annual Meeting of Stockholders.

 

 

Attachment B-1

2009 Three-Year Performance Incentive Plan for Officers

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock	 	Nonqualified	 	Restricted	 	Restricted	 	Performance
	 	 	Option	 	Stock	 	Stock	 	  Stock	 	Award
	Name	 	  Incentive  	 	Options	 	Awards	 	 Shares	 	Opportunity
	David V. Singer
	 	$	453,600	 	 	 	92,196	 	 	$	388,800	 	 	 	17,910	 	 	$	453,600	 
	 
	Rick D. Puckett
	 	$	115,780	 	 	 	23,532	 	 	$	99,240	 	 	 	4,572	 	 	$	115,780	 
	 
	Glenn A. Patcha
	 	$	98,455	 	 	 	20,010	 	 	$	84,390	 	 	 	3,888	 	 	$	98,455	 
	 
	Blake W. Thompson
	 	$	86,555	 	 	 	17,592	 	 	$	74,190	 	 	 	3,417	 	 	$	86,555	 
	 
	Earl D. Leake
	 	$	89,950	 	 	 	18,282	 	 	$	77,100	 	 	 	3,552	 	 	$	89,950	 
	 
	Margaret E. Wicklund
	 	$	**	 	 	 	**	 	 	$	**	 	 	 	**	 	 	$	**	 

 

			
	**	 	Amounts are omitted for participants other than the Chief Executive Officer, the Chief
Financial Officer and the other executive officers who were named in the Summary Compensation
Table of the Company’s Proxy Statement for the 2009 Annual Meeting of Stockholders.

 

 

Attachment B-2

2009 Three-Year Performance Incentive Plan for Key Managers

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Nonqualified	 	Restricted	 	Performance
	 	 	Stock Option	 	Stock	 	Stock	 	Award
	Name	 	  Incentive  	 	Options	 	Awards	 	Opportunity
	**
	 	$**	 	**	 	$**	 	**

 

			
	**	 	Information is omitted for participants other than the Chief Executive Officer, the Chief
Financial Officer and the other executive officers who were named in the Summary Compensation
Table of the Company’s Proxy Statement for the 2009 Annual Meeting of Stockholders.EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

          This EMPLOYMENT AGREEMENT (this “Agreement”) is made effective as of January 28, 2009
(the “Effective Date”), by and between Premier Exhibitions, Inc., a Florida corporation,
and its subsidiaries (the “Company”), and Christopher J. Davino (“Executive”).

          WHEREAS, the Company is engaged in the business of developing and touring museum quality
exhibitions (the “Business”);

          WHEREAS, in connection with the Business, the Company desires to retain Executive to provide
services as may be necessary and desirable to enable the Company to conduct the Business as is more
fully described below (the “ Services”); and

          WHEREAS, the Company desires to contract with Executive, and Executive desires to accept such
engagement from the Company, for the provision of the Services upon the terms and conditions
hereinafter set forth.

          NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and
other good and valuable consideration, and intending to be legally bound hereby, Executive and the
Company agree as follows:

     Section 1. Services.

     (a) Executive shall be engaged to act as the interim President and Chief Executive
Officer of the Company, authorized, as such, to execute documents and agreements on behalf
of the Company. Executive’s engagement with the Company shall be full-time. During the
Term (as defined below), Executive shall devote all of his time, attention, skill and
ability as required during usual business hours (and outside those hours, when reasonably
necessary to his duties hereunder) to the faithful and diligent performance of such duties
and the exercise of such powers as may from time to time be assigned to or vested in
Executive by the Board of Directors of the Company and/or the governing corporate documents
of the Company.

     (b) It is understood and agreed that (i) the Services shall be undertaken (A) at the
current offices of the Company located at 3340 Peachtree Road, Suite 2250, Atlanta, Georgia
30326 (the “Company Headquarters”) or (B) from such other location or locations as
the Company may reasonably determine; and (ii) Executive shall be provided use of adequate
office space and secretarial support at the Company Headquarters throughout the Term.

