Document:

exv10w4

 

Exhibit 10.4

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and effective as of March 31, 2004 between
RETAMA ENTERTAINMENT GROUP, INC., a Texas corporation (the “Corporation”), and BRYAN P. BROWN, an
individual (the “Executive”).

     1. Employment. The Corporation and Executive hereby confirm the continuation of the
employment of Executive on the terms and conditions set forth herein.

          1.1 Executive covenants to perform in good faith his employment duties as outlined herein,
devoting his full productive time, energies and abilities to the proper and efficient management of
the business of the Corporation, and for its exclusive benefit.

          1.2 Executive shall not, without the prior written consent of the Corporation, directly or
indirectly, during the term of his employment by the Corporation and for two (2) years following
termination of Executive’s employment by the Company: (i) render services of business,
professional or commercial nature to any other person or entity, whether for compensation or
otherwise, similar or relating to the business of the Corporation, or (ii) engage in any activity
competitive with or adverse to the Corporation’s business or welfare, whether alone, as a partner
or member, or as an officer, director, employee or 5% or greater shareholder of a corporation. The
Corporation hereby consents to Executive’s investment in Austin Jockey Club (“AJC”), but Executive
shall use his reasonable best efforts to dispose of this investment when any form of Electronic
Gaming Machines (“EGM”) are authorized for operation at racetracks or other licensed premises in
the State of Texas, including Indian gaming venues. In the event that Executive does not sell his
entire interest in AJC upon the authorization of EGM’s, Executive agrees that he will not
significantly participate in the development and day-to-day

 

 

operations of AJC while receiving compensation defined in any part of Section 4 below, unless the
Corporation is contracted for management services by AJC.

     2. Term of Employment. Subject to the provisions set forth herein, the term of
Executive’s employment hereunder shall continue for one (1) year and thereafter for successive
terms of one (1) year each unless at the option of either party upon at least thirty days’ prior
written notice such employment is terminated at the end of the then current term.

     3. Duties. Executive shall be employed as Chief Executive Officer of the Corporation.
Executive shall report to the Board of Directors of the Corporation and shall be subject to such
reasonable rules and policies established by the Board for all executives of the Corporation. By
execution hereof, Executive also executes the Employee Confidentiality Agreement in the form
annexed hereto and made a part hereof.

     4. Compensation. For all services he may render to the Corporation during the term of
this Agreement, including services as officer, director or member of any committee of the Board of
Directors, Executive shall receive the following compensation:

          4.1 Executive shall receive a salary at the rate of $200,000 per year, along with such bonuses
and increases approved by the Board of Directors

          4.2 When EGM’s begin commercial operation at Retama Park Racetrack, Retama Park licensed
premises or other premises managed by the Corporation, Executive shall receive bonus compensation
of a one-time payment of $100,000.

          4.3 When EGM’s begin commercial operation at Retama Park Racetrack or Retama Park licensed
premises, for annual Net Win amounts up to $120,000,000, Executive shall receive a monthly bonus of
1/2% of monthly Net Win generated at the premises. Additionally, for annual Net Win in excess of
$120,000,000, Executive shall receive a monthly

 

 

bonus of 1/4% of monthly Net Win. Net Win shall mean the amount of money placed by players into
an EGM less money paid out to winning players. Net Win, which may also be referred to as Net
Machine Income or similar term by the Texas Lottery Commission, shall be derived by reports issue
by the Texas Lottery Commission.

          4.4 Such bonus compensation, as defined in Section 4.3, shall be paid to Executive for up to
ten (10) years from the time of termination, notwithstanding termination of Executive as an
employee of the Corporation for any reason other than action of the Board of Directors as defined
in Section 8(ii) or Cause as defined in Section 8(iii). If Executive is terminated as a result of
an action of the Board of Directors as defined in Section 8(ii) and the Executive fails to take
reasonable efforts to cure the defaults, for each year Executive has been employed by the
Corporation, Executive shall be paid for two (2) years, until Executive has accumulated a total of
ten (10) years. The first two years shall be earned on the day that EGM’s begin commercial
operation at Retama Park Racetrack or Retama Park licensed premises, and each additional two years
will be earned on the anniversaries of initial EGM commercial operation.