     Section 2. Compensation.

     (a) As compensation for the Services under this Agreement, the Company shall pay to
Executive a salary of Fifty Thousand Dollars ($50,000) per month, subject to withholding for
federal, state and local income and employment taxes, payable in biweekly installments, in
arrears, during the Term, with the first such payment due and payable two (2) weeks
subsequent to the Effective Date. In the event that Executive remains employed by the
Company beyond the Term pursuant to the terms of Section 4(a) of this Agreement, the Company
shall continue to pay Executive pursuant to the terms of this Section 2(a) on a
month-to-month basis.

     (b) After four (4) months of continuous service, Executive shall be entitled to receive
additional compensation in the form of a bonus payable in cash in an amount of Thirty Five
Thousand ($35,000) per month, including the first four (4) months during the Term, subject
to withholding for federal, state and local income and employment taxes, payable based upon
the achievement of the performance criteria to be developed and approved by the Compensation
Committee of the Board of Directors of the Company. In the event that Executive remains
employed by the Company beyond the Term

 

 

pursuant to the terms of Section 4(a) of this Agreement, the Company shall continue to
pay Executive pursuant to the terms of this Section 2(b) on a month-to-month basis.

     (c) Executive (i) shall be eligible to participate in any bonus or incentive programs
which the Company institutes from time to time for the Company’s similarly situated
executive officers, subject to and on a basis consistent with the terms, conditions, and
overall administration of such bonus or incentive programs by the Company; and (ii) shall be
entitled to participate in and to receive benefits under all benefit plans and arrangements
offered by the Company from time to time to its similarly situated executive officers,
subject to and on a basis consistent with the terms, conditions, and overall administration
of such plans and arrangements by the Company. Notwithstanding the foregoing, nothing in
this Agreement is intended, or shall be construed, to require or preclude the Company from
instituting or maintaining any bonus or incentive program or benefit plan or arrangement,
nor shall the right of the Company to modify, suspend or discontinue any and all bonus or
incentive programs or benefit plans or arrangements be limited.

     Section 3. Certain Expenses.

     (a) Executive shall be entitled to reimbursement from the Company for all expenses
actually incurred by Executive in connection with the performance of the Services;
provided that expenses incurred in connection with (i) travel between Atlanta,
Georgia and New York, New York, and (ii) food, lodging and ground transportation in Atlanta,
Georgia shall not exceed Nine Thousand Five Hundred Dollars ($9.500) per month, unless
approved by the Board of Directors of the Company.

     Section 4. Term; Termination.

     (a) Term. The Term of this Agreement (the “Term”) shall commence on the
Effective Date and shall continue until May 28, 2009. Thereafter the Term shall
automatically be extended by successive one (1) month periods, unless, at least thirty (30)
days prior to the end of the applicable renewal Term, the Company shall deliver to
Executive, or Executive shall deliver to the Company, written notice that the Term shall not
be so extended (“Termination Notice”). Notwithstanding the foregoing, so long as a
Termination Notice has not been delivered to the Company or to Executive, and Executive
continues to perform the Services in accordance with the terms of this Agreement, the
Company shall continue to pay to Executive any unpaid base salary and additional
compensation earned and expenses incurred by Executive through the date that Executive
receives a Termination Notice.

     (b) Termination by the Company. The Company may terminate Executive’s employment
hereunder for Cause (as defined below) at any time during the Term, at which time the Term
shall end. The Company shall give Executive written notice of its intention to terminate
Executive’s employment and the effective date of Executive’s termination of employment, and
for terminations for Cause the notice shall set forth in reasonable detail the specific
conduct of Executive that it considers to constitute Cause and the specific provisions of
this Agreement on which it relies. If Executive’s employment is terminated by the Company
for Cause during the Term, the Company shall pay to Executive any unpaid base salary and
additional compensation earned and expenses incurred by Executive through the effective date
of such termination.

     (c) Termination by Executive for Good Reason. Executive may terminate his employment
hereunder for Good Reason (as defined below) by giving the Company written notice of the
termination, setting forth in reasonable detail the specific conduct of the Company that
constitutes Good Reason and the specific provision(s) of this Agreement on which Executive
relies. The failure by the Executive to set forth in the notice any fact or circumstance
which contributes to a showing of Good Reason shall not waive any right of Executive
hereunder or preclude Executive from asserting such fact or circumstance in enforcing
Executive’s rights hereunder. Upon termination of this Agreement by Executive for Good
Reason, the Company shall pay to Executive within one (1) week after the effective date of
such termination, any unpaid base salary and additional compensation earned by Executive
through the effective date of such termination.

2

 

     (d) Termination by Executive without Good Reason. If Executive voluntarily terminates
employment during the Term, other than for Good Reason, the Company shall pay to Executive
within one (1) week after the effective date of such termination, any unpaid base salary
earned by Executive through the effective date of such termination.

     (e) Cause. “Cause” means, when used with respect to the termination of the
employment of Executive by the Company, termination due to (i) Executive’s continued failure
to substantially perform Executive’s employment duties (other than any such failure
resulting from Executive’s incapacity due to physical or mental illness) which are
demonstrably willful and deliberate on Executive’s part and which are not remedied in a
reasonable period of time after receipt of written notice from the Company; or (ii)
conviction of, or a plea of guilty or no contest by, Executive to a crime that constitutes a
felony involving moral turpitude. No act or failure to act on the part of Executive shall
be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith
or without reasonable belief that Executive’s action or omission was in the best interests
of the Company.

     (f) Good Reason. “Good Reason” means Executive’s termination of Executive’s
employment during the Term for any one or more of the following reasons: (i) the assignment
to Executive of any duties inconsistent with Executive’s position, authority, duties or
responsibilities as contemplated by this Agreement, or any other action by the Company which
results in a diminution in such position, authority, comparable duties or responsibilities,
excluding for these purposes an isolated, insubstantial or inadvertent action not taken in
bad faith and which is remedied by the Company promptly after receipt of notice thereof
given by Executive; (ii) any failure by the Company to comply with any of the provisions of
this Agreement; or (iii) any purported termination by the Company of Executive’s employment
otherwise than as expressly permitted by this Agreement.

     (g) Death of Executive. This Agreement shall terminate automatically upon Executive’s
death. Upon the termination of Executive’s engagement due to death, the Company shall pay
to Executive’s heirs as soon as practicable after the effective date of such termination,
any unpaid base salary and additional compensation earned by Executive through the effective
date of such termination.

     (h) Disability of Executive. For purposes of this Agreement, Executive shall be deemed
to be under a “Disability” if Executive shall be unable, by virtue of illness, physical or
mental incapacity, or disability (from any cause or causes whatsoever), to perform
Executive’s essential job functions hereunder, whether with or without reasonable
accommodation, in substantially the manner and to the extent required hereunder prior to the
commencement of such disability, for a period exceeding ninety (90) consecutive calendar
days. In the event Executive shall remain under a Disability for a period exceeding ninety
(90) days (whether business or non-business days and whether consecutive or
non-consecutive), the Company shall have the right to terminate Executive’s engagement
hereunder at the end of any calendar month.

     (i) Payments Following Termination. Upon termination of Executive’s engagement
pursuant to any of the foregoing provisions of this Section 4, any right or benefit accrued
by Executive or the Company or to which Executive or the Company had become entitled
pursuant to this Agreement prior to such termination or expiration, and any Executive or
Company obligation with respect to any such right or benefit, shall not be extinguished by
reason of such termination or expiration and shall be paid to the Company by Executive or to
Executive by the Company, as the case may be. Company shall have the right to offset any
amounts due Company from Executive from any amounts to be paid to Executive pursuant to this
Agreement or otherwise.