          4.5 Executive and the Board of Directors of the Corporation acknowledge that compensation due
Executive as defined in Section 4.3 herein, is contingent upon the establishment of EGM at Retama
Park and Executive’s active participation in such establishment and operation of EGM at Retama
Park.

     5. Benefits. During the term of this Agreement, Executive shall be entitled to the
benefits established for management of the Corporation from time-to-time.

     6. Disability or Death.

 

 

          6.1 If, during the Employment Period, the Executive shall die, the Corporation shall pay to
such person or persons as Executive shall from time to time designate in writing as the beneficiary
of such payment, or, in the absence of such designation, to Executive’s estate, (“Beneficiary”)
the amount due under Section 4.3 for a period of three (3) years.

          6.2 In the event Executive’s employment hereunder shall terminate because Executive has
incurred a “Disability”, as hereinafter defined, then there shall be paid to Executive the amount
due under Section 4.3 for a period of five (5) years. Such payments shall commence on the first
day of month next following such termination of employment. In the event Executive shall suffer an
event which might reasonably be considered a Disability, either the Corporation or the Executive
(or the Executive’s legal representative) shall have the right to give to the other party written
notice of such termination on 15 days notice. In the event the parties shall in good faith disagree
on whether Executive is suffering a Disability, final determination shall be made by a doctor
reasonable acceptable to both parties. “Disability” shall mean the inability of Executive, for a
continuous period of more than twelve (12) months, to perform substantially all of his regular
duties and carry out substantially all of his responsibilities hereunder because of physical or
mental incapacity. The Corporation shall have the right to have Executive examined by a competent
doctor for purposes of determining his physical or mental incapacity.

          6.3 The obligations of the Corporation under Section 6.2 may be satisfied, in whole or in
part, by payments to the Executive under disability insurance provided by the Company, and under
laws providing disability benefits for employees.

     7. Change of Control.

 

 

          7.1 In the event of Executive’s termination upon a Change of Control, Executive shall receive
at closing, one lump sum payment equal to the payment made in accordance with Section 4.3 in the
month immediately preceding the Change of Control multiplied by seventy-six (76). Payment to
Executive upon Change of Control pursuant to this Section 7.1 will cause any other payments or
bonuses contemplated in this Agreement to immediately cease.

          7.2 A termination upon a Change of Control shall be deemed to occur for purposes of this
Agreement in the event of a Change of Control (as defined below) upon which or within thirteen (13)
months following the consummation of which: Executive does not continue to render services as Chief
Executive Officer of the Corporation (or any successor or surviving corporation). For purposes of
this Agreement, a Change of Control means:

          (i) Any sale, merger, consolidation, tender offer or similar acquisition of shares, or other
transaction or series of related transactions (each a “Transaction”) as a result of which at least
a majority of the voting power of the Corporation is not held, directly or indirectly, by the
persons or entities who held the Corporation’s securities with voting power before such
Transaction. This is provided, however, that any person who acquired voting securities of the
Corporation in contemplation of the Transaction and who immediately after such Transaction
possesses direct or indirect ownership of at least ten percent (10%) of the securities of the
Corporation or the surviving entity (or if the Corporation or the surviving entity is a controlled
affiliate of another entity, then of such controlling entity) shall not be included in the group of
those persons or entities who held the Corporation’s securities with voting power before such
Transaction;

 

 

          (ii) A sale or other disposition of all or a substantial part of the Corporation’s assets,
whether in one transaction or a series of related transactions; or

          (iii) Individuals who on the date hereof constitute the Board and any new director (other than
a director designated by a person or entity who has entered into an agreement to effect a
transaction described in clause (i) or (ii) above) whose nomination and/or election to the Board
was approved by a vote of at least a majority of the directors then still in office who either were
directors on the date hereof or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority of the Board.

     8. Termination. The employment of Executive may be terminated at any time by:

          (i) Mutual agreement; or

          (ii) Action of the Board of Directors on 60 days written notice, in the event that the Board
determines that Executive has not been using reasonable efforts in the performance of his duties
herein, provided, however, that such termination shall not be effective if within the 30 days
following receipt of such notice Executive takes reasonable efforts to cure such default. Any
dispute concerning the validity of such termination shall be resolved by binding arbitration in the
State of Texas; or

          (iii) The employment of Executive hereunder may be terminated by action of the Board of
Directors for Cause (as defined herein), effective immediately upon the day written notice of
termination for Cause is mailed or hand-delivered to Executive. For purposes of this Agreement
“Cause” means any of the following conduct by Executive: (i) embezzlement, misappropriation of
corporate funds, or other material acts of dishonesty; or (ii) commission or conviction of any
felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo
contendere to any felony or misdemeanor.

 

 

     9. Indemnification. The Corporation shall indemnify Executive against expenses
(including attorneys’ fees and costs of investigation), judgments, fines and amounts paid in
settlement actually and reasonably incurred by Executive in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, derivative, investigative or
administrative by reason of the fact that he is or was a director, officer, employee, or agent of
the Corporation or an affiliate of the Corporation or a participant in another corporation,
partnership or other enterprise at the request of the Corporation if he acted in good faith and in
a manner reasonably believed to be in or not opposed to the best interest of the Corporation or
such other entity, and with respect to any criminal action or proceeding, had no reasonable cause
to believe that his conduct was unlawful. The Corporation shall pay the foregoing expenses as
incurred and Executive shall repay any such amounts upon the final determination that he was not
entitled to such indemnification, such determination to be by a court of competent jurisdiction.
Executive shall undertake any activities involving legislation on behalf of the Corporation in
compliance with all legal requirements governing such activities.

     10. Non-Raiding. Executive agrees that during his employment by the Corporation and
until the greater of (i) two years after the termination of Executive’s employment by the
Corporation for any reason, or (ii) such period of time as Executive is receiving bonus payments
pursuant to Section 4.3 hereof, he will not, directly or indirectly, without the prior written
consent of the Corporation, induce or influence, or seek to induce or influence, any person who is
engaged by the Corporation or any affiliate of the Corporation as an employee, agent, independent
contractor or otherwise, or any entity which is doing business with the Corporation in any capacity
to terminate or modify such employment or engagement, or such business relationship with the
Corporation nor shall Executive directly or indirectly, through any other

 

 

person, firm or corporation, employ or engage, or solicit for employment or engagement, or
advise or recommend to any other person or entity that such person or entity employ or engage or
solicit for employment or engagement, any person or entity employed or engaged by or doing business
with the Corporation or any affiliate of the Corporation.

     11. Miscellaneous.

          11.1 The failure of either party to enforce any provision of this Agreement shall not be
construed as a waiver of any such provision, nor prevent such party thereafter from enforcing such
provision or any other provision of this Agreement. The rights granted both parties herein are
cumulative and the election of one shall not constitute a waiver of such party’s right to assert
all other legal remedies available under the circumstances.

          11.2 Any notice to be given to the Corporation under the terms of this Agreement shall be
addressed to the Corporation, at the address of its principal place of business, and any notice to
be given to Executive shall be addressed to him at his home address last shown on the records of
the Corporation, or such other address as either party may hereafter designate in writing to the
other. Any notice shall be deemed duly given when mailed by registered or certified mail, postage
prepaid, as provided herein.

          11.3 The provisions of the Agreement are severable, and if any provision of this Agreement
shall be held to be invalid or otherwise unenforceable, in whole or in part, the remainder of the
provisions, or enforceable parts thereof, shall not be affected thereby.

          11.4 The rights and obligations of the Corporation under this Agreement shall inure to the
benefit of and be binding upon the successors and assignees of the Corporation.