     Section 5. Indemnification; Insurance.

     (a) Indemnification. The Company shall indemnify and hold harmless Executive from,
against and in respect of any and all losses arising out of or relating to Executive’s
performance of the Services (including, without limitation, attorneys’ fees and expenses);
provided, however, the Company shall have no obligation under this Section 5
to indemnify Executive for any losses to the extent that such losses (i) are determined by a
court of competent jurisdiction in a final judgment or (ii) are determined by arbitration,
pursuant to Section 8(e) of this Agreement, to have resulted from (A) the gross negligence
or

3

 

willful misconduct of Executive in his performance of the Services, (B) any violation
of law by Executive in his performance of the Services, or (C) breach of the terms of this
Agreement by Executive.

     (b) Insurance. The Company shall cause Executive to be covered under the Company’s
directors and officers liability insurance policy upon a basis consistent with the Company’s
similarly situated executive officers, subject to and on a basis consistent with the terms
and conditions of such directors and officers liability insurance policy.

     Section 6. Confidential Information.

     (a) Executive hereby covenants and agrees that, during the Term, he will hold in
confidence all Confidential Information (as defined below) of the Company and will not
disclose, publish or make use of such Confidential Information, except as is necessary to
perform the Services. Upon the request of the Company and, in any event, upon the
termination of Executive’s engagement hereunder, Executive will deliver to the Company all
memoranda, notes, records, manuals or other documents (including, but not limited to,
written instruments, voice or data recordings, or computer tapes, disks or files of any
nature), including all copies of such materials and all documentation prepared or produced
in connection therewith, pertaining to the performance of the Services, the business of the
Company, or containing Trade Secrets (as defined below) or Confidential Information
regarding either the Company’s business, whether made or compiled by Executive or furnished
to Executive by virtue of his performance of the Services hereunder.

     (b) For the purposes of this Section 7:

     (i) “Confidential Information” means any data or information (other
than Trade Secrets) that is valuable to the Company or any of its subsidiaries (or,
if owned by someone else, is valuable to that third party) and not generally known
to the public or to competitors in the industry, including, but not limited to, any
non-public information (regardless of whether in writing or retained as personal
knowledge) pertaining to research and development; product costs and processes;
stockholder information; pricing, costs or profit factors; quality programs; annual
budget and long-range business plans; marketing plans and methods; contracts and
bids; and personnel.

     (ii) “Trade Secret” means information including, but not limited to,
any technical or nontechnical data, formula, pattern, compilation, program, device,
method, technique, drawing, process, financial data, financial plan, product plan,
list of actual or potential customers or suppliers or other information similar to
any of the foregoing, which (A) derives economic value, actual or potential, from
not being generally known to, and not being readily ascertainable by proper means
by, other persons who can derive economic value from its disclosure or use, and (B)
is the subject of efforts that are reasonable under the circumstances to maintain
its secrecy.

     Section 7. Assignment. The rights and obligations of Executive under this Agreement
are personal to Executive and may not be assigned or transferred to any other party. The Company
may assign its rights and obligations under this Agreement to any of its affiliates or
subsidiaries. Otherwise, the Company may assign its rights and obligations under this Agreement
only with the express written consent of Executive; and any such assignment shall be of no force
and effect unless and until the assignee thereunder shall assume, in writing, any and all
obligations of the Company arising under this Agreement.

     Section 8. General Matters.

     (a) Captions. The captions utilized in this Agreement are for the purposes of
identification only and shall not control or affect the meaning or construction of any of
the provisions hereof.

     (b) Integration. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and will supersede all previous negotiations,
representations, commitments and writings relating to the Services.