          11.5 This Agreement supersedes all prior agreements and understandings between the parties
hereto, oral or written, and may not be modified or terminated orally. No

 

 

modification, termination or attempted waiver shall be valid unless in writing, signed by the party
against whom such modification, termination or waiver is sought to be enforced.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	RETAMA ENTERTAINMENT GROUP, INC	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	 	 	BRYAN P. BROWN
	 
	 	 	 	 
	 

Print

	 	 	 	 
	 
	 	 	 	 
	 

Titleexv10w1

 

Exhibit 10.1

POLYMEDICA CORPORATION

2000 STOCK INCENTIVE PLAN, AS AMENDED

		
	1.	
    Purpose

     
The purpose of this 2000 Stock Incentive Plan (the
“Plan”) of PolyMedica Corporation, a Massachusetts
corporation (“PolyMedica” or the “Company”),
is to advance the interests of the Company’s stockholders
by enhancing the Company’s ability to attract, retain and
motivate persons who make (or are expected to make) important
contributions to the Company by providing such persons with
equity ownership opportunities and performance-based incentives
and thereby better aligning the interests of such persons with
those of the Company’s stockholders. Except where the
context otherwise requires, the term “Company” shall
include any of the Company’s present or future subsidiary
corporations as defined in Section 424(f) of the Internal
Revenue Code of 1986, as amended, and any regulations
promulgated thereunder (the “Code”) and any other
business venture (including, without limitation, joint venture
or limited liability company) in which the Company has a
significant interest, as determined by the Board of Directors of
the Company (the “Board”).

		
	2.	
    Eligibility

     
All of the Company’s employees, officers, directors,
consultants and advisors (and any individuals who have accepted
an offer for employment) are eligible to be granted options and
restricted stock awards, (each, an “Award”) under the
Plan. Each person who has been granted an Award under the Plan
shall be deemed a “Participant”.

		
	3.	
    Administration, Delegation

     
(a) Administration by Board of Directors. The Plan
will be administered by the Board. The Board shall have
authority to grant Awards and to adopt, amend and repeal such
administrative rules, guidelines and practices relating to the
Plan as it shall deem advisable. The Board may correct any
defect, supply any omission or reconcile any inconsistency in
the Plan or any Award in the manner and to the extent it shall
deem expedient to carry the Plan into effect and it shall be the
sole and final judge of such expediency. All decisions by the
Board shall be made in the Board’s sole discretion and
shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person
acting pursuant to the authority delegated by the Board shall be
liable for any action or determination relating to or under the
Plan made in good faith.

     
(b) Appointment of Committees. To the extent
permitted by applicable law, the Board may delegate any or all
of its powers under the Plan to one or more committees or
subcommittees of the Board (a “Committee”). All
references in the Plan to the “Board” shall mean the
Board or a Committee of the Board to the extent that the
Board’s powers or authority under the Plan have been
delegated to such Committee.

		
	4.	
    Stock Available for Awards

     
(a) Number of Shares. Subject to adjustment under
Section 7, Awards may be made under the Plan for up to
7,900,000 shares of common stock, $.01 par value per
share, of the Company (the “Common Stock”). If any
Award expires or is terminated, surrendered or canceled without
having been fully exercised or is forfeited in whole or in part
(including as the result of shares of Common Stock subject to
such Award being repurchased by the Company at the original
issuance price pursuant to a contractual repurchase right) or
results in any Common Stock not being issued, the unused Common
Stock covered by such Award shall again be available for the
grant of Awards under the Plan, subject, however, in the case of
Incentive Stock Options (as hereinafter defined), to any
limitations required under the Code. Shares issued under the
Plan may consist in whole or in part of authorized but unissued
shares or treasury shares.

     
(b) Per-Participant Limit. Subject to adjustment
under Section 7, the maximum number of shares of Common
Stock with respect to which Awards may be granted to any
Participant under the Plan shall be

1

 

150,000 per calendar year. The per-Participant limit
described in this Section 4(b) shall be construed and
applied consistently with Section 162(m) of the Code
(“Section 162(m)”).

		
	5.	
    Stock Options

     
(a) General. The Board may grant options to purchase
Common Stock (each, an “Option”) and determine the
number of shares of Common Stock to be covered by each Option,
the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option, including
conditions relating to applicable federal or state securities
laws, as it considers necessary or advisable. An Option which is
not intended to be an Incentive Stock Option (as hereinafter
defined) shall be designated a “Nonstatutory Stock
Option”. Notwithstanding anything contained herein to the
contrary, without the prior approval of the Company’s
stockholders, no option issued hereunder shall be repriced,
replaced or regranted through cancellation, or by lowering the
option exercise price of a previously granted award.

     
(b) Incentive Stock Options. An Option that the
Board intends to be an “incentive stock option” as
defined in Section 422 of the Code (an “Incentive
Stock Option”) shall only be granted to employees of
PolyMedica or any of its present or future subsidiaries as
defined in section 424(f) of the code, and shall be subject
to and shall be construed consistently with the requirements of
Section 422 of the Code. The Company shall have no
liability to a Participant, or any other party, if an Option (or
any part thereof) which is intended to be an Incentive Stock
Option is not an Incentive Stock Option.

     
(c) Exercise Price. The Board shall establish the
exercise price at the time each Option is granted at not less
than 100% of the fair market value of the shares of Common
Stock, as determined by the Board, at such time, and shall
specify that exercise price in the applicable option agreement.

     
(d) Duration of Options. Each Option shall be
exercisable at such times and subject to such terms and
conditions as the Board may specify in the applicable option
agreement, provided, however, that no Option will be granted for
a term in excess of 10 years.

     
(e) Exercise of Option. Options may be exercised by
delivery to the Company of a written notice of exercise signed
by the proper person or by any other form of notice (including
electronic notice) approved by the Board together with payment
in full as specified in Section 5(f) for the number of
shares for which the Option is exercised.

     
(f) Payment Upon Exercise. Common Stock purchased
upon the exercise of an Option granted under the Plan shall be
paid for as follows:

		
	 	     
    (1) in cash or by check, payable to the order of the
    Company;
	 
	 	     
    (2) except as the Board may, in its sole discretion,
    otherwise provide in an option agreement, by (i) delivery
    of an irrevocable and unconditional undertaking by a
    creditworthy broker to deliver promptly to the Company
    sufficient funds to pay the exercise price and any required tax
    withholding or (ii) delivery by the Participant to the
    Company of a copy of irrevocable and unconditional instructions
    to a creditworthy broker to deliver promptly to the Company cash
    or a check sufficient to pay the exercise price and any required
    tax withholding;
	 
	 	     
    (3) by delivery of shares of Common Stock owned by the
    Participant valued at their fair market value as determined by
    (or in a manner approved by) the Board in good faith (“Fair
    Market Value”), provided (i) such method of payment is
    then permitted under applicable law and (ii) such Common
    Stock, if acquired directly from the Company was owned by the
    Participant at least six months prior to such delivery;
	 
	 	     
    (4) to the extent permitted by the Board, in its sole
    discretion by (i) delivery of a promissory note of the
    Participant to the Company on terms determined by the Board, or
    (ii) payment of such other lawful consideration as the
    Board may determine; or
	 
	 	     
    (5) by any combination of the above permitted forms of
    payment.

2

 

     
(g) Substitute Options. In connection with a merger
or consolidation of an entity with the Company or the
acquisition by the Company of property or stock of an entity,
the Board may grant Options in substitution for any options or
other stock or stock-based awards granted by such entity or an
affiliate thereof. Substitute Options may be granted on such
terms as the Board deems appropriate in the circumstances,
notwithstanding any limitations on Options contained in the
other sections of this Section 5 or in Section 2.

		
	6.	
    Restricted Stock

     
(a) Grants. The Board may grant Awards entitling
recipients to acquire shares of Common Stock, subject to the
right of the Company to repurchase all or part of such shares at
their issue price or other stated or formula price (or to
require forfeiture of such shares if issued at no cost) from the
recipient in the event that conditions specified by the Board in
the applicable Award are not satisfied prior to the end of the
applicable restriction period or periods established by the
Board for such Award (each, a “Restricted Stock
Award”). Subject to adjustment under Section 7, the
maximum number of shares of Common Stock with respect to which
Restricted Stock Awards may be granted under the Plan shall be a
maximum of 1,287,613 shares.