4

 

     (c) Modification and Waiver. This Agreement may not be amended, released, discharged,
rescinded or abandoned, except by a written agreement duly executed by each of the parties
hereto. The failure of any party hereto at any time to enforce any of the provisions of
this Agreement will in no way constitute or be construed as a waiver of such provision or of
any other provision hereof, nor in any way affect the validity of, or the right thereafter
to enforce, each and every provision of this Agreement.

     (d) Governing Law. This Agreement and its validity, construction, administration and
all rights hereunder, will be governed by the laws of the State of New York without regard
to its conflict of laws provisions.

     (e) Arbitration. Any controversy, dispute, disagreement, difference or claim arising
out of, under, in connection with or related to this Agreement shall be finally determined
by arbitration in accordance with the rules of the American Arbitration Association
(“AAA”) then in effect. The arbitration shall take place in New York, New York
before an arbitral panel of three arbitrators unless the parties agree that the matter shall
be presented to a single arbitrator. The arbitrators shall be chosen, subject to such time
delays or periods as are fixed under the aforesaid applicable rules, as follows. Each party
shall select one arbitrator. If either party fails to select an arbitrator, the arbitrator
selected by the one party shall act as sole arbitrator. If each party has selected an
arbitrator, then the two arbitrators shall select a third. If the two arbitrators do not
agree on the selection of a third within fifteen (15) days after having been requested to do
so by either party or by the AAA, the third arbitrator shall be selected by the AAA.
Judgment upon any award rendered may be entered in any court having jurisdiction. The
prevailing party, or substantially prevailing party (if applicable), shall recover its
reasonable attorney’s fees together with its arbitrator fees and filing and other costs of
the arbitration proceeding.

     (f) Severability. The invalidity or unenforceability of any particular provision of
this Agreement shall not affect the other provisions hereof, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provisions were omitted.

     (g) Notices. Wherever provision is made in this Agreement for the giving, service or
delivery of any notice, statement or other instrument, such notice shall be in writing and
shall be deemed to have been duly given, served and delivered, if delivered by hand or
mailed by United States registered or certified mail, with a copy via facsimile, addressed
as follows:

	 	 	 
	If to the Company:
	 	Premier Exhibitions, Inc.
	 
	 	3340 Peachtree Road, Suite 2250
	 
	 	Atlanta, Georgia 30326
	 
	 	Attn: Bob Brandon, Esq.
	 
	 	Fax: 404.842.2626
	 
	 	 
	With a copy to:
	 	Thompson Hine LLP
	 
	 	335 Madison Avenue, 12th Floor
	 
	 	New York, New York 10017
	 
	 	Attn: Richard S. Heller, Esq.
	 
	 	Fax: 212.344.6101
	 
	 	 
	If to Executive:
	 	Mr. Christopher J. Davino
	 
	 	409 Osprey Point Lane
	 
	 	Brielle, New Jersey 08730
	 
	 	Fax: 404.806.6260
	 
	 	 
	With a copy to:
	 	Beth Rosen, Esq.
	 
	 	409 Osprey Point Lane
	 
	 	Brielle, New Jersey 08730
	 
	 	Fax: 732.957.8550

5

 

     Each party hereto may change its mailing address by giving to the other, by hand delivery or
United States registered or certified mail, with a copy via facsimile, written notice of election to change such
address and of such new address.

     (h) Counterparts. This Agreement may be executed simultaneously in several
counterparts, each of which shall be deemed to be an original, but all of which shall
constitute one and the same instrument.

Signature Page Follows.

6

 

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have executed this
Agreement as of the date set forth above.

	 	 	 	 	 
	 	COMPANY:

PREMIER EXHIBITIONS, INC.

 	 
	 	By:  	/s/ Bruce Steinberg
 	 
	 	 	Name:  	Bruce Steinberg 	 
	 	 	Title:  	Director 	 
	 
	 	EXECUTIVE:

 	 
	 	/s/ Christopher J. Davino
 	 
	 	Mr. Christopher J. Davino 	 
	 	 	 

Signature Page to Davino Employment Agreement

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