     
(b) Terms and Conditions. The Board shall determine
the terms and conditions of any such Restricted Stock Award,
including the conditions for repurchase (or forfeiture) and the
issue price, if any. Any stock certificates issued in respect of
a Restricted Stock Award shall be registered in the name of the
Participant and, unless otherwise determined by the Board,
deposited by the Participant, together with a stock power
endorsed in blank, with the Company (or its designee). At the
expiration of the applicable restriction periods, the Company
(or such designee) shall deliver the certificates no longer
subject to such restrictions to the Participant or if the
Participant has died, to the beneficiary designated, in a manner
determined by the Board, by a Participant to receive amounts due
or exercise rights of the Participant in the event of the
Participant’s death (the “Designated
Beneficiary”). In the absence of an effective designation
by a Participant, Designated Beneficiary shall mean the
Participant’s estate.

		
	7.	
    Adjustments for Changes in Common Stock and Certain Other
    Events

     
(a) Changes in Capitalization. In the event of any
stock split, reverse stock split, stock dividend,
recapitalization, combination of shares, reclassification of
shares, spin-off or other similar change in capitalization or
event, or any distribution to holders of Common Stock other than
a normal cash dividend, (i) the number and class of
securities available under this Plan, (ii) the
per-Participant limit set forth in Section 4(b),
(iii) the number and class of securities and exercise price
per share subject to each outstanding Option, (iv) the
repurchase price per share subject to each outstanding
Restricted Stock Award, and (v) the terms of each other
outstanding Award shall be appropriately adjusted by the Company
(or substituted Awards may be made, if applicable) to the extent
the Board shall determine, in good faith, that such an
adjustment (or substitution) is necessary and appropriate. If
this Section 7(a) applies and Section 7(c) also
applies to any event, Section 7(c) shall be applicable to
such event, and this Section 7(a) shall not be applicable.

     
(b) Liquidation or Dissolution. In the event of a
proposed liquidation or dissolution of the Company, the Board
shall upon written notice to the Participants provide that all
then unexercised Options will (i) become exercisable in
full as of a specified time at least 10 business days prior to
the effective date of such liquidation or dissolution and
(ii) terminate effective upon such liquidation or
dissolution, except to the extent exercised before such
effective date. The Board may specify the effect of a
liquidation or dissolution on any Restricted Stock Award or
other Award granted under the Plan at the time of the grant of
such Award.

     
(c) Acquisition Events

		
	 	     
    (1) Definition. An “Acquisition Event”
    shall mean: (a) any merger or consolidation of the Company
    with or into another entity as a result of which the Common
    Stock is converted into or exchanged for the right to receive
    cash, securities or other property or (b) any exchange of
    shares of the Company for cash, securities or other property
    pursuant to a share exchange transaction.

3

 

		
	 	     
    (2) Consequences of an Acquisition Event on Options.
    Upon the occurrence of an Acquisition Event, or the execution by
    the Company of any agreement with respect to an Acquisition
    Event, the Board shall provide that all outstanding Options
    shall be assumed, or equivalent options shall be substituted, by
    the acquiring or succeeding corporation (or an affiliate
    thereof). For purposes hereof, an Option shall be considered to
    be assumed if, following consummation of the Acquisition Event,
    the Option confers the right to purchase, for each share of
    Common Stock subject to the Option immediately prior to the
    consummation of the Acquisition Event, the consideration
    (whether cash, securities or other property) received as a
    result of the Acquisition Event by holders of Common Stock for
    each share of Common Stock held immediately prior to the
    consummation of the Acquisition Event (and if holders were
    offered a choice of consideration, the type of consideration
    chosen by the holders of a majority of the outstanding shares of
    Common Stock); provided, however, that if the consideration
    received as a result of the Acquisition Event is not solely
    common stock of the acquiring or succeeding corporation (or an
    affiliate thereof), the Company may, with the consent of the
    acquiring or succeeding corporation, provide for the
    consideration to be received upon the exercise of Options to
    consist solely of common stock of the acquiring or succeeding
    corporation (or an affiliate thereof) equivalent in fair market
    value to the per share consideration received by holders of
    outstanding shares of Common Stock as a result of the
    Acquisition Event.
	 
	 	     
    Notwithstanding the foregoing, if the acquiring or succeeding
    corporation (or an affiliate thereof) does not agree to assume,
    or substitute for, such Options, then the Board shall, upon
    written notice to the Participants, provide that all Options
    will become exercisable in full as of a specified time prior to
    the Acquisition Event and will terminate immediately prior to
    the consummation of such Acquisition Event, except to the extent
    exercised by the Participants before the consummation of such
    Acquisition Event; provided, however, that in the event of an
    Acquisition Event under the terms of which holders of Common
    Stock will receive upon consummation thereof a cash payment for
    each share of Common Stock surrendered pursuant to such
    Acquisition Event (the “Acquisition Price”), then the
    Board may instead provide that all outstanding Options shall
    terminate upon consummation of such Acquisition Event and that
    each Participant shall receive, in exchange therefor, a cash
    payment equal to the amount (if any) by which (A) the
    Acquisition Price multiplied by the number of shares of Common
    Stock subject to such outstanding Options (whether or not then
    exercisable), exceeds (B) the aggregate exercise price of
    such Options.
	 
	 	     
    (3) Consequences of an Acquisition Event on Restricted
    Stock Awards. Upon the occurrence of an Acquisition Event,
    the repurchase and other rights of the Company under each
    outstanding Restricted Stock Award shall inure to the benefit of
    the Company’s successor and shall apply to the cash,
    securities or other property which the Common Stock was
    converted into or exchanged for pursuant to such Acquisition
    Event in the same manner and to the same extent as they applied
    to the Common Stock subject to such Restricted Stock Award.

		
	8.	
    General Provisions Applicable to Awards

     
(a) Transferability of Awards. Except as the Board
may otherwise determine or provide in an Award, Awards shall not
be sold, assigned, transferred, pledged or otherwise encumbered
by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and
distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a
Participant, to the extent relevant in the context, shall
include references to authorized transferees.

     
(b) Documentation. Each Award shall be evidenced by
a written instrument in such form as the Board shall determine.
Each Award may contain terms and conditions in addition to those
set forth in the Plan.

     
(c) Board Discretion. Except as otherwise provided
by the Plan, each Award may be made alone or in addition or in
relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly.

     
(d) Termination of Status. The Board shall determine
the effect on an Award of the disability, death, retirement,
authorized leave of absence or other change in the employment or
other status of a Participant and

4

 

the extent to which, and the period during which, the
Participant, the Participant’s legal representative,
conservator, guardian or Designated Beneficiary may exercise
rights under the Award.

     
(e) Withholding. Each Participant shall pay to the
Company, or make provision satisfactory to the Board for payment
of, any taxes required by law to be withheld in connection with
Awards to such Participant no later than the date of the event
creating the tax liability. Except as the Board may otherwise
provide in an Award, when the Common Stock is registered under
the Exchange Act, Participants may, to the extent then permitted
under applicable law, satisfy such tax obligations in whole or
in part by delivery of shares of Common Stock, including shares
retained from the Award creating the tax obligation, valued at
their Fair Market Value; provided , however, that the total tax
withholding where stock is being used to satisfy such tax
obligation cannot exceed the Company’s minimum statutory
withholding obligations (based on minimum statutory withholding
rates for federal and state taxes including payroll taxes that
are applicable to such supplemental taxable income). The Company
may, to the extent permitted by law, deduct any such tax
obligations from any payment of any kind otherwise due to a
Participant.

     
(f) Amendment of Award. Subject to the provisions of
the last sentence of Section 5(a) hereof, the Board may
amend, modify or terminate any outstanding Award, including but
not limited to, substituting therefor another Award of the same
or a different type, changing the date of exercise or
realization, and converting an Incentive Stock Option to a
Nonstatutory Stock Option, provided that the Participant’s
consent to such action shall be required unless the Board
determines that the action, taking into account any related
action, would not materially and adversely affect the
Participant.

     
(g) Conditions on Delivery of Stock. The Company
will not be obligated to deliver any shares of Common Stock
pursuant to the Plan or to remove restrictions from shares
previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the
Company’s counsel, all other legal matters in connection
with the issuance and delivery of such shares have been
satisfied, including any applicable securities laws and any
applicable stock exchange or stock market rules and regulations,
and (iii) the Participant has executed and delivered to the
Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any
applicable laws, rules or regulations.

     
(h) Acceleration. The Board may at any time provide
that any Options shall become immediately exercisable in full or
in part, or that any Restricted Stock Awards shall be free of
restrictions in full or in part.

		
	9.	
    Miscellaneous

     
(a) No Right To Employment or Other Status. No
person shall have any claim or right to be granted an Award, and
the grant of an Award shall not be construed as giving a
Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves
the right at any time to dismiss or otherwise terminate its
relationship with a Participant free from any liability or claim
under the Plan, except as expressly provided in the applicable
Award.

     
(b) No Rights As Stockholder. Subject to the
provisions of the applicable Award, no Participant or Designated
Beneficiary shall have any rights as a stockholder with respect
to any shares of Common Stock to be distributed with respect to
an Award until becoming the record holder of such shares.
Notwithstanding the foregoing, in the event the Company effects
a split of the Common Stock by means of a stock dividend and the
exercise price of and the number of shares subject to such
Option are adjusted as of the date of the distribution of the
dividend (rather than as of the record date for such dividend),
then an optionee who exercises an Option between the record date
and the distribution date for such stock dividend shall be
entitled to receive, on the distribution date, the stock
dividend with respect to the shares of Common Stock acquired
upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the
record date for such stock dividend.

     
(c) Effective Date and Term of Plan. The Plan shall
become effective on the date on which it is adopted by the
Board, but no Award granted to a Participant that is intended to
comply with Section 162(m) shall become exercisable, vested
or realizable, as applicable to such Award, unless and until the
Plan has been

5

 

approved by the Company’s stockholders to the extent
stockholder approval is required by Section 162(m) in the
manner required under Section 162(m) (including the vote
required under Section 162(m)). No Awards shall be granted
under the Plan after the completion of ten years from the
earlier of (i) the date on which the Plan was adopted by
the Board or (ii) the date the Plan was approved by the
Company’s stockholders, but Awards previously granted may
extend beyond that date.

     
(d) Amendment of Plan. The Board may amend, suspend
or terminate the Plan or any portion thereof at any time,
provided that to the extent required by Section 162(m), no
Award granted to a Participant that is intended to comply with
Section 162(m) after the date of such amendment shall
become exercisable, realizable or vested, as applicable to such
Award, unless and until such amendment shall have been approved
by the Company’s stockholders as required by
Section 162(m) (including the vote required under
Section 162(m)).

     
(e) Governing Law. The provisions of the Plan and
all Awards made hereunder shall be governed by and interpreted
in accordance with the laws of the State of Massachusetts,
without regard to any applicable conflicts of law.

		
	 	
    Adopted by the Board of Directors on June 8, 2000
	 	
    Approved by the Shareholders on September 14, 2000
	 
	 	
    (Increase from 1,200,000 to 1,800,000 Common
	 	
    Stock authorized for issuance under the Plan)
	 	
    Amended by the Board of Directors on August 27, 2001
	 	
    Approved by the Shareholders on September 13, 2001
	 
	 	
    (Increase from 1,800,000 to 2,300,000 shares of
	 	
    Common Stock authorized for issuance under the Plan)
	 	
    Amended by the Board of Directors on July 24, 2002
	 	
    Approved by the Shareholders on September 12, 2002
	 
	 	
    (Adjustment from 2,300,000 to 4,600,000 shares of Common
    Stock authorized for issuance under the Plan and from 150,000 to
    300,000 per participant per year as a result of 2 for 1
    stock split on September 29, 2003)
	 
	 	
    (Increase from 4,600,000 to 6,400,000 shares of
	 	
    Common Stock authorized for issuance under the Plan)
	 	
    Amended by the Board of Directors on June 30, 2004
	 	
    Approved by the Shareholders on September 17, 2004
	 
	 	
    (Increase from 6,400,000 to 7,900,000 shares of Common
    Stock authorized for issuance under the Plan and limiting the
    number of shares that may be issued as restricted stock awards
    to 1,287,613)
	 	
    Adopted by the Board of Directors on July 22, 2005

Approved by the Shareholders on September 23, 2005

6

